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If you don’t want to pay retail then you have to get creative to receive a good discount. The absolute worst thing you could do would be to just walk into a new car dealer’s showroom without doing your homework.

The first thing to determine is what type of vehicle you need, along with ‘must have’ features. Put together a list of what each model offers; that way when you start negotiating with new car dealers in you’ll be able to prevent a salesperson from trying to sell you a vehicle without your ‘must have’ features and tacking them on as an expensive option – when it very well could be less expensive to just buy the new car or truck that already offers them as standard features.

Then when you use the knowledge you’ll gain by reading this article and have multiple new car dealers in compete to give you the best deal by requesting a free, no obligation to buy new car price quote you’ll be in the driver’s seat to negotiate a sweet deal.

How To Find The Right Price You Should Pay For A New Car Or Truck

One of the most important things a new car buyer needs to know is that the dealer invoice price isn’t really what a dealer paid for a vehicle; the majority of time it’s quite a bit lower. The following are a few things you need to keep in mind during negotiations, so you pay the most fair and reasonable price for your new automobile:

  • All dealerships receive discounts, incentives and rebates from the automakers that are applied to the dealer invoice price. These in turn make the true dealer cost substantially lower.

  • The MSRP of the base model is the cost of the automobile prior to factory installed options and/or packages being included; the total MSRP is the cost after those options have been added.

  • The base dealer invoice price is the price of the car on the invoice from the automaker before those options/packages have been added; then the total dealer invoice price is the final cost after they’ve been included.

  • The destination/transportation fee is what the dealer paid to have it shipped from the factory to their lot. Every new car dealer must pay those fees and consequently they’re non-negotiable.

  • Then there is the dealer "holdback", which is a percentage of the MSRP or dealer invoice price; it’s returned to the dealer by the manufacturer according to a determined timeframe. The dealer’s holdback affords them more wiggle room when negotiating the final sale price.

  • If you want to calculate the "total dealer cost" you would take the base invoice price + the options + destination/transportation fees + manufacturer fees/charges (could be several hundred dollars for items such as regional advertising or even ads that are specifically geared towards buyers in a dealer’s individual territory; then you would subtract the dealer’s holdback.

  • If you want to figure the "true dealer cost" you would take the ‘total dealer cost’ then add licensing, taxes and deduct the factory-to-dealer incentives and rebates. While the factory to dealer incentives fall in somewhat of a gray area and are impossible to determine precisely, you’ll get a closer guestimate to the dealer’s true cost.

  • The above is why you never want to start your negotiations at the MSRP and work lower; you want to start from the dealer cost and negotiate upward.

If you’re ready to start shopping for a new car and have multiple new car dealers fight to win your business, just take a minute to request a free, no obligation to buy new car price quote. Use all of the information from this article to drive home with a sweet deal on the new car or truck of your dreams.

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Car buyers equipped with pre-approved price quotes, dealer rebates and incentives are guaranteed to pay less. Know actual dealer cost, factory invoice price, and MSRP. Pay less than sticker price, deduct bonus cash rebates, secret dealer incentives, and special internet discounts. Informed new car buyers never need to haggle. Request free competing new car price quotes and uncover the savings today!