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June 30, 2006, Newsletter Issue #47: Shrewd New Car Deal Negotiations
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Tip of the Week
The best way to negotiate with a dealer over the price of a new car deal is to first determine how much the dealer paid for the car or the invoice price.
Instead of negotiating the retail price to buy the new car, bargain using the dealer’s invoice price. The dealer’s price is usually below invoice of the retail price.
Hypothetical Situation
Let's say that you have a new car deal on a Saturn Sky and $1500 was marked
off the retail price. However, the car dealership’s invoice price is $3000 less than the new car’s retail price.
Solution: Determine the dealer's invoice price compare it to the new car's retail price. If there is more than a 50 percent discrepancy, either haggle a $200 to $300 or walk away from the new car deal.
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