To get the best deal on a new car, you need to do your homework first. You should know the difference between sticker prices and new car invoice prices. (The sticker price is the same as MSRP; the new car invoice price is supposed to be the dealer’s cost.) And you should know that smart shoppers buy new cars at or below the new car invoice price all the time. The MSRP is the sticker price that you see on the window and it represents the maximum that one should pay for a particular model. Car dealers usually try to get buyers to pay this price. However, when you discover the new car invoice price that the dealer is paying, you may see a large discrepancy. In fact, new car invoice prices are usually at least one or two thousand dollars lower than the retail price. Sometimes you may not be able to negotiate a lower price. For example, high demand and low inventory for a certain model creates ideal conditions for the dealership. They know that they can get the full retail price when there are more buyers than vehicles. In times like these, you may have few options: either pay full retail now, or wait for lower prices. Under most circumstances, you will be able to negotiate price with a dealership. In fact, you are free to make a ridiculously low offer if you wish. However, the dealership does not have to accept the offer. Yet, if you make an offer that is fair, you can usually get a good deal. And if you are aware of the actual dealer cost, you have a good bargaining position.
If you could find out what a dealer pays for their new cars, you would have a good idea of their bottom line on your new vehicle. However, their real cost is hidden from the public for obvious reasons. Thanks to the vast resources of the Internet, one can find dealer costs by searching the right places online. Many online vehicle pricing services will list the new car invoice price along with the MSRP. This gives you a better idea of what to offer the dealer. However, there are times when you can buy below the new car invoice price. Car dealers can usually sell new vehicles at the invoice price and still make a good profit, thanks to the rebates and cash incentives that they receive from manufacturers just for selling a new car. So car buyers should always attempt to buy at or below the invoice price. When you’re looking for a new car, knowing the difference between wholesale and retail prices can help you get the best deal possible. The new car invoice price (what you want to pay) is far below the retail price, which the dealer wants you to pay. But when you know what the dealer’s cost is, you have a better idea of what to offer. And don’t be afraid to offer less than the invoice price, because dealers sell at or below invoice all the time.