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How Much Money Should I Offer the Dealer? -Part 1
When you go into a dealership, you want to know all of the pricing and costs
of the car that you are looking into buying, as mentioned earlier.
You should know the manufacturer’s cost and the dealer’s cost.
You need to calculate the cost that the dealer paid for the car and then make a
reasonable offer to him if you want to get somewhere.
You should also know that the dealer’s price is not the invoice price from the
factory. You should know that the dealer’s cost is much lower than the factory’s
cost.
In order to make a fair offer to a dealership, you need to learn to read a
factory’s invoice. Here is what you can expect to find on the factory invoice.
• Base model of the car on it
• All of the options packages
• Destination charge
• Holdback and dealer flooring help
Quick Tip: DO NOT confuse the invoice with the MRSP window sticker because
they are not the same.
Contrary to popular belief, dealers don’t have to tell you the invoice on any
car. This often gives the dealer leverage over you.
They can offer you one dollar over the invoice. You should know that there are
hidden factory incentives in the invoice price that lowers the cost of the car
for the dealership. It’s no bargain for you.
If a dealership is very quick to show you the invoice, you should be aware that
they are fully aware that they will be making money on that car off of you and
they can settle at a lower price for the car.
Knowing this before you walk into a dealership can be your best negotiating
strategy. See, they will tell you that you can afford to buy the car at MSRP
hoping that you will not then wonder what the actual worth of that car is.
Knowing this information can let you make them the same offer.
If you offer a few dollars over the factory invoice (which is the actual worth
of the car) then you can open your bid and let them know how much profit they
can make off of your offer. Check out these websites if you want to know the
factory invoice of a car.
http://www.InvoiceDealers.com
http://www.CarsDirect.com
http://www.Car.com
http://www.Autoweb.com
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