| It's time to make the dealer an offer that he won't | | | | dealer will get 2 or 3% of the cost listed on the |
| be able to refuse. In order to make an offer, you | | | | sticker price (MSRP) back from the manufacturer. I |
| have to have some idea what the dealer paid for the | | | | look at this as the dealer's profit, though they'll argue |
| car you want to buy. Dealer invoice cost is the place | | | | that it helps finance the vehicle while it sits on the lot |
| to start. The dealer invoice cost can be found at a | | | | unsold. |
| number of websites including and which stands for | | | | The dealer will also most likely charge a |
| Kelley Blue Book. Known for their used car valuation | | | | documentation fee that can range anywhere from |
| guides, they are also doing new car pricing | | | | $100 to $300 and sometimes more. While there may |
| information and reviews. | | | | be some legitimate administrative fees being covered, |
| These websites are easy for anyone to be able to | | | | I find these to be excessive charges and therefore |
| use and have a great deal of information and cost | | | | fight to withhold any further profit. Make sure that if |
| data. Just find the vehicle you want to purchase, add | | | | you're trading another vehicle in that the value of the |
| options and you'll get a set of three different costs. | | | | trade is handled separately from the new car deal. If |
| The only one we need to pay attention to is the | | | | the dealer gives you a great price on the new car |
| dealer invoice cost plus destination charge. The dealer | | | | price, they are most likely not giving you close to full |
| invoice cost should be fairly close to the actual cost | | | | value on the trade. |
| that the dealer paid the manufacturer for the vehicle. | | | | Always let the dealer know that you have other |
| The manufacturer will also give 2 to 3% back to the | | | | options and use them. The most important is that if |
| dealer once the car is sold. | | | | they don't honor your offer, you'll buy from another |
| Use this number as a starting point for negotiation | | | | dealer. |
| and making an offer. | | | | It's a good idea to check with at least three dealers |
| If the dealer cost totals $20,000, I usually start with | | | | for price and availability of the vehicle you're looking |
| that number as an offer to purchase. As stated, the | | | | to purchase. |