April 24th, 2009 | 
Author: 
It can be a horrible task negotiating to buy a new car, nobody likes doing it because it’s so time consuming, stressful and frustrating! Very few people actually like sales people, but it’s pretty easy to work out exactly what you should do. You need to research the background information so that you can get a fair price when buying your new car.
Research what the price of the car originally was when it first came out. You should use this to work out the dealer cost, which is the cost of the car when the dealer brought it from the manufacturer. This cost is made up of the dealer invoice, and the holdback.
The dealer invoice is the actual cost that the dealer pays for the car. There are many different online resources like the Kelly Blue Book, and Edmunds all of which can provide very useful information on the dealer invoices.
The holdback is the rebate that the manufacturer pays the dealer when the car is sold. The rebates will depend on the make and model of the car; it’s normally around 2-3% of the total value of the car. You should subtract this holdback from the costs to work out the actual cost of the car to the dealer.
Now you should calculate any hidden incentives that the dealer has. It can be difficult to know about the dealer incentives. If you are aware of any of the hidden incentives then you can talk about them during the negotiation.
Dealers seem to ask about $5000 more than they originally paid for the car, they do have to take their cut out of this, but even so $5000 is a little steep! Use the popular automotive websites and research exactly how much it costs, this figure will be very useful when negotiating.
Last 5 posts by Parker Evans
- All About Exotic Sports Cars - August 26th, 2010
- Most Expensive Cars in the World -Top3 - August 16th, 2010
- BMW Accessories - August 10th, 2010
- Get the Best Car Rental Rates - August 6th, 2010
- Online Racing Cars Parts - August 3rd, 2010