How to Pay Less Than Sticker Price on a New Car
It is easy to pay less than sticker price for a new car by doing some research before you visit the dealership. In fact, many dealerships offer competitive prices to clients who do research via the Internet, as accepting low-profit sales from Internet prospects is an easy way to boost the sales volume of a dealership. Whether you are shopping for a new car, truck or SUV, this guide will help you earn pricing that is lower than new car MSRPs. When it is time to get new car pricing information, be sure to make use of a website like Autos.com. Not only can Autos.com help you get valuable pricing information, it can also put you in contact with local dealerships who offer great Internet prices. This guide will help you complete the research necessary to make a fair offer and negotiate a price less than sticker price on your new car.
Step 1: Research Rebates and Invoice Pricing
Many manufacturers offer rebates that are passed on as a discount to the end customer. It is important to remember that these rebates come from the manufacturer and not from the dealership. You can find out of there are any rebates offered on your vehicle of choice by visiting the manufacturer's website and looking for current offers. In most cases, the rebate must be shown as a down payment on your buyer's order, and this is effectively a down payment in addition to other discounts you negotiate with the dealership.
Invoice pricing is the amount that the dealership paid for the vehicle. In some cases, the dealership can own the vehicle for less than the invoice price, especially if the manufacturer pays an amount called holdback that helps offset normal costs of doing business. You can research the invoice price of your vehicle of choice by using Autos.com and building a car that matches your specifications. As you contact dealerships, you will want to get a price near invoice before applying any rebates from the manufacturer.
Step 2: Contact Dealerships
Using a website like Autos.com can quickly put you in touch with area dealerships who sell new vehicles at a discount. After requesting a quote, dealerships will respond with some basic pricing information on your vehicle of choice. You can use whatever offer is made as a starting point for negotiations. Inform the dealership that you have requested multiple price quotes for the vehicle and that you will go with the quote that has the lowest price. See what their next offer is.
Step 3: Continue Negotiating
As you negotiate, it may be necessary to pick up the phone and call the Internet sales manager who responded to your request. When you call, review the current offer form the dealership and let them know your target price. Let the salesperson know that you are planning to purchase the vehicle for as close to invoice as possible. Some dealerships are more than happy to take a low-profit deal to boost their volume. If a dealership balks at your offer, remember that there is likely a dealership in your area who would accept the offer. Once you settle on a price with a dealership, ask to get their commitment in writing. Set an appointment and visit the dealership to take delivery of your new vehicle when your schedule allows.