Oct 31 2011
Knowing The Gap Between MSRP And New Car Invoice Prices
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 represents the maximum that one should pay for a particular model. This is the price that you see on the window, and the dealer would love for you 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. Supply and demand can have a large effect on the prices of new cars. For example, if there is a bad winter, many people may be looking for four wheel drive vehicles. If dealers are sold out and only getting a few vehicles per week, you may have to pay the full retail price if you want one immediately. In most cases, you are free to negotiate with dealers on the prices of their vehicles. This means that you can offer them anything that you want. However, they do not have to accept any of your offers. Yet, if it is a fair offer, you have a good chance of success. The best way to know how much to offer is to know what the dealer’s cost is on that vehicle.
When you discover the price that a dealership pays for a specific model, you have a good idea what to offer. However, most dealers do not want you to know their cost so they can make more money. If you take some time to search the Internet, it is not hard to find dealer cost on new cars. When you locate a reputable online pricing service, you should see the retail prices (MSRP) as well as the new car invoice prices of all the new models. Yet, this is not always the bottom line because you can often find deals that are below the 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 shopping for new cars, it is important to know the difference between retail and wholesale prices. The retail price is also known as the sticker price or MSRP. New car invoice prices are what the dealer pays, and these prices can be found online. Knowing dealer costs can help you negotiate a better deal for your new vehicle. Also, be aware that most dealers also get manufacturer rebates, so they can sell some cars below the invoice price.
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