What is a good deal for a new car?

Could the price of a new car differ a lot from people to people? Sure it will. The price of a new car depends a lot on your technique of negotiating.

Do your homeworks before go to a dealership. Before you go to a dealership to buy a car, you need to do your own homework. Go to KBB to find out the price information of a prospective car you like to purchase.

For example if you like a Toyota camry. You will see something like

Here you see 3 price. Here are the definitions on KBB for the 3 different kind of prices:

MSRP
The MSRP, or Manufacturer's Suggested Retail Price, is the price set by the manufacturer. The MSRP price shown for this vehicle includes destination charges and minimum required equipment. MSRP, destination charges and minimum required equipment appear as separate prices on the manufacturer's window sticker. A dealer, however, can choose to sell a vehicle above or below its listed MSRP.

Invoice
Invoice price, or dealer invoice, is the price an auto manufacturer charges its franchise dealers for a new vehicle. The invoice price shown for this vehicle includes destination charges and minimum required equipment.

New Car Blue Book Value
KBB's New Car Blue Book Value reports what people are really paying for a vehicle. Based on actual new-vehicle transactions received from auto dealers across the U.S., this value is adjusted regularly as market conditions change.

So what is a good deal? One of the biggest mistake a buyer make is to buy the car above the invoice price. Thinking of the invoice price is what the dealer paid to get the car, most buyer are ripped off easily by the authentic KBB definitions. So what's the deal? The deal is to buy a car a few hundres under the invoice. I never buy a brand new car above the invoice price. So shouldn't you!

So how come a dealer can sell a car lower than the invoice? Who knows? Once I bought a car at $6000. I drove the car for a couple of months. Then I sold the car for $8000. So does the buy care what I paid to get the car? Definitely no. Think it this way, if I bought the same car for $9000 sell for the same price, $8000, does the buyer care how much money I lost? No. As a buyer, the only thing you should care is the price of the car. How much the dealer paid is not what you should worry about. So why don't you do it? Start giving your offer at most $500 below the invoice. You can alwayse increase your offer later. The dealer may laugh and saying something like "It's ridiculous!" but don't panic. Once I was asked by the dealer saying "why you are talking about the price below the invoice?"

Here is what I said: "The invoice is kind of average. It's just a reference. It doesn't mean it's the price you guys paid for this paticular car." Then the dealer immediately think I know something about the car business.

Do they really get cars below invoice? They do. Sometimes there are factory rebates given to the dealer. Sometimes they get volume discounts. I don't know exactly how they can get it lower than the invoice. But one thing I am sure: They can get the car under invoice. You should believe it and believe you can get your price down from the invoice.

Bargain tips for a new car.

What is a good deal for a used car?