“Invoice and MSRP are completely irrelevant,” says Scott Painter, founder and CEO of truecar.com. “Some cars sell well above MSRP, some cars sell well below invoice. And the dirty secret in the car business, and where the frustration comes from, is we all have a sense that there are hidden layers of profit in auto retail. The reality is that there are about 13 of them.”
Some Quick Tips:
One factor that helps consumers get a deal on the car of their dreams has to do with popularity. When a particular luxury model isn’t super hot on the market, dealers have much more wiggle room in order to cut a deal.
If you do plan to bargain for a new car, there are a few things to keep in mind. The most important: Don’t assume that the sticker price is the set price. It’s not.
The most important thing to do before buying is to research a vehicle before you hit the dealership. Know your transaction prices, invoice prices and potential fees, and then negotiate from that spot–not the other way around.
“If somebody comes in and starts trying to negotiate down from MSRP, well that’s the dealer’s dream,”
What should you do?