Negotiating A New Car Purchase PriceNegotiating A New Car Purchase Price

Every car has a market price - and then there is the price customers wind up paying. It doesn't seem fair but quite often one customer pays a price that is far different than another customer. How does that happen? That customer is skilled in negotiation and knows the true value of the car. That may sound very simple but that's the way car buying goes - no matter the fluctuation in the economy. When you want to buy a new car, you need to know exactly how to negotiate a new car purchase price to your advantage.

Begin by understanding the exact value of the car in terms of MSRP and invoice price. The MSRP is the manufacturers suggested retail price and it includes a nice profit margin for the dealership. The invoice price is what the dealership actually paid for the car. This is the number you want to target. Although most dealers do not publish their invoice price, as a general rule it is somewhere between 5 and 15 percent less than the MSRP.

There are plenty of websites out there that track new car invoice prices. Take the time to research the true value of the cars you are shopping. This can save you thousands of dollars if not tens of thousands of dollars. The car salespeople are fully aware of the car's invoice price even though the sticker price is higher. The MSRP or sticker price is higher because they want to make money off of it. Knowing the difference between the two prices gives you a target to work with when negotiating your new car purchase price.

Understand the buyer's ideal psychology when buying a new car. Think for a moment of how the car seller views the car buyer. If the buyer act as if they really "must have" that car then you are going to smile because you know they are going to pay any price in front of them. But if the car buyer is casual and seems as if they are still deciding between a few cars - the car seller is unsure of where they stand. This is a time when a deal may be offered. A few thousand dollars can be knocked off the price to peak interest. Do you see how putting yourself in the car seller's shoes makes you think differently about how you approach a car dealership?

If you are a woman, consider bringing a man with you. A certain amount of sexism still exists in car buying today whether or not people like to admit it. Most prefer to think that men only really know about cars whereas women don't. Bring a father, brother or just a male friend with you at least for a second opinion. The car salesman will be less likely to try to "pull a fast one" on you in negotiation because they know that a man will "know" about cars and can see through their double-talk. While you may be shaking your head at this idea, many women have had great trouble at car dealerships only to discover they have an easier time when they bring a man with them.

Last but not least, be prepared to walk away from any deal that just doesn't seem right. You will be surprised at how effective this technique is at lowering the purchase price. Want to go a step further? Tell your salesman you don't like the deal and you are leaving to go to lunch. If he wants to make a sale then he should call you in the next 45 minutes with a significantly better offer. Mark my words; you will get that phone call. A dealership would rather make a small profit today rather than take their chances on finding another buyer.
by Giovanni Beilman
References and Bibliography
Thinking about buying a car this year? Don't let yourself get swindled by shady car salesmen. Get all the car buying tips you need to get the best possible deal at StreetSmartCarDeals.com
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