Negotiating a Price
For buying a new car, the target price is usually between the sticker price (also known as
the base price or Manufacturer Suggested Retail Price), and the invoice price--the price
the dealer pays to buy the car from the manufacturer. You should know these figures from
your research.. Your total cost will also include sales tax, tags, the car title, and any
interest on your loan, which you can calculate with the Loan
Calculator. Don't let the negotiations move into monthly payments, the possibility of
trading in your vehicle, or your payment choice (cash, lease, or loan) until the price of
the vehicle has been settled upon. Bringing in these other issues only distracts your
attention from the price. If you are buying a used car, you'll first want to use
research to get a ballpark figure for how much the car should cost. These prices are based
on the car, options, and mileage, and are updated frequently. Bring a printed copy of them
to negotiations so you have evidence. Also consider the condition of the car, and supply
and demand.
It's smart to get an independent mechanic to examine the car for any repairs you will
have to pay. The mechanic will usually charge between $30 and $100, but it is worth it.
If you are considering trading in your old vehicle, search used car prices to get an
estimate of what your car is worth. As mentioned earlier, you may want to decide on your
method of payment and even 
pre-qualify for a loan before starting negotiations with a dealer. At the very
least, know your options before you settle on a price. |
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