When you buy a new car one of your major concerns is to make sure you are not paying more than you have to for that vehicle. One way to do that is to make sure you buy a new car below invoice price or at least very close. Invoice price is the price that the dealer wants you to believe is their cost for the vehicle when in fact it is not their true cost. To start from the beginning the price on the window sticker or Monroney Label of a new car is the M.S.R.P. or manufacturer suggested retail price. Then the invoice price of the car is supposed to be what the dealer pays for the car which is somewhere between 6 and 14 percent off of the M.S.R.P. or sticker price.
Every day at automobile dealerships around the world people pay full price for cars, but our focus here is to buy a new car below invoice price or at least very close to invoice. Yes, there are many people that pay full price for their new automobile, but there are also many people that pay close to invoice price for their new car. The difference is how determined you are to make sure you make a good deal on a new vehicle and whether you believe your car salesman when they tell you the price.
Buying a new car below invoice price will depend on a few conditions one of those being the specific vehicle. When a car is a new model that is in low supply because of demand the dealer is very reluctant to sell a new car below invoice because they know that someone else is willing to pay close to M.S.R.P. If that is a description of the car you want to buy below invoice I would advise to wait a few months to make your purchase because it’s popularity will fade unless you are will to pay close to full price. There are not many vehicles that fit into this category, but it does happen from time to time in the car business.
Let’s Buy a New Car Below Invoice
The key to buying a new automobile below invoice is research and preparation, so the first thing you need is accurate information. I have come to count on the information from TrueCar (opens in new window) because I have found it be very accurate and up to date. So the first thing I do is go to TrueCar (opens in new window)and request a free price quote which will provide me with up to 4 free quotes from nearby competing dealers that are sent to my email and I don’t have to talk to a car salesman. I have found the quotes I receive through TrueCar to be very aggressive and competitive. The prices are usually much lower than you will get by walking into a dealership and often times they are at or below invoice price.
Now that I am armed with the quotes and the information that I have gathered from TrueCarI am prepared to visit the auto dealership that sent the lowest quote. This information and some negotiation will have me buying a new car below invoice price or at least close to invoice. I only said some negotiation because it actually takes very little because you have third party information and that is more powerful than negotiating. You should know that every dealer pays the same amount for a car because it is the law. If a car dealer refuses to let you buy a new car below invoice price it is your option to get up and go to another dealer or accept their price. However I have found that when you are determined to buy an automobile below invoice price it can be done when you have good information and determination. You can take a look at the steps for buying a car for a step by step checklist for how to buy a new car.