New Car Buying Tips: How Much Should a New Car Cost?
How much should a new car cost? While there’s no single answer to this question, dealers should be able to sell you a new car for 1-2% over the invoice price and still make a fair and acceptable profit.
Listen to this article.
There are quite a few websites you can visit to find out what the invoice price of a car should be. Our personal favorite here at AccurateAutoAdvice.com is Edmunds.com, but you can also find out invoice price on Cars.com, KBB.com, Yahoo! Autos, and believe it or not, a lot of the manufacturers are starting to put this information on their websites too.
Once you have the invoice price in your hand, request a few quotes from different places before you approach a dealer. You never know, you might hit upon a special offer when you do that and end up with a price that’s even less than invoice. Try Edmunds, and at least three other places, to make sure you don’t miss anything.
What happens when a dealer doesn’t want to sell you a car for 1-2% over invoice? Sometimes when a new vehicle is in high demand, it’s almost impossible to get a discount. If you’re not willing to pay full price, then your best strategy is to wait for demand to die down.
There are times when a dealership refuses to budge on price because of “principle.” They don’t want to discount their car because it’s a luxury vehicle, because they say it’s scarce, or because they know they’re the only dealer in the area with that particular car.
When a dealer refuses to budge on price, there are a few things you can try:
- Get back online, but widen your search to different states and metropolitan areas. For instance, you might be able to go to a different city or state and save a couple thousand dollars. If you’re saving that much money, it would make sense to fly or drive there to pick up your car. The really cool part is that a lot of big dealers in large cities are willing to deliver the car to you, even if you’re out of state.
- Buy on the last day of the month. Dealers always have quotas that they have to meet, or contests that they’re taking part in, or they have incentives to sell a certain amount of cars, etc. These all stop at the end of the month, and if selling you a car will help the dealer meet their sales goal, they might stretch quite a bit to get your business.
- Try calling the dealership in the middle of a storm. Dealers are expected to sell a certain amount of cars every day, regardless of the weather. If you make them an offer in the middle of a storm, you might be pleasantly surprised. The only catch is, you have to be willing to go to the dealership during the storm to pick up your new car! 🙂