ANSWERS: 1
  • <h4 class="dechead">On One Hand: Slighly Above Invoice

    According to Consumer Reports, a good price to pay for a car is between 1 percent and 5 percent above the invoice. A vehicle that has been on the market for a while could sell for even less, while high demand, newer vehicles rarely stray from their original sticker price.

    On the Other: Look at the Actual Cost of The Car

    If a dealer is quick to show you his invoice, that can mean that he's hiding his own sales incentives and planning to add additional fees to the purchase of the car. Ask the dealer what sales incentives he's working with and find out the hold back amount on the car. Also be careful during the purchase process and look for add-ons like delivery and handling fees or additional features like alarm systems.

    Bottom Line

    You can typically get a car for 1 percent to 5 percent over the dealer invoice, but do your homework and find the actual cost the dealer has paid for the car. Sites like ConsumerReports.com offer updated information on car prices to help you make an informed purchase.

    Source:

    Consumer Reports: Setting a target price for a car

    Edmunds: Invoice Scams and Sudden Extras

    Resource:

    Consumer Reports: New and Used Price Guide

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