The Best Methods for Buying a New Car for Cheap

Buying a new car for cheap is actually just as easy as it sounds. Many people may think of cars salespeople being impossible to negotiate with. Although this sometimes is true, with the downturn in the car market, many dealers are just looking for sales and any profits they can get. This leads to some great deals, which may or may not be advertised. Buying new cars for less is possible if you do your research first and are not afraid to negotiate. First, you should look up buying cars online, and find out the invoice prices of the cars you are interested in. The invoice price is the price the dealer has to pay for the car, and it is the same for any dealer, regardless of volume or location. This should be near or even your starting price in the negotiations. The sticker price you see is normally about 10-15% higher than the invoice price, and would then be their profit. You may wonder then why you should offer the invoice price if you are seriously looking to get a deal. The reason is because there are some secret financial items going on in the background. First, there are manufacturer incentives that are given to the dealers for selling cars. This can amount to 10 or more percent of the value of the car. In addition, there is a 3% dealer holdback, meaning they get part of the invoice price back. When this is all taken into account, you can see you can get a new car for cheap by making an offer.