It is very important for the car buyer to realize that even if the car dealer sells you a vehicle at dealer cost or “invoice,” the dealership is still making money.
Dealerships receive a so called “holdback” from the factory on each new vehicle sold. On a vehicle that stickers for say $30,000 the “holdback” could be as much as $800 to $900! Holdback is given to car dealers by the manufacturer, usually on a quarterly basis, to help them offset the high cost of financing inventory.
Rarely will a car dealer negotiate any part of the “holdback,” nor should they. Afterall, we must allow the dealers to earn enough profit to keep them in business.
However, knowing this, don’t be afraid to offer the dealer a couple of hundred over invoice. It’s a good deal for you, and it’s to the dealer’s advantage to take such a deal.
Just make sure you go in prepared! Study the information on this web site, and get at least 3 or 4 Free Price Quotes at New Car Price Quotes! If you do you’ll come out just fine.
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