Tips on Purchasing a Car from a Dealer
Purchasing a car from a dealer tips: 1. DO NOT Focus on Monthly Payments Only 2. Know about the difference between MSRP and invoice price. MSRP is what manufacturers suggest as the retail price. Invoice is what the dealer pays to the manufacturer. As an example, if MSRP or sticker price is 25000 and Invoice Price is 20000, you can negotiate a price between that. 3. Suppose for example you offered 21,300 and the dealer accepted. Great. You only paid 1300 above the invoice price, and 3700 off MSRP, BUT, don't celebrate too much yet. Dealers don't make money here. They know that. They will allow you celebrate here, knowing that that they will get you later. NOTE: Never take the 0% interest rate from the deal. That would be at MSRP. Better to get a low price and get 2-3% from bank. Never negotiate from MSRP down. Negotiate from invoice price up. Always KNOW your principal amount you want, your rate and monthly payment. See below. DON"T JUST FOCUS ON MONTHLY PA...