Getting The Best Price
What is the "factory invoice price" on a car?
Factory invoice price is the cost that the manufacturer charges the dealer for having the vehicle available here for sale to you. It's basically the internal cost of the vehicle between the dealer and the manufacturer.
What is the difference between the MSRP and the factory invoice price?
Depending on the type of vehicle, whether is a luxury vehicle, a pick-up truck or an SUV, the difference between MSRP and invoice price is going to vary. Generally, as a rule of thumb, you can expect anywhere between 30-50% will be the gap between the MSRP and the invoice price.
What does "base price" mean?
Base price is the cost of a vehicle that has come from the factory with a very low level of specification. It has the base stereo, the smallest wheels and the smallest engine. A base price vehicle is a new vehicle; it's going to perform nicely, but it doesn't have a lot of the fancy bells and whistles that many consumers like.
How do rebates help me negotiate the price of my new car purchase?
Rebates are provided by the manufacturer as an incentive for someone to buy a car. A rebate can be a thousand dollars, which you can then apply to your down payment to reduce the overall purchase price of the vehicle.
Which vehicles might have rebates?
A vehicle that has a rebate is typically one that needs to be incentivized to be sold. It's in a high inventory situation or it just hasn't really caught on with the marketplace. It's a vehicle that's just not selling as well as it needs to be. A manufacturer will provide a rebate to help close the sale.
