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Car dealers are in the best position when negotiating a price for the car you want. The "hold the keys" to your new or used car. The keys are how much are they willing to sell the car for which will provide them a profit they are willing to accept.

In order to get that power back, you need to understand what the CAR DEALER PRICE is, not the invoice price. The invoice price is usually more than the true cost to the dealer, so buying it at Invoice Price, isn't necessarily the best deal for you.

The dealer invoice would often have a 2%-3% holdback which is often reserved for fleet customers. In addition to that, manufactureres can offer rebates and delivery allowances that could reduce the dealers car price by hundreds or thousands of dollars. All these reductions can reduce the dealer actual cost by thousands of dollars. So when you last purchased your car at dealer invoice, your car dealer still made a tidy profit.

Now you can't expect a dealer to give you the car without taking any profit (though under the right circumstances you could), they do generally have an amount that they work towards as the amount that they are willing to take. Start with the invoice price, and work towards your dealer cost. When you have that, you should check the rebates and incentives at the manufacturer websites.

Most people would be happy to buy a car at invoice price, and think that they got a great deal. Here's how to tell if you really did.

Invoice Price:$25,000
Holdback: $750

Dealer Price:$24,250

Once you have the Dealer Price, you should subtract the rebate and incentives and you will have the price the dealer actually paid.

Dealer Price:$24,250
Rebate: $2,500

Actual Dealer Price:$21,750

Again, a dealer won't usually sell you the car for this amount, but now you know their bottom price, and you can work up from there and negotiate them a profit that you and the dealer will be happy with.

Now that you know this information, you are an informed consumer. We have a network of car dealers that are willing to offer you a price that leaves them a profit, while rewards you for not taking up alot of their time trying to figure out what price to pay. All you have to do is fill out our no obligation, free car quote form.

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