1. Do your study and find out invoice price (including different options). Check out on-line forums on the particular car model that you are interested in and see what other people's experience is (invoice price, bargain price, dealer tricks, delivery issues...).
2. Find out any incentives (credits, etc.) available.
3. Normally few hundred dollars above invoice minus incentives is a good bargain. But sometimes when the model is really hot, you may have to pay a bit more. In my case, I've seen people consider BMW X5 $500 above (invoice - incentives) as great bargain. For less expensive models should have less profit for dealer. Don't be ashamed of bargaining since the dealer won't be ashamed of asking you paying them more.
4. Check out several dealerships. If one refuses to give you the price you want, you can find the next one.
5. Negotiaton tricks: First let the dealer spend as much time as they can (assuming you are serious in buying) with you. Don't irritate them by telling the Mecedez Benz dealer that you are also looking at Hundai(it actually happened in this forum and you know there won't be a deal). The more investment of his time, the more he will take you seriously when it comes to bargaining. Price wise, if your bottom line is $500 above invoice-incentives, then should start with $200 or lower. Don't go straight to your bottom line. Otherwise, you will find no room to negotiate. If dealer give in a little, then you can give in some which means both sides are interested in working out a deal which is close to your bottom line price. If dealer doesn't give in at all, then just find the next one.
2. Find out any incentives (credits, etc.) available.
3. Normally few hundred dollars above invoice minus incentives is a good bargain. But sometimes when the model is really hot, you may have to pay a bit more. In my case, I've seen people consider BMW X5 $500 above (invoice - incentives) as great bargain. For less expensive models should have less profit for dealer. Don't be ashamed of bargaining since the dealer won't be ashamed of asking you paying them more.
4. Check out several dealerships. If one refuses to give you the price you want, you can find the next one.
5. Negotiaton tricks: First let the dealer spend as much time as they can (assuming you are serious in buying) with you. Don't irritate them by telling the Mecedez Benz dealer that you are also looking at Hundai(it actually happened in this forum and you know there won't be a deal). The more investment of his time, the more he will take you seriously when it comes to bargaining. Price wise, if your bottom line is $500 above invoice-incentives, then should start with $200 or lower. Don't go straight to your bottom line. Otherwise, you will find no room to negotiate. If dealer give in a little, then you can give in some which means both sides are interested in working out a deal which is close to your bottom line price. If dealer doesn't give in at all, then just find the next one.
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