How to Determine a New Car Price

For many people, buying a new car represents one of the biggest financial investments of their lives. An average U.S. car now costs more than $28,000. Until recently, auto dealers held most of the cards when it came to pricing their cars. But with a few, easy-to-find resources, smart car buyers can assemble enough information to save thousands of dollars in base price, interest and taxes. Given that the average new car will lose as much as 20 percent of its value in the first year, finding the right price is crucial.

Instructions

1

Start with online resources to estimate the market price of a new car. There are several excellent online calculators that will give you a good range of local prices, including Edmunds, Kelley Blue Book, and the National Auto Dealers Association. Be precise about the model you want to buy.

2

Compare prices with local dealers. Where possible, have the dealer email or fax you a quote for the vehicle you're interested in purchasing. This will give you a good idea of the range of local prices, and it will also give you bargaining power when you start negotiating with dealers.

3

Visit car dealerships and start negotiating. New car prices can fluctuate at different times of the year. Negotiate up from the dealer price, instead of trying to bargain down from the manufacturer's suggested retail price, or MSRP. Base your offer on the total price of the car, rather than anticipated monthly payments.