How to Buy a Car Below Dealer Invoice

Many car buyers don't realize that a dealer invoice does not reflect the true cost of a new vehicle. It gives a baseline, but other factors like a holdback that is rebated to the dealer by the manufacturer and special incentives bring down the actual price. This means it is sometimes possible to buy a car below the dealer invoice price, according to Philip Reed of the Edmunds automotive website. The seller still makes a profit and the purchaser gets a great deal.

Instructions

1

Choose a slow-selling vehicle model to purchase. Dealers do not have to give good dealers on cars that are flying off the lot. They are much more willing to negotiate on models that have been collecting dust while other vehicles are moving in good quantities. You can figure out which cars are not very popular by reading automotive magazines and websites and searching dealer inventories online.

2

Calculate the basic dealer invoice price. This is easily done on a website like Kelley Blue Book or Edmunds. These sites provide automated tools that let you select specific cars and options. Print out the information and place into a folder you can bring to the dealership. Many sites will also give you the holdback, and amount the manufacturer pays back to the dealer, which reduces the true cost of the car, according to the Autotroplis car-buying site.

3

Select a slow sales period to shop for the car. The holiday season is best because most people are focusing on gift buying instead of taking on a car debt. Shop during the final two days of the month for additional leverage, Peter Humleker, author of "Car Buying Scams, Auto Dealer Executive "Breaks Code of Silence," recommends. The salesperson or dealership might be trying to make a quota to earn special incentives. This will make them more likely to accept less profit so they can achieve a sales goal or monetary award.

4

Find out what other car buyers are paying for the same type of vehicle in your immediate area. There are often reports on the Edmunds online forums or on websites devoted to particular car manufacturers. You will know you have a good chance if you find other people paying below invoice at your local dealerships. This will also help you decide how much to offer below the invoice cost.

5

Choose a dealership at which to start the buying process. Most dealers put their inventory online. Your best bet is to choose the place with the highest number of your selected vehicle. An overstocked dealership is often more eager to get rid of the cars.

6

Lay out your offer and do not budge. Car salespeople are used to back and forth negotiations. They may try to make you feel you have made a ridiculously low offer. Stick to your numbers and let them know you are confident in your research. Walk out if they pressure you to increase your offer, Reed advises. You can easily go to another dealer, or come back another day, but you might discover they will accept your price when they see that you are willing to leave.