
Originally Posted by
JayQueer
Read what FPNY said. You need to do your research (search for the invoice price online) before you go car shopping. You don't want to be a fish entering a shark tank.
1. Find out the "Dealers invoice price" for a Honda Accord LX. Honda or the dealers don't want you to know that information so you need to look at websites like Edmunds.com, Kelley Blue Book, etc etc to find out. Never negotiate from the sticker price or "Manufacturers Suggested Retail Price" (MSRP) -- that's the price what Honda or the car company thinks the car can retail for. The dealer pays the "dealer invoice price" (a much lower amount) to get the car on their lot. Your bargaining room is basically the area between the dealer's invoice price & the sticker price (MSRP).
2. Once you know what the dealer's invoice price is (& add in the cost of whatever options, if any), you can tell the dealer you know what the invoice price is, and that you will offer X amount over the invoice. Always bargain UP from the invoice price, never down from the sticker price.
3. Never, ever discuss monthly payment amounts until you have agreed on the purchase price. The dealer will try to say, "We can get you into this car for only $199 a month!" Don't fall for any traps until you have agreed on the price. Then you can discuss down payment & financing.