How to negotiate with your local dealership when purchasing a new vehicle

If you are in the process of buying a new car

, you are entitled to a price discount regardless whether it is a cash purchase or financing. Unknown to many when you are negotiating with a sales person, he or she is only your messenger, the approval for selling the vehicle at a discounted price comes from the sales manager sitting in the big office near by. Although the sales person may have the knowledge of how much savings a typical customer can receive on the selling vehicle, it is still in his or her best interest to get as much as possible from you to maximize the profit margin. There are several tactics and strategies you can deploy when negotiating on your deal, and ultimately they all involve in one common element. Do your home work; find out exact profit margin on the vehicle is crucial to the success of your deal. There is nothing more annoying to you and the dealer when you are making a silly offer that is thousands of dollars below the dealer cost. Just like any other business, the dealer will purchase a vehicle at a cost price from the manufacture. In return for their investment the dealer will be entitled to a profit when selling the vehicle. The MSRP or manufacture's suggested retail price is a dealership's guide when conducting business; it is also called the sticker price. This is usually plastered on the web, newspapers, and other advertising revenues. The hard part is to find out the dealer's cost on the vehicle you are interested in, or dealer invoice price.

Since the dealer's invoice price is usually hidden from public, it is your job to find out how much it is as well as if the current market condition allows the dealer to sell this vehicle as close as possible to the dealer invoice price. There are few ways you can find this information, if you don't want to waste your gas and time driving from dealer to dealer throughout the city. You can use web services such as Car Cost Canada, or Automotive Protection Agency. There are a small amount of fees attached to these services usually $30 to $40 per request, carefully pick out the exact model and options of your vehicle, and the dealer invoice price is usually emailed to you within few hours. Knowing the dealer's invoice price is your first step towards a great deal, armed with this information you can now submit an educated offer. Dealers and sales people know when someone is making an educated offer, because the offer will usually be reasonable and within their profit margin. They will be willing to work harder for you once they know your offer is based on research and experience.

Once you are armed with this vital information, you also need to work with the existing market condition. For example if you are trying to buy the latest Porsche 911 on the market knowing the vehicle is extremely rare and the color you are looking for doesn't exist in the dealer's inventory. There is very little hope you can get the vehicle close to the dealer's cost, but on the other hand if you know a particular make and model is not doing well, and there are overstocked units all over the city. You will have a very good chance of picking up a real bargain; in conclusion you should work with your selling dealer and make an educated offer based on availability and market conditions at the end of the day you will need to bring your newly purchased vehicle back for service so leave with a good working relationship and impression.

Thank you for reading this article, it is brought to you by SOS Car Loans, Toronto's leading bad credit, no credit car loan specialist. To find us online please go to http://www.soscarloans.com for details.

How to negotiate with your local dealership when purchasing a new vehicle

By: Rick Li

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