Haggle to Get the Best Deal at a Car Dealership

While some car dealerships may advertise low, no haggle prices, the majority of car dealerships still engage in haggling. The manufacturer's suggested retail price(MSRP) is usually the starting price for negotiation when you haggle with a salesman. Talking down the price below the MSRP should be fairly easy unless the car is both high in demand and low in supply.

The MSRP is usually several thousand dollars above the invoice price of the car, but the invoice price is an elusive number. The subaru crosstrek neat gulfport dealership pays the manufacturer the invoice price for the car, but this price is marked up(typically 2-3%) by the manufacturer. This added markup is later given back to the dealership, usually quarterly, and is known as dealer holdback. Most car dealerships will refuse to share this dealer holdback with the customer, so don't expect them to share any of the holdback money with you. Car salesman like to state that they can't go any lower on the price; that they're not making any money on the deal. That's when you bring up dealer holdback, effectively catching them in a lie.

Dealerships may also receive other incentives from the manufacturer, such as dealer cash for selling specific models. This dealer cash incentive can be as high as $5,000 depending on the manufacturer and model sold. You may now be thinking that getting the invoice price for a car isn't really a good deal. That may be true depending on the incentives the dealership receives from the manufacturer.  Know more about auto dealers in http://www.ehow.com/how-does_4968850_car-dealership-work.html .

To get the lowest price for your new car, know four things: the invoice price, what others are typically paying for the car, subaru dealers mccomb ms holdback, and all other incentives and rebates available for the car. You should know the incentives offered to you AND the dealership. This way you can call a salesman's bluff when they say they can't go lower; that they aren't making any money off of the deal. Some car websites   show the invoice price, MSRP, true market value, and all incentives offered for the car.

Haggling with a car salesman can be difficult. After all, they do it for a living and know how to manipulate you into thinking you're getting a good deal. If your salesman refuses to drop the price another penny and you believe the price should be lower, simply walk out. They need your business, not the other way around.