These Are The Car Negotiation Tips You MUST KNOW

As inventories slowly come back up and dealers are more willing to negotiate now than in the past four years, it's time that Ray and Zach taught you about a crucial part of how to negotiate a car deal: the invoice price! While not the be-all, end-all, getting the invoice price is still very important and allows you to be in the correct ballpark when talking a dealer down to a certain price.

CHAPTERS
0:00 Intro
0:16 What is Invoice Price?
1:32 Holdback
2:17 Floor-plan Assistance
2:49 Marketing Assistance
3:21 Zach's Recap
4:15 Sales Goals
4:57 Why should you CARE?
5:57 How CarEdge can help
6:29 How do dealers react?
6:56 Ray's Real-World Examples
7:58 Outro/Market Conditions

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[edxx]

This is good stuff. Today I got a Nissan Frontier Pro 4x for $5000 under msrp. I used your website to see it had been sitting on the lot of 155 days. They showed me their invoice price (at least what they claimed it to be) which was about $41k and told me my offer (38K) would cause them to lose money. I told them that’s not my problem, your problem is the car has been sitting for over 5 months. I left. Went back today and got it for $38k. When I went to the finance guy, I already had a cashiers check for the exact out the door price, so he couldn’t even try to offer me extra stuff. All things I learned from watching your videos.

[mrrpepsi]

So in other words, The manufacturer has a huge mark up on there vehicles, especially Pickups and SUV's

[Texasgalincali]

Thank you to all of you willing to help the rest of us none car savvy car buyers! Please keep up the good work in the education we so desperately need! 😀

[alexmentes]

There's another potential deduction for slow-selling vehicles called "Price Protection" If the manufacturer lowers MSRP, for example, $1000 during the product cycle, then any dealer inventory acquired at the old MSRP gets a $1000 adjustment. I know because I successfully sued a Ford dealer over this issue.

[jeffnoob]

Love these type of vids . I think these help the general public immensely

[jjrox]

Idk. Are dealerships really gonna give you that invoice if you ask for it? They'll either fudge it up or make it up. I just don't trust dealers at all.

[demonmachinegunner]

8:23 sis bought a 2024 RAV4 last month, there were only 2 on the lot and 1 was sold just when they were haggling. Needless to say, the dealer was only willing to reduce the mark up from $3000 to $2000; not even the threat of leaving the lot can do any good beause the market simply cannot have enough RAV4s!

[johnbagwell]

Just bought a new 2024 car this weekend. Using what I've learned from these videos I negotiated a little over $8, 000 off the car!

[picachewable]

Great advice right at the end... you must consider market conditions for the make/model you're negotiating for!!

[MiklodeSoma]

Thanks for all the help. In the market for my first brand new truck and have been doing work online and watching your videos. Found an amazing deal in Texas for a 24 F-150 Lariat. They are supposedly taking off $6400 dealer savings, 2, 000 retail customer cash, 900 off low apr retail customer cash plus 500 for military and 500 for student which I am both and has been on the market for 40 days.. seems like a too good deal so will call tomorrow. Will be studying more of your videos

[Hector]

I'm pretty new to your videos and it seems like you have good stuff. Planning on buying a car during Christmas time. I'm going to keep learning your tips until then. Keep making good videos!!! 😀 Also Happy Birthday

[pamm]

So, if the invoice price is accurate taking into consideration market conditions, how much is a fair amount of profit for the dealer to make in relation to the invoice price? I don’t expect them to lose money, but at the same time I’d like to pay as little as possible.

[AceBoii]

Do you guys get peoples contract and review them to see if they got a good deal or not what they did wrong or somewhat

[thomasc]

Zack, is the "destination charge" as it appears on the window sticker an accurate number? I ask only because the number is identical for every vehicle of the same model on the dealer's lot. No doubt there's a cost to deliver a new vehicle to the dealer. But the manufacturer should want to keep the charge as low as possible because that's how the manufacturer makes money - by the dealer selling as many manufactured cars as possible. But depending upon how many cars are delivered at any given time, and depending upon the dealer's volume of sales, it would appear the delivery cost to the dealer may actually be less. If true and the delivery fee remains the same on the sticker of all vehicles, then the manufacturer can recover the actual delivery cost and the remainder of the fee can be accrued as additional dealer profit. The dealer always tells the customer that this fee is a fixed cost and is, therefore, non-negotiable. I'm confident your Dad knows the truth here. What's most important here is if there's a hidden dealer profit in the destination charge, which is not cheap, it's gives the buyer additional leverage to negotiate down the window sticker price (MSRP). Nobody has asked this question, and I can't get an honest answer. Thank you, Zach.

[arnoldschloss]

Just curious - Some of these dealerships are HUGE operations/facilities with dozens of employees, along with an obvious very large overhead to sustain the business. If a dealer sold cars at invoice, and passed all manufacturers incentives to the customer, what pays all the salaries and overhead costs of the dealership?

[Soccer]

How do you know what the market is paying for a vehicle?

[seventystang]

I wish I would have seen this sooner. We walked out of a dealer on Saturday. The salesman kept pushing the OTD price on the 2 cars we looked at and test drove. My wife was undecided on which one and the salesman looked like he was going to force her and I into a decision. I told her if she wanted more time to think about it, we'll come back. He pushed the price again and I'd had enough. I asked if all the upsale things like extended warranty and such were included and he said no. I then said then that's not the out the door price then. We got up and thanked him for his time and left. Now that I see these other things, I'll be better preped next at the next dealership we end up at.

[nancy]

I went to a dealership last week and the salesman VOLUNTEERED the invoice price while saying "we never do this." I did not ask for it and to be honest, didn't even know it was a thing so he absolutely didn't have to. I had to chuckle because he was trying to put exclusivity on something that he, again, 100% volunteered to me. It was for nothing though because they refused to go below it even though the car, along with 12 more of the exact same car, had been on the lot for 192 days (and counting as of this comment.)

[popsnobucks]

This really does sound great, as noted at the end of the video if you're interested in a low availability vehicle, Toyota Highlander Hybrid, as a specific example and the dealers aren't getting allocated many if any, what kind of offers / negotiation if any is really available in these cases?

[pntdblack]

The words "Invoice price" doesn't even come up when dealing with dealers. They usually only point out the MSRP and most won't even go below that price let alone invoice price and not to mention "Under the line moneys". You'd have to be a seasoned car salesmen to know the entire process of how it works to even think of NOT getting taken advantage of.