Learn the truth about Dealer Invoice

In most cases, a Car dealership’s "dealer invoice" is a value, very close to true dealer cost.

To calculate a true wholesale car price dealer invoice is what the dealership paid the manufacturer minus marketing considerations, such as holdback and incentives.

In many cases, you can negotiate a price below car invoice, if you are less particular about the options you want on the car and you leverage competing dealers against each other.

But, it's important to keep in mind that the validity of this method for calculating wholesale car prices can vary from manufacturer to manufacturer.

Typically, foreign car brands incur greater costs, in the form of tariffs, taxes and import costs, which makes it unrealistic make the actual dealer invoice, a starting point for price negotiation.

The best car buying tip we can give you is to shop around and get dealers to compete with one another. As the dealers fall over themselves competing for your business, it will become abundantly clear to you what is fair new car price. If you flexible on color and options, you are on your way to getting a fantastic deal.

Find New Car Buying Negotiation Tips

To get a great deal on your next car, you don't have to be an expert negotiator. You just have to follow a few simple rules.

Don't buy a car in a rush. This is one of the largest financial transactions of your life. Here is some prudent used car buying advice; be especially patient and thoroughly research the vehicle history, when shopping for a used car, otherwise, you increase your chances that you will end up with a lemon.

• Eat a meal and recharge your batteries, before you go to the car dealership. It's so helpful to feel relaxed and fresh, negotiating requires much mental energy. If you're not physically prepared you'll get tired fast and unable to think clearly. It happens to the best of us.


• Know all the numbers involved in your deal before you begin negotiating. This includes numbers for the new car invoice price, if applicable, numbers for your pre-approved auto loan offer and trade-in.


• You have the power. If you don't feel comfortable with the person who is negotiating with you, then walk away.


• Treat new car price negotiating as a game -- take risks and be creative.


• The most important thing to remember, if you don't like the deal, take a deep breath, get up, and walk out. You don't owe an explanation to anyone.

And lastly, know that all us are unique and have our own style of negotiating. Use your talent, know in summary the second most important rule of negotiating. You can't get what you want, if you don't ask for it.

What are the best used cars?

The car buying advice team has put together a list of the best used cars categorized by vehicle type.

If we were buying a pre-owned used car, we suggest shopping for models that have 30,000- 45,000 miles.  Most manufacture warranties expire after 36K, and the price/value of the vehicle goes down after that. On the other hand, if you're buying a vehicle with a few thousand miles on the warranty, its an extra layer of protect in case you are buying a lemon.

The average car owner drives 12,000-15,000 miles per year. A useful used car buying tip is to keep it for a few years and sell it before it reaches the 75-90K 'trouble spot' milestone.  You'll get more car for you money, and odds are just as reliable as buying new. So, ultimately, you are looking for an older car with relative low mileage. But, you need to be very careful and try to find out 'why' the car has low mileage. For example, it could be a salvage vehicle or the miles could have been 'turned back' (which is a serious federal crime).

With that said, you should know that buying a used car is not for the impatient. It's takes time to find the diamond in the rough, and find a good used car prices. If you find the 'perfect used car' that is what you're looking for, odds are that it will be off the market fast.

Good used cars don't last long! It's important to know exactly what you want in a used car and be resilient and dedicated. plan setting about 2-3 months aside, to scour the used car classified ads, every day, for personal sellers, as compared to buying from a dealership.

Are you the worlds worst new car buyer?

There are few things that are as sexy, as a new car. The aroma, the hip looks, freshness, and the prestige. Many people subconsciously buy a car, as if it is a symbol that represents themselves. There's a saying: "licking paint and sucking chrome"; it means having an emotional attachment to a car. If this describes, you, then you may as well forget about negotiating the best price.

Let's be clear, we are not passing judgment. There is nothing wrong with knowing exactly what you want and when you want it.  Just be advised that if you're inflexible about buying a certain model trim, with certain options, in a certain color, and feel urgency with your buying time frame, then you sacrifice you're negotiation leverage.  On the other end of the spectrum, be able to walk away explore your options and get new car price quotes on various comparable models.

How to use Carmax to get a no-hassle value of your used car trade-in?

Carmax is a used car superstore. This means it is a dealership chain with huge lots and scores of cars to sell. CarMax sells cars at no-haggle prices. They will provide you with an offer to buy your used car at a guaranteed price, regardless of whether you buy theirs, we suggest setting the time aside to get their appraisal.

There is a great low hassle option for people who are uncomfortable dealing with car dealership salesperson and their scams.

 

In our experience, its a rather objective process. In most of the Car Buying Advice team's mystery shopping test cases, we never even met the person appraising our vehicle!

It's also worth noting, that a large fixed-priced superstore used car dealer like Carmax, will typically give you a low offer, but it sets a base price for your trade value negotiations. Here is the brass tax: If the dealership you want to buy your new car from, refuses to match it, you can always trade your car at one car dealership and buy from another.

Use total car ownership cost stats cautiously

You will see references to "Total Car Ownership Cost" on manufactures' and other web sites. What this statistic claims to do is factor in the car cost, average depreciation, insurance cost, maintenance costs and anticipated repair bills, to reflect what a car will cost you over time.

The number of possible variables and the huge differences in individual use make this a very rough guide. Also, be aware that the manufacturers who seem to be most keen to share this information with you are the ones seeking to justify higher prices on the basis that you are paying a premium for the reliability and durability of their brand.

Check the J.D. Power and Associates durability report for a guide to relative manufacturers quality after three years on the road.

What gas mileage numbers mean and what they don't

The gas mileage numbers quoted by manufacturers on their web sites and the legally mandated window stickers on new cars are determined by a standard laboratory test controlled by federal Department of Energy http://www.fueleconomy.gov/.

It is important to understand what these numbers do and do not tell you. They are designed solely for comparing vehicles' fuel efficiency they are in no way a guide to the gas mileage you can expect on  the road which is highly variable depending on the type of driving you do.

Also, the test is being revised for the first time in ten years to more accurately reflect the way we drive today and you can expect those numbers to drop in early 2007 simply as a result of the changes to the test.

Smart advice on buying a new car

The folklore of the industry is that a customer who leaves the lot is fifty percent less likely to buy. Dealers want you to make your decision now - you have to live with the quality of that decision for years. The best advice on buying a new car is that your primary asset in a car deal is your time, use it well.

Before you set foot on the car lot, get informed and get online new car price quotes. There has never been a better time to be a car buyer. The Internet provides a wealth of information on every make and model available to you and the prices they are really selling for in your area. Time invested in studying the market and informing yourself will make you a smarter consumer and informed consumers make better deals.

 

Take some time to assess what you need your new car to do. What mileage do you drive in a year? How many people will it need to carry? A quick inventory of your needs may exclude some options and will give you a clear basis on which to make your choice.

How to select a reliable used car?

A comprehensive researched list of reliable used cars can be useful to the used car buyer.

We suggest finding a one-owner used car, that has been cared for, it has its service records (that show they changed oil on schedule and maintained basic manufacturer recommended service per the owner's manual) and ideally, owned by someone who is more stable like a senior citizen, than say a teenager. The reason is that odds are that a more experienced and stable person is going to maintain service.

The vehicle should have a clear CarFax record. I would look nationally, because this type of vehicle is going to be hard to find, and ideally use a service like CarChex or a mechanic to inspect the vehicle before you buy it -- (to help spot upcoming repairs).

Lexus Most Dependable Car Maker 2008

For a 14th straight year, Lexus obtained the top ranking in vehicle dependability in the J.D. Power and Associates' Vehicle Dependability Study.

Lexus (Toyota's high-end brand) had 120 problems per 100 vehicles, improving by 25 problems per 100 vehicles since 2007. Following in the top five rankings are Mercury, Cadillac, Toyota and Acura, respectively.

SAAB is the most improved brand in the study however it continued to rank below the industry average. SAAB improves by 65 problems per 100 vehicles since 2007.

The industry average was 206, down from 216 in 2007. Land Rover came last with 344 problems.

Subaru, Jeep and Scion showed the biggest drops in dependability.

Lexus garnered six segment awards -the most of any car brand in 2008- for the ES 330, GX 470 , IS 300, LS 430, LX 470 and SC 430. Toyota follows with five segment awards for the Highlander, Prius, RAV4, Sequoia, and Tundra.

The 2008 Vehicle Dependability Study is based on responses from more than 52,000 original owners of 2005 model-year vehicles. The study was fielded from January through April 2008.