With the availability of free car quotes online, many customers walk into dealerships armed with their desired vehicle’s invoice price.  These buyers take to invoice price as a highly valuable insider information and often use them as the starting point for negotiating the final price on their ride.

“You can see for yourself how close we are to invoice; we couldn’t possibly do any better,” the dealer will tell you.  You can see it too. They’re barely scraping a profit off the invoice price.  You smile and shake hands.  Sale closed.

Negotiating Below The Invoice Price

Here’s something you may not know.  You can negotiate well below the invoice price.  Sometimes, way below.  Sometimes, a couple of thousand dollars below.

How is that possible?

If you’re not buying a popular, top-selling model car, it is highly likely that you can negotiate for what is referred to as a transaction price, in place of invoice price.  Transaction price is the real price of the car less rebates and bonuses that manufacturers often give to dealerships as incentive to sell vehicles that aren’t moving as well as they wish.

Many transaction prices go well below the invoice price - sometimes several thousand dollars in rebates all of which end up as part of the dealer’s profits.  Many manufacturers also give auto dealers volume incentives on cars. If dealers sell a certain number of vehicles in a given period for the manufacturer, they can get financial remuneration.

All of these things mean extra income for the dealers and for you, it means extra cost that you can shave off the final price of your brand new car.

The invoice price is highly useful insider information that you can use to negotiate the final price that you pay for your car purchase. It is the actual price of the vehicle without any markup.

“You can see for yourself how close we are to invoice; we couldn’t possibly do any better,” the dealer will tell you.  The difference between the price they are giving you and the invoice should cover the auto dealership’s profit for the transaction.

In many cases, buying a car at invoice price does not mean a zero profit on the dealer’s part (refer to: Negotiating A Car Based On Invoice Price.)  Sometimes, though, it means exactly that.

When do you use invoice price as the actual line when negotiating for a new car?

Invoice price is frequently the final manufacturer price with high-selling, popular models.  Because these vehicles can move on their own, manufacturers give little incentive to dealerships who move them.  In these situations, invoice price is frequently the best price that you can get.

It pays to still try however.

The dealer may be trying to move 1000 of the model you’re buying to get a special incentive from the manufacturer and in such cases, they might let you get away with a small cut below invoice just to close the sale and reach their numbers.

A frequent trick dealers employ to get you to buy is based on a simple psychological trick: staying consistent.  Once you make a decision on something, they count on you to stay consistent to that initial resolve even though later situation no longer make it seem ideal.

How it goes:

During conversation, they’ll enthusiastically announce that your trade-in vehicle can probably go for more than its market value - sometimes four or five thousand more.  This should delight you and make you think of what a wonderful deal you’re about to get.  Too good to be true, for sure.

After this initial euphoria, you will be given a test drive of the new car you’re considering to get or walked through its features.  Fifteen minutes or so later, you’ll get to talking seriously about the trade.  The dealer fills the form to check the actual value via an online wholesale system.  Proving the earlier quote is too good to be true, you’re told the value is about three thousand less than what was originally said.  To make you feel better, they’ll give you an additional grand.

What actually happened:

They’re counting on you to stay consistent with your original feeling that you’re getting a good price on your trade-in.  It’s now only two thousand less than the original price you were given, still a couple grand more than what your car’s actual perceived price.

Tricky motherfuckers, eh?

I hate buying cars.

Actually, I don’t.  I love buying a new car.  I do hate dealing with salesmen.  A trip to the car dealership always leave me feeling dirty.

Damn car dealers can pressure you like an army interrogation room.  At the end of the day, you will have been been taken through an emotional roller-coaster of anger, elation, suspiciousness, blame and boredom that you just want to get it over with.  You will have been shown one number after another that you barely remember the original price so when they say, “See, this is the best deal we’ve given you all day,” you can’t even figure out if it truly is.

If you have weak control, you will likely end up buying at the last price they write down just to finish the ordeal and return home.

To avoid going postal or reaching the brink of it, just nip the negotiation once you feel overwhelmed.  Tell them you’ve had enough for the day and you’ll call for another visit tomorrow.  If they try to dissuade you with any sort of line, just ignore it and leave.  If they try to make small talk, just apologize, say you’re tired and walk out.

Save the battle for another day.

The new 2008 Chevrolet Aveo is a compact car that offers well- tuned suspensions, respectable vehicle dynamics, and impressive interior features all at a very affordable price.

Aveo comes standard with 14- inch steel wheels, manual mirrors and windows, manual locks, and a radio with four speakers. Other great new features are the availability of cruise control, sunroof, power windows and keyless entry. Meanwhile, it also offers great entertainment features with its CD/MP3 player, upgraded audio with an in- dash CD changer and steering wheel- mounted audio controls.

The 2008 Chevy Aveo has a 1.6- liter, four- cylinder engine that delivers 103 horsepower and 107 pound- feet of torque tat guarantee superior performance. It comes standard with a five- speed manual transmission or you may opt for a four- speed automatic with an electronic “hold” feature which protects when driving on slippery surfaces.

The ‘08 Aveo also offers stylish interiors that feature wood grain or metallic trim for that touch of class. Meanwhile, a driver’s armrest and additional storage capability are also included. It has a folding 60/40 split rear seat that can carry up to 42 cubic feet of cargo while its trunk has 12.4 cubic feet of volume.

In addition to the Aveo’s larger size and new styling, standard safety features are still available. It provides three- point seatbelts for all five passengers with pretensioners in the front. Side airbags and Antilock brakes are also provided for maximum protection. The Aveo earned five- star rating in NHTSA crash tests for its performance of front occupants in frontal impacts and four stars for occupants in side impacts.

The 2008 Chevrolet Aveo is not only affordable but provides respectably vehicle dynamics for adequate everyday commuting. Its all- new design, interior features, and standard safety features make it one of the best and affordable models this year.

Get a quote for your brand new 2008 Chevrolet Aveo today.

The first thing that you should know when you want to buy a new car is that both you and the dealer are looking to get the better end of the deal. If you don’t learn anything else from this you will learn how to walk away from your next car deal with both sides being satisfied. A good deal is a win, win situation for both parties. Most of the time, it’s the buyer that leaves unsatisfied and the dealer counting their profits.

In this day and age a car is no longer a luxury, but a necessity with our fast paced life and growing families. You will likely have to purchase a new car more than once in your life, for you or a loved one so you might as well learn to do it in a way that will make buying the cars less painful.

If you are looking to buy a car you should begin with these 10 basic car buying tips.

1. You should purchase your new car at or around Christmas time because with everybody focused on their Christmas presents, there aren’t many people with neither the time nor the money to worry about looking to buy a new car, and it forces dealerships to get creative with their sales strategies. Salesmen and dealerships are more willing to haggle down to your prices to close the deal when customers are few and far between.

2. You can also usually score a good deal from July to October because that is the time of year when dealerships are trying to unload most of their inventory to make way for the new models coming in.

3. Purchasing a car online is becoming a great way to get a new car. Although some are still skeptical, others are reaping the benefit on the deals that some dealerships are offering. Just wait for good rebates and incentives online and shop around. Print out your information from the best quotes, get two or three online quotes for free and bring it to the dealer that you are most willing to work with. Bringing in lower quotes from another company might be your best bet in getting a good deal. Most dealers will match that price or beat it by a slight percentage, either way you get what you want.

4. You should visit various online car purchase sites to find new car prices, dealer incentives, and the best rebate offers. There are a lot of options out there that can be used to your benefit.

5. It’s a great idea when going into a dealership to bring a copy of your personal credit score with you. I can’t express enough how much this will help, especially with all the credit scams some dealers play. A good credit score can actually lower your interest rates on your car loan. Your car dealer should not know more about you than you do.

6. Keep an ear out to avoid a common scam that dealerships pull. We often hear that they will tell customers that the financing fell through and that you have to respond by paying more money on your loan. This should give you more incentive to bring your own credit score from a trusted provider.

7. Another common scam used by dealership salesmen is for them to tell you that they have found you a lower rate, but that they want you to re-sign your loan papers. Usually, that is a downright lie. Once they pull up your financing information, they have the upper hand if you don’t know the details about your credit information. Can you start to see why we encourage you to understand your personal credit information?

Get Your Equifax.com Credit Report Now! It will cost around $10-$15. It’s better to pay $15 now than thousands later. You can also get your free credit score and more from FreeCreditReport.com

8. Don’t bother bringing in a car for trade in if you still owe money on it. The dealership rarely pays the rest of the loan on time which will result in you having to pay a great deal of late fees to the bank. If you do decide to bring a car in that you owe money on, get it in writing from the dealership that they will pay the balance on the car within 10 days.

9. Sometimes a dealership may not have all of your options and must order the car directly from the dealership. When this happens they will often ask you to pay $500-$1000 for a deposit on the car. They don’t like ordering special options if they don’t have a buyer handy. Try not to pay more than $500 and be sure to pay with a credit card because sometimes the dealership will tell you that there was a price increase on the vehicle and will want more money. If you pay with a credit card you have room to dispute the amount being taken from you. If you pay by check, you can just consider the money gone.

10. You should never buy a car when you are in desperate need for one because a dealer will see that and take advantage.

You should never wait until an old car is dead before searching for a new one because you should give yourself time to shop around for one and get the best deal possible. Desperation often clouds your judgment and will cost you more than you were willing to pay on your new car.

Knowing these tips when shopping for a new car online or offline will help you make a deal that you’ll be happy with.

Determining exactly what constitutes a luxury car gets tricky because the criteria seem to vary. For example, you may define it according to a certain price range or manufacturer, or the technological and comfort features a vehicle offers. Nowadays there are also more than just cars to consider…luxury now abounds in many SUVs, wagons, compacts, and even pick-up trucks.

Remember the old saying, “beauty is in the eye of the beholder”? Luxury varies by individual, so let’s define a luxury car as one that offers the most in the way of convenience, creature comforts, and drivability to a specific driver. Entry-level luxury cars can cost in the neighborhood of $35,000 to $40,000.

This category attracts people who want the prestige that comes from driving vehicles made by automobile makers known for high quality. Examples include Mercedes-Benz, BMW, Cadillac, and Lincoln, to name just a few. Some manufacturers not generally considered producers of luxury cars also make high-end models with enough bells and whistles to be considered luxurious.

In any event, comfort, convenience, and great engineering in varying degrees ultimately determine luxury. Things such as quality leather seats, thick, lush carpeting, real wood trim, quiet, stabilized ride, a solid build, and a smoothly purring engine with enough power to never be sluggish constitute luxury for most drivers. In this age of technology, each year brings a new tool, and now we can navigate by watching an in-dash screen, listen to incredible sound systems that completely surround us in the car; and even let our cars parallel park themselves. Even more importantly - safety features continue to evolve as well.