this is my first time buying a brand new car and i need help on how to negotiate in getting a good price. probably in 3-4 weeks, when i get my settlement money from my insurance company, i will be getting a sunshine silver 05 8 with GT package with black/red interior w/ nav & rotary accent, no spoiler. i checked the invoice price w/ this options at nadaguides.com it totalled to $30,110 at invoice, this includes destination charges already. that was the easy part, now how do i approach the dealer.
1) do i tell them that i know the invoice price?
2) start "bidding" below invoice?

thanks

Of course you should tell them the invoice price. Tell them you want to pay that then let them see what kind of offer they will give you. Then you start calling all the dealers in a 100mi radius around you to see if anyone can beat it. Just keep going back and forth between dealers. Sign up for a free efax.com fax number and have them fax you quotes. efax will email you the faxes.

Never try to bid down from MSRP. Your goal is to find the lowest number and then bid up (if possible) for the lowest price. For example, if the invoice is $24,800, you say that you'd like $24,500 for the car. Remember, dealers always have a holdback; roughly 2% of the car's value.

Never:

- Accept anything without having it down in writing.
- Let a dealer lure you into estimating monthly payments.
- Spend more than 30 minutes negotiating.

I am about to buy a new car from a dealer myself. My plan is to e-mail my price to every dealer in the area and get the final price via email or fax.

Keep in mind the invoice price is not the ACTUAL invoice price, because if they were losing money they wouldn't sell it to you. Vitaliy is right, bid lower than you'd expect to pay (I'd be somewhere between 28 and 29) and work your way up as they come back with counter offers.

Don't worry about monthly payments until you've decided on the total price.

Go there with a number in your head that you want to pay. If you get that number, take it, if you don't, find a dealer who will give it to you.

Defintly be sure to get things down in writing.
And go out and test drive the 8 at each location and see hwo your treated at each place.

If your treat well at a dealership that offers 31,000 on a car then go to another dealership and get treated like a piece of meat and they offer you 30,000 I'd suggest the first people.

If you've done business with a Dealership before, go back there (Unless thier trweating you like meat) they'll give you a better offer to keep your business.

Always
-Walk right on out if you don't like what you hear. Then wait a couple of hours until they call you at your house with a better deal.

Mike

45 yrs old and owned many new vehicles; I've never had a stealership salesperson call me after a visit; never!