- Centurion Member
- Posts: 1468
- Joined: Tue Jul 31, 2012 12:20 pm
- Location: United States
Also - look up the wholesale price of the car before you look at it. It should give you an idea of what the dealer paid for the car - sort of like the invoice price - and can give you a basis for negotiations. You can estimate the wholesale price by checking the trade-in price of the vehicle on KBB, NADA, or Edmunds.
For my purchase, I wanted to pay about 10% over wholesale. Edmunds, NADA, and KBB gave me wholesale estimates of $21,644, $23,200, and $20,926 respectively, for an average of $21,923. I then looked up the retail prices on each website, which gave me an average of $26,360. That averaged out to a 20.24% markup from wholesale to retail. I took that percentage and estimated the actual wholesale price of the car at the dealer, based on a $26,477 original asking price - $22,020.64. That gave me a base - my "invoice" price.
With all of our negotiations, I ended up at 12.72% over my estimate of wholesale and around $2000 under the NADA estimate. I wouldn't have had the ammo if not for the number crunching.
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