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The 9 Things You Should Never Say When You’re Negotiating For The Auto Wholesale Price

There’s probably not too many people who would ‘prefer’ to pay the retail price for a new car when they have the option of paying the auto wholesale price. In this article we’re going to educate you on how the wholesale price is calculated, as well as tell you the key things you absolutely must not say if you want the ability to negotiate for auto wholesale prices.

After you have received the free competing car price quotes along with available manufacturer incentives and rebates, use the information in this article to help you negotiate for the auto wholesale price. While you may run across some dealerships who don’t want to play ball, when you play the numbers you can find the one who will.

Here’s what you need to consider to get closer to the wholesale price:

  • The dealer’s invoice price is determined by the manufacturer and every dealer pays the exact same amount for a specific make/model. The invoice includes the base price of the vehicle, as well as options/accessories installed at the factory.

  • There are additional costs the dealerships have besides the actual cost of the vehicle; destination/transportation fees for transporting the car to their lot from the factory, along with dealer prep fees such as rust proofing, pin striping etc. These additional fees and/or accessories will increase the dealers cost of a vehicle. While the majority of these fees can be negotiated, the destination charge isn’t negotiable; every dealer has to pay to have the car shipped.

  • Then comes the hidden discounts in the invoice like the dealer holdback. This is where an automaker will add around 2 or 3 percent (calculated from the MSRP or invoice price). The holdback is usually returned on a quarterly basis to the dealership. Also, there are some models that have special incentives and rebates attached once they’re sold; providing a lot of room for the dealership to negotiate.

  • Keep in mind that in addition to the above discounts, there are also regional sales incentives, volume bonuses, bonuses for this and bonuses for that. When you factor all of these bonuses and incentives with the dealer holdback, you get a good idea of what the real auto wholesale price is – and it sure isn’t the dealer invoice price.

  • Then almost all dealers receive discounts for ‘fleet’ customers. This is another huge advantage you’ll have by utilizing our free service; you’ll be exposed to the volume fleet discount prices offered only via the internet.

9 Things You Absolutely Must Not Say If You Want The Great Deal

So you’ve done all of your research and know exactly what kind of vehicle you want to buy. You have requested your free price quotes and are ready to contact the dealerships to start negotiating. Regardless of whether it’s in an email or face-to-face, the following 9 things should NEVER be said to a car salesman – unless you want to shoot yourself in the foot and blow any chance to buy the car at a wholesale price.

  1. Never, ever tell a salesman that you needed a new car like yesterday. That’s shows desperation and you lose one of the biggest bargaining chips: You need the desperation falling on their shoulders – don’t forget if they want their incentive money they have to sell cars first and a lot of them.

  2. Even if they ask you, never tell them how much you can afford to spend. Stick to discussing the specific vehicle you want to buy, its options, features, etc. Let the salesman make the first offer; in a buyer’s market his initial offer, before you start negotiating, may be very attractive; however, if he knows you’re prepared to pay more you’ll never hear about that great deal he was willing to make you.

  3. Don’t just blurt out that you want (or need) super low monthly payments. You need to know exactly how much you can spend over the entire lifetime of your car loan. While most of us figure our budgets on a monthly basis, there are a million different ways the salesman can make it work – but you’ll end up paying more in the long term. Keep your eye on the ball over the long haul.

  4. With your price quotes, fees and inclusions to the price quote will either clearly be spelled out or put in a disclaimer (i.e. price quote does not include X). Never tell a salesman you’re assuming they’re standard fees that you ‘have’ to pay. While some of them are legitimate like DMV fees to register the car, sales tax (the government wants their money), other things like dealer prep to pull the plastic cover off the seats and detailing the car aren’t; ask them to be removed and that if they don’t you’ll simply buy from a dealership that will.

  5. It’s very important that you don’t show any emotion and if you’re married, that you and your spouse discuss things prior to conversing with the salesperson. Decide ahead of time all of the ‘must have’ features you need and how much you’re willing to spend. Nothing will kill a great deal more than getting to a dealership and spouses to start arguing that one wants this, but the other wants that. That’s a savvy salesman dream buyer.

  6. Don’t discuss using your current car as a trade-in until after you’ve reached a firm deal in writing, via email. While it can be more convenient to use it as a trade-in, 10-1 you’d get more selling it on your own. If you do want to use it as a trade-in credit, research its current market value, then stick firm when you go to the dealership to finalize the deal. This can work in your favor, because the salesperson is already salivating that they have a done deal.

  7. Don’t just walk in and start talking to the salesman about how you ‘think’ your credit is good; request copies of your credit report beforehand and know what your score is before going to the dealership. The credit bureaus are required by law to provide people with their credit score, so obtain and print it off to take to the dealership.

  8. Speaking of financing, don’t be seduced by low interest rates and take your eye of the price of the vehicle; shop around so you know your options for APR rates and terms. While the manufacturer might be offering low APR financing, it’s usually for shorter loan terms (like 3 years) and if you want a longer term the rate rises. You need to calculate the ‘total’ cost of the loan and ensure there aren’t any prepayment penalties.

  9. Finally, don’t start asking about extended warranties; they usually don’t make a lot of sense financially. Shop around and compare rates if you need to have added peace of mind. You could also stash away money each month for future repairs.

Now that you know how to calculate the real auto wholesale price of the car you’re interested in buying, as well as all of the things you need to keep quiet about, to get a great deal, the only thing left is to start requesting your free, no obligation to buy price quotes and have local dealerships compete for your business.

When you add competing price quotes with available manufacturer rebates and incentives, paying the auto wholesale price is more obtainable than you might have thought prior to reading this article.

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Car buyers equipped with pre-approved price quotes, dealer rebates and incentives are guaranteed to pay less. Know actual dealer cost, factory invoice price, and MSRP. Pay less than sticker price, deduct bonus cash rebates, secret dealer incentives, and special internet discounts. Informed new car buyers never need to haggle. Request free competing new car price quotes and uncover the savings today!