Set a target price

The price

Set a target price

Before negotiating with a dealership, you should have an idea of what a good price is for a particular model. This can range from a figure that’s close to the full manufacturer’s suggested retail price for a hot new model to thousands below MSRP for a slow-selling model. 

It helps to know the dealer’s cost. You can estimate this by finding the invoice price and subtracting any dealer rebates or holdbacks from it. The invoice price can be found in printed pricing guides or on car-pricing websites. Some sites also list dealer rebates and holdbacks, but it may take a little searching.Consumer Reports’ New Car Price Reports do the math for you with CR’s Bottom Line Price, which is a good place to begin your negotiations. Try to pay as little above that figure as possible. 

CR’s Price Reports also now show you the average price that buyers are paying for a model.

Red flag

Are the quotes apples to apples? Sometimes the dealer won’t have the exact vehicle you’re looking for and will give you a price on a different version without telling you. If there’s a question, ask for copies of the window sticker.