Suppose the MSRP is $35,000, but the invoice price is $30,000. What is a fair price for both the dealer and the customer?
Or generically, suppose the MSRP is x, invoice price is y, and target fair price is z. How do we arrive at z?
I.E. how do you negotiate the lowest possible price for the me as the buyer, but also make it alluring for the dealer?
Asking for a friend.
Well with his coronavirus people are even asking more than MSRP for many cars and now is not the time to buy a car I would wait. Because there really is no negotiating now they don't have enough cars to go around and it's greedy capitalism so they see how much they can get it for a car I had a guy yesterday come and said he's looked at cars new and they actually had bidding wars on the floor between people to see you pay the most for them so wait
Not only is MSRP the square root of -1, so is “invoice”. There are many ways manufacturers incentivize dealers to order cars that are not reflected in the official invoice.
you can get market data, but that only takes you so far. The problem is that there is no such thing as one “fair price”. What there is is what is fair to you (how much you want and how bad you need the car) and what is fair to the dealer (what they need to sell it for to make the profit they want). Decide how much it’s worth to you, stick to your guns, and be willing to walk away.
And yes, Scotty is right, supply and demand are all distorted right now so try to wait if you are able.
😆 exactly. They're imaginary numbers.