How to Buy a New Car For the Lowest Price

Arm Yourself With the Knowledge to Become a Car Buying Warrior

Your mission is simple: To save as much money as possible when buying a new car. Knowledge is by far the most powerful weapon a car buyer can possess.

Luckily, this page has all the information you need to get dealers to hand over their lowest price. We're assuming you already know the make, model and trim of car you want and you're willing to be a little flexible with options and colors.

If you follow the plan to a tee, you will literally save thousands of dollars compared to someone who just blindly goes to a dealership to negotiate. In addition, you'll save a ton of time and hassle since this method doesn't require you to spend hours haggling over price with a salesman.

The Real Secret Car Dealers Don't Want You to Know

The #1 thing car dealers don't want you to realize is that new cars are commodities. A Toyota Camry being sold in New York is exactly the same as a Toyota Camry sold in California. OK, so what's the big deal you ask? The following scenario will shed some light:

Imagine you're at a market where 10 merchants are selling the exact same product. It would be foolish to hastily approach the first merchant and buy at the price they suggest WITHOUT seeing what the others are selling it for. It's the EXACT SAME situation with new cars. Why would you just go to a single dealership when the exact same product is being sold at dozens of other dealerships?

The real secret to getting the lowest price is simple: Get price quotes from several car dealers and let them know you will purchase the car from the lowest bidder. The more dealers you get bids from, the better your chances of getting an incredible deal. You should get prices from at least 10 dealers (the more, the better). The vast majority of car buyers don't know about or don't take advantage of this powerful car buying strategy. This is good news for YOU since these buyers end up paying for your savings.

Catching the Right Dealer at the Right Time is Key

Car dealers generally won't sell a new car at a loss unless it's been sitting on the lot for a long time, but if you catch them at the right time, they WILL sell you a car close to actual dealer cost. It may be because they're trying to meet a sales quota and only need one or two more sales. If you happen to contact the dealer during this time, you're going to get a great deal - guaranteed! By contacting several car dealerships, your chances of finding one of these opportunities increases dramatically.

The funny thing is, a car dealer who gives your neighbor a great deal may not be able to give you the same deal. It's all about timing. You can never tell which dealer is most likely to give you the best deal. You simply have to contact as many as possible.

Step 1:

  Use Google Maps to Locate All Nearby Dealers

Your first step is to find all new car dealers located within 90 miles of where you live. Depending on your location, you may only have 2 or 3 dealerships in this area. You should increase the distance until you get close to 10 dealerships. Yes, those dealerships may be very far away, but you still want to get prices in order to use them as ammunition against local dealers.

We made it easy for you by pre-filling the Google Maps search box below with the exact phrase to find all the dealers near your location. Make sure you change CAR MAKE to whatever car you're interested in (Toyota, Ford, etc) and change YOUR ZIP CODE to your own zip.

Your search will reveal listings of car dealers on the left. Notice the "Distance" link near the top. Make sure you click it and select 90 miles. This will give you a full listing of dealers within this radius.

Step 2:

   Get Prices From at Least 10 Dealerships

For people accustomed to going to a car dealership and haggling with a salesman, the challenge of obtaining prices from at least 10 dealers seems like a daunting task. But you don't have to worry because with this method, you don't even have to set foot in a dealership. In fact, one of the worst things you can do is actually go into a dealership to haggle over price. At best, you'll be stuck for hours dealing with a salesman. At worst, you'll be ripped off by the many scams car dealers have been known to use.

Now remember - all dealers are selling a commodity. The more you contact, the more powerful your ammunition becomes. Getting prices from one dealership versus 10 is like going to battle with a knife versus an armored tank.

Google Maps provides phone numbers to all the dealers in your area. Start with the dealership closest to you and work your way out. We recommend calling all dealerships within 90 miles or at least 10 dealerships, whichever is larger. Simply call the dealership and ask to speak to the fleet manager or internet sales manager. These people usually do not work on commission and will be able to offer you the best deals.

The goal of each call is to get the fleet manager's email and let them know you will be sending them a bid proposal (we've provided you with an email template below). The phone calls should be quick and easy. Here's how an ideal conversation will go:

You:	"Hi, I'd like to speak to the fleet manager please"
Receptionist:	"Hold please..."
Fleet Manager:	Hello, how can I help you?"
You	Hi, I'm interested in a (Make/Model/Trim). I'm ready to buy now so I'm calling several dealerships to see who can offer the best deal. I'd like to send you a bid proposal via email outlining the options I'd like along with some additional questions regarding fees and incentives. Can I get your email address?
Fleet Manager:	Sure. (gives you email address)
You:	Thanks.

Make sure you jot down the following for each dealership you call:

• Dealership Name
• Name of Fleet Manager
• Fleet Manager's Phone Number
• Email Address

It's best if you can do this on index cards, one for each dealership, so you can take notes and follow up properly without getting confused as to which dealership you've called. Here is the email you should send to each fleet manager:

Copy and Paste the following email:

Hello [INSERT NAME OF FLEET MANAGER], As we discussed on the phone, I'd like to purchase a [YEAR MAKE MODEL TRIM] as soon as possible. I'm contacting several dealerships and will go with whoever offers me the best deal. To make it a fair comparison, please bid on the amount over or under invoice you are willing to sell me this vehicle for. If I buy from you, I'm assuming you will show me a copy of the dealer invoice and let me choose from any vehicle of this particular trim you have on your lot. If you don't have the vehicle on your lot, I'm assuming you can do a dealer trade to obtain a similar car. (let me know if you charge extra for that). I'm flexible with options and colors, however, I do require [LIST ANY OPTIONS OR COLORS YOU WANT OR DON'T WANT]. Please provide the following in your bid: 1. Price above or below dealer invoice 2. List any additional fees I will have to pay not listed on the invoice (example: doc fee, dealer prep, etc) 3. List any additional dealer add-ons I will be required to pay (advertising fee, pinstripes, etc) 4. List any rebates or incentives currently offered on this vehicle (do not include this in the price of the bid) thank you, I look forward to your response. [YOUR NAME]

When calling most dealerships, you'll be pleasantly surprised. For the most part, the fleet managers will not be using sales tactics to try to sell you the car over the phone. Most are very professional and realize you're a customer who has done their research. However, just so you're prepared, here are some obstacles you should be prepared for:

Problem	Solution
No Fleet Manager	Ask for an internet sales manager instead. If they don't have one, just ask for a sales manager
Voice mail	Leave a voice mail telling them you're interested in buying a car and you would like them to give you a call back. When they call, just go through the same phone process.
Car Not Available	Ask if they can do a dealer trade or order from the factory. Ask if they charge extra for that and how long they expect it to take
No Pricing Over Phone/Email	Tell them you're only taking bids via phone/email. If they can't give you a bid, they won't be able to participate.
Email Down	If their email isn't working at the moment, give them your email address or phone number and go over the fees and options referenced in the email outline above. Make sure they answer all the questions when giving their bid.

Tip: The best time to make these calls is in the morning, during the middle of the week when dealerships are not busy. This means Tuesdays, Wednesdays, or Thursdays. The best time of the month is near the end when dealers are trying to meet sales quotas. Don't wait till the very last minute - you need to give the process 2-3 days to finalize.

Step 3:

  Cover All Your Bases - Check Online Prices

After you've contacted dealers using Google Maps, you should get an online price quote to make sure you didn't miss any local dealers. Google Maps is great, but it's not perfect. There are times when they may miss a dealership or two in your area. Getting online price quotes is easy and should only take you a couple of minutes. The great thing about online pricing is the bid usually comes from an internet sales manager instead of a fleet manager. It's possible you may get a lower bid from the same dealership you just called.

Enter Your Zip Code to get Free Online Prices

One last thing you may want to check is the price dealers have agreed to sell on a pre-negotiated term. You can see what that price is at www.carsdirect.com. On their home page, you select the car of your choice and provide your zip code. CarsDirect will then show you the pre-negotiated price for that vehicle in your area. Usually, you won't get a better deal this way, but it doesn't hurt to check and will give you peace of mind.

If you're a Costco member, you can check their pre-negotiated price through the Auto Buying Program located at www.costcoauto.com. Again, it's not likely you'll get a better deal through this, but it won't hurt to try. Remember, we're trying to get the lowest price possible, so we don't want to miss any opportunities.

Step 4:

   Follow Up With Dealers

After sending the email to the fleet managers and submitting the online price quotes, you should start getting responses the same day (At least from dealers who have a good follow-up process in place). But like all of us, fleet and internet managers are human and do make mistakes. Some may be busy and forget to send you a bid. In fact, about half the time you may not receive a bid at all. You should follow up with the ones who don't send a bid.. It doesn't mean they won't give you a good deal. A likely reason is the dealer simply forgot or has been too busy.

When you don't receive a bid, follow up the next day with the following email:

Hi [INSERT NAME OF FLEET MANAGER], I spoke to you on the phone yesterday and followed up with an email to request a price on a [YEAR MAKE MODEL TRIM]. I haven't received a bid from your dealership yet. Sorry for the rush, but I'm going to make the purchase very soon and want to make sure I give you the opportunity to make the sale. As stated in my previous email, I'll need the following info to make a decision: 1. Price above or below dealer invoice 2. List any additional fees I will have to pay not listed on the invoice (example: doc fee, dealer prep, etc) 3. List any additional dealer add-ons I will be required to pay (advertising fee, pinstripes, etc) 4. List any rebates or incentives currently offered on this vehicle (do not include this in the price of the bid) thank you, [YOUR NAME]

If you still don't receive a bid by the end of the day, follow up with a phone call and see if they received your emails. Either way, try to get a bid from them on the phone or try to get them to agree to send you a bid via email as soon as possible.

In addition to not receiving bids from some dealers, you may receive bids with missing information. Sometimes the fleet manager will send an "out the door price" without any other info. Sometimes they will only quote you a price and not the amount over or under invoice. You need to standardize their bids so you can compare fairly. Follow up with the dealers who don't give you all the information you need. Let them know you need clarification on certain fees or proper bids including invoice price. They will usually respond accordingly.

Step 5:

   Give Dealers Chance to Beat Lowest Bid

After you receive all the bids, compare and determine which dealer offered the best deal. First, see who offered the lowest price in relation to the invoice. Then look at the dealer add-on fees that you'll be required to pay for that dealer. Add it all up and see who offered the best overall deal after taking into account all additional fees.

Keep in mind that some dealerships will charge a different amount for doc fees or other fees. You need to take this into account when determining who offered the best price. Let's assume your lowest bid was $500 over invoice but the dealer charges a $100 doc fee. Another dealer also offered $500 but their dealer doc fee was $50. In this case, the first dealer would have to lower their bid to $450 over invoice to match the 2nd offer even though they originally bid the same price over invoice.

After determining the lowest overall bid, you need to contact each fleet manager and offer them a chance to beat it. Start with the worst bid and work your way down. Each phone call or email will have to be customized to that specific dealer to take into account the different fees you have encountered.

But here's the juicy part, you're going to offer each dealer an incentive to lower their bid! The incentive is your promise to give them a 100% rating on the Customer Satisfaction Survey you'll receive after purchasing. The CSS is a survey sent to each car buyer by the manufacturer. It's their way of keeping tabs on dealerships and determining which dealerships are treating their customers right. Customer Satisfaction Surveys are very important to dealers and can result in large bonuses for each car they sell (as long as the ratings are good).

Another juicy incentive you can offer is the promise to service your car at their dealership after the sale. Car dealers make the bulk of their profit on parts and services so this is a big incentive. To keep things fair, only promise this if you really do intend to service your car at that dealership. Obviously, no dealer will believe you if you live 100 miles away.

It's best to call each fleet manager starting with the highest bid and see if they will beat the price. This way, if one does offer a lower bid, the next call you make will include this lower bid, and so on. (If you really hate calling, email will still be effective in this case)

Here's how the conversation should go:

You:	"Hi [NAME OF FLEET MANAGER], this is Joe, thanks for sending me the bid for the [YEAR/MAKE/MODEL]. You had quoted me [*] over invoice. The best offer I got was [$] over invoice. Now, before I give you an opportunity to beat that bid, I did want to let you know that I'll be giving a 100% score on the Customer Satisfaction Survey. Also, if I buy from you, I will be servicing my car at your dealership. Taking that into account, will you be able to offer me a lower bid?"
Fleet Manager:	[Offers lower bid]
You:	"That's great. Thank you. I still have some more calls to make, but I will call you back with my final decision." [If dealer can't offer a lower bid, thank them and move on]

It's pretty simple. You just go down the list until you have called all dealerships.

Step 6:

   Finalize Deal in Writing and Pick Up Your Car

After calling all dealers to get a final bid, you will now have in front of you the lowest price being offered for the car of your choice in your area. The only way to get a better price than this is to time your purchase when demand for the vehicle goes down. That could be 2 weeks from now, or several months. Most car buyers don't want to wait months to buy a car and we're assuming you don't either.

So now that you have your lowest price, call or email the dealership and get everything in writing before you actually go to the dealer. Sometimes, you'll get a dealer who places a low bid just to trick you to come to the dealership. When you get there, they'll come up with some story about how the car you wanted is no longer available. They'll try to sell you another car at a higher profit, banking on the fact that since you're already at the dealership, it would be too much hassle to go home.

What you're going to request from the lowest bidder is something in writing which states they have the exact vehicle you want on their lot. This should include the vehicle identification number, the MSRP, Invoice Price, all additional fees and the out the door price. Go to the dealership with a printout of the deal, sign the paperwork, pay and you're on your way home with a new car knowing that you got a great deal.

If for some reason the dealer comes up with an excuse why they can't sell you the car, even with written proof, explain that you're not there to play games. If they are not willing to give you the deal they promised, not only will you leave and take your business to their competitor, but you will gladly post negative comments about your experience online. If this doesn't jolt them into completing the deal, simply walk away, and choose the next lower bidder.

That's it. You now have the knowledge to get THE LOWEST price on any new car. Good luck

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Frequently Asked Questions:

Can this method be used for leasing as well?
Absolutely. You should always negotiate the price of the car first. Afterwards, you can lease based on that price. Dealers will always try to get you to focus on the monthly payments because it's easy for them to scam you that way. For example, they may offer a good monthly payment, but require a larger down payment.

Just remember a simple rule: Always seperate out the negotiation of the car with any other factors such as leasing, insurance, financing, warranties, and trade-in. When you do this, the dealer doesn't have any room to move around numbers and confuse you.

Why do I want to get information about prices above and below invoice price? Wouldn't it be simpler just to request an "out the door" price?
Requesting a price based on invoice allows you to compare apples to apples. There is no guarantee that every dealer will have the EXACT same car you're looking for (with all the same options, colors, etc). Chances are, the invoice prices will be a little different. If you were to just get the "out the door" price, your lowest price could simply be the car with the least options (although the deal wouldn't be the best).

Can I request prices on multiple trim levels and/or model years at the same time?
Absolutely! A good dealer will have no problem providing you with pricing on multiple trim levels or models.

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We always welcome your car buying questions. Email Us and we'll be glad to answer them!

Be sure to read our other money saving tips:

• Car Financing Tips
• Used Car Trade-In Tips