Negotiating

Unless you’ shopping for a car online or at a no-haggle auto dealership, your actual sales price will be what you negotiate based on the MSRP, invoice cost and other extra charges.

Doing your homework

Negotiating can be intimidating, which is why fixed-price car dealerships have become so popular. But studies have shown that you can get a better price by bargaining. Your best bet is to start by researching the invoice cost of cars that interest you, using a new-car pricing guide from a bookstore or magazine stand or at www.edmunds.com, a free car-buying website. Knowing what a dealer may have paid for a car will help you calculate what you’ willing to offer.

These guides and websites are also likely to give you tips on overstocked cars or models that aren’ selling well — and thus might be ripe for negotiation — as well as dealer holdbacks, factory-to-dealer rebates and sales incentives. And some website tools, such as Edmunds.com’ True Market Value feature, can tell you what other people are paying for certain cars, which can help your own negotiations.

For more tips on factors to consider when you’ negotiating a price, click here.