Step 5: Determine the bottom-line price.
(General Motors Corporation)
Once you’ve winnowed down your choices, check online or printed price guides to determine a given make and model’s MSRP (manufacturer’s suggested retail price– also known as its “sticker” price), and also the dealer’s so-called invoice price for the version of the car or truck you’re considering, plus any options. Essentially a few percent above the dealer’s actual cost should be your “target” price. The final transaction price will wind up somewhere between the MSRP and invoice prices, and it’s a uniquely moving target that’s determined largely by the law of supply and demand. Generally, less popular and overstocked models will tend to be offered with the deepest discounts, while the hottest-selling rides may still command at or close to sticker price.