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For a 2015 new vehicle: The dealership has internet listings on base models of $1,000 over the manufacturer's MSRP. I can't tell if they've added in the Destination Fee (about $800) or if that is their sucker price. The Edmunds.COM website lists the average price paid to be $1,500 less than the dealer list price.
When the haggling begins, what is a general starting price point for me to offer: Below the Edmunds amount, at the Edmunds amount, or offer the manufacturer MSRP amount?
I will negotiate with the base price as the only consideration. No discussing financing, trade in, extras, extended warranties, or dealer services. All those extra costs are moot if we can't first agree on the base price. (And the extras are usually less expensive if handled elsewhere).
If you don't try you'll always wonder. If the dealer rejects your offer then you'll have to go with the lowest price that they've offered to you or walk.
I haven't seen TrueCar show the invoice price for quite a while now. However, TrueCar is a good place to get an idea of prices paid in your locale.
Use NADA to build the car you're interested it to find the invoice price.
Next, negotiate with an online sales rep with the invoice price obtained from NADA... use TrueCar price as the upper-bound. If dealerships are not willing to sell around the invoice price or lower than the TrueCar price, then buy with a TrueCar "price-guarantee".
I ask because it is not always very easy to negotiate sale and trade amounts separately since they are part of one greater deal, and it is also not necessary if you have done your homework ahead of time.
Typically, it is far easier to negotiate the "difference" or what you will actually be paying and contrary to some advise out there, you can get just as good of a deal.
Edmunds.com is also a good source for pricing. They have a no haggle price promise tool on their website. Use that and compare it to truecar and go with whatever gives you the better deal. There's also sites like NADA and KBB that you can use to get a feel for what would be a good deal for you.
There are other factors in that price that could sway the negotiation. If the car is in high demand or low supply, the dealer may not want to budge off the MSRP too much. Whereas if there are dozens of similar models on the lot to choose from with color being the main difference, they will likely let it go for Invoice or below even, depending on what specials are available or what bonuses the dealership is eligible for form the manufacturer (which they likely won't tell you about).
Pricing on Edmunds and Truecar is good to provide context for the sale price of the car, but doesn't take into account all the added fees that get you to the off-the-lot price. Documentation fee, sales tax, registration fee, and anything that gets added on in F&I office will bring the actual cost of that car much higher and possibly over your budget. Its good to consider those additional fees before you begin negotiation so you know what the realistic price of the car needs to be in order to reach a final price or payment that fits your budget.
Ultimately, the market will drive the price of the car, so be aware of other conditions in your area that may make your negotiation more successful. The guide books are just guides, do your research across multiple dealership and 3rd party sites to better understand what the actual listing prices are. I met a software developer one time that told me he wrote a little script that scraped about 2000 listings online for the car he wanted and calculated the best price from that data. With that kind of research, it would be hard for a dealer to not give you that deal and for both sides to be happy with it. That's a little extreme, but a little research could save you a good chunk of change.
For a 2015 new vehicle: The dealership has internet listings on base models of $1,000 over the manufacturer's MSRP. I can't tell if they've added in the Destination Fee (about $800) or if that is their sucker price. The Edmunds.COM website lists the average price paid to be $1,500 less than the dealer list price.
When the haggling begins, what is a general starting price point for me to offer: Below the Edmunds amount, at the Edmunds amount, or offer the manufacturer MSRP amount?
I will negotiate with the base price as the only consideration. No discussing financing, trade in, extras, extended warranties, or dealer services. All those extra costs are moot if we can't first agree on the base price. (And the extras are usually less expensive if handled elsewhere).
What car is this?
You wouldn't offer MSRP unless it's a brand-new hot model that's in demand.
Most people target invoice as the buy price.
To remove the headache of accounting for dealer junk fees, many people calculate Tax-Title-License as well and negotiate an Out The Door price.
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