Manufacturer incentives affect new vehicle prices. Learning the Terms Understanding car-buying terms will help you in your price negotiations. However, dealers often pay less than invoice price since the dealers receive rebates, allowances, discounts, and incentive awards from manufacturers. Invoice price includes freight or destination and delivery charges. Only the purchaser may remove these labels.
Markups vary from model to model, dealer to dealer.
The negotiated price may be higher or lower, depending on the demand for the particular model. Plan to negotiate price. Compare final sales with other dealers, buying services and broker buying services. Check with several dealerships. If you are thinking of trading in your vehicle, find out the value independent of a dealer's trade-in offer.