Buying A Car 100s or even 1000s Below

Buying a car 100s or even 1000s below dealer invoice!!!

Yes that’s right, you can buy a car/truck thousands below dealer invoice, if you do your homework as I explained in this article. I have seen lots of article online how to buy a car, they all give you not so practical information’s. Here I learned everything.

From hard way I am sharing it with you, use it to your advantage.

I sold a brand new fully loaded Ford Taurus $ 1325.00 below dealer invoice.

Hello, my name is Jake Jacobs, I sold and worked as a car salesman from 1977 at Luke Johnson Ford a family owned dealership in Houston, Texas. I was an Insurance Agent for Prudential Life Insurance Corporation of America, as well as a Real-Estate Broker. I have over 40 years of combined experience in business. I am also a published Author for a car buying book.

I worked for number of dealership across the country. Here what I learned from selling cars. Over 18 million new cars sold in US each year. Most of the car buyers over pay. The reason they buy on impulse, very rarely they do their homework. They do not know how to negotiate with car salesman.

First thing first. Start doing your homework at least 3 months before

Remember this is the second biggest investment. You make after a home.  If you are single may want to buy a sports car.

If you are married sit with your partner (family) discuss what the purpose of this vehicle, Main car for work, or family car. Whatever you decide, then chose a manufactures (Ford, Toyota, Or Nissan), you can do this online research, or look at the consumer guide, study as much you can on different vehicles.

Now you have decided go to the dearer test drive. Best time to visit the car is either Tuesday to Friday Morning or mid afternoon. Avoid visiting car dealer on the week-end and big holidays.While test driving take it to the freeway, drive as much you want get the feelings. While driving check the safety features as well as the fuel economy.

Test drive at least 3 different models, you may have to visit 3 different dealerships. End of the month is a good time to buy a car. Now you have decided on the car/truck, second step is to find out the incentives.

You can do this by calling the dealer, call the manufactures. Call them and ask them hey I am interested in purchasing this model car


What are the incentives available?

Incentives such as

1. First time car buyer discount

2. College graduate incentives

3. Veteran’s/Military discount

4. Brand loyalty discount

5. Manufactures rebate

6. Auto show discounts

7. Aged inventory (this is current model car sitting on the car lots


Over period of time, may be over 60 days or 3 months or longer. Dealer want to move these models to make room for new models arriving daily.

Dealer buys cars on credit. If the car sits longer he has to pay interest (finance charges) most of the time manufactures may offer rebate to the dealer. So, the dealer is forced to move this car faster, you may be the lucky one get a better price.

To find out about these cars.

To do your homework, here a New Car/Used Car Check list. You can down load this checklists.

You have selected the car you want to buy, you test drove the car find out all available incentives.

Now comes negation part. There are many ways to negotiate.

1. There are 2 prices, one is MSRP (Manufactures Suggest Retail Price)



Now that you are aware of the “below invoice price” strategy, you need to calculate the hidden benefits the manufacturer gives to the dealer for the particular car you are willing to buy. Each factory has its own benefits, holdback percentages and special rebates.


Dealer Invoice (this is what dealer pays for the car/truck) How you find out this.

You can find this dealer invoice go to NADA or ask the dealer to show you the invoice. When you looking on the invoice make sure.

This is the right car you buying. You can check the VIN number against the invoice.

There is a secret profit (I call it) hold on each from 2 to 3 % you can use this figure.

As a negotiating tool.

Calculate the hold back.

You are not obligated to buy anything they offer you no matter what?

If the dealer charge you for Fabric protection, Paint protection, Window theft protection, VIN etching etc. These are all nonsense, these are all for added profits for the dealer. You are not going to pay for any of these sale tax, it depends on the state you live.

Do you need GAP Insurances? Theft Insurance Protection, You may want say NO to this, or check with your Insurance Agent. He will explain weather you may want or not.

Extended Warranty, Do I need this, this a big question, why pay 1000s of dollars for this

Extended warranty

Most of the car come with manufactures warranty 5 year or 60,000 miles ever. Sometime 100, 000 miles. Now cars are made better and last longer. I would suggest NO, it can be a good thing, other words if you decide to buy extended warranty buy only from manufacture.If you buy extended warranty from any other companies, May warranties are not worth Paper written on it. Documents fee, Delivery fee, refuse to pay. Except documents fee.

If you are uncomfortable take a friend with you can trust. You only visit a car dealer to test drive and sign your documents.

If you do not want haggle the price, do it from your home. Get the details of your car you purchasing, note down the VIN number. Come home do it over the phone. Or try online (some dealer do that)

Make sure you note down the VIN number, this is very important. (This is hassle free from the Privacy of your own home). If you have a trade in… what to, find out from Blue Book (Kelly blue Book)

Retails price, wholesale price, Instead of giving it to the dealer you can sell it own your own place an ad on Craig list or local newspaper. Last place trading it for a new car to the car dealer (the dealer won’t give you a good price)

Now comes the Car Financing part:

You have many ways to get financing

  1. From car dealer (only you finance through

2. Manufacture financing (Some time Manufacture offer 0 % financing

If you get this financing do not put large amount of money as down payment. Use that money as saving for emergencies.

3. Bank Financing: Do you need to get a pre-approval, I suggest you may not need. A pre-approval (this will only add another enquiry to your credit file)

Instead you need to know your 4 cs. These are 4 cs,

1. Your credit (this is your credit file Credit score range from 300 to 850)

2. The higher your credit score the better chances are you can negotiate a better interest rate.

3. Your capacity (your ability to make the payment each month)

4. Your collateral (your car or truck you buying)

Now you know your 4 c, this is also important part of homework. Meeting the finance Manager, they call it Business Manager, F & I Manager,

He is not your friend, he is the most skilled person you ever meet, remember that when you visit him, he is there to make maximum money for the dear through the back-end.

If he offer you anything you do not need say NO to him.

He is obligated to sell you a car, but you are not obligated to buy a car from him.

Down load auto monthly payments tables from the a9car web site. Now you can find out exact monthly payment. If a 50 cent can make difference on 60 month payment.

It may not change an interest rate, but you save money.

Taking delivery, Before signing the papers inspect the car.

Make sure all options are available on the car

According to the window sticker. Now go to finance office sign

The papers, this second inspection. Check inspect thoroughly

Make sure everything is good. If you find anything

Get in writing from the dealer. Sometimes it can happen.

They can switch for low priced items.

If you are a truck make sure it has real bomber.

Your floor mat is missing, they can switch your radio,

Spare tire is missing, etc..etc..

Make sure it has tank full of gas, it not ask the salesman.

Do not get excited, don’t think you sign the papers you have

To take the delivery

You take deliver only when you satisfied completely.

Your Credit Union, Check with credit union they can sometimes offer a better financing. Shop around, find out where you can best the lowest interest rate. You got the best price on your Car you buying, now you need to get the lowest rate. Accept car dealer financing only when they can offer 0% financing.

Do not take your car home if the loan is pending.

Never sign any agreements subject to financing.

Never discuss monthly payments.

There are small tax advantage in trading your car.

Think about buying slightly used car from a private part.

Certificated pre-owned cars (same as use car)…

Some car manufactures like TELESA is selling cars directly to consumers not through a dealer.

Some car dealer’s one price selling.

Things to remember:

a. Never get car insurance from the dealer

Unless he get you a better deal.

b. Take delivery during day light time.

c. Never use an Auto Broker.

d. Never discuss your Trade In

e. Never discuss financing

f. Watch out for bait-n-switch tactic.

g. Visit the car dealer only for test drive, show up to sign

The papers and to take delivery.

h. Never negotiate on monthly payments.

i. Get your own financing unless dealer give you a better deal.

j. Avoid Pre-approval.

k. Avoid financing over 60 months.

l. First negotiate on the car price

m. Remember it take courage to negotiate with salesman.

n. Think about renting a car for a day

o. Don’t even visit a car dealer without+ doing your homework.


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