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1.
Negotiating on a new vehicle means looking at the asking price and making a lower offer.
False. Although it can mean that, it can also mean looking at the dealer's cost and negotiating upward.
2.
When negotiating the price of a new car, which starting point is likely to save you the most money?
The dealer's cost. The dealer's cost is what the dealer paid the manufacturer for it. Negotiating up from this, rather than down from the asking price, may save you more money.
3.
Which of the following prices on a new vehicle reflects what the dealer bought it for from the manufacturer?
Invoice price. This is what the manufacturer charges the dealer. The dealer, in turn, will charge you something either more or less than this.
4.
When it comes to the real price of a new car, the price that a dealer pays is usually lower than the invoice price shown because of dealer _______ .
All of the above. Manufacturers will offer rebates or allowances on certain car models, and dealers can earn incentive awards based on their sales results. All of these factors serve to lower the dealer's cost.
5.
Cars with the lowest prices will necessarily have the lowest costs of ownership.
False. True cost of ownership can actually be higher, based on factors such as tax credits, depreciation, maintenance, and other important aspects.