A41.8QTM said:
... So even though you paid 4% over invoice the dealer like made 6-8% profit. They were probably happy.
He's right. As a rule of thumb, after a new car cools down a bit, here's the formula to use:
STEP 1
Published invoice price
+ destination charges
- dealer holdback (usually about 2% of published MSRP)
- current manufacturer/dealer incentives
--------------------------------------
target price point.
So, for example a GTI 6-spd with Pkg 1:
20,240 + 1,252 = 21,492 (invoice)
630 (dest)
- 440 (holdback)
- 0 (no current incentives)
= 21,682 (my asking price)
You now negotiate starting at 21,682. (Even at this price, the dealer ain't losing any money.) Give in only up to $440 (the holdback).
STEP 2
Once you get agreements, you add:
21,682 (your agreed price above)
+ Tax (formula usually depends on the state)
+ License & Registration Fees
= Out the Dealer (OTD) price.
Remember in the last section, they will always try to throw in some official sounding BS fees like "advertising fees" or "decumentation fees". Note, some of these BS fees are actually pre-printed on the financial worksheet that the dealer uses---to make it look official! Don't fall for this crap! Anything that's not officially charged by the state IS NEGOTIABLE. So, make sure ahead of time how the registration fees and taxes are computer in your resident state!
If the dealer won't budge on the BS fees, fight for some extras like 10 free oil changes, extra set of mats or some gas coupons. Remember to get this in writing!
Good luck and enjoy the car.