Did you know that there are certain formulas that you should know about so that you would know the true dealer cost of the car that you are being dealt with? As a customer, you should really know the price that you should negotiate with the dealer so that you would get a price below that of dealer invoice. You have to have the initiative to look for these car buying strategies so that you would know how to help reducerates being demanded by these car dealers.

There are websites like Car Buying Strategies which can help you find out what these formulas are. What more, you can read these formulas for free for they are openly published on these websites. You just need to be a little patient in doing your search for you know how vast the world of the Internet is. These formulas would be:

• destination charge + options Price on invoice + – holdback = true dealer cost
• taxes or licensing True dealer cost – rebate = road price

A simpler version of thee formulas above would only require you to remove the destination charge and the options so that you can get the true dealer cost. If you already know these formulas, you would have more drive to persuade the dealers to lower their prices. Even if they would sell the car to you at a price below the invoice price, they would still be able to keep the destination charge anyway. Thus, they would still have profits.