Know how much it’s worth before you buy

Red dollar sign in a crack

You should never offer to buy a new car until you have three key pieces of information about how much it costs.

The best way to get that is by going to or Kelley Blue Book.

Use information from the window sticker to put all the specifics about the engine, accessories and even the color, into their calculators.

Based on that Edmunds or Kelley will provide you with three prices:

MSRP. This should be very close to the suggested retail price on the sticker. If it is, then you know you've put in all of the right information.

Invoice price. This is the price the dealer paid for the car.

Average transaction price. Edmunds calls this "What Others Are Paying." Kelley refers to it as "The New Car Blue Book Value." It will usually be somewhere between the retail price and invoice price.

Negotiate a purchase price that's somewhat less than the average transaction price and you've probably struck a pretty good deal.

Click here to learn more about how to get the best deal on a new ride.

Leave a Reply

Your email address will not be published. Required fields are marked *