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Car Pricing Secrets Coralville IA

This is the inside story on car prices and how car dealers and manufacturers affect the price you pay. Read on to learn about invoice prices and negotiating sales price.

Mercedes Benz Chezik Sayers
(319) 358-2122
2331 Mormon Trek Blvd
Iowa City, IA

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Kelly's Auto Ctr
(319) 337-0500
510 S Riverside Dr
Iowa City, IA

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Jim Miller's Buy-Rite Used Car
(319) 362-9747
600 3rd Ave SW
Cedar Rapids, IA

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D J Auto
(319) 390-1100
3815 16 Ave SW
Cedar Rapids, IA
 
Ken Dahl Auto
(319) 364-0492
714 1st St SW
Cedar Rapids, IA

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All Iowa Auto
(319) 354-0081
605 Highway 1 W
Iowa City, IA

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Deal Connect
(319) 330-8681
1017 N Summit St
Iowa City , IA
 
C R Cars
(319) 362-5080
2702 6th St SW
Cedar Rapids, IA

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Heiken Garage
(319) 363-9208
1791 16th Ave SW
Cedar Rapids, IA

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Boulevard Automotive
(319) 365-9971
2455 Williams Blvd SW
Cedar Rapids, IA

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Car Pricing Secrets

In order to understand what price you might expect to pay for your next car, you must first understand how new car pricing really works. As you know, pricing is very important whether you lease or buy.

Different customers can pay widely different prices โ€” for the same car, at the same dealer, on the same day โ€” depending on each customer's knowledge of how car pricing works.

New car dealers expect most customers to negotiate price. Unfortunately, negotiating is not easy. Buying a new car is more like haggling for a donkey in Marrakech than buying a refrigerator at Sears.

Dealers are able to quickly spot customers who don't have the knowledge to negotiate well. Knowledge is key.

Let's take a look at how dealer pricing works.

Manufacturer's Suggested Retail Price
First, for new cars, automobile manufacturers decide the retail price that will be set on each model, each model variation ("trim"), and each option. Combined, these prices become the Manufacturer's Suggested Retail Price (MSRP). These prices can change from year to year for the same models, or can even change one or more times during a model year.

MSRP becomes the "sticker price" โ€” the price shown on the vehicle's attached window sticker. There will also be additional charges for transport and preparation ("destination charge"), and distributor/dealer installed options. These charges are not technically part of the MSRP, but are part of w...

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