I need to buy a new car (Dodge Caravan).  The dealer has given me a
quote which is the MSRP.  We all  know we can get our cars below that.
 The question is how much below?

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Request for Question Clarification by tar_heel_v-ga on 20 Oct 2004 14:59 PDT

Can you give some specifics on the model he is quoting?

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Clarification of Question by renoir-ga on 20 Oct 2004 20:29 PDT

Model is the "SXT".

The true answer to the lowest cost is the market dynamics of supply
and demand in your specific locale at the time you choose to purchase
on the model you have in mind.  The timing and model is under your
control and the locale is limited only by your willingness and ability
to travel.  For most people practicality enters the picture and
compromises must be made on both timing and locale, and flexibility on
options and color.

I recently stumbled on www.fightingchance.com.  I have no affiliation
with them but I am a VERY happy client.  Using the techniques they
provide in their offering I recently purchased two vehicles for an
average of $2000 UNDER invoice (each) and then applied the
manufacturer rebates to further lower the price.  Maybe I got lucky, I
don't know.  I did follow the recommendations to the "T".  The package
costs $34.95 and reading the company web site is free.  See what you
think.

Thanks very much for your comment

My understanding is that a general rule of thumb for new car buying is
to never pay more than 5% over invoice price.  Invoice price is the
amount that the dealer pays for the car, and you can find this
information in Kelley Blue Book (http://www.kbb.com/).  When I bought
a new car, I started negotiating at 2% over invoice, and was prepared
to go as high as 5% (it's useful to work out the numbers in advance so
you can negotiate based on an actual price rather than just a
percent).  To my delight, the salesman agreed to sell me the car at 2%
over invoice.  It was Easter, so I'm not sure if this had something to
do with it!  Also, I asked them to throw in the floor mats for free. 
Why not?  If you tell them that you will walk out unless they throw in
floor mats, they'll do it.

Thank s for your comment.

For a reasonable fee, Consumer Reports offers a service that will tell
you how much the dealer actually paid for a certain model of car.
Knowing the dealer's true cost gives you an edge in negotiating.

http://www.consumerreports.org/main/aps/aps_detail.jsp?aps_type=NAR&AFFID=nc5&AFFADID=nccrwp

http://www.consumerreports.org/main/detailv2.jsp?CONTENT%3C%3Ecnt_id=16319&FOLDER%3C%3Efolder_id=16271&bmUID=1098424497198

pinkfreud does it again.  Thank you.

On my recent car purchase, I found the most reliable data on www.edmunds.com

You can configure the exact model and options you want and it will
give you a "true market" price based on what others in your region
have paid for the same car.  This price was very close to what I was
able to negotiate - the invoice price.  Dealers can sell the car for
the invoice price because they have holdbacks and incentives for each
car sold.  So, the invoice price is just that - the number on the
invoice, but it is not the dealer's actual cost for a vehicle.