How do car rebates and incentives work?

How to Negotiate a Car Price

For the dealership the most obvious source of revenue is the sale price of the vehicle. How much should I pay for new car? What is a reasonable price to pay for a new car? These are questions that are not very easily answered. Let’s start off with what all of the numbers mean when it comes to pricing on a new car. The first number most of you have already seen is the MSRP, the Manufacturer Suggested Retail Price. This is the price that is dictated by the Manufacturer of the vehicle and will be the highest price written on the vehicle Window Sticker. There are only a few exceptions when a vehicle might command MSRP as the sale price. This would only be the case with rare vehicles in extremely high demand, like a brand new Hybrid that just came out or a limited production sports car like the Corvette ZR1 or Mustang Shelby GT500 when it was first released.

The next price point that most of you I’m sure have heard but don’t 100% understand is invoice. When you think of invoice you automatically assume this is the cost of the vehicle to the dealership. In a lot of cases dealers will take advantage of this and present it as their actual cost for the car. The invoice price is what the dealership pays for the vehicle, but it’s not cost. When a vehicle is sold by the dealership they receive what’s called holdback. This amount is written right on the invoice and can range between 1%-3% of the MSRP of the vehicle. The invoice price minus holdback is what it costs the dealership to obtain the vehicle.

So now the big question… how much should I pay for a new car? Well that depends. If it’s a vehicle that’s in high demand and low supply such as a new model that just rolled out you can expect to be anywhere from $1,000 over invoice to MSRP. After supply catches up to demand and the vehicle is more readily available you should be able to get your price at invoice or at least $200-$300 above. If you’re a good negotiator and can really work a deal getting yourself below invoice is not unreasonable. Incentives and Rebates.

Have a professional car buying agent negotiate your new car price for you.

Our professional car negotiators have years of experience in the automotive industry and know every aspect of the business. With over 15 years of management experience in a car dealership, we know what it takes to get you a great deal. We know what the dealership owns the vehicle for and can negotiate you the best price on any new make or model. From finding vehicles, negotiating pricing, financing, to trade-in values, we can help. We do not work for the dealer, nor do we accept commission or any form of payment from the dealership. We work for you, and only you, the car buyer! Buying a car is the second biggest, if not the biggest purchase you will make in your lifetime. Would you buy a house without a broker? Don’t make that mistake when buying a car. We are your personal car negotiator. Click here to view our car buying services.

Getting the Best Price

Car Buying Agent and Auto Broker Service | Cahpow | #1 Best Professional Car Broker Negotiator, Auto Buying Consultant Concierge, Boston, MA

Cahpow Car Buying Service and Auto Buying Guide


Change your whole car buying experience!

Your car buying experience will never be the same again. Take all the hassle out of buying a car and actually enjoy buying a new vehicle!

Most people love getting a new car but absolutely dread the car buying experience. Here are just a few reasons why:

  • Getting Ripped off on price.
  • Overpaying because they are female and feel like they are being taken advantage off in a male dominated environment.
  • Not being good at negotiating. Let’s face it, most people will only negotiate for two things in their life, a car and a house. How often do you buy either one?
  • Getting pushed into a car that you don’t really want.
  • Getting overcharged for an extended warranty and walking out with a higher rate than you expected.
  • Never really knowing how good of a deal they really got.


At Cahpow we take out everything you hate about buying a car and will change your whole perception of buying a new vehicle. As a car buying service and car buying agent we will do all the dirty work for you. As an Auto Broker we find you the exact car you’re looking for so you will never have to settle. We negotiate the best price and back it with our Best Price Guarantee. All you have to do is come in and pick up your brand new car. No more dealing with sales people. No more going back and forth with a sales manager. No more up sell from the finance department. Buying a car CAN be this simple! Learn about our Car Buying Services!

How are we different then some of the car buying programs out there?

Before you go through a program like TRUECar, American Express, USAA, BJ’s,, Edmunds, Auto Trader or any other buying program you have to understand how it works.

A dealer signs up to be on their dealer network and pays these companies to be a part of their program. The fee’s the dealer pays are on a monthly, per sale or per lead basis. These companies then take your information and sell it to the dealers.

If a lead provider is not profitable for the dealership then they simply won’t use them. So do the math, how good a of a deal are you really getting? Do these “Car Buying Services” have your best interest in mind, or the dealerships?

By hiring a professional car buying service, like Cahpow, we work for you not the dealership. With you paying us directly our interest is only in you getting the absolute best possible deal. We only have your interest in mind and not the dealerships.

Choosing your new vehicle

The first step in buying a car is to find a vehicle that best suits your wants and needs. Never forget that buying a car is not like buying a house, cars will never appreciate but only depreciate in value. Your vehicle will depreciate faster than you are able to pay it off so make sure the car you’re buying is one you plan on hanging on to for at least 3-5 years. Trading out of the vehicle any sooner will put you in a negative equity position.

Make a list of your “must have” and “like to have” equipment. This is where a lot of buyers tend to struggle. We all want champagne on a beer budget. Make sure you have realistic expectations. Ask yourself what you are willing to settle on and what you are not. Sure, navigation would be a great feature to have, but can I live without it?

Once you have narrowed down your needs for a new vehicle your search begins. There are a lot of great websites available on the web where you can do your homework and nail yourself down to a specific make, model, trim level and equipment. Once you have your dream car picked out, it’s time to track it down. Online is a great place to start, such as the manufacturers website or your local dealers website. However, the inventory on these sites is often out dated so calling the dealership or contacting their Internet Department (if they have one) is the next best step.

From here set up a test drive or simply drop into the dealership to make sure that the vehicle is everything you expected. Use this visit to drive the vehicle and get familiar with the options. Make sure it’s everything you were expecting. Make it very clear to the sales person that at this time you are simply making sure this is right car for you and under no circumstances you are ready to buy it today. Don’t fall for the “today only” trick. That same deal will be there tomorrow. This is simply an exploratory visit and you simply want to confirm your selection.

Help me buy a new car!

Help me buy a new car!

So you think you have what it takes to negotiate the best car deal possible? Our car buying guide will give you all the information you need on how to purchase a car. With this information you will be able to find your perfect car and negotiate the best car deal possible. We will tell you all you need to know on how to purchase a car without losing your shirt. But if you want to save time, aggravation and leave the negotiating to the professionals, we are your Boston, Massachusetts car buying service.

Our new car buying guide will walk you through choosing your new car, getting the best price, understanding rebates and incentives, negotiating trade-in value, negotiating with the business office, understanding dealer fees and more.

More posts to come! Check us out at!