I've been researching this site and others on how to buy at the best price... The consensus seems to be to find out what the dealer actually paid (not just the invoice price) and offer 3% to 5% over that. This seems reasonable, however, my state (NY) has 7.5% sales tax. So lets say I negotiate a price of $30,000, I then have to come up with $2250 in sales tax; and this goes right into the dealers pocket.

All I'm saying is - they (dealer) may be willing to take only 3% profit over what they paid, but in all actuality it's a whopping 10.5%. Yeah, sure they pay taxes, too, but it still won't be as much...

 

As someone who collects sales taxes in GA, I can assure you that your dealer will not pocket a penny of that money. The retailer acts as an agent of the government collecting the tax revenue and sending it to the state and appropriate local municipalities. They will only keep the sales price you negotiate with them. Good luck on your purchase.

 

I bought my scab from the x-plan but I am sure you can get invoice price on the vechicle,also remember the incentives

 

KTNG...unless you're the accountant at the Ford dealer where you purchased the truck, it's impossible to know exactly what the dealer paid. There are too many factors and specific scenarios involved with each vehicle, e.g. how much are the "flooring" charges (interest dealer pays to factory on wholesale value of the vehicle; dependent on how long vehicle is in the dealer's inventory). There are other factory/dealer negotiable price items and don't forget the 3% factory rebate to the dealer for each unit sold. Very complex, but if a dealer sells to you at invoice he still pockets the 3%, etc., etc., etc. The point is, unless you're eligible for one of the pricing plans, if you purchase the vehicle at factory invoice (no secrets here) plus or minus $300, you've cut a fairly reasonable deal. A common deal to an informed buyer dealing with the Fleet Mgr. in my vicinity is factory invoice less the FDAF ($295).

 

Like Jeffss said, that sales tax goes right to your DMV fund. Everyone pays that.

 

I am not sure about any other state but in Illinois
the person who collects the tax get's to keep 1.0%
of what is collected to compensate for the paper work
and record keeping.

Mike.