“Now if you charge the car, the vendor will pay a discount fee, which he will likely include in the price of the car.”
That’s not true.
The deal has already been made. Whether you use a credit card or not has nothing to do with pricing.
There is not that much negotiating that you need to do if you understand the process.
Eliminate variables. By this I mean there is no trade in, don’t need to worry about financing becasue I have already been preapproved, and I am not looking for a warranty.
Take a look in a local paper or go online to see if there are any Cash rebates. These rebates are provided by the manufacturer not the dealer.
Understand the pricing structure of cars. There are the sticker price represented by MSRP.
Then there is the Invoice Cost. This is typically referred to as dealer cost but it is not a true dealer cost. Built into the invoice cost of a car is 3 additional costs. Those costs include Advertising, Financing and Holdback. Typically advertising and financing are about 1%. Holdback is generally going to be 3% of MSRP.
So putting this together would mean going to a dealer and knowing the invoice price of the car.
Then looking to apply a manufacturer rebate to that invoice cost.
Last by using your own financing in advance you can dimply apply the price of the car to the financing cost you recieved from an outside company and that should get you a pretty good deal.
Typically a good benchmark for a new car purchasemight be Invoice+200-manufacturers rebate.
If you are OK with loss leaders you can usually pick up a sunday paper and jsut walk in and take the deal advertised. Usually these deal Represent the Invoice Cost-advertising-holdback-finace-manufactures rebate. If you are OK with the color selection and option on the car it is a good way to buy.
