What amount of dealer mark-up is acceptable in California? Consumer reports says to start with 4-6%, I've heard that some dealers (for Japanese imports) can operate on less than that, but the sticker prices for options like the luxury options are around 18%, which seems totally excessive. Any guidelines to use when I go in to negotiate a price? Thanks

I tell them I never pay markups, and rarely will I be willing to pay MSRP. Educate yourself on the car, the nearby dealers, and what people on the forums are paying for their version of the same car. Use Edmunds.com and other online sites to find invoice pricing. Offer anywhere from 500+ over that price and see if they bite. Don't be afraid to walk off, they'll come down in price. However, never seem desperate to buy a car or mention a trade-in until you negotiate the price as if you were paying in cash.

-Tim

haggling is a skill that some people are just naturally good at. i work in retail no commision and i constantly get badgered by people saying oh well im gonna go across the street if you cant give me this price, only to come back when across the street cant give them that price either.

http://www.carbuyingtips.com/

there is a lot to read there, but well worth it.

If you are in SoCal I would suggest Bewley Allen in Alhambra. They gave me the best price without haggling. Got a 2005 1SB with California luxury list 38585 for 36000 out the door. Costco program guarentees 300 over invoice but I got the car for 300 under invoice. They were a real pleasure to work with.

*300 under invoice, but that was likely with the manufacturer's rebate, which the dealership likes to work-in as if they are taking the hit and cutting the price. if you can find out how much the dealer is actually making, you may be able to get the price lower.