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The importance of target pricing.
When buying a new car, there is a price that professional car buyers use to negotiate with the car dealer. We at
ProAutoBuying.com call that price the ATP or Auto Target Price. The Auto Target Price is an aggressive price point
that we use when negotiating to buy a new vehicle for our customers with car dealers in their area.
Calculation of the Auto Target Price is based on many factors that only the car dealer, auto industry experts, and
professional auto buying agents are typically familiar with. They are the invoice cost of the car, the dealer cost (not
the same as invoice), the MSRP or sticker price, and most importantly - sales data, supply and demand information,
unannounced manufacturer to dealer incentives and other factors.
The ProAutoBuying agent will use all of this information in calculating the target price for negotiations.
What’s so special about a target price, can’t I just “lowball” the dealer?
The reason the Auto Target Price is important to get right, is that if your target is too low, the salesperson will simply
dismiss you and your offer and if it’s too high, the salesperson will happily agree to your offer and you’ll know you
offered too much.
Think of a bullseye on a target. That’s where the ATP should be. If it’s moved out of the bullseye, then you lose
money or you lose the car because the dealer won’t sell it at that price.
The Problem with Consumer Reports Bottom Line Pricing
Have you ordered a Consumer Reports Bottom Line Pricing Report and not been able to use it? Don't feel bad.
Look at what a few of these buyers’ had to say to Consumeraffairs.com about the Consumer Reports Bottom Line
Pricing:
We’re not saying that Consumer Reports is a bad publication or that the information that they provide is not helpful,
on the contrary. The information they provide, while seemingly biased in some cases, is nonetheless very helpful in
allowing consumers to make informed buying decisions.
Trying to decide between a Chevy Malibu and Toyota Camry? Consumer Reports is one of many publications that
provides helpful information, ratings, and comparisons.
What they don’t do well because of the size of the organization is provide accurate and helpful
information on target pricing that you can use to negotiate a great deal on your next car purchase.
The information that they do provide for pricing is sometimes outdated and is calculated by a computer using a pre-
programmed formula. It doesn’t take into account the vital information that we use at ProAutoBuying to calculate our
Auto Target Price.
Look closely at the fine print if you’re thinking of ordering the CR bottom line pricing report. They give you the price
and then say,
“Depending on the vehicle you're interested in buying and how much demand there is for it, a
reasonable purchase price would be about 1 to 5 percent over the CR Bottom Line Price.”
That Narrows it Down !
So unlike the ProAutoBuying Auto Target Price, Consumer Reports gives you a number and then says add 1 to 5 %
for your offer. Let’s see what that looks like:
If the bottom line price they give you for the vehicle you’re interested in comes out to $20,000 for example, you’re
range of a “reasonable purchase price” is anywhere from $20,200 ($20,000 + 1%) to $21,000 ($20,000 + 5%).
An $800 purchase price range!
What if the car you want is $40,000? That’s right, a $1,600 range ($40,400 to $42,000)!
So what do you as the buyer do? In our first example, do you offer $20,200 which is the bottom of the range (1%
over).
If the actual Auto Target Price should be $20,600 based not on what CR says, “…how much demand there is for it
(which they don’t tell you), and other sales data and information; then you’re below the reasonable target.
The dealer then thinks you’re “low balling” and dismisses you as being less than serious. If you’re lucky, they’ll do it
in a nice way but, don’t count on that.
If you really want the car, what do you do after they dismiss your offer? Do you go to 2% and risk really upsetting
the dealer who thinks you’re just shooting from the hip (which you are).
Many consumers would relinquish their power at that point to the dealer and rely on their inflated price as a “realistic
price.”
If that realistic price that the salesperson gives you is at the 5% over bottom line pricing ($21,000) when it should be
at 3% ($20,600), then you’ve wasted $414.00.
$21,000 → dealers “realistic price”
- $20,600 → actual ATP (Actual Target Price).
$400 → amount overpaid
$14 → amount wasted on CR bottom line pricing
= $414
If you want a report on all of the specifications, invoice pricing, and quality ratings of a particular vehicle, order the
CR report for $14. Also realize that all of the information that they provide is available on line either on their site or
magazine or on many other sites like Edmunds, Kelley Blue Book and others.
If you want a realistic Auto Target Price calculated with real time data and information, by an auto buying and
negotiations expert, order the ATP report from ProAutoBuying.com for only $29.95.
P.S. You won’t get the Auto Target Pricing from ProAutoBuying immediately but, that’s a good thing. Since we
calculate the ATP manually using the latest available data, it can take from 24 to 48 hours (never longer) depending
on the number of customer orders we have in front of yours. (Please send us an e-mail steve@proautobuying.com
for current lead time).
Just fill out the form below on the vehicle that you want and we'll calculate your personalized ATR Auto Target Price!
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only $29.95!
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only $29.95!
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After submitting the information, please click on
the "Buy Now" button to pay for the Auto Target
Price using your credit card or PayPal account.
Auto Target Price (ATR)
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