NEW YORK (CNN/Money) -
The presents are all unwrapped. The egg nog is finished. The kids are playing with their new toys. So what do you do while you wait for the new year?
You could go car shopping.
"Most anyone will tell you that this time of the year is the best time to buy," said Charlie Vogelheim, executive editor of the Kelley Blue Book.
As auto dealerships try to clear out inventory and meet annual sales goals, shoppers have an opportunity to strike great deals. Here's how:
Be realistic: First, the bad news. Even during the last week, there won't be great deals available on every car. Car dealers are unlikely to let hot models like the Chrysler 300C and the Ford Mustang go for much -- if any -- less than full sticker price.
Look for the old stuff: If you're still hoping to score a deal on a 2004 model-year car, the problem will be finding one with the color and options package you're looking for. But if you find one you like, bargain hard.
When the 2004 calendar goes down and 2005 goes up, a 2004 model year car will immediately lose about 25 to 30 percent of its resale value, said Mike Hudson, consumer advice editor for the autos Web site Edmunds.com.
"You should expect some of that 25 to 30 percent off right away," he said.
Know the price points: Obviously, you want to know the sticker price for the car you're interested in. Most car manufacturer and auto research Web sites offer that information. Sites like KBB.com and Edmunds.com will also tell you the invoice price, or the amount that the manufacturer bills the dealership for the car.
The amount the dealer actually pays can vary, though, because of dealer incentives and other payments manufacturers make to the dealers. So it helps to know a couple of other numbers. Both KBB.com and Edmunds.com tell you what customers are paying, on average, for those vehicles.
CarsDirect.com, a site where you can actually buy a car at a set price, also gives you a good idea of a fair target. Since the site provides a real price, it's a useful negotiating tool. If any dealer tries to sell you the car for more, you can walk away knowing you already have a better offer.
Also, ConsumerReports.com offers subscribers something called the Consumer Reports Wholesale Price. That is the amount the car actually cost the dealer after every incentive and payback is factored in. It isn't a realistic target price, of course, but it does give you some idea how much profit the dealer is getting at the prices you're being quoted.
Look for hidden incentives: It's easy to find out about customer rebates and financing incentives. Car manufacturers and dealers advertise them widely.
It's harder to find out about dealer incentives. Like a customer incentive, a dealer incentive is money that's paid out after the sale is completed. But the money is paid to the dealership, not the consumer. Automakers do not announce this type of incentive.
Edmunds.com has information on dealer incentives. The auto buying service CarBargains.org also sells a monthly newsletter with dealer incentive data.
Get competitive: You might not be able to find out about all the dealer incentives out there. You almost certainly won't be able to find out about volume-based incentives.
Volume-based incentives are given to dealers by manufacturers only when they reach a certain target number of sales for certain vehicles. Generally, the numbers are adjusted so that high-volume dealers have higher targets.
If a dealership is close to making a monthly or annual goal, they may be willing to make a really great deal for the lucky few customers who could help them get there. But since there's no way to know where a dealer is in relation to sales targets, the only way to tap into this is to get multiple price quotes.
"Go to two or three dealerships," said Mark Gentile, associate director of car pricing services for Consumer Reports. "You'll get different ideas of how badly they want to sell the car."
Don't get sucked in: Trying to move product, car salespeople won't just be offering lower prices. Many will also be offering higher pressure. Watch out for tactics like "This price is good for today only," or "Another customer is looking at this car." Know the price you're after and stick to it.
Never be afraid to just walk away.
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