How to determine a New Car Price.
When I am shopping for a new car, I use the following formula to determine the price I will pay
for a new car. It’s a formula that I have used many times in the past few years and almost always results in the best deal.
True Dealer Cost
True Dealer Cost
Your Rock Bottom Price
this page, it contains valuable links you will need
in your car buying journey.
Research invoice price at Invoice Dealers Make sure you add the invoice costs of all options you are
looking for to get true invoice
Search for dealer to customer rebates, and manufacturer to dealer rebates. Add these two numbers together to get your total rebate. Most cars will not have a manufacturer to dealer rebate, so don’t worry if you don’t find one.
4: Subtract the total rebate found in step 3 from the invoice price calculated in step 2 and you have true dealer cost.
5: Multiply the true dealer cost by 1.04 to get your bottom line price. This is 4% profit for the dealer, and is more than fair.
Step 6: Get a new car price quote and start negotiating with the dealer on your terms. I have had dealers offer me less than my bottom line, so when you fill out the Form, don’t let them know what you are willing to pay ! This quote is not binding, and you will not get spammed. I have included a link below to start your price quote. If you are comparing vehicles, make sure you submit multiple quotes !
E-mail me if you have any questions.
Before you click out! While I know a lot about cars, I don't know a lot about YOUR CAR! A repair manual is essential and I have a way for you to get one FREE. Click Here To Read More(Link opens in a new window)
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Posted: 9th July 2006 | Author: Kevin Schappell | Category: Buying A Car