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The Simple Guide on How to Determine The Dealer Cost of Your New Car!

June 17, 2011

How To Determine Dealer Cost On New Cars Is As Simple As The Click Of Your Mouse!

Are you in the market for a new car? Would you like to find out the secret on how to save more money while still driving the latest cars available on the market today? Don’t believe what sceptics tell you as the true dealer cost will help you better understand the right price to pay for a brand new car. The dealer invoice alone can be used as a basis when negotiating the final asking price for a car but there is more to the dealer invoice or invoice price that is unknown to the average car buyer.

The Truth About The Dealer Invoice Price

In actual practice, the dealer invoice price will be the price that the manufacturer charged for the car. Dealers will most often present you “the dealer invoice price” and entice you to purchase a car at ‘below dealer invoice.’ While this may sound appealing at first glance, you need to understand two very important things:

  1. The car dealer will NEVER sell the car without making any profit.
  2. The exact amount of the dealer invoice price is only known by the car dealer and the manufacturer itself.

How to Determine Dealer Cost Using The Dealer Invoice Price...

To figure out the dealer cost use this formula:

Dealer Invoice + Vehicle Options + Destination Charge – Dealer Holdback = True Dealer Cost

Utilizing the dealer invoice along with vehicle options and the destination charge, you can easily figure out the right price to pay for a new car. This will also eliminate the dealer holdback from the equation.

What is The Dealer Holdback?

The dealer holdback is an amount that will be paid back to the dealer from the manufacturer once the car is sold. There are no specific considerations when determining the dealer holdback but it is around 2% - 3% the MSRP of the car. This amount is reputedly used for expenses related to the sale of a particular car. If you take the time to determine the dealer cost then you can save hundreds to thousands of dollars off the dealer holdback.

Presenting the Best Way on How to Determine Dealer Cost...

You need not even visit the car dealership to determine the dealer cost. All it takes is for you to ask for a free online quote and you will instantly determine the true dealer cost for every make and model of car that is sold on the market today. This alone will help you find the dealer that gives the best and lowest prices. Get your free, no obligation new car price quote and learn how to determine dealer cost in less than a minute.

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