When shopping for a new car it's important to know what the different prices mean so you can know the different between a good deal and a great deal! Request your new car price quote and receive exclusive rebates and incentives as well as the invoice price of the new car that you want to purchase. It's quick, it's easy and there is no obligation to buy. Get Started Today!
Know how to roughly calculate the wholesale car values. This is done by learning the dealer invoice price which you can get by requesting a free new car price quote. The dealer invoice price is what the factory charges the dealer for the new car, it represents the wholesale price of the vehicle combined with any factory installed options. Once you know the wholesale car price you know what you should be aiming to pay.
Determine other dealer discounts; this will enable you to calculate the actual cost of the vehicle to the dealer, so you know how much profit they are making with the price they are trying to charge. Dealer discounts include factory to dealer incentives, and the holdback which is 2-3% of the dealer invoice price or the MSRP (Manufacturer's Suggested Retail Price).
Know the costs you have to pay, and the ones you don't. You need to pay destination charges, but you may be able to negotiate down any 'dealer fees' listed, it never hurts to ask.
The best times to find wholesale auto prices are during the holidays, end of month and end of week. This is because dealers are trying to meet their quotes and may be more inclined to giving you a wholesale price if it means making room on the lot for newer models.
If you really want to find models for wholesale prices then try to look at previous year models and models that are in unpopular colors, dealers will want to get rid of these models and as such may give them to you at wholesale values.
The dealer invoice price is the 'technical' price the dealer pays the factory for the vehicle. It does not take into account the dealer holdback or any factory to dealer incentives that may be reducing the actual cost to the dealership.
It is also important to know that the MSRP is the Manufacturer's Suggested Retail Price and is what the factory recommends the vehicle be sold for. However, the dealer is under no obligation to sell the vehicle for this price, it's simply a recommendation.
The dealer cost is calculated by subtracting the dealer holdback (2-3% of the dealer invoice price or Manufacturer's Suggested Retail Price) and the factory to dealer incentives from the dealer invoice price. Once you know the dealer cost you can calculate how much profit the dealership is making on the price they are charging you. Obviously you can't expect the dealership to take a loss, but you can drive a hard bargain and aim to pay below or as close to the dealer cost as possible.
Get started on shopping for your new car today! Request a free, no obligation to buy new car price quote and you will get the invoice price as well as the tools you need to calculate the dealer cost so you can be on your way to getting the wholesale car values you want to pay.