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Calculate True Dealer Cost with Car Dealer Invoice Prices
Every car buyer knows you need to find the car dealer invoice prices for the car you want. Request a free price quote on any new car and find the best possible deals, at the lowest price in your town. Plus! See the actual car dealer invoice cost.
To understand car dealer invoice prices, you need to begin with the base invoice price. This is the base price of a new auto, with no added factor or dealer options. The standard packaged options, which come with many autos, are included in the base price. This price does not include title, taxes, delivery and any other options added to an automobile. Use this base invoice car price information to better estimate and negotiate your price range when shopping for an auto.
The invoice price of a car is the standard price the dealerships are charged by the automaker for a vehicle. This does not necessarily represent the price the dealer actually paid for the car, as there are volume discounts and rebates for which some dealerships qualify. The amount actually paid by the dealer for the car is usually lower than the invoice price.
What are Additional Options (aka. Trim Options)?
The term “additional option” (a.k.a. Trim Options) can be confusing. But it is the key to calculating the total invoice car price and huge hidden profits that the dealership charges to you. Every model trim has options that are not standard within the model package options which are available as add-ons to the vehicle.
These options might come from the automaker or they might be installed at the dealership. They are a hidden profit center for dealerships, and you need to pay close attention to them. Because the dealership may use base car invoice price as a basis for negotiating the car price, a car buying tip is that they may include any additional options at retail price. You need to be able to price out these dealership options at invoice price as well, to learn true dealership cost.
Dealerships order vehicles from a manufacturer with specific option packages. There is an invoice and a retail price for each option package. Every additional option has an option code. All the codes are conveniently listed on the window sticker or the car invoice.
Dealers make most of their profit in the dealer installed options or accessories, as well as, additional aftermarket accessories. These items are sometimes listed separately on an additional-equipment sticker and include such items as molding, wind deflectors, license-plate brackets, wheel locks, bras, and mud guards or flaps. Dealers typically mark these up 40-50%.
An important point to remember about additional options is the rate of depreciation for certain addition options, your intention to preserve value when it comes time to re-sell your vehicle in the future. The “big three” in terms of additional options are MP3 stereo system jack, power-sunroof, and leather interior. These are examples of highly popular items on vehicles and that will make your car or truck much more valuable for resale.
Choosing the right options is essential, so pay attention to the different packages that the dealerships offer. Now, by no means do we suggest decking your car out with the latest and greatest things. Make sure you stay within your price range, as compared to loading up your car with fancy (i.e. unnecessary) additional options and work with the salesman to put together a good deal for you.
Negotiation