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Make Sense Out Of Competing Price Quotes Use The New Car Factory Invoice Price To Your Advantage

You’re on the couch looking over the 3 free car price quotes you printed off from new car dealerships. They are for the exact same car; same make and same model. However, each price quote is different and one is quite a bit higher than the other two. One shows taxes and fees are included in the price quote, yet the other two didn’t. Pretty confusing, isn’t it?

Look closer at the price quotes you received for any disclaimers or other notes that says what is (or isn’t) included in the quote. Grab a pen and paper to start a list of what you discover; the name of the car dealer, their price quote, as well as anything that indicates what is or is not included in their quote. If you don’t see a disclaimer make a note to follow up with that dealer to have them clarify.

The more common and standard fees are:

  1. Since the vehicle does have to be registered, a fee for Department of Motor Vehicles is legit and necessary; it should be the same amount for the same make and model of automobile.

  2. The destination/transportation fee is what the dealer must pay to have a new car shipped from the factory to their lot; since they ‘have’ to pay it, it’s always passed through to a buyer.

  3. Whether you live in Kansas or California, you’ll be charged sales tax on the new car you’re buying. It does differ from state to state, so it would behoove you to read up on what’s charged in your area (and confirm whether it’s included in your price quote).

  4. Lastly are dealer installed options that dealerships can add to a purchase price; though most of the time it won’t be included in price quotes unless they add it to a disclaimer (i.e., price does not include dealer installed options).

There are many different prices that you’ll hear when shopping for a new car and how several can factor into differing price quotes on the exact same car:

  • The Manufacturer’s Suggested Retail Price or MSRP is a pretty straightforward price point; it’s the manufacturer’s suggestion for the highest retail value on a vehicle and dealers can actually charge whatever they want on a new automobile.

  • The dealer’s invoice price is what the manufacturer invoices a dealer for a car they buy, including any factory installed options. While a dealer can theoretically claim this is the amount they paid to the manufacturer for that new truck you want to buy, the invoice price doesn’t include numerous fees that vary from dealer to dealer.

  • The factory invoice price is supposed to be the cost the dealership paid to an automaker to get the car in their showroom; however, that’s not entirely true. It is however, still a very important figure for you to know and use during negotiations. The factory invoice price is comprised of four items:

    1. The base price for the car without any options;
    2. The cost of the car with factory installed options;
    3. The destination/transportation fee that every dealer has to pay a manufacturer to transport the car to the lot, and last but not least;
    4. Manufacturer fees that includes regional advertising and for specifically targeting buyers in the dealership’s territory. These fees do vary between dealerships and should be their cost of doing business, but oftentimes they will try to pass those on to a buyer.

What is not shown on the new car factory invoice price are all of the factory-to-dealer incentives, rebates, bonuses etc. that automakers offer to dealers to sell more cars. When you factor in all of these incentives along with the ‘dealer holdback’, that new car you want to buy cost the dealer a whole lot less than they claim.

Now that you’ve read this article you’re probably not nearly as confused as before; looking at the different price quotes and wondering how on earth they could be so different on the exact same car. You can now look at the list you made of the multiple new car price quotes with a new set of eyes and see that in part, some dealers could be coming in lower because they’re willing to part with more of their incentive money.

Just like this article was free to read, so are your price quotes along with manufacturer incentives and rebates that you requested. really is the easiest, quickest and most cost effective way to shop for a new car in .

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Car buyers equipped with pre-approved price quotes, dealer rebates and incentives are guaranteed to pay less. Know actual dealer cost, factory invoice price, and MSRP. Pay less than sticker price, deduct bonus cash rebates, secret dealer incentives, and special internet discounts. Informed new car buyers never need to haggle. Request free competing new car price quotes and uncover the savings today!