New Car Prices | ||||||
Compare new car prices - get new car invoice price quotes and SAVE!What exactly ARE "new car prices"?You may think that determining "new car prices" or "new car invoice prices" is straightforward --but that's not really true! First, there is "base pricing". The "dealer invoice price" is the cost for the car only; it does not include advertising or other dealer costs, and it also does not include optional equipment or the "destination charge".The destination charge and the dealer's markup are added to the base invoice price, to arrive at the "base retail price". MSRP or "List Price"On new cars, the "Manufacturer's Suggested Retail Price" or "List Price" is often shown. You should realize, however, that this is not a "fixed" price --dealers can sell their cars at the price they determine! Obviously, you'll be in a better position to negotiate a price if you know how much the dealer paid for the car...Holdbacks and rebatesAs we mentioned above, determining the dealer cost is not quite as simple as finding out the dealer invoice price. This is because of holdbacks and rebates.Holdbacks are discounts or incentives (often 1-3% of MSRP) given to dealers by manufacturers, to help dealers finance their inventory. If dealers can sell cars quickly, a large part of the holdback simply becomes additional profit! Rebates are discounts or incentives that dealers are supposed to pass on to their customers; they are meant to stimulate sales. New car prices revisitedThe "magic formula" for determining true dealer cost is therefore:So there you have it. While you may not be able to know each of the components exactly, being aware of their existence and meaning could certainly help you negotiate a better deal on new car prices! Canadian car pricesFinally, we should mention that used and new car prices in Canada may differ significantly from U.S. car prices.
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