How Are New Car Quotes Calculated

New car quotes may or may not present themselves as being calculated, but you can bet that they are. Dealers establish car quotes for customers that include a healthy profit margin. But some dealers don't stop there—car prices vary from shop to shop, and for some customers, it can be hard to tell how a dealer rep arrived at a number that seems unusually high.

The MSRP or Sticker Price?

Sticker price is used as a general marker, but it's not really how most dealers calculate price. They tend to rely more on what they paid for a vehicle, what it cost to ship it and get it ready for sale, and how much the buyer is willing to pay. This last factor is a big one, and customers who don't negotiate a price based on concrete factors often end up paying too much.

What Goes into Auto Quotes?

Dealer overhead and the cost of buying wholesale from the manufacturer both go into a car quote from a dealer. A new car quote can also be affected by the dealer's location, what kind of supply exists and how a car is rated by consumer magazines and other news sources. In order to get an auto quote near or higher than the MSRP, a dealer will often include warranties and other services with a sometimes hefty price tag.

In light of the above, getting the best deals requires going over an itemized car quote with the dealer to be sure you are getting a fair and equitable deal.