Understanding What's Behind an SUV Price Tag

If you are shopping for a new SUV, you want to find the lowest SUV price available. However, in order to find the best prices on SUVs, you need to understand how SUVs are priced and what is behind the price being offered by a particular dealership or online car shopping site.

The Dealer Invoice Price

The most important factor in the pricing of any new vehicle is the dealer invoice price. The dealer invoice prices the amount that a dealership pays to the vehicle manufacturer for a particular make and model vehicle.

The dealer invoice price is usually the same for all dealerships for an identical make and model vehicle. The manufacturer sets the dealer invoice price based on be based on a base amount for a particular vehicle plus the added cost of any accessories are options. Common options that increase the dealer invoice price of a vehicle are: air-conditioning, automatic transmissions, sunroofs and premium sound systems. There are many types of accessories are options that may be added by a manufacturer and all of them will increase the dealer invoice price.

Other SUV Pricing Factors

In addition, the dealer will also incur shipping costs for having the vehicle delivered from the manufacturer to the dealership site. Also, the dealer may choose to perform additional services on a vehicle such as pin striping or rustproof protection. These types of services also add to the investment cost a dealer incurs for a new SUV.

These factors are all considered when a dealership determines the selling price for a vehicle. Furthermore, you should be aware that all dealerships will attempt to make a profit above and beyond the cost for a vehicle. Therefore by knowing how much an issue because the dealership, you can negotiate a fair and low selling price.