How New Car Price Quotes are Calculated for Getting the Best Bid

January 27, 2012

You may wonder why new car price quotes sometimes vary. There are several factors a car dealership considers when calculating the price for a new car. If you're shopping around for a new car, understanding how car prices are calculated can help you make an informed decision on which type of car or dealership best suits your needs.

Dealer Invoice

One of the main factors that affects the price is the new car invoice. Generally, new car dealerships will pay the same amount for a specific make and mode of car. The amount on the new car invoice is based on the MSRP, or Manufacturer's Suggested Retail Price, which also includes any added options or accessories of the car-automatic, sound system and air conditioning are some options. It is important to remember, however, that not all vehicles that look alike have the same quote.

Shipping Cost

Another factor that affects new car price quotes is the cost of shipping the car to the dealership. This is where the price of the car starts to vary for each dealership. The distance from the manufacturer can contribute to the cost of shipping as well as the service company that delivered the car. However, the shipping cost is not so significant that it will greatly alter the price of the MSRP.

Dealer Preparations

Once the new car arrives at a car dealership, some dealers will make some preparations prior to its sale. This is another added cost that is included in the calculation of the price quotes. Treatments or additional accessories or services added onto the new car will essentially be added onto the price.

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