New Car Quote Example
In the following paragraphs we shall provide you with an example of this method in practice just to give you a feel for the type of money you could save by generating your own new car quote. Just as a reminder, here is a brief description of the different costs to consider once more:
- Invoice Price- how much the dealer paid the manufacturer for the car (supposedly).
- MSRP- Manufacturer’s Suggested Retail Price.
- Incentive- discount the dealer may have received on the invoice price.
- TMV- True Market Value (what other people are paying for the car).
You want to buy a car (for example a new Chrysler Ypsilon) which has a invoice price of £12,379, a MRSP of £14,270 and the dealer has a factory incentive of £320. You can now subtract £320 from £12,379 which will give you the dealers actual buying cost; £12,059. Now if you are feeling lucky you can open negotiations with this figure, however you will probably be unsuccessful. More realistically you can add 5% to this figure which would give you £12,663 leaving the dealer £603 pounds profit and saving you over £1,600 off the MSRP. Even if you add 10% making the price £13,265 you will still be saving over £1,000 pounds off the MSRP. Alternatively you can just take the dealers actual buying cost (£12,059) and the MSRP (£14,270) and split the difference down the middle, leaving you with a final target price of £13,164. Let the dealer know your methods and reasoning and it will be harder to argue with, for you can no longer be seen to be making unreasonable unrealistic demands.
You can also find out the True Market Value of most cars on a number of websites, this value will also act as an indication of what price you should be paying (as a maximum).
There you go then, you now know how to make a quote of your own which will help you determine whether or not any third party quotes are worth following up or not, and whether you think you can do better.