How to Calculate the Price of a Car

The price that a dealer pays for a new vehicle and the price you should pay to the dealer are two different numbers. To calculate the price that you should pay for the car, you first have to know the specific details of the features that the car has. You also need a copy of the factory invoice, which is not the Manufacturer's Suggested Retail Price (MSRP) sticker that the dealer sticks to the car, along with the added charges the dealer puts on the sticker price.

Instructions

1

Identify the manufacturer's invoice price for the car. You can obtain copies of the manufacturer invoice for the car you are pricing on various automobile information websites. To find the invoice with the correct pricing, you need to input the features on the car, such as number of doors, sunroof, navigation system and alarm system. The invoice lists the base price of the car and then itemizes and adds the cost for each of the additional features.

2

Subtract the holdback charge from the manufacturer's invoice from the total price on the invoice. This is a fee that the dealership pays upfront to get the car on its lot, but that is reimbursed once the dealership sells the car. You should subtract the holdback fee since it is not a lost cost for the dealer.

3

Subtract the floor-plan or dealer floor assistance from the manufacturer's invoice. The same holds true for the floor-plan fee as for the holdback charge. Since the dealer gets a reimbursement of this fee from the manufacturer when they sell the car to you, subtract this fee from the price of the car when calculating what you should pay.