How to Calculate the Price a Dealership Pays for a New Car

Thanks to the Internet, new-car dealer cost is no longer a mystery or a secret. In fact, you can find out exactly how much a dealer paid for a car--also known as invoice pricing--just by visiting the Edmunds website. Doing so gives you more negotiating power, helping to ensure you make neither too low nor too high of an offer. Determine the invoice amount for the new car you intend to purchase, and make sure that you are calculating the correct price based on the options that you want.

Instructions

MSRP Pricing

1

Go to the manufacturer's website to price out your new car. Going directly the manufacturer's website allows you to virtually build your vehicle with the options you want. This way, you are sure to look up the correct invoice amount.

2

Click on "Build a Vehicle," or an option labeled similarly from the manufacturer's website. Read about standard vehicle options and change models levels, if necessary.

3

Choose your vehicle packages. For example, navigation, leather or heated seats are commonly available for new cars. Notice that adding some packages may require you to purchase others. On some models, for example, you cannot add navigation without choosing the top-of-the-line model with leather and a sunroof.

4

Write down or print your finished product information with all options included. Keep the information handy for when you look up invoice pricing.

Invoice Pricing

5

Go to the Edmunds website to access the True Market Value tool. Choose the year, make and model of the vehicle you want. Click "Go."

6

Choose the model level. Many manufacturer's offer several. Reference your MSRP information with the vehicle details, if necessary. Pay attention to the transmission options and choose the correct one (automatic or manual) for the level you want.

7

Click "Price with Options" from the next page to continue adding the options you found on the manufacturer's Web page.

8

Click any options from the list that you want to add. Although the Edmunds website does not prompt you to add additional manufacturer-required packages, you should have your information handy to ensure you select all necessary options (see Section 1).

9

Choose your color from the drop-down menu at the end of the options section. Click on "TMV Pricing Report" to review invoice pricing. This is what the dealer paid for the vehicle.