How to Find the True Price of a New Car

Buying a new car can be very stressful if you don't know where your money is going. You need to know whether you're getting a good deal and be knowledgeable on the difference between optional and mandatory charges. Dealerships charge more than the the original factory price. If they didn't they wouldn't be able to pay their employees, utilities, advertisement fees or taxes. Explore what you can afford to pay a dealership for not only your new car but their customer service.

Instructions

1

Locate the price sticker. This sticker is commonly located on the window of the vehicle. The sticker has all the information you need to make a knowledgeable decision about a particular vehicle.

2

Look for the MSRP (manufacturer's suggested retail price). This is the price at which the manufacturer feels it should sell; the dealership can decrease or increase the price at its discretion. The information is provided for you to know exactly how much the car's price has increased after other fees are added.

3

Look for the destination price. This is the fee the dealer was charged to get the car to their lot.

4

Read the features that have been added to the vehicle such as sun-roofs, compact disc changers, leather seats, etc. You will be charged in addition to the MSRP for these extra items.

5

Decide if you'll need an extended service contract. This is an optional fee you will pay to have routine services outside of those included in your warranty for an extended period of time. Again, this is another fee you'll be adding to the MSRP.

6

Find the amount posted as "Dealer Invoice Price." This is the price at which the dealer purchased the car from the manufacturer. Sometimes the manufacturer gives the dealer rebates and discounts so dealer has greater potential to make a profit.

7

Ask the dealer if you will get a factory rebate. It's always a plus if the benefits that the manufacturer passes to the dealer pass on to you.

8

Step 8: Do the math. When you've recorded all these fees, added them to the MSRP and subtracted rebates, you'll know exactly how much you're paying over the suggested retail price.