Most new car buyers pay somewhere in between the invoice price and MSRP (manufacturer suggested retail price).
Our dealer cost report suggests a fair margin for dealer profit. Our dealer cost report also includes an easy to understand worksheet to calculate a drive away price and will often recommend an Unhaggle certified dealer that is happy to work towards a price that works for the both of you.
So, how do you use the worksheet?
- Base Vehicle Price: this is the cost of the vehicle to the dealership and can be found at the top of the list of items
- Add: Option Invoice Price: if you would like to include any packages with your new vehicle, add the invoice price here. Dealer-installed accessories should be priced separately from the vehicle.
- Add: Dealer Profit: a fair dealer profit margin can lie anywhere from 3% to 7%. Unlike most vehicles, luxury vehicles will sit closer to the 7% margin.
- Add: Mandatory Fees: like the name states, these fees are mandatory and cannot be negotiated. They are set by the manufacturer and are the cost of shipping the vehicle to the dealership.
- Pre-Tax Total: add lines 1 - 4 to calculate your pre-tax total.
- Subtract: Incentives (Before Tax): incentives are subtracted before or after tax depending on the manufacturer. Your dealer cost report will indicate whether your incentives are to be subtracted before or after tax.
- Taxable Total: subtract line 6 from line 5
- Add: Sales Tax: multiply the total by your provincial sales tax
- Subtract: Incentives (After tax): incentives are subtracted before or after tax depending on the manufacturer. Your dealer cost report will indicate whether your incentives are to be subtracted before or after tax.
- Drive Away Price: this is a fair price you can expect to pay on your new vehicle! Please note that licensing fees are extra.