13 factors that go into the selling price of a new car

Why can't a dealer give a price for a car without having to visit the dealership?

What goes into pricing a vehicle?

Did you know that in the state of Ohio, there are laws restricting what car dealerships can advertise? There are many discounts you will never know about because NOT everyone is entitled to them. The best way to know for which incentives YOU qualify is to sit with a knowledgeable salesperson or finance manager. It's definitely worth your time. You don't want to pay more than you need to for your next new car.
 
1. MSRP stands for Manufacturer's Suggested Retail Price. The manufacturer selects the MSRP for each vehicle. Features and accessories that have been added at the factory will increase the MSRP.

2. The Car might look exactly the same and seem to have identical features as a different car, for a different price, but there are so many models, features, add-ons, and options that make prices very different even in the same model.  The first car I owned did not have cruise control. If I would have compared it to a car that had exactly the same features that did have cruise, the price would have been higher. There are hundreds of features on every car. The combinations are endless and can definitely effect MSRP.

3. Incentives are from the factory. They don't show on the buyer order but reduce the MSRP of a vehicle. Some dealers call incentives “dealer cash.”

4. Rebates/Cash Allowances – Are also from the factory; they reduce the MSRP of  a vehicle, are listed on the buyer's order and are taxable.

5. Your Credit/ your payment/your interest rate – take a look at our financing blog for more info. This won't change the actual price of the car, but over time, as interest is charged for a loan, depending on your interest rate, you are going to “pay” the bank for loaning you the money. This will definitely effect your monthly payment and your interest rate.

6. Active Military or those retired from the military with 20 years of service receive a discount.

7. Employees of Chrysler and those who have access to a “friends & family” discount are eligible for additional savings. 

8. Chrysler Supplier employees enjoy another 1% discount on top of other discounts for which they are eligible.

9. Loyal customers are often eligible for trade-in bonuses.  Right now, certain pre-owned Chrysler, Dodge, Jeep and Ram models are in demand so we are giving more trade-in value for those models.

10. Target Direct Mailing Lists increase interest in certain markets, if you live in one of these targeted areas, you are eligible for even more savings.

11.Tax varies in each county, but it's the same as any other sales tax, so if you know how much your sales tax is where you live, you can calculate it. It's 7% in Montgomery County, Ohio.


12.Title fees are generally about $50. They include 30 day tags, lien fees and title processing.

13. Fees for most dealerships are about $250. These fees are controlled by the state. They are documentary fees charged for processing paperwork.

When you add it all up, every dealer is going to have a similar system. Take time to find the car you want and the deal that works best for you.
 
A good deal = the price/payment the buyer can comfortably afford + the price the dealer can offer.

Now what do you think about visiting the dealer? We would love to help you find your best deal.