How to figure Dealer's cost with just a window sticker.

[Miq Millman]

I have been using this method for a couple of years and I usually get really
good numbers (within $5 last negotiation). Here's what I do:

Take a window sticker of a vehicle with the options I want and jot down the
base cost and all the option costs (or package costs if any).

Multiple the base cost by .85 and the options by .75 and come out with the
"invoice" price. Add $35 for documentation, and about $175 per $10,000 cost
of the vehicle. Add any amount you want for dealer profit.

Simple.

Here's an example (numbers made up btw):

Chevy Blazer 4 door, 2 wheel drive $16472
automatic $ 810
a/c $ 915
tilt wheel package $ 230
electric window package $ 390
no radio $ 95 -
roof rack $ 190

total sitcker price $18912
add dealer's markup $ 2500
revised total $21412

Now the dealer adds documentation, destination charges, license fees, tax
(7 1/4 here), and advertising for a whopping out the door cost of:
$23529.40

But what's this really cost him? Oh you don't have your Edmund's handy?

try out the previous mentioned method and get:
new figures - base $14001.20
all options $ 1830

"invoice" price $15831
add $500 dealer profit $16331
add 7 1/4 % tax $17515
add $365 documentation and license $17880

Now offer the sales slime $17880 for the above mentioned car and watch his eyes
bug out as he asks you how you got that number.

This method also works with just taking the fugure pre dealer markup and just
multiplying it by .85 for cars with higher demand.

--
"Mister! Hey mister! You lights are popped up, but they aren't on!"
"Huh? Oh gee thanks...<sigh>"
An ignorant good samaritan and me in my Bugeye
Miq Millman -- m...@sgi.com or {decwrl,pyramid,ucbvax}!sgi!miq 415 335 1041

[Martin O'Donnell]

In article <1990Sep5.0...@odin.corp.sgi.com> m...@chromavac.csd.sgi.com (Miq Millman) writes:
>I have been using this method for a couple of years and I usually get really
>good numbers (within $5 last negotiation). Here's what I do:
>
>Take a window sticker of a vehicle with the options I want and jot down the
>base cost and all the option costs (or package costs if any).
>
>Multiple the base cost by .85 and the options by .75 and come out with the
>"invoice" price. Add $35 for documentation, and about $175 per $10,000 cost

Be aware that these constants are not the same from manufacturer to
manufacterer and even model to model. For example, the base car/options
factors for a '91 Escort are .927/.85 for the Pony model and .90/.85 for
all other Escort (sub-)models. For all Mercedes, the factors are .80/.80.

In at least one instance, there is no mark-up for an option ('90 Jetta
ABS).

Also, for american makes, dealer invoice is not what the dealer really pays.
GM gives dealers back 3% of list, Ford and ChryCo 2.5%.

There's a great book out that has this and other useful information: "Don't
Get Taken Every Time" by Remar Sutton.

Marty O'Donnell