Calculating Sales Tax for a New Car Purchase With a Trade-In #car #leasing #uk


#trade in cars
#

Calculating Sales Tax for a New Car Purchase With a Trade-In

Your car sales contract will break down how tax is calculated.

Stockbyte/Stockbyte/Getty Images

More Articles

In 42 out of the 50 states, when you trade in a car to purchase a new one, you will get some sort of sales tax credit on the value of your trade. The amount of tax you pay depends on what you are buying, what your trade is worth and your state’s sales tax policies. The dealer will calculate and collect the sales tax, but it does not hurt to check the dealer’s numbers.

Tax on Net Cost

Across most of the country, the sales tax you pay on a car purchase at the dealership will be the sales tax rate times the difference between the purchase price and trade-in allowance. The new car cost and trade value will come off the sales contract for the car deal. For example, if you are buying a new car for $25,000 and the dealer is giving you $10,000 for your trade, you will pay sales tax on the $15,000 difference. If sales tax in your state is 8 percent, the tax would be $1,200. Without the trade value sales tax on the purchase increases to $2,000.

Sales Tax Considerations

States handle the sales tax rate on car purchases differently from state to state. In some areas, the sales tax rate you pay is the rate in effect where the dealer is located. Other states require that the rate be based on your home address tax jurisdiction. The sales tax will be the same whether you pay cash or finance the purchase with a regular car loan. In most states you do not pay sales tax and do not get a tax credit on your trade-in if you lease the new car.

Trade-in Value Increase

Another way to view the sales tax reduction from trading a car — and a favorite view of car dealers — is that the reduced sales tax can be equated to a higher value for your trade-in. If the dealer gives you $10,000 for your trade and trading the car reduces your sales tax bill by $800, you are in effect receiving $10,800 for the car you are trading. If you sold the car on your own, you would not receive the sales tax savings, so would have to sell the car for more than $10,800 to come out ahead of going the trade-in route.

States without Tax Benefit


Collision Consulting calculating Diminished Value of a vehicle #car #lift


#value of vehicle
#

Calculating Diminished Value

Inherent Diminished Value assessments can be secured from several different sources. While Inherent DV is present in all vehicles that have been involved in a collision and subsequently repaired, and is usually the easiest to document, it is also generally only half the complete DV equation. There are several factors which affect the amount of Inherent DV, including but not limited to: the year, make and model, mileage, the overall condition of the vehicle prior to the loss, the amount of damage, the type of damage, the extent of the damage, and the damage area.

Repair Related Diminished Value can only be assessed through an inspection of the vehicle by a qualified post-repair inspector.

Consumers could rely on the insurance company to calculate this loss, but if insurance reps aren’t honest enough to tell someone of their right to file a DV claim in the first place, can they really be trusted to fairly and equitably assess this loss? When pressed to calculate DV, insurers often use a method known in the industry as “17c”. This formula basically maximizes the loss of value at 10% of the vehicle’s pre-loss value. For examples of how the 17c formula works, and to view the actual formula, CLICK HERE .

Dealerships are one of the most common sources of DV assessments. While this is possibly the easiest and fastest way to get a price for the value of an automobile, it is rarely the most accurate. Typically, a dealership gives a number that they roughly figure a vehicle would be worth on trade-in. This doesn’t address the “fair market value” of the automobile. If not based on trade in value, the numbers supplied by dealerships are frequently based on the wholesale market. Disclosure laws apply to dealerships as well as individuals. Most dealers wouldn’t jeopardize their reputation by having vehicles that had major damage on their lot. Used automobiles that had extensive damage are usually taken to a wholesale auction, where it brings even less than it would in the public market. Insurance companies know this and use this fact to discredit dealership figures. Another problem with the numbers supplied by dealerships is that they often won’t put their offers in writing.

A recent trend is for “independent appraisers” to offer DV assessments. By nature, the vast majority of “independent appraisers” could more properly be labeled “independent INSURANCE appraisers” – meaning they derive the majority of their income from doing insurance-based work for insurance companies. How unbiased would their DV assessment be? Would they risk upsetting their primary source of income?

Yet another recent development is for internet resources to offer diminished value assessments. The price for these services can be very tempting – as low as $49 in some cases. First, the old adage “you get what you pay for” definitely applies. In most cases, $49, $59 or even $99 buys the consumer a piece of paper, no support no follow-up, nothing but a piece of paper with vague numbers on it. Worse still, is that many of these sources use a variation of the 17c formula. Why would anyone pay a fee to get what they would have gotten anyway?

Other internet sources charge a fee based on the amount of the settlement. They really don’t care about the consumer’s loss, they simply take what the insurance company offers, collect their portion, and pass the balance on to the consumer. While this may be more convenient than dealing with the insurance company, the results are rarely satisfactory.

If you chose one of these “alternative” resources – remember: WE TOLD YOU SO!

The best method of acquiring an unbiased DV assessment is to go to a Diminished Value professional.

*** Please Note: ***

Repair Related DV . Repair Related DV can only be assessed through a comprehensive examination of the vehicle and thorough review of the claim paperwork, including the insurance estimate, invoice for the repairs, etc. This involves arranging to have an expert inspect the automobile. Generally, this inspection exposes damage not noticed by the vehicle owner, revealing items that could become a problem if left unaddressed and frequently reveals potential fraud.

Collision Consulting provides a level of service that is second to none!

Regardless of which service Collision Consulting provides, we pledge our assistance throughout the entire process. While we cannot represent consumers or act on their behalf (to do so could be construed as unlicensed practice of law), we will provide support, documentation and research until the issue is settled to your satisfaction. None of our competitors offer this level of ongoing support.

How to Collect Your Diminished Value Claim


Collision Consulting calculating Diminished Value of a vehicle #car #window #repair


#value of vehicle
#

Calculating Diminished Value

Inherent Diminished Value assessments can be secured from several different sources. While Inherent DV is present in all vehicles that have been involved in a collision and subsequently repaired, and is usually the easiest to document, it is also generally only half the complete DV equation. There are several factors which affect the amount of Inherent DV, including but not limited to: the year, make and model, mileage, the overall condition of the vehicle prior to the loss, the amount of damage, the type of damage, the extent of the damage, and the damage area.

Repair Related Diminished Value can only be assessed through an inspection of the vehicle by a qualified post-repair inspector.

Consumers could rely on the insurance company to calculate this loss, but if insurance reps aren’t honest enough to tell someone of their right to file a DV claim in the first place, can they really be trusted to fairly and equitably assess this loss? When pressed to calculate DV, insurers often use a method known in the industry as “17c”. This formula basically maximizes the loss of value at 10% of the vehicle’s pre-loss value. For examples of how the 17c formula works, and to view the actual formula, CLICK HERE .

Dealerships are one of the most common sources of DV assessments. While this is possibly the easiest and fastest way to get a price for the value of an automobile, it is rarely the most accurate. Typically, a dealership gives a number that they roughly figure a vehicle would be worth on trade-in. This doesn’t address the “fair market value” of the automobile. If not based on trade in value, the numbers supplied by dealerships are frequently based on the wholesale market. Disclosure laws apply to dealerships as well as individuals. Most dealers wouldn’t jeopardize their reputation by having vehicles that had major damage on their lot. Used automobiles that had extensive damage are usually taken to a wholesale auction, where it brings even less than it would in the public market. Insurance companies know this and use this fact to discredit dealership figures. Another problem with the numbers supplied by dealerships is that they often won’t put their offers in writing.

A recent trend is for “independent appraisers” to offer DV assessments. By nature, the vast majority of “independent appraisers” could more properly be labeled “independent INSURANCE appraisers” – meaning they derive the majority of their income from doing insurance-based work for insurance companies. How unbiased would their DV assessment be? Would they risk upsetting their primary source of income?

Yet another recent development is for internet resources to offer diminished value assessments. The price for these services can be very tempting – as low as $49 in some cases. First, the old adage “you get what you pay for” definitely applies. In most cases, $49, $59 or even $99 buys the consumer a piece of paper, no support no follow-up, nothing but a piece of paper with vague numbers on it. Worse still, is that many of these sources use a variation of the 17c formula. Why would anyone pay a fee to get what they would have gotten anyway?

Other internet sources charge a fee based on the amount of the settlement. They really don’t care about the consumer’s loss, they simply take what the insurance company offers, collect their portion, and pass the balance on to the consumer. While this may be more convenient than dealing with the insurance company, the results are rarely satisfactory.

If you chose one of these “alternative” resources – remember: WE TOLD YOU SO!

The best method of acquiring an unbiased DV assessment is to go to a Diminished Value professional.

*** Please Note: ***

Repair Related DV . Repair Related DV can only be assessed through a comprehensive examination of the vehicle and thorough review of the claim paperwork, including the insurance estimate, invoice for the repairs, etc. This involves arranging to have an expert inspect the automobile. Generally, this inspection exposes damage not noticed by the vehicle owner, revealing items that could become a problem if left unaddressed and frequently reveals potential fraud.

Collision Consulting provides a level of service that is second to none!

Regardless of which service Collision Consulting provides, we pledge our assistance throughout the entire process. While we cannot represent consumers or act on their behalf (to do so could be construed as unlicensed practice of law), we will provide support, documentation and research until the issue is settled to your satisfaction. None of our competitors offer this level of ongoing support.

How to Collect Your Diminished Value Claim


Collision Consulting calculating Diminished Value of a vehicle #find #cars #for #sale


#value of vehicle
#

Calculating Diminished Value

Inherent Diminished Value assessments can be secured from several different sources. While Inherent DV is present in all vehicles that have been involved in a collision and subsequently repaired, and is usually the easiest to document, it is also generally only half the complete DV equation. There are several factors which affect the amount of Inherent DV, including but not limited to: the year, make and model, mileage, the overall condition of the vehicle prior to the loss, the amount of damage, the type of damage, the extent of the damage, and the damage area.

Repair Related Diminished Value can only be assessed through an inspection of the vehicle by a qualified post-repair inspector.

Consumers could rely on the insurance company to calculate this loss, but if insurance reps aren’t honest enough to tell someone of their right to file a DV claim in the first place, can they really be trusted to fairly and equitably assess this loss? When pressed to calculate DV, insurers often use a method known in the industry as “17c”. This formula basically maximizes the loss of value at 10% of the vehicle’s pre-loss value. For examples of how the 17c formula works, and to view the actual formula, CLICK HERE .

Dealerships are one of the most common sources of DV assessments. While this is possibly the easiest and fastest way to get a price for the value of an automobile, it is rarely the most accurate. Typically, a dealership gives a number that they roughly figure a vehicle would be worth on trade-in. This doesn’t address the “fair market value” of the automobile. If not based on trade in value, the numbers supplied by dealerships are frequently based on the wholesale market. Disclosure laws apply to dealerships as well as individuals. Most dealers wouldn’t jeopardize their reputation by having vehicles that had major damage on their lot. Used automobiles that had extensive damage are usually taken to a wholesale auction, where it brings even less than it would in the public market. Insurance companies know this and use this fact to discredit dealership figures. Another problem with the numbers supplied by dealerships is that they often won’t put their offers in writing.

A recent trend is for “independent appraisers” to offer DV assessments. By nature, the vast majority of “independent appraisers” could more properly be labeled “independent INSURANCE appraisers” – meaning they derive the majority of their income from doing insurance-based work for insurance companies. How unbiased would their DV assessment be? Would they risk upsetting their primary source of income?

Yet another recent development is for internet resources to offer diminished value assessments. The price for these services can be very tempting – as low as $49 in some cases. First, the old adage “you get what you pay for” definitely applies. In most cases, $49, $59 or even $99 buys the consumer a piece of paper, no support no follow-up, nothing but a piece of paper with vague numbers on it. Worse still, is that many of these sources use a variation of the 17c formula. Why would anyone pay a fee to get what they would have gotten anyway?

Other internet sources charge a fee based on the amount of the settlement. They really don’t care about the consumer’s loss, they simply take what the insurance company offers, collect their portion, and pass the balance on to the consumer. While this may be more convenient than dealing with the insurance company, the results are rarely satisfactory.

If you chose one of these “alternative” resources – remember: WE TOLD YOU SO!

The best method of acquiring an unbiased DV assessment is to go to a Diminished Value professional.

*** Please Note: ***

Repair Related DV . Repair Related DV can only be assessed through a comprehensive examination of the vehicle and thorough review of the claim paperwork, including the insurance estimate, invoice for the repairs, etc. This involves arranging to have an expert inspect the automobile. Generally, this inspection exposes damage not noticed by the vehicle owner, revealing items that could become a problem if left unaddressed and frequently reveals potential fraud.

Collision Consulting provides a level of service that is second to none!

Regardless of which service Collision Consulting provides, we pledge our assistance throughout the entire process. While we cannot represent consumers or act on their behalf (to do so could be construed as unlicensed practice of law), we will provide support, documentation and research until the issue is settled to your satisfaction. None of our competitors offer this level of ongoing support.

How to Collect Your Diminished Value Claim


Collision Consulting calculating Diminished Value of a vehicle #car #loans


#value of vehicle
#

Calculating Diminished Value

Inherent Diminished Value assessments can be secured from several different sources. While Inherent DV is present in all vehicles that have been involved in a collision and subsequently repaired, and is usually the easiest to document, it is also generally only half the complete DV equation. There are several factors which affect the amount of Inherent DV, including but not limited to: the year, make and model, mileage, the overall condition of the vehicle prior to the loss, the amount of damage, the type of damage, the extent of the damage, and the damage area.

Repair Related Diminished Value can only be assessed through an inspection of the vehicle by a qualified post-repair inspector.

Consumers could rely on the insurance company to calculate this loss, but if insurance reps aren’t honest enough to tell someone of their right to file a DV claim in the first place, can they really be trusted to fairly and equitably assess this loss? When pressed to calculate DV, insurers often use a method known in the industry as “17c”. This formula basically maximizes the loss of value at 10% of the vehicle’s pre-loss value. For examples of how the 17c formula works, and to view the actual formula, CLICK HERE .

Dealerships are one of the most common sources of DV assessments. While this is possibly the easiest and fastest way to get a price for the value of an automobile, it is rarely the most accurate. Typically, a dealership gives a number that they roughly figure a vehicle would be worth on trade-in. This doesn’t address the “fair market value” of the automobile. If not based on trade in value, the numbers supplied by dealerships are frequently based on the wholesale market. Disclosure laws apply to dealerships as well as individuals. Most dealers wouldn’t jeopardize their reputation by having vehicles that had major damage on their lot. Used automobiles that had extensive damage are usually taken to a wholesale auction, where it brings even less than it would in the public market. Insurance companies know this and use this fact to discredit dealership figures. Another problem with the numbers supplied by dealerships is that they often won’t put their offers in writing.

A recent trend is for “independent appraisers” to offer DV assessments. By nature, the vast majority of “independent appraisers” could more properly be labeled “independent INSURANCE appraisers” – meaning they derive the majority of their income from doing insurance-based work for insurance companies. How unbiased would their DV assessment be? Would they risk upsetting their primary source of income?

Yet another recent development is for internet resources to offer diminished value assessments. The price for these services can be very tempting – as low as $49 in some cases. First, the old adage “you get what you pay for” definitely applies. In most cases, $49, $59 or even $99 buys the consumer a piece of paper, no support no follow-up, nothing but a piece of paper with vague numbers on it. Worse still, is that many of these sources use a variation of the 17c formula. Why would anyone pay a fee to get what they would have gotten anyway?

Other internet sources charge a fee based on the amount of the settlement. They really don’t care about the consumer’s loss, they simply take what the insurance company offers, collect their portion, and pass the balance on to the consumer. While this may be more convenient than dealing with the insurance company, the results are rarely satisfactory.

If you chose one of these “alternative” resources – remember: WE TOLD YOU SO!

The best method of acquiring an unbiased DV assessment is to go to a Diminished Value professional.

*** Please Note: ***

Repair Related DV . Repair Related DV can only be assessed through a comprehensive examination of the vehicle and thorough review of the claim paperwork, including the insurance estimate, invoice for the repairs, etc. This involves arranging to have an expert inspect the automobile. Generally, this inspection exposes damage not noticed by the vehicle owner, revealing items that could become a problem if left unaddressed and frequently reveals potential fraud.

Collision Consulting provides a level of service that is second to none!

Regardless of which service Collision Consulting provides, we pledge our assistance throughout the entire process. While we cannot represent consumers or act on their behalf (to do so could be construed as unlicensed practice of law), we will provide support, documentation and research until the issue is settled to your satisfaction. None of our competitors offer this level of ongoing support.

How to Collect Your Diminished Value Claim


Calculating Sales Tax for a New Car Purchase With a Trade-In #classic #car #values


#trade in cars
#

Calculating Sales Tax for a New Car Purchase With a Trade-In

Your car sales contract will break down how tax is calculated.

Stockbyte/Stockbyte/Getty Images

More Articles

In 42 out of the 50 states, when you trade in a car to purchase a new one, you will get some sort of sales tax credit on the value of your trade. The amount of tax you pay depends on what you are buying, what your trade is worth and your state’s sales tax policies. The dealer will calculate and collect the sales tax, but it does not hurt to check the dealer’s numbers.

Tax on Net Cost

Across most of the country, the sales tax you pay on a car purchase at the dealership will be the sales tax rate times the difference between the purchase price and trade-in allowance. The new car cost and trade value will come off the sales contract for the car deal. For example, if you are buying a new car for $25,000 and the dealer is giving you $10,000 for your trade, you will pay sales tax on the $15,000 difference. If sales tax in your state is 8 percent, the tax would be $1,200. Without the trade value sales tax on the purchase increases to $2,000.

Sales Tax Considerations

States handle the sales tax rate on car purchases differently from state to state. In some areas, the sales tax rate you pay is the rate in effect where the dealer is located. Other states require that the rate be based on your home address tax jurisdiction. The sales tax will be the same whether you pay cash or finance the purchase with a regular car loan. In most states you do not pay sales tax and do not get a tax credit on your trade-in if you lease the new car.

Trade-in Value Increase

Another way to view the sales tax reduction from trading a car — and a favorite view of car dealers — is that the reduced sales tax can be equated to a higher value for your trade-in. If the dealer gives you $10,000 for your trade and trading the car reduces your sales tax bill by $800, you are in effect receiving $10,800 for the car you are trading. If you sold the car on your own, you would not receive the sales tax savings, so would have to sell the car for more than $10,800 to come out ahead of going the trade-in route.

States without Tax Benefit


Calculating a Car Payment #auto #show #detroit


#auto financing calculator
#

  • Access to the Internet
  • A simple scientific calculator
  • Procedure:

    In this lesson, students will choose a car from an Internet used car dealer and then calculate their monthly payment. To reach the service, have students type in the URL below for the autobytel.com Used Car Purchase Center

    http://www.autobytel.com/content/buy/UsedIndex.cfm?id=4

    Once they reach autobytel.com students will pass through several pages as they find the right car and the right price for them. When they have found their price, have them experiment with different interest rates and numbers of payments in the formula below.

    In this formula for a monthly payment, assume that there is no down payment and that the student must finance the entire price of the car. The formula has a principal, P, interest rate, r, and number of monthly payments, m.

    For example, a 3 year (36 month) loan of $15,000 at 7% interest would look like this:

    The payment for this car will be $463.16 per month.

    Have students write down the setup for first a 3 year and then a 4 year 7% loan, and enter it in the calculator. Next have them calulate a 3 year loan at 6%.

    The setup should be a step-by-step list of how the numbers and parentheses are to be entered into the calculator and which buttons must be pressed at which point. Warn them that the fraction bar is a grouping symbol and that parentheses are sometimes needed to separate the numerator and denominator of a complex fraction.

    Sites that list this lesson and ones like it:


    True Car Dealer Cost and Calculating Your Offer #what #is #my #car #worth


    #price of used cars
    #

    True Dealer’s Cost and Making Your Offer

    Last Modified: November 08, 2015 by Jeff Ostroff | Originally Published February 26, 2000

    CarBuyingTips.com will show you how to figure out how much the dealer paid for the car. To help do this, we will make use of some great free sites. I have also created a free Offer Spreadsheet that will calculate a fair offer for both you and the dealership. Once you fill it out you’ll be able to use it during your negotiations.

    How Much is Fair to Offer the Dealer?

    In order to calculate your offer, the first thing you have to do is find out how much they paid for the car. Then you will be able to offer them a deal that gives them a fair profit.

    Don’t just make up a number for the offer, make an educated offer based on the dealer’s actual cost. It will take some time and research so you must be patient.

    At the dealership, one of the first things you should do is ask them to show you the factory invoice for the car. If they refuse your request, I will show you how you can get the information online.

    Your Offer Should Be 3% – 5% Over Actual Cost

    To be fair for both sides, you should make an offer of 3% – 5% over the actual dealer’s cost, not above the invoice price. Dealerships will gladly accept a 5% profit. In fact, many dealers survive on 3%. I have done extensive research with auto industry insiders and have verified this to be true.

    Save with TrueCar Pricing


    Collision Consulting calculating Diminished Value of a vehicle #car #warranty


    #value of vehicle
    #

    Calculating Diminished Value

    Inherent Diminished Value assessments can be secured from several different sources. While Inherent DV is present in all vehicles that have been involved in a collision and subsequently repaired, and is usually the easiest to document, it is also generally only half the complete DV equation. There are several factors which affect the amount of Inherent DV, including but not limited to: the year, make and model, mileage, the overall condition of the vehicle prior to the loss, the amount of damage, the type of damage, the extent of the damage, and the damage area.

    Repair Related Diminished Value can only be assessed through an inspection of the vehicle by a qualified post-repair inspector.

    Consumers could rely on the insurance company to calculate this loss, but if insurance reps aren’t honest enough to tell someone of their right to file a DV claim in the first place, can they really be trusted to fairly and equitably assess this loss? When pressed to calculate DV, insurers often use a method known in the industry as “17c”. This formula basically maximizes the loss of value at 10% of the vehicle’s pre-loss value. For examples of how the 17c formula works, and to view the actual formula, CLICK HERE .

    Dealerships are one of the most common sources of DV assessments. While this is possibly the easiest and fastest way to get a price for the value of an automobile, it is rarely the most accurate. Typically, a dealership gives a number that they roughly figure a vehicle would be worth on trade-in. This doesn’t address the “fair market value” of the automobile. If not based on trade in value, the numbers supplied by dealerships are frequently based on the wholesale market. Disclosure laws apply to dealerships as well as individuals. Most dealers wouldn’t jeopardize their reputation by having vehicles that had major damage on their lot. Used automobiles that had extensive damage are usually taken to a wholesale auction, where it brings even less than it would in the public market. Insurance companies know this and use this fact to discredit dealership figures. Another problem with the numbers supplied by dealerships is that they often won’t put their offers in writing.

    A recent trend is for “independent appraisers” to offer DV assessments. By nature, the vast majority of “independent appraisers” could more properly be labeled “independent INSURANCE appraisers” – meaning they derive the majority of their income from doing insurance-based work for insurance companies. How unbiased would their DV assessment be? Would they risk upsetting their primary source of income?

    Yet another recent development is for internet resources to offer diminished value assessments. The price for these services can be very tempting – as low as $49 in some cases. First, the old adage “you get what you pay for” definitely applies. In most cases, $49, $59 or even $99 buys the consumer a piece of paper, no support no follow-up, nothing but a piece of paper with vague numbers on it. Worse still, is that many of these sources use a variation of the 17c formula. Why would anyone pay a fee to get what they would have gotten anyway?

    Other internet sources charge a fee based on the amount of the settlement. They really don’t care about the consumer’s loss, they simply take what the insurance company offers, collect their portion, and pass the balance on to the consumer. While this may be more convenient than dealing with the insurance company, the results are rarely satisfactory.

    If you chose one of these “alternative” resources – remember: WE TOLD YOU SO!

    The best method of acquiring an unbiased DV assessment is to go to a Diminished Value professional.

    *** Please Note: ***

    Repair Related DV . Repair Related DV can only be assessed through a comprehensive examination of the vehicle and thorough review of the claim paperwork, including the insurance estimate, invoice for the repairs, etc. This involves arranging to have an expert inspect the automobile. Generally, this inspection exposes damage not noticed by the vehicle owner, revealing items that could become a problem if left unaddressed and frequently reveals potential fraud.

    Collision Consulting provides a level of service that is second to none!

    Regardless of which service Collision Consulting provides, we pledge our assistance throughout the entire process. While we cannot represent consumers or act on their behalf (to do so could be construed as unlicensed practice of law), we will provide support, documentation and research until the issue is settled to your satisfaction. None of our competitors offer this level of ongoing support.

    How to Collect Your Diminished Value Claim


    True Car Dealer Cost and Calculating Your Offer


    #price of used cars
    #

    True Dealer’s Cost and Making Your Offer

    Last Modified: November 08, 2015 by Jeff Ostroff | Originally Published February 26, 2000

    CarBuyingTips.com will show you how to figure out how much the dealer paid for the car. To help do this, we will make use of some great free sites. I have also created a free Offer Spreadsheet that will calculate a fair offer for both you and the dealership. Once you fill it out you’ll be able to use it during your negotiations.

    How Much is Fair to Offer the Dealer?

    In order to calculate your offer, the first thing you have to do is find out how much they paid for the car. Then you will be able to offer them a deal that gives them a fair profit.

    Don’t just make up a number for the offer, make an educated offer based on the dealer’s actual cost. It will take some time and research so you must be patient.

    At the dealership, one of the first things you should do is ask them to show you the factory invoice for the car. If they refuse your request, I will show you how you can get the information online.

    Your Offer Should Be 3% – 5% Over Actual Cost

    To be fair for both sides, you should make an offer of 3% – 5% over the actual dealer’s cost, not above the invoice price. Dealerships will gladly accept a 5% profit. In fact, many dealers survive on 3%. I have done extensive research with auto industry insiders and have verified this to be true.

    Save with TrueCar Pricing