What Factors Determine New Car Prices?

Factors that determine new car prices include features, make, model, additional dealer mark up and dealer-installed options. The price of a new car can also vary according to the invoice price, base price, Manufacturer's Suggested Retail Price and the dealer sticker price.

Car websites and publications can be used to learn the most up-to-date prices on new cars, their options and dealer's costs. Consumers can compare costs by contacting broker-buying services and car-buying services. An individual can also attempt to bargain for a new car. A dealer is often willing to bargain between 10 and 20 percent of his profit margin. A consumer might be able to get a good deal if he indicates he may consider ordering his new car if he doesn't see his chosen automobile make and model on the lot.

Consumers should also consider financing options before deciding on a new car. Dealer financing usually isn't the most affordable option, and consumers should compare the annual percentage and length of the loan before making a final decision. There may be times where a dealer is willing to offer low financing for a specific model and make of car, but the buyer may have to agree to put down a substantial down payment to take advantage of the low financing.