'Evening all,

Can anyone tell me how you calculate, or what is cost price in relation to the purchase of a new car?

Thanks a bunch.

:)

IIRC cost price is the cost of that car to the dealer rather than you the end user. Usually quiet a bit cheaper than what we pay.

IIRC cost price is the cost of that car to the dealer rather than you the end user. Usually quiet a bit cheaper than what we pay.

Tis very true, cost 'v' selling price varies between makes of car; they have a margin built into them which may be quite low on certain makes but is then compensated by dealer bonuses, which can become quite complicated, so it's not necessarily an easy calculation.

Which make of vehicle were you looking at or is that a silly question?

Is that the same as the recommended basic price, less any taxation or profit?

Is that the same as the recommended basic price, less any taxation or profit?

Will include taxation but probably not profit. Best bet would be to speak to the dealer in question about their specific cost price (assuming you're asking because you got the same letter through from a dealer as I have)...

Rob.

Cost price is what the dealer pays Skoda for the car, ask the dealer to show you the Invoice, some will However they are probably on some form of Bonus if they meet a target set by Skoda, usualy selling a certain number of a specific model in a month then Skoda send them a cheque !!

Similar thing happens with company cars, If your company runs one make of cars they might get a kick back off the manufacturer, it dosent matter if the buy the car or lease it or even who they get it from, as long as they can prove to say vauxhall they have taken delivery of a certain number of new vauxhalls in a year Vauxhall send the company a cheque direct.

Nothing is ever what it seems

Will include taxation but probably not profit. Best bet would be to speak to the dealer in question about their specific cost price (assuming you're asking because you got the same letter through from a dealer as I have)...

Rob.

Ah , another dealer doing new cars at cost for a while

I got mine on a similar offer and paid about 9% less than list.

When they had run it the time before they were displaying their invoices from the factory and that confirmed that the figures are genuine.

"Cost price" is not that much lower than what you would think. Maybe 10% if that.

Dealers get there money from hitting targets, reaching agreements and after sales services (fitting, servicing and repairs) not from a cars mark up.

"Cost price" is not that much lower than what you would think. Maybe 10% if that.

Dealers get there money from hitting targets' date=' reaching agreements and after sales services (fitting, servicing and repairs) not from a cars mark up.[/quote']

But the volume bonuses are all taken into account when calculating the physical cost of the vehicle to the dealer and as to how much margin there actually is in the specific vehicle that they are selling. This then dictates how much they can 'give off' the vehicle and also how much they can subsequently allow for any part-exchange.

I think you would be quite shocked in what % margin some brands of car have

yep your right I was more talking about the "invoice cost price" rather than the cost price after insentives etc.

And again you right some models do have very good discounts Shame I couldn't get a deal on the type R when I was at Honda :(

12% IIRC on Skodas.