Actual Price

1. Actual Price Of Gold
2. Actual Price List
3. Actual Price Definition
4. Actual Price Of Tesla Model 3

Understanding Purchase Price. Assume, for example, an investor buys 100 shares of Ford common stock on three different dates over a five-year period, including 100 shares purchased at a market. The Fair Market Range and Fair Purchase Price are based on massive amounts of data, including actual transactions - then adjusted for seasonal trends and local market conditions in over 100. Live gold prices are always updating, and can provide nearly instantaneous price information for the spot gold market. Live gold prices can also be depicted on charts. This provides investors a tool for identifying price trends in the gold market or for looking for specific areas of support and resistance to buy or sell at. Chapter 11 Lecture – Page 6 Same problem from previous page using shortcuts Let's make cheese: Standard to make a one package of cheese = 18 ounces of milk. $0.10 per ounce End of month – the company made 40,000 packages of cheese, purchased and used 760,000 ounces of milk, and spent $0.09 per ounce. Total spending was $68,400 AP: Actual Price SP: Standard Price AQP: Actual.

Calculator Use

Calculate the sale price you will pay for an item based on the type of discount in the sale promotion:

• Percent off list price
• Fraction off list price
• Multi-item discount

You can also compare discounts to find the lowest price for an item. Enter a percentage off price, fraction off price, multiple items for the price of one or other 'two-for' type discounts. Compare the final discounted price for each in the answer table.

Delete any pricing inputs you don't need for your calculations.

Sale Price Formulas and Calculations

Percent Off Price Formula

Discounted price = List price - (List price x (percentage / 100))

Example: Sale price is 25% off list price of $130

1. Convert 25% to a decimal by dividing by 100: 25/100 = 0.25
2. Multiply list price by decimal percent: 130*0.25 = 32.50
3. Subtract discount amount from list price: 130 - 32.50 = 97.50
4. With the formula:
   130 - (130*(25/100)) =
   130 - (130*0.25) =
   130 - 32.50 = 97.50
5. 25% off $130 is $97.50

Fraction Off Price Formula

Discounted price = List price - (List price x fraction)

Example: Sale price is 1/3 off list price of $120

1. Multiply list price by the fraction discount: 120*1/3 = 40
2. Subtract discount amount from list price: 120 - 40 = 80
3. With the formula:
   120 - (120*1/3) =
   120 - 40 = 80
4. 1/3 off $120 is $80

Multi-Item Discount Formula

Discounted price per item = (Number of items at list price x list price) / Number of items in discount deal

Example: Sale is 4 items for the price of 3. Regular list price is $20.

1. Multiply number of items at list price, by list price: 3*20 = 60
2. You are paying $60 and you'll get 4 items
3. The discount price for each item is 60/4 = $15
4. With the formula:
   (3*20) / 4 =
   60 /4 = 15
5. Buying 4 for 3 at $20 each means you'll spend $60 for 4 items; the per item discounted price is $15. If you compare to the non-discounted price of $20, you can save $5 per item with this multi-item discount sale.

Percent Of or Fraction Of Price

You may occasionally see sales promotions for 'Percent Of' or 'Fraction Of' list price. To do these calculations, simply multiply the list price by the discount to get the sale price. Examples:

Sale price is 80% of list price of $50

1. Convert 80% to decicmal by dividing by 100: 80/100 = 0.8
2. Multiply list price by decimal rate: $50*0.8 = $40.
3. Sale price is $40

Sale price is 2/3 of list price of $90

1. Multiply list price by 2/3: $90*2/3 = 180/3 = $60
2. Sale price is $60

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.

In This Chapter:

1. 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.

2. Your Offer Should Be 3% - 5% Over Actual Cost

Example: Sale is 4 items for the price of 3. Regular list price is $20.

1. Multiply number of items at list price, by list price: 3*20 = 60
2. You are paying $60 and you'll get 4 items
3. The discount price for each item is 60/4 = $15
4. With the formula:
   (3*20) / 4 =
   60 /4 = 15
5. Buying 4 for 3 at $20 each means you'll spend $60 for 4 items; the per item discounted price is $15. If you compare to the non-discounted price of $20, you can save $5 per item with this multi-item discount sale.

Percent Of or Fraction Of Price

You may occasionally see sales promotions for 'Percent Of' or 'Fraction Of' list price. To do these calculations, simply multiply the list price by the discount to get the sale price. Examples:

Sale price is 80% of list price of $50

1. Convert 80% to decicmal by dividing by 100: 80/100 = 0.8
2. Multiply list price by decimal rate: $50*0.8 = $40.
3. Sale price is $40

Sale price is 2/3 of list price of $90

1. Multiply list price by 2/3: $90*2/3 = 180/3 = $60
2. Sale price is $60

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.

In This Chapter:

1. 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.

2. 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.

You will find that a lot of dealers will charge dealer prep fees and advertising fees to offset their expenses. Meeting sales goals will also bring income to the dealership in the form of incentives from the manufacturer and these incentives further offset their costs.

Their bread and butter is taking advantage of uninformed buyers. Don't misunderstand me and think I'm saying that they shouldn't make any profit, I'm just saying that it needs to be fair. They make additional money from trade-ins, credit insurance, finance, accessories, extended warranties, rust proofing, etc.

3. How Much Did the Dealer Really Pay for the Car?

Actual Price Of Gold

Dealer Cost is Not the Factory Invoice Price!

The dealer's actual net cost of the car is usually much less, made up of 3 parts:

Actual Price List

Invoice Price - Factory Holdback - Factory To Dealer Incentives = Actual Cost

Magicians have nothing on car dealers when it comes to keeping secrets and how much they actually paid for the car is their most important secret. You'll hear a lot about the 'factory invoice' and the salesman will try to make you believe that it shows their true cost. Don't fall for this pitch because it's not correct. Knowing the true cost is your most powerful weapon when negotiating with the dealer.

4. CarBuyingTips.com Explains Factory Holdback

Dealers are charged a 'holdback' by the manufacturer. If you aren't shown how much it is you can estimate it as 3% of the invoice price minus destination and delivery for domestic cars, 2% for imports. The dealer gets the holdback from the factory after they sell the car. It will be subtracted when you calculate the true cost.

The exact calculation for the holdback varies by manufacturer. Some calculate it based on MSRP while other use the Invoice Price. It varies between 0% and 3% depending on the manufacturer.

5. Factory To Dealer Incentives Uncovered

There are hidden factory to dealer incentives built into the 'invoice price.' They can be huge and they reduce the dealer's effective cost of the car.

Do not confuse these with factory to consumer incentives (better know as rebates). Rebates are paid by the factory to you or they are subtracted from the final price. The rebate amount should be subtracted after the price is agreed upon.

6. The Factory Invoice Explained

The factory invoice lists the base model of the car, all option packages, floor mats, body trims and destination charge. For most manufacturers it will list the holdback (sometimes it is abbreviated as H/B or something similar). If the holdback isn't listed then estimate it. To make sure the one the salesman shows you is real, compare the numbers with your research. Make sure not to confuse the MSRP on the window sticker with the 'invoice' price!

Note for Honda Buyers: To maximize dealer profit, Honda options are installed at the dealer. Unfortunately this makes it impossible to lookup the cost of these options. Use Toyota's option pricing as a 'competitive guide' for negotiating.

Invoice Price is the Amount the Dealer Paid not the Cost

This can get somewhat confusing so the best way to understand it is to think of it like a rebate you get from a product. If you buy something for $39 and send in a $10 rebate form, you 'paid' $39 but it only 'cost' you $29.

7. Where to Find Invoice Prices and Secret Incentives

I recommend that you get the Fighting Chance package. They have the most up to date and accurate information for invoice prices and secret incentives. They charge $59.95 for the first vehicle and $15 for each additional vehicle. The package is well worth the cost especially since they will also give you a 'coach' to help you through the process if needed.

TrueCar will show you the invoice price for the complete configuration on their TrueCar Curve. To see the invoice price and MSRP for individual options, you will have to click the link near the top of the page. To make it easier to see where to look and click, we have circled both areas in red on the image below. While you are there, you can see the TrueCar price and use their service to get a guaranteed quote.

TrueCar also offers this information at no charge but it isn't always as accurate or up to date. Most of the services in our chapter 'How to Buy a New Car on the Internet' like Edmunds and Cars.com offers this information at no charge but it isn't always as accurate or up to date. At CarBuyingTips.com we always tell you to keep the old saying in mind, 'you get what you pay for.'

8. Calculating Your Offer

You will offer 3% - 5% above the dealer's true cost. Do not include destination charges or any fees when you add this amount. I have created a spreadsheet that will do all the calculations for you. Click here to download our free Offer Spreadsheet.

Offer Calculation Example

Actual Price Definition

• Example Invoice = $19,922
• Example Holdback = $597 (3% of Invoice)
• Example MSRP = $22,385
• Example Destination Charge = $995
• Example Secret Factory to Dealer Incentive = $500
• Example Customer Rebate = $1,000

Note: If you got the invoice price from the actual invoice instead of looking it up online you will need to subtract the destination charge as well.

Actual Price Of Tesla Model 3

• Your Offer = $18,825 (Actual Cost) + $941 (5% of Actual Cost) = $19,766
  - or -
  simply $18,825 x 1.05 = $19,766
• Now you add the $995 destination charge (which is a legitimate charge) and you get $20,761.
• Don't forget to subtract the $1,000 rebate. This is an incentive for you and does not effect the dealer's profit. Your final price should be $19,761.
• These calculations are all before tax and registration.
• This is a very fair offer that gives the dealer a 5% profit.