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      09-29-2012, 12:57 PM   #20
Maloney's Avatar

Drives: 08 E92 M3 AW FR
Join Date: Jun 2010
Location: Pittsburgh, PA

iTrader: (1)

Originally Posted by fongpi
Originally Posted by mdosu View Post
for a pre-owned, they'll just lie to you, it's very opaque b/c they buy from different price points b/c each car is "unique" in a sense and has a story to it (trade in, lease return, auction). For new, they'll just give you their invoice price, and that's somewhat misleading b/c as I understand the business, dealers also get volume discounts and other incentives from manufacturers

You must be new to this business thing huh? Your price is based on supply and demand, not cost...
The formula to calculate COGS (Cost of Good Sold) is pretty simple and straightforward. The purpose of this exercise is to see the true profit margin, and to help me better identify a dealer which says that they are selling at a loss, when they really are not. I don't care about how the dealer came to their purchase price, as long as I find out what it cost them, in relation to what had cost me.
It's very simple to determine the YDKWTFYATA formula for posters. This acronym stands for "you don't know what the FCK you are talking about." If you truly want advice, the answer is no, the dealership will not provide you with this.

Use your budget, find which cars fit in the budget. Then breakdown the important factors. Year? low mileage? Comp package? No accidents? Options? Supercharger testing mule? Enthusiast owned or a lease by a company who's owner beat the piss out out it? Warranty?

After all that, you will determine fair market value. Since your buying used, there are plenty of comps you will see in the for sale section of this forum to determine prices by year.