1. What is the Edmunds Dealership Price Calculator?

The Edmunds Dealership Price Calculator helps determine the final dealer price by adding the Edmunds True Market Value (TMV) to the dealership's desired profit margin.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Edmunds\_TMV \) — Edmunds True Market Value in dollars
• \( Profit \) — Dealership's desired profit in dollars

Explanation: The equation provides a transparent way to understand how dealerships set their prices based on market value and profit targets.

3. Importance of Accurate Pricing

Details: Understanding dealer pricing helps consumers negotiate better deals and ensures fair market value for vehicles.

4. Using the Calculator

Tips: Enter the Edmunds TMV and desired dealership profit in dollars. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is Edmunds TMV?
A: Edmunds True Market Value is a pricing tool that shows what others are paying for the same vehicle in your area.

Q2: How much profit do dealerships typically make?
A: Profit margins vary but typically range from a few hundred to a few thousand dollars per vehicle.

Q3: Is this the final "out-the-door" price?
A: No, this is the base dealer price before taxes, fees, and any additional charges.

Q4: Can I negotiate below the TMV?
A: In some cases, yes - especially if the vehicle has been on the lot for a while or during end-of-month sales periods.

Q5: Does this account for dealer incentives?
A: No, manufacturer incentives to dealers are not reflected in this calculation.