Nope, that calculator does conventional loans, leases, loans with customer cash and driver's options. You can see the payments for all 4 of the above and compare them to see which one makes the most sense.
I tried to cover all angles with that calculator, I hope I did.
I downloaded your spreadsheet and it does everything you say, but more in the terms of a finanacing calculator.
The one I linked above helps you figure out a reasonable OFFER to make on the vehicle of you choice. It takes into account MSRP, invoice, destination charges, floorplan fees, factory holdback, incentives, etc. It then allows you to calculate an offer that includes a reasonable profit for the dealer (you can enter a percentage.) Its nice to be able to break it down to actual DEALER COST.
I haven't gone to my dealer with such an offer just yet, but it seems like a great tool. Just wondering if anyone else had. I also wonder about the validity of factory holdback in the calculation as this is almost never mentioned anywhere in the process. Even on this forum.
Unless you are dealing with a highly undesireable vehicle, like a Ford Taurus, or vehicles they are trying to dump, like the current Jeep Grand Cherokee, you should not expect to get any piece of the holdback.
The holdback is generally money that the dealership has already earmarked for other purposes. In addition, unless you get a car literally as it is coming off the delivery truck, you won't have any way of knowing how long it has been on the lot and how much of its holdback money has already been used for other purposes.
I wouldn't presume to. However, it does figure into their profit, so it should be part of the calculation, right?
I personally don't like the calculator on the above website (not because I think mine is better or anything
Holdback is generally sacred and you should not mention it in negotiations. You can know it's there, but I would not bring it up. Some manufacturer's holdback is not listed on Edmunds, some are, but it's definetely not as widely available as the invoice price. I guarantee you that the dealer will not like the fact that you are mentioning holdback to them at any given time. Also, just as VeeDubDriver mentioned, holdback is to cover flooring cots, ie. interest on the money tied up in the car while it's sitting on the dealer lot.
And if you look closely at that calculator it just adds in the 2% holdback then gives the dealer a 5% total profit. So instead of jumping through those hoops, you can just offer him 3% over invoice and get the same result. I think adding holdback to the equation and have all the other varialbes detailed out like that will make both you and the dealer frustrated.
It's a lot easier to have the dealer show you the actual invoice for the vehicle so local advertising, port prep and other regional fees are accounted for, and work from there. There is no need for a calculator to detail all that information out, the only way you will get these numbers from the dealer anyway, so by the time you know them, you'll be already sitting in their office. No need to drag the holdback into the situation unless the dealer claims that he's not making any money and is practically giving the car away for free.
Also, there are other bonuses on vehicles that dealers can get based on meeting their monthly objectives. Should you cut into that too? You can't even tell how much that is until the month is over.
It is one thing to get a fair deal, and completely different to try to suck the dealer dry. Mentioning holdback will make you sound cheap and you will not be treated the way you should be.
Read the following thread, I kind of wrote out a step-by-step procedure to get a good deal on a new car purchase that makes it easy and no-hassle on both you and the dealer. http://forums.vwvortex.com/zerothread?id=1397922
Thanks for the well thought out reply. That is exactly what I was looking for - some idea of whether or not that was a legitimate tool.
The funny thing is, I called my dealer, who has been a straight shooter with me so far, about the car I was interested it. He volunteered an out the door price that was very close the same 3% over invoice you mentioned.
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