Snack on this:
For the sweet spot target price of 30k based upon average customer affordability from census data, and average price roughly of new cars for sale.
Sample: you have the 2013 Toyota Avalon at $33,990 as retail price
Invoice of $30,671. so a 9.8% margin from invoice to dealer top price often negotiated 1/2 way to 5% margin.
Price you pay is $32,330
Through the WD discount method:
So the discount formula is
DRP = Retail Price of Car
P = Profit for Dealer
N = Discount percentage
PA = Price of car at auction
CSP = Customer Sales Price = ( N * DRP )
P + PA = Weekend Drives Dealer Invoice
DRP - P - ( N * DRP ) = PA
N = ( DRP - Invoice ) / DRP
Invoice = DRP - ( DRP * N )
Example DRP = $33,990
Assumption: Clean Title, Clean Car Fax, Excellent Condition as measured by KBB
25% discount ( lowest for viability )
Invoice = $25,500
Discount = $8,500
Thats alot of mac n cheese.
35% discount ( Mid Range )
Invoice = $22,100
Discount = $11,990
Thats alot of dinners or dates hehe
50% discount ( Pie in the Sky )
Invoice = $17,000
Discount = $17,000
Whaaaaat ?? Ha Ha
