{"id":4646,"date":"2026-11-11T21:39:35","date_gmt":"2026-11-11T21:39:35","guid":{"rendered":"https:\/\/invoice-pricing.com\/cars\/?post_type=buying-tip&#038;p=4646"},"modified":"2026-11-11T21:39:35","modified_gmt":"2026-11-11T21:39:35","slug":"how-a-new-car-price-is-built","status":"publish","type":"buying-tip","link":"https:\/\/invoice-pricing.com\/cars\/buying-tip\/how-a-new-car-price-is-built\/","title":{"rendered":"How Is a New Car&#8217;s Price Built?"},"content":{"rendered":"\n<div id=\"ip-pm\">\n<style>\n#ip-pm *, #ip-pm *::before, #ip-pm *::after { box-sizing: border-box; }\n\n#ip-pm {\n  --brand:         #0696bf;\n  --brand-dark:    #056d8a;\n  --brand-light:   #e0f5fb;\n  --brand-border:  #b3e2f0;\n  --navy:          #1a2d3d;\n  --ink:           #212529;\n  --muted:         #5d6b7a;\n  --soft:          #f4f8fb;\n  --border:        #dbe5f0;\n  --white:         #ffffff;\n  --danger-bg:     #fff1f1;\n  --danger-border: #ffd1d1;\n  --danger:        #df3b3b;\n  --gold-bg:       #fff8e6;\n  --gold-border:   #ffe0a3;\n  --gold:          #db9700;\n  --r:             20px;\n  --r-sm:          12px;\n  --shadow:        0 16px 44px rgba(6,150,191,.13);\n  font-family: 'Montserrat', 'Open Sans', sans-serif;\n  font-size: 16px;\n  color: var(--ink);\n  line-height: 1.6;\n  display: block;\n  width: 100%;\n  max-width: 100%;\n  overflow-x: hidden;\n  position: relative;\n}\n\n#ip-pm .hero,\n#ip-pm .trust-bar,\n#ip-pm .sec {\n  display: block;\n  width: 100%;\n  max-width: 100%;\n  overflow: hidden;\n}\n\n#ip-pm a { text-decoration: none; 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}\n#ip-pm .hero .quick-answer { color: var(--ink); }\n#ip-pm .hero .quick-answer p { color: var(--ink); font-size: 16px; }\n#ip-pm .ip-form { display: grid; gap: 12px; margin-top: 14px; }\n#ip-pm .ip-form label { display: block; font-weight: 700; font-size: 14px; color: var(--navy); }\n#ip-pm .ip-form select { display: block; width: 100%; height: 48px; margin-top: 6px; padding: 0 12px; border: 1px solid #9ca3af;\n  border-radius: 10px; background: #fff; color: var(--ink); font-family: 'Montserrat', sans-serif; font-size: 16px; }\n#ip-pm .ip-form .btn { width: 100%; }\n#ip-pm .cite { font-size: 13px; color: var(--muted); margin: 8px 0 0; }\n#ip-pm .cite a, #ip-pm .sources a, #ip-pm .related a { color: #057a9c; text-decoration: underline; }\n#ip-pm .price-row span { flex: 1; min-width: 0; }\n#ip-pm .price-row small { display: block; font-weight: 500; font-size: 13px; color: var(--muted); }\n#ip-pm .sources ol, #ip-pm .related ul { padding-left: 20px; font-size: 15px; }\n\/* Phones: keep the Quick Answer and the form button on the first screen (Article writing rules,\n   structure items 2 and 3). The card heading says what the form does, so its intro is hidden. *\/\n@media (max-width: 640px) {\n  #ip-pm .hero { padding: 10px 0 14px; }\n  #ip-pm .hero .eyebrow, #ip-pm .hero-card > p { display: none; }\n  #ip-pm .hero-grid { gap: 10px; }\n  #ip-pm .hero .quick-answer { padding: 12px 14px; }\n  #ip-pm .hero .quick-answer .mini-label { margin-bottom: 4px; }\n  #ip-pm .hero .quick-answer p { font-size: 15px; line-height: 1.45; }\n  #ip-pm .hero-card { padding: 12px 14px 14px; }\n  #ip-pm .ip-form { margin-top: 0; gap: 10px; }\n  \/* The menu reads \"Select make\" and the button says what it does, so the card heading and the\n     label are hidden visually but kept for screen readers. *\/\n  #ip-pm .hero-card h2, #ip-pm .ip-form .lbl { position: absolute; width: 1px; height: 1px; overflow: hidden; clip: rect(0 0 0 0); white-space: nowrap; }\n  #ip-pm .ip-form select { margin-top: 0; }\n}\n<\/style>\n<section class=\"hero\"><div class=\"w\"><div class=\"hero-grid\">\n<div class=\"hero-copy\">\n  <div class=\"eyebrow\">Buying Guide<\/div>\n  <div class=\"quick-answer\"><span class=\"mini-label\">Quick Answer<\/span><p>A new car&#x27;s price is a stack. The manufacturer sets a base price, options and the destination charge are added to reach the sticker total, and the invoice price sits below that. The dealer&#x27;s real cost sits lower again. What you actually pay is the negotiated selling price plus taxes, registration, dealer fees and any add-ons: the out-the-door price.<\/p><\/div>\n<\/div>\n<div class=\"hero-card\">\n  <h2>Get dealer prices<\/h2>\n  <p>Pick your make. On the next page you choose the model and trim, enter your ZIP and pick which local dealers get your request.<\/p>\n  <form class=\"ip-form\" action=\"https:\/\/invoice-pricing.com\/secure\/app1.cfm\" method=\"get\">\n    <input type=\"hidden\" name=\"engine\" value=\"organic\">\n    <label><span class=\"lbl\">Make<\/span><select name=\"make\" required><option value=\"\">Select make<\/option><option value=\"1\">Acura<\/option><option value=\"43\">Alfa Romeo<\/option><option value=\"4\">Audi<\/option><option value=\"5\">BMW<\/option><option value=\"6\">Buick<\/option><option value=\"7\">Cadillac<\/option><option value=\"8\">Chevrolet<\/option><option value=\"9\">Chrysler<\/option><option value=\"11\">Dodge<\/option><option value=\"59\">FIAT<\/option><option value=\"13\">Ford<\/option><option value=\"62\">Genesis<\/option><option value=\"15\">GMC<\/option><option value=\"16\">Honda<\/option><option value=\"17\">Hyundai<\/option><option value=\"18\">Infiniti<\/option><option value=\"20\">Jaguar<\/option><option value=\"21\">Jeep<\/option><option value=\"22\">Kia<\/option><option value=\"23\">Land Rover<\/option><option value=\"24\">Lexus<\/option><option value=\"25\">Lincoln<\/option><option value=\"53\">Maserati<\/option><option value=\"26\">Mazda<\/option><option value=\"27\">Mercedes-Benz<\/option><option value=\"2\">MINI<\/option><option value=\"29\">Mitsubishi<\/option><option value=\"30\">Nissan<\/option><option value=\"34\">Porsche<\/option><option value=\"57\">Ram<\/option><option value=\"171\">Rivian<\/option><option value=\"37\">Subaru<\/option><option value=\"56\">Tesla<\/option><option value=\"39\">Toyota<\/option><option value=\"40\">Volkswagen<\/option><option value=\"41\">Volvo<\/option><\/select><\/label>\n    <button class=\"btn btn-primary\" type=\"submit\">Get dealer prices<\/button>\n  <\/form>\n<\/div>\n<\/div><\/div><\/section>\n<section class=\"sec\"><div class=\"w\"><div class=\"video-embed\">\n  <p><strong>Watch the short version<\/strong><\/p>\n  <div class=\"video-frame\"><iframe src=\"https:\/\/www.youtube-nocookie.com\/embed\/TUrbyawXfRU?playsinline=1&amp;rel=0\" title=\"How a New Car\u2019s Price Is Actually Built\" loading=\"lazy\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/div>\n<\/div><\/div><\/section>\n<section class=\"sec sec-alt\"><div class=\"w\"><h2>What are the layers of a new car price?<\/h2><div class=\"steps\"><div class=\"step\"><h3>1. Base price<\/h3><p>The manufacturer sets a base price for the car without options or add-ons.<\/p><p class=\"cite\">Source: <a href=\"#src-cfpb_price\">5<\/a><\/p><\/div><div class=\"step\"><h3>2. Options and destination make the sticker total<\/h3><p>The window sticker adds the suggested price of each option and the charge for shipping the car to the dealer, then shows the total. Federal law requires all of these on the label.<\/p><p class=\"cite\">Source: <a href=\"#src-usc_1232\">3<\/a><\/p><\/div><div class=\"step\"><h3>3. Invoice sits below the sticker<\/h3><p>The invoice price is the manufacturer&#x27;s initial charge to the dealer, and it is lower than the MSRP.<\/p><p class=\"cite\">Source: <a href=\"#src-nyag_buying\">1<\/a><\/p><\/div><div class=\"step\"><h3>4. The dealer&#x27;s real cost sits below invoice<\/h3><p>Holdbacks, incentives and rebates from the manufacturer lower the dealer&#x27;s final cost under invoice. You will not see that number.<\/p><p class=\"cite\">Source: <a href=\"#src-nyag_ads\">2<\/a>, <a href=\"#src-nyag_buying\">1<\/a><\/p><\/div><div class=\"step\"><h3>5. The selling price is where you negotiate<\/h3><p>The vehicle price is negotiable, along with the interest rate and your trade-in. Shopping several dealers is how you find out where your price should land.<\/p><p class=\"cite\">Source: <a href=\"#src-cfpb_price\">5<\/a><\/p><\/div><div class=\"step\"><h3>6. Taxes, fees and add-ons make the out-the-door price<\/h3><p>Sales tax, title and registration, dealer fees and any add-ons go on top of the selling price. The out-the-door total is the only number that shows what you will actually pay, and it is the one to compare between dealers.<\/p><p class=\"cite\">Source: <a href=\"#src-ftc_know\">4<\/a>, <a href=\"#src-cfpb_price\">5<\/a><\/p><\/div><\/div><\/div><\/section>\n<section class=\"sec\"><div class=\"w\"><span class=\"mini-label\">Illustration only<\/span><h2>One car, five prices<\/h2><p>Round numbers for illustration only. They are not the price of any real vehicle, and real taxes and fees depend on your state.<\/p><div class=\"price-stack\"><div class=\"price-row\"><span>Base price plus options<\/span><strong>$43,600<\/strong><\/div><div class=\"price-row\"><span>Destination charge<\/span><strong>$1,400<\/strong><\/div><div class=\"price-row\"><span>Sticker total (MSRP)<\/span><strong>$45,000<\/strong><\/div><div class=\"price-row\"><span>Invoice price<small>the dealer&#x27;s real cost is lower again<\/small><\/span><strong>about $42,000<\/strong><\/div><div class=\"price-row\"><span>Out-the-door price<small>the selling price you negotiate, plus taxes, fees and any add-ons<\/small><\/span><strong>varies<\/strong><\/div><\/div><\/div><\/section>\n<section class=\"sec sec-alt\"><div class=\"w\"><div class=\"card\"><h3>The five prices to know<\/h3><ul><li>MSRP: the sticker total<\/li><li>Invoice price: the manufacturer&#x27;s charge to the dealer<\/li><li>Market price: what the same car is selling for near you<\/li><li>Dealer fees and add-ons: charges added to the selling price<\/li><li>Out-the-door price: the total you will actually pay<\/li><\/ul><\/div><\/div><\/section>\n<section class=\"sec related\"><div class=\"w\"><h2>Related guides<\/h2><ul><li><a href=\"https:\/\/invoice-pricing.com\/cars\/buying-tip\/what-is-invoice-price\/\">What is invoice price?<\/a><\/li><li><a href=\"https:\/\/invoice-pricing.com\/cars\/buying-tip\/destination-charge-msrp-invoice-price\/\">Destination charge, MSRP and invoice price<\/a><\/li><li><a href=\"https:\/\/invoice-pricing.com\/cars\/buying-tip\/car-dealer-fees-explained\/\">Car dealer fees explained<\/a><\/li><li><a href=\"https:\/\/invoice-pricing.com\/cars\/buying-tip\/market-adjustment-fee-dealer-markup\/\">Market adjustments and dealer markups<\/a><\/li><li><a href=\"https:\/\/invoice-pricing.com\/cars\/buying-tip\/out-the-door-price\/\">Out-the-door price<\/a><\/li><\/ul><\/div><\/section>\n<section class=\"sec sources\"><div class=\"w\"><h2>Sources<\/h2><ol><li id=\"src-nyag_buying\"><a href=\"https:\/\/ag.ny.gov\/publications\/buying-car\">New York State Attorney General, Buying a car?<\/a><\/li><li id=\"src-nyag_ads\"><a href=\"https:\/\/ag.ny.gov\/sites\/default\/files\/adguidelinesfordealers.pdf\">New York State Attorney General, Advertising guidelines for automobile dealers<\/a><\/li><li id=\"src-usc_1232\"><a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/15\/1232\">15 U.S.C. 1232, Automobile Information Disclosure Act (window sticker)<\/a><\/li><li id=\"src-ftc_know\"><a href=\"https:\/\/consumer.ftc.gov\/articles\/car-dealer-ads-and-promotions-know-you-go\">FTC, Car Dealer Ads and Promotions: Know Before You Go (July 2022)<\/a><\/li><li id=\"src-cfpb_price\"><a href=\"https:\/\/www.consumerfinance.gov\/ask-cfpb\/what-factors-into-the-price-of-a-car-or-vehicle-en-723\/\">CFPB, What factors into the price of a car or vehicle? (last reviewed September 12, 2023)<\/a><\/li><\/ol><\/div><\/section>\n<section class=\"sec\"><div class=\"w\"><div class=\"final-cta\">\n  <h2>Get prices from local dealers<\/h2>\n  <p>Tell us the car and your ZIP, choose which local dealers get your request, and they send you their prices for that exact vehicle.<\/p>\n  <div class=\"cta-row\" style=\"margin-top:18px\"><a class=\"btn btn-primary\" href=\"https:\/\/invoice-pricing.com\/secure\/app1.cfm?engine=organic\">Get dealer prices<\/a><\/div>\n<\/div><\/div><\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>See how a new car&#8217;s price is built, from the base price and destination charge to invoice, dealer cost and the out-the-door total you actually pay.<\/p>\n","protected":false},"featured_media":1254,"template":"","format":"standard","meta":{"_acf_changed":false},"categories":[28],"tags":[],"class_list":["post-4646","buying-tip","type-buying-tip","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-tips"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO Pro 5.0.5 - aioseo.com -->\n\t<meta name=\"description\" content=\"See how a new car&#039;s price is built, from the base price and destination charge to invoice, dealer cost and the out-the-door total you actually pay.\" \/>\n\t<meta name=\"robots\" content=\"max-image-preview:large\" \/>\n\t<meta name=\"google-site-verification\" content=\"N7imH6j_Doy_Tuj_XjGdr0a6VRRtC8qFL3tjuzCGomw\" \/>\n\t<link rel=\"canonical\" href=\"https:\/\/invoice-pricing.com\/cars\/buying-tip\/how-a-new-car-price-is-built\/\" \/>\n\t\t<meta name=\"generator\" content=\"All in One SEO Pro (AIOSEO) 5.0.5\" \/>\n\t\t<meta property=\"og:locale\" content=\"en_US\" \/>\n\t\t<meta property=\"og:site_name\" content=\"Invoice-Pricing - Find dealer Invoice Pricing on new cars local to you and save thousands.\" \/>\n\t\t<meta property=\"og:type\" content=\"article\" \/>\n\t\t<meta property=\"og:title\" content=\"How Is a New Car&#039;s Price Built? 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