The TMV price takes into account a number of factors, including the vehicle's invoice price, its manufacturer's suggested retail price, the current supply and demand for the vehicle, the vehicle's relative brand strength and actual transaction price data.
Many vehicle invoices include a legitimate advertising fee levied by either the manufacturer or regional dealer groups. Ad fees can range from less than 1% of the vehicle's MSRP to more than 3%, depending on region. Metropolitan-area dealers are more likely to charge higher advertising fees than rural dealers. Whenever there is an advertising fee, we take it into account when calculating TMV.
However, please note that the TMV prices do not take into account the following items:
Manufacturer-to-consumer rebates - these are different from manufacturer-to-dealer incentives and don't affect the actual transaction price; the consumer usually has the choice either to apply these funds against the sales price as a down payment (lowering the amount to be financed) or to accept a check from the dealer for this amount.
Tax or Title
License/Registration Fees
Source: http://www.edmunds.com/about/pricingtabl...
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