Pricing & valuations for dealers
How to work out the maximum you can pay for a car
Updated 3 September 2026 · 2 min read · by DealerPricing
Your maximum buy price is the retail price the car will sell for, minus the profit you want, minus preparation costs. The DealerPricing retail price calculator does this for the exact car using its live retail value, and handles the VAT margin scheme, VAT-inclusive and VAT-exclusive cases. Try the simple version on this page.
Max buy = retail − (retail × margin) − prep. The dashboard calculator does the same sum with the live retail figure for the exact car.
Step by step
Search the registration on the dashboard
Enter the VRM and, if you know it, the mileage. DealerPricing decodes the exact make, model, variant, engine, gearbox and body style, then pulls every matching live listing.
The dashboard VRM search with registration and optional mileage fields Open the Retail Price Calculator
It sits on the Pricing tab next to the valuation. Choose Margin Scheme, Inc VAT or Ex VAT to match how you will sell the car, and tick "Prep VAT reclaimable" if you hold VAT invoices for prep work.
The Retail Price Calculator with margin scheme toggle, retail price, target net profit and prep cost inputs Enter retail price, target profit and prep
Use the DP Retail figure or your own. Set target profit as a percentage or a fixed amount and add realistic prep costs. The calculator returns the most you can pay.
Enter what you bought it for
After the purchase, add the price paid and the calculator shows your actual net profit at the retail price, VAT handled correctly.
What you’ll see
- Maximum purchase price for your target margin
- Net profit at any bought-for price
- VAT margin scheme, inc VAT and ex VAT modes
- Prep cost and reclaimable VAT handled separately
Ready to try it?
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Start pricing with DealerPricing →Frequently asked questions
What is the VAT margin scheme?
A VAT scheme for second-hand goods where VAT is charged only on the difference between the buying and selling price, not the full sale price. Most used car sales by dealers use it, which is why the calculator offers it as the default.
What margin should a used car dealer aim for?
It varies with price band and stock turn. Many independents work to 10 to 15 percent gross on mainstream cars, more on cheap cars where fixed costs dominate. Set the target that covers your overheads and use the calculator to protect it on every bid.
Does the dashboard calculator use live prices?
Yes. It can take the DP Retail valuation for the exact car as the retail price, so your maximum bid reflects today’s market rather than a guide figure.