One thing is for real, when you consider buying a new car, you are looking to get a whole good deal, feeling comfortable and at ease that you are taking home the vehicle you wanted for a fair price, for what is really worth. Therefore, let's dissipate some myths that hang around the factory invoice price , so you can make an informed decision.
What is the Factory Invoice Price?
Many people don’t know exactly what the factory invoice price is. Before you start negotiating the price for your new car, you should get familiarized with this term. Chances are the better informed you are, the better deal you’ll get. To make it simple, the factory invoice price or dealer invoice is the price a car dealer pays to the manufacturer for each car that you find in the lot.
The factory invoice price is not, in essence, the actual price of the car from the factory. The car dealer may qualify for rebates and volume discounts as well. These additional discounts will further decrease the amount that the dealer paid for a particular car. On the other hand, the car may have factory-installed add-ons or vehicle options that will cause the invoice price to increase. This price should include delivery and destination charges.
Factory Invoice vs. MSRP (Manufacturer's Suggested Retail Price)
The manufacturer's suggested retail price (this is at how much the manufacturer is recommending the dealership to set the selling price of a new car) used to be the starting point when you wanted to negotiate a new car deal. But in this day and age we are fully aware that there are other forms of starting a negotiation. That we, the customers, don't have to wait in line until they call our name - by the contrary, we can decide how and at what circumstances. We start negotiating the best deal for our new wheels.
The market offers such a wide range of possibilities when buying a vehicle nowadays – it's only reasonable that every car dealership will try to bring your attention to them, by offering great discounts and bonuses. This is why the MSRP is no longer the starting point in a negotiation; therefore you should, of course, take the MSRP into consideration as well as the factory invoice price , and start negotiating your own deal somewhere in the middle.
When you go to the dealership you should have made your own investigation in advance and be well informed, and ought not only to focus on how much the factory invoice price is. You should see your car and the possibility of a purchase as a whole experience, and think that cheesy car salespersons are things from the past.
Nowadays most dealerships want to create a good relationship with their customers based on trust, not scam them, as chances are that if today you get a good product at a good price, you'll come back tomorrow for more. So use this to your own benefit, and see the salesperson as a potential ally that can be a source of insight information, as he knows the product highs and lows and can help you to take a better choice.
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