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What is a Dealers Invoice Price?

October 05, 2010

Find Local Dealers Offering New Autos Below Invoice Price. Select The Car Of Your Choice at Affordable Rates!

You have just decided you want to change your car and you thought this would be a simple procedure, just as changing your TV. The facts are telling you that there is much complexity behind your simple decision. You need to familiarize yourself with industry terms.

Knowing the basics.
Usually the terms factory invoice price and dealers invoice price refer to the same thing. The dealers invoice, lists every detail about the new vehicle, including its standard equipment and manufacturer-installed options. In the document you will also see a list of the cost for these items. These figures represent the cost paid by the dealer rather than the suggested retail price for consumers, or MSRP. Automobile invoice prices also contain the destination charge, a fee for transportation of the vehicle to the dealership.

Dealers can afford to sell a car under invoice price, that is allegedly the price they’ve paid for the car, because there are other factors as well that make that invoice price a lot lower. Car dealerships never end up paying what the invoice says they had paid, by the contrary there are benefits and cash back incentives given to dealers by the manufacturer that allow them to give you a better deal. There are holdbacks and special incentives that the manufacturer’s give to the dealerships that make the cost of the vehicles lower. Also the new car invoice cost reflects how much the car would cost to the dealership if they just buy one car; chances are that they buy a higher number lowering the invoice.

Steps to follow.

  1. Gather information online. You have to be 100% informed on everything that’s going on regarding the prices on the new car you want.

  2. Evaluate your needs, and choose the right car for you, therefore you don’t waste any time searching for prices and good deals on car models that you will not end up buying.

  3. Go online and ask for free car quotes on just the cars that fits your needs, a price quote will give you actual information on how much exactly are the discounts the dealerships are willing to offer.

  4. Know the prices before leaving your house and only pay attention to the competitive ones.

  5. Have a game plan, you need to find those dealerships that will give you a good deal below dealers invoice price.

Once you are armed with complete pricing information, negotiating a great deal on your next new car should be a smooth process. Work with the dealer to achieve a win-win deal that will both save you money and allow the dealer an acceptable level of profit. As a knowledgeable shopper you will not only remove the stress from your new car buying experience, but get a great deal as well!

Request a free no-obligation new car price quote today. Learn all you need to get a great deal on the new vehicle you want!

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