The Truth About Dealer Cost

Looking to buy a new car or truck at the lowest possible price? Then you need to know the true dealer cost of the new vehicle you're looking to buy. True dealer cost is definitely not the sticker price, or even the factory invoice price. The true dealer cost is the real price, the actual price, the dealer paid for the new vehicle you want!

Let's start from the beginning - new car dealers must keep well-stocked showrooms and lots, to allow consumers to view and test drive new vehicles. The cost of this inventory is paid for by the dealership. To recuperate this cost, the dealer must sell the new vehicle. To assist dealerships, car manufactures provide what is called the dealer holdback.

The dealer holdback is a percentage of a new vehicle's value that is paid back to the dealer by the manufacturer. This amount is to help the dealership cover various sales expenses such as advertising, commissions, and stocking their show rooms. The longer a new car sits on the lot, the more it costs the dealer, cutting into holdback profits.

The secret is, armed with the true dealer cost of the vehicle you want - you can easily negotiate a great low price. This basic understanding of new car pricing will put you on a level playing field with the dealer. Thanks to this hidden potential profit, dealerships don't have to sell at MSRP or sticker price - they don't even have to sell at factory invoice.

Simply put, dealerships have plenty of room to negotiate. It's also in their best interest to sell inventory quickly to make the most out of dealer holdback. By shopping at pre-qualified dealerships that aim to move inventory and are willing to negotiate, you can save thousands.

Request a free true dealer cost price quote today ! We'll connect you with pre-qualified dealers in your area. Dealerships waiting to make unbelievable Internet only price offers in order to clear lots. Armed with the true dealer cost, you'll be able to negotiate like a pro and save big on your next new vehicle!