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How To Buy At The Price The Dealer Paid For A Car

January 24, 2012

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How Much Did The Dealer Pay the AutoMaker For Any New Car?

While you cannot see the real price the dealer paid for a car, it can be estimated easily. Manufacturers offer dealer discounts in the form of hidden incentives and holdbacks, which they can choose whether or not to pass on to the customer. This increases the dealers profit margin. If you want to calculate how much the dealer actually paid for the car, you have to take the invoice price and subtract these hidden incentives and holdbacks, then add on advertising costs. This will give you a good idea of how much the dealer is actually paying for the car.

You can find manufacturer incentives and holdbacks in your area online by requesting a FREE car quote today!

Why Should You Pay What The Dealer Paid For The Auto?

If you know how much the dealer paid for a vehicle then you have an advantage in negotiating a better price for yourself. Knowing how much they paid will let you know how much profit they are making from the sale price they are quoting you. This will give you room to negotiate a price you know they are still making money on, but also ensures you are still getting the best deal possible without giving them all the savings.

How Can A Dealer Afford To Sell at Dealer Cost?

Dealerships have to sell cars to make room for new inventory. This is why you can sometimes find great deals for cars at the dealer cost. Large dealerships can afford to sell a few cars at cost so they can make room for new product. If dealers are selling a lot of cars and making profits on them, then selling a few cars at cost will not bankrupt them.

Invoice Price vs. MSRP/Sticker Price vs. True Dealer Cost

The invoice price is the official price the dealer paid the automaker for the car. Once you take into account the hidden incentives and holdbacks the dealer is getting, you’ll see they actually paid less. We search through a wide variety of websites to find you the best prices that factor in these hidden variables. Request a FREE price quote and see the dealer invoice, MSRP and dealer cost on the car of your choice.

The dealer cost of a new car is what the dealer actually paid for the car. This takes into account the holdbacks and incentives they are keeping as well as the cost to them for advertising.

The MSRP is the manufacturer’s suggested retail price, it is on the car sticker, and is exactly like it sounds. This does not mean the car dealer has to sell at this price but it is a good thing to know so you can see the difference between what the dealer is asking for the car and the suggested price. This brings us to the dealer price, which is the amount the dealer is asking for the car, this varies greatly among different dealerships.

The average market price of a vehicle is the average price people, in a certain area, are paying for a car. This can vary across the United States. Sometimes regional incentives allow for the same model car to be cheaper in certain states. Request your FREE car quote and see all the special offers in your area.

4 Examples of Select Average Car Prices in Princeton, NJ Compiled From Our Large Network of Dealerships:

Although the prices below may be different next week, it is our intention for this data to serve as an accurate ‘snapshot’ example, for you to see the difference between invoice price, dealer cost, MSRP and market average price.

Honda Accord Coupe
2012 Honda Accord Coupe
Invoice price: $21,861
Dealer Cost: $20,828
MSRP: $23,763
Market Average: $22,557

[Toyota Land Cruiser](/qform/?make=Toyota&model=Land Cruiser)
[2011 Toyota Land Cruiser](/qform/?make=Toyota&model=Land Cruiser)
Invoice price: $63,981
Dealer Cost: $62,601
MSRP: $70,117
Market Average: $67,986

Audi A3
2012 Audi A3
Invoice price: $26,555
Dealer cost: $26,402
MSRP: $28,151
Market Average: $26,924

Dodge Avenger
2012 Dodge Avenger
Invoice price: $19,551
Dealer cost: $16,132
MSRP: $19,884
Market Average: $16,779

What Conditions Would Motivate a Dealer To Sell at Dealer Cost?

The best chance of buying a car at the price the dealer paid (or close to it) is to buy a less popular, slower selling model. Another possibility it to buy a popular model which might be in an unpopular color and has hence been sitting on the lot for a long time. Generally, buying car at the end of the month or the end of the year can give you access to great discounts. Car dealers want to sell cars to make room for new product especially at the end of the month and the end of the year, this enables them to slash prices an give you great savings.

Request your FREE car quote today and see all the best cars selling at, or close to the price the dealer paid for the car!

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