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What is True Dealer Cost for New Cars?

April 26, 2011

Understanding True Dealer Cost can Save You Thousands!

The secret behind paying the lowest new car prices is understanding and getting familiar with the car buying language before going to the dealership. Most importantly, you need to know the answer to the question- What is true dealer cost?

Different car buying terms will be thrown around that you will need to know:

Sticker Price: This is the price the dealership wants you to buy the car for. This is usually an inflated price, set much higher than the true value of the new car or truck.

MSRP: This stands for “manufacturer’s suggested retail price.” The MSRP is a price that the manufacturer values the car at. It will most likely be lower than the sticker price.

Dealer Invoice Price: This is the price the dealership pays the manufacturer for the new car. The manufacturer offers vehicles to the dealership at discount pricing since the dealership buys in bulk amounts.

True Dealer Cost: Even though dealerships pay invoice price for the vehicle, this isn’t always the end price they pay for it. Manufacturers often offer Factory to Dealership incentives that end up returning money back to the dealership. These incentives add additional profits to the dealership pocket after selling a new car or truck.

Request a free, no obligation price quote to uncover all of the above prices. You will be able to negotiate for lower prices than you ever imagined!

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