When you understand the terminology associated with shopping for a new car you will be in a much better position to negotiate a great deal on a new car. Get started on your path to buying a new car at or close to car dealer invoice prices today!
Car Shopping Terminology- Use It To Get A Great Deal on a New Car in Virginia
Car Dealer Invoice Prices: The dealer invoice price is the amount that the manufacturer invoices the dealer for a new vehicle.
Factory Invoice Price: This price represents the invoice price, plus any destination and manufacturer fees.
Dealer Cost: The dealer cost is how much the vehicle costs the dealership. Different to the factory invoice price, there is a ‘holdback’ worked into car dealer invoices prices, which inflates the price that the dealership initially pays, as they received this holdback which is normally around 2-3% of the invoice price or MSRP.
MSRP: It is what the manufacturer suggests that the dealership sell the vehicle for. Keep in mind that this is merely a suggestion; the dealership is under no obligation to sell at this price.
When you have set your sights on the car you want to purchase it’s important to do your research. When you know how much the car dealer is actually paying for the car, then you can calculate what you might want to offer. Remember, always negotiate up from the invoice price, not down from the MSRP.
You can calculate the approximate dealer cost by taking the car dealer invoice price and subtracting factory to dealer incentives, rebates and the holdback from it, this will give you an approximation of the amount the dealer paid for the car.
Request your free no obligation to buy new car price quote today and get started on your new car shopping in . The information you receive regarding the invoice price and incentives offered can help you drive off with a great deal on a new car.