What is the difference between dealer invoice and dealer cost?
The dealer car invoice is the price the dealer paid the manufacturer for the car. The actual dealer cost is much less, because car dealers get secret holdbacks and hidden incentives to help with their costs. Once you subtract these costs from the dealer car invoice you will get the true dealer cost.
Luckily, there are multiple benefits you can find in order to pay less than invoice:
- Consumer Financing Incentives: Financing incentives are a great way to get a loan interest rate lower than what you would typically get on your own.
- Consumer Rebates: This is money the manufacturer pays the buyer when they purchase a new car. You can deduct this amount from the final sales price agreed on for the car.
- Regional Dealer Incentives: These incentives are offered to dealers on a regular basis to help boost the sales of certain models in their region.
- Dealer Holdback: The holdback is given to the dealership generally as a percentage of the MSRP price to help with their costs.
- Fleet Discounts: Dealers need to move product fast to make room for the new models so extending this discount to you is a great way for them to motivate a sale and for you to save money.
- End of Month Discounts: During the end of the year or month many dealers want to get rid of excess product to make room for newer models from the manufacturer and possibly receive bonuses.
- Overstock Discounts: These are discounts extended to customers when the dealer wants to quickly move stock that is taking up space. They will slash the prices to encourage customers to buy their vehicles.
Get started on shopping for you new car today! Request a free no obligation to buy new car price quote and learn what the dealer invoice price is as well as the tools to calculate the true dealer cost. It’s quick, it’s easy and best of all it’s 100% FREE!