If you learn the dealer cost for cars, then you can instantly save money on any new vehicle. If you happen to be searching for a new car, then you should take the time to request a FREE online price quote. You will get access to the tools you need to calculate the dealer cost for cars that you want to buy, including the factory invoice price. You will also find:
- The best local deals for any type of new car, truck or SUV.
- Updated pricing and discount offers for the vehicle that you want, so you save more money!
- Available $0 down payment lease offers and low APR financing rates on the best new cars.
- Available hidden cash rebates and secret incentive offers that are only offered to online shoppers.
Many buyers look for the invoice price of the car in order to get a good deal. But learning the dealer cost for cars will give you the best deals with the biggest savings.
The Difference Between Dealer Invoice and Dealer Cost
The dealer invoice is the amount the factory charges for each specific vehicle, to the dealership. But the dealer invoice does not factor in items such as factory incentives, dealer holdback, and vehicle discounts, which significantly lower the invoice price to something referred to as the dealer cost. The difference between the dealer invoice and dealer cost enables the dealership to sell a car at or below the dealer invoice and still make a profit.
Fees You Pay when Buying a New Car
Here are the different fees that you need to pay if you want to buy a new car:
- Registration fees – this is used to cover the cost of registering the vehicle to the local DMV, including the vehicle license plates. The money that you pay will go to the state and not to the dealership. The amount will also depend on your region and the car that you wish to buy.
- Sales tax – if you buy a car, you need to pay the sales tax required by your state. This item is non-negotiable, and the actual rates will also vary by region.
- Documentation fees – not all dealerships will charge the same amount for documentation fees. Experts say that if the dealership is trying to charge you an amount higher than $100 for the documentation fees, you should do your best to negotiate a lower amount.
- Dealer fees – this is used to pay for preparing or cleaning the car before delivery, but most dealerships are only using this to earn an extra buck from the sale. It is also your duty to negotiate the dealer fees if you find them unreasonable in the first place.
- Advertising fees – dealerships spend huge amounts of money on advertising. You should also negotiate the advertising fee if the dealer is trying to charge a preposterous amount.
Use The Dealer Holdback as a Negotiating Tool
The holdback is a significant amount that will help you get more savings on your new car. It is usually between 2% to 3% of the MSRP or the factory invoice of the vehicle. We previously mentioned that the holdback will be 'held back' by the factory after the dealer sells the car to the customer. By letting the dealer know that you are aware of the dealer holdback, they may be willing to part with some of it if it means making a sale.
The dealer cost will provide you with a more accurate price, the price that the dealership actually paid for the vehicle that you want to buy. Requesting a FREE online price quote will allow you to determine the dealer cost for new cars, so you can easily compare prices online and find the dealer that is offering the best price.
Requesting a FREE true dealer cost price quote to pay the lowest price on any kind of new car!