You’ve probably seen a lot of new truck ads where the dealer says they’ll sell you a new truck at or maybe even $100 below their invoice price. The way they spin these ads, it would be easy to think it’s the deal of a century that a truck dealer is willing to sell you a new truck without making any money.
But is the truck dealer really so bad at business that they would sell you or anyone else a new truck at a loss? Of course not. In this article we’re going to let you in on how the truck dealer can sell you a new truck at or below the dealer invoice price and still make a good chunk of change in profits.
Then when you request a free, no obligation new truck price quote and receive competitive price quotes from certified new truck dealers, you’ll also receive the dealer cost on new trucks so you can negotiate a real deal.
- A hassle-free, haggle free new truck buying experience
- Find available manufacturer new truck incentives & internet only offers
- Available low monthly truck payments
- 100% free, no obligation new truck price quotes
So How Can The Truck Dealer Sell Me A New Truck At Or Below Their Dealer Invoice Price?
You see, while the truck dealer invoice price is technically what the truck dealer paid the manufacturer for that new truck you want to buy, the true dealer cost on new trucks is actually hundreds, if not thousands of dollars less than what you see on their dealer invoice.
- This is because the truck manufacturers inflate the dealer’s invoice price by two to three percent of either the truck dealer’s invoice price or the MSRP. In the automotive community this money is called the dealer holdback and it’s offered to the truck dealerships to help with the costs of maintaining a large selection of new trucks. The reason they call it a holdback is because it’s returned to the truck dealer, usually on a quarterly basis.
- New truck dealers also receive incentives – cash – from truck manufacturers to sell slower moving trucks faster, along with incentives to sell last year’s trucks to free up space for the coming year’s new models. They also receive regional sales bonuses that are offered within a certain region; this causes them to compete for the bonus money.
- Truck dealers also receive bonuses for the high scores they receive on the CSI (customer satisfaction survey) that manufacturers conduct after someone buys one of their new trucks. Then of course there are volume bonuses, bonuses for achieving end of the month or year sales quotas, etc.
- Area truck dealers all work with the same cash incentives/bonuses as well as a dealer holdback; when you’re aware of the true dealer cost on new trucks and their hidden profits, you can use the information during negotiations. By playing the numbers and requesting competing new truck price quotes, you can find the one truck dealer you need and could negotiate a deal under their dealer invoice price.
5 Great Reasons To Buy A New Truck
- Gone are the days of almost unbearable truck interiors where we were lucky if it had a radio. After SUVs hit the market and rose in popularity, drivers demanded a more comfortable driving experience from their truck; the manufacturers listened. Today’s trucks come with a lot more than just a smoother ride and AC; many have 4 doors and will comfortably accommodate 5. There are also ‘luxury’ trucks that offer the flexibility to transition from the job site to a business meeting, even as a family hauler towing the camper for a weekend getaway.
- All of this comfort doesn’t mean that today’s trucks aren’t tough; unlike SUVs, trucks are designed to tackle the most challenging terrain making it the ideal combo work truck and family transporter. Whether you’re heading off-road to remote camp spots or the snowy mountains to get in some skiing, with 4WD and good tires a properly equipped truck can get you wherever life’s adventures take you.
- Plain and simple you just can’t tow big toys like boats and pop-up campers behind a SUV. Trucks can be equipped with a fifth wheel trailer hitch to provide a strong connection to keep trailers/boats/campers more stable and the truck easier to maneuver.
- With a truck you have an uncovered bed for carrying cargo, giving you more options than a SUV. You can throw in lumber, dirt bikes or camping equipment and clean-up is easy; just hose down the bed and you’re done. They tow, haul and offer the utmost flexibility to adapt to ever changing, active lifestyles.
- While trucks can be big and heavy, if you’re in an accident all of that weight will be a blessing. Trucks were built to plow through anything and take abuse. Like passenger vehicles today’s trucks come equipped with airbags, stability control systems, smart braking technology and other safety features.
Now that you know how a new truck dealer could sell you a new truck below their dealer invoice price and still make a profit, start shopping for your new truck by requesting a free, no obligation to buy new truck price quote. You’ll receive the tools to calculate dealer cost on new trucks to utilize when negotiating with the multiple competing new truck dealers who submit a price quote.
Don’t forget you only need one new truck dealer in to play ball and create the win/win; they make the sale and you drive home with a great price on your next new truck.