If you have a little bit of inside knowledge you can significantly improve your chances of scoring a great deal on a new car. Keep in mind that dealers want to sell cars, so they are usually willing to slash prices and negotiate if it means landing a sale. When you request a free no obligation to buy new car price quote you will get access to insider information that will help you drive away with a deal close to or even below the dealer invoice price for a new car. It’s quick, it’s easy and best of all it’s 100% free and you can request as many quotes as you want, request your price quote and get started today!
Dealer Invoice Price, Dealer Cost and MSRP- Know the Difference
During the car shopping process you may come across a lot of lingo that you’ve never heard before, it’s important to understand the difference between these key terms so you can negotiate a great deal on a new car.
Dealer Invoice Price: This is the amount that the manufacturer charges the dealership for the new car that they want to sell on their lot or showroom floor. When negotiating a price on the car you have your eye on it’s a good rule of thumb to negotiate up from the invoice price, rather than down from the MSRP. The closer to the dealer invoice price for a new car that you can get, the better the deal for you. During some situations, perhaps with vehicles that have been sitting on the lot for a long time, you may be able to get a deal below the dealer invoice price, read on to find out how.
Dealer Cost: This is the actual price that the dealer pays the manufacturer for a vehicle. Oftentimes the dealer cost is significantly less than the dealer invoice price for a new car because the dealer invoice price contains a ‘holdback’, which is usually 2-3% of the invoice price or MSRP. The holdback is given back to the dealership at a predetermined time and serves to lower the actual cost of the vehicle to the dealership. The dealer cost can be calculated by subtracting the dealer holdback and any factory to dealer rebates/incentives, from the invoice price. Because of the difference between the dealer cost and dealer invoice price for a new car, the dealership can still make a profit if they sell a car at on even below the dealer invoice price.
MSRP: This is the Manufacturer’s Suggested Retail Price, it is exactly what it sounds like, a price that the manufacturer recommends the dealership charge for a vehicle. Keep in mind that the dealership is under no obligation to sell the car for this amount, they can price it at or below the MSRP as they see fit, which gives you more incentive to negotiate a great deal on the new car you have your eye on.
One of the best ways you can prepare yourself for new car shopping is by requesting multiple new car price quotes and making dealerships compete for your business. If you make dealerships compete by leveraging their offers against each other then you can drive the price down and get a great deal at or close to the dealer invoice price for a new car. Get started today by requesting a free new car price quote! You can request multiple quotes from dealerships in Virginia and start negotiating for your next car today!