Before we can establish what is your car invoice price we need to learn what the invoice price of a car is to help you find it. This information will help you not only determine but also recognize your car invoice price when you see it.
What is the new car invoice price?
The term invoice price or factory invoice price refers to what the car dealer pays to the carmaker for each automobile he buys. It doesn’t matter whereabouts you are in the US, every car manufacturer theoretically charges the same amount of money for every new car dealer across in America. That is why the invoice price of the vehicle will be the same no matter where you live.
Still, different dealerships have different costs for the cars. Car manufacturers give special incentives and discounts to new car dealerships that have higher sales quotas, and that therefore sell more cars. The more cars a car dealership sells, the better price the car manufacturer gives them for the car, this are simple rules of wholesale trading.
The Invoice price usually includes:
- Destination cost: The cost of the car being transported from the car manufacturer’s factory to the new car dealership is usually charged to the car dealer. We could summarize it as a transportation and delivery fee that is also the same for every dealer. This fee is included in the purchase price of the vehicle, therefore passed to you without markup.
- Advertising fees may also be included in the invoice price although they not come directly from the manufacturer. Frequently, these fees come from local dealers' associations, and are possibly charged on to consumers as an individual line article in sales contracts.
Dealers borrow money (just as we do) from the car manufacturing company. As the true cost of vehicles is still very high they need to finance them to have showrooms and car lots full of vehicles, that’s why dealers need to keep cars moving all the time, as a car that is sitting on the car lot represents lost money for them. There are back costs (interest) on those credits given by the car manufacturer; these credits are called floor plans. As we said, the longer the car sits on the car lot, the higher the cost it represents to the dealership as that car is creating “interests” from them.
Usually the car invoice price of a vehicle also includes what are called holdbacks. This is a specific percentage amount of the MSRP, usually a 2%-3%, but it can diverge depending on the car manufacturer. When the vehicle is sold, this fee is returned to the dealer, making this like an incentive for new car dealers to sell more cars and as a reward for the floor plan (interests charged to them).
Request for a free no obligation new car price quote and have an answer to your question “How can I find my car invoice price?” in no time. Just request for a price quote, relax and let us locate the best new car dealerships near you. They will contact you and hand you all the information you need to know on your new car. No obligations and no cost!