The new car invoice price is described as what the dealership pays the factory for the vehicle. When you are shopping for a new car it is important to know the invoice price, and here’s why:
When you know the invoice price of a new car you have a better idea of what you should be paying to get the best deal. The closer to the invoice price you can pay, the better the deal you’re getting. Request a new car price quote and get invoice prices on the cars you want in Virginia.
Another important aspect of the invoice price is that it is not the actual price that the dealership is paying for the car. There is a dealer holdback built into the invoice price, which is returned to the dealer once they sell the car. The existence of the holdback actually reduces the cost of the car to the dealer. Dealers can also take advantage of factory incentives which serve to further lower the cost to the dealership, meaning the invoice price isn’t the true price a dealership will end up paying for the car when it’s all said and done. Even if a dealer sells a car at the new car invoice price, they can still make a profit.
5 Tips to Buying a Car below the Dealer Invoice
- Research the models that have an excess inventory in the market. Excess inventory may mean they are slow moving, so in the interest of a sale, a dealer may give it to you at the invoice price.
- Don’t lock yourself into one make a model. Consider several different models, research their rebates, incentives and when the new model years come out, getting a price closer to the invoice amount may be easier when the new models years come out, as the dealers will want to move the previous models off the lot fast by selling them at invoice prices.
- Request multiple new car price quotes from dealers in your area. Let them know that you will go with whoever makes you the best offer. Playing dealers against each other will help you to get the best deal on a new car.
- Be patient and don’t be shy to walk away if the dealer isn’t offering you the price you want, there are plenty of fish in the sea.
- Make sure you don’t let the dealer bump up the prices on other items to try and recoup some of the profits they are losing from giving you a price close to or at the new car dealer invoice price.
Taxes and Fees on New Cars
Vehicle registration fees: This is a fee charged by the state to register the vehicle and obtain the title. The dealer offers this service to you to save you a trip to the registry or DMV.
Sales tax: The sales tax on a new car can amount to more than people think. This can vary from state to state, as well as within a state. Research this before you start your negotiations so you have an idea of how much you will have to pay.
Document fees: This is charged by the dealership to take care of any paper work fees that are associated with buying a new car. Ask about the documentation fees before you complete your price negotiators, if it is extremely high you can try to negotiate the price of the car down to compensate.
Taxing the trade in: Some states give you a tax break when you trade in your new car. For example if your trade in is worth $5,000, and the car you want to buy costs $25,000, you will only be taxed on the difference, $20,000, not the full amount of the new car.
Taxing rebates: Some states tax rebates and incentives while others do not. Check into this before you start your negotiations, you will get a better tax break if your rebates and incentives are taken away from the price of the car before the sales tax is calculated.Now that you are well equipped with the tips and tricks to get the best price on a new car, request your free no obligation price quotes today! Use the quotes to play dealers against each other so you drive away with the best deal possible.