The dealer invoice price is what the dealership claims to have paid the automaker for a new vehicle. While this is technically correct (from an accounting perspective) in the truest sense the real dealer cost is hundreds, even thousands of dollars lower than what appears on the dealer’s invoice.
This is because car manufacturers add a percentage to the invoice that’s called a “holdback”. This money is used by the dealership to help with overhead costs and is kicked back to them when the car is sold. Car dealerships are also offered incentives/regional bonuses for selling certain models and reaching their sales objectives.
Being aware of the fact that these incentives and bonuses exist means you’ll be able to negotiate a real deal on a new car. This is why when you request a free, no-obligation-to-buy car price quote you’ll discover the real dealer cost and see with your own eyes the amount of profits that are hidden in every new car on the showroom floor.
Have multiple new car dealerships in send you their best offers, then use your knowledge of their real dealer cost and dealer incentives to negotiate a great deal on a new car.