When shopping for a new car it's important to know what the different prices mean so you can know the different between a good deal and a great deal! Request your new car price quote and receive exclusive rebates and incentives as well as the invoice price of the new car that you want to purchase. It's quick, it's easy and there is no obligation to buy. Get Started Today!
The dealer invoice price is the 'technical' price the dealer pays the factory for the vehicle. It does not take into account the dealer holdback or any factory to dealer incentives that may be reducing the actual cost to the dealership.
It is also important to know that the MSRP is the Manufacturer's Suggested Retail Price and is what the factory recommends the vehicle be sold for. However, the dealer is under no obligation to sell the vehicle for this price, it's simply a recommendation.
The dealer cost is calculated by subtracting the dealer holdback (2-3% of the dealer invoice price or Manufacturer's Suggested Retail Price) and the factory to dealer incentives from the dealer invoice price. Once you know the dealer cost you can calculate how much profit the dealership is making on the price they are charging you. Obviously you can't expect the dealership to take a loss, but you can drive a hard bargain and aim to pay below or as close to the dealer cost as possible.
Get started on shopping for your new car today! Request a free, no obligation to buy new car price quote and you will get the invoice price as well as the tools you need to calculate the dealer cost so you can be on your way to getting the wholesale car values you want to pay.
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Knowing what determines the price of a car is the best way to get a great deal. Realize the invoice price is not the actual price a dealer is …