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What is the Difference between the True Dealer Cost and Invoice Price?

August 17, 2011

Car shoppers nowadays are often confused about the true dealer cost and invoice price. Let this simple guide educate you ob the marvelous facets of car buying and how the true dealer cost and invoice price will help you find the car that you have always wanted for a much lower price.

Invoice Price

The invoice price is reputed to be the same price that the manufacturer charged the dealer for a particular car. Think of it as the wholesale price: car dealers will naturally get the car for less than what the MSRP or sticker price might state. Keep in mind that settling for the dealer invoice price might be a huge mistake as the actual amount might have been adjusted in the first place-besides the fact that the invoice will also contain the dealer holdback along with rebates and incentives that will further help lessen the price.

True Dealer Cost

The true dealer cost utilizes the invoice price in order to arrive at an exacting amount. The true dealer cost is the real deal as this will empower you to truly buy a car below the invoice price while allowing the dealer to make a marginal profit on the car. Understand the fact that car dealers operate on the principle of making a profit in order to continue serving your needs but this does not mean that you should settle for the sticker price alone.

Understand the true dealer cost along with the invoice price and you are sure to successfully negotiate the price of any make and model of car.

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