Question re Invoice Pricing
Janet Washburn
only add 3% to the invoice price. What about the options? Do you take the
invoice price of the options and add 3% to those too? Please tell me how
that works.
Thanks,
Janet
Ed P
In the context of your question, "invoice price" is the total price
including shipping of the car on the manufacturer's invoice to the
dealer. However, as the manufacturers offer various sales incentatives
to the dealers, the "invoice price" is not the final amount that a
dealer pays for a car. Therefore, the "invoice price" is just a
reference point for discussion or bargaining.
Ed P
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Mark Everett
You would add the 3% to the invoice price of the car, before delivery and
taxes, etc. Try to get them to throw in some things. If the car comes
equiped with options you don't want, negotiate on those. For example, my
wife just bought a new Toyota Highlander - it came with a roof rack, side
steps, etc and chrome alloy wheels. She got the rack and steps for free
because she didn't want them and the dealer wanted her to buy that car. We
are getting the regular alloys and new tires instead of the ugly chrome
ones.
Instead of a blanket 3%, pull out your calculator and see what a fair profit
would be (start the value of 3% of the car itself, with out options). When
I bought my last VW, I got the leather seats for $100 over invoice (the
invoiced at 500, retailed for 800). I also got them to throw in uprated
mats and negotiated on holdback (that's another 3% - usually - the
represents pure profit to the owner of the dealership). Some dealers will
not negotiate on holdback at all. Basicially, my tactic was to pay them
$500 over invoice. I wound up paying $600.
Also, invoice is not necessarily what the dealer is paying for the car. A
high volume dealer pays less. A low volume dealer may pay more in finance
charges.
Good luck.
Mark
"Janet Washburn" <kay...@libertybay.com> wrote in message
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Todd H.
I paid $360 below dealer invoice. How good the deal is depends on the
particular car, the dealer holdback, factory to dealer incentives and
the like.
Invoice is what the dealer supposedly pays for the car. Holdback is
the amount of money the factory gives them upon sale of a new
car--this holdback goes towards paying the dealer's financing cost for
having the car on their lot, advertising fees, costs of doing
business, and profit.
So, the net cost of the car to the dealer is invoice-holdback...unless
there are factory-to-dealer incentives occurring (Subaru doesn't often
do this, I'm told). In that case, actual dealer cost is invoice -
holdback - factory_to_dealer_incentive.
3% above dealer's actual net cost on a car is considered fair profit.
On my vehicle, the dealer made 1.8% so I feel all proud of myself.
If you know what model of vehicle you want, use edmunds.com for
pricing info, and spend the $12 or whatever on the consumer reports
new car pricing report for your vehicle. It's better laid out than
any of the free resources on the web. It gives you dealer cost for
every option in a nice tabular format. You can even buy it on-line.
http://www.consumerreports.org/Services/newcarprices.html
Buying a new car is a lot of fun. In no other transaction are you
buying a commodity about which you have nearly perfect information
about what the seller paid for the item, and all the common ways they
try to bilk more profit from ya. If you have multiple dealers in your
area, get the CU price report, and go and have a ball.
There are lots of excellent car buying tips at
http://www.carbuyingtips.com/
Enjoy,
--
Todd H.
2001 Legacy Outback Wagon, 2.5L H-4
Chicago, Illinois USA
Janet Washburn
each of them until I "get" it.
Janet
"Mark Everett" <markse...@home.com> wrote in message
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