Most of the services in our chapter " How to Buy a New Car on the Internet" like Edmunds and offers this information at no charge but it isn't always as accurate or up to date. TrueCar also offers this information at no charge but it isn't always as accurate or up to date. While you are there, you can see the TrueCar price and use their service to get a guaranteed quote. To make it easier to see where to look and click, we have circled both areas in red on the image below. To see the invoice price and MSRP for individual options, you will have to click the link near the top of the page. TrueCar will show you the invoice price for the complete configuration on their TrueCar Curve. The package is well worth the cost especially since they will also give you a "coach" to help you through the process if needed. They charge $59.95 for the first vehicle and $15 for each additional vehicle. They have the most up to date and accurate information for invoice prices and secret incentives. I recommend that you get the Fighting Chance package. Where to Find Invoice Prices and Secret Incentives If you buy something for $39 and send in a $10 rebate form, you "paid" $39 but it only "cost" you $29. This can get somewhat confusing so the best way to understand it is to think of it like a rebate you get from a product. Invoice Price is the Amount the Dealer Paid not the Cost Use Toyota's option pricing as a "competitive guide" for negotiating. Unfortunately this makes it impossible to lookup the cost of these options. Note for Honda Buyers: To maximize dealer profit, Honda options are installed at the dealer. Make sure not to confuse the MSRP on the window sticker with the "invoice" price! To make sure the one the salesman shows you is real, compare the numbers with your research. If the holdback isn't listed then estimate it. For most manufacturers it will list the holdback (sometimes it is abbreviated as H/B or something similar). The factory invoice lists the base model of the car, all option packages, floor mats, body trims and destination charge. The rebate amount should be subtracted after the price is agreed upon. Rebates are paid by the factory to you or they are subtracted from the final price. There are hidden factory to dealer incentives built into the "invoice price." They can be huge and they reduce the dealer's effective cost of the car.ĭo not confuse these with factory to consumer incentives (better know as rebates). It varies between 0% and 3% depending on the manufacturer. Some calculate it based on MSRP while other use the Invoice Price. The exact calculation for the holdback varies by manufacturer. It will be subtracted when you calculate the true cost. The dealer gets the holdback from the factory after they sell the car. If you aren't shown how much it is you can estimate it as 3% of the invoice price minus destination and delivery for domestic cars, 2% for imports. Explains Factory Holdbackĭealers are charged a "holdback" by the manufacturer. Knowing the true cost is your most powerful weapon when negotiating with the dealer. Don't fall for this pitch because it's not correct. You'll hear a lot about the "factory invoice" and the salesman will try to make you believe that it shows their true cost. Magicians have nothing on car dealers when it comes to keeping secrets and how much they actually paid for the car is their most important secret. Invoice Price - Factory Holdback - Factory To Dealer Incentives = Actual Cost The dealer's actual net cost of the car is usually much less, made up of 3 parts: I have done extensive research with auto industry insiders and have verified this to be true.ĭealer Cost is Not the Factory Invoice Price! Dealerships will gladly accept a 5% profit.
To be fair for both sides, you should make an offer of 3% - 5% over the actual dealer's cost, not above the invoice price. Your Offer Should Be 3% - 5% Over Actual Cost If they refuse your request, I will show you how you can get the information online. It will take some time and research so you must be patient.Īt the dealership, one of the first things you should do is ask them to show you the factory invoice for the car. Then you will be able to offer them a deal that gives them a fair profit.ĭon't just make up a number for the offer, make an educated offer based on the dealer's actual cost. In order to calculate your offer, the first thing you have to do is find out how much they paid for the car. Where to Find Invoice Prices and Secret Incentive.How Much Did the Dealer Really Pay for the Car?.Your Offer Should Be 3% - 5% Over Actual Cost.
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