4 ms·

In theory, yes, all dealerships pay the "invoice" price for a given vehicle. But often there are other financial stipulations for each vehicle, such as "hold b

by bradfa 4y ago

In theory, yes, all dealerships pay the "invoice" price for a given vehicle. But often there are other financial stipulations for each vehicle, such as "hold back" which is meant to assist the dealership floorplan interest costs (basically the carmaker pays the interest on the dealer's loan to hold the car on their dealership lot for X days, then beyond that the dealership is on their own). I don't think hold back deals are always the same for every dealer, but I have no insider information. If you ever are negotiating for a new car purchase, you can use the leverage of the hold back in your negotiations. If you're ordering a car and will pick it up the day it arrives at the dealership, then that dealer gets to pocket the entire hold back as they'll pay basically no interest themselves. Or if you're buying a car that's been on the lot for 6 months, the dealer really wants to stop paying interest on it so may take a lower offer just to stop the financial bleeding (granted, this is rare today, cars sell fast).

O__________O 4y ago
My understanding is invoice price the equivalent of MSRP for dealers — and like MSRP, rarely the average price paid, which varies based on number of factors; which circles back to my prior point, the dealers who are getting the best deals from the manufacturers are going to have the most room to bring down the consumer pricing, which means the smaller dealers will likely get pushed out of the market if the “markup pricing” becomes easy to get, which long term will hurt consumers. Lastly, I personally would never by a new vehicle unless it was for a highly specific need and impossible to find used, since they’re rarely a deal; average new car drops 20% in value the first year. _________ Related: https://cars.usnews.com/cars-trucks/what-is-the-dealer-invoice-price https://cars.usnews.com/cars-trucks/what-is-the-dealer-invoi...

by bradfa 4y ago

O__________O 4y ago

My understanding is invoice price the equivalent of MSRP for dealers — and like MSRP, rarely the average price paid, which varies based on number of factors; which circles back to my prior point, the dealers who are getting the best deals from the manufacturers are going to have the most room to bring down the consumer pricing, which means the smaller dealers will likely get pushed out of the market if the “markup pricing” becomes easy to get, which long term will hurt consumers. Lastly, I personally would never by a new vehicle unless it was for a highly specific need and impossible to find used, since they’re rarely a deal; average new car drops 20% in value the first year. _________ Related: https://cars.usnews.com/cars-trucks/what-is-the-dealer-invoice-price https://cars.usnews.com/cars-trucks/what-is-the-dealer-invoi...