Dealer confirmed retail and invoice pricing on BRZ
 

Got some new info:

https://lh4.googleusercontent.com/-l...brz_retail.jpg

Thanks.

Thanks bro!

Thanks.

I was in car sales about 8 years ago and at that time a $25k car had about 10% margin between MSRP and Invoice.. Now they are down to about 5% or less. It seems they are shifting the profit margins into holdback and marketing accounts. Smart on the seller side because the general consumer still things "invoice" is what the dealer's cost is. So they think if they get invoice that they got a great deal and got the dealer to come down as much as possible.. But, the dealer can still sell the car for invoice and make over $1k not including financing and other items.

I was really hoping the invoice margin was going to be bigger because I have that price pre-negotiated.. I could get the FR-S with the college grad $1k rebate as well, but I like the BRZ much more.

bumped for the noobs who are too lazy to search and just post new threads asking about invoice....sticky maybe?

Do they get the $550 holdback if they sell the car above invoice, or is that only if they sell it at invoice?

Can someone walk me thru what all the dealer invoice, holdback, floor plan etc costs are for the dealer. I want to see how much money dealers r making for selling this car at msrp. Thanks

Dealer gets to keep holdback, marketing, floor plan and gas allowance regardless of what price they sell the car for.

holdback and marketing are fictional categories designed to help the dealers keep more profit. They used to lump all that margin into a lower invoice price. But, since customers, buying groups like truecar and Costco, and the general proliferation of the internet has made all consumers think they deserve invoice pricing, the dealers and manufacturers have moved some of that profit into other categories.

In theory, the holdback was always just a little reserve to help the dealers be competitive. The marketing thing didn't exist when I sold cars.. but the theory now is that it helps them cover their sales and marketing expenses. Floor plan has always existed.. the dealers have a line of credit to cover the cost of the cars they buy from the manufacturer called a floor plan. The floor plan credit is designed to cover 30+ days of interest on that line of credit. Gas allowance clearly covers the cost of gas while on the dealer lot and for a full tank for the buyer to drive home on.

what was the pre-negotiated price?

Thank you!
So long story short, the dealers make money

House always wins.

Here is how I understand this, someone correct me if I am wrong.

Let's use a Limited 6MT as the example:

Basically, while SOA lists an invoice price, the dealer also gets to keep hold back, marketing fees, floor plan, and gas fees as part of any deal they sell.

So it keep things really simple, if you want to know exactly what it costs the dealer for this car here ya go.. (this assumes that the dealer will pass on the $770 destination and delivery fee directly to you ...which they will)

Model DZE
Invoice = $26,882
Minus hold back - $550
Minus Mkting adj - $550
Minus floor plan - $200
Minus gas. - $75

Real cost of car to dealer $25,507

Purchase car at MSRP $27,495

Profit $1,988

Even more if the dealer's a **** and doesn't fill up your tank, which I've seen in the past. Don't forget their doc fees and other some such.