Quote:
Originally Posted by Spaceywilly
Quote:
Originally Posted by dookie11
Hey guys, I'm hoping you guys can help me out here. What does "$xxx above invoice" mean? I don't understand how come an increased price would make it a good deal/ logical. This will be my first new car purchase, so go easy on me 
Thx!! |
Invoice is the price that a dealer pays for the car, plus usually there is a "holdback" which is a guaranteed amount of money for the dealer to keep. The amount over invoice + the holdback is the dealer's profit on the sale (they can also make money on financing and sales of traded in cars). Generally MSRP is set $1000-2000 above invoice, so if you get a deal for invoice you can save a few grand.
You can look up the invoice price on edmunds.com or truecar.com, once the car is on sale, and then use that to negotiate with your dealer. |
Which basically means let's say
MSRP: $30,000
Invoice: $27,000
Invoice + $300 = $27,300 is still a hell of a deal, especially since there will most likely be a dealer markup in addition to the MSRP. Though I might be wrong about that part.