new vehicle?

Question

I am confused i have been reading that everybody is supposed to pay a little over invoice of a new car correct?
Well i just bought a new car about 3 months ago and i paid under invoice. How much money did the dealer make the asking price was about 1900 and the invoice was about like 17,950 and i paid 17800.

Answer 1

Honestly, with rebates, the final selling price is almost always under invoice, as the rebate is as good as cash to the dealer.

If you paid 17,800 including rebates, the dealership saw you coming and kept all the rebate money as profit.

If you paid 17,800 and then they took rebates off in addition, you got a good deal.

In addition, dealerships get money from the manufacturer for the number of units sold in addition to incentives on each vehicle. Sometimes, you need to loose a bit on one car to hit the quota later on and make money back.

And remember, a dealership that loses money all the time won't be in business very long.

Answer 2

You got a good deal. Enjoy your vehicle and stop being confused.
You could give the dealer an extra thousand dollars or so to take the price above invoice it that will make you sleep better.

Answer 3

Usually when a dealer buys a car to put into its inventory, the dealer makes at the very very least, a 2,000 dollar profit. Usually it would be 3,000 - 4,000 dollars that they make in profit. All they were doing was lowering the price of the car to lure you into buy the car, while they still make a little profit. Don't worry about it, it is their problem not yours.

Answer 4

The dealer still made money on the deal or he would not be in business vary long

Answer 5

Dealers get rebates and incentives that you don't know about.