what is the invoice price for an automobile? is that how much the dealership spends or what?

Answer 1

If you want to be reasonable go 2800 below sticker. that normally is 800 below invoice. don't let them talk you above 2000 below sticker. If you need a referance go to http://www.edmunds.com to check out the cars invoice that you are looking at. they also have very helpful buying tips.

Answer 2

Okay, first off, Invoice is the cost of the car, plain and simple. Every new car dealership buys from a manufacturer, Ford dealerships buy from Ford plants, etc. Flooring, know truly as Floor Plan is an incentive for the dealership which allows them to stock an amount of vehicles that he pays interest on. Could you imagine how much money it would cost to simply stock 100 cars each averaging 24,000, do the math. Not that many dealerships actually have that much cash flow. Now, every car has its own specific markup. 2000 dollars can not be a general rule, strictly due to the fact that cheapers cars simpy do not have that markup. What you do need to know, is that every new car has what is called holdback. That is a 3 percent kickback to the dealership, no matter what he sells the car for. The 3 percent is based off of MSRP, or sticker price. If a car stickers at 20,000, the dealership is going to get holdback of 600, give or take a few bucks. So, if you take, invoice, minus holdback, that is true cost. Sometimes, there are regional dealer discounts, and dealer cash on certain slower selling models. It is basically impossible for you to know exactly what a dealership owns a car for. Typically, if it is slow moving car, with high rebates, a dealership will sell under invoice. You will not get this deal on say a Toyota or Honda, as they can typically sell all of their units for what they want, as their is a perceived value on these models. But, in the long run, if you are looking at a decently popular model that a dealership is willing to sell at invoice or a few bucks over, minus rebates, then it is a good deal. Ask to look at the dealership invoice, if they won't show you, leave......

Answer 3

Here is my take on that question:
An automobile dealer places an order from the manufacture
of product he represents or sells (Ford, General Motors,
Daimler-Chrysler, Toyota, American Honda, Nissan, etc)

The manufacture makes so many on a production run, and then ships them via auto carrier (by truck) to the requested
address, in that region.
Note: many autos/pick-ups also transported by ocean going
freighters on the Atlantic ocean side, and the Pacific ocean side, of the United States.

Now the accountability, each unit (auto or vehicle) comes with a factory invoice (what the dealer actually pays) and this
copy goes to the senior salesman, general manager's office.
Now, a sticker label is applied to the side window of each unit, showing EPA rated fuel economy (city/highway) and
a list of all options based on individual unit trim levels.

Next is the cost of each unit, dealer cost may be as low as
$2,000.00 or more, less than their sticker price that would be read by the customer.
This margin can be more, or less, depending on demographics or region of sales,.
Thats why factory invoice and sticker have so many variances
in them, the dealer always wants you to pay the higher price
tag, that way his profit margin is higher.

Best to buy at factory invoice, if you can, but remember, their
sales staff (at the dealer) are very skilled at what they do, they
know about sales psychology, and how to find and attack
your weak points, just like sharks to a bleeding fish.

Rule of thumb: go to the Internet, go to edmunds.com and find
out the true value of your auto, based on year, make and model, and then apply what they tell you to this, the dealer
should make no more than $300.00 profit from his sales
to you, per unit requested.

Thats my message, good luck.



Donald H. Sites
[e-mail]

Answer 4

se7seven is right. Most new car dealers don't actually buy their inventory from the manufacturers, they usually get them on a kind of consignment program (called "flooring"), and pay for them after they're sold. Cars do have a real invoice, but you will never see it, unless you decide to get a job as a Sales Manager at a new car dealer, and then you will be very surprised at the difference between what the invoice really says and what salesmen tell customers it says.

Answer 5

To my knowledge, it's the price the dealer paid for the car. In reality, the dealer pay factory price and has other deal so no matter what you do, he's still a business man and you want his service. You will never know how much he pay for the car but, he's going to tell you that he pay something.

Answer 6

No- Its what they want you to think that's what they spend. I got my car for $1400 below dealer invoice.
And don't tell me a dealer lost $1400, they still made money on the car.

That price is negotiable as well.