Edmunds Answers

Answers

  • perryjo 08/02/08 11:19 pm PST

    Never trust a dealership except for a fixed price dealership like Carmax or Saturn. Dealerships have what is called the "invoice" price on the sticker of the car. This is what the dealers "claim" to have paid for the car. I am not sure how valid this price is though.

  • coldcranker 08/02/08 11:34 pm PST

    You can find the "invoice" price on the http://www.edmunds.com website. The invoice price is the one price that is closest to the wholesale price the dealer paid to the manufacturer. Sometimes the dealership gets a little manufacturer-to-dealership money when they sell some cars, but this is very difficult to find out as they usually keep it secret and might deny it exists. However, the wholesale invoice price, if you get that in a deal, with rebates subtracting even more from that price, is usually about the best one can do. It depends on whether or not the vehicle is in great demand or not. If I pay the invoice price for what I want I feel pretty good. On the edmunds site, click on "new cars", then select the make and model, surfing away until you start to see specific prices for specific models of cars.

  • simpilot1 08/03/08 6:22 am PST

    The answer is you can't find out.

    The invoice price is readily available on many websites. Also available is "holdback amount" which is the additional money the dealer receives when the car is sold. Holdback varies between 2% and 3% of MSRP and is intended to pay the finance charges the dealer pays to finance the cars in inventory for 90 days, Of course if dealer sells the car sooner it's additional profit. The dealers also recieve various other "perks" from the factory which can be cash based on total volume, advertising assistance which sometimes ends up being profit, expense paid vacations, and gifts of all types. On some slow selling models the dealers may receive thousands more in factory to dealer assistance. At most dealerships even the sales managers don't know how much these extras amount to, and they are substantial. Only the dealerships owner knows the true cost.

    Consider how much money it costs to build and maintain a delership (millions) and pay salaries and you will quickly realize that cars have to cost far below invoice if the dealership is to remain in business.

    All you can do is make an offer and see how they respond. Cars can be bought for well below "invoice" if they need to sell a few more cars to get some of these extras. That's why it's good to shop at the end of the month and best at the end of a quarter when the quotas for these extras kick in.

    Source: http://www.edmunds.com/advice/incentive
    s...

  • markjett 11/12/11 10:56 am PST

    how do i find what dealers pay for cars


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