Invoice price is basically what the dealer pays. Invoice means the price that appears on the invoice that the manufacturer sends to the dealer when the dealer receives a car from the factory. However, that price is almost always higher than the amount the dealer actually ends up paying to the manufacturer. This results from a variety of discounts offered to the dealer that do not appear on the invoice. The two most common discounts are "dealer holdback" http://www.edmunds.com/advice/incentives..., and "manufacturer to dealer cash" http://www.edmunds.com/incentives/step1.... but there are often others that may be based on factors such as the dealers’ sales volume for a particular month.
The invoice price does not reflect any manufacturer-to-consumer rebates, the destination charge, or the tax, title, license or registration fees.
Sometimes, however, the amount quoted as the "invoice price" includes the destination charge and sometimes it does not, so look closely. On Edmunds.com, it is always made clear.
Here is a link that provides both invoice pricing (what the dealer paid) and the Edmunds True Market Value 'TMV' price which is the price that represents a fair deal to the buyer: http://www.edmunds.com/new/index.html
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