The dealer’s invoice price is the amount that the dealer pays to the manufacturer for a vehicle before any markups or fees are added. Also called the dealer cost, it refers to the price listed on the bill that the automaker gives to the dealer when they acquire a vehicle from the plant. It is usually less than the Manufacturer’s Suggested Retail Price (MSRP) and does not include additional fees or taxes. The dealer invoice price may be available online and can be used as a starting point when negotiating with a dealer for the purchase of a vehicle.
Where can car buyers find the dealer invoice price for a vehicle?
The dealer invoice price can typically be found on a website such as Edmunds.com or KBB.com. Knowing the dealer invoice price is important for car buyers because it allows them to understand how much profit the dealership is making off of the sale and it provides a good benchmark for negotiation purposes.
What is the difference between the dealer invoice price and what that buyer pays?
The difference between the invoice price and what the buyer pays is typically made up of taxes, registration fees, and other dealer fees. The average price that buyers are paying for the vehicle is called the market value which typically lies between the sticker and invoice prices. Market value is determined by factors such as demand, supply, choices, and incentives. Some buyers may end up paying more than the market value if they are after a hot-selling vehicle; however, they can take advantage of discounts or cash rebates when trying to get the most bang for their buck.
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