Cay buying question

lykaon78

Golden Member
Sep 5, 2001
1,174
9
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If I purchased a car at invoice (25k), pay cash, and have minimal upgrades (floor mats only). What does the salesmen make on that transaction?

Is it the dealership that eats the profit or the sales guy?
 

Puffnstuff

Lifer
Mar 9, 2005
16,203
4,884
136
Use kbb and see what the dealer actually pays for the vehicle vs. invoice vs. msrp. Automakers give dealers quarterly rebates, known as kickbacks, that vary in % based upon the msrp of every vehicle sold so if a dealer shows you their invoice paid and you only pay that then they still get the rebate at the end of the quarter making money. Anything that they make above the invoice price will be more profit and the salesperson's salary depends on his contract with that particular dealership.
 
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NoTine42

Golden Member
Sep 30, 2013
1,387
78
91
A sales man won't take the time selling a car where he doesn't make $.
A dealership wouldn't approve a sales transaction that doesn't make them $.

There may be a few, isolated cases where a dealership need to sell X cars by the end of the month so that they can be in the "good dealership" ranking so that they can receive more of the profitable cars from the factory next month.. So while that specific transaction looks like a loss, the dealership actually makes more $ because of that deal.
 

Puffnstuff

Lifer
Mar 9, 2005
16,203
4,884
136
Several dealerships advertise selling at invoice so once you decide what you want search to see if any of them are advertising invoice pricing. Obviously if the model is the best seller in the segment they won't do it. Best times of year to buy are when the new model year is competing with the old and at the end of year when sales taxes are almost due. When incentives such as cash back are present it usually signals that they're trying to move inventory.
 
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TheGardener

Golden Member
Jul 19, 2014
1,945
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How about offering to buy at less than invoice? Agree with others who say that you shouldn't care how much the salesman or dealership make. Put out email feelers (internet quote) to all dealerships within a 50 mile radius of where you live. Or whatever number of miles makes sense to you. Good luck.