Is it common to get below invoice on cars?

[Braves]

My family definitely needs a new car, as we now have 5 full-time drivers with only 3 cars, and one of my friends dad is a sales manager at a local dealership. He told me he could go below invoice, and when I relayed this to my mom she was like that's not a deal, we always get below invoice. As I understand invoice is what the dealership pays for it so supposedly they'd be losing a little bit of money on the transaction, which I highly doubt but i can't really say for sure. She claims to have gotten below invoice on all the cars they have ever purchased, which is a gigantic cadillac, a firebird trans am, mazda minivan, and a lexus es300. I personally think she's wacko and has gotten invoice confused with MSRP, but i've never actually went through the process of purchasing a car.

 

[d33pt]

listen to your mom..she is right.. invoice is NOT dealer cost and you should never pay more than invoice unless it's a model that's very rare and popular..

 

[Sluggo]

Dealers pay invoice minus the holdback, which is about 3% of MSRP (on average).

So you could buy a car with MSRP of $33,000
At actual invoice of $30,000
Dealer still makes $900 bucks on the deal.
Thats the "front side" of the deal, the dealer can still make some big cash on the "back end" of the deal. The back end concerns the Finance & Insurance area of the dealership. The dealer basically gets money back from whoever finances the car for you, basically for the dealer selling you the company's loan. And there is stuff like credit life and other "options" on the finance contract that can add up to some bucks for the dealer.

 

[compuwiz1]

Sometimes, you can get a car at or below invoice. Rebates also help your cause.

I had to chuckle though, as I had a new car customer come on the lot the other day, saying "I want a new Cobra, but I will not pay more than invoice for it!" I just said, sir you are correct...have a nice day.

 

[rahvin]

There are three bloody invoices people. There is the dealer invoice that you will never ever see, the sales manager invoice and the customer invoice. The customer invoice is the one you can see and access all over the web, you are generally getting a good deal if you get the sales manager invoice but you will NEVER see the actual invoice for what the dealer paid for the car.

 

[compuwiz1]

rahvin, let's not start a comspiracy theory here. You do not know, although you are simply suspicious that you know. The invoice that arrives when a car is shipped, is the very same one that is used by the sales manager. No there is no customer invoice either. All the info is on one consistent document, although several copies of that same invoice are available to various dealership personel, it is not EVER altered. That is illegal. Having been a finance and sales manager for many years, I know this.

 

[ProfessorFate]

The price a dealer pays for a car can change too. That $30,000 sedan they paid $27,000 for back in March may only cost $25,000 to the dealer after incentive kickbacks in August from the manufacturer or after hitting sales incentives. Don't forget too, the dealer pays flooring costs (interest to the bank) for all those cars they have in stock unless the owner has so much money he pays cash for them in which case he probably nails the sales department lowerring their net.

 

[Mill]

Originally posted by: compuwiz1
Sometimes, you can get a car at or below invoice. Rebates also help your cause.

I had to chuckle though, as I had a new car customer come on the lot the other day, saying "I want a new Cobra, but I will not pay more than invoice for it!" I just said, sir you are correct...have a nice day.

I can't help it that Ford decides to give the Cobra the balls to compete with a LS1 and the dealers decide to gouge every customer.

 

[PsychoAndy]

Originally posted by: compuwiz1
rahvin, let's not start a comspiracy theory here. You do not know, although you are simply suspicious that you know. The invoice that arrives when a car is shipped, is the very same one that is used by the sales manager. No there is no customer invoice either. All the info is on one consistent document, although several copies of that same invoice are available to various dealership personel, it is not EVER altered. That is illegal. Having been a finance and sales manager for many years, I know this.

Interesting.

Basically, you can get BELOW invoice by using a nice rebate.

Example: Chevy at....$28,000 sticker. Invoice is $25,000. Using a $3000 rebate, you can go to $22,000.

Its not rocket science people!

Oh, and it helps to have a large asian woman cursing out the salesman right after finding out how much $ dealer fees are. I dont care how good a salesman you are, if I get mom to start bitching out someone in cantonese in the showroom, you're not selling ANY cars.

-PAB

 

[compuwiz1]

Its not rocket science people!

That pretty much sums it up. This industry is not some kind of voodoo. The information is out there. Always remember that if you feel you got screwed, it is pretty much your own fault. You are free to leave a dealership at any time, as there are no locked doors or anything keeping you from walking out. If you don't feel good about your deal, then leave. Never sign up for something you do not accept or understand completely.

There are of course, ferengis out there, who any industry despises. I somehow fail to understand the concept of how a customer can go to work at a job to feed his family, but yet he feels that the people who go to work in the car industry, also to feed their families, are somehow not entitled to a living, just as this customer is.

A fair profit is what makes this country run. It will always be this way. Some jack asses think they are above contributing, or giving anything back. While those types represent a small portion of the customers we see, some of them should get a clue, as to why, when they arrive on a 105 degree day, asking a salesman to make zero money, but they want to drive 4 different vehicles, why they might be told, that they might rather shop elsewhere, don't ya think?. (and yes, in the industry, everyone knows what a "jackoff", timewaster, free-coke sucker, or DASR. <- "Dumb Assed Sticker Reader" is)

Note, not a message to most types of customers, just a small handfull of jackoff types.

 

[T2T III]

Just one more note concerning invoice prices. usually, the invoice prices that you'll find on Edmunds DO NOT include advertising fees that the dealer can charge. If you're aware of a dealership selling their cars at one penny over invoice during a sale, then do your invoice calculations and then add in up to $400 or so to cover these advertising fees and you'll pretty much be in the ball park for your purchase price for that dealership and the sale they're running.