LOLyourFACE's another car buying question:

[LOLyourFace]

Could someone give me a clear definition of MSRP (Mfg Suggested Retail Price) & Invoice price?

Is the invoice price what the dealers paid to purchase the vehicle, and they make money off MSRP - Invoice?

I'm confused.

 

[Mill]

Jesus Christ. Just buy a car already. Damn.

 

[Atrail]

www.edmunds.com
is your friend

 

[LOLyourFace]

Originally posted by: Millennium
Jesus Christ. Just buy a car already. Damn.

thanks for that input.

 

[Yossarian]

MSRP = "rape me" price

 

[Spac3d]

Originally posted by: Millennium
Jesus Christ. Just buy a car already. Damn.

 

[Sluggo]

Basically invoice is what the dealer is "invoiced" for the car from the factory. There is also a dealer holdback on the car to help the dealer finance his floorplan.

MSRP is what they would like you to pay, but there is plenty of room for haggling down from MSRP to around the invoice amount (or much less depending on whether there are factory incentives on the car).

SO the dealer CAN sell the car for invoice price and still make money from the dealer holdback, IF the car hasnt sat on his lot too long. There may also be factory to dealer incentives on the car, which you as a consumer will never know anything about.

The dealer can also make money on the "back-end" of the deal, the Finance & Insurance part of the game. GMAC (for example) will give the dealer a commision for getting you in the car on a GMAC contract. There may also be commisions for the dealer if you buy credit life insurance, or a extended service agreement.

There are basically tons of sites all over the internet which explain ALL of this in detail, do plenty of research.

 

[psteng19]

Originally posted by: Millennium
Jesus Christ. Just buy a car already. Damn.

LOL, my sentiments exactly.
He even posts about his non-existent car in other car threads not relating to his own.

Reminds me of Kenji(?) who started a ton of car threads when he wanted to buy a Civic, but worse :Q

 

[pulse8]

Originally posted by: Millennium
Jesus Christ. Just buy a car already. Damn.

Thank you for posting that so I didn't have to.

 

[Vic]

MSRP = Manufactured Suggested Retail Price. This is the retail price of the car.

Invoice price = dealer's cost for the car. This is the wholesale price. This is the price that the dealer would pay for the car if he didn't sell it. For most dealers, this information is something that they absolutely do not want you to know, but you can find it at http://www/edmunds.com

Holdback = After the confirmed sale of the car, the manufacturer will pay the dealer an amount between 1.5% to 3% of the invoice price. This is the holdback, or "dealer incentive."

Here's the basic guideline: dealers must sell cars. For everyday that a single car sits on their lot, they lose money by (1) the cost of the lot space, plus crews to keep the car clean and presentable for sale, and (2) most dealers do not buy cars direct from the manufacturer, they finance them, paying back the short-term loan through the sale of the cars. The longer they hold the cars, the more thay pay in interest and fees for that financing, a difference that could make or break them.

The ideal is to buy the car for the invoice price or slightly below. NEVER pay MSRP. If a dealer has a mark-up price over MSRP, laugh at it. How the uneducated car buyer can tell when they're paying too much for a car? They have good credit and the dealer is still asking for a down payment (this would be because of collateral ratio restrictions from the lender). In fact, in these days of 0% financing, I advise that people put absolutely no money down on a car, finance it for no more than 48 months (but make the payment is affordable), and then take the money that they would have use for down payment and put it in the bank (and NEVER touch it).

Now go buy the freakin' car goddamnit!