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Don’t Pay Full Retail Price When You Could Pay The Wholesale Car Dealer Price

Even if money wasn’t so tight there’s not too many of us who would choose paying retail price versus wholesale. When you understand how the wholesale price (or dealer invoice price) is calculated, then you’ll be in a good position to negotiate a deal at the ‘real’ dealer invoice price.

When you have received the pricing information in your free price quote, use the below to determine the fair price you should pay for a new car. Then use the knowledge to negotiate with car dealers to find the one who will cut to the chase.

  • A Hassle Free/Haggle Free New Car Buying Experience
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  • The dealer invoice price is decided by the car manufacturer and all dealerships pay the same price for a specific make and model. It includes the base price of the automobile, along with any factory installed options/accessories.

  • Dealerships also have additional costs besides the actual purchase price of the automobile; such as the destination charge to have the vehicle transported from the factory to their lot, as well as dealer prep fees for things like rust proofing, pin striping etc. These fees and/or additional accessories increase the dealership’s cost of the car. While the destination charge is non-negotiable, some of the other fees very well could be negotiated.

  • There are also hidden discounts included in the invoice price such as a holdback. Manufacturers will add anywhere from 2 to 3 percent of either the invoice price or MSRP as incentive to the car dealer and it’s normally returned to the dealer quarterly. Some models are eligible for special incentives and rebates once they’re sold; giving the dealership a lot more room to negotiate.

  • On top of the above discounts, keep in mind that in the automotive industry there are regional sales incentives, volume bonuses etc. When you factor in all of these incentives along with the holdback, the true dealer cost is quite a bit lower than the dealer invoice price.

  • Dealerships also receive fleet discounts and, a big advantage you have with our free service is that you’ll be exposed to fleet/volume discount pricing offered via the internet.

Other Things To Know & Do Before You Negotiate With A New Car Dealership

As you’ve already seen by reading the first part of this article, you need to do all of your research before you start negotiating with car dealerships. The following tips will provide the icing on the cake for negotiating a great deal:

  1. When you commence initial negotiations with the dealerships that sent you competing price quotes, don’t mention that you have already received information on the manufacturer rebates and incentives; same thing applies to discussing any trade-in or financing. Hold off until after you have negotiated the purchase price. Some unscrupulous salespeople might try to charge you more for a car with rebates/incentives attached or maybe not give you a fair value for your old car.

  2. Keep in mind that the dealerships have already been taken care of by the manufacturer through their holdback (along with other incentives). Any rebates that the manufacturer is offering you as the buyer is your money. The same applies to discounts and/or incentives offered to first time car buyers, college students/grads, etc.

  3. Your new car sales transaction should be written up something like this: The dealership takes the negotiated purchase price then adds taxes/licensing/doc fees, etc. to come up with the total purchase price of the vehicle. Then your down payment (which includes any cash rebates from the manufacturer and/or the amount of your trade-in) is deducted to come up with the final purchase price.

Now you’re armed and ready to negotiate for the wholesale car dealer price, so all that’s left to do is request your free, no obligation to buy new car price quote.

Fleet discount prices plus available consumer incentives plus competitive new car price quotes = a great deal.


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Car buyers equipped with pre-approved price quotes, dealer rebates and incentives are guaranteed to pay less. Know actual dealer cost, factory invoice price, and MSRP. Pay less than sticker price, deduct bonus cash rebates, secret dealer incentives, and special internet discounts. Informed new car buyers never need to haggle. Request free competing new car price quotes and uncover the savings today!