Find the exact car you want at the lowest price & keep dealer profits in your pocket. Get access to cheap new cars selling below invoice and exclusive sale offers in your town.
You can save hundreds to thousands of dollars if you use the dealer invoice and the dealer holdback to compare new car prices. Comparing car prices from multiple car dealerships is a sure way to save money on any type of new vehicle.
Request a FREE online price quote and you will instantly discover the following:
There is no haggling involved. Requesting a FREE price quote is an easy, safe, and hassle-free way to shop for any type of new car. There is no obligation to buy! Get multiple price quotes and get the latest offers and best deals delivered straight to your computer.
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Dealer Invoice
Car dealers run an independent business. Car manufacturers such as Ford and GM permit the car dealership to sell their lineup of new vehicles, but the dealer has to pay for the vehicle before they can sell it to the general public.
The dealer invoice shows the price the manufacturer charges the dealership for each new vehicle, including any options installed by the factory. Remember, all car dealerships pay the same price for a vehicle from the factory. The dealer invoice does not contain individual fees and other charges that vary among each car dealer. The dealer invoice is also commonly referred to as the invoice price of the car.
MSRP
The Manufacturer’s Suggested Retail Price (MSRP) is also called the ‘sticker price’. In essence, the MSRP is the average price the manufacturer wants car dealers to sell the car for. Remember, the MSRP is fully negotiable and should not be your final price.
Dealer Holdback
The dealer holdback is a contingency fund for the car dealership. They use the dealer holdback to pay for selling expenses, advertising costs, and even to pay interest for the dealer floor plan.
The holdback allows dealerships to replenish their inventory and earn more profit at the same time. A car dealer has an average period of 90 days to sell each car.
If a dealership manages to sell the car in 7 days after it was delivered from the factory, the dealer might be able to keep the entire holdback. This is because the nominal interest charges incurred under the floor plan are small enough to be included in the dealer invoice of the car.
On the other hand, if the car dealer does not sell the car within the 90-day period, then the dealer holdback will be used to pay the accrued interest on the floor plan financing.
Although this can seem confusing, there is one important message to learn about the dealer holdback: deducting it from the dealer invoice will help you save anywhere from hundreds to thousands of dollars.
How is this possible? The dealer holdback is equivalent to around 1% to 3% of the MSRP or the dealer invoice (depending on the car manufacturer). For example, an SUV with a $45,000 MSRP will give you a holdback of $1,350 using a 3% holdback rate. If you do not to take this into consideration when negotiating the price, then the dealer earns an additional $1,350 from the sale of the SUV. That money could have possibly ended up inside your pocket.
Competing car dealerships will help you save money. You can use the dealer holdback as a negotiating tool to enjoy more savings on a new car. Here’s how:
Making dealers compete is a sure way to find the best deals on the best new cars. Use the dealer invoice and the dealer holdback to negotiate a fair deal — and pay less than what others are paying for the same car. Get started today!- Request your free price quote and start comparing prices from trusted competing car dealerships in .