When watching those new car ads on TV you’ve probably heard a lot of different pitches, like; “Come on down and we’ll sell you a new car for only $100 above our invoice price”, “These cars must go! We’ll take a loss and sell the first 5 customers a new car below our dealer invoice price.”
This article is going to help you wade through those gimmicks, so you can negotiate a real deal instead of falling for a sales gimmick. Then when you’ve received your free price quote and are ready to start contacting the dealerships, you’ll have the edge during negotiations.
This can be confusing, because the dealer’s invoice price is also referred to as the factory invoice price, sometimes in ways that infer they’re two separate price-points when they’re the same thing. The manufacturer invoices the dealership for the cars they buy – all of those new cars on their lot have to be paid for up-front; that invoice is called the dealer (factory) invoice.
This invoice should be comprised of all the charges the dealership was required to pay the automaker and usually contains the MSRP (the manufacturer’s suggested retail price). It will also include the following:
Now take a look at number four again, the dealer holdback. This is a clear way for you to see that the dealer invoice price is not the dealer’s true cost for that new car you’ve been eyeing. The holdback is paid back to the car dealer on a quarterly basis, though different manufacturers may return it at different times. The delivery fees (or destination charges) cannot be negotiated because all dealerships have to pay the manufacturer to ship a new car; however, the holdback can and should be used during negotiations.
As well, the dealer invoice prices doesn’t include all of the special incentives, rebates and discounts the automaker offers the dealers and their sales staff to make sales. The invoice price also doesn’t factor in all of the special discounts and incentives the manufacturer offers the dealerships, along with salespeople, to generate higher volumes of sales. The quicker the dealer sells a car, the higher the incentive money. Combining all of this together makes it crystal clear that the dealer pays quite a bit less for a new car than what shows up on the invoice.
The Dodge Challenger is a five-seat coupe available in three trims corresponding to engine size: SXT, R/T and SRT8 392. The SXT comes equipped with a 3.6 liter-V6 generating 305hp; R/T offers an impressive 5.7 liter-V8 engine that cranks out 376 horses, with the SRT8 392 having an astounding 6.4 liter-V8 with 470 thoroughbreds.
The SXT has standard features such as keyless entry and ignition, power accessories, cruise, auto climate control, tilt/telescopic/leather encased steering wheel w/audio controls, six way power-driver’s seat with power-lumbar adjustment, mileage computer, 60/40 split-folding backseat, and more.
The SXT Plus Package offers buyers the option of auto headlights/auto-dimming rearview mirror, fog lights, leather upholstery, heated seats in the front, Bluetooth/audio streaming, upgraded audio stereo system with satellite radio and more. The SXT also offers numerous additional packages to customize the Challenger to individual tastes.
The R/T receives the SXT’s Super Sport Group with heated exterior mirrors, fog lights & auto headlights, Bluetooth & streaming audio, satellite radio and more. The R/T Plus Package includes the remaining features from the SXT Plus Package not included as standard.
The SRT8 392 offers standard equipment of the R/T; however, it adds sports seating, upgraded suspension and brakes, computer with real-time performance data and many more premium features. The SRT8 392 may be customized even more to suite personal needs.
Dodge has a long history of offering customers attractive cash-back rebates and other incentives to make their new car a Dodge. Here are just a couple of Dodge Challenger rebate and incentive offers so you can get a better feel for potential savings.
Do keep in mind that all manufacturer rebates and incentives come with an expiration date, in order to provide flexibility. Carmakers like Dodge can see at a moment’s notice exactly how many models they have sitting on their dealer’s lots, if certain models in certain regions are taking longer to sell, they have the ability to initiate a new incentive program.
These customer incentives are offered by Dodge, not the dealerships, and you still can (& should) negotiate a lower sale price on a new Challenger – one has nothing to do with the other.
When faced with two great incentives, cash back and low/0% interest financing, it can be tough to make the choice of which offer you want to accept. As these incentive offers are almost always “either or”, following are a few tips so you can make an informed decision on which offer is best for you.
Now that you know the truth about the dealer invoice price, so you’ll know that you’re negotiating a real deal on a new Challenger, request your free, no obligation to buy Dodge Challenger price quote. Start evaluating all of the current available consumer cash rebates and incentives that Dodge is offering in .
Then review the competitive price quotes and internet incentives that competing Dodge dealers are offering you, so you’re holding the winning hand when negotiating a real deal on your new Dodge Challenger.