Have been shopping for a new Lucerne and have found many dealers that are willing to sell for the 'dealer invoice' or just above it. That is great, but if that was the case, no dealers would still be in business ! Dealer invoice is obviously not the price they pay for the vehicle, but just another sales ploy ? What is the REAL dealer price on vehicles that are being sold ? Just curious.................... Zork
Actually, it is quite common to pay less than dealer invoice for a car. And... that is really the price they "paid" for that vehicle. At the time. Car sales is a complex business though. Dealers get incentives from the manufacturers throughout the year, they get end of year true-ups based on sales volume, and a host of other things that determine their actual end of year profit. It really has nothing to do with sticker price or invoice price.
You can do some google searches and quickly find out what typical dealer invoice prices are for any car. It's no secret. That's why the dealer is so willing to show you that number. You'll also quickly discover that they don't make a huge profit on the sale of a new car. On accessories - they sure do. On service, they sure do. On parts, they sure do. On used cars, they sure do.
So - why do you really care what the dealer REALLY paid for a car? It means absolutely nothing. Compare the price you negotiate between a couple of dealers, your trade in allowance, the interest rate, etc. Look at the bottom line price at the term of the loan. That's what you care about. There are so many internet resources today, that make it simple for you to validate what you think is a good deal (or not) from any dealer on any car, that there really is no reason to even ask the question about dealer invoice.
How about when offered 0% or 1.9%? Banks don't finance autos that low.
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