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 ?
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
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
Dealers are not in business to loose money. They add processing fees,
Liscence fees and internet fees on top of the profit they make. Finding an
honeat dealer is like looking for a virgin hooker. Best advice is not to
tell them any financial information up front. Go elsewhere for financing and
do not use a trade in. When you find the vehicle you want check on line,
like at carmax and see how much a new one cost with them. Costco and Sams
have car buying programs too.If you have already arranged financing you can
go anywhere and buy a vehicle. Leave and look elsewhere. Alot of people do
not pay dealer processing fees either. Once again leave and look elsewhere.
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