Actually it was federal law that required window labels and MSRP pricing so that consumers would know the price from dealer to dealer. As to the invoice which includes hold back, that IS in fact the price the dealer pays for the vehicle, no matter what you may here in the HG's to the contrary. Anything else would be a violation of franchise law. Dealers can and do earn repayments from manufactures but they must be available to ALL franchise holders, large or small. If a dealer does sell a vehicle at invoice the only 'profit' he has is the 2 or 3% holdback. Most of that is generally eaten up in other payments he has to make to the manufacture. IF a dealer where to sell all of his allocation at invoice he would go bankrupt within a year because he simply could not earn enough profit to sustain the business. At to the MSRP the manufacture car set that where ever they wish and what the market will stand. Several years ago when import dealers were averaging $2,500 OVER MSRP on every sale the import manufacture simply raised the MSRP $2,500 so that they earned the extra money not the dealers. Imports today, even those assembled in the US of foreign parts average 20 to 30 percent more than the domestic competitors for similarly sized and equipped vehicles even though they pay their workers less and offer fewer benefits and less desirable pensions.. Over the past years domestic have raised the MSRP to match the imports but then they offer rebates to get the sale in the end. No truly astute buyer today would buy a foreign car if they really understood automobiles, given the good quality of domestics today and the 20 to 30% savings in drive home pricing.
mike hunt
Raymond Yeung wrote: