Don't work yourselves into a heart attack over it.? Here's a short history of "dealer invoice."
Back in the 60s invoice was what the dealer paid for the car.? Then 2 Chrysler dealers got seriously out of trust and ran to South America with several million of Chrysler Credit's money.? One was Art Grindle, who did particularly obnoxious TV ads and has the distinction of being the only dealer in Houston, Texas to have 2 employees shot by a customer.? This occurred after 8 hours of negotiations on a car that involved 5 hours of the customer trying to get the keys to his potential trade-in back.? They were on the roof.? After several attempts to leave, blocked by two very large employees, he shot them and left.? Despite Texas' well-known, "He needed killin'" defense, the customer was convicted.
So a two or three percent holdback was put in to keep dealers honest.? It was paid annually, then quarterly.? A dealer I worked for in the seventies used to tell me how much he looked forward to getting it because he was losing money until it arrived.? Considering our low grosses in a competitive market and his floor planning costs for 3-400 vehicles, I believed him.? Along the way other expenses were added to invoice, such as dealer advertising group fees.? If you see ads on TV saying, "See your local ..... dealer," that's what pays for it.
Then manufacturers started putting incentives into holdbacks.? Make 95% on your Customer Satisfaction surveys, and you get back X dollars a car.? This should improve dealer operations in an attempt t get high survey numbers, but many dealers cheat like crazy, so honest dealers who don't cheat are often penalized.? An audit of such surveys of one manufacturer resulted in this program being scrapped.
Another incentive would pay $400/car, but we figured it would cost $500-600/car to implement.? Too complicated to detail here.
The invoices I find on the internet are usually accurate.? If anything they're low because they don't provide adequate instructions on adding things like dealer advertising group charges.? Yes, the dealer gets money back.? Most sales people are not paid on it.? (A company president's speech recorded surreptitiously at a dealer meeting said that they were beginning a holdback program in order to lower commissions paid to salespeople of that brand, and a dealer would have to be an idiot to pay a commission on it.) On the other hand, there are charges against a car that don't show on an invoice.? A $50,000 invoice will have $250+/month in floorplan charges.? Cars have to be insured, too, while in the dealer's inventory.? Many manufacturers don't pay for dealer preparation any more (and there really are things to do to a car before delivery--lots more on a motor home I would think).? Technicians and guys who wash and wax cars have to be paid believe it or not.? Yes, some cheat, but it's hard to cheat on washing and waxing unless the customer is too visually impaired to drive.
But, you say, "I want that car that just landed, so I should be able to buy it below invoice because there's no floorplan charge."? Perhaps in a perfect world, but then the guy buying the car that's sat there for eleven months would have to pay more, and that's not going to happen.? He's going to want a big discount because it's been sitting there for eleven months.? One motor home dealer did offer me a lower price if I bought a car before it got to the dealer's lot than after it arrived, which I thought was clever marketing.
There are dealer rebates, but I usually learn about them from customers who found them on the internet before we got the memo.? Very few secrets there.
So you can search for the "real" invoice, or you can just try to get a good deal on what you're buying.? Good deals vary by market and by supply and demand.? If there's a lot full of a vehicle, you'll be able to get a lot more discount than if there's a 6 month waiting list on the vehicle even if you know the "real" invoice on the car with the waiting list.
The invoices you find on the internet or in Edmunds books aren't BS.? They're a pretty good tool for shopping.? I still want to find them for motor homes.? For that matter, I'd like to see the invoices at Sears.
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