Free preview · from the dealership side of the desk
Every new-car buyer has heard ‘never pay more than invoice.’ The problem is that invoice isn’t what the dealer paid. Between holdback, dealer cash, volume bonuses and other manufacturer money, the real cost is often a few thousand dollars below invoice. That’s why one buyer gets ‘a great deal at invoice’ and the next gets the same car $1,500 under invoice, and the dealer still makes money on both.
Knowing the layers tells you how far a dealer can move without losing money, and helps you tell a real ‘this is my best price’ from a negotiating move. It keeps you fair, too: dealers need to profit, and knowing where their money comes from lets you push on what matters. Below: each layer from MSRP down, why invoice isn’t cost, a worked example of one car’s true cost, what’s fair to pay, how to find the hidden money and how to use it in the negotiation.
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In the full guide
- The layers, from top to bottom
- Why invoice isn’t the dealer’s cost
- Worked example: the true cost of one car
- What’s fair to pay
- How to find the hidden money
- How to use this in the negotiation
- Your game plan
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