How to Purchase a Vehicle Under the Dealer Invoice Price

We all want to get a great deal on a vehicle, but we don't always know how to do it. Often we are susceptible to salespeople that are in a position of power because they hold the keys to all the information we wish we had. Well, we are going change that by giving you essential information to get the vehicle you want for a price under the dealer invoice price.

First you need to understand that the price you need to focus on is the DEALER COST-not the invoice price. The dealer invoice is often quite a bit more than the dealer's true cost so buying a vehicle at or near dealer invoice is not the deal you might believe it to be.
The invoices for dealers can have between 2%-3% holdback that is often reserved for fleet customers. The regular person on the street has no idea of this special discounting procedure. Also, the vehicle manufacturer extends rebates and delivery allowances that can reduce the dealer's cost by hundreds and sometimes thousands of dollars. All of these reductions in the dealer cost can make the spread between the dealer invoice and the dealer's actual cost approximately $3,000. So the last time you purchased a vehicle and you got it near dealer invoice the dealer still made a few grand off your sale.

Most dealerships will allow the bargaining process to work down to a $1,500 profit. Therefore, you need to take this information and use it to your advantage. Find out the dealer invoice and you will then have a good idea for what the dealer cost is. Once you know that you are in the driver's seat to get a great deal on a vehicle.

But here is the great part of this process-you do not have to go to a dealership-you can do this online and get what you want for the price you want in a much more efficient manner. Submit your car requirements, and basic contact information at our Dealer Price Quote Request Form. This is the beginning of the process to get these companies to compete for your business. This service does not pressure you and has dealers that will not force you into something you do not want to do. They understand the clientele and know the internet business of selling vehicles to an informed customer. Most important: they will give you the information you need (invoice prices, rebates and incentives, and the dealer cost) for free and usually within twenty-four hours with no haggling. OK. Once you have filled out the forms you will be emailed the Dealer Invoice and the Manufacturer's Suggested Retail Price (MSRP) for the vehicle you want along with the applicable rebates. Plug in the numbers they give you into the following example:

Invoice price: $25,000
Holdback: $750
Rebate: $2,500

$25,000 - $750 = $24,250 dealer cost. Buying this car for $24,250, you bought $750 below invoice at the dealer's cost, however, because there was a rebate of $2,500 the dealer profited by that amount because they kept the rebate as profit.

REMEMBER:
Dealer Invoice + Destination Charge + Options - Holdback = True Dealer Cost
True Dealer Cost + taxes/Licensing - Rebate = Your on the road price

Because you are an informed consumer and you have companies competing for your business you will get a better price for the vehicle you want than a person who walks into a dealership uninformed and lets the salesperson sell a vehicle to them.

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