How to find the DEALER INVOICE price of a car, and how to use it in negotiations with a dealer 

My stealership in the 90's used to show invoices to customers ,, not factory invoices but invoices from the parent of the dealership... They used all the same fonts and formats ,, only disclosure it wasn't factory was a line at very bottom or top which always seemed to be cut off by the copy machine. Funny ,, it was always 4-5% above the real one.

MSRP and invoice prices are made up #s! Which is why there are holdbacks. Anything to keep the #s a mystery and consumers overpaying.

@@briantracy1324 adiaà

How much are holdbacks in general and in the high range?

Kill the dealership. Send the car straight to me like Tesla!!!!!!!!

27k kkb value in 2018 accord at the same time Brand new 2020 is also 27k msrp. All the dealerships around me keep telling about kbb bs value.

@@tommydo961 True but now that new 27k accord is going for 35k easy or more so used is still cheaper but its all bs.

CPO negotiation would be huge

CPO is a waste of money. They dont do anything special to the vehicles. You are essentially buying an extended warranty on it

@Victor Howard...Sorry for your loss of Father....when the relationship is good, it is a golden memory, and a strength to draw upon! Take care, and you are not alone. Thanks.

A dream come true for the two of us. Lucky indeed.

Hmmm

There's still haggling that goes on at the end. They want you to THINK you're getting a deal but in reality, you probably aren't getting the BEST deal possible. For example, in my last dealing a few weeks ago, I haggled at the end for an additional $600 off and basically got it. This bought the price of the car (not including taxes and fees) to actaully $200 below invoice. The dealer still made money on the car, and I got a good deal. But their "no haggle" price was still about $500 above invoice. So while they are cutting to chase a bit more, you still have to haggle a little to get a good deal. Always start out low, even below their "no haggle" price. Because I bet that half the people go "That's not a bad price" because they compare it to MSRP and see that it's, say, $2000 less than MSRP. MSRP price is a joke. I never pay attention to it. I'm concerned about invoice price and a "great price" given by sites like TrueCar and others.

Thank you all for the info. I'm looking at purchasing a new volvo xc60 and hate haggling but want to get the best deal. Knowledge is power.

Absolutely! We’ll include more tips on pricing and making offers on used cars in our upcoming videos. Stay tuned for more insights! If you have specific questions, feel free to ask.

How do i contact a. Auto broker in my town of dallas texas. I dont have a computer. My cell is cheap Im on limited income. I never did know this about a auto broker. Im 74 yrs old. So i will always keep the phone number handy. I appreciate it. In the past yrs. Of car buying i felt like i never got a good deal at all. I never had the money to put down. I didnt have muc credit. I never had cash to buy a car new or used. Dealerships has always helped me get a car. But i paid the high price to. So i dont know anything about wheeling and dealing haggling etc. Ive even ask a few coworkers men to go with me to shop for a car. That was a joke to. The guys bragged about how much they new about car buying. That was a big mistake. It was very embarrassing. So i did know exactly the choice of vehicle and best engines etc. I ve also ask for walk out price with ttl. Etc. I still got a raw deal. I also walked out before. The price was over msrp. Im a mess. I dont know a good deal if i saw it. Cuz i just dont know. So i neef some help. What is all the incentatives discounts with no car washes to charge me for. No destination. Charges. What else is on this list to know of not to pay at all. How much under marp. Is a good deal. Besides thinking the price under would be 4000.00 under plus all incentives plus never ever to pay price that dealers. Will never tell us. That way after all that is deducted then i can say what will you sell me the car for. Only base price. This should be 1st question of course. So they did not tell me. So i walked out. Went to another place. Samething. So the third place. Samething. I had no choice. I was almost out of gas. I got a new small car with a full free tank of gas. My car payments was 100.00 cheaper. I was very grateful to get it. I had gas and something to eat at the jack in the box til payday came. I made minimum wage. I had insurance at work. I just lost my mom nov. 25th 1980. I was homeless. My brther helped me what he could with food. In may 1984 i got a 1984. Toyota tacoma pick up small one. I. Just had left eye surgery. I got a unemployment check of 74.00 every two weeks. I guess the salesman felt sorry. For me. Boy was i thankful to get the little pickup. I did warehouse work later. I stayed with my brother until i was well. This is a true story. I dont remember what i paid for the truck. So i guess i got a good deal after all. Thank you . the videos is super great. I. Enjoy the videos.

Jeff, I beg to differ. The invoice is the invoice but there are other ways that manufacturers help dealers make profit, such as hitting and surpassing monthly and quarterly sales objectives set by the manufacturer. Oh, and dealers make the bulk of their profit off of the parts and service departments, it is not just sales.

I do appreciate your videos and your response but I do need to disagree. Just do the math. No business can make such small margins and support physical locations, advertising, employees, utilities making a few hundred per car. It really shouldn’t be called “invoice” as that’s a farce. It should be called “intro price” or something else than invoice. Dealerships by far make the most profit on used cars. They totally control what they pay and what they sell a used car for. I agree on monthly bonuses, spiffs and incentivizing manufacturers will do to push the metal. BUT your argument on parts and service bringing in the bulk of dealership profit. We all know independent mechanics and the profits margins are small. The only way independents can stay competitive with dealerships is buying charging less and providing better service. I love it how many dealerships you’ll hear say that when you trade in a car to them that their service and or parts department charges the sales department what a outside customer pays for service or parts. Gimme a break they pay cost. Under the GM and owner the service/parts isn’t going to profit of sales department for anything. I’m sure they do report up different p&l for monthly performance metrics. In order of what department brings in the most profit it’s: Used cars, new cars, finance, service, parts. Now to give you the benefit of doubt you may not have seen what the dealership really pays for new cars as that might have been held close to the chest by the GM and or owners. Owners don’t make millions off service and parts. Do we all really believe that a mass produced Tahoe/Suburban cost manufacturers 60k to produce then dealers pay 65k and we as consumers pay $65,500?? That is not sustainable for any business. Let’s not fool ourselves.

@@jeffpalmer9542 Do you have any idea how much profit they make on parts and service? They charge the book value on the time of labor for any repair. If the book says 1.5hrs I'd bet they do it in .5 to1hr. Plus if their service rate is $120/hr they're probably making $50 to $90/hr in profit. Multiply that by 5 or 10 service bays x 8 hours[or 14hrs in labor by the book value] and that adds up to a lot of cash. Then they mark up the parts by up to 150%! For every vehicle they sell they'll make a minimum of $300/year on maintenance and warranty work. A dealer would have to be insane to tell his sales and finance staff not to sell anything if they don't make X amount in profit.His main motivation should be to move as many cars as they can out the door. Even if a dealer doesn't make any money on a sale I don't think he'll lose any sleep over it.

You're correct. Dealer invoice means nothing.

what do you recommend when negotiating then? invoice, otd price etc?

Short answer: walk out. Always keep in mind that they are not doing you any favors by selling you a vehicle. You're doing them a favor by buying it.

@@dunkone40 True. The pressure is on them. You can walk out and go elsewhere. Just watch them run after you...

@@CyberSkunk90 wrong. The dealership can alter the real numbers. So So wrong.

Thanks for saving me 18 minutes

Man you're right its so complicated btw: have you had any succes. Im trying to buy a new car and Im from Puerto Rico

Don't be naive. The invoice doesn't show you any factory kickbacks they get. And your probably getting a crappy trade in price. Go jump in a shark tank...it's safer!

So am i

These days they’ll tell you to go fly a kite

They don’t, my understanding is no one except the owner of the dealership and the company actually know what the dealer really pays. But knowing invoice is better than nothing.

Probably not