* A new car's invoice price is the manufacturer's initial charge to the dealer. Keep in mind that the invoice price also has a little bit of profit for the dealer called dealer hold back This is usually higher than the dealer's final cost because dealers receive rebates, allowances, discounts, and incentive awards. Generally, the invoice price should include freight (also known as destination and delivery). If you're buying a new car based on the invoice price (for example, "at invoice," "$100 below invoice," "two percent above invoice"), and if freight is already included, make sure freight isn't added again to the sales contract.
* The invoice price is what the dealership is listed as paying before they get any of their discounts. You can check out the invoice price from websites, and when you buy a car you should shoot for around this price. If you pay MSRP on a car without anything added for free, you're paying too much (unless it's a Saturn, Scion, or hot car like a Prius)
Basically they get a sales volume bonus from the manufacturer for selling a lot of their cars.By the way, what is 'at invoice'? It's just a nice little phrase that gives you the impression that the dealer is selling you the car at cost. What you don't know is that the dealer is selling you the car 'at invoice' meaning the cost at the bottom of YOUR invoice.Clever wording will always catch people out!
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