![]() ![]() The dealer gets the holdback from the factory after they sell the car. If you aren't shown how much it is you can estimate it as 3% of the invoice price minus destination and delivery for domestic cars, 2% for imports. Explains Factory Holdbackĭealers are charged a "holdback" by the manufacturer. Knowing the true cost is your most powerful weapon when negotiating with the dealer. Don't fall for this pitch because it's not correct. You'll hear a lot about the "factory invoice" and the salesman will try to make you believe that it shows their true cost. Magicians have nothing on car dealers when it comes to keeping secrets and how much they actually paid for the car is their most important secret. Invoice Price - Factory Holdback - Factory To Dealer Incentives = Actual Cost ![]() The dealer's actual net cost of the car is usually much less, made up of 3 parts: I have done extensive research with auto industry insiders and have verified this to be true.ĭealer Cost is Not the Factory Invoice Price! Dealerships will gladly accept a 5% profit. To be fair for both sides, you should make an offer of 3% - 5% over the actual dealer's cost, not above the invoice price. Your Offer Should Be 3% - 5% Over Actual Cost If they refuse your request, I will show you how you can get the information online. It will take some time and research so you must be patient.Īt the dealership, one of the first things you should do is ask them to show you the factory invoice for the car. Then you will be able to offer them a deal that gives them a fair profit.ĭon't just make up a number for the offer, make an educated offer based on the dealer's actual cost. In order to calculate your offer, the first thing you have to do is find out how much they paid for the car. Where to Find Invoice Prices and Secret Incentive. ![]() How Much Did the Dealer Really Pay for the Car?.Your Offer Should Be 3% - 5% Over Actual Cost. ![]()
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