What's the difference between dealer cost and invoice?
#3
To add to the thread... whats the difference between dealer invoice, dealer cost, and kick back? I am not in the biz, but I thought cost and invoice were 2 different things. Anyone know for sure?
#4
JK Enthusiast
Thread Starter
I know there are sometimes holdbacks and incentives from the factory for the dealer to use as they please or pocket. So you're saying there's no holdbacks then.
Not trying to be a pain in the butt, just trying to decide to snap up an offer to order a JK at invoice from a local dealer, or wait to hear from a family friend who owns a dealership and may get me a better deal.
Not trying to be a pain in the butt, just trying to decide to snap up an offer to order a JK at invoice from a local dealer, or wait to hear from a family friend who owns a dealership and may get me a better deal.
#6
JK Enthusiast
Join Date: Jun 2007
Location: Austin, TX
Posts: 142
Likes: 0
Received 0 Likes
on
0 Posts
Its hard to tell...what the dealer pay differs from dealer to dealer. Each dealer may or may not get certain insentives. Hold backs, the # of units bought. Its so hard to tell. Some dealers will not budge from the "invoice" they show you. That piece of paper doesnt mean anything I can type one of those up in word my self. Some will knock off another 1500 from the invoice. The sticker Price on mine was 22,8somthing...and I think the invoice was 21,1 or 21,2 something like that and I got it for 19,900. But like I said I think it differs from dealer to dealer, though all dealers will show you the same invoice price...But what each dealer actually pays is no telling?
#7
Trending Topics
#8
Found this on another site:
The"invoice" on the window is NOT the true cost of the car to them. All the big automakers have "holdback" monies that are deducted from the invoice before it's printed. The dealer then can claim they are selling you the car at invoice....and they'll get their holdback money quietly from the manufacturer at the end of the month, or the quarter. The holdback funds are supposed to be special advertising deductions...and they can actually be upwards of 3% of the invoice of the vehicle. Thus...a $15,000 automobile might generate $450 in holdback funds for the dealer....not too shabby - and a hidden fund that the average consumer is completely unaware of when negotiating.
The"invoice" on the window is NOT the true cost of the car to them. All the big automakers have "holdback" monies that are deducted from the invoice before it's printed. The dealer then can claim they are selling you the car at invoice....and they'll get their holdback money quietly from the manufacturer at the end of the month, or the quarter. The holdback funds are supposed to be special advertising deductions...and they can actually be upwards of 3% of the invoice of the vehicle. Thus...a $15,000 automobile might generate $450 in holdback funds for the dealer....not too shabby - and a hidden fund that the average consumer is completely unaware of when negotiating.
#9
JK Enthusiast
Thread Starter
#10
Found this on another site:
The"invoice" on the window is NOT the true cost of the car to them. All the big automakers have "holdback" monies that are deducted from the invoice before it's printed. The dealer then can claim they are selling you the car at invoice....and they'll get their holdback money quietly from the manufacturer at the end of the month, or the quarter. The holdback funds are supposed to be special advertising deductions...and they can actually be upwards of 3% of the invoice of the vehicle. Thus...a $15,000 automobile might generate $450 in holdback funds for the dealer....not too shabby - and a hidden fund that the average consumer is completely unaware of when negotiating.
The"invoice" on the window is NOT the true cost of the car to them. All the big automakers have "holdback" monies that are deducted from the invoice before it's printed. The dealer then can claim they are selling you the car at invoice....and they'll get their holdback money quietly from the manufacturer at the end of the month, or the quarter. The holdback funds are supposed to be special advertising deductions...and they can actually be upwards of 3% of the invoice of the vehicle. Thus...a $15,000 automobile might generate $450 in holdback funds for the dealer....not too shabby - and a hidden fund that the average consumer is completely unaware of when negotiating.
1- Invoice isn't on the window, that sticker is the MSRP - Manufacturer's Suggested Retail Price. That's the suggested selling price to the customer. The Dealer pays the Invoice price (cost), not MSRP(retail).
2- Chrysler/Dodge/Jeep Hold Back is not deducted from the Invoice before it's printed. Hold back is printed right there at the bottom of the Invoice, plain for all to see.
3- Hold Back funds are not advertising 'deductions'. Hold Back is a Corporate Subsidy designed to assist the dealer with Advertising and Floor Plan costs.
4- What is Floor Plan? The Dealer does not own the vehicles on their lot, anymore than most of us out-right own the Jeeps we buy. The Bank owns it. The Dealer has a Revolving Credit line, and they Finance those Jeeps at, you guessed it, INVOICE. 'Floor Plan' is the monthly interest charged by the Bank to the Dealer for the loan of the vehicles on the lot. 'Hold Back' helps to pay Floor Plan. Some vehicles are sold the day they arrive on the lot, so Floor Plan cost for them are small, making their individual Hold Back a profit to the dealer. However, other vehicles sit on the lot for months and months, eating up not only their individual Hold Backs, but the Hold Back profits from the quickly selling vehicles too. In the end, only the highest volume dealers have the chance of making a profit off of the Hold Back, 99% of them don't.
5- Nothing's hidden, and the Fund isn't a Profit Fund with which the Dealer is able to negotiate from. It is very rare to find a dealer willing to negotiate into Hold Back. If they do, in reality they are simply selling the vehicle below Invoice (their purchase price) ie at a loss. This is something they may be willing to do for a vehicle that's been sitting on their lot for months generating interest payments and draining profits. The same holds true for us some times, when we buy a Jeep and then realize we can't afford the monthly payments, ultimately selling the Jeep at a loss.
Remember these idiots giving away "Dealer Inside Secrets" are in the business of selling Books and Buying Services. Few have ever actually Managed a dealership, and really know very little of what they're talking about.
If you've got a dealer willing to sell you a JK at or near Invoice, you're getting a great deal.