Of course, when a car is freshly on the market or super popular, dealers are going to charge full sticker price or more. Neither number has much of a bearing on reality in the world of car pricing. Where the MSRP is merely a number that represents what the dealer would like to get from the customer, the invoice cost is what the carmaker wants to get from the dealership. The truth is that the dealer likely paid far less than the invoice price when they purchased the car from the automaker. Plus, they need to keep the lights on and advertise. In addition to buying the car from the automaker, they have to pay for everything from staff commissions to interest on the financing they are using to purchase vehicles from the manufacturers. However, dealerships sell cars for below invoice price every day, yet they still stay in business. For example, a midrange 2018 Honda CR-V with a $30,000 sticker price may have an invoice that’s around 7 percent lower, or about $27,900. The total invoice cost on a vehicle typically ranges from several hundred to several thousand below its sticker price. Sometimes a salesperson will even show you something that looks like an invoice to make you believe that they are profiting little on the sale of the vehicle.Įvery car has a retail and an invoice cost for each trim level and option.
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