factory invoice vs msrp

[pug]

What is the differance in price between the two. I f msrp was $25000 what would factory invoice be. THANKS

[1990 Pioneer 4x4]

Just a couple of numbers to make you believe your getting a good deal when you agree to a smaller number. :smart: Don't believe ANYTHING you hear from a salesman at a dealership!

[MJRemi]

It totally depends on the mark-up at the dealer level. Each dealer and each vehicle model can be different. Kelly Blue Book will show Invoice and typical MSRP on all vehicles, including optional equipment prices. NEVER negotiate from the MSRP or "affordable monthly payment". Always start with Invoice and go up from there if you have to. Most dealerships also get a "factory to dealer" kick-back on each vehicle sold but they usually won't discuss that with you. I think you can find out on the Web but I can't remember the site. I like to bring a print out of the KBB with me and use it to bargain. Also, don't discuss trade-in value until after agreeing on the new vehicle price. If they try to pressure you to do things their way, leave and go somewhere else or wait for them to call in a couple days. You are committing to a lot of money and you set the stage for Deal or no Deal!

[pug]

I don't have to worry about trade also is employee pricing any cheaper then factory invoice. thanks

[dasbulliwagen]

Employee pricing is just another name for whatever rebates the factory wants to give at that moment, and if the words "employee pricing" make those rebates any more special to you or make you think youre getting a better deal, thats all the better.... its pure marketing. The price may be what employees would have paid before the rebate, but the employees still get their rebate as well, so it isnt really employee pricing. Like was said, do your research through Kelly blue book, and Edmunds.com and find out what other people in your area are paying for a similar deal. Keep these numbers with you when you go to deal, but don't bring them out unless you need to. If the dealer can get close, then if you want it bad enough, get it. Either that or walk out and go somewhere else..... they really hate it when you do that, but with the egos some of these dealers and salesman have, it serves them right.

[robfg67]

I'm in auto sales so there is no mystery in how the sale process works.

 

The online price guides are exactly that-guides. The invoice price listed does not include advertising contributions that all dealers must pay on a per-vehicle basis. Generally speaking, hot models (Grand Cherokees & Wranglers) will command more money than dogs (Compass & Patriot).

 

Also, if you have an older trade, the dealer is only able to give you what his local wholesaler will buy it for. This is where the online price guides are way off on their values. Unfortunately, the general public doesn’t have access to the online auction books to see for themselves.