Dealer invoice price on a new car ?

I’m about to pick up a new car on Monday, and I believe I’m getting a pretty good deal. It’s the carsdirect price. Without involving carsdirect.

I’m working with the fleet manager. From the paper work I’ve been sent, I’m getting the car at $200 under invoice.

What, exactly, is the invoice price on a new car? Is it supposed to be what the dealer paid for it?

I don’t know what the exact situation here but the dealer invoice price can be the price the dealer paid for the car without that being the value that they end up being out when the accounting settles. Car manufacturers often have deals that will kick money back to the dealer after the car is sold. The dealer may be out $200 dollars when you pick up the car and still end up with a profit when the other deals come in. I hear that there a ton of such schemes.

Here is more info:

http://www.carbuyingtips.com/car4.htm

The invoice is supposed to be what the factory charges the dealer. However, there are all sorts of discounts, incentives, allowance programs, etc., etc. that can (and do) lower the price.

Typical example. Let’s say the invoice price of the Belchfire ZZ is $25,000. But sales have been slow. The manufacturer

a) offers a discount if the dealer will take delivery on a few extra Belchfires

b) offers another discount if the dealer actually pays for the cars within 30 days.

c) offers an incentive if the dealer convinces the customer to finance the car through the manufacturer, rather than independently.

Combine several of these discounts and the dealer might wind up paying $22,500 for a Belchfire ZZ, and can offer it to you for $24,500 and still make a profit.

Thanks for your responses.

I didn’t know about the dealer incentives and such.

The last time I bought a NEW car was in ’89.

I want some very specific options on my new car, and don’t have much room to negotiate. While they have a bunch on the lot, they don’t have the options I want.

I think I caught the salesman trying to build in the $500 rebate into the price of the car.

One more question though. I am being charged a ‘documentation fee’ of $499.50?

I hope that’s a misplaced decimal point.

Don’t second-guess yourself. You’ll just drive yourself insane.

As to your question – if you still want to know the answer – it depends on the make and model. I won’t comment on my opinions, other than to say that the “invoice prices” for certains marks and models are pure fantasy.

You didn’t pay $200 under invoice, plus bogus fees such as “ADM” (additional dealer markup) or any variety of advertising or promotional fees, did you? If so, I’m sorry…

Mas bien, what did you buy, what options, and how much?

That sounds bogus. I’ve never paid a “documentation fee” for a new car.

I’ve had dealers try to charge me for co-op advertising, which is supposed to be a per-car levy to pay for regional advertising. I told them that their advertising and marketing budget was their problem, part of the expenses of running a car dealership, not something to be tacked on the retail invoice.

I havn’t bought the car yet. But because of some major screw ups with carsdirect, and Nissans flat refusual to build it with the options I wanted, I’m getting more options. They already have $1000 down.

Nissan offered to refund my money but refused to build the car without options that they say they offer. Believe me, I went around and around with them (these options are offered in their printed brochure, on line and from cars direct). But it is too close to the end of the model year, and they won’t do it. Too many unsold vehicles is my guess. I can’t even order one with out the sun roof.

So, I’ve got a sun roof, or skylight or whatever.

Yep. Been there done that.

upon some review and a bit of GOOGLE.

$500 is a bit to ask for filing some paper work. :rolleyes:

The $500 was a quote from carsdirect. So, I’m not sure If this fella is trying to build that into the price at this point. I don’t think so.

I’m not in a position, where I live, to talk to the fella face to face. I live too far away.

We are working with a more solid number. 32,492. For a…

Nissan Pathfinder, Off Road.

Leather/heated seats
Side air bags
Premium package
mud flaps
floor mats

I will finance through Nissan. 5%. About $3000 down.

Enipla, my husband sells new Nissans in Grand Junction (the only Nissan dealer here; ask for Ed). The doc fee is $79.50 at his dealership. Any chance you would want to give him a call or come in to see him?

I most certainly will if this guy wants to charge $500 for a doc fee.

Kinda tough. I want specific options offered by Nissan but since it is the end of the model year. I’m told they won’t build it.

Pathfinder 2006
OffRoad
Leather/heated seats
Side air bags
Majestic blue with the desert tan interior.

I did not want the premium package, but was told I have to get it. They won’t build it with out it. Although it is offered that way in the brouchers and onlline.

Frankly, I’m a bit pissed off about the whole deal. carsdirect dropped the ball completly, and then after Nissan already had my $1000, I couldn’t get the car I ordered. Nissan offered to refund my money. But would not build the car with the options that is clearly, clearly stated in their brochure.

Would you like the Friends-and-Family price on nice Explorer instead? Or an Escape? You know, if you’re really mad at Nissan.

I have been in the car business for a few years now. On end of the year models, a lot of car manufacturers/dealers have what is called ‘trunk money’. Not to insult you, but you have handled this totally wrong.

The smartest thing for a consumer to do is send an e-mail to every dealer in a hundred mile radius and get the best price on the model they are looking for. For example, you would say you are looking for a Nissan Pathfinder. Ask the question: NOT INCLUDING REBATES, what is the best price on this car? Or, how much under invoice are you willing to sell this car to me for?

If your dealer has the ‘lockdown’ on the Nissan business in your area, that hurts you a little bit, because you really do want to buy the car from where you are getting it serviced at. Just understand that no matter what, they are going to make money as it is a business. As far as the dealer fee, or whatever they want to call it. Keep in mind that if they have it on there, they do have to charge it, there is no way around it. If you want to get it ‘waived’, it is the same as having it discounted, it just comes out of the selling price of the car. It will still have to show on the purchase order. It is basically profit for the dealership, but not for the sales side.

I am the internet manager at a Mercedes dealership, and if you have a good sales consultant, they will understand that they are spending your money. Just be respectful to them and understand that this is how they make their living and support their families.

Hi, LanceShetrompf, welcome to the 'Dope.

Part of enipla’s problem is that he lives way “up country” as we say down here in the (relative) flats. I would wager that the number of dealers in 100 mile radius from him is zilch, and to drive down to Denver or over to Grand Junction is a long trip, much of it though mountains, and is very time consuming. This is part of the price you pay for living in the majestic beauty of the Colorado Rockies. :smiley: IIRC, he lives in Summit County.

You are quite correct, they need to make money on this as a business. My hubby has told me that this is a slightly better deal than what he could do on a similar vehicle. The main difference is that the dealer is going to recoup his cost on the discount by charging a large documentation fee, instead of holding more profit on the vehicle. As you know, this will mean that the salesperson will most likely make a “mini” commission, instead of the regular commission he gets as a percentage of profit. When it comes to cars, you’re going to pay the dealer no matter what.

PERHAPS it would be feasible to get a car from a dealer 200-300 miles away, ore more. If they could save you, or are willing to give you $1000 or so of their ‘holdback’ (money they get back from the factory at the end of the year), it would be worth the 3-4 hour drive, or the $200 shipping cost. People here do it ALL of the time.

I understand that some dealers have basically a total monopoly of an area, but there are always ways around it. Either way, good luck!

Thank you everyone.

My first mistake was not emailing (as LanceShetrompf suggested) dealers in the ‘area’. There are about 6 or so Nissan dealers in Denver.

No, my first mistake was not coming here for advice first :smack:

My second mistake was to go with an online intermediary.

But, I am glad to hear that it does not sound like I am getting taken for a ride. Thank you for the support Cheez_Whia. It does seem like a reasonable deal.

I may be paying a bit more than I could have, but as has been said, the dealer and sales people need their share too. We all got to eat. And frankly, I’m not much of a wheeler dealer. I absolutely hate to haggle.

The other good news is that I found a car that pretty much matches my needs perfectly.

A follow up question. I will probably trade my existing ’93 Pathfinder. I don’t want to go through the trouble and time of selling it. All in all, the car is in great shape.

I plan on cleaning it up this weekend. But I wonder how much difference that will make on the trade-in value. I’ll vacuum it and wipe the dust down, but should I go into ‘full detail mode’? Will that make any difference to the trade-in value?

Cheez_Whia is correct as to where I live. It’s snowing here now and frankly, it’s gonna be a bit of a pain cleaning the car.

Thanks again.

Ed says vacuum it out and drive it through the car wash. Anything else is a waste of time and resources. They (or whoever they wholesale it to) will detail it before it goes on the lot. Just make it look cared for. Good luck! I broke my leg after a high country snowstorm the first weekend in May eleven years ago.