what does dealer price mean?

Asked by Apr 14, 2014 at 08:27 PM

Question type: Shopping & Pricing

2 Answers


if you mean the invoice dealer price is the price that the manufactorer charges the dealer for a vehicle.in other words how much the dealer paid for the car.that before msrp that this the suggested retail price which is more.thats how they make profit


Be careful... there are several answers to this... but in referece to the dealer invioce as mentioned above, you will see several of them tell you that they will sell for $1 over cost and show you their invoice... and while it is a real invoice, there are items built into those invoices that you don't see... depending on the manufacturer, there will be hold back, finance allowance and in some cases a marketing number as well... these are designed so that they can sell you the vehicle at their 'cost' but then when the vehicle is reported as sold, they get all of those $$ back... so say you saw an invoice on a CTS Coupe for 52k and they sold you the car for 52k - it appears that they just sold a car where they made no money - and they will be quick to point that out to you because 'they want your business' and hoping you'll service your car with them, but the reality is that they made over 3k profit on you because once they report that car as sold, they will get the hold back (which is about 6% on that car) and then finance allowances, etc... So, a bit of a run on answer, but what I'm getting at is they can actually sell you a car under their invoice and still make money... mention hold back to the sales guy and he'll probably look like a deer in the headlights! So if they really want your business, you can buy below invoice... but it also does depend on the car because 6% on a 50k car is 3k so with the other items, they can negotiate... if you're looking at a 20k car, you're only talking 1200 and they will be less likely to go into the hold back... Good luck!

7 out of 7 people think this is helpful.

Your Answer

Add photo

Related Questions

  • What do the stars mean on dealers ratings 1 answer

    I am wondering since there are quite a few out there if I should only look at dealers with 41/2 to 5 stars. Does 3 mean they are not very reliable

    2011 Toyota Highlander Limited


    Shopping & Pricing

  • dealer trying to charge higher price than listed price. 3 answers

    I found a 2013 Ford Fusion on your website listed for $9,700.00 at Rikers Automotive. When I went to purchase they charged me over $15,000.00 just for the price + taxes, dealer fees, tag transfer. Why...

    2013 Ford Fusion Titanium


    Shopping & Pricing

  • Does the dealer have to sell at the price listed? 3 answers

    At Car gurus Titus Will has a Nissan Rogue listed. Do they have to sell the car at the price listed?

    Nissan Rogue Select


    Shopping & Pricing

  • Dealer Price and Car availability authentication 1 answer

    I have went 3 dealership to look at car that was advertize on your website, but none of the car was available, and later I find out that dealer use site for a "teaser price" for customer to come in to...

    2011 Honda CR-V EX


    Shopping & Pricing

  • What does average price paid mean? 4 answers

    Is that dealer invoice?

    Car Selling & Trading In

Get More Money for Your Car
Be seen by 20 million shoppers. Create Your Free Listing


Search Shopping & Pricing Questions

Shopping & Pricing Experts

#1 Tom Demyan
Tom Demyan
Reputation 14,810
Reputation 5,340
#3 F_O_R
Reputation 4,660
View All