INVOICE

Keep in mind all dealers retain factory invoices on all new vehicles they keep in stock. The invoice will have the manufacturer's name and the purchasing dealers name on it. If a dealer is showing you an invoice without these items it generally was created by the dealer to deceive you. In my experience dealers generally keep legitimate invoices in their posession. Included on a dealer invoice is a listing of the equipment that is on the vehicle along with options that the vehicle has been manufactured with based on how the dealer has ordered it. There is a base price MSRP and ans MSRP with the manufacturer installed option. MSRP stands for Manufacturers Suggested Retail Price. Next to the finalized MSRP with installed options there in the amount that the dealer has paid for the vehcile. This amount is called the invoice price. But keep in mind the dealer also has a hidden profit that not many of them divulge to the consumer. This hidden profit is called Dealer Holdback. This is ususally coded on the invoice like this dh 0890. This means that the particular vehicle has a dealer holdback amount of $890. This hidden profit is supplied to the dealership in order to assist the dealers in their overhead expenditures such as floor planning on the dealers inventory. (interest that is charged to the dealer while the vehicle is on the dealers lot.) Many dealers wont tell you about this amount. It can be negotiated to further discount the vehicle especially since dealers are eager to move as many vehicles as they possibly can to keep their floor plan expenditures low. Remember a business thrives not only on profits, it also must keep expenses low. So after seeing the dealers invoice ask him/her how flexible they are with negotiating the dealers holdback. If they are not then leave because I guarentee you there are many dealers out there who will give up the half the dealer holdback and others that will give it all to you. So by asking one simple question and arming yourself with a little knowledge you can save yourself close to $1000 off the purchase of your next vehicle. There are many other ways to save yourselves alot of money when purchasing your new vehicle. So keep a watch out for my bloggs and you will save yourdelf alot of hard earned money. Check back frequently and if you have any questions don't hesitate to ask and I will respond a quickly as possible. The Car Guy