Actual Dealer Costs

[WVMountaineer]

Are the invoice prices that are on sites like KBB, etc., the actual prices that the dealers are paying for the trucks? I'm looking at a new 33K truck, and the dealer only will knock off around $1500 from the MSRP, which is about $350 above the "invioce price" posted on most of these websites and in magazines, etc. I can't believe that a dealer only makes $350 on such a vehicle. Anyone know for sure? Thanks.

[WVMountaineer]

Are the invoice prices that are on sites like KBB, etc., the actual prices that the dealers are paying for the trucks? I'm looking at a new 33K truck, and the dealer only will knock off around $1500 from the MSRP, which is about $350 above the "invioce price" posted on most of these websites and in magazines, etc. I can't believe that a dealer only makes $350 on such a vehicle. Anyone know for sure? Thanks.

 

 

No. Explain Hold back.

[C. Charles Hahn]

http://www.edmunds.com/advice/incentives/holdback/index.html

[Anthonyb]

The difference between invoice and MSRP is going to be more than 2k. Look at Edmunds.com, price the vehicle with the options you want, and they will give you a report of invoice, and "what others are paying" This figure is a little higher than invoice, but a lot less than MSRP. If you can get between invoice and that figure, you are getting a pretty decent deal. Make sure if you have a trade, you know a fair value before you go in. Negotiate your price of the new truck seperate from the trade value and before you even discuss financing. Good luck!

[Anthonyb]

I forget to mention... Make sure you know all available rebates and negotiate your price seperate from the rebates. The rebates are from the manufacturer and do not cost the dealership anything. You shoud still get the rebates after you negotiate the starting price. The rebates will also be listed on Edmunds.

[jro909]

dealers inflate the price 12-15%...if you know how to play their game, you can rob them blind

[WVMountaineer]

Another problem is the invoice prices from KBB, Edmunds, and the invoice prices that the dealer is showing me are all different. KBB and Edmunds are close, but the dealer invoice prices for options are up to 1K higher. Who do I believe? The dealer says that all prices can change daily, but the internet sites don't change at all, which is his reasoning.

[RyanbabZ71]

make sure they arent throwing in any ad fees or other bogus fees

[Anthonyb]

Another problem is the invoice prices from KBB, Edmunds, and the invoice prices that the dealer is showing me are all different. KBB and Edmunds are close, but the dealer invoice prices for options are up to 1K higher. Who do I believe? The dealer says that all prices can change daily, but the internet sites don't change at all, which is his reasoning.

The invoice of the vehicle should not change. I have found Edmunds to be pretty darn close almost always. It sounds like the options are dealer installed, if that is the case there is definately markup there. The installation is included from the dealer which when you go online, the option prices will not include installation. Leave any optional equipment off, purchase it after and install it yourself or have someone else do it. FYI, I do work in the business.

[dwilsonjr74]

thanks for the price difference information.

[WVMountaineer]

dealers inflate the price 12-15%...if you know how to play their game, you can rob them blind

 

 

How do you play their game when you don't know the rules?

 

Anthony....if you work in the business, are you offended when someone calls you out on a price?

[Anthonyb]

dealers inflate the price 12-15%...if you know how to play their game, you can rob them blind

 

 

How do you play their game when you don't know the rules?

 

Anthony....if you work in the business, are you offended when someone calls you out on a price?

 

 

No, because there are a lot of D-bags in the business which people give everyone in the business a bad reputation. I expect a buyer to want to get a good deal, I also expect the buyer to understand a dealer must make a profit or they go out of business. The pricing and the profit should be fair. I buy my own parts on ebay, craigslist, Autozone ect... as they are cheaper than OEM so I under stand the "Stealership" cracks. I like to help if I can when someone is buying a new vehicle. A lot of people out there think there is much more markup in these vehicles than there actually is and they think they are experts. I cannot tell you how many times I have seen people miss out on a vehicle they really wanted at the direction of a friend who considers themselves an expert. The best deal can be found on specialty units, demo's off colors or aged units and the real money comes from the manufacturer, not the dealer. Timing is more important than walking in with the desire of a great price. Incentives come from the manufacturer and are not controlled by the dealer. You want the best combination of rebates, loyalties, and if financing, special rates. If you look at your trade, price, rebates and financing, those are the only variables. Address each of these individualy and you will get the best possible deal. I waited 6 months to buy my wifes car until I got a combination of 2 different rebates, 0% and the trade value I wanted. I worked at Saturn for 8 years, which because of GM has gone out of business, I am now at Audi in F&I. I own a GM vehicle and want to continue to support domestic, but after 14 months of no job security and ultimately being put out of business, here I am. I love my GMC!

[C. Charles Hahn]

I worked at Saturn for 8 years, which because of GM has gone out of business, I am now at Audi in F&I

 

Just curious.... is is true what I've heard that a lot of F&I guys work on commission only (no salary)?

[Doug_Scott]

I really do not understand how anyone can "call someone out" on a price. Is there some rule somewhere that says you must know exactly how much profit the dealer is making? When I go shopping for something, I generally have some idea of what I want to spend. I do not expect the seller to tell me how much he paid for it, nor do I expect him to sell it to me at cost. I go into the dealer knowing what I want to pay. If he cannot do it, so be it. I will either eventually find someone that will, or I will have to adjust my thinking. Does not make the dealer or me dishonest.

 

And one more thing, part of free enterprise is having the right to charge whatever you want for an item. It is not being a crook to ask more for something than someone else is asking, it is one of those rights that everyone keeps bringing up. If you find an establishment to be too expensive for you, go to another one. If enough people do that, then the issue becomes a non-issue.

 

BTW, MSRP on my truck (2010 Sierra SL 1500 Ext cab) was $35595, employee price was $31895. According to the dealer, employee price is invoice price. Note that these are Canadian prices. And up here, we get $7000 in rebates.....

[Anthonyb]

I worked at Saturn for 8 years, which because of GM has gone out of business, I am now at Audi in F&I

 

Just curious.... is is true what I've heard that a lot of F&I guys work on commission only (no salary)?

 

 

Most get paid a small salary but earn the majority from commisions. Percentages vary in different dealerships.