What is Dealer’s Invoice or Dealer’s cost?
The price which is written on the invoice considered as the price which the manufacturer sends to the dealer at the time of receiving the car from the factory outlet.
The price will always remain higher than the money which the dealer has paid to the manufacturer and any kind of discount which is received by the dealer does not appear on the invoice.
What is the discount received by the Dealers?
Sometimes you wonder why dealers are offering discounts and paying less amount of money when they purchase cars from the manufacturers. The dealers receive the two types of discounts such as Dealer Holdback and Dealer cash incentives.
It is considered as a bonus amount which is paid by the manufacturers to the dealers when they sell cars every month is called Holdback. Holdbacks tend to reduce the dealer cost by two to three percent. The consumer will never aware of the benefits which the dealer is attaining.
Dealer’s true cost is considered as the incentives which they attain from the factory and every manufacturer receives a set of incentives that can be termed as the dealer cash or dealer allowance which encourages the dealer to sell more and more vehicles.
The Dealer costs formula
Invoice Price- Holdback- Rebates and Incentives = Dealer cost
For calculating the invoice price it requires subtracting the holdback (percentages below). The amount and subtract the manufacturer rebates. To get the rebates it requires to fill up the price from the services and then you will receive the rebate you are entitled to in your area.