In the new car business, dealerships purchase their vehicles at the new car invoice price and then mark them up to what is known as the sticker price in order to sell them to the public. This is why it is important for car shoppers to know the new car invoice prices in order to get the best deals on new vehicles. Although it may seem like a mystical figure to most, it could be uncovered. When a client does some comparison shopping they will see that there is a often a big difference between dealerships’ asking and selling prices. Because this difference exists, one must search for the wholesale cost in order to save money. The consumer should understand that the wholesale cost any dealer pays is the same, regardless of their size or location. Expenses are added to the new car invoice prices as the dealers factor in the delivery fees charged by the manufacturer. However, it makes no difference where a dealer is located because those delivery and transportation fees are the same across the board. Another added cost to brand new cars is the interest charges on the loans that the dealer obtains directly from the manufacturer.
It is quite easy to do the math, meaning if a car sells quickly then there are minimal interest charges. However, if the car sits on the lot for an extended time, its costs add up. These loans are known as floorplans and in addition to these, there are also other fees known as holdback. After the vehicle is sold, the holdback fees are rebated back to the dealer by the manufacturer. In addition to the above charges, there could be advertising fees added onto the invoice price. These fees can come directly from the dealership or from a regional dealer group. After having pointed out all these various added charges and fees, the consumer has to figure out a way to purchase a brand new vehicle below the wholesale cost. To be a smart consumer means to take advantage of situations that arise, such as slow car sales. Manufacturers do not appreciate a huge inventory sitting idle on a lot because it means a reduction of orders. When this situation occurs, the automakers will offer incentives. Look out for these sales that offer zero percent financing or large rebates. Before making a move, do the calculations to figure out exactly how much you will be saving. New car dealers can only have these special sales when the manufacturer steps in. Therefore, a consumer cannot expect to purchase below the invoice price if incentives are not in place. They are expected at some time throughout each year, and they have expiration dates. When one ends, a new program may begin in order to do away with the old and bring in the new.