What Is Dealer Invoice Price?

Dealer invoice price includes hidden fees that are usually passed on to a consumer when a vehicle is purchased.

Dealer invoice price, also called dealer cost, is the actual amount a car dealership pays to the manufacturer for a vehicle. The amount is typically documented on an invoice that details all factors contributing to the value of the vehicle.

Inclusions

Dealer invoice price consists of costs such as the wholesale value, transportation and delivery fees and "hold back" fees, which add 2 to 3 percent of the manufacturer's retail price to the invoice. The hold back fees are refunded to the dealer once a vehicle is sold.

Exceptions

The dealer invoice price is not the dealer's actual cost. Dealerships receive cost-reducing factory incentives and rebates that reduce their final cost after a vehicle is sold. Accordingly, the dealer's actual cost is the amount after those incentives are subtracted.

Research

Researching dealership invoice prices can help consumers obtain better deals when buying a vehicle. Generally, dealerships will disclose the dealer invoice price to consumers; however, the actual cost of a vehicle is only calculated after the hidden fees are subtracted. Dealer invoice prices are also published through online sources, such a InvoiceDealers.com.

References

• CarBuyingTips.Com: Chapter 4, Research The DeDealer's Cost And Make Your Offer
• LeaseGuide.com: Dealer Invoice Price, How To Find Car Invoice Prices