Buying Below Car Invoice Price
A car dealer makes about $1500 selling a car at invoice price. Of course only few cars are ever
sold at invoice or less since the dealerhas to make a living and pay for his expenses. Under the right circumstances
it is possible to buy a car below invoice price.
What Is The Car Invoice Price?
When you look up a price of an automobile online you will be given the MSRP ( Manufacturer Suggested Retail Price ) and the invoice price. MSRP is usually the sticker price of the car, while the invoice price is the stated price of what the dealer paid for the car. Note dealers always land up paying the manufacturer a lot less than this price due to the kickbacks, rebates and incentives the manufacturer gives the dealers to sell cars.
The Truth About Cars Below Invoice Price.
As with any business, members associated with that business get a special discount when buying merchandise. Friends and Family, employees, partner companies and affiliates get to buy cars below invoice price. A person knowledgeable about
the factors that go intodealer motivation to sell cars below invoice can identify and buy cars below invoice.
Identifying Cars That The Dealers Will Sell For Below Invoice.
Dealers get incentives to sell cars, a car that is not selling just sits on his lot taking up space which can be taken by a better selling car. With this knowledge its easy to identify potential below invoice deals, as a dealer motivated to move this car is willing to take a smaller profit than his usual cut. A dealer my do this just so that he can focus on the better selling cars.
Below are some potential candidates for "below invoice pricing"
 Common cars with excess inventory.
(eg: Dealer may have over 10 Toyota Camrys sitting around)
Previous year cars on the lot when the new year cars are already on the lot for sale.
Cars with some unpopular colors which just dont seem to be moving from the lot.
Dealer Negotiation Watch Outs
Dealers/Car sales staff are highly trained to make a profitable sale. Every step of the car selling process (your car price, your car loan, your car insurance, extras and trade-in pricing) is an opportunity for them to make money. The best car sales staff are good at the art of persuasion involving emotion, salesmanship and creative presentation. A prudent buyer must do their homework to ensure that his/her hard earned money is not given away unnecessary. I highly recommend you reading my 7 must know steps to car buying before you step into a dealership.
Strategy To Buying Cars Below Invoice
Research to find out the cars that have excess inventory in the market.
Consider more than one make and model as this increases your chances of getting that awesome price.
Research the car prices, rebate information, and the arrival date of the new year models.
Approach multiple dealers for a car price quote and let them know you are looking for the lowest price. Use my "Mr.Dealer Give Me your Lowest Price Tool." to get a great start. My tool directly approaches the dealership's internet department who can give special pricing as compared to just walking into a dealership.
Visit at least 2 dealers and talk pricing to both of them.
Be prepared to walk away if the sales person is stubborn.
Patience will be rewarded, and don't forget you hold the power in your hands and the dealer wants to make the sale more than you think.
Make sure the dealer is not bumping up the other parts of your purchase to make up for the big discount he is giving you on the car price.
Don't forget that dealers have to make some money too and won't sell you the car for a loss. Getting cars at $200 to $500 below invoice means victory to you!
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