What Is An Invoice Price on a Car?
If you’re in the market for a new car, you’ve probably seen the term “invoice price” thrown around. But what does it actually mean?
Simply put, the invoice price is the amount that the car dealer pays the manufacturer for the vehicle. This price includes the base price of the car, as well as any additional options or packages that the dealer may have ordered.
Why Does it Matter?
Knowing the invoice price of a car can be incredibly useful when negotiating with a dealer. If you know the dealer’s cost, you can use that information to try and get a better deal on the car. It’s important to note, however, that the dealer still has to make a profit, so don’t expect them to sell the car to you at cost.
Another reason why knowing the invoice price is important is that it can help you compare prices between dealerships. Some dealers may offer discounts or incentives that bring the price below the invoice amount, while others may mark up the price.
How to Find the Invoice Price
So how do you find out the invoice price of a car? There are a few ways:
- Check online: Many websites, such as Edmunds and Kelley Blue Book, offer invoice pricing information for a wide range of new cars.
- Ask the dealer: You can always ask the dealer what the invoice price is. Keep in mind, though, that they may not be willing to share that information.
- Join a car-buying service: Some membership-based car-buying services, such as Costco and AAA, offer pricing information and pre-negotiated deals with dealers.
Knowing the invoice price of a car can help you make a more informed purchasing decision. It can also give you leverage when negotiating with a dealer. Take the time to research the invoice price of any car you’re interested in, and use that information to your advantage.