Should I pay invoice when buying a car is a pretty common question when you’re looking at buying anew car. The answer is no, you should not pay invoice for a new car. You also need to remember that the concept of an invoice only applies to new cars, despite what many dealers would have you believe. Used cars don’t have the kind of invoice that we’re talking about.
In theory, the factory invoice is what the dealership pays for the car itself. The key word in that sentence is theory. Because in practical terms, the dealership often gets rebates and other cash back offers that affect the answer to the should I pay invoice when buying a car question.
One of the biggest ones is dealer incentives, which are essentially rebates that are paid to the dealer. So, if they pay $25,000 for the car, they may get a dealer incentive payment of $5,000. The reason they do this is to allow the dealer to claim that they paid $25,000 for the car, which is absolutely true. What it doesn’t tell you is that they receive a big rebate back from the factory, so that they are actually making a good chunk of change when they sell the car at invoice.
There is also something called a factory hold back, which is another type of rebate. Unlike dealer incentives, which they get when they buy the car, the dealer only receives the factory hold back when they sell the car. So if the dealer sells the car to you, at the very least they will get back around 3% of the manufacturer’s suggested retail price.
Unless you want the answer to the "should I pay dealer invoice when purchasing a car" question to be yes, you’re going to have to do a little homework. Your key to getting a good deal on a new car is to have all the facts available to you; so that you can make a plan for buying your car.
First things first! You need to know what kind of incentives, hold backs and other rebates are being offered to the dealers in your area for the kind of car you’re interested in buying. This aspect of the should I pay invoice when buying a car question isn’t one that can be answered in this article, but a quick internet search can show you the answers. The most popular of these sites is called Edmund’s, but there are others. When you know this, you have an idea of what a fair price on the car actually is, which will allow you to negotiate successfully.
Surprisingly, the next thing you really need to know is when to buy a new car. Car dealerships receive monthly bonuses for meeting their sales numbers, and this gives you an opportunity to make a great deal. Because these bonuses can be tens of thousands of dollars, if they are short of their numbers at the end of the month, they may be willing to lose money on a deal to get the big bucks.
Should I pay invoice when buying a car? No, you shouldn’t. You should always strive to get the best possible deal and you can definitely do better than invoice with the right planning and the right timing.
By: Shane Smith. If you are looking for landscape or backyard lights then check out: http://makevoltz.com
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