Dealer Invoice..Is That They Pay?

[fairhaven]

The dealer I'm working with says he is selling me (if I buy) the truck at his invoice and can't go any lower. Is this what the dealer paid? I have seen the invoice but read somewhere that the dealer actually buys for less than the invoice shows. Is there any way to find out what the dealer actually paid for any given truck? Can you buy below invoice and if so by how much?

[stockcar12]

if you have no plans(x or a) Invoice is a good price plus rebates. remember if you owned a company you would at least want to make some kind of profit and the dealer needs to too

[sy1616]

Dealer has holdback too...likely $1500.

[BlueF350]

Holdback is 2-3% of dealer invoice. Just be sure that you are geting all of the rebates/marketing funds being paid to the dealers.

[strkd50]

Originally Posted by sy1616

Dealer has holdback too...likely $1500.

Yep, Holdback on my '10 350 was just over $1400. And thats how much below invoice I paid + rebates.

[fairhaven]

strkd50...So are you saying that you paid $1400 below invoice and that the rebates were also taken off of invoice? If so it would seem that the dealer made no money on that truck.

[strkd50]

Yes, I bought the truck for right about 12,000 off sticker

[Longhaultransport]

Some dealers don't make money on new vehicle sales.

Most make a little. (the holdback)

Many make a lot of money on people that can't or won't negotiate.

[Rob]

I started my deal at $100 below dealer invoice, plus i kept all of my rebates.

[SFloyd80]

Not sure about Ford, but many dealers get additional money from the manufacturer at the end of the month for the amount of new vehicles they sell.

On top of that, the dealer makes money on anything you might elect to purchase from the Fianance Manager. IE: Extended Warranty, Life & Disability, etc. On top of that, many times they will hold a point or more of the amount fiananced. (Give you 5.9%, while getting a 4.9% buy rate from the bank)