Question:
I know its less than invoice because they get incentives for selling the car. I went to look at a car with my gf and the dealer was jerkin me around with the price telling me if they sell the car for invoice they're not making anything, which i know is a lie. But just how much are the incentives?
Answers:
2008 Lexus LS600hL Fully Loaded cost?
Do you know about wholesale and retail? That is the difference, it can be about 100% or it could be more than 200%. I know for a fact that most used cars are bought for no more than $500 and a new car is bought at wholesale. Wholesale can be real cheap, as much as 200% lower than your cost for the car (i.e. a $10,000 car will cost at the most for the dealer, $2,500. This is including the salesman's commission.The real question you've asked is does he make money selling under invoice, the answer is YES he does.
my mom had a stroke & I can not afford both her car & my car payment, what can I do?
Well I have family that works for a GM company and they get 15-20% off list ... so that's got to tell you something. anything listed as handling, dealer prep is all garbage of course. But I've yet to find just how low it goes ...What the dealer pays is called "dealer invoice".... but there's also a discount called "holdback" which is usually 2-3% depending on the make. They also get bonuses for meeting quotas and other incentives.
how to make up your mind to buy a car?
Generally, $100 over invoice is a good deal. But popular cars sell for MSRP or higher.
Has anyone made costly financial mistakes? Any suggestions?
Most sales associates are only paid on profits above invoice, which is probably why the sales associate told you what he did. The dealership does make additional money in the form of quarterly bonuses (which are often based on meeting sales quotas) as well as hold-back, however this varies with each manufacturer. Dealerships are not 'non-profit' organizations and as the person above stated, if you can get $100 over invoice plus all applicable customer incentives, it would be consider a great deal, as long as it is the car you want and fits your needs. I hope this helps.why can companys create exact replicas of cars (kit cars) without getting sued.?
I am not sure how much they really pay for the car, but I was wondering if anyone knows how much a store pays for a gallon of milk. Does it really matter, a good deal is the price that you are willing to pay for the product that you want. Everyone has the right to make a profit, that's what makes us a capitalist economy. If you are really concerned move to China.More Questions & Answers ...
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