The invoice price is the amount of money the car dealer pays the car company for a new vehicle.
The car industry wants us to think they only get a 6% discount off the MSRP sticker price. But this is a whopper of a lie…
Just 10 years ago, the invoice price was more realistic – 15% to 20% of the MSRP.
The truth is most dealers pay roughly half the retail price of a car. Yep, a $30,000 new car costs about $15,000. The car industry vehemently denies this. I do not blame them as people would riot knowing the truth.
How are car dealerships able to get their inventory for about half the price? Mostly, they grab these secret manufacturer incentives not known to the public.
One hacker broke into the car industry’s secret system to confirm the true cost of each car. One of the most profitable cars sold is the Jeep Unlimited – costing Jeep dealers just 49% of the MSRP. And we can see my client’s case studies here for the proof that car sellers make a lot of profit every time they sell (or lease) us a new car.