2004 WRX sedan
Guest
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Invoice is what the dealer pays for the car and options. Go to:
http://www.edmunds.com to see invoice vs. the MSRP.
One thing to note: every dealer gets a "holdback" from the manufacturer as an incentive to sell the car quickly. Therefore, it is possible for the dealer to sell the car for invoice or below and still make a profit. The faster the dealer gets rid of the car, the more holdback is given to the dealer.
If you order a car, dealers get the whole thing. Ordering the car can sometimes get you a better price.
Correct me if I said anything wrong here......
http://www.edmunds.com to see invoice vs. the MSRP.
One thing to note: every dealer gets a "holdback" from the manufacturer as an incentive to sell the car quickly. Therefore, it is possible for the dealer to sell the car for invoice or below and still make a profit. The faster the dealer gets rid of the car, the more holdback is given to the dealer.
If you order a car, dealers get the whole thing. Ordering the car can sometimes get you a better price.
Correct me if I said anything wrong here......
Registered User
Joined: Apr 2003
Posts: 1,013
From: california, LOS ANGELES
Car Info: dream car Subaru STi
i believe ordering a car costs moe, becausse its like you have to tip for delivery, also it costs money to ship the car u want. ud have a better chance of getting a better deal when the car is already in the dealers lot. correct me if im wrong.
Ordering as far as I know does not offer a better price. Someone said something before about all dealer invoices being the same no matter what options. Well, the car with the premium package has a higher invoice, around 24,500, than the standard wrx which is around 22,300 if im not mistaken. Tack on the destination charge since they come into the west coast, and whatever other bull**** they charge. Mine with the premium pacage, upgraded stereo, autodimming mirror and armrest came out to 25,500.
Registered User
iTrader: (12)
Joined: Nov 2002
Posts: 18,369
From: Reno, NV
Car Info: 1993/2000/2001 GF4 mostly red
An ordered car does not cost the dealer more on the invoice in any way. Destination charge is the same no matter what. Most people pay slightly more than their best deal though for the convenience of getting exactly what they want. It's not cost based, it's value based.
Guest
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This a great read on why dealers "make money" when they sell the car quickly. Or in other words, if the car is ordered, it is sold on "Day 1 of arrival" which is what the dealers want to do.
http://www.edmunds.com/advice/incent...ack/index.html
Snipped from the text found at the link above:
"However, if you order a car, the holdback is pure dealer profit — and knowing this should guide you to make a lower offer."
Humbly submitted....
http://www.edmunds.com/advice/incent...ack/index.html
Snipped from the text found at the link above:
"However, if you order a car, the holdback is pure dealer profit — and knowing this should guide you to make a lower offer."
Humbly submitted....
Call me crazy, but I don't quite understand how dealers can sell cars for invoice, give or take a couple hundred bucks. Do they make all their money on service and extended warranties, or what? They must pay less than invoice, or else how could some smaller dealers afford to keep the place running. Do dealers get sales commission or subsidies from the manufacturers? Am I a moron?
Registered User
iTrader: (12)
Joined: Nov 2002
Posts: 18,369
From: Reno, NV
Car Info: 1993/2000/2001 GF4 mostly red
Originally posted by mule2k
Call me crazy, but I don't quite understand how dealers can sell cars for invoice, give or take a couple hundred bucks. Do they make all their money on service and extended warranties, or what? They must pay less than invoice, or else how could some smaller dealers afford to keep the place running. Do dealers get sales commission or subsidies from the manufacturers? Am I a moron?
Call me crazy, but I don't quite understand how dealers can sell cars for invoice, give or take a couple hundred bucks. Do they make all their money on service and extended warranties, or what? They must pay less than invoice, or else how could some smaller dealers afford to keep the place running. Do dealers get sales commission or subsidies from the manufacturers? Am I a moron?
But I digress. Holdback essentially brings the dealers cost under "invoice"- depending how long it takes to sell the unit. When you order a car, they keep nearly every bit of holdback of course. So why are some dealers so opposed to factory orders? Simple, two reasons- one, they get lazy and don't want to do the necessary paperwork because they don't feel like it. The other reason is the fact that when they order the car, you haven't technically bought it, no matter how hard they will insist otherwise. By ordering it and leaving, you could still change your mind when the car came in. Because of this, some sales managers insist that their salesman sell what's on the lot and not even offer to order.
you should in fact get a better price if you order your car because, like many people have said, the dealer gets to keep nearly all of the holdback, and also because all of the options you order will be factory installed. lets say for example that you picked a car off the lot. the car may have been sitting there for a month, so they dont make as much from the holdback, second any options you want installed on the car that is not already there will have to be installed by the dealer; which means labor and parts cost. options on an ordered car should ALWAYS be at invoice. i ordered my White 04 back in April when they first came out. I paid 250 BELOW invoice and was offered any options i wanted at invoice.
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Originally posted by phwishpow
Mine, without "performance package" but with premium package(sunroof, heated seats/mirrors/windshield), boost guage, and upgraded speakers and sub was 25,500 OTD. Invoice was just about 25K, MSRP was more like 27.3K. This is in New Hampshire, BTW. Best, Eric.
Mine, without "performance package" but with premium package(sunroof, heated seats/mirrors/windshield), boost guage, and upgraded speakers and sub was 25,500 OTD. Invoice was just about 25K, MSRP was more like 27.3K. This is in New Hampshire, BTW. Best, Eric.
So how did you get yours for 25 OTD, if the msrp was 27?
Registered User
Joined: Apr 2003
Posts: 1,013
From: california, LOS ANGELES
Car Info: dream car Subaru STi
basically i got mw 04 wrx under msrp, its easier than the STi since the STi is more rare and in high demand and very special.
my wrx was 26,200 out the door.
my wrx was 26,200 out the door.
sti
Originally posted by downshift
basically i got mw 04 wrx under msrp, its easier than the STi since the STi is more rare and in high demand and very special.
my wrx was 26,200 out the door.
basically i got mw 04 wrx under msrp, its easier than the STi since the STi is more rare and in high demand and very special.
my wrx was 26,200 out the door.
Matt


