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Don't believe everything you read (long)
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Posted by gatorcpa [Email] (more from gatorcpa) on Mon, 23 Apr 2001 17:32:14 Share Post by Email
In Reply to: Re: Pricing questions continued?, Ethan, Mon, 23 Apr 2001 14:09:49
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The "invoice price" of any particular vehicle does not necessarily tell you exactly what the dealer paid GM for the car.

It is a reference point for the dealer, much the same way the sticker price is a reference point for the public. Dealers get quantity discounts for purchasing more vehicles, incentive discounts to move slow selling vehicles, quality discounts for have good customer service, holdbacks for local advertising and who knows what else.

These are deals between the factory and the dealer and may even differ between dealers in the same geographic area. They are generally kept secret. If you think about it, they really are none of the public's business.

It's possible that by you buying one more car at the end of the month, the dealer may qualify for a discount on all vehicles purchased for the next month. That's a good incentive for them to sell you that car, even at a small loss.

This is why the sales manager always signs off on the purchase order when you buy or lease. The salesmen have no idea what these incentives are and how they affect the actual cost of the car to the dealer. The managers do.

Guidebooks such as Edmunds, Kelley's etc. are good for establishing reference points, but are no good for determining the dealers' actual cost of a particular vehicle. That is why they suggest that you have more leverage in buying a car at the end of the month. You will never know if they need just one more sale to make their incentives.

Hope this helps

gatorcpa
'00 9-3 convertible

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