The Diesel Stop banner
1 - 15 of 15 Posts

· Registered
Joined
·
8,185 Posts
Discussion Starter · #1 ·
What does this term mean nowdays? Years and years ago I worked at an actually "honest as the day is long" Ford dealership. When the Hadley transports pulled in one of us had to check in the vehicles for damage, ordered accessories, etc. Each vehicle had an invoice in an unopened envelope with the information and the actual price the dealer paid for the vehicle---so many thousand $ below what the window sticker stated retail was. Back then we called this dealer cost the invoice price. Years later, (long gone from the Ford dealership) I got my '91 for $600 over the true invoice, about $5000-$6000 less than window sticker.

However nowdays, what the public and dealers are calling invoice is about $2500 less than the window sticker on a $40,000 pickup which is inaccurate. The markup is in the $8000-$10,000 range, so invoice (dealer cost) should be $30,000-$32,000. So are the dealers just grabbing a number out of the sky, and telling the public that is invoice cost? There's no way the profit margin on a 45K truck is only $2500. Case in point, you can go right over to Idaho and buy a loaded Dodge diesel from a certain dealer for about 12K less than window sticker.
 

· Premium Member
Joined
·
1,694 Posts
I have always looked at dealer invoice as sort of the dealer "sticker price". Although it varies from manufacturer to manufacturer, and mark up varies widely, I know for a fact that for some manufacturers, dealer invoice is NOT what the dealer actually paid for the vehicle. If you want to know what the dealer paid for the vehicle see how much they floor planned it for, that is what they paid. I have seen floor plan numbers side by side with the invoice and the numbers were not close. I think this whole dealer invoice thing is a marketing deal. However, as in the case of Ford, they do get a 3% "hold back" on everything they sell so technically they could sell you a vehicle at actual cost and still make 3% but they would not be in business long. Most of the Japanese manufacturers do not do the "hold back" thing.
 

· Registered
Joined
·
8,185 Posts
Discussion Starter · #3 ·
[ QUOTE ]
I think this whole dealer invoice thing is a marketing deal.

[/ QUOTE ]
That was my assumption also, the term has become useless. Out of the big four, my wife's hot for a new Tundra, 6spd auto, 5.7 V8, loaded. We had to go up to Billings, Mt. yesterday and dropped by the Toyota dealership and put about 20+ miles on just the one she wants. Like you said, those babies are NICE. Terrific ride, smooth but yet firm, great power, smooth shifts, cleverly designed interior, etc. On the negative side, it appears NO dealers are letting them go for much less than a grand or two from sticker price being as they're a new successful model in the 1/2 ton market. She's been on a Tundra forum lately, and they say the same. We'll let some time go by and see what happens, can't remember if you ended up buying one, or just test drove.
 

· Premium Member
Joined
·
1,694 Posts
[ QUOTE ]
[ QUOTE ]
I think this whole dealer invoice thing is a marketing deal.

[/ QUOTE ]
That was my assumption also, the term has become useless. Out of the big four, my wife's hot for a new Tundra, 6spd auto, 5.7 V8, loaded. We had to go up to Billings, Mt. yesterday and dropped by the Toyota dealership and put about 20+ miles on just the one she wants. Like you said, those babies are NICE. Terrific ride, smooth but yet firm, great power, smooth shifts, cleverly designed interior, etc. On the negative side, it appears NO dealers are letting them go for much less than a grand or two from sticker price being as they're a new successful model in the 1/2 ton market. She's been on a Tundra forum lately, and they say the same. We'll let some time go by and see what happens, can't remember if you ended up buying one, or just test drove.

[/ QUOTE ]

Go drive a GMC "new body style" 07 Sierra equipped with the 6.0 Vortec Max engine before you decide. You might just be surprised and they will deal with you. I choose one over the Tundra and I was dead set on the Tundra until I compared the Sierra. Good Luck. BTW, Toyota does not deal too much, that is jut the way they are, good products, not much dealing. I bought a 07 Sierra 4x4 loaded with every option GM offers, I mean everything and the Max trailering system, 10,500 pound towing capacity for 41k out the door. The Toyota 4x4's with MUCH MUCH less equipment and options were about the same price. Good Luck.
 

· Registered
Joined
·
8,185 Posts
Discussion Starter · #5 ·
I agree, I have to get her to do that. The dealer in Idaho I was referring to also does GMC, but mainly Dodge diesels. He discounts the GMC's a bunch too. I was in a Duramax a couple years ago for a short time and I thought it was really nice.
 

· Registered
Joined
·
3,394 Posts
You need to come to TX. The toyota dealers are choking on Tundras and will deal a lot. Ad in FT Worth paper had tundras at 6K off sticker on ext cab fully equipped models.
 

· Registered
Joined
·
924 Posts
The dealer of which you speak does about ANY brand, and my company and a couple of fellas I worked with bought Chevy trucks there. They will sell you a Dodge for at least $2K less than you can get the same set up in Billings. They even deliver for a price.
If you can find a dealer that is affiliated with Costco or Costco.com, they will sell for about $500 over dealer invoice. I saved about 6K on my PSD. No haggling.
Dealer invoice is what the dealer pays openly. He gets discounts for floor space, sales, service volumes and such that you won't find out about.
 

· Registered
Joined
·
423 Posts
that same dealer quoted me a price for a new F350DRW in 1999.
I beat his price by $4,000 in Portlnd/Beaverton at a sale 2 weeks later.
Bought a new F350DRW XLT 6-speed for $26,488 (sticker was $39,000). I wish I could buy a 2008 for that price.
 

· Registered
Joined
·
8,185 Posts
Discussion Starter · #9 ·
[ QUOTE ]
that same dealer quoted me a price for a new F350DRW in 1999.


[/ QUOTE ]
The one I'm referring to only carries Dodge and GMC. He's the biggest Dodge diesel seller in the nation, gets 2+ transport carrier loads per day. They pretty much sell them as quick as they come in. The quoted price is what you pay, take it or leave it. A fully loaded Dodge is $10k-12K below window sticker.

Jimmy, I'll tell my wife, she can locate dealers down there and if that turns out to be the case it would be worth going down there to save that much.

Montanafan, my wife checked deep into the Costco deal late last night and as far as she could find out, the only dealers doing that are a few in the huge metro areas like L.A. When she gets obsessed with getting a new horse or vehicle, it's like trying to get a bone away from a pit bull.
 

· Registered
Joined
·
924 Posts
The local Ford dealer here made the Ford dealer in Big Timber disassociate itself from Costco sometime after I got mine. I don't know if the local dealer hooked up with Costco, or just got mad and crapped on the other dealer.
The other cheapest place I found was over in Forsyth.
D.S. said they could sell Fords, too, a few years ago.
 

· Premium Member
Joined
·
4,150 Posts
I get a tickle out of the guys who are just so sure they paid dealer cost when buying a new vehicle.

Couple days ago I was listening to a guy brag about how he paid only $100 over cost. Funny thing is he purchased a nearly identical truck as a friend of mine, and my friend paid about $4K less LOL. I didn't have the heart to break the bad news to him.

Why would anybody think a dealer is going to let them buy anything at the dealers cost? Don't they realize it takes hundreds of thousands of dollars per month to keep a good sized dealership open, and $100 over invoice wouldn't pay the trash bill. Let alone salaries, electric, insurance blah blah blah...
 

· Registered
Joined
·
924 Posts
You are correct that we won't know what the dealer actually paid for the vehicle, but you CAN see the dealer invoice. The dealer gets all kinds of discounts off their invoice like I stated above. They get discounts for square feet of showroom, the size of their lot, the service area and record, and the amount of service they perform. It can be a substantial amount, and different for other dealers. The "dealer invoice" will NOT be different from other dealers. The window sticker has no bearing on the dealer invoice.
 

· Registered
Joined
·
423 Posts
I recieved a quote from Mr Smith....Idaho's premier pickup dealer.
 

· Registered
Joined
·
924 Posts
Actually, Mr.Smith is the worlds largest Dodge dealer. And he does sell one heck of a lot of Chebbys, too.
Here, where I live, 500 miles from Mr. Smith, we see tons of vehicles running around with his license plate frame. Of course, here, and probably Cody, too, every 3rd vehicle is NOT a 4X4 pickup.
Here, where summer is a week in August we have a real use for them.
 

· Registered
Joined
·
777 Posts
My neighbor who also owns a 06 6 liter 4x4 is dating a 13 year Ford Credit employee from Omaha. She said his truck which stickered for almost $50K and "invoiced" around $45,000 costs the dealer roughly $35,000 depending on options because the dealers don't make 10% or so on options like the edmunds data shows. She said each option is different and option can make the dealer as much as 70%! She said my former 06 Mustang GT which stickered for almost $30K and "invoiced" for mid $27's would cost the dealer about $23K!

As stated the difference between "invoice" and retail continues to shrink so when coupled with declining Big 3 sales why on earth would a Big 3 dealer continue to sell less cars at less supposed profit? Plus, what logical sense does it make to have 150 or more vehicles on your lot that supposedly at best have $3K of profit if they sell at full sticker? Sure hold back is supposedly 3% but even so there are too many 6 figure people at the typical auto dealer for these vehicles to only have $3K on average of maximum profit.

She also said Ford Credit is in business to sell vehicles for its dealers meaning everything is negotiable whether you realize it or not. She said if you have good credit or simply good past experience with Ford Credit the interest rate is always negotiable. She said even in this current market if a particular vehicle doesn't have special financing you can push/demand 2.9 or 3.9 financing. While the dealer makes more money the higher your rate she has the power to drop a rate to sell a vehicle. She said if the dealer doesn't want to push for a deep rate through Ford Credit find a dealer that will because they are out there.
 
1 - 15 of 15 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top