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Old 04-16-2004, 02:48 PM   #1
fungling
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Default Difference between dealer net and dealer invoice?

Hi there,

I'm just wondering if they both mean the same or if there is a difference. If there is a difference, does anyone have an idea of how much that is as a percentage?

Thx.
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Old 04-16-2004, 07:52 PM   #2
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Default Difference between dealer net and dealer invoice?

I don't believe I've ever heard the phrase "dealer net" before, but I can guess what it means. The Invoice price is what the dealer would like you to believe they actually paid for the car, so maybe the dealer net price is what they actually paid for the car. Hopefully someone else will have more info on this.
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Old 04-16-2004, 10:59 PM   #3
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Default Difference between dealer net and dealer invoice?

I know Mazda has a 2% (MSRP) holdback already included in the invoice price. So even if the dealer sells the car to you at invoice they are making a profit. That does not include any Manufacturer to Dealer incentives or Customer Statisfaction bonuses that some "Makes" give out.
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Old 04-17-2004, 12:52 PM   #4
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Default Difference between dealer net and dealer invoice?

Quote:
Originally Posted by "purrrvert"
I don't believe I've ever heard the phrase "dealer net" before, but I can guess what it means. The Invoice price is what the dealer would like you to believe they actually paid for the car, so maybe the dealer net price is what they actually paid for the car. Hopefully someone else will have more info on this.
I Like your line: "The Invoice price is what the dealer would like you to believe they actually paid for the car".

Dealer holdback, incentives, invoice/MSRP blah blah blah - I don't believe for a second that dealers can afford to pay the numerous sales managers, sales people, receptionists, finance department, to name just some of the employees, then add in the tons of advertising and additional costs of running a dealership that new car sales income is based on some ridiculous tiny percentage of the cost of the car.
(not including the service department, several "team captains", numerous mechanics, and managers, etc. as they also provide addtional income with those $85/hr charges).

Exactly how many New cars does a dealership sell if they are depending on "3% holdback" for profit over invoice? :shock:
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Old 04-17-2004, 09:05 PM   #5
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Default Difference between dealer net and dealer invoice?

Dealershaips are counting on the fact that a high percentage of new car buyers aren't as "internet savvy" as all of us on here and won't do the research required before throwing their wallet on the table. I'm sure many people get their car anywhere from MSRP to $2000 over MSRP and think that they're getting a good deal. And once you get into little things like paint sealant, cloth protectant, and ESPECIALLY the finance department, everybody gets to make a pretty penny.
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Old 04-18-2004, 01:58 PM   #6
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Default finance

oh yah the finance guy. so i tell him off the bat not to @#$%#$it me. no extended warantee, just fill out the paperwork for the loan at the set price i had. he swears he's not that type of guy, but at the end i get this "by the way" speach.

since you are friends with the owner, i got at cost pricing for you

on an alarm system, scotchguard($8), and also a special super duty paint sealant(called wax, goes for $5-25)

first off, if i got something for cost, then it wouldn't get a sales pitch

this really made me mad, especially since i made it clear that i wasn't a sucker and he didn't believe me. not to metion having known the owner and i insisted on no sales tactics.

i am like jabba the hutt when it comes to sales pitchs. "your mindtricks won't work on me, boy"
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Old 04-19-2004, 09:06 AM   #7
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Default Difference between dealer net and dealer invoice?

Agree with all above.
Net = actually paid
Invoice = what they want you to believe they paid
Markup = with all the hold backs; bounus's; etc... I'm figuring about 30%
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