Best Explanation of How Car Dealers Make Profit Selling at Invoice Cost
Many consumers navigate to sites like Kelly Blue Book or Edmunds to get dealer cost, but the number shown is really not the true cost. This will explain why this information is available to the public and how a dealer can sell for below invoice or a few hundred dollars above invoice and still stay in business.
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Why it's best:
Manufacturer’s Suggested Retail Price (MSRP): The MSRP is the vehicle’s published retail (base) price, without options, destination charge, or other fees. Because it’s "suggested," dealers are free to sell the car at either a higher or lower amoun...read full review
Why it's a best pick:
Dealer invoice price: This is the price printed on the dealer’s invoice from the manufacturer. However, this isn’t necessarily what the dealer actually paid for the vehicle. There are often behind-the-scenes bonuses, such as dealer incentives or a holdback, that ... read full review
