Originally Posted by
Hondaman
How much negotiation is there on a new car. Buyers can find out invoice online, but what other deals do dealers get for purchasing say 5 cars at a time that helps boost their profit?
Despite what some dealers would like you to think, there is no "volume discount" on cars. Think of it this way: manufacturers don't give a shit how many cars you BUY from them. They care how many you sell. So you'll get bonuses for selling more units than planned, but you are going to be buying the same regardless.
The price of a car works like this:
Invoice = "Actual cost" + Holdback (2-3% of the MSRP of the car)
MSRP = Invoice + "Markup"
Total price = MSRP + Freight + Advertising fees (if applicable) + Documentation fees (if applicable)
Out the door/on-the-road, etc price = Total price + tax + tags/title
You might be able to buy a car for Invoice, but a dealer will never give up the holdback. That's basically the minimum profit that is guaranteed to the dealer for selling the car. It's not written down on anything, the invoice, the monroney label, etc. It is paid to the dealer at the end of the month after the car's been sold.