Dealers

• Car dealers work like any other business; buy low and sell high is the name of the game. Through arrangement with the factory, new car dealers receive a discount on the merchandise, called wholesale.
  
  

Invoice Price

• As the name suggests, invoice price is what the dealer had to pay the manufacturer for the car.
  
  

Profit Margin

• Dealers cannot dell a car at wholesale and make money, which is why the factory sets a "suggested" retail price called the manufacturer's suggested retail price. The difference between invoice price and MSRP is the dealer's potential profit margin.
  
  

Invoice Variations

• The invoice amount is determined by the factory cost of the car, which includes base cost and all additional options.
  
  

The "Big Buy" Lie

• Don't believe those car salesmen who claim to have gotten a "factory discount" for selling vehicles in bulk. All dealers large and small pay the same wholesale (invoice) price for their cars.