Dear Terry, You recently wrote that few people, besides the dealer and the dealer's accountants -- not even the salesmen -- know the dealer invoice price. How, then, would a customer know if a $250 spread is an amount he should settle for, if you are saying there is no "pure" way to make sure of the number he is working from -- that number being the actual dealer cost? -- Tunya J.Dear Tunya, You're confusing the dealer invoice -- a document that shows the basic factory wholesale price of the vehicle -- from the dealer's actual cost for that vehicle, which is usually less than what that invoice shows, thanks to additional discounts from the manufacturer.Most any dealer will show you the "factory invoice" document, and if you can get within about $250 or less of that figure on most vehicles, you've likely got a fair deal.Here are this week's reader questions:Do economical cars really save you money?Is it ever a good idea to roll one car loan into another?Why can't I find a good deal on a lease exchange?If a car's invoice price is mythical, how can I make a good deal? advertisementRelated Links:7 best off-to-college carsNational auto loan averagesWhat changes auto loan rates?Related Articles:All new cars for 20105 steps to 'clunker' dealTake the 'cash back?'
Dear Terry, You recently wrote that few people, besides the dealer and the dealer's accountants -- not even the salesmen -- know the dealer invoice price. How, then, would a customer know if a $250 spread is an amount he should settle for, if you are saying there is no "pure" way to make sure of the number he is working from -- that number being the actual dealer cost? -- Tunya J.
Dear Tunya, You're confusing the dealer invoice -- a document that shows the basic factory wholesale price of the vehicle -- from the dealer's actual cost for that vehicle, which is usually less than what that invoice shows, thanks to additional discounts from the manufacturer.
Most any dealer will show you the "factory invoice" document, and if you can get within about $250 or less of that figure on most vehicles, you've likely got a fair deal.
A little research could save you BIG on interest.