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Reading a Dealer Invoice
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| Demystifying Dealer Invoices |
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| Updated |
Jun 10, 2004 22:58:01 |
| Rating |
 16 ( -2 -12.5% ) |
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Description:
Reading a Dealer Invoice
There's a lot of noise about invoice pricing in the car industry. Several automobile information providers on the Internet, like Edmund's Buyers Guide and AutoSite, offer dealer invoice prices as well as MSRPs (Manufacturer's Suggested Retail Prices). People are quick to point out that if you know the dealer invoice price, you'll get a better deal on a new vehicle.
Of course, this is true. However, invoices can be difficult to decipher, as they include information and terms that aren't defined.
We thought we'd walk you through a typical new vehicle invoice--just so you know what's what.
Some points worth noting:
Dealerships that sell high volume, know how to take advantage of special factory incentives, or are savvy marketers, may be able to give you a better deal than ones that aren't. That's because such a dealer may qualify for Special Added Discounts or Special Bonus Savings from the factory. The most important information on an invoice might appear in the small print. Read it and you will discover that the invoice doesn't necessarily include all rebates, discounts and incentives from the manufacturer. We've replicated a relatively standard invoice for a Ford Ranger here. The blue type indicates our notes. (These prices are for informational purposes only, and do not reflect current pricing.)
(amount factory suggests buyers should pay)
SUGGESTED RETAIL PRICE (amount dealer pays)
AMOUNT
R101 RANGER 4X2 XLT/108" WB 12,085.00 10,980.00
1996 MODEL YEAR
YZ OXFORD WHITE CC (exterior color)
EV ROYAL BLUE CLOTH (interior color)
PREFERRED EQUIPMENT PKG.864S
(special package that includes the following items:) 1,976.00 1,679.00
. XLT TRIM
52H . POWER STEERING
94X . XLT GROUP
. CHROME REAR STEP BUMPER
. XLT TAPE STRIPE
. SLIDING REAR WINDOW
572 . AIR CONDITIONING-CFC FREE
. FLOOR CONSOLETTE
99A . 2.3L EFI I-4 ENGINE NC NC
44M . 5-SPD MAN O/D TRANSMISSION NC NC
T80 .P225 STEEL OWL A/SEASON TIRES
X84 3.45 RATION REGULAR AXLE NC NC
XLT WHEEL CREDIT 251.00- 214.00-
153 FRONT LICENSE PLATE BRACKET NC NC
587 ELEC AM/FM STEREO/CLOCK 138.00- 117.00-
624 SUPER ENGINE COOLING NC NC
E CLOTH 60/40 SPLIT BENCH SEAT NC NC
"NOTE--THIS PACKAGE DISCOUNT
RESTRICTED TO RESIDENTS OF:
AL, AR, FL, GA, LA, MO, MS, NC,
OK, SC, TX, & WASH D.C.
(PLUS SELECTED COUNTIES OF:
IL, KY, MD, PA, TN, VA, MO, WV,
DE) -- CONSULT YOUR DEALER FOR ELIGIBILITY."
(This note refers to the fact that the factory is discounting this configured vehicle in certain areas only.)
TOTAL VEHICLE & OPTIONS 13,672.00 12,328.00
DESTINATION & DELIVERY
(Shipping costs to dealer) 485.00 485.00
TOTAL BEFORE DISCOUNTS 14,157.00 12,813.00
SPECIAL ADDED DISCOUNTS
(Additional discounts from the manuf. to the dealer for ordering certain models and packages.) 806.00 685.00
SPECIAL BONUS SAVINGS
(The manuf. also passes saving onto the dealer if he buys a certain number of vehicles in a given month, for example.) 500.00 425.00
TOTAL SAVINGS 1,306.00 1,110.00
SCHEDULE A (MEMO) .00
TOTAL FOR VEHICLE 12,851.00
07 U.S. GAL GAS FACTORY
(Factory charges for 7 gallons of gas) 10.50
PRICED DORA
(Confirmation from factory to dealer) 50.00
BATCH--ID
(A number that indicates where and when the vehicles were manufactured. This is important for processing recalls.)
PRICE LEVEL 610330R10
(Factory code)
VIN: (Vehicle Identification Number appears here. This number is the only way to truly track your vehicle forever.)
SHIPPING WEIGHT 2856 LBS.
THIS INVOICE MAY NOT REFLECT THE FINAL COST OF THE VEHICLE IN VIEW OF THE POSSIBLITY OF FURTHER REBATES, ALLOWANCES, DISCOUNTS AND INCENTIVE AWARDS FROM FORD MOTOR COMPANY TO THE DEALER
(Read this disclaimer!! It's basically telling you that the dealer may be getting even more rebates or discounts.)
(The amount of money a dealer is assessed by the manufacturer for marketing this vehicle.)
FDAF/LMDA ASSESMENT (Dealer invoice price after discounts, etc.)
INVOICE TOTAL (A percentage of the full MSRP that the factory refunds to the dealer.)
LESS HOLDBACK FOR DEALER ACCOUNT (As close to the dealer invoice price as you're going to get.)
MEMO: INVOICE LESS HOLDBACK & FIN. COST (An "A Plan" refers to the cost of the vehicle to individuals who work for the manufacturer.)
A PLAN
$55.00 $ 11,769.00 $ 371 $ 11,398.00 $ 11,165.00
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