Invoice Price is what the dealer is billed by the manufacturer for a vehicle. It's typically 4-10% below MSRP. However, dealers also receive holdback (2-3%) and incentives, so their true cost is even lower.
Verdict: Legitimate
4-10% below MSRP
Invoice vs. True Dealer Cost
The Hidden Math
- • Invoice Price: What's on the manufacturer's bill
- • Minus Holdback: 2-3% manufacturers refund to dealers quarterly
- • Minus Dealer Cash: Hidden incentives ($500-$3,000)
- • = True Dealer Cost: Often 8-12% below MSRP
How to Use Invoice in Negotiation
- • Research first: Get invoice from Edmunds, TrueCar, or KBB
- • Start at invoice: Make your first offer at invoice price
- • Expect some back: Dealer may counter $500-$1,000 above invoice
- • Use leverage: "I know you have holdback and incentives beyond invoice"