A car’s invoice price is the amount that a car dealership pays the manufacturer for a vehicle. By understanding how this price determines the overall sticker price of a vehicle, you can shop smart when hunting for deals. In this guide we’ll show you how to look up the dealer invoice price, no matter the car you’re interested in.
Did you know that car dealerships don’t own their inventory outright? Floorplanning costs are a little-known facet of the auto industry. At the center of the costs of being in the car business are invoice prices. The dealer invoice price refers to the amount a car dealership pays to the manufacturer for a vehicle. It’s important to know this price because it can serve as a valuable tool in negotiating the final cost of a car. By understanding the dealer invoice price, you can have a better idea of a fair price for the vehicle you’re thinking of buying.
Franchised car dealerships buy their inventory directly from their manufacturers. Similarly to you and I, dealers “floor plan” their purchases. Floor plan is industry jargon for “finance,” and it means that dealerships take out loans to pay for all of the vehicles you see on their lot, just like most consumers do when they finance the purchase of a new vehicle.
Dealerships receive an invoice directly from the factory telling them the price of the car (including the destination fee) that they owe. The dealer invoice is something you’ll want access to when negotiating the price of a new car.
When it comes to used cars, they are primarily bought and sold from the auctions or customer trade-ins, and in these cases looking at a dealer invoice price won’t be an option. You can always ask a dealer what they paid for a used car, but there typically won’t be a willingness to share that information.
On the new car side of things, dealers are much more likely to be open and transparent about the invoice cost they paid to purchase a vehicle. This has become a sales tactic that nearly all car dealerships use to convince customers that they are getting a fair deal.
At the end of the day, there is only one foolproof way to get the invoice price of any new car — ask the salesperson or sales manager at the dealership. This doesn’t have to be overly complicated. A quick email that says, “Hi, I am interested in this Ram 1500 pickup truck, and I want a fair deal. Can you please send me out-the-door pricing, a copy of the Monroney label, and the invoice you paid from the factory?” Will go a long way.
Referencing the out-the-door price is a great way to show a salesperson or sales manager that you know what you’re talking about, and you don’t want to spend hours discussing monthly payment goals. Asking for the Monroney label, or window sticker is also a great way to show you’re on top of your game. You want to know what options and features the vehicle has, and what better way than to look at the Monroney label? And finally, asking for the factory invoice makes it clear to the dealer that you want to make a fair deal.
The same thing applies to money factors when leasing a car. Do not be afraid to ask a dealer what the money factor is on a lease, and to follow that question up with, “Is this the buy rate, or are you marking it up?” If the dealer can’t give you a straight answer, that’s another sign it’s time to find someone new to work with.
Set a target price: Determine a target price based on the dealer invoice price and any applicable incentives or rebates. This will give you a starting point for negotiations.
Preparation is key: Bring printouts of your research, including the dealer invoice price and any incentives or rebates, to the dealership as evidence to support your negotiation. Don’t forget this negotiation cheat sheet!
Stay calm and confident: Negotiating can be stressful, but staying calm and confident during the process can help you secure the best deal possible.
Ready to outsmart the dealerships? Download your 100% free car buying cheat sheets today. From negotiating a deal to leasing a car the smart way, it’s all available for instant download. Get your cheat sheets today!
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Last updated Aug 29, 2024
by Justin Fischer | Last updated Sep 5, 2024
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by Justin Fischer | Last updated Aug 27, 2024
Should I pay dealer “destination ” costs? I always feel like, that’s their cost of doing business not mine. Salesmen have always fought me on it as a hard price of the car. This always forces me to then switch to , o.k. then you’re giving me “blank” amount of free accessories. Maybe I’m wrong here but, again, destination charges are not my problem as I see it. Thank you, Rod Reply
Zach Shefska on August 8, 2020 at 11:34 amRod, the dealership is charged the destination fee by the manufacturer. It’s part of the cost of the vehicle. You’ll be hard-pressed to find a dealership that will discount this fee. Reply
Fred on September 14, 2020 at 4:46 pm Is that destination fee part of the Edmunds suggested price or in addition to? Reply Kevin on April 25, 2021 at 10:56 pmHi Ray & Zach, Hope all is well. Were looking to add a new car. Between the 2021 Toyota Corolla SE & 2021 Kia Forte GT. My goal is to get the OUT THE DOOR PRICE Under $19,899. Do you think its possible ? In MD. Please let me know & keep up the great work! – Kevin Reply
Anthony on May 4, 2021 at 12:01 amKevin, I am currently looking at the 21 Corolla as well. I am finding the LE trim to have an expected out-the-door price of around $21,000 so I doubt you’d be able to get that low very easily. I have looked at the Edmunds report and the CarEdge market price report for the car I’m looking at, you should check them out if you haven’t yet. Reply
Fred on September 14, 2020 at 4:10 pmAre these fees reasonable and are they included in the Edmunds suggested price:
Document prep: $499
title prep: $5
Registration and title: $135 Reply
Fred,
It’s my personal opinion that a $499 fee for document prep is outrageous especially since it takes less than 5 minutes for a secretary to type your name, address, contract price, etc. into a computer and their software automatically adds the info to a ‘form’ sales contract. Same goes for adding information to a computer and then printing a financing agreement. Further, it’s also my opinion that title prep should be part of the “document prep.”
The registration and title are probably fees that are paid to your state auto licensing dept. But you can call that department and ask because you need to know if that fee includes the cost of your tag – probably not if you’re buying a new car. Also remember you have to pay sales tax.
I’m getting ready to buy a car and plan to have my financing in place through my bank or credit union which will give me a better interest rate than a dealer or manufacturer. And – I plan to tell the dealer that I will pay $x for the vehicle – period – that the amount does not include any doc prep or fees that are not part of the tag, title & tax. If they won’t waive the doc prep fee, etc. I am prepared to WALK AWAY. Often a dealer will either cave or call the next day and try to resolve the issue.
You can also attempt to negotiate regarding the dealer’s logo on the car. The dealer is getting free advertising! Tell the dealer you will only charge $5,000 for the advertising or he can take the logo off your car! If the dealer really wants the sale, you might be surprised at what happens. I’d like to add some advice — when you sign the sales contract – look for a few paragraphs called a “Dispute Resolution” clause or agreement. DON’T SIGN IT — DON’T INITIAL IT! You are giving up your right to a jury trial and are agreeing to BINDING ARBITRATION which can be very expensive and not always fair ! If you sign or initial that paragraph and then later file a lawsuit, the dealer will get the case kicked out of court and you will have to then pay filing fees to arbitrate! You also have to pay the arbitrator (judge) AND pay your attorney and pay to rent a place for the arbitration, etc. In court, your taxes pay for the judge, the courtroom, court reporter, etc. Also, in most states, arbitrators don’t have to issue a written reason for their findings and it is almost impossible to overturn an arbitrator’s decision. Remember, it is BINDING arbitration, and if a particular arbitrator finds in favor of the buyer and against the dealer, then the dealer won’t use that arbitrator in the future! Who do you think the arbitrator will favor?
If the dealer says you have to sign the Dispute Resolution Clause or there’s no deal – walk away. If the dealer tells you you have to sign because it’s the law – the dealer is LYING. You do not have to sign. If the dealer offers to reduce the sales price to induce you to sign, and you KNOW for a fact that the dealer is honest and has a good BBB rating & customer reviews, THEN you MIGHT consider signing the Dispute Resolution clause. Reply
I’ve been emailing different dealerships asking for invoices and actually finally had one come in, but the rest just sent me pricing with the manufacturer rebates and “Dealer Discounts”. Are “Dealer Discounts” just an upfront deal from a dealership? and are HB’s the same for every dealer? I know they are different depending on the car. I ask because one dealer sent me pricing that with the “Dealer Discount”, not including rebates, that is under the true price of the car(invoice-HB) based off the invoice from the other dealer. Besides the admin fees I don’t think I can really negotiate anything else off since it is below the true cost. Reply
Rick on October 2, 2020 at 2:54 amAloha! How would you go about negotiations with a dealership that has a monopoly on a popular make in your city? Are these tactics useful at all? What’s stopping these salesmen from just kicking you out because the make of the vehicle is so popular that “someone else” will buy it at it’s listed price? Reply
Daniel Smith on December 23, 2020 at 9:51 amI just asked for the deal invoice for a vehicle and it was exactly the same as the sticker and MSRP. Can the shed any light on this? Reply
