What is Dealer Invoice???

[new-nissansDOTcom]

This should be a fun one. I have been wondering just how savvy TitanTalk members are when it comes to buying their Titans. I do expect a high level of auto buying intellect here from you guys, but at the same time I am curious just how well informed and studied today’s Internet consumer really is.

I figured the following poll would give me an indication of just how well understood the terminology “Dealer Invoice” that many dealers, auto buying services and consumers alike are commonly using on the internet and on showroom floors. At the very least it should spark some dialog about what the infamous “dealer invoice” really is.

My answer and explanation will be given once I believe that the poll has had sufficient enough responders to make a somewhat reasonable indication of what and how you guys think, regarding this topic. I will not answer to any post regarding this subject until I have closed the poll. So I will most definitely have to hold my tongue for a bit.

[new-nissansDOTcom]

Interesting, as of right now there have been 57 looks, 3 were me, and only 13 respondents to the poll, none of which were me.

It's FREE and only for fun, no tricks guys!

[new-nissansDOTcom]

So out of 164 views only 28 participated in the poll. Must have been a more difficult question than I originally thought. Anyway, here is my answer to what Dealer Invoice is:

The answer is No. 4- The official estimated and reported dealer cost of the vehicle from the factory to the dealer.

What is Dealer Invoice?

Dealer Invoice is not the actual cost of the vehicle that you may be considering buying, rather it is the official estimated and reported dealer cost of the vehicle, from the factory to the dealer. This is one of the most misunderstood terms in the retail auto sales industry which is becoming more and more talked about and referred to online and on local dealer showroom floors. It is the best reference point to which consumers should compare any dealers’ offer to. Nissan charges all its dealers the same amount for their new vehicles, so the reported dealer invoice amount never varies from dealer to dealer when identically equipped. However, from one dealer to the next, the actual cost (not Dealer Invoice) may vary due to factory to dealer incentive programs, cooperative advertising agreements, dealer bonus programs, factory assistance, etc.

Dealers like any business must make a profit in order to stay in business and continue to best serve their customers. The actual dealer cost for a new vehicle could be fairly argued to include operating expenses and obligated local and state tax assessments; sales commission, inventory maintenance, utilities, supportive personal payroll, etc. etc.

So what does the Dealer Invoice look like and where can it be found?

Dealer Invoice is not the MSRP Sticker on the window (Manufacture Suggested Retail Price), it’s not the little thin sticker next to the MSRP either, that dealers may call “market adjustment” or some other creative term that really is only ADDITIONAL DEALER MARK-UP, above what the manufacture has already marked-up. The Dealer Invoice is a sensitive internal document that is normally filed in safe keeping in the dealers’ business office. All sales departments have a copy of the Dealer Invoice to each of their new vehicles in stock. If you want to see it, ask your dealer to see a copy of the vehicle you wish to buy. Dealers unlike any other retail business, more and more, commonly show Dealer Invoice to the consumers. You can actually get copies online (CAUTION: Not very many online invoices are 100% accurate).

Is it fair to negotiate from Dealer Invoice?

Every business that sells products has a piece of paper somewhere referred to as the invoice. Imagine asking your local jeweler for the invoice on that diamond ring you are considering or the home builder, furniture dealer, the grocer, etc. etc. Although most of today’s consumers believe that dealers make a huge percentage of profit on their auto sales, the reality just doesn’t support that myth. Most new automobiles produce an average profit of 14% before variable, semi fixed and fixed expenses are considered for dealers. On the average purchase price of today’s automobile of $25,000 that is only $3,500 which includes all incomes such as Hold Back, Factory Assistance, Factory to Dealer Incentives, Dealer Bonus Programs, Cooperative Advertising Agreements, Finance, Warranties, Theft Deterrent Systems and Dealer Added Accessories, etc. etc. Seem like a lot? Not really when you look at most other industries and their retail marketplaces. What kind of a percent does your local grocer make? Well before expenses, the grocer will make about 26% on average. Not much on a $3.00 Gallon of milk, but then again how many gallons of milk do you buy every 2-5 years? Now think about how many groceries you buy a month, and in the same 2-5 years paying a 26% mark-up; the average family will spend more money in mark-up to the grocery store then they will to the auto dealer. The jeweler makes an average of 300% mark-up, that’s a lot on a $5000 ring. What about the home builder? The point here is, the auto dealer is one of the most despised profit earning business when consumers are surveyed and consumers demand of auto dealers what they would never demand of any other business and it is the auto dealer where in reality the average consumer will spend the least amount of their hard earned money on profit compared to other retailers.

None of that really matters though here at New-Nissans.com, as we open our books and make straight forward deals; $500 UNDER dealer invoice.