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5 Important Things to Know About Car Invoice Prices

American Government Special Collections Reference Desk

5 Important Things to Know About Car Invoice Prices

Patricia Strasser
January 20, 2011

Patricia Strasser
http://upholsterydesigners.com

Internet technology has revolutionized the way we do different activities. In the past, car shoppers could not easily tell how much a new car cost for dealership. Now, consumers have several tools that they can use when making their purchase including the car invoice which can detail car invoice prices. A car invoice might not reflect the true costs that the dealer has to charge and nonetheless, this is a significant point to be taken into consideration. By knowing the following aspects of car invoices, you can prevent making any wrong interpretations and bad investments:

It is a document which puts forth the dealer's costs for a new car

A car invoice itemizes all the dealer's costs involved for acquiring a new car. The manufacturer sets an invoice price which the car dealer must pay for every car he buys. The car invoice also includes other equipment packages and pertinent fees such as the destination charge, which is needed for transporting and delivering the car to the dealership.

It does not necessarily represent the price that the dealer has to pay

Many newbie car buyers mistakenly think that car invoices are the actual cost that the dealer should comply. In reality, the car invoice price is just one among the many costs that a dealer has to comply. There could be a holdback amount that may either be a flat rate amount or a percentage of the total invoice price. The manufacturer may reimburse the holdback amount to the car dealer allowing him or her to buy the vehicle at a lower cost. Dealers may also periodically take advantage of incentives from the factory to reduce the invoice costs.

It can be used as a basis for negotiating the price for the car

It's not advisable to pay for a car using the manufacturer's suggested retail price (MSRP) except maybe for the latest models. Instead of the MSRP, the car invoice can serve as the starting point for negotiating car prices; this is one of its best features.

There might be other expenses involved other than the invoice cost

Customers may incur other costs aside from the invoice price. The dealer might not directly inform you of any additional charges during the deal. Educate yourself with your right as a car buyer and ask as many questions about any possible fees that the dealer might require of you before you close the deal.

It is now readily available online

Car invoice can be easily obtained. There are many websites that provide car invoices to interested customers. They can provide customers with relevant information like invoice prices, vehicle model, the suggested retail price of the manufacturer and other add-on packages and deals. You can also personally ask a dealer's car invoice copy.

The car invoice is meant to be a useful tool for automobile buyers. But, buyers can only be able to use it to their advantage if they are aware of its different components and exercise discretion.

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In case you want to find car invoice prices, visit http://www.carsaver.ca

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