Invoice Pricing - Any Updates?

[tlubull]

A few threads stickied to this forum share invoice pricing of the various trims without any options.

With the new changes have we recieved any new information? My local dealer has said they can offer invoice + 2.9% on the sale. Just curious if the numbers in the stickies are accurate.

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[JesseS]

Find a new dealer, many offer invoice or better.

 

[tlubull]

Yeah, kinda regretting passing up the Texas GroupBuy. My dealer used stickly language like "At MSRP" instead of dealing in terms of invoice. I called to clarify and he said invoice +2.9. Honestly, I'd be happy to just get confirmation of invoice pricing. But it will cost me the difference to travel somewhere.

It was a bit of a drive up to the dealer that was selected.

 

[Skeletor]

Yeah, kinda regretting passing up the Texas GroupBuy. My dealer used stickly language like "At MSRP" instead of dealing in terms of invoice. I called to clarify and he said invoice +2.9. Honestly, I'd be happy to just get confirmation of invoice pricing. But it will cost me the difference to travel somewhere.

It was a bit of a drive up to the dealer that was selected.

He is charging you essentially MSRP. He's just wording it differently. Maybe a slight discount, but his wording makes it sound shady.

 

[tlubull]

Yeah. And to be fair @MSRP didn't bother me much. However most group buys seem to be invoice - $1000 which I should have signed up for.

I was thinking net savings would be $1k. Reality is like a $2-3k savings over MSRP lol.

 

[PSUTE]

Yeah, kinda regretting passing up the Texas GroupBuy. My dealer used stickly language like "At MSRP" instead of dealing in terms of invoice. I called to clarify and he said invoice +2.9. Honestly, I'd be happy to just get confirmation of invoice pricing. But it will cost me the difference to travel somewhere.

It was a bit of a drive up to the dealer that was selected.

Sounds like that puts it into the neighborhood of X pricing....

 

[tlubull]

Sounds like that puts it into the neighborhood of X pricing....

Yeah, despite missing boat on Texas Buyers Group (my fault) getting @MSRP without additional costs is pretty good. At least I got it confirmed.

 

[Beach_Bum]

Yeah. And to be fair @MSRP didn't bother me much. However most group buys seem to be invoice - $1000 which I should have signed up for.

I was thinking net savings would be $1k. Reality is like a $2-3k savings over MSRP lol.

Switch to Granger. You don't lose your spot in line (reservation time stamp) and you'll still get $1000 below invoice. The $2K below invoice was only for new reservations during the month of October.

 

[Judge Rufus]

A few threads stickied to this forum share invoice pricing of the various trims without any options.

With the new changes have we recieved any new information? My local dealer has said they can offer invoice + 2.9% on the sale. Just curious if the numbers in the stickies are accurate.

There have been no changes to the Base MSRP by trim and corresponding Dealer Invoice by trim, to my knowledge. The changes that have been made in the B&P (which is not a final pricing) have been to the various options and accessory MSRP pricing. You can estimate the Dealer Invoice pricing of options and accessories by taking the MSRP of those items and multiplying by 94%. This is not an absolute number, but an approximation of what the Dealer Invoice on options and accessories should be.

You should be able to negotiate your dealer down closer to actual Dealer Invoice. As mentioned above, Dealer Invoice + 2.9% is close to MSRP. The higher trim you are buying, the bigger difference there is between the two.

Just tell your dealer that if he doesn't come down to dealer invoice then you are switching. If they don't agree, then shop around. You have until March something to switch dealers.

 

['18 M2]

My local dealer told me that he’s going to sell the vehicle to me for as much as possible. I’m not kidding, I laughed and switched to Granger.

 

[ZackDanger]

My local dealer told me that he’s going to sell the vehicle to me for as much as possible. I’m not kidding, I laughed and switched to Granger.

He wasn't wrong...

...though I'm guessing he assumed that whatever the amount the sale was going to be for, it was still going to be greater than $0.

 

[tlubull]

Excuse me if I'm sort of ignorant on this, I want to call my dealer and push a bit. But how do dealers afford to do under invoice? Isn't that a loss to the dealer?

 

[ZackDanger]

Excuse me if I'm sort of ignorant on this, I want to call my dealer and push a bit. But how do dealers afford to do under invoice? Isn't that a loss to the dealer?

Short answer: Probably no loss to the dealer.

Long answer: So many people over the years demanded they pay "invoice" that there's all sorts of other profits baked in... like "hold back" and other stuff.... that there is still money on the table when the vehicle is sold at "Invoice." This way the buyer walks out thinking they got the vehicle for what the dealer paid for it, and the dealership gets to keep the lights on and everyone employed. (the sales and the service side are likely accounted for separately... one doesn't subsidize the other)

Longer answer: It's going to be highly dependent on not just the brand, but the specific vehicle, as to exactly how much profit still exists at Invoice (between incentives, brand specifics, etc)... and remember, depending on the dealership's financial situation, there will always be an amount of average profit they must make on a sale.


From conversations here on B6G, Granger has indicated that selling $1k, or even $2k, still leaves a few hundred dollars in profit. This works for them because they own their building and electricity is cheap... and their game is volume. If they sell 200 broncos at $500 profit they're still making way more than the dealership that sells 20 Broncos at $2000 profit. (That's the game they're good at and the one that they are set up to play... your local dealer may have a very different sales ethos.)


You should probably negotiate around "invoice" knowing full well that there are dealers intending to sell the bronco at MSRP... and they wont have any problem doing it. Some will even be selling for thousands over MSRP ("ADM"). Use the fact that there are advertised deals available to you right now for $1000 below Invoice as a negotiating tactic... and weigh how much the convenience and benefit of buying from and supporting your local dealer (and not from Iowa) is worth... and then consider that the dealership might be telling you the truth when they say they "can't" sell you a Bronco for any less than a certain amount... even if that amount is higher than another dealer.

::EDIT::

I should add that what we know about the Bronco, MSRP is about 3% above Invoice.... so, if as mentioned elsewhere, your dealer offers to sell you your bronco at "3% over invoice"... that's basically MSRP...

 

[Beach_Bum]

Excuse me if I'm sort of ignorant on this, I want to call my dealer and push a bit. But how do dealers afford to do under invoice? Isn't that a loss to the dealer?

Dealer's cost is not invoice.

 

[tlubull]

Short answer: Probably no loss to the dealer.

Long answer: So many people over the years demanded they pay "invoice" that there's all sorts of other profits baked in... like "hold back" and other stuff.... that there is still money on the table when the vehicle is sold at "Invoice." This way the buyer walks out thinking they got the vehicle for what the dealer paid for it, and the dealership gets to keep the lights on and everyone employed. (the sales and the service side are likely accounted for separately... one doesn't subsidize the other)

Longer answer: It's going to be highly dependent on not just the brand, but the specific vehicle, as to exactly how much profit still exists at Invoice (between incentives, brand specifics, etc)... additionally, depending on the dealership's financial situation, there will always be an amount of profit they "need" to make on a sale... (or like, an amount of profit they won't sell it for below even if there is still technically "profit" there).


From conversations here on B6G, Granger has indicated that selling $1k, or even $2k, still leaves a few hundred dollars in profit. This works for them because they own their building and electricity is cheap... and their game is volumn. If they sell 200 broncos at $500 profit they're still making way more than the dealership that sells 20 Broncos at $2000 profit. (That's the game they're good at and the one that they are set up to play... your local dealer may have a very different style.)


You should probably negotiate around "invoice" knowing full well that there are dealers intending to sell the bronco at MSRP... and they wont have any problem doing it. Some will even be selling for thousands over MSRP ("ADM"). Use the fact that there are advertised deals available to you right now for $1000 below Invoice as a negotiating tactic... and weigh how much the convenience of buying from your local dealer (and not from Iowa) is worth... and then consider that the dealership might be telling you the truth when they say they "can't" sell you a Bronco for any less than a certain amount... even if that amount it higher than another dealer.

This is great info.

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