What are New Car Invoice Prices?

When shopping for a new car, you may come across lots of information and terminology. You may have heard of something called the invoice price. New car invoice prices are the prices at which the dealership acquires the vehicle from the manufacturer. This price often includes the cost of freight and delivery. Of course, the dealership may work out discounts or redeem rebate deals with the manufacturer that may have an effect on this price. The invoice price is definitely not the price you as the consumer will pay. If it was, the dealership wouldn't be able to make a profit.

You may hear dealerships advertising cars for sale at invoice price and wonder how they can do that. This is usually done when the dealership has acquired, as mentioned above, bargains or rebates from the manufacturer. Therefore they are able to sell the car for the original invoice price before their reductions thus making a profit and making the customer think they got a rock-bottom deal. While buying a car at invoice price can save you a lot of money, you can be sure the dealership made a profit on the sale.

There are various ways to look up invoice prices on cars. The three most common resources are the NADA price guide, the Kelley Blue Book price guide and the Edmunds web site. Both NADA and Kelley are available online and in print format. The NADA book is a pocket sized volume with a bright yellow cover while the Kelley Blue Book is a pocket-sized volume with a blue cover. Because the Kelley Blue Book prices are often higher than the same prices in the NADA book, dealerships use the Kelley Blue Book.

New car invoice prices can be used to better understand the value of an automobile. Before you go to a dealership to shop for a car, you should research the various invoice prices of the vehicles you are interested in. That way if you come across a sale that advertises vehicles being sold at invoice price, you know if you're getting a good deal or just a lot of hot air. The vehicle buying and selling game is one that can be mastered with research and education. You can find the perfect car for you at a reasonable price when you understand what you're looking for and how much it should cost.

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