What is a Car Invoice Price?

Tuesday, April 12th, 2016 - Car
new car invoice prices 2016

New car invoice prices can be a little confusing to some people. With the numbers and various details to read and compare to other cars, there are a lot for us to process. So what is invoice pricing? What do the number mean? What subsidies are you paying for a car? Here’s some explanation about the new car invoice prices.

What is Invoice Pricing?

When a car factory sends a new car to the dealer, they send the dealer an invoice with the car price included in it. That price is the new car invoice prices. Invoice price can also be called the dealer cost. The price that is mentioned on the invoice is not the exact amount of money that a dealer should pay for the car to the manufacturer. The price is usually much higher than the actual cost. That is because there are discounts such as the Dealer Holdback discount and the Dealer Cash Incentives. Other discounts can be resulted from high number of sales that the dealer made during one particular month. Those discounts are not written on the invoice.

You need to know that the destination charge, the rebates, the tax, fees such as title, license, advertising and registration fee do not appear on the invoice. In some cases, the destination charge has already included in the invoice price. You need to be really careful when checking that kind of invoice. The conclusion is, you can’t really find out the actual net cost for a car.

Invoice Pricing Discrepancy

One invoice price is different from another invoice prices. It can happen even if they are invoices for the same car type. It is because every dealer implements distinct pricing from one another. When comparing different new car invoice prices, don’t forget to double check the match between the vehicle’s styles and options. The slightest difference will cause an invoice discrepancy. The invoice disagreements can also caused by different region pricing. That depends on the distribution in every region.

Before buying a new car, examining invoice prices for every car is important. You need to know every detail and amount you will pay for a vehicle. Some invoice will include more in depth pricing about the new car, while some others don’t report as much. That’s why you should read carefully about every point, not only the total amount mentioned on the new car invoice prices.

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