Invoice Price
Category: finance
The initial price the manufacturer charges the car dealership for the vehicle.
The invoice price is the baseline cost for the dealer. It includes the base vehicle cost, installed options, and the manufacturer’s destination delivery fee. Dealers frequently hold back a "dealer holdback" percentage—a hidden rebate from the manufacturer—meaning they can technically sell the car *at* invoice price and still retain a net profit.
Common Examples
- The sales manager showed us the factory invoice price to demonstrate that our offer was already below their true cost basis.
- Negotiating from the invoice price upward is a common strategy to minimize the dealer’s profit margin on the initial transaction.