Though invoice prices are easily available nowadays, they are only hints when it comes to knowing the actual dealer costs for new cars. Knowing this price can be of immense help in negotiating the price of a car. It is often believed that the invoice price is the lowest price possible but that is not true because the dealers are often able to sell new cars at prices much lower than the invoice prices. The actual dealer cost for new cars is less than invoice prices but the specificity of that cost is quite often obscure. Invoice prices do not provide much information on the holdback amount that the dealer is allowed by the manufacturer. Dealers have the right to decide on how much of that amount they will hold on to. It is known that this incentive is definitely available to all dealers and there are websites that can give information on the same. These sites also provide an estimate of the dealer cost which sometimes include carry-overs, volume bonuses and even customer-satisfaction bonuses. Estimating the dealer’s actual cost and profit can help one strike a bargain when buying new cars. It is best to visit few dealers and make them compete amongst themselves. It is always best to talk to managers than to salespeople and then accept bids from them. With the available invoice prices, one can compare the deals at hand. Ideally, car dealers let buyers know of the fees that are levied on factory invoices like the destination fee and the car manufacturer's regional advertising fee. There are cases when the administrative fees and fuel charges are added to the invoice. There are a few other fees that can be negotiated, such as the state- regulated document fee that dealers can reduce on request. And then there a few other fees which the buyer should not pay at all. These are the floor-plan fees and vehicle-preparation fees. It is best not to agree to pay any fee that does not appear in the factory invoice.
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