Understanding dealer invoice pricing: A key to negotiating the best deal on your new car

Dealerships have the advantage when haggling the price of a new car on their home turf. That said, we have a trick up our sleeve to help level the playing field known as dealer invoice pricing.

Dealer invoice pricing

This is the cost a dealership pays for a new car before any profit. Knowing this number can be worth one's weight in gold because it tells you the dealership's markup and how much room you have to wheel and deal.

It's a big deal

Cars are given a manufacturer's suggested retail price (MSRP), which is usually the large number plastered across the windshield. Let's say it's $30,000, but the dealer paid an invoice price of$25,000. This means there's $5,000 of wiggle room.

Invoice price finder

Some car manufacturers have detailed pricing on their websites for different makes and models. Or, check automotive publications like car magazines and blogs - they tend to have have invoice pricing guides. You can also contact a dealership. Not all dealers will tell you this info upfront, but they might if you're a serious buyer.

Using the invoice price

While it's tempting to only want to pay the invoice price, it's a good idea not to show all your cards and leave some profit for the dealer. A fair deal might be a $500 profit.

Incentives and rebates

If you qualify for cash rebates and financing offers, be our guest and apply. Doing this can lower the total price and reflect as much as a 10% discount off the MSRP.

Bonus tips

Watch out for unnecessary fees such as admin fees, doc fees, or nitrogen tire inflation charges.

Chat with a pro to avoid costly mistakes. You may know someone who works at a dealership or has a knack for negotiating.

Don't get lowballed for your trade-in. One way to see what your car is worth is by getting a no-hassle instant offer from Peddle. Heck, we might offer you more, which you can turn around as a downpayment.