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Definitions Used in the Car Sales:
MSRP: Manufacturer's Suggested Retail Price. This is listed on the window
sticker and is often call the List Price. However dealers can sell a vehicle for
what ever they want.
Dealer Invoice: This the price that a manufacturer charges its dealers.
Many people mistake it for actual cost.
Hold Back: A hidden amount that manufacturer give back to a dealer. It is
a percentage of the MSRP or the invoice price.
Dealer hold back is a hidden profit manufacturers apply to the invoice prices
and give to the dealers. Dealers are allowed to use this profit anyway they see
fit. You can use it to leverage for a discount.
Rebate: A discount or incentive that is supposed to be given to the
consumer.
Dealer Cost: The actual cost a dealer pays for a vehicle. Invoice -
Holdback - Rebate = Cost.
By knowing how much profit dealers are making, you are in a position to
determine how good a deal you are receiving. If you can land a price quote
within $1000 of dealer cost, you are getting a great deal. In many cases you
will see a price well below dealer invoice because of large rebates and hidden
incentives called dealer holdback.
Refer to internet pricing services that are easily available online
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European Auto Outlet Car dealership sells luxury cars at an affordable price. Conveniently located in Dallas. |
Tri-Star
Insurance Professionals, Inc Offers best coverage at the most competitive rates. Located in Plano, TX and serving entire DFW Metroplex. |
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