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What Is â??Car Invoice Pricesâ???

The definition of the term ‘car invoice prices’ is the price paid by the dealer to the manufacture to buy cars in bulk. Therefore, car dealers buy in wholesale and sell at retail the way most trade business works.

However, we are often shown advertisements that say ‘Selling at Car Invoice Prices’ or ‘Selling below Invoice Car Prices.’ Are we actually being scammed or are those dealers giving us the edge? There are actually two perspectives in which we can ponder upon. Let us start first with the scam.

When we are told that the dealer is willing to sell at either the invoice price or below invoice price, most probably they are trying to con us. This usually happens to small time dealers who might be fresh in the automotive business. However, this means that they will only be able to make money out of ignorant people and lose out on regular clients. The modus operandi of such scams is that the dealers paste price stickers on the cars portraying high prices. When you come to the showroom to look at the cars, you will be shocked at how expensive it is. Then along comes a wolf disguised as a sheep, who will attempt to quote you the invoice price as advertised. However, they are still making good profit from you.

Established car dealers who are really willing to sell at invoice prices or below invoice prices probably have received some sort of reimbursement and help from the car manufacturers. Car manufacturers are willing to do so because when the prices offered by car dealers to customers don’t appeal to them; customers will simply pass off the offer which leads to unsold cars. Therefore, car manufacturers wouldn’t be able to make more cars. So car manufacturers will offers incentives to the customers whereby car dealers act as the middleman. However this means that they will gain less profit, which is something we, customers, should celebrate.

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Dennis enjoys writing and sharing articles on topics like car invoice prices and contact Visit for more details.

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