Prior to the vehicle being delivered to the dealership, the manufacturer issues an invoice to the dealership for the cost of the vehicle. In addition to the interest cost, the dealer must have insurance for every vehicle on his lot, no different than a consumer getting a car loan and having insurance on it to cover if it's in an accident. Simply stated, Floor Plan financing is a loan at a specific interest charged to the dealership for as long as the vehicle remains in the dealer's inventory. Dealers will typically finance the purchase of these vehicles using "Floor Plan" financing. Over the years we got frustrated watching as customers were being misled by inaccurate websites.Įvery car on a new car lot has to be purchased from the manufacturer (Chrysler, Dodge, Jeep, Ram, etc.). So at Yellowstone Country Motors, we decided it was best to tell you the whole story or better yet, the rest of the story. Then there was this look of disbelief on why we would show them what we actually paid for the vehicle. When we showed them the invoice, there was this look of confusion. (at the end of this article is a tab to click that will explain the most abused invoice scams and tricks that bad dealers are using)įor years we have heard customers ask questions about what the invoice price was for a particular vehicle. When you look at the real facts a lot of them are using the invoice word to entice and trick customers. All this to make the consumer feel like they are getting a special deal. There seems to be a big trend where some dealers are abusing the word invoice by using it in their advertising in many different ways like the following: $99 over invoice or X under invoice or just Invoice cost. We know it has to be a "Win-Win" deal for both parties to be happy. Our low overhead and expenses at Yellowstone Country allows us to make a fair profit while providing our customer with honest dealings and the best price in the market - without having to go through a lot of hassle. Our goal is to create a happy middle ground where the customer is happy and the dealer is happy. Without a fair profit it is hard for a dealer to exist and provide future services to their customers. Most dealerships are reluctant to share this information because they feel it will affect their profit margins. ![]() Customers feel a need to know this information in order to determine if they are getting a "good deal". Recently, we have seen more focus placed on what the auto dealer's "True Invoice" cost is on a new vehicle. ![]() "How can a dealer make a profit if they sell their vehicles at their invoice cost?" This information is not usually shared with customers, because this is how auto dealerships make a profit on selling new vehicles. The information we are about to give you has never been discussed or written about by someone in the car business.
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