The following story illustrates how to navigate a car purchase by understanding the —the wholesale amount a dealer pays the manufacturer—to secure a better deal. The Strategy: Buying Below the Sticker
Instead of haggling over monthly payments—a common dealer tactic to hide the total cost—Sarah insisted on the total OTD price , which includes taxes, registration, and all dealer fees. Dealer Tactic: "We can get you to $450 a month!" car buying strategies dealer invoice
Car Invoice Price and Dealer Markup: Tips for Buying a Vehicle The following story illustrates how to navigate a
Sarah didn't ask the dealer for the invoice; she researched it beforehand using tools like Edmunds and CarEdge . This allowed her to set a realistic starting offer near the invoice price rather than the inflated sticker price. This allowed her to set a realistic starting
Sarah walked onto the lot with a target: a new SUV with an MSRP (sticker price) of $35,000. While the dealer pushed the MSRP, Sarah knew the was actually $32,200. She also knew that the invoice isn't the dealer's final cost; they often receive "holdbacks" or "kickbacks" from the manufacturer, which can be around 2–3% of the price.
"I’m only interested in the final OTD price including all fees".