How to find the DEALER INVOICE price of a car, and how to use it in negotiations with a dealer

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is for screwing up yesterday's title see what I did that yeah you recorded that that you should apologize to into the audience for having accidentally screwed up the title of yesterday's video yeah yes so yesterday's video was really focused on new card pricing and what you should offer for a new car and Ray and I will do a video in the near future about what the offer is you should make on a used car we'll talk about the strategy behind that but I think what we wanted to do today dad is talk about how you actually get access to dealer invoice pricing because a lot of people and the comments asked us about that as well which is you know share offer one or two or three or eight percent off MSRP got it but how do we see how much the dealership actually paid for the vehicle so I was thinking could you talk to us a little bit about about invoices that the dealerships pay how dealerships buy their inventory maybe even a brief mention of hold back and maybe we'll talk about that in a future video and then I'll even share my screen and show an example of getting invoice pricing online from from a dealership that I was working a deal on how's that sound absolutely it sounds like it sounds like something I might have I don't know first-hand knowledge of it's like to me the idea of looking at a dealer invoice is like so I don't know like abstract because I've never I've never seen one except for one you didn't get the PDFs and like I'm sure back in the day they probably like faxed them to you or something I don't know yeah it's if you don't know what you're looking at well then you don't know what you're looking at but but you you know you can I can help guide people as to what it is they should be looking for and looking at and as far as ways to get invoice 'iz and then voiced pricing you know I even I've searched the internet and it's more difficult today believe it or not than it was 15 years ago to find out what the what the actual dealer invoice was on a car but there are some good sources out there Edmonds has some information to give you some pricing guidelines that suggest what the possible invoice might be on a particular car TrueCar if you go to their website and don't necessarily click all the way through that you want to get quotes because if you click through that you want to get quotes well then you're about to be bombarded by I don't know six seven maybe eight different dealerships that are gonna start emailing and Halden yeah well we can you come in when would be a good time for you to take a look at this car but if you don't get to that point you can still get the information as to what transaction prices have been and so you have some idea as to what's a fair amount to get offer or an unfair amount to get off but but part of the reason I like Edmonds which they have it's called true market value I think it's what it's called something like that yeah yeah tmv if you google search Edmonds tmv and I'll link to it in the description below the reason I like that one is a the lead gen portion of it is at the very end like you don't even have to click through but yes is similar to true car and then the other thing is with the Edmonds one it shows you MSRP and kind of like the suggested price which is like the true car price of like here's what we think it should be then it also has the estimate of what the dealer invoice price is and I think you know because we've talked about before with the the downfall of relying solely on the true car price is that it's in you know the great deal that someone got was at that moment in time and was available in that moment in time because maybe it pushed the dealership over the edge for factory incentives and and things like that so yeah hard to really attach yourself to this concept that you're gonna get that great deal every time and whereas the Edmonds tmv it's like okay it shows you what the estimated dealer invoice was which i think is more accurate yeah probably I mean yes you know that's that that incredible deal that you always see listed on true cars is is the one that might have happened when the last day of the month that was allow the dealership to pick up an extra hundred or one hundred fifty thousand dollars in the factory incentive money exactly having hit or surpassed their sales objective that was set by the manufacturer and so they might have been willing to lose two or three thousand dollars to pick up that that one hundred one hundred and fifty thousand dollars and and that's not always gonna be the case but let's get back to what the invoices are and how to get them honestly I can tell you when in all the years that I was in the business that if I had a customer that came in and wanted to deal just directly with me as the sales manager or even with the the salesperson as their in a mini area if they said listen I want to make this as as pain-free and easy and as transparent as we possibly can here's what I'd like to do mr. sales manager I would like to pay you X amount of dollars over invoice that that X amount might be 200 300 500 hours over invoice less any customer incentives that I qualify for and any other dealer incentives that we might be able to apply to lower the price the only thing I ask in order to accomplish that is that you share the invoice with me of the car that I've selected to purchase can we do that and as a sales manager I would say absolutely I couldn't answer that question fast enough because that just meant it was gonna be easy it was gonna be easy for the customer it was gonna be easy for me it was gonna be easy for the salesperson and and so what I would do is actually I have an invoice book of every car that I had in inventory and I could just buy stock number go pull the invoice up yeah and walk it out to the customers share it with them and and then when I stopped killing trees in Brazil it might bite not printing up all these invoices and just having them sit in the book I kept them online so that I could print them as I needed them yeah and and I would share with the customer what an invoice is typically show what the MSRP or retail side of it is and what the wholesale side of it is the dealer pays for it and then there'll be other numbers on an invoice that reflect what the whole back portion would be which like we've discussed can be anywhere from two two and a half maybe three percent of what the MSRP is that the dealer will receive as a quarterly bonus for selling cars and dealerships will oftentimes cut into their home back they are going to make car deals and there could be other things like gas reimbursements and things like that I if I remember correctly many many years ago I think it was sixty two hours or seventy-five dollars that was reimbursed on it every accurate for the full tank of gas that we gave to the customer so that acura was actually paying for the full tank of gas Wow but that was that that's actual you know when you think about that's actual income that's that's especially when gas prices were really low you guys were probably having nice margin there when gas prices were low and then when gas prices were really high yeah it wasn't quite enough so you take the good with the bad and you just learn to live with it so you can also remember the other day when we were talking about ordering cars well every manufacturer has ordering guides and the ordering guides and and you can and you can look at them both just on the retail side or the MSRP side or the retail and wholesale side and you can go through the ordering guide with the customer showing them exactly what the mark-up is on every option that they choose really I don't what the cost of that option was as opposed to what it what the suggested retail is on that and and you can build the whole car and and show what the wholesale pricing is now there are certain things that might not be reflected in in the invoice pricing or wholesale pricing when you do it that way and one of those things might be dealer advertising associations because many many many manufacturers have regionalized or or localized advertising associations where all the like brands in that area agree to contribute X amount of dollars to go into a collective advertising pot so that they can do localized advertising for the dealer group and that could be $100 or $200 per car that gets added to the invoice and the reason that gets added to the invoice is because the dealers are actually paying that but it goes into a generalized fund for the regionalized marketing and those are when you see the commercials on TV like you know I'm here Madeline so it's like we're Washington area Honda dealers those yes yes yes so you know that wouldn't necessarily be reflected in the in the order guide but it's something that that your local dealer can at least let you know if they are a part of an ad association how much they get charged per car and they are legitimate course they do get charged per car because that money goes into a rather large pot yeah that localized advertising for the group but if I'm the customer I don't really want to pay for that like you can yeah well the deal work did so you are it's it's just a cost and you're paying for no no I trust me I recognize it I'm just saying I know you're saying you you you don't want to have to be the one that pays for that no I get it like it's like I don't even enjoy when I'm watching TV and I see those curtains come on let alone do I want to be subsidizing them I understand so I guess they're they're a variety of things that don't actually even show up on the dealer invoice so this whole idea of you know invoice plus 250 invoice plus 500 in terms of like I'm getting a good deal and you're kind of armed but it's more of a sales tactic at this point than anything right well no you you are as long as you're as long as the dealership agrees to apply whatever customer or dealer incentives that might be available okay from that price that you've agreed upon so you know if if it was the invoice was 30 and you've agreed that you'll pay 250 over invoice so your thirty thousand 250 but there's $2,500 in consumer or dealer incentives that can be applied to lower the price yeah well then they'll take $2,500 off of the 30,000 250 to get you the ultimate son price it's it's a fair way to do it it's a way that that recognizes that a dealer has to make a profit you know yeah they need to be it's a profit-making organization and and it cuts to the chase and cuts down the amount of time that's involved in while getting to the bottom line number that's a fair number for everybody involved definitely and and and I'll share my screen because I know I was talking to you dad I was working a deal for one of our customers I think I'll hit share here hopefully there's not too much stuff on my screen and and I was working with no you're too much information okay I don't think there's any big bad here you can see but I'm working on a deal for a client for a Jaguar and and I just you know and you can see these messages were from today you know and here you go the dealers saying I'm essentially losing $1,800 to put the deal together and I asked her to you know I knew that we got a competitive price but I in my email before I just asked I said can you send me over the invoice you know so I can review that with the client to convey to them this offer that we have in front of us and she's out of office working but I mean you can see right here so dealerships are willing to lose money to move units and you're not she's not necessarily losing my she is essentially 1800 hours below what the invoice amount is but you don't know what all the all the factory to deal with centers there might be on that particular car and some of those incentives allow the dealer to lower the price of the car so where it looks like they're losing money but they still might be making I don't know 500 maybe $1,000 who knows it's it to me it's probably a little early in the month for them to take an $1,800 loser to get to any say objective I can see somebody doing that maybe more towards the end of the month but it what she's telling you is essentially she's 1800 hours below cost she's not losing 1800 hours at this point she's essentially 1800 hours below cost and she's about to apply whatever incentive that they're getting from from Jaguar to to allow them to be able to be in that position and still actually be making some kind of small profit this is um this is what I love about you is this is this is it this is all you love about me after all these years oh my god I mean I negotiate deals for our customers and I'm still learning stuff every single day from you because you're right they're not losing eighteen hundred dollars there's all sorts of incentives on the back and that I'm not fully aware of but it is a great kind of marketing or sales tactic for her to say yeah of course I'm eighteen hundred dollars below cost which builds confidence on our end look I was I was just feeling overly confident I think that's this this expertise that you bring to the table is to kind of be pragmatic about it yeah really where she is might represent a really really really aggressive deal for the vehicle that she's selling and for the amount of those vehicles that might be out there that fit the color combination that your client wants yes it really could be a just a phenomenal deal for your client well the thing is I have quotes from another dealership nearby and and they're not even close to that and I disclosed this deal to them and they were like how the hell are they losing that much money so so I'm I feel confident but but regardless I think the point I'm trying to make is you can ask but even if you're asking for invoice or where you are relative didn't place it's still not necessarily going to be like you said you know indicative of the true situations indicative of the real cost yeah yes and and so I think I mean I'm just I'm trying to put myself in the shoes of our audience I think we need to do some more content around used cars because on the new our site it seems not easy but relatively straightforward how to approach these challenges on the used car side and we do it for our customers it is trickier it is harder and so we'll have to come up with some more content around there well I guess leave a comment down below if that's what you're interested in is about used cars certified pre-owned how to make offers pricing etc yeah we can we can tackle that on one another day absolutely so one thing I wanted to just note right before you hit us with your your classic outro is my dad when when he first retired he had a friend from the car dealership that he worked at that like have a screen printer I don't know and like that's a that's and that's embroidery that's time thank you yeah yeah this is this is high quality stuff and so my dad like retired from the car business and then I made a logo with our last name on it and now the whole family has team Chuck's good gear and I just noticed that you're wearing your team Jets could pull over and I'm wearing my team shots well and and just just a quick story the the the story behind that team chefs get top is that was to commemorate a trip that you and I and your sister took to San Francisco to go watch our beloved Arizona Court display the San Francisco 49ers at Levi's Stadium in Tober of 2017 I think at 17 which is why it says San Francisco on there because I just thought it would be nice to have something that we could look at and always bring back the memories of us sitting first row in the endzone that the person sitting next to me was I don't know the cameraman okay so we were we were as close as you could get and I remember that day Laura Oakman walking by and you stopping her to tracks by calling out Laura I love you it's the truth and she stopped and she chatted with us two or three times and we just had a really really great trip and well what made the game even better was the Cardinals actually won that yeah yeah this is which is one of only one or two that you you and I have ever seen yeah wonder their Road games that they've actually won yeah yeah well I just thought it was funny that we were both wearing our our team jet ski gear today so we'll have to see if people down below if you're interested in the team chefs could pull over maybe we'll do a contest or something like that sends someone a free team chefs could pull over or maybe a team your Auto advocate yeah but I feel like team chefs get just has more of a ring to it it does it could be team chefs go to your auto Africa that we just put your face on it I we did voucher hit it without rim please folks we're done I will see you again tomorrow I promise yeah okay alright we're doing tomorrow I'll see you then okay I'm in
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Channel: YAA (formerly Your Auto Advocate)
Views: 203,493
Rating: 4.8733454 out of 5
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Length: 18min 38sec (1118 seconds)
Published: Tue May 19 2020
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