I’m planning on getting a new car (Mazda6) in the next few months and I get an employee discount at the local Mazda dealer for 1% over invoice. I’ve never thought about it, but what does that mean? My natural assumption is that the price would be 1% more than the manufacturing price of the car, but I’m not sure if I’m right.
new car discount.
kelly_f_1999:think of it like this one hundred pennies and you save one of
Robert T:the invoice is the price that the dealer pays for car from the manufacturer. and if you’re getting 1% over invoice, you just have to multiply .01 and the invoice. then add that sum to the price of the invoice. and thats the price you would get it for. for example if the invoice is $ 20,000 then the price you would get it for would be $ 20,200. so yes you were right about the 1% more than the manufacturing price of the car.
nanoman:I’ve never gotten employee pricing but my guess that it’s calculated as a percent of MSRP that is added to invoice price, which is more money than simply taking 1% of invoice price.
So, if MSRP is $ 30,000 your price is 1% x $ 30K = $ 300 over whatever the invoice price is.
HubbaBubba:The term “invoice” has become meaningless in today’s automotive marketplace. It used to be the sheet showing what the dealer actually paid the manufacturer for the vehicle. The terms used now are “dealer cost”, “dealer invoice” and “manufacturers cost”. All they do is confuse people, which is the objective. What the buyer needs to do is agree on a price below MSRP that allows the dealer to make a reasonable profit (they need to make a little to stay in business) and yet give the buyer the feeling he got a fair price.
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