03-25-2014, 01:41 PM | #1 |
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MSRP vs Invoice
I can't figure it out. I'd like to know what exactly is MSRP and Invoice. Obviously invoice is not the value below which a dealer won't make any money (since they can make you an offer for a new car below invoice). So what is it?
Any ideas
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03-25-2014, 01:51 PM | #3 |
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thanks. So if I understand correctly:
Dealer cost + 2% = Invoice Invoice + xx% = MSRP Any idea what xx is for BMW? I heard around 4 to 5%. If that's true then (approximately) Dealer cost + 6 to 7% = MSRP. Correct?
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03-26-2014, 01:10 PM | #5 | |
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03-26-2014, 02:25 PM | #6 |
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7% MSRP to invoice then holdback... but here's the thing, BMW doesn't have traditional 'holdback' like other manufacturers so it isn't the same percentage on every vehicle. IF dealerships hit an objective then they'll make X dollars but that changes quarterly and sometimes monthly and isn't tied to just one vehicle or series... also depends on the market and region.
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