Do dealers lie about the MSRP?

[FL-JOE]

I would guess, and this is strictly a guess, that a dealer as big as North Trail either gets bonuses during the year from Newmar and Tiffin as the new coaches sell or they get them cheaper in the first place. I doubt there is a significant difference between what a large dealer actually pays and a small dealer but I'm sure there is a difference.

Remember, a large dealer like North Trail also makes a huge profit from selling a larger number of used coaches, especially this time of year when many northern dealers are sitting in their offices playing solitaire.

 

[Hawkeye]

I do't care what industry you're in, the more you buy, the larger the discount. It's no different than the TDS fuel card, larger buying group, more discount.

 

[TJ&LadyDi]

We just bought a new car this past week. If the "invoice" we were shown was the actual price the dealer paid, it lost $1,800 in the transaction...unless, there's "more to the story."

Now, I really don't like using the word "lie" in the context of MSRP and invoices. Dealers use those numbers to their advantage, to be sure, but I don't think they actually "lie" in the accepted sense of the word. I do think that there are undisclosed factory incentives available to dealers and that likely account for why it would appear that the dealer lost $1,800 on our transaction.

TJ

 

[Jabber Jaw]

We just bought a new car this past week. If the "invoice" we were shown was the actual price the dealer paid, it lost $1,800 in the transaction...unless, there's "more to the story."

Dealers usually COMBINE the incentives and actual price the Dealer sold the car for, to arrive at a net purchase price.
Fairly easy way to arrive at what price the Dealer SOLD the vehicle is to add back the incentives to get a SALE price versus DEALER INVOICE. The difference is the gross profit on the sale, not including the Dealer HOLDBACK (usually 2-3%).

Now, I really don't like using the word "lie" in the context of MSRP and invoices. Dealers use those numbers to their advantage, to be sure, but I don't think they actually "lie" in the accepted sense of the word. I do think that there are undisclosed factory incentives available to dealers and that likely account for why it would appear that the dealer lost $1,800 on our transaction.

TJ