WTF is “invoice” ….. really?

Now Toyota dealers are a whole different story, they GIVE their cars away at or below invoice to hit rebates/incentives. Now that being said Toyota may loose on the front(sell under invoice) but, they will make it up in the back(finance apr,warranty,gap,paint protection,alarm,ect....)

That's an unqualified general blanket statement. All the Toyota dealers that I visited before purchasing my 4R had add-ons that significantly marked up the price--and profit--of the vehicles they had for sale. Window tinting, window etching, pin striping, wheels/tires, lift kits, Scotchguard, weatherseal, braking enhancement systems, etc. There's nothing "in the back" about these intentional add-on profit makers. They are right up front and they are there for a reason--to make more money. They raise the "sticker" price of vehicles and the buyers have to start dealing at that new price instead of the original sticker price.

Most any dealer will do what it has to do to make its numbers because if they don't make their "numbers" they don't get their next allotment. But they're not going to give you anything they don't have to, and often they don't. Rebates are from the factory so dealers do not lose by offering factory rebates. If they give a customer, say, a $3500 rebate, that money is fronted by Toyota, and not out of their own pockets. But as has already been discussed, manufacturers also pay incentives to dealers. "We'll give you x-amount $$$ bonus, if you sell x-amount of these vehicles. But you need to know these things to get the best deal you can. Because dealers don't have to give you the rebate either. If they have the opportunity to keep it for themselves, they will.

When buying a new vehicle. I like to deal over the Internet. When shopping for my 4R I looked for one that was just placed on the lot and with no add-ons. I called the dealer(s) and specified that I wanted one equipped exactly as it came from the factory. I ask for their best Internet price, then I compare prices along with driving distance, dealer reputation, etc.--looking for the best overall deal for me. Then I go to the dealership, drive the vehicle, check it out as thoroughly as I can, then buy it.

There is huge profit for the manufacturers, however. If there wasn't they wouldn't be able to offer rebates to customers and incentives to dealers. Generally speaking they have lots of money to play with. I mean how else could they offer up to $10,500 in rebates? I got a $7500 rebate on my Isuzu Trooper when I bought it in 1999. That was nice: No haggling, no wheeling and dealing. I just went in, picked the color I liked, and drove away.

I don't think Toyota offers those kind of rebates. You can get them on American-made vehicles though, especially at this certain times of the year--like when new models roll out or near the end of the year. Like now.

"Invoice" is definitely a selling point and it is a real thing, but all we need to remember is to try to get the very lowest price that we can--out front, and "in back."
 
That's an unqualified general blanket statement. All the Toyota dealers that I visited before purchasing my 4R had add-ons that significantly marked up the price--and profit--of the vehicles they had for sale. Window tinting, window etching, pin striping, wheels/tires, lift kits, Scotchguard, weatherseal, braking enhancement systems, etc. There's nothing "in the back" about these intentional add-on profit makers. They are right up front and they are there for a reason--to make more money. They raise the "sticker" price of vehicles and the buyers have to start dealing at that new price instead of the original sticker price.

Depends on the buyer.

When I was negotiating for my 4Runner, I knew which base model I wanted and I knew the two (count them: 1, 2) options I wanted. I was willing to pay for them and I wasn't willing to pay for fluff.

So when a dealer found me the truck with these options and we started talking about the price, it turned out that this particular truck came with pinstripes, nitrogen tires, door edges and handles paint protection, and windows tint.

I said I don't care about the fluff and I'm not going to pay for it. My starting price was the invoice for this base model + the two options (and the fabric mats which are inevitable anyway). And hey, I bought that truck for invoice for the base model plus the two options, with only the doc fee added to it. I kinda got the fluff for free but I don't value it so it wasn't much of a win for me, but I guess it was an "opportunity cost" for the dealer.
 
The point I am getting at is someone knows this number

No, I don't think so.

Or, rather, there are many numbers depending on various allocation decisions and accounting conventions.

Take a simple example. Let's say Toyota has an R&D lab that costs $10m/year to run and three years ago that lab spend 50% of its efforts on 4Runners. So you have a cost of $5m. You want to allocate it to trucks' cost, right? How will you do it? There are many different ways.

The cost of a truck is much more complicated than the sum of invoices for parts plus hours of labor at the assembly plant. There are multiple ways to calculate it, each suitable for a different purpose.

maybe consider that you may be wasting someones time

Maybe consider that you're on an internet forum?
 
No, I don't think so.

Do you think a company that does $225 billion a year in sales and is the worlds 13th largest company doesn't know their per unit cost?

Maybe consider that you're on an internet forum?
*sarcasm=on* well aware I am on an internet forum, which by law, gives me free reign to be a dick to people I don't know, it's awesome! *sarcasm=off*

Yeah there's no room for civility on the interwebz :rolleyes:
 
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LMAO Seriously? Thanks but I really don't need your "simple examples". Do you think a company that does $225 billion a year in sales and is the worlds 13th largest company doesn't know their per unit cost? Keep digging, before too long you will be able to ask Akio in person

well aware I am on an internet forum, which by law, gives me free reign to be a dick to people I don't know, it's awesome! Yeah there's no room for civility on the interwebz :rolleyes:

I'm sure that Toyota knows the cost of every vehicle that rolls off the line, to the cent. This type of knowledge can save millions of dollars for a large company. The dealers work off of different numbers which is why price can vary so greatly especially when you get into dealer incentives and such. I agree with you completely, however there is no reason to be a dick :fear:
 
LMAO Seriously? Thanks but I really don't need your "simple examples". Do you think a company that does $225 billion a year in sales and is the worlds 13th largest company doesn't know their per unit cost? Keep digging, before too long you will be able to ask Akio in person

well aware I am on an internet forum, which by law, gives me free reign to be a dick to people I don't know, it's awesome! Yeah there's no room for civility on the interwebz :rolleyes:

I'm sure that Toyota knows the cost of every vehicle that rolls off the line - to the cent. This type of knowledge can save millions of dollars for a large company. The dealers work off of different numbers which is why price can vary so greatly especially when you get into dealer incentives and such. I agree with you completely.
 
With all the “what’s the best price” threads, I’m prompted to start a dialogue, as the constant reference to “invoice” amuses and perplexes me.

I’m hoping for FACTS, vs MYTHS, from those knowledgeable on use of this term, as it applies to the sale of a new vehicle.

Many prospective buyers think they are seeing some sort of “dealer cost” when using the term “invoice”, which (I believe) the car industry promotes as nothing more than a sales tool. No business with a brain reveals their actual costs to prospective buyers.

So, (hoping for civil discourse) what say you?

When you enter a negotiation with a business hopefully you did your homework and run a should cost formula, based on labor for that area, material cost, business credit worthiness, things like that. If they really want to do business with you they should have no problem opening their books to you.

Only then can you determine a fair price & profit for both sides.

That is buying 101.
 
When you enter a negotiation with a business hopefully you did your homework and run a should cost formula, based on labor for that area, material cost, business credit worthiness, things like that. If they really want to do business with you they should have no problem opening their books to you.

Only then can you determine a fair price & profit for both sides.

That is buying 101.
lol @ a business opening their books to a consumer of their product
 
When you enter a negotiation with a business hopefully you did your homework and run a should cost formula, based on labor for that area, material cost, business credit worthiness, things like that. If they really want to do business with you they should have no problem opening their books to you.

Only then can you determine a fair price & profit for both sides.

That is buying 101.

Wow. What dream world is that from? Next time you buy a Toyota, run that by the owner, and stand by to be laughed out the door.
 
Wow. What dream world is that from? Next time you buy a Toyota, run that by the owner, and stand by to be laughed out the door.

My example was a major business doing business with another business at a significant dollar spend.

When I buy a car I do it via email and only deal with people who can negotiate price. If you like wasting time with salesmen that's your deal.
 

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