Originally Posted by rory breaker
1) Invoice pricing is not what dealers truly pay. Great marketing huh?
2) If a dealer is desperate for end of month/quarter/year numbers to achieve a bonus, ranking, or allocation advantage moving forward, it's their call if they want to invest in that advantage by reducing profit. But rest assured, they most likely did not take a loss on that car, or any car.
They do pay invoice, but then they get "incentives", i.e. a kickback. So the net sum is lower than invoice. Also, the dealers make a profit on financing (more kickbacks from the finance companies), warranties and selling you overpriced extras not included in the sales price (mud guards, cargo liner, winter wheels, floor mats).
So it has unfortunately become commonplace to pay under invoice.
And worse, getting a final out-of-wallet price from a dealer has become harder than pulling a tooth with a wet noodle. They know that almost all buyers finance through them, and will accept all the extra costs that adds to the total (and their profit margin).