Question what is considered invoice for GM? I'm dealing with a dealer on a new Colorado and he is telling me that he'll sell one when they come out for invoice plus $850.

The question is what is considered invoice on the new Colorado and Canyon. Is it still 17% or 14% or neither?

Bill




Ford and Dodge's 8's cant even keep up with GM's 6's!

 

Invoice is supposed to be what the dealer actually pays for the vehicle (they buy vehicles from the manufacturer & sell it to you at a profit). He's basically telling you he'll sell you a Colorado for $850 over what he'll pay for it.

However, there are extras he can add in to bring his profit (and your price) up. Then there could also be incentives or bonuses GM is paying him on each one he moves.

I think Jason E is one of our resident dealers, and can go into more detail and perhaps offer advice.

 

I know that there are the dealer rebates or incentives that they get on the backside depending on there volume per month.

The question is when they list the MSRP what is percent of that is the invoice, for todays GM vehicles. When I bought my 2000 Silverado I remember it being 14% or 17%. So the true invoice was just the MSRP/1.14 or 1.17. Real simple.

I''ve seen conflicting invoice numbers on a couple of different sites now that the MSRP for the Colorado and Canyon are now out.

Thanks
Bill

 

i think maybe you have MSRP and invoice backwards?

 

?


MSRP > Invoice

MSRP/1.14=Invoice


Does that help!

Bill

 

FWIW... my in-laws have a standing agreement with a local Chevy/Pontiac/Olds/Buick/Cadillac/GMC dealership to buy any car for $300 over invoice....

And, to be honest, you can do even better than that if you invest a lot of time.

$850 over isn't horrible though, since Colorado is an all-new vehicle, assuming you get one early on...

As a rule of thumb, (if you want to forget the invoice thing) it seems that 9% off MSRP equals a decent price before any applicable rebates.

 

my bad, i misread your post.

 

As a rule of thumb, there is no rule of thumb. Period. Anyone who says that you can take the MSRP, take a number and calculate the dealer invoice, simply doesn't know what he/ she is talking about (No offense). There is no simple formula. All vehicles have different profit margin percentages. Not to mention, if you have two identical vehicles on two separate lots, the invoice can be different between the two due to LMG advertising charges and a bunch of other factors that a dealer has previously aquired.
In short, it is in your best interest to just do a little shopping around and feel out the numbers a little. I'll sell one to you if you'd like. I'm the local CamaroZ28.com dealer based out of Northern WI. I'm a full range GM dealer. If you have any other questions, post 'em.

 

Not to mention that the longer a car sits on the lot, the more the onvoice will be. In some states, property tax is charged to GM (who charges it to the dealer) for the vehicle once it sits on the lot for a certain period of time. Some states I beleive start charging after 2 weeks, some a month, etc. Some states will not charge a tax at all on unregistered vehicles.

I beleive GM also has a charge if the vehicle sits too long. They don't want dealerships letting their investments rot on lots.

 

MSRP is what you see on the sticker. Edmunds will have the invoice price to expect and what they consider the be true market value. You can probably do better than $850 over.

 

Gentlemen...

There is no real number known as "invoice".

It means quite literally nothing. Zip. Zero. Eephus.

A dealer will NEVER let you know what he/she paid for a car, and whatever number they show you as "invoice" is a bargaining tool. IT IS NOT WHAT THEY PAID FOR THE CAR.

Bottom line:

Shops dealers and play hardball. They're not out for your friendship, they're out for your cash.

 

I've done a little investigating on a couple of web sites ie. kellybluebook.com, autobytel.com and microsoft's msn auto's.com and what I've found is that for the Silverado's and Tahoe's the Invoice is MSRP less 14%. But for the Colorado and S-10 the Invoice is MSRP less 10.5%.

This has been consistant thru all three web sites. Good news if your buying a full size but not if your buying a mid size!

I will never pay MSRP for anything! Never have and never will! It's just how close or below Invoice can you get them!

Thanks
Bill

 

Not sure about the deal with the longer it sits the more invoice is deal. I think if the dealer gets thier floorplan from GMAC, they get the first 90 days free.

There really is an invoice. If you've seen a real invoice, it has what MSRP is, what 'invoice' is, what the hold back is and adverising charges, if the dealer is setup on that program. It doesn't have any rebate info on it nor does it have any dealer cash back on it. That changes, usually quarterly, and the dealer recieves that seperately. The dealer I worked at recieved it via fax.

I never actually sat down and tried to figure any markup percentages, but I heard that there is a certian % on the base vehicle price and another % on the options. Not sure if that's true or not.

As far as what is a good deal, it's simple economics. Supply and demand play a huge role. When the new Silverados came out in 99, supply was low and demand was high. The first dozen or so we sold, we sold at MSRP. After that, the supply was starting to creep up and demand was going down some. Other dealers in town started to discount the truck some, so we had to as well. Before the end of the model, we were selling them for about $500 over. Now, I pretty sure you can get one around here for real close to invoice. Same thing happened to the Camaro in 93. You couldn't find a Z28 with a 6 speed around here hardly at all. I paid MSRP, or really close to it but it's hard to tell with at trade-in, but I had to have a black, M6 Z28 with a CD player. I was young and dumb and had good credit, so what the heck!!

$850 over may not be a bad deal for one of the first Colorados to hit the lot. Depending on the type truck you get, that's probably any where from $250 to $1,000 off MSRP. If you wait 6 months, you could probably get one for less and there maybe a rebate. If you wait until the 05's come out, I'm sure there would be a rebate on the 04's and you could get one for $100 or so over. Remember, it's all supply and demand!

Economics class is dismissed!!