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Invoice and incentives de jour......
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Posted by Mike Lynch [Email] (#81) [Profile/Gallery] (more from Mike Lynch) on Fri, 20 Jul 2007 10:46:09 Share Post by Email
In Reply to: Dealers Invoice ...... A Joke ?????, CNTDRV55, Thu, 19 Jul 2007 19:03:17
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Most dealers belong to a marketing area group and agree to a fee on the invoice for local promotion. This fee is part of the invoice that the dealer pays, but only rarely are there dealers close enough, but with different ad fees, that the invoice would vary for the same car. Invoice is keyed to MSRP so the same MSRP will have the same invoice.

Now dealers play games with invoices, imagine that. It's not to difficult to monkey with them with all the copier/scanners at everone's desk. It would be very hard for a consumer to bust a dealer on that unless they get really sloppy, which isn't uncommon either. They way around that is to ask to see the invoice on the computer screen, no way to monkey with that.

I've got no answer for goofy incentives. This 30% of cars for 100 plus days you describe is a classic incentive scheme that is designed to sell old inventory and can be very unfair to the consumer. A consumer never has confidence that next months program won't be a skosh better or more favorable, or that the current incentive is the last word and the one to have.

Dealers, even Saab dealers, often don't measure up to the intelligence and savvy of Saab buyers. After all notta'lotta' advanced degrees or even college degrees of any kind at dealerships.

Often Saab incentives are private to the dealer and not public rebates so a dealer is under no obligation to give you the incentives or even admit there are any.

Many dealers therefore advertise "invoice pricing" or some other verbage and count on a lack of knowledge by the consumer, or they don't play fair. So it gets tough to find folks who actually play the game straight.

So can you buy or lease a Saab for invoice less incentives? That leaves the dealer just a couple of points of holdback to live on which isn't really a moneymaker even after you count all the parts and service. The classier more intelligent dealers often don't play that game, but invoice less incentives is not an unreasonable offer for many new Saabs.


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