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Buying service for example..... Posted by Mike Lynch [Email] ![]() ![]() In Reply to: I don't understand the invoice/cost plus arguements, saw, Sat, 19 Jul 2003 18:32:32 Members do not see ads below this line. - Help Keep This Site Online - Signup |
Costco is one. We submit a bid to Costco for their car buying service for how much over invoice we will sell a particular model. The amount over invoice can vary by model and supply. Say that the current Costco bid is $750 over invoice for the model you're looking for. The other part of winning a Costco bid for a particular dealer or line of cars is that the dealer agrees to fully disclose any factory incentives to the customer.
So you pick one out, we show you the invoice, we ad the $750 and that's the price. Depending on what method of payment you're using we deduct that from the $750 over figure, say it's a $2,000 Saab incentive for a lease and a $4,000 Saab incentive for a purchase or no incentive because you're using the 0% financing.
Whether the factory invoice is a true reflection of the dealers actual cost is indeed debateble and a seperate issue, but the factory ivoice is one thing, it is a constant. When buying services or car people negotiate a deal amongst themselves they want to know how much over invoice.
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