Acura Prices: MSRP vs Factory Invoice vs True Dealer Cost
The Dealer Invoice Price has hidden mark up such as holdback and other fees built into the price.
The following Acura price guides strip these hidden dealer profits out and illustrate the MSRP, the invoice price, Holdback and the true dealer cost. (See Acura price definitions below.)
Why You Should Know the True Dealer Cost...
Knowing the dealer cost gives you needed leverage when it comes time to negotiate a great price. Negotiating from the cost up and not the MSRP down can save you thousands on your next purchase.
Acura Price Terms & Definitions
It can be easy to get lost or confused when understanding new car pricing terms. The following definitions touch on the most important.
The MSRP is a price set by the manufacturer, not the dealer. It serves as a basic price guide for dealers and buyers.
Dealer Invoice Price
The dealer invoice is what the car dealership has to pay the manufacturer to purchase the car. This does not always mean the exact cost of the car for the dealer.
Car dealers often have to take out loans to buy the cars in their lots. Dealer Holdbackis money sent by the manufacturer to cover the interest on these loans, to ease the burden of purchase on the dealer.
Manufacturer Incentives and Rebates
Manufacturers often offer dealers money back deals on the cars they buy, in order to ensure loyalty and save the dealers money. These Rebates are often, but not always, passed on to the buyer.
Manufacturers ship a lot of cars to a lot of dealers, and they charge a Destination Fee for each car they transport. This fee is almost always added to the price of your car.
The dealer will often provide cash back Rebates to their buyers to get them to buy a car, many of which are simply the manufacturer incentives. However, dealers often create their own, unique incentives.
Regional Ad Fees
Dealers advertise to get their name out to the people, and they will often add a regional ad fee to the price of your car. This is especially true if your model was heavily advertised.
True Deal Cost - The actual price Acura dealers pay for their new vehicles. Here is how it is calculated:
Formula for Calculating Dealer Cost of a New Acura:
- Base Acura Invoice Price + the dealer Invoice price of Options + Destination - Holdback = Total Dealer Cost.
- What is Dealer Holdback? A hidden amount that manufacturers give back to a dealer. It is a percentage of the MSRP or the Invoice price. The holdback for Acura is 2% of the Base MSRP. (See the New Car Dealer Cost Example.)
Total Dealer Cost - Rebate and Incentive + Taxes / Licensing Fees = True Dealer Cost.(See New Car Rebates and Incentives.)