Hyundai 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 Hyundai price guides strip these hidden dealer profits out and illustrate the MSRP, the invoice price, Holdback and the true dealer cost. (See price definitions below.)
Why You Should Know the True Dealer Cost...
Knowing the dealer cost of a new Hyundai 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.
Hyundai Price Terms & Definitions
New car sales stickers appear detailed with confusing prices when you don’t know what to look for or what everything stands for. If you don’t know what they are it can be difficult to sort out what the actual price is and how much of a deal is being offered. Knowing these basic terms will make the sticker price more clear.
The MSRP is usually not the price that the vehicle is being sold for. It is listed as the suggested price given to the retailers by auto manufacturers to help establish the market value of the car. This price helps to generally research prices before shopping and accentuates retailer discounts. Only the car maker manufacturers can determine the MSRP so it will remain the same at different stores.
Dealer Invoice Price
The dealer invoice shows what the dealership's price was from the manufacture for the base price of the car and added optional accessories. This reflects what the dealership had to pay to purchase the car. The amount normally does not reflect the dealerships actual expenses because they receive Rebates and incentives after the sale of the vehicle
Manufacturer Insensitive and Rebates
Manufacturers place special incentives and Rebates on their vehicles as a strategy to get their products to move. Older models that are less popular regionally are placed in a rebate or incentive plan that rewards the dealer when they sell more of a specific vehicle.
Dealer Incentives are additional commissions or spiffs that the manufacturer rewards the dealer for selling a number of vehicles of a specific make and mode. Incentives encourage dealerships to run more in-house sales of the models that manufacturers wish to sell more of.
Regional Ad Fees
The regional add fees are the itemized advertisement costs to promote vehicles in targeted regional areas by the manufacturer. This fee is entirely the manufacturer’s costs and does not reflect any advertising expenses the dealership may have spent.
The Dealer Holdback is an additional amount of value placed on the car by the dealer to help reflect additional expenses of the dealer. The percentage increase is applied to either the MSRP or dealer invoice to cover commissions.
The Destination Fee is the delivery price that the manufacturer charges the dealership. It is a fixed price that is the same for all retailers no matter where they are located. They will vary from different models and manufacturers. The dealership passes the fee on to the customer by including it in the final asking price.
True Deal Cost - The actual price Hyundai dealers pay for their new vehicles. Here is how it is calculated:
Formula for Calculating Dealer Cost of a New Hyundai:
- Base Hyundai 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 Hyundai is 3% of the Total MSRP. (See the New Car Dealer Cost Example.)
Total Dealer Cost (calculated above) + Taxes / Licensing Fees - Rebate / Incentive = True Cost (See Hyundai Rebates and Incentives.)