Land Rover 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 Land Rover 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 Land Rover 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.
Land Rover Price Terms & Definitions
MSRP - Manufacturer's Suggested Retail Price. The amount of money the original manufacturer believes is a reasonable base price for a product. The dealer may then add various local fees, taxes, and incentives to offset the cost of transporting and advertising the vehicle.
Dealer Invoice Price - The price a dealer originally pays for a car in order to purchase it from the manufacturer.
Dealer Holdback - The amount of money a manufacturer gives to a dealer in order to offset the interest of a loan used to purchase directly from a manufacturer. A dealer may take out a loan in order to purchase a car from a manufacturer, and the dealer holdback defers the interest the car may accrue while it is waiting to be sold.
Manufacturer Incentives and Rebates - A rebate created by manufacturers that influence buyers into purchasing low-selling cars. A manufacturer incentive or rebate may or may not be passed on to the buyer in terms of savings but may increase the profit the dealer receives once the car is sold.
Destination Fee - A fee tacked onto the final price of a car that pays for the shipping of the car from the factory to the location of the dealer. This price pats for the transportation and protection of the vehicle from the factory to the dealer lot. Typically thenorencars that can be shipped to the same lot at the same time incur a lower destination fee than single cars shipped to individual lots.
Dealer Incentives - In which the incentives created by a manufacturer can be passed on to the buyer through the dealer. These may include rebates or percentages off the original price of the vehicle.
Regional Ad Fees - The cost of advertising the vehicle in a specific geographic location.
True Deal Cost - The actual price Land Rover dealers pay for their new vehicles. Here is how it is calculated:
Formula for Calculating Dealer Cost of a New Land Rover:
- Base Land Rover 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 Land Rover has No Holdback. (See the New Car Dealer Cost Example.)
Total Dealer Cost (calculated above) + Taxes / Licensing Fees - Rebate / Incentive = True Cost (See New Car Rebates and Incentives.)