Mazda 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 Mazda 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 Mazda 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.
Mazda Price Terms & Definitions
Do not walk into a new car showroom until you understand the basic terms and definitions you might find on an automobile invoice. This knowledge will help you feel more confident as you negotiate for your next new car like a pro.
The MSRP (Manufacturer’s Suggested Retail Price) is simply the list or retail price that auto companies advertise. Savvy car shoppers expect to negotiate so they can pay less than the retail price.
Dealer Invoice Price
This is simply the standard wholesale price for the dealer when they purchase inventory. It might not reflect the actual cost to the dealer. Actual costs might be reduced by holdbacks and dealer incentives.
This is an allowance that auto manufacturers give to dealers to cover costs of keeping inventory stocked. It might reduce the actual wholesale price for certain cars.
Manufacturer to Customer Incentives and Rebates
Special consumer incentives, like rebates and upgrades, are offered to help sell cars. These are usually promoted heavily and are fairly easy to find and understand. They may help you save money or get a better car.
Destination or Shipping Fees
This is the price that dealers pay to have manufactures ship cars to their lots. This cost is passed on to consumers on the invoice.
Dealer Sales Incentives
These are incentives that auto makers pass on their dealers. They may include cash rebates for meeting certain sales goals or promoting stock that has not moved quickly.
Regional Advertising Fees
Auto makers run advertising campaigns to help support their dealers. Each dealer pays to be included, and this cost is passed on to the consumer.
True Deal Cost - The actual price Mazda dealers pay for their new vehicles. Here is how it is calculated:
Formula for Calculating Dealer Cost of a New Mazda:
- Base Mazda 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 Mazda is 1% of the Base MSRP. (See the New Car Dealer Cost Example.)
Total Dealer Cost (calculated above) + Taxes / Licensing Fees - Rebate / Incentive = True Cost (See Mazda Rebates and Incentives.)