Nissan 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 Nissan 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 Nissan 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.
Nissan Price Terms & Definitions
If you are contemplating purchasing a new car you may encounter some of the following terms.
MSRP. This stands for Manufacturer Suggested Retail Price, and as the name implies it is the manufacturer's recommended sale price for a vehicle. Each dealership can name their own price, but with theMSRP figure as a tool you can determine how fair a price quote may or may not be.
Dealer Invoice Price- This is the price the dealership paid the manufacturer for a specific car. This is a great figure to have because you know exactly how far down a salesman can go before they get below cost.
Dealer Holdback. This refers to money the manufacturers pay the dealers, which usually gets passed down the chain to the consumer. When a dealer buys inventory from a manufacturer they keep so many cars on the lot they have to take out loans to cover the expense of the large inventory. The Dealer Holdback is what the manufacturer pays the dealership to cover interest on their loans.
Dealer Incentives. These are incentives offered by the dealer that encourage the sale of certain vehicls. These incentives can include cash Rebates or low financing rates.
Regional Ad Fees. These are fees passed to the customer from the dealer to cover costs from advertising. They are itemized on your bill of sale, and because the dealer considers this as part of the vehicle's cost it is difficult to negotiate these fees down.
Destination Fees. These are the charges the dealer passes on to the customer for transporting a vehicle from the factory to the dealership.
Manufacturer Incentives and Rebates. Similar to Dealer Incentives, these are incentives or Rebates passed on by the manufacturer to the dealer designed to move certain models that may not be selling particularly well.
True Deal Cost - The actual price Nissan dealers pay for their new vehicles. Here is how it is calculated:
Formula for Calculating Dealer Cost of a New Nissan:
- Base Nissan 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 Nissan is 2.8% of the Total Invoice. (See the New Car Dealer Cost Example.)
Total Dealer Cost (calculated above) + Taxes / Licensing Fees - Rebate / Incentive = True Cost (See Nissan Rebates and Incentives.)