Scion 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 Scion 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 Scion 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.
Scion Price Terms & Definitions
Are you ready to purchase a new car? Informed consumers get better deals from auto lots. Take a moment to understand some common new car pricing terms so won’t get confused when you start to negotiate with your salesperson.
The Manufacturer Suggested Retail Price (MSRP) is often referred to as the list price. This is simply the auto maker’s suggested retail price.
Dealer Invoice Price
This is supposed to be the cost that a dealer pays the manufacturer for a car. In other words, it reflects the wholesale price of a vehicle.
Dealer holdback is money that auto manufacturers pay dealers to cover costs of holding inventory. It might, for example, cover the cost of interests that dealers pay for loans they take out to purchase inventory.
Manufacturer Incentives and Rebates
If you see advertisements for new cars, you might see customer incentives and rebates like cash back offers or free upgrades. These are customer incentives, and they are pretty easy to understand.
Manufacturers do not ship new cars from the factory to the auto lot for free. The destination fee is the amount that the manufacturer charges to ship a vehicle to an auto lot.
Dealer incentives are a type of manufacturer incentive that reduces the true cost of purchasing inventory for dealerships. While dealerships are not required to pass their savings on to consumers, they certainly might help the negotiation process because they provide auto dealers with an incentive to move for of a specific type of car.
Regional Ad Fees
These are feeds that individual dealers pay to manufacturers in order to participate in local advertising campaigns. They are divided out and passed onto the consumer for each new car sold.
True Deal Cost - The actual price Scion dealers pay for their new vehicles. Here is how it is calculated:
Formula for Calculating Dealer Cost of a New Scion:
- Base Scion 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 Scion is - 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.)