New Fiat Prices: MSRP, Factory Invoice vs True Dealer Cost
Most people mistakenly believe that the Fiat Invoice Price reflects what the dealer paid for a new vehicle - The true Dealer Cost. It is not!
The Dealer Invoice Price has hidden mark up such as holdback and other fees built into the price.
The following Fiat 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.)
Knowing the dealer cost of a new Fiat 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.
Fiat Price Terms & Definitions
Getting a good deal on a new car that meets one's needs can be a challenge by itself. Defining what is a good deal requires knowledge of pricing terms.
MSRP
MSRP stands for Manufacturer's Suggested Retail Price. This price is the so-called sticker price. This price is negotiable. The car can be sold for a lot less than that price.
Dealer Invoice
Dealer Invoice is the amount the dealership pays to get the car. There are some contractual details that can affect the dealer's invoice. Usually this is the bottom end of the pricing scale for cars.
Dealer Holdback
Dealer Holdback is a contractual detail affecting a dealer's invoice. A dealership can have only so many cars on the lot at time. A dealer might order a car but not have the room on the lot for it. The factory agrees to hold on to the car, refunding a bit of the normal invoice price to keep car until there is room on the lot for it. This amount the factory refunds is the holdback.
Manufacturer Rebates and Incentives
Car manufacturers want their cars to sell. As a result, they are willing to offer rebates and incentives to consumers to purchase their cars off the lot.
Destination Fee
Destination fees are essentially the flat rate shipping fees for cars. Expect them to factor into the price.
Dealer Incentives
In addition to incentives directly to consumers, car manufacturers give incentives to dealers to sell certain cars. These incentives can drop the dealer invoice price.
Regional Ad Fees
To get people on the lot, the dealership must advertise. The cost of this advertising will be factored into the pricing of the cars.
True Deal Cost - The actual price FIAT dealers pay for their new vehicles. Here is how it is calculated:
Formula for Calculating Dealer Cost of a New FIAT:
- Base FIAT 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 FIAT is 3% of the Total MSRP. (See the New Car Dealer Cost Example.)
Total Dealer Cost - Rebate and Incentive + Taxes / Licensing Fees = True Dealer Cost.
