Jaguar 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 Jaguar 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 Jaguar 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.
Jaguar Price Terms & Definitions
MSRP stands for Manufacturers Suggested Retail Price, and is a phrase used to describe the selling price a car manufacturer recommends for its vehicles. MSRP is also commonly referred to as the list price, and is a way for people who are shopping for a new car to compare prices. Although car dealerships set their own prices, knowing a car's MSRP is an excellent way to know much a person may have to bargain and how much they may end up paying.
Dealer Invoice Price
The dealer invoice price is the amount a car dealership pays the manufacturer for a car. This is the amount the factory will charge for the car plus any additional accessories. Usually, a car dealership will end up paying less than the actual dealer invoice price due to rebates and holdback.
Dealer holdback is technically the amount of money the car manufacturer pays the dealership. This occurs because dealerships are forced to take out loans to buy the cars they put out on display to sell, so in order to make this deal cost effective for both sides, manufacturers pay dealerships the interest for the loans they were forced to take out.
Manufacturers Incentives and Rebates
A manufacturers offers incentives and rebates to car dealerships to promote the sell of slow-selling cars or to make more room in inventory. Incentives and rebates save the consumer money by giving them one of the best possible deals.
A destination fee is a non-negotiable fee that is the cost of transporting a vehicle from the manufacturers factory to the dealerships lot. The cost of a destination fee varies with each model, but not on location, and so it is unavoidable. Instead of the dealership taking care of this charge, it is usually passed over to the car-buyer.
Dealer incentives are incentives given by the manufacturer to the dealership. A dealer incentive lowers the amount a dealership has to pay for a particular car to encourage the overall sale of a particular model within a specific region. Dealer incentives may or may not be passed on to the consumer.
Regional Ad Fees
Regional advertising fees are usually non-negotiable fees that cover the amount the dealer must pay in advertising and promotions run by the manufacturer. Regional advertising fees are considered part of the dealerships cost for the car.
True Deal Cost - The actual price Jaguar dealers pay for their new vehicles. Here is how it is calculated:
Formula for Calculating Dealer Cost of a New Jaguar:
- Base Jaguar 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. Jaguar has No Holdback. (See the New Car Dealer Cost Example.)
Total Dealer Cost - Rebate and Incentive + Taxes / Licensing Fees = True Dealer Cost.(See New Car Rebates and Incentives.)