Porsche 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 Porsche 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 Porsche 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.
Porsche Price Terms & Definitions
If it is the first time you have been in the market for a new car, you may feel like the dealer is speaking a foreign language. There are so many different terms that you may not be familiar with. There are 7 different terms that are used in all transactions when talking about a new car deal.
They are: MSRP, dealer invoice price, dealer holdback, manufacturers incentives and rebates, destination fee, dealer incentives, and regional ad fees.
Let’s start with MSRP. This is an acronym for Manufacturers Suggested Retail Price. This is the price that the manufacturer feels is a good place to start the pricing. It leaves some negotiation room for both the buyer and the seller.
The dealer invoice price is the actual amount that a dealer must pay to the maker of the car. This price will include any extra things, like window tinting, and the cost of making the vehicle.
A dealer holdback is a percentage of the manufacturers price that is paid back to the dealer. This pay back is an incentive and usually ranges anywhere from 2-3 % of the price.
Manufacturer incentives and rebates are Offered to the buyer. They usually are based on cars for which they have a high inventory.
The destination fee is a non-negotiable amount that is charged by the manufacturer to get the car delivered from the manufacturer to the dealership.
When a dealer reaches certain sales goals then the factory will offer a dealer incentive.
Lastly, regional ad fees are the amount that the dealer must pay to the manufacturer to help defray the advertising cost for the car.
Now, armed with all of this new information hit the road and see if you can make yourself a great deal on a new car.
True Deal Cost - The actual price Porsche dealers pay for their new vehicles. Here is how it is calculated:
Formula for Calculating Dealer Cost of a New Porsche:
- Base Porsche 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. Porsche 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.)