Originally Posted by cbass
That I understand. It's just that Invoice is actually confusing. Invoice is the goal, but there is Invoice that doesn't include freight and advertising and Invoice that does and the difference between those two numbers is significant. I am just trying to figure out the real invoice.
As for as not making a lot of money that is true of GM dealers. The difference between MSRP and Invoice is a very narrow margin. Ford allows its dealers to make more money.
It's kind of surprising how much more expensive a camaro is compared to a mustang considering the small margin the dealership gets.
I think there is a profit margin that no one sees but GM and the owner of the GM garage. Another big factor is volume sales discount for the dealer. A dealer will sell below invoice to meet the quota for volume sales. Once quota is met GM gives the dealer incentives be it cash or lower buying price on new stock