Factory Invoice

Factory invoice is the amount the dealer pays to put the car on the lot. The factory invoice cost minus a holdback fee for advertising and other expenses, such as gasoline, is what the dealer pays for the car. This amount usually runs a few hundred dollars.

If you want to know the factory invoice for your car, ask. You can find out the information from your dealer, or from many Internet sites and guide books for consumers. Knowing the factory invoice can help you to figure how much you should pay for the car. Because of the factory invoice being so much lower than the selling price of the car, many dealerships are able to offer huge customer rebates when they purchase a car within a certain time frame.

It is because of the factory invoice of a car that you can often talk a dealer down in their price. They will still make a profit, because the actual cost of the car is considerably lower than what they put as a selling price.

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