True Market Value Lower Than Invoice

mrmafillicuttimrmafillicutti SeattleMember Posts: 4
edited April 2015 in Dodge
Hey guys

I checked on the True Market Value on a 2015 R/T AWD w/ Technology group here @ Edmunds.

It told me;

Invoice $44,133
MSRP $46,480
True Market Value $43,357

No matter what options I throw at it in the builder - it's always lower than invoice. I even checked out a competing "you should pay this" website. slightly different figures - but same over all deal with price I should be paying is under invoice.

Is there potentially a data issue or is it safe to assume to start around these figures or below with the dealer?
Tagged:

Comments

  • steverstever Guest Posts: 52,454
    edited April 2015
    Invoice is a good target for buying most vehicles, but it's not really a good reflection any longer of what a dealer paid for a car. There's holdback for one thing, but in recent years, the numbers have been "fudged" I think, so that the gap between invoice and MSRP has narrowed for most cars.

    The manufacturers make it up to the dealers with bonuses and spiffs, stuff that's hard to learn about. Channel stuffing happens in the car biz too. (ibtimes.com) Often the sales people on the floor won't have a good handle on the "real" price that a dealer is paying for a car. Rest assured that the dealer will do fine selling under invoice (otherwise they won't do a deal).

    Dealers have also expanded their add-ons, like throwing lots of dubious accessories onto a new car and doing the hard sale on extended warranties. And dealerships tend to make more money on service and used car sales.

    So, no, it's not a data issue exactly, more like missing data. Since TMV is an average, your target, at least initially, should be below TMV.

    Surprising tips for car shopping in Internet age
    (USA Today)
Sign In or Register to comment.