
Yes, you can get a new car for below the dealer's invoice price, but it requires strategy, timing, and negotiation. The key is understanding that the invoice price is not the dealer's final cost. Dealers receive financial incentives from manufacturers, known as dealer holdbacks and factory-to-dealer incentives, which effectively lower their true cost. This creates room for negotiation below the stated invoice figure. Your success depends heavily on the vehicle's demand and market conditions. High-demand, low-supply models rarely sell below invoice. However, for models with ample inventory, especially at the end of a model year or quarter, dealers are more motivated to make a sale to hit volume-based bonus targets. Here is a comparison of key pricing terms and strategies: | Pricing Term / Factor | Definition & Impact on Final Price | | :--- | :--- | | MSRP (Sticker Price) | The manufacturer's suggested retail price; the starting point for negotiations. | | Dealer Invoice Price | The price the dealer pays the manufacturer; often higher than the true cost. | | Dealer Holdback | A rebate (typically 2-3% of MSRP) the manufacturer pays the dealer after a sale. This lowers the dealer's effective cost. | | Factory-to-Dealer Incentives | Secret cash bonuses from the manufacturer to the dealer for selling specific models. | | High Inventory / End of Month | Dealers are most motivated to deal when they need to clear lot space or meet sales goals. | | Undesirable Configurations | Cars with unusual colors or option packages are prime targets for below-invoice deals. | To execute this strategy, secure financing pre-approval from your bank or credit union beforehand. This gives you a strong bargaining position. Use online car-buying services like Costco Auto or Sam's Club Auto, which often have pre-negotiated below-invoice pricing. Finally, be prepared to negotiate the out-the-door price based on your research, and be willing to walk away if the dealer won't meet your target.

Sure, it's possible. Forget the sticker price. Focus on the car's actual market value using sites like Edmunds or Kelley Blue Book. The best chance is with a car that's been sitting on the lot for a while, like a last year's model or one with a weird color combo. Email several dealers with the exact model you want and ask for their best out-the-door price. Let them compete against each other. It’s a numbers game.

It's all about timing and leverage. The invoice price isn't the magic number people think it is. Dealers have hidden rebates. Your leverage comes when they need a sale to hit a monthly quota. Go in at the end of the month, preferably on a rainy Tuesday evening when the lot is empty. Be polite, know the true market value from your research, and make a firm, reasonable offer. Your power is in your willingness to leave.

Absolutely, but you need a game plan. I never talk about monthly payments; I only negotiate the final "out-the-door" price. I research the dealer's true cost using online tools that account for holdback. Then, I contact the internet sales manager at a few dealerships. They're usually authorized to give the sharpest prices. I present my research and make a fair, below-invoice offer via email. This avoids the high-pressure showroom and gets me the real bottom line.

You can, but it's not about haggling. It's about being an informed buyer. I look for cars that have high manufacturer incentives advertised directly to consumers. Sometimes, those rebates are so large that when applied, the selling price drops below what the dealer paid. I also focus on less popular models or trims. I use the dealer's own online price, which often includes all discounts, as my starting point for negotiation, not the invoice.


