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"Dealer invoice" is just what it says - an invoice that the manufacturer sends to the dealer to confirm the VIN, make, model, build date, equipment and options. It also includes other items the manufacturer charges a dealer - like advertising, shipping, gasoline, along with warranty and after sale follow up programs. It represents the actual cash outlay the dealer (actually their bank) sends to a manufacturer to obtain title and the right to sell the vehicle.
Gross profit varies between makes, models, country of origin, and demand - it's usually 2% (econobox) to 20% (import sport sedan). I've never seen a "fake" manufacturer invoice.
The reason dealer's can sell cars "below invoice" is because of manufacturer incentive or compensation programs for specific vehicles or markets where sales are slow. That's why the pricing varies so much - not because of duplicity (altho clearly that exists as it does in every marketplace) but because it is an extremely volatile commodity market. It's really like the Chicago commodity exchange - with prices changing from day to day.
On Monday - you might buy an econobox at MSRP and the dealer might gross $400. On Friday - the manufacturer might decide that they really need to move the econoboxes and offer the dealers $500 rebate for every econobox sold until the end of the month - as long as they sell 50 econoboxes.
Now, different dealers will handle that $500 differently. Some will try to keep it on each car - some will sell 30 cars ASAP at $850 under invoice (400 gp + 500 rebate - less $50 gross profit for sales person flat commission = $850) and then sell the next 20 at whatever they can. Just to get the whole $25,000 at the end of the month. So, sometimes a dealer is just making $400 (monday's sale) - sometimes he's making $50 (weekend sale) and sometimes he's losing money (the last twenty units to make the $25K).
You tell me when they're lying.
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Scott
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