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Honda Invoice Price

Learn about the Honda Invoice price, MSRP, dealer cost, holdback and rebatesSee Honda vehicle invoice pricing tables including MSRP, Dealer Invoice, Holdback, Freight, and Dealer Cost:

When shopping for a new car it is important to understand all the components of the deal. What is the Invoice Price? What is Dealer Invoice? What are rebates? Car Dealers and advertisements have their own language to represent the various pieces that make up a car “deal”. Listed below are the most common terms and their definitions.

MSRP: The MSRP represents the “Manufacturer’s Suggested Retail Price”. It is a “suggested” price and dealers normally sell for considerably less than the “suggested” price depending on a number of conditions such as the car’s popularity and/or limited availability. A Honda Civic or Accord would rarely be sold at MSRP (although the dealer would gladly do it). A more rare and exotic car like a Rolls Royce might not be discounted at all.

HoldBack: Manufacturers reimburse dealers a certain percentage of the vehicle MRSP. This money is ‘heldback’ and given to the dealer after the car is sold and delivered. For Honda, the holdback is 2% of the base MSRP of the car.

Destination/Freight: This represents the cost of transportation cost from the factory to the dealership. Obviously dealers closer to a factory would have less transportation costs than the dealer further away giving them an unfair advantage. For this reason the transportation costs are averaged out nationwide and all dealers pay the same amount. It is listed separate from the vehicle price for advertising power.

Dealer Invoice: represents the amount of money that the dealer will pay the manufacturer for the vehicle. It does NOT include destination or holdback.

Actual Dealer Cost: is a simple math formula. To calculate dealer cost one would take the Dealer Invoice Price and subtract the Holdback (2% of Base Model MSRP) and then add the cost of Destination/Freight.

Manufacturer Rebate: a manufacturer rebate is often a cash rebate which is paid back to the customer after sales tax and licensing fees have been paid. Often the customer will apply the rebate to the deal but the option to receive the cash exists. A customer may trade in a vehicle of the same value as the new vehicle being purchased and therefore would take the cash. Sometimes the incentive is “Rebate to dealer” or “dealer cash” which must be paid to the dealer upon the sale. Car dealers will often not mention this rebate if it exists and keep it as extra profit.

Financing Rebate: a financial institution will often offer a interest rate option in lieu of a rebate. Instead of providing the cash back, the manufacturer/financing company will discount the interest applied to the loan on the car.

Licensing and Tags: very simply are fees charged by the state government for license plates and ownership. These fees are on top of the vehicle purchase and the buyer is expected to pay them.

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