Chicago Car Deals and How to Save a Buck (or Thousands)
As Chicagoans, we learn our way around by learning where things are in relation to Lake Michigan, we wait for the train to pass before we continue our conversations and we never let anyone take advantage of us. That's probably why you're here. You want to figure out how to get a respectable deal on your next (or first vehicle), right?
Good call. There is a way to prepare yourself and negotiate better. Most drivers aren't aware of this clever trick.
The Dealer Invoice Price
A dealer's strategy centers on the invoice price. It's the price the dealership paid the manufacturer for the vehicle itself. Your local dealer in West Englewood or West Town or wherever it is, paid Chevrolet or BMW or the manufacturer they represent, for the vehicle you want to buy.
Usually, you can't see the invoice of your future vehicle. Even if the dealer does let you see it, it'll be so convoluted you won't feel like studying it to calculate a useable number. You can find the invoice price, for any vehicle, online. That's the good news. All you have to do is request a quote here at ChicagoCarDealerCost.com. Once you select the dealers and vehicle you're interested in, click the button and you'll see the invoice price right on the next page.
But How Do I Use the Invoice Price to My Advantage?
Easy. You can use it to figure out how to calculate how much your Chicago dealer had to spend to acquire the vehicle. The formula looks like this:
dealer cost = invoice price + destination charges - holdback
You learned how to find the invoice price in the previous section (get it when you request quotes here). Now you're left with the destination charges and the holdback. You can get those below.
Holdbacks
| Make | Holdback |
| Acura | 2% of the Base MSRP |
| Audi | No holdback |
| BMW | No holdback |
| Buick | 3% of the Total MSRP |
| Cadillac | 3% of the Total MSRP |
| Chevrolet | 3% of the Total MSRP |
| Chrysler | 3% of the Total MSRP |
| Dodge | 3% of the Total MSRP |
| FIAT | 3% of the Total MSRP |
| Ford | 3% of the Total MSRP |
| GMC | 3% of the Total MSRP |
| Honda | 2% of the Base MSRP |
| Hyundai | 3% of the Total MSRP |
| Infiniti | 1.5% of the Base MSRP |
| Jaguar | No Holdback |
| Jeep | 3% of the Total MSRP |
| Kia | 3% of the Base Invoice |
| Land Rover | No Holdback |
| Lexus | 2% of the Base MSRP |
| Lincoln | No Holdback |
| Mazda | 1% of the Base MSRP |
| Mercedes-Benz | 1% of the Total MSRP |
| Mercury | 3% of the Total MSRP |
| MINI | No Holdback |
| Mitsubishi | 2% of the Base MSRP |
| Nissan | 2% of the Total Invoice |
| Porsche | No Holdback |
| Ram | 3% of the Total MSRP |
| Scion | No Holdback |
| smart | 3% of the Total MSRP |
| Subaru | approx. 2% of the Total MSRP |
| Toyota | 2% of the Base MSRP |
| Volkswagen | 2% of the Base MSRP |
| Volvo | 1% of the Base MSRP |
"Base MSRP" refers to the manufacturer's suggested retail price without any options added.
"Total MSRP" refers to the manufacturer's suggested retail price with options such as tech packages or towing hitches included.
Follow the same logic for "total invoice" and "base invoice." So, base invoice would be the invoice price without any options or packages added.
How Much Are The Destination Charges / Destination Fees?
Destination charges usually range from $700 to $900. Therefore, if you use $800 for the formula, you'll be within about $100 of the actual dealer cost. That's close enough to use for your negotiations.
Next Steps
Enter your numbers into the formula dealer cost = invoice price + destination charges - holdback, find your answer and then decide what to offer. If there's a lot of demand for the vehicle you want or if it just arrived on the lot for the first time, the dealer will want to turn a bigger profit. If the car hasn't sold for 8 months because nobody wants it, you might get away with an offer that is below the dealer cost. It's up to you but remember that you're subject to the market and to the dealership manager's constraints.
Get your invoice information and compare local Chicago car quotes here.