Is invoice price the same as dealer cost?
No, invoice price is different from dealer cost. The latter is comprised of invoice price plus additional expenses associated with selling the vehicle. These added costs include interest (“flooring charges”) the dealer pays to finance the purchase of a vehicle from the manufacturer, vehicle insurance, sales commissions, dealer advertising and other business-related costs. The longer a car remains unsold on a dealer’s lot or in a showroom, the greater the dealer cost for a vehicle becomes. However, a vehicle’s invoice price does not change.
