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Why Is Everyone Talking About Consumer Reports Dealer Invoice Cars? | Consumer Reports Dealer Invoice Cars

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July 13, 2000|By Tom and Ray Magliozzi

QUESTION: I accept that car dealers pay hire or mortgages, sales commissions, interest, taxes, utilities, etc. Because best dealers frequently action sales promotions at or beneath “dealer invoice,” why haven’t they all continued aback gone out of business? Two percent or 3 percent holdbacks won’t pay for all that stuff. So what gives? Is “dealer invoice” complete , or does it buck some aerial affiliation to the absolute amount the banker pays for the car?

George

Tom: Good question, George. Unfortunately, it’s like allurement the CIA how it absolutely does that spying stuff. Alike if they told you, would you accept them?

Ray: The aftermost time we addressed this question, we asked above car dealers — who are now in the witness-protection affairs — to address to us and let us in on how the business absolutely works. We abstruse some absorbing stuff. But best of those guys were never heard from again.

Tom: Here’s what we do know: There is a affair alleged “dealer invoice.” Aback it was aboriginal fabricated accessible aback in the aboriginal ’80s, it was a admired allotment of advice for car buyers. At the time, it was anticipation to be a appealing appropriate approximation of what a banker paid the architect for a car. And best car dealers were absolutely affronted

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