Invoice Price is not the actual Dealer Cost! When making an offer on a vehicle, you should do your research and calculate the actual Dealer Cost and formulate a fair offer of 3% - 5% above it.⁠ Dealer Cost is made up of 3 parts, Invoice Price - Factory Holdbacks - Dealer Incentives = Actual Dealer Cost.⁠ ⠀⁠⠀⁠ Invoice Price - ⁠First off, the Invoice Price is the Amount the Dealer Paid not the actual cost, so be sure not to confuse the MSRP on the window sticker with the "Invoice" price!⁠ ⠀⁠⠀⁠ Factory Holdback - The manufacturer charges dealers a "holdback." If they don't want to show you how much that amount is, you can estimate it as 3% domestic and 2% import of the invoice price. The manufacturer gives this "holdback" to the dealership after they sell the vehicle. "Factory Holdbacks amount should be subtracted when calculating Dealer Cost."⁠ ⠀⁠⠀⁠ Dealer Incentives - With most vehicles, there is a factory to dealer incentive built into the "invoice price." At times, these incentives ca...