INVOICE VS. WHOLESALE PRICING

[ajboston]

Invoice pricing is supposed to the price from the manufacturer to the dealer on a new vehicle. However, many factory to dealer incentives are not reflected on invoice price so it is not a 100% accurate representation of what the dealer "owns" the car for.

Wholesale pricing is more often referred to in the context of pre-owned cars and is an indication of what the car would be valued at in a wholesale transaction (i.e.between dealers or at a dealer only auction). It represents the amount a dealer is usually willing to pay for a car so that they can mark it up and sell at a pre-owned retail price. I haven't heard the term wholesale price used at all when referring to the purchase of a new car.

[jeep]

Originally Posted by dms

Well, it also depends on the number that BMW decides to build. I think that they were caught a little flatfooted and built way too many 08s, resulting in the oversupply and therefore soft prices. I'm pretty sure that production rate is set far in advance with supplier contracts, and and BMW didn't have the option to really slow down.

If I were the product planner at BMW, I would revise my 09 supplier contracts to make it less likely I'd build too many. Prices for 09s next summer might be less soft.

I went to the BMW Munich factory where I saw production of the 3 series and the 3tis on the same production line, they also informed us that all their production lines are capable of producing any model and multiple different models could be produced simultaneously on the same production line, which gives BMW the unique capability to increase or reduce production of a specific model without having to shut down entire production lines. I therefore agree that the production of 09s destined for specially the US market will be low, they might still produce other variants of the X5 where the demand is still high.

On my end I got a great dealof 8k below MSRP and 3k below wholesale/invoice, if you include the premium pkg discount, I got it for 1k below invoice. The dealer said they were selling it for a loss, possibly to move inventory and if someone else's statement is correct, to get the 3% manufacturer holdback. I also got the .9% financing with 0 down, which made the deal a no brainer

Good Luck