Please excuse my lack of knowledge, but I have heard many refer to "Net-Net Invoice". What is "Net-Net Invoice" and what is the dollar amount for a 2006 4 option GT as it relates to Net Invoice?
:shrug
:shrug
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What is "Net-Net Invoice"
- Thread starter GTNJ
- Start date
richardhead
GT Owner
- Sep 19, 2006
- 169
"Net-Net Invoice" is the "actual" dealer cost amount from Ford (and also Chrysler and GM). It is equal to "Net Invoice Amount", the actual dollar amount at the bottom of the invoice, less an amount called "Holdback", which is money for floor planning (interest) equal to 3% of the MSRP on the vehicle. Included in the "Net Invoice Amount" (which includes "Holdback") is a dollar amount specific to the marketing costs for the vehicle. The marketing amount must be paid, and is due to Ford from the dealer.
The invoice itself details the "Holdback", the "Marketing Cost", the "Employee Cost" (an amount slightly less than Net-Net Invoice if sold to a company employee...this can be a dealership employee, Ford employee, sometimes employee family members, and occasionally "specially designated individuals") and the "Net Invoice Cost", which is what dealers typically refer to as the cost of a car to someone who is not aware of the "Holdback". So, if you know what all this stuff on the invoice means, you can calculate the "Net-Net Invoice", or true cost of the vehicle to the dealer if sold within 30 days of the receipt of the car at the dealership (interest charges usually hit the dealer at this time...if sold before, there are no charges). To this amount, you add what you feel is a fair profit margin and attempt to negotiate from that amount to a purchase price you and the dealer can agree upon.
The dealers also receive special program allowances, volume bonuses, etc. It is not usually possible to identify where the dealer sits with these, so they do not enter into a price negotiation.
richardhead
GT Owner
- Sep 19, 2006
- 169
When I get back home from my sojourn in the deep north woods in a week or so, I'll post all the numbers as I have a copy of the invoice for my 2006 car.