The truth is that when the dealers invoice pricing started to increase in availability, and prices on new cars started to drop, the dealers turned to their manufacturers and demanded something be done. The problem was that the “Genie” couldn’t be put back in the bottle, and that the internet wasn’t going anywhere.

What happened wasn’t swift by any means, but it was most certainly brilliant. If you take a look at invoice pricing vs MSRP over the period of time we are discussing, you will notice that the gap between the two figures decreases. Why?

The Solution To Invoice Pricing

If you, as an industry, are going to settle for selling vehicles close to invoice but actually increase profits, the first thing you are going to need to do is to increase the invoice price above what the manufacturer actually needs the dealership to pay. Then, you are going to have to find a way (Legally) to make sure that the dealership can easily pay less than the invoice price for the car, and how do you do that?