How to Sell Below Dealer Invoice Price

Selling below dealer invoice is important to dealerships that want to increase their sales by offering cars to shoppers who have likely done their research on fair market pricing for cars and trucks. When you offer new cars for sale below invoice price, it can attract the attention of price-conscious shoppers who may consider shopping outside of their local market area in the interest of getting the best prices available. However, in order to have success selling cars at or below invoice, dealerships must be prepared to advertise and commit to their pricing strategy.

Instructions

1

Identify the vehicles that you want to sell below invoice. In conjunction with the general sales manager or owner, think about the cars that have been on the lot the longest. If you want to maximize online selling opportunities, consider listing vehicles at a price that allows the dealership to sell below invoice while still leaving a fair margin for the company when monies like holdback are considered. Holdback is an amount paid to the dealership after a particular vehicle is sold. This money is used to pay sales representative salaries and cover the company's overhead.

2

Select a target below invoice price. The amount below invoice can vary between vehicles. Newly-released models or those in high demand may command a price above invoice shortly after their release. Shop other dealerships in your area via the Internet to determine ideal target prices. If you adopt an aggressive strategy, be sure to think about how long it takes for factory orders to be built, as you may greatly increase sales volume and be unable to order new vehicles as quickly as you sell them.

3

Update your pricing. If you want to list your aggressive target pricing online, update your inventory management or pricing tool so that the new prices are reflected on each listing. If you prefer to adjust your pricing regularly or offer the special pricing via email only, do not update the pricing tool.

4

Update your email templates. Make sure that the email quotes you send to prospects reflect the aggressive pricing approach. If you commit to below dealer invoice pricing but never inform your prospects and current customers of the pricing strategy, you could miss out on opportunities to do business.

5

Keep your pricing fluid. Update your pricing relative to invoice based on current market conditions. Remember that the best tool to use when advertising cars for sale online is price. It can be hard to differentiate your dealership from others in the virtual space, so offer all leads a competitive price quote and follow up via phone and email as quickly as possible.