How to Calculate a Dealer Invoice

A regular car invoice consists of a list detailing the cost for a car and its accessories. However, that does not reflect the true dealer invoice price, which is a more complicated number to arrive at. You must add certain charges and subtract certain credits to accurately calculate a dealer invoice.

Instructions

1

Calculate the basic amount of the dealer invoice. This should include the cost of the new car itself and any individual options or option packages that have been added. You can find this information on car research sites such as Edmunds or Kelley Blue Book.

2

Add the destination charge to the dealer invoice amount. This charge is usually spelled out on the invoice itself. It is a legitimate charge that covers the cost of transporting a new vehicle from the manufacturer's location to the dealership.

3

Recheck the invoice costs and destination charge on another research site. Manufacturers periodically raise dealer invoice costs---and not all car sites update their information immediately. If there is a conflict between two sites, visit a third to see which one it matches.

4

Subtract the hold-back amount from the basic invoice amount. The hold-back, which is given to the dealer by the manufacturer, varies by car brand, but it is usually either a percentage of the invoice total or a set amount. You can find the hold-back on many car research websites.

5

Subtract any factory-to-dealer incentives. Unlike rebates, these incentives are given directly to the dealer by the manufacturer. They lower the dealer invoice cost if the dealership keeps the money rather than choosing to pass it on to car buyers.