Dealer charges Amounts charged for features sold separately by auto dealers, such as rust-proofing, undercoating or services offered in extended warranties. An allowance auto makers give dealers that is worth about two to three percent of an auto's MSRP . A holdback allowance allows a dealer to pay the maker an amount less than the invoice. This allows the dealer to record a profit by suggesting he paid invoice price for the auto when, in fact, he has paid less. Programs offered by auto makers to boost sales of less popular models and reduce inventories.
Dealers decide whether to pass the savings to customers.
Dealer invoice Amount that auto makers charge dealers for vehicles, including options. The Monroney sticker price plus a suggested markup for dealer-installed options. The annual reduction in the value of an asset attributed to normal wear and tear. Depreciation is based primarily on miles driven. The greater the miles, the greater the depreciation.