My Notebook Store and retrieve favorite vehicles, articles and more. It is possible to buy a car at or below invoice price, but that doesn't mean the dealer goes without profit. In some instances, a dealer can obtain a vehicle for less than its actual invoice price. This is possible because many manufacturers refund a small percentage of the invoice price, such as two or three percent, to their dealers. These refunds, known as holdbacks, are distributed to dealers as a lump sum several times a year.
Manufacturers also offer dealers various cash incentives to sell specific cars.
With these twin safety nets, dealers can make a profit even if they sell the car below invoice price. Additionally, the invoice that a dealer shows a customer may not be the actual factory document but a padded version compiled on his own computer. A dealer might even attempt to include on his invoice such non factory items as rustproofing or pinstriping. Verizon New Media Services Inc. All rights reserved.