WASHINGTON - Most car shoppers think the dealer's invoice tells how much the dealer paid for a new vehicle. In truth it's an inflated figure and Consumer Reports plans to disclose better wholesale information about dealers' costs to car and truck buyers. The magazine says it intends to disclose true wholesale prices of specific models after subtracting a secret dealer profit called `holdback' and other allowances typically buried in invoice prices. The invoice price typically includes the holdback-an amount that varies from brand to brand and can be as much as 3% of the full sticker price. The dealer pays the manufacturer the holdback, but the manufacturer reimburses the dealer. According to Consumer Reports, some dealer invoices also include allowances for dealer advertising and other costs. Subtracting out the holdback and other hidden items from the invoice price should give buyers a better chance at negotiating a good price, magazine sources say.
Consumer Reports to `tell all' vehicle price info to consumers
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