MSRP and Invoice

[BennytheJet]

According to site such as yahoo and edmunds.com, the invoice price of the 05' GT Deluxe is about $22,288 and MSRP is $24,370. My questions is, what accounts for the $2000 price difference? What factors are included? Thanks

 

[426H]

Dealers's bread and butter?

 

[ShelbyMan]

actually, edmunds.com has the old price sheet(515). The Prices (540) have gone up on the '05 Stangs.

For the GT Deluxe it is:

Invoice w/Holdback=22,515
MSRP= 24,600

+Delivery & Destination of 625

 

[Mr_dcj2001]

Leather, better stereo system, and a few other goodies I hear.

Edit: Oops, didn't read the question fully. Thought you were asking about the difference between the deluxe version and the premium version. There is a wholesale price on every item for purchase in this world I believe. Its how they make a profit.

 

[mustangking]

The dealer needs to make money to operate, so they can pay taxes, wages for employees, etc.

 

[drmustang]

msrp

There are virtually no dealers that remain in business by margin on new car sales. The availability of invoice/retail info on any make or model has forced sales of the overwhelming majority of new units at or slightly above invoice. This is simply the reality of new car sales. Dealers remain profitable by revenue generation from a multitude of sources, service, part sales, etc. The profitability of car sales is on used units not new. The net on new sales (excluding holdback or factory to dealer incentive) falls in the 100-400 dollar range. Sales of used vehicles taken on trade or aquired at auction provide the dealer with margins that are wildly greater than what can be expected from new sales. Any sincere person experienced in overall dealer operations will verify this.