What is invoice pricing.. does it fluctuate?

[jensjer]

What is invoice pricing.. does it fluctuate is there a standard? % off throws me.. when invoice isn't seemingly clear..

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[Minty JL]

Invoice pricing is never clear.

My JTM I have on order was 59k MSRP, after 6% under invoice it was $52.8k

 

[Hootbro]

There is a Order and Buyers Guide thread that can give you a idea on determining invoice pricing for at least 2022 models. 2023 has not been released as of this writing that I know of.

Attached is my original but not yet submitted price sheet for my 2020 Gladiator Rubicon order.

On the right side, you will see two columns. One is MSRP and the other is FWP (Factory wholesale Pricing, AKA "Invoice"). FWP is in theory what the dealership pays and is usually the "invoice" price in most discussions.

Below attached order sheet is going to be what the FWP pricing is. On this page bottom middle is FFP (Friends and Family Pricing/Affiliate Rewards Pricing) and the EP (Employee Pricing). When dealerships sell at FFP and EP pricing, they are then reimbursed by FCA the difference between those and FWP pricing.

Then there is HB (Hold Back). This is a pot of money FCA gives the dealership for the vehicle and is intended for the dealership to compensate them for things like advertisement expenses and other related expenses to help get the vehicle sold. They are not obligate to spend this whole amount and is what many dealerships use as a buffer and what gives them leverage to sell below invoice when FFP and EP is not used. In my example, if a vehicle sells at MSRP and no HB is used by the dealership, they have the potential to make $4210 profit.

Lastly, what is not well known to most consumers and does not show up in most documentation that may come before a customer is a thing called "SPIFFs" (Sales Performance Incentive Funds). These are immediate bonuses paid by manufacturer (FCA) when a vehicle is sold and/or total sales targets are met and given to the dealership and many times direct to the salesman on the deal. That is why last couple days of the month or a given quarter dealerships will deal even more because they are relying on these SPIFFs.

That is why some people sometimes think when they drive out with a great deal with like up to 8% in some cases below FWP (Invoice) , the dealership lost money but that is never the case.

I left out rebates because that is self explanatory.

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