Invoice price vs. negotiated price

[jhopper]

Sorry if this has been answered before, but I searched all through the forums using the 'search' function and didn't find anything.

I'm looking to buy a 2003 Volkswagen Jetta TDI GLS. I've shopped around on the 'Net just to get a feel for prices, and "invoice" is always $21k (leather, cold weather, monsoon, ESP). I have a friend that works at a nearby lot as the Sales Manager, and he was supposed to cut me an at-cost deal. The price he quoted me was about $200 over the online "negotiated" or "target" price (carsdirect.com), and said that the "invoice" price that was all of the salesmen's desk was his price, and he couldn't go under that.

My question: is this "invoice" price really the price that they get cars at? And even so, do they get other kickbacks? If not, then how do they make any profit if they are willing to throw around the actual dealer's cost so openly??

Thanks for any insight anyone can provide.

[56pickup502]

I just bought an 03 jetta tdi gls .. it had a posted invoice of 22,560 but I got them down to 18,930. If that helps

[jhopper]

What options did it have? I ended up getting my '03 Jetta TDI GLS, with leather, ESP, monsoon, for $21k. I'm still trying to determine if this was the best price, just for future reference. This was *supposedly* the dealer price on the car.

[56pickup502]

well to tell you the truth.. i had all that.. but i think it depends on what area of the country you get it in.. i got mine in north carolina.. but i had everything you've mentioned

[aznjs12]

I am also in the market for an '03 GLS w/monsoon. I have to offers on the table for $18,000 and $18,500. invoice is like $17,000 to $17,500. Right now VW is giving the dealer $1500 (thru 9/30) if they sell the car. This is unadvertised but can be found online (edmunds.com). That means if you are paying invoice, the dealer is still making $1500, which is more than what the dealer desires. Usually the dealer is happy to make as low as $300 in some cases. For me, i believe that i can get this car under invoice. The dealer also has a holdback on the MSRP price which is 2% in VW's case. Hope this all helps. I'd just suggest that do as much research as possible, the more you do the more you save. Go onto google and do a search for "new car buying tips" or something and read the articles, they are very useful.