2023 Honda Prices: MSRP, Invoice Price, Actual Dealer Cost, and Holdback
Honda Prices: How to Pay the Best Price on a new Honda.
Understanding the Honda invoice price is an essential aspect of purchasing a new Honda vehicle, as this is the amount paid by the dealership to the manufacturer for the car. It’s important to remember that the invoice price differs from the MSRP (manufacturer’s suggested retail price) listed on the window sticker and the actual new car cost to the dealer.
If you’re considering buying a new Honda and have questions about the factory invoice price or how to save money by purchasing a car below the MSRP, this article is for you. We’ll address your car-buying concerns so you can make an informed decision when purchasing your next vehicle.
Honda Price Tip: Finding a new Honda at a reasonable price can be difficult these days, as many car buyers end up paying more than the suggested retail price. However, by utilizing an online shopping service to get a free dealer price quote, you can still score a great deal by comparing prices on new Honda models.
What are Honda Invoice Prices and MSRP?
Suppose you’re planning to buy a Honda. In that case, it’s essential to understand the MSRP (Manufacturer’s Suggested Retail Price) and the factory invoice price before visiting the dealership, as these figures can help you determine a fair price for a new car.
The MSRP is the price the manufacturer suggests based on various factors such as model, trim package, color, and options. It’s the sticker price on the car when it’s first introduced to the market.
On the other hand, the Honda factory invoice price is the amount the dealer pays the manufacturer for the vehicle before any discounts or incentives are applied. It includes the cost of factory-added options.
It’s important to note that the dealer’s cost for a new car differs from the invoice price, including other expenses such as shipping, storage, and additional fees. Understanding this pricing structure can be critical during negotiations.
While not everyone can buy a new car at or below the invoice price, knowing these numbers can help you make informed decisions and negotiate a reasonable offer with the dealer.
How to Find the Honda Invoice Price
Searching online can give you a valuable advantage in finding a Honda at a reasonable price, as it can help you gain knowledge of the essential elements required for negotiation.
Knowing the Honda invoice price and MSRP allows you to negotiate more effectively with the dealer. However, finding these prices can be tricky as dealers don’t always disclose them.
Thankfully, some helpful online resources are available for free, such as RydeShopper, Edmunds, and MotorTrend.
RydeShopper and Edmunds are the most reliable online car-buying tools to help you locate the invoice price for any specific model. All you need to do is enter some basic information into the tools, and they will provide you with an itemized list of the current MSRP and invoice for the selected make, model, and trim.
The Difference Between Honda Invoice Price and Dealer Cost
The Honda factory invoice prices include hidden benefits, such as dealer holdback and manufacturer-to-dealer discounts.
In reality, the dealer cost, which can often be lower than the invoice price, is the actual amount paid by the dealer to the manufacturer for a new vehicle.
How Much is Honda Dealer Holdback?
The dealer holdback is an additional cost factor in the factory invoice price of a new vehicle, usually equivalent to 2-3% of the MSRP. Although not technically a discount or rebate, the dealer holdback provides dealerships with some extra cash. Some Honda dealerships may be willing to negotiate on the holdback amount.
Honda dealer holdback is 2% of the base MSRP
To determine the dealer holdback percentage, multiply the total MSRP by 2% of the base MSRP to get the full amount available.
The manufacturer typically delivers this proportion to the dealer for each car they sell every three months. It’s important to realize that holdback isn’t always negotiable and that some Honda dealerships won’t even discuss the precise cash amount.
How to Calculate Actual Dealer Cost on a Honda
How to Calculate the Dealer Cost of a New Honda:
Honda Base MSRP (BEFORE manufacturer packages and options)
– Dealer Holdback¹
– Customer Rebate²
– Dealer Incentive²
+ Destination Fee
= Actual Dealer Cost
¹Honda dealer holdback is 2% of base MSRP (before manufacturer options and packages).
²If is applicable.
How to Find the Best Honda Price
When negotiating your best deal, use the Honda invoice price as leverage. The sticker might be discounted for you.
You can save a ton of money on your purchase if you can negotiate a lower price than the Honda invoice price!
Get the ball rolling for your next new Honda by finding the best price in your local area and requesting a free car dealer price quote below.
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