2024 Volkswagen Prices: MSRP, Invoice Price, Actual Dealer Cost, and Holdback

Volkswagen Prices: How to Pay the Best Price on a New Volkswagen.

Volkswagen Prices - MSRP, Factory Invoice Price, and Dealer Holdback.

Understanding the Volkswagen invoice price is crucial when considering the purchase of a new VW. This price reflects the amount paid by the dealer to the manufacturer, which may not necessarily align with the manufacturer’s suggested retail price (MSRP) displayed on the window sticker or the actual cost incurred by the dealer for the vehicle.

Suppose you’re considering buying a new Volkswagen and want to learn about factory invoice pricing or the possible savings of buying below the MSRP. In that case, this article will provide you with all the essential information you need to make an informed purchase decision.

Volkswagen Price Tip:  In today’s market, it can be difficult to find a new VW at a reasonable price, and many car buyers end up paying more than the suggested retail price. Nonetheless, utilizing an online shopping service to compare free car price quotes can still assist you in securing a fantastic deal on a new Volkswagen.

What are Volkswagen Invoice Prices and MSRP?

Knowing the VolkswagenMSRP and factory invoice price is crucial before heading to the dealership to make a fair profit new car offer. The Manufacturer’s Suggested Retail Price (MSRP) indicates the recommended amount the dealer should charge for a vehicle, including its model, trim package, color, and options. It is the sticker price displayed on the car at launch.

In contrast, the Volkswagen factory invoice price represents the amount the dealer pays the manufacturer for the car, including the cost of any factory-added options, before any discounts or incentives are applied. The dealer’s new car cost encompasses the total amount incurred, such as the invoice price, shipping costs, storage costs, and other fees.

It’s essential to remember that not everyone can purchase a new car at or below the invoice price. However, having a grasp of these figures can assist in making a reasonable negotiation offer. With this knowledge, you can determine a fair profit new car offer and be better equipped to purchase your Volkswagen when the time comes.

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How to Find the Volkswagen Invoice Price

By starting your Volkswagen search online, you can gain an advantage in finding a reasonable price, and understanding essential factors can be beneficial. Although dealers may not always disclose the prices they pay for cars, knowing the Volkswagen invoice price and MSRP can give you more negotiation power.

Fortunately, several free resources are available, including RydeShopper, Edmunds, and MotorTrend, that can assist you in finding the invoice price of a specific model and trim level.

Edmunds and RydeShopper are among the best car-buying tools available online, providing detailed lists of the current MSRP and invoice for your chosen to make, model, and trim. This information equips you with the knowledge to negotiate a fair price for your new Volkswagen.

The Difference Between Volkswagen Invoice Price and Dealer Cost

Volkswagen factory invoice prices of vehicles incorporate undisclosed profit margins, such as dealer holdback and manufacturer-to-dealer discounts. However, the dealer’s actual cost for a new car, which can be notably lower than the invoice price, is the amount the dealer pays the manufacturer.

How Much is Volkswagen Dealer Holdback?

Included in the factory invoice price of a new Volkswagen vehicle is an additional cost component referred to as dealer holdback, which generally accounts for 1-3% of the MSRP. It’s important to note that dealer holdback is not a discount or rebate but an additional sum of money certain VW dealerships may choose to receive.

The Volkswagen dealer holdback is 2% of the base MSRP

To determine the dealer holdback amount for a Volkswagen vehicle, multiply the base MSRP by 2% (before manufacturer packages or options).

The manufacturer pays this amount to the dealer every three months for each vehicle sold.

However, it’s worth noting that the dealer holdback amount may not always be negotiable, and some Volkswagen dealerships may choose not to disclose the exact dollar amount.

How to Calculate Actual Dealer Cost on a Volkswagen

How to Determine the Dealer Cost of a New VW:

Volkswagen Factory Invoice Price
– Dealer Holdback¹
– Customer Rebate²
– Dealer Incentive²
+ Destination Fee
= Actual Dealer Cost

¹Volkswagen dealer holdback is 2% of the base MSRP. (BEFORE manufacturer packages or options)
²If is applicable.

How to Find the Best Lowest Local Volkswagen Price

By using the Volkswagen invoice price as leverage, you may find it easier to negotiate a better deal for your VW, potentially resulting in a more significant discount on the sticker price.

If you can negotiate a price below the Volkswagen dealer invoice price, you may save even more money on your purchase.

To initiate your search for the best local price on a new Volkswagen, consider using RydeShopper or a similar resource.

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About the author
Carlton Wolf is the author and founder of Auto Cheat Sheet.My name is Carlton Wolf, and I’ve been in the car business since 1994, both retail and wholesale. I created the Auto Cheat Sheet to better educate buyers about the deceptive sales practices many dealerships use nationwide. Please understand that not all car dealers are dishonest. However, you never know who you’ll be dealing with, though. I’m willing to share my knowledge and experience with anyone who listens. Keep in mind that I’m a car guy, not a writer.