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by pc86 4180 days ago
Specifically with regard to vehicle sales, dealerships absolutely do not pay invoice price. Between dealer cash, customer cash, holdbacks and other financial things, it is all but a made up number.
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For anyone interested in this topic, This American Life recently did a great hour long radio show / podcast on how dealerships work:

http://www.thisamericanlife.org/radio-archives/episode/513/1...

"We spend a month at a Jeep dealership on Long Island as they try to make their monthly sales goal: 129 cars. If they make it, they'll get a huge bonus from the manufacturer, possibly as high as $85,000 — enough to put them in the black for the month. If they don't make it, it'll be the second month in a row. So they pull out all the stops."