Why can’t Canadians access invoice car pricing?

South of the 49th parallel, U.S. car buyers can simply Google their way to the invoice price of just about any car they like. But up here in Canada that same information is jealously guarded by the manufacturers. Why the difference? I’m not entirely sure, but I suspect the inequality has something to do with greater public access to information in the U.S. and a greater willingness of dealers down there to share the info.

But perhaps I’m getting ahead of myself. Let’s first examine what the invoice price is and how it can help consumers. The invoice price is essentially the dealer’s cost on a car. This cost is always lower than the manufacturer’s suggested retail price and the difference is called the mark-up. Knowing exactly how much the dealer paid for a particular vehicle can be a very empowering bargaining tool.

Generally speaking, mark-ups vary from about nine to 20 per cent over the invoice price. Cheaper cars tend to be on the lower end of the scale while luxury models are more likely to command a higher mark-up. Most people would probably be surprised at how little dealers make on new cars. And in Canada where compact and sub-compact cars make up more than half of all new car sales, it is easy to understand why some dealers are struggling to make ends meet. But that is their concern and not ours at the moment.

Now, anyone who thinks they can negotiate a car price down to the dealers invoice is dreaming in Technicolor. The best most people can hope for is to knock a few percentage points off the MSRP. For example, on a compact car like a Honda Civic or Toyota Corolla, a good deal would probably be about $600-$700 off retail. On a more expensive car though, the savings could be into thousands of dollars.

The best advice I can give car buyers is to use the services of a non-profit group like Car Help Canada or the Automobile Protection Association (APA). They not only have access to invoice pricing, but also offer pre-negotiated pricing that is often a far better deal than you would be able to negotiate for yourself. And best of all, you don’t have to deal with pushy salespeople, even pushier business managers and all that back and forth baloney. Both groups have been around for years and are dedicated to helping consumers navigate their way through the car industry. There is a membership fee for their services, but the payback is instant and well worth it if you purchase through them.