Dealer Invoice: Explained | CTFA Exam Prep | ABA

Dealer Invoice

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Question

Dealer invoice is the amount a dealer is billed by the car manufacturer.

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Explanations

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A. B. C. D.

A

The statement "Dealer invoice is the amount a dealer is billed by the car manufacturer" is generally true.

A dealer invoice is a document issued by a car manufacturer to its authorized dealers, which specifies the details of the vehicles that the dealer has purchased from the manufacturer. The invoice includes the manufacturer's suggested retail price (MSRP) of the vehicle, the dealer's cost for the vehicle, and any other charges or fees associated with the purchase, such as destination charges, advertising fees, or floor plan financing fees.

The dealer invoice is an important document for the dealer, as it establishes the price at which the dealer purchased the vehicle from the manufacturer and sets the basis for the dealer's retail pricing and profitability. The dealer may negotiate the price of the vehicle with the manufacturer based on the dealer's volume of purchases, market conditions, or other factors, but the invoice generally represents the actual cost of the vehicle to the dealer.

In summary, the dealer invoice is a document that reflects the amount that a dealer is billed by the car manufacturer for purchasing vehicles, and is an important tool for the dealer in managing its inventory, pricing, and profitability. Therefore, option A - True is the correct answer.