dealer invoice vs retail

[Paula]

We visited with a dealer and they are getting a home we want delivered to their lot in mid-August. When we talked to the dealer and asked about the options in the home, he wouldn't show us the actual invoice, but he was looking at it as he was reading the option list. They hadn't even decided on a sales price yet, but I could see through the sheet and saw the actual dealer invoice (what the manufacturer is billing the dealer for). The amount is $18k less than what he's going to put it on the lot. He said he would offer us a sale price, which was $3k less than the retail price.

Should we tell him we know what his invoice price is because we saw it? Would it be fair for us to make them an offer on the home starting at only $10k over their invoice price? Would you offer even less than that? The dealer includes delivery, set up, blocking/leveling, and skirting in the sale price he quoted us. Should we also see if they'll throw in the AC or anything else? Are steps something the buyer has to get separately?

Sorry about so many questions. We want to put our offer on this home soon and appreciate all the valuable advice we have received here so far.

Thanks in advance!
Paula

[rmurray]

The dealer invoice is only 1 part of the cost to the dealer...You mention some others that are included...

You have not mentioned if this was a single or double..

Before you offer..you should have a clearer understanding of what is included...You mentioned steps...most often a/c is included in dealer quotes...but not always...are they hooking up electric, water and serwer...How about permits...

Set up, steps, skirting, a/c, hook ups and permits can easily come to $7000 for a double and $4000 for a single...This is not profit for the dealer...

The best way to compare price is to shop more than 1 dealer on exactly the same house and options.....Good Luck....

[Paula]

The home is a Skyline double wide....28x48. The dealer said that AC would be extra, about $1200 (we've been quoted $800 to $1500 for AC depending on the dealer). As far as I know, they don't do the hook ups. They have mentioned having my contractor for the water/septic/electric come hook those things up, and we will have an LP tank for gas, so I would imagine when the company we go through for the LP tank delivers it, they'll also hook it up. I think that's how it worked for my aunt anyway, and her home is next to where mine will go All the contractors we've talked to said they will pull all the permits for us (and that is included in the quotes we've gotten from them), so hopefully the dealer won't have to do any.

If we gave them a low offer, we'd expect to have to pick up the cost of the AC, steps, or other things like that, but if they won't budge on the price, we'd see if they would include more in their price. That sounds reasonable to me, but since I've never done this before, I just want to see what the standard is

What would be considered a fair offer on a home that was offered to us $15k over their total invoice price? I saw "$xxxxx.xx base invoice price", a list of options, and the total at the bottom, but I forgot what they called it...actual invoice price? and I could read it through the back of the paper because there was a window behind him and I was directly in front of him.

Thank you!

Paula