What is Dealer Cost? Seedealercost Breaks it Down

Dealer Cost refers to the manufacturer’s invoice to a dealer for its purchase of a vessel or vehicle. In theory, this cost is the actual price the dealer paid to get the vessel on their lot. 

The manufacturer’s invoice may not have been the FINAL price a dealer has paid on the vessel in question, due to other agreements in place between them. But it is a powerful tool to ascertain value of the item you want to purchase and make your way to a comfortable close. Though this is a powerful tool for you to use to negotiate, there are a few other items to raise with the dealer to arrive at the final sale price.

First, a sales contract may contain some fees you didn’t know about. Some of them are more legitimate than others, and there may be room to push. “Documentation Fees”, for example, can cover anything from the cost of dealer prep, handling or even shipping. These fees might be acceptable, especially if you are getting great service or a low price, but negotiate them accordingly.

Occasionally these “doc” fees cover delivery expenses to you, so make sure you are clear on how and when your boat will be delivered, and get it documented. Also, you should have a clear understanding of how to use your boat before putting it into the water. Get the dealer to agree in writing to show you how to use the boat on the water at time of delivery.

Similarly, “Advertising Fees” can show up on a contract which offset the dealer’s (not the manufacturer’s) own advertising efforts. This is another point of negotiation to offset final cost. 

Negotiating Your Best Experience

Insider tip: get everything in writing. Make sure everything you negotiate during the transaction is actually written down to avoid misunderstandings. Here are a few common post-sale oversights: 

    • Hull registration. The dealer should provide state registration numbers on your boat, and fulfill all legal documentation needed to operate it. 
    • Boat name. The dealer should install the of name of your new boat. 
    • Delivery. The dealer is obliged to fulfill on-water delivery if that has been agreed to, and provide a full tank of fuel.

Get in writing any outcome of your negotiation. And whatever you decide: new vs. used, power yacht vs. pontoon, seedealercost.com has your back.