When purchasing a new car these days most people find out all they need to know on the Internet such as dealer invoice prices and the holdback the dealer receives. In order to get the best deal, assemble all the information you need and learn to negotiate price. There are some things the dealer won't tell you and other things you can use to your advantage.
So you want that SUV and the Internet says the dealer paid $25,000 for it, so what should you pay? Certainly not $25,000, you should pay much less. Beyond the dealer's cost of $25,000, there are hidden dollars in that dealer invoice the dealer will realize but you'll never see. For instance:
Holdback - Ask to see the dealer invoice and under the "description" of the vehicle, you'll see letters and numbers like: "HB75000." What that means is the dealer will get an additional $750 from the manufacturer as holdback to help them negotiate the price.
Advertising - Also built into the invoice and called something like "PPA" or "DDA" is what manufacturers call the advertising dollars. Sure it looks like the dealer paid it, but every dealer gets in back in their monthly advertising allowance on each new vehicle they have in stock. It can range between $200 and $500 depending on what state you live in, so ask the dealer to take that off of the price too.
Destination Charge - This is built into every vehicle invoice and it is something the dealer has to pay. They do get a vehicle preparation payment on each new vehicle of around $125, so ask them to deduct the vehicle prep payment from the destination charge.
Back-end Incentives - When auto manufacturer's see a model that isn't selling all that well, they offer the dealer incentives (in dollars) to get rid of them. They can often be as high as $5,000 to $6,000 so ask if there are any back end incentives. These can be used to reduce the sales price along with consumer rebates that are advertised.