What's the difference between 'cost price' and 'list price'?

Honda are offering me their cars at cost price. How much less is that than list price?

Asked on 3 September 2017 by Peter Odds

Answered by Honest John
'Cost Price' is usually a fudge. Dealers buy their stock at discounts of between 3 per cent and 15 per cent, depending on supply and demand. That's what they mean by 'cost price'. But they also get bonuses and volume discounts, so if they sell or register a lot of cars in a single month their discount averaged across all of these cars could be as much as 25 per cent. But your Honda dealer doesn't mean 25 per cent. He probably means 6 per cent - 10 per cent.
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