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Discover the Difference Between MSRP and Invoice Price

January 24, 2012

Purchasing a car can be difficult. There are so many choice and so much information many people do not understand. When looking at prices of cars, understanding the process can prove crucial in getting the best price. Through an understanding of the manufacturer’s suggested retail price (MSRP) and the invoice price, you can be on your way to buying a car for the best price possible. By getting a FREE car quote today, you can save up to $2,200 on your new car!

Pay At or Below the Invoice Price on

One of These New Cars

What is the Manufacturer’s Suggest Retail Price?

The manufacturer’s suggested retail price or MSRP, is the price the factory recommends the dealer sell the car. However, the dealer is under no obligation to sell the car at this price.

The manufacturer’s suggested retail price includes the car’s standard features, plus any factory-installed options. It does not include dealership-installed options. These add-ons can create a lot of additional charges on top of the MSRP. It is good to be aware of where these fees are coming from. Knowing about these hidden costs could prevent you paying for add-ons you may not want.

The manufacturer’s suggested retail price must be shown on the sticker of all new cars. This number can provide a better understanding of the general amount you should be paying for a new car. Many people look at the manufacturer’s suggested retail price, also known as the sticker price, and start haggling below it. Don’t be fooled. People who take advantage of FREE price quotes online will know they can pay far less than the MSRP. In fact, it’s possible to pay below the invoice price!

What Is The Invoice Price?

The invoice price is listed as the amount the dealer paid for the car. It includes fees such as delivery charge and factory installments.

The invoice price is not necessarily the amount the dealer actually paid for the car. Most manufacturers offer dealers special rebates and volume discounts so the dealers can sell the cars more quickly to make room for new product. No dealer wants to have his vehicle lot full of old cars.

Paying The Right Price

Use the invoice price to provide a base for what you want to pay. Remember the dealership probably paid less than the listed invoice price, so it is still making a profit. Start by negotiating below the invoice prices. Sometimes, the dealer is so desperate to sell their cars, they are not as focused on making a big profit. Take advantage of those times by arming yourself with the knowledge that an online price quote can provide!

There’s so much information out there about new cars. Don’t get confused by MSRPs and invoice prices. With a FREE, no-obligation, online price quote, you’ll be on your way to getting a new car without feeling like you’ve paid too much. /

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