MSRP, or Manufacturer’s Suggested Retail Price, is the price that the manufacturer suggests the dealer sell the car for. Essentially, this is the ideal selling price of a car. Usually, the MSRP is a much higher than the actual price of the car.
Invoice price is the actual price the car dealer has paid the manufacturer for the car, supposedly the true dealer cost. Still most new car dealerships receive extra discounts that make the actual dealer cost much lower. This is the way car manufacturers can help new car dealers sell more cars.
The new car buying market is mainly dictated by the rules of supply and demand. In many cases, the new car buying market can determine that neither the MSRP nor the invoice price is the fair price you should pay for your new car.
Depending on the popularity of the vehicle, new car dealers may ask you to pay more than MSRP if it is a hot selling model. On the other hand, if it is a slow seller, you may easily get the car way below invoice price.
Request a free, no-obligation price quote today and learn what others are paying in your area for the car you want!