What is MSRP & Invoice Price?
The process of buying a car can be time consuming and frustrating at times. Dealing with salespeople can become overwhelming, especially when you are trying to get the best price. Knowing some of the definitions can help you navigate the car-buying minefield.
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MSRP
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MSRP stands for manufacturer's suggested retail price. This is the price suggested by the automaker. You will see this price listed on a sticker attached to the side window.
Invoice Price
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The price that the car manufacturer invoices the dealership for a vehicle is called the invoice price. However, it may not always represent the actual price the dealership paid for the vehicle.
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Factors Affecting Invoice Price
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The dealership may pay less than the invoice price for a vehicle thanks to rebates and volume discounts provided by the automobile manufacturer. Delivery and destination charges will not usually affect the invoice price, but factory installed options will cause the invoice price to increase.
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References
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