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OFTEN CONFUSING TO ALL
By Staff Reporters
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A vehicle typically has two prices: the manufacturer’s suggested retail price (MSRP) and the invoice price. The MSRP is the sticker price, while the invoice price is what the dealer paid the manufacturer for the vehicle. The MSRP includes a hefty profit, so that’s what dealers want you to focus on. However, your goal should be to get the invoice price and focus on that for your negotiations.
However, finding invoice pricing on new cars can be difficult when going through the dealer. Dealers don’t want their invoice price on a vehicle to be public knowledge because that gives customers more leverage when it comes to negotiations. Just like any company, car dealers are in the business to make money. They can’t make money if they give you a huge discount on a car.
What is a Vehicle Invoice Price?
When it comes to the car buying process, there are several other terms and types of pricing you should understand. One of them is the vehicle invoice price. This is also known as the dealer cost, or what a car manufacturer charges the dealer for that specific vehicle. Freight charges are typically included in this total.
However, the numbers on the invoice may not be the true price the dealer paid for the vehicle, because it has hidden profits already built-in. Dealers are often given manufacturer rebates, allowances, discounts, and other incentives for selling a car. The invoice price on a vehicle may range from several hundred to several thousand dollars below its sticker price, which is why service will help you determine what the real numbers look like.
So, once you determine the car invoice price, you have added leverage when it comes to negotiating the best price possible with the auto dealer.
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Filed under: "Ask-an-Advisor", Funding Basics, Glossary Terms, LifeStyle, Research & Development | Tagged: auto, auto dealer, auto invoice price, automotive, car, car dealer, cars, dealer, dealer cost, dealer price, inoice price, invoice price, manufacturer's suggested retail price, MSRP, news, rebates, sticker price, vehicle invoice price | Leave a comment »
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