What's the difference between MSRP and Invoice prices?

Answer 1

msrp is what the manufacturer has set as the retail value of a vehicle they build. the invoice is the cost that the dealer pays for the car. someone mentioned earlier about holdback, that is an additional amount of money that the dealer is given for profit. some customers want it all. however, it is ridiculous to assume that a dealer give you the holdback. after all, it is a retail industry, you can ask for it, but don't make it a deal breaker if they dont give it to you. if you buy a watch for 10 dollars and ask 15 dollars for it, would you sell it for eight? good customer service isnt free.

Answer 2

The dollar amount varies greatly, but by definition, the MSRP is the Masnufacturer's Suggested Retail Price and the invoice price is wholesale. The difference between wholesale and retail can vary from 10% profit, to 300% profit.

(An upscale department store I used to work for generally made a profit of 300 to 600%, i.e. Retail price was 3 to 6 times the price the store paid for the items.)

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Answer 3

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RE:
What's the difference between MSRP and Invoice prices?

Answer 4

msrp (manufacturer's suggested retail price) is what the factory expects the dealers to get from their customers.
Invoice pretty much means wholesale price. Many people claim that invoice is the price dealers paid the manufacturers for the car. Its a real b.s. The real price dealers paid the manufacturers is invoice minus dealer holdback (varies depending on brand).

Answer 5

Profit. Don't deny a business the opportunity to make a profit.