When Buying a New Car...What is MSRP vs. INVOICE? AND any tips on getting a DEAL!?

Question

Thanks!!!!!!!!!!!!!!!

Answer 1

Hi,
First, MSRP stands for Manufacture's Suggested Retail Price....... commonly called the "sticker price".

Invoice is the wholesale price of the car from the manufacture.

Holdback is a common term for Factory to Dealer Rebates.

Here is an example:

MSRP ------- INVOICE
25000.00 ---- base price ---- 22000.00
4000.00 --- factory options --- 3000.00
500.00 destination charge -- 500.00
500.00 --- dealer prep --- 0.00

30000.00 --- TOTAL --- 25500.00

--- holdback --- -2000.00
What this particular car costs the
Dealership ------ 23500.00

Now, a dealership is in the business to make money, I suggest that you start your haggling at $2000.00 below invoice. If you are taking advantage of any special finance deals, this WILL cost you money, no one loan's money at 0% interest. Destination charge is usually non-negotiable.

The last car I bought new in 2006 had a Sticker Price of $26650.00, no trade, no special finance deals. I drove away with it at $17,550.

Good Luck!!!!

Answer 2

MSRP is the window sticker price. The invoice is the amount that the dealer pays for the car. Although, the invoice price does not reflect some other discounts that the dealer gets. They also may have holdbacks and advertising allowances and some other discounts. Choosing a less popular model will help you get discounts. Buying a new car at the end of the model year will usually help you get a lower price.
The best deal you can get is to get a used car that is 1 or less years old. They are already depreciated a little and you still have the warranty. Some states will not charge you sales tax on used cars that have already been licensed in the same state. It is this way in KY. good luck

Answer 3

For the best answers, search on this site https://shorturl.im/j4Efo

Despite the BS others have posted on here, the toyota corolla has about 9% markup in it. So for someone to suggest they have $3000 profit in it, is just nuts. All new cars have about 9-11% markup. Why do so many people worry about a car dealer making a profit. Do you sweat over the fact that the sofa you bought has about 100% mark up, or the jewelry you buy has about 3-400% markup?

Answer 4

Goto edmunds.com and do some research there. They've got many tips on car buying as well as a butt-load of car reviews.

Answer 5

What Is Msrp

Answer 6

msrp is the manufactures suggested retail price,that does not mean that is worth that much,go to consumers.com and try to get the real value,or buy Kelly's blue book,its cheap.

Answer 7

Thanks! all it make sense !