Differences Between MSRP, Sticker Price and Invoice Price

June 19th, 2019 by

Purchasing a car is a big decision. You want to ensure you get your money’s worth when you buy. However, many people fear that they will somehow pay more than they should for their new vehicle. You need not be so intimidated by the process. You should go to the dealership armed with knowledge of what the different prices mean.

MSRP Price

This is the price suggested by the manufacturer. The cost of manufacturing the vehicle, its make and model, and the specific trim options of the vehicle. The more popular the vehicle, the higher the MSRP is likely to be. It is important to remember that this price is determined well in advance of the car being displayed on the floor of the dealer. It is only a suggested price and gives the dealers a starting point for determining the sticker price.

Sticker Price

This is the asking price of the car dealership. It includes additional charges such as transportation, preparation costs, installation options, and other dealer expenses. The one important fact to keep in mind is that dealers can charge anything they want for sticker price. In fact, many of them count on the fact that most consumers will not look up the MSRP price. Dealers also artificially raise the sticker price in order to outflank those who say they will not pay anything above sticker price. They will then offer a supposed discount, which tends to remain well above a reasonable sticker price. They are counting on the fact that someone will pay what they want.

Invoice Price.

This is what the manufacturer charges all new car dealers for identical makes and models of a new vehicle. The manufacturer sets a base price. The price increases as options such automatic transmission, air conditioning, sound systems, sunroofs, etc. are added.

What you should takeaway from this is to educate your self on all the various pricing modules for each vehicle offered at ALM Kennesaw. We are fair, we do not haggle you and we have huge inventory of pre-owned cars at great prices!

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