MSRP vs Invoice price and buying tips

mpk3 · Feb 16, 2010

I'm embarrassed to ask, but what is the difference between MSRP and Invoice prices?

I am planning to buy a new car and don't want to get taken advantage of at the dealership. Any car buying tips?

Thank you

Guest · Feb 16, 2010

MSRP is what they would like you to buy it at.

Invoice is what the car cost them to buy from the manufacturer.

I never care what the MSRP is. I always negotiate from invoice. If there are rebates, you can get a car for under invoice. My Lexus was $500 under invoice. If I didn't get this one particular option package, they go for about $1500 under invoice.

Check Edmunds.com for the invoice and any rebates out there. Then, I e-mail/fax a bunch of dealers and ask them for a quote on a specific car I'm looking for. I take the responses and play them off each other. I finished shopping for my Lexus in less than 10 hours from the comfort of my own home. I check carsdirect.com to see what "market" price is in my area, and I never buy over that price (cuz you could just buy from carsdirect.com then).

SavsMom · Feb 17, 2010

Yup...use Edmunds, they are usually fairly accurate in their pricing of new vehicles. If you are looking to purchase a vehicle that is fairly common and easy to get you should be able to purchase the vehicle for around invoice (or a little less) minus the rebates. If the vehicle you are looking to purchase is a brand new model, has limited availabilty or is just a "hot" item dealers may be less willing to negotiate.

Best advice, go on Edmunds, price out the vehicle you are wanting with all options you are looking for included and get quotes from at least 3 dealers (you can do this right from edmunds) and start there.

codex57 said:
MSRP is what they would like you to buy it at.

Invoice is what the car cost them to buy from the manufacturer.

I never care what the MSRP is. I always negotiate from invoice. If there are rebates, you can get a car for under invoice. My Lexus was $500 under invoice. If I didn't get this one particular option package, they go for about $1500 under invoice.

Check Edmunds.com for the invoice and any rebates out there. Then, I e-mail/fax a bunch of dealers and ask them for a quote on a specific car I'm looking for. I take the responses and play them off each other. I finished shopping for my Lexus in less than 10 hours from the comfort of my own home. I check carsdirect.com to see what "market" price is in my area, and I never buy over that price (cuz you could just buy from carsdirect.com then).