What To Know About Auto MSRP
MSRP (manufacturer suggested retail price) is what the auto maker/producer is suggesting to the dealer what the car should be sold to the consumer for. Paying MSRP is long forgotten, but how should the consumer know what to pay? There are now tools for the consumer to go into a potential purchase better equipped to handle what is a fair price to pay. Two very good resource sites are Edmonds and KBB (Kelly Blue Book). These sites can provide MSRP, Invoice, Destination fees, average selling price, etc.
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-Dealer Invoice: This is simply the price paid by a dealership for the vehicle. It is not uncommon to be able to negotiate Dealer Invoice for the end users sale price. Keep in mind that dealerships (not all) get incentives on how many cars they move, financing through them, and maintenance when you bring the vehicle back for service check ups, etc. With the internet and the stiff competition, invoice price is not unattainable. Remember, just because one gets it for invoice does not mean the dealer is losing money by any means.
One more piece of advice is to not get caught up in the monthly payment price, concentrate on the negotiated price of the vehicle. Often car sale representatives will ask “what monthly payment are you looking to stay around?”, then the prospective buyer gets caught up in the monthly payment and not the sale price. Get the best price, the payment will be what it is from there.
