What Is the Difference Between MSRP and Invoice Price?

The Manufacturer’s Suggested Retail Price (MSRP) is the price set by the car manufacturer as a recommendation for dealerships to sell the vehicle. It is also known as the sticker price and is often higher than what buyers actually pay due to dealer discounts, incentives, or negotiations.

The Invoice Price is the amount the dealer pays the manufacturer for the car. However, dealerships may receive rebates, incentives, or holdbacks from the manufacturer, meaning their actual cost could be lower than the listed invoice price.

Key Differences:

• MSRP: The suggested retail price from the manufacturer, generally higher than the selling price.

• Invoice Price: The dealer's cost before any incentives or discounts, often lower than MSRP.

If you are buying or financing a car, understanding these prices can help you negotiate a better deal. Want to find the best deals? Explore financing options with Auto Bandit today.