What Do These Prices Mean?

Stevens03 · June 2, 2009

When you see this

* MSRP: $19,375 - $44,020

* Market Price: $16,904 - $36,499

* Invoice: $18,503 - $40,718

MSRP - Whats on the window sticker.

Market Price - What the vehicles are actually selling for?

Invoice - What the dealer is paying for it?

If that s they case, how could dealerships be selling under Market price?

gave20 · June 2, 2009

The Invoice should be what the truck cost to make. the Dealer can sell it for that price and still make up to 3% on hold back. I'd only pay attention the invoice price; the MSRP and market prices are what other saps are paying and it doesn't represent a good deal.

ryan_hermanutz · June 2, 2009

When you see this
* MSRP: $19,375 - $44,020

* Market Price: $16,904 - $36,499

* Invoice: $18,503 - $40,718

MSRP - Whats on the window sticker.

Market Price - What the vehicles are actually selling for?

Invoice - What the dealer is paying for it?

If that s they case, how could dealerships be selling under Market price?

MSRP = Manufacture suggested retail price

Market price = is the average price in your market area

Invoice = is what the vehicle cost the dealer to procure

I do not know really how dealers get their vehicles or what the cost and pricing process is, but there has to be some mark-up on the invoice price. I was always told that if you leave a dealership feeling good about it and thinking you got a great deal, they screwed you somehow.

Stevens03 · June 2, 2009

Well I was curious how they sell for under invoice, thats all.

y2kz71 · June 2, 2009

because thats not a true invoice price

PhilB · June 2, 2009

I think Market Price also includes any rebates the consumer gets when they purchase their vehicle.

SilveradoWV · June 2, 2009

Some dealers around here always advertise they are X amount under invoice. I would say no matter how great of a deal you get, the dealer is still probably making at least $1000 per car, if not a lot more.

jwieps · June 3, 2009

Do you guys negotiate at the supermarket? Be thankful. Most items you purchase on a daily basis have a higher profit % than your dealer makes..... When you go into the store to buy a loaf of bread later - take it to the register and say "I'll give you $0.75 for this" and watch what happens!

Lets say the dealer made $1000 per car.......... Would you tie up $30,000 of your money, pay interest on it (for a few months), allow a stranger to drive your $30,000 investment around the block on your insurance policy - for $1000.00 profit? Of course there is alot more to it but you get my point. Personally, I can think of many other things that I would invest $30,000 into - for more return than $1000.00

Antother thing to consider... with the price of gasoline fluctuating the way that it has over the past year, prices (Market and Wholesale) have been so far off its difficult to use these as an accurate guide. When gas was $4.25 almost a year ago, a truck that booked for $20,000 - dealers were selling for $15,000 because the guides hadnt caught up with the market. Books are usually close - but I have yet to see one write a check for a vehicle!

gave20 · June 3, 2009

if you feel that you need to give the dealer more money you can donate all you want. Last time I checked nobody was forcing a dealer to sell at a certain dollar amount; it's a price both parties agreed to. Trust me dealers make plenty of money and have for years. I'm just glad information is finely being made available to consumers so they have the tools to proper deal on vehicles. Dealers have been screwing people for years and it's about time they get their dues.

Roofer · June 4, 2009

Not everything here is true.....

Dealership vehicles are mostly consignments from the manufacturer. It is true that they make very few dollars on the sale. They make almost all of their money on service and warranty. Put it all together and you can see some of the reasons why dealerships are closing and vehicle makers are bankrupt.

I read this stuff all the time......

"my dealer gave me a great deal"

" great service at dealer cost"

"I drove 250 miles to get the best price"

"Uh oh, my favorite local dealer just closed up because they are broke"

Now guess what....that 250 miles to save a few bucks is just going to cost you now.

Dealership owners are just like me and you. They buy a franchise and try to make a living.

Now, used cars........that's a whole different story.....