Knowing the difference between the MSRP and the invoice price will help you save money on a new vehicle. The quick explanation is that MSRP is for consumers, and the invoice price is for dealers. In this guide, we will go through both and share some best practices that will help you ultimately pay less money for a new vehicle.

MSRP vs. Invoice Price

To help visualize what this MSRP vs. invoice concept looks like, think in terms of higher and lower, and easy and not so easy. This is important because it impacts a dealer’s profit margin and your final cost for a new car. Let’s start first with a quick definition of each.

What Is MSRP"

MSRP is the acronym for Manufacturer’s Suggested Retail Price. Sometimes referred to as the “retail price” or “sticker price,” the MSRP is the purchase price as suggested by the automaker. The Manufacturer’s Suggested Retail Price is easy to find. It will be readily available on the vehicle’s window sticker (maybe even boxed and highlighted), on a dealer’s website, or listed in almost every car review on the internet.
Despite being easy to find, the sticker price is one of the higher figures (strictly in terms of dollar figures, not actual costs) you will see during the car buying process.

What Does The MSRP Include"

The MSRP includes the base price for the new car, extra factory options or packages, dealer add-ons (if applicable), and the desti...