A 2014 survey by Edmunds.com found that people consider shopping for a car more stressful than planning a wedding. More recent studies show consumers would rather be stuck in an elevator than spend an afternoon in a car dealership. The stress consumers feel can be caused by the different “unknowns” in the car buying process. And the typical car business lingo only makes things more confusing!

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One of the most common, for example, is MSRP versus invoice pricing. In so many words, MSRP is for the consumer, whereas the invoice price is for the dealership. But does it do any good for you to know the invoice price" And what about factory rebates and extended warranties, both of which come up during the car buying process. How important are those topics when it comes to getting the best deal on a new vehicle"
Below we will cover some common terms and phrases you are likely to hear or see when shopping for a new vehicle. Understanding what they mean and how they are used will help as you search for a new car.

Manufacturer’s Suggested Retail Price

Commonly shortened to just “MSRP,” this number is found near the bottom of the window sticker (it might appear in a bolded or highlighted box). The MSRP includes the standard vehicle price (i.e., without options), the pricing of optional features and packages, and th...