MSRP stands for Manufacturers Suggested Retail Price. That price is only a suggestion. The actual price of the car will vary from the MSRP, depending on the geographical region you live in, the popularity of the car at the time of sale, and several other factors. Most invoice prices are lower than the MSRP.
The invoice price is the retail price marked on the invoice; which begins with a mark-up over the actual dealer's cost; plus transportation charges to the dealership, and any optional equipment which has been added to the vehicle. Invoice prices are often not the final price at which the vehicle is sold. If a particular model is a strong seller; such as Honda Accords or BMWs; these cars will typically sell at prices well above invoice. In those situations, it is often advantageous to purchase the car through a broker; who will sell it at a flat fee over his cost.
On the other hand, in a poor economy, such as that which now exists; dealers become more motivated to sell at smaller margins over their cost, in order to move more units. Sometimes these dealership prices will match or beat broker prices. This is a time when dealerships may be open to negotiating prices which are below invoice.
I hope this helps!!!
Joel
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