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Invoice Vs MSRP?

MichaelNJMichaelNJ NJPosts: 4
edited March 2018 in Honda
I've always used dealer invoice when pricing cars and negotiating with dealers. I noticed the forum almost always uses MSRP. How come? Are dealers packing cars nowadays with after market add-ons making dealer invoice difficult to compare?
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Answers

  • kyfdxkyfdx Posts: 171,682
    MichaelNJ said:

    I've always used dealer invoice when pricing cars and negotiating with dealers. I noticed the forum almost always uses MSRP. How come? Are dealers packing cars nowadays with after market add-ons making dealer invoice difficult to compare?

    When you get a dealer to agree on the invoice price, you let me know.. ;)

    The MSRP is the MSRP. That way, you can compare apples to apples.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • MichaelNJMichaelNJ NJPosts: 4
    Thanks for your answer! I don't buy cars often but almost all of them have been at invoice or below in a couple of cases. Those instances have been when dealers are sharing their kickback. The advice I have seen over the years is always to negotiate from invoice and not MSRP, that's why I am surprised to see the forum discussions comparing MSRP. You are correct that MSRP is MSRP so maybe it does not make a difference.
  • isellhondasisellhondas Issaquah WashingtonPosts: 20,313
    Holdback helps pay for a small piece of the overhead and is far from bottom line profit.

    If you have been buying cars at invoice or below it sounds like you have been buying unpopular slow selling cars OR there was unseen "Trunk Money" involved that enabled a dealer to still make some profit.

    A lot of "experts" out there and they all have their methods. You'll do just fine!
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