Car buyers are familiar with the term auto sales commission, but do they understand the difference between the MSRP, sticker price and invoice price?
Becoming a more informed car buyer helps when negotiating a good price on a new SUV.
What is the SUV MSRP?
The MSRP stands for the manufacturers suggested retail price. That's all it is, a suggestion. The car dealership has leeway in determining the price for which it intends to sell the SUV. The price includes the cost of manufacturing the SUV, vehicle options, where the car is being sold and consumer demand. The MSRP sticker must be affixed to the car window and may not be removed except by the individual who purchases the car.
Sticker Price vs. MSRP
The sticker price can be higher than the SUV's MSRP. The sticker price is where the dealership adds costs that are not included in the MSRP such as transportation costs (or destination charges), after market additions and/or upgrades to the vehicle. If a particular model of a car becomes popular and the dealership recognizes the high demand for the vehicle, the dealership can increase the sticker price, keeping in mind that the MSRP is only a 'suggested' price.