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In some cases, dealer incentives may be offered as well. These
incentives are typically cash money that the buyer may use for the
down payment or to pay other closing costs associated with the
purchase.
A buyer may discover several different prices and it’s important
to know the meanings of those terms. The purchase price is the
actual amount to be paid for the vehicle. The sticker price is the
amount typically posted in the car’s window. While that price is, in
theory, the price of the car, it is actually more of a starting
point and a buyer can usually negotiate a lower purchase price. The
wholesale price is the cost paid by a dealer. The opposite of a
wholesale price is a retail price, or the price paid by an
individual.
The MSRP - Manufacturer’s Suggest Retail Price - is the amount
recommended by the manufacturer as the selling price. Like the
sticker price, this amount is theoretically the amount a consumer
would pay for the car but is actually a beginning point for
negotiations. The dealer invoice price is the amount the dealer has
determined to be the price a consumer will pay for the car.
When buying a car, there’s no doubt that there are opportunities
for negotiating a better price than that suggested by the dealers or
manufacturers. Remember that, as the consumer, the dealer and
salesmen will often be willing to make better deals in order to make
the sale. |
