Buyer Question: How do I determine the price I should pay for a new vehicle?

Comment: There are several prices the buyer should be aware of when determine the price they should pay for their next new vehicle.  These prices include 1) Dealership Invoice, 2) Manufacturer’s Suggest Retail Price (MSRP), and 3) Dealership Lot Price.

Dealership Invoice Price – The price the manufacturer charges the dealership for the vehicle before deducting manufacturer bonuses, incentives and holdbacks, if applicable.

Manufacturer’s Suggested Retail Price (MSRP) – The price which manufacturers suggest dealerships sell the vehicle.  Dealerships have the option of selling new vehicles at this price or at a higher or lower price. This price is the same throughout the United States and is shown on the Mulroney sticker. The Mulroney sticker is a Federal required vehicle price sticker which must be displayed in the window of all new vehicles.

Dealership Lot Price – The price which dealerships list on their price sticker. This price is the vehicle’s MSRP plus the price of dealership added options, dealership added profit markup and additional dealership junk fees.

Buyer Question:  Where do I find the Dealership Invoice Price and MSRP for a vehicle?

Comment: A vehicle’s Dealership Invoice Price and MSRP can be found on several Internet sites e.g. Autobytel at www.autobytel.com.

Buyer Tip: When negotiating the price of a new vehicle the potential buyer should start with a price based on the Dealership Invoice Price, before manufacturer rebates, not the MSRP or Dealership Lot Price.

Buyer Tip:  Never negotiate the price of a new vehicle which does not have a Mulroney sticker displayed on its window.

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