The car dealer invoice price is the amount the dealership pays the manufacturer for a vehicle. It's a critical number for car buyers because it serves as a starting point for negotiation, helping you understand the dealer's cost and potential profit margin. However, it's not the dealer's final cost, as they often receive additional holdback and incentives from the manufacturer, meaning they can still profit even if they sell a car at or slightly below the invoice price.
While the Monroney sticker (MSRP) is the manufacturer's suggested retail price, the invoice price is typically 5-10% lower. Your goal as an informed buyer is to negotiate a final sale price that is as close to the invoice price as possible, or even below it, after factoring in available rebates.
Here is a comparison of typical MSRP vs. Invoice prices for popular models to give you a realistic idea of the spread:
| Vehicle Model | MSRP (Manufacturer's Suggested Retail Price) | Estimated Invoice Price | Typical Difference |
|---|
| Honda CR-V EX | $33,500 | $31,800 | $1,700 |
| Toyota Camry LE | $27,500 | $26,200 | $1,300 |
| Ford F-150 XLT | $48,000 | $45,600 | $2,400 |
| Hyundai Tucson SEL | $30,000 | $28,500 | $1,500 |
| Chevrolet Equinox LT | $29,500 | $28,100 | $1,400 |
To find this information, use third-party websites like Edmunds, Kelley Blue Book (KBB), or TrueCar before visiting the dealership. Remember, the invoice price doesn't include the dealer's advertising fees or destination charges, which are usually the same for all buyers. The most effective strategy is to be armed with this data and focus on the out-the-door price, which includes all taxes and fees, rather than getting stuck on the invoice number alone.
