Understanding New Car MSRP and Invoice Pricing
Buying a new car can be fun, but at the same time very nerve racking and confusing. If you are like most car shoppers, you are probably confused about new car MSRP. You may be asking yourself what MSRP even means.
MSRP stands for “Manufacturers Suggested Retail Price.” It was originally meant to be a consumer service back in 1958 when a bill passed through congress requiring manufacturers to follow the Fair Trade statutes. These statutes offer protection to small dealerships in competition against larger organizations and allow for businesses to make a better profit.
A more common use for MSRP can be seen in the sale of automobiles in the United States. Factors that influence 
the new car MSRP are the cost of manufacturing, the make and model of the vehicle, the specific trim options and where the car is being sold. It is a good idea to research the make and model of the vehicle you wish to purchase and knowing what the MSRP will be before you settle on that vehicle. Use the MSRP to determine if the car is in the right price range for you and compare that price to other vehicles. This will help you find the best deals available when shopping for a new car.
New car MSRP is also referred to as the “sticker price.” By law, manufacturers and dealers are required to show this price on the window of every vehicle in the dealership. If a vehicle is more popular in one region of the country than it is any where else, you can expect that it will have a higher new car MSRP. Be advised that this is merely a suggested price for sale. With any new car purchase there are additional fees and charges, such as transportation and preparations costs. The dealer has the freedom to change the suggested price from the new car MSRP if he chooses to.
It is important to know that the new car MSRP and sticker price are very different from the invoice price. The invoice price is the wholesale price of the vehicle. This is also the price that the dealership pays for the vehicle. The difference between the invoice price and the MSRP is the built in profit auto manufacturers set for dealerships. The real profit a dealership makes is the price the vehicle sells for minus the invoice price.
When shopping for a new car it is often difficult to find the vehicle you want at the price you want to pay. At Plaza LINCOLN, we'll do whatever we can to help you drive away in the car you have always wanted and at the price you want to pay. We provide new and used auto sales, service, parts and financing. If you are shopping for a new or used LINCOLN or need information about new car pricing in the Orlando area, turn to Plaza LINCOLN to answer all of your new car MSRP questions.
Plaza LINCOLN sells new LINCOLN cars, and provides Powerstoke Diesel Service and Powerstroke Diesel Repair in Florida, Central Florida, Orlando, Orange County, Lake County, Marion County, Sumter County, Tavares, Mount Dora, Eustis, Clermont, Lady Lake, Fruitland Park, Leesburg, The Villages, Ocala, Umatilla, Astatula, Mascotte, Montverde, Minneola and Groveland.
