The dealer invoice price of a new car is the amount the dealership pays the manufacturer for the vehicle. It’s typically lower than the manufacturer’s suggested retail price (MSRP), which is the price that the dealership sells the car to you. For example, a car with an MSRP of $30,000 might have a dealer invoice price of $28,000.
Knowing the dealer invoice price can be helpful when negotiating the price of a new car. Dealerships generally use the invoice price as a starting point for pricing. By knowing what the dealer paid for the car, you can make a more informed decision about how much you’re willing to pay.