An invoice price represents the cost of a vehicle before taxes and other fees are applied. Buyers can negotiate with dealers to pay less than the manufacturer’s suggested retail price (MSRP). For example, the invoice price of a Jeep Grand Cherokee might be $35,000, while the MSRP is $40,000.
Knowing the invoice price can give buyers an advantage in negotiations. It also helps them understand how much profit the dealer is making. Historically, invoice prices were not readily available to consumers. However, the internet has made it easier for buyers to research vehicle pricing.
