MSRP

CarMaster · 02-04-2002, 06:32 PM

What's the difference between MSRP and Dealer Invoice because on a fully loaded Liberty (which we are probably going to buy soon) the MSRP is 28,030 but on the Dealer Invoice its 26, 340. Which is the price that we will be paying?

Gecko · 02-05-2002, 07:31 AM

"MSRP" is what the manufacturer suggests as the retail price. The "invoice" is (at least supposedly) the price the dealer pays for the vehicle. What you actually pay depends on how informed and patient you are when you are in the sales office. Invoice is a good starting point, never pay MSRP unless it is a wildly popular vehicle and you just have to have one of the first ones.

If the salesman tries to tell you that selling at invoice leaves him nothing, it's likely not true. The dealership is getting a factory hold-back of between 1.5 to 3.0 percent when he sells the vehicle. That's the original dealer, so if for instance you don't find what you are looking for and they do a search and find one at another dealer that they can get, that profit is taken out of the equation. That was the situation when I got mine, so I offered three hundred over invoice. When I bought my PT Cruiser it was already in their inventory so I offered five hundred under invoice (it had 300 miles on it and it was just before Christmas so they needed sales).

You can get good information on Edmunds.com, they have invoice, MSRP and what they call a "true market value" that reflects what people are reporting they paid. There are also reviews and owner's comments.

One other thing to remember is the longer a vehicle sits in their inventory the more negotiation room you have. Most dealers don't buy vehicles, they finance them with a bank and pay off the loan when they sell it. The longer they have it the more interest it costs them.

I don't know where you live, but if it is in an area where there is a lot of competition between dealerships you can pretty much tell them what you are willing to pay. That has always been a source of frustration and even fear, when the salesman says, "so, what do you want to pay for it?". But if going in you know what he paid for it, and are willing to walk, or at least threaten to, you can end up paying what you offered. Don't talk monthly payment, talk final price. The one thing dealers hate is seeing you going somewhere else because they know if you get a better deal - even if it isn't what you were hoping for - you won't be back. I got as far as starting the engine on mine before the salesman and manager came after me and said okay to my offer.

d@g · 02-05-2002, 07:32 AM

You shouldn't be paying anywhere close to MSRP at this time. When I was shopping (last month), both the Sports and Limiteds were selling, on average, for around $300 over dealer invoice.

itsgoodlikethat · 02-05-2002, 10:10 PM

I was lucky!! I got my KJ on the DC friends and family plan and paid 2% below dealer invoice.
The dealer still seemed happy to help me out with this purchase though. They were even willing to haggle with me on the price of my trade in. I think that dealer invoice figure is inflated. Those guys had to be making money off of me somehow or they would not have been so willing to help.

Gecko · 02-06-2002, 06:54 AM

Ever see the commercials where they scream "BELOW DEALER INVOICE!!!", and then in small letters at the bottom it says "invoice may not reflect actual dealer cost"? Besides the hold-back there are other programs that can kick in some cash to them.

02-05-2002, 07:32 AM	#3
d@g Registered User Join Date: Jan 2002 Location: NJ Posts: 41 Profile Gallery Classifieds iTrader Rating	You shouldn't be paying anywhere close to MSRP at this time. When I was shopping (last month), both the Sports and Limiteds were selling, on average, for around $300 over dealer invoice. __________________ [b]2002 Jeep Liberty Sport • Brilliant Silver[/b][i] Added: Chrome Grill • Chrome tubular side steps • OWL Wrangler SR-A tires • Fog Lamps • Sentry Key Immobilizer Module (EVSII) [url="http://www.donnelly.com/shopdonnelly/comptempmirror.asp"]Donnelly Auto-dimming mirror[/url] w/Compass and Outside Temp Hitch Receiver[/i]

02-05-2002, 10:10 PM	#4
itsgoodlikethat Registered User Join Date: Feb 2002 Location: Ohio Posts: 13 Profile Gallery Classifieds iTrader Rating	I was lucky!! I got my KJ on the DC friends and family plan and paid 2% below dealer invoice. The dealer still seemed happy to help me out with this purchase though. They were even willing to haggle with me on the price of my trade in. I think that dealer invoice figure is inflated. Those guys had to be making money off of me somehow or they would not have been so willing to help. __________________ My Liberty is great, but wait until it is done!

Similar Threads
Thread	Thread Starter	Jeep Forums	Replies	Last Post
MSRP on the new CRD?	bdw8	Liberty Forum	14	07-03-2004 07:44 AM

02-05-2002, 07:31 AM	#2
Gecko Registered User Join Date: Jan 2002 Location: Nebraska Posts: 29 Profile Gallery Classifieds iTrader Rating	"MSRP" is what the manufacturer suggests as the retail price. The "invoice" is (at least supposedly) the price the dealer pays for the vehicle. What you actually pay depends on how informed and patient you are when you are in the sales office. Invoice is a good starting point, never pay MSRP unless it is a wildly popular vehicle and you just have to have one of the first ones. If the salesman tries to tell you that selling at invoice leaves him nothing, it's likely not true. The dealership is getting a factory hold-back of between 1.5 to 3.0 percent when he sells the vehicle. That's the original dealer, so if for instance you don't find what you are looking for and they do a search and find one at another dealer that they can get, that profit is taken out of the equation. That was the situation when I got mine, so I offered three hundred over invoice. When I bought my PT Cruiser it was already in their inventory so I offered five hundred under invoice (it had 300 miles on it and it was just before Christmas so they needed sales). You can get good information on Edmunds.com, they have invoice, MSRP and what they call a "true market value" that reflects what people are reporting they paid. There are also reviews and owner's comments. One other thing to remember is the longer a vehicle sits in their inventory the more negotiation room you have. Most dealers don't buy vehicles, they finance them with a bank and pay off the loan when they sell it. The longer they have it the more interest it costs them. I don't know where you live, but if it is in an area where there is a lot of competition between dealerships you can pretty much tell them what you are willing to pay. That has always been a source of frustration and even fear, when the salesman says, "so, what do you want to pay for it?". But if going in you know what he paid for it, and are willing to walk, or at least threaten to, you can end up paying what you offered. Don't talk monthly payment, talk final price. The one thing dealers hate is seeing you going somewhere else because they know if you get a better deal - even if it isn't what you were hoping for - you won't be back. I got as far as starting the engine on mine before the salesman and manager came after me and said okay to my offer.

02-06-2002, 06:54 AM	#5
Gecko Registered User Join Date: Jan 2002 Location: Nebraska Posts: 29 Profile Gallery Classifieds iTrader Rating	Ever see the commercials where they scream "BELOW DEALER INVOICE!!!", and then in small letters at the bottom it says "invoice may not reflect actual dealer cost"? Besides the hold-back there are other programs that can kick in some cash to them.