There are some terms that you will need to know to effectively purchase a new car. Here are some of them.
Invoice Price is what the manufacturer has charged the dealer for the car. This is often a higher price than the dealer’s final cost because of allowances, discounts, incentives and rebates. The invoice price usually includes destination and delivery. Make sure you don’t get charged twice for freight.
Base Price is the cost of the car without options. Base price will include the factory warranty and standard equipment and is shown on the Munroney sticker.
Munroney Sticker Price (MSRP) is the sticker shown on the side window and is required by federal law. It includes the base price, manufacturer options, the cars EPA gas mileage and manufacturers transportation charge.
Dealer Sticker Price is the MSRP plus the suggested retail price of dealer installed options like, additional dealer profit (ADP), dealer preparation, undercoating, and additional dealer markup (ADM)
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