Archive for the ‘MSRP’ Category

Difference between MSRP and Invoice Price

Friday, April 20th, 2012

What is the difference between the MSRP and the invoice price? The MSRP is the manufacturer’s suggested retail price which is also known as the “sticker price.” It is essentially the “suggested” retail price but it isn’t necessarily the price that dealers use as the selling price for their cars. Depending on various factors such as demand and availability, the actual selling price could be higher or even lower than the MSRP.

The invoice price is simply the price that dealerships pay for cars. The invoice price is significantly lower than the MSRP, but how much lower depends on the make and model of the vehicle. Many car buyers today look up the invoice prices for the cars that they are interested in purchasing or leasing so that they have an idea of how much the MSRP can be negotiated without reaching a price that is lower than the invoice. In some cases, dealers will even offer a deal where the selling price is lower than the invoice price.

[wp_ad_camp_1]

What is the Difference Between Gross Capitalized Cost and MSRP?

Monday, April 16th, 2012

The difference between the gross capitalized cost and the MSRP has to do with two things. The first is pricing and the second is the actual price that is used to come up with the monthly lease payment. The MSRP, or the “sticker price” is the price that you’ll find printed on a car’s window at the car dealership. The MSRP is not the final price that the dealership uses in order to calculate your monthly car lease payment. The gross capitalized cost is the final negotiated price of a vehicle which is used to calculate the monthly lease payment. The gross capitalized cost is also known as the “selling price.” If the gross capitalized cost is significantly lower than the MSRP, the lease deal can be considered a “good” deal.

[wp_ad_camp_1]

Can a Lease Price be Negotiated Lower than MSRP?

Sunday, April 15th, 2012

A lease price is quite often negotiated lower than the MSRP. The lease price, which in technical leasing terms is known as the “selling price” or “gross capitalized cost,” is used to come up with the monthly car lease payment. The lower the selling price of a car, the lower the monthly car lease payment. Therefore, it is in the best interest of people interested in leasing a car to negotiate the selling price of the car to bring it as low as possible.

If the dealer offers you a lease deal that uses the MSRP as the selling price, you have not necessarily received a good deal. Most good lease deals use selling prices that are significantly lower than the MSRP. Prior to visiting a dealership, you should look up invoice prices for the cars that you are interested in leasing. Invoice prices are the prices that dealers pay the manufacturers in order to buy their cars. The selling price of a car lease deal should be as close to the invoice price as possible in order for it to be considered a good lease deal. In some cases, the selling price is even lower than the invoice price.

[wp_ad_camp_1]