What is the invoice price of a vehicle?

Understanding Invoice Price: What Does it Mean?

When buying a car, you might have heard about the “invoice price” of a vehicle. But what exactly does that mean? In simple terms, the invoice price is the amount that a dealership pays to the manufacturer for a particular car. It’s like the wholesale price for cars. Knowing this information can be helpful, both for people searching to buy a car and for dealerships trying to understand the terms clearly.

Why is the Invoice Price Important?

The invoice price is an important factor to consider when purchasing a vehicle because it can give you an idea of how much a dealership paid for the car. This knowledge can help you negotiate a better deal. If you know the invoice price, you’ll have a better sense of how much profit the dealership is making on the sale. It can also help you compare prices between different dealerships and get the best possible deal.

How Can You Find out the Invoice Price?

Finding the invoice price of a vehicle is easier than you might think. There are many online resources available that provide this information. One popular website is Kelley Blue Book (KBB). They offer a wealth of information on car prices, including the invoice price. All you have to do is enter the make, model, and trim of the car you’re interested in, and KBB will show you the invoice price along with other relevant details.

Invoice Price vs. Manufacturer’s Suggested Retail Price (MSRP)

It’s important to note that the invoice price is not the same as the Manufacturer’s Suggested Retail Price (MSRP). The MSRP is the price that the manufacturer suggests the dealership should sell the car for. The invoice price, on the other hand, is the actual cost to the dealership. Often, the MSRP is higher than the invoice price. Dealerships make their profit by selling the car for more than they paid.


Understanding the invoice price of a vehicle can be beneficial for both buyers and dealerships. Buyers can use this knowledge to negotiate better deals, compare prices between different dealerships, and make more informed decisions. Dealerships can have a clearer understanding of the terms involved in car pricing and ensure fair pricing practices. So, next time you’re in the market for a car, don’t forget to check the invoice price to get the best possible deal!

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