You don’t have to go very far to hear people talk about such terms as invoice and sticker prices. What actually do these terms mean and is it important that car buyers know? If you want to take full advantage of KIA deals in NJ the answer is a resounding “yes,” knowing the meaning of these and other terms can help you get the best possible deal on a new car.
The three common terms used in the industry are:
- Sticker price
- Invoice price, and
- True market value price
Each of these terms has a specific meaning and is used in certain circumstances. Let’s have a quick look at these terms:
- Sticker price is the MSRP (manufacturer’s suggested retail price). This is the price the dealer would like you to pay for your new car.
- Invoice price is what the dealer pays for the car
- True market value is the price you will usually end up paying for the car
When you study these terms you will quickly see that the true price that you will end up paying is bracketed between sticker price; the highest, and invoice price, the lowest. Obviously there are exceptions to the rule, this whole concept can be thrown on its ear if a hot new car has just hit the market; chances are cars like this will sell over sticker price.
How pricing affects negotiations:
Needless to say, the dealer would like to open negotiations close to the sticker price while the customer would prefer to start closer to invoice price. The dealer must make a profit, understanding this is why you, as the buyer, should look at what kind of KIA deals in NJ are available bearing in mind that you will keep an eye on the true market value but try to negotiate less if possible.
