In the world of car buying, knowledge is power. Understanding the dealer invoice price can give you the upper hand when negotiating with dealerships. But what exactly is the dealer invoice price, and why is it important? In this step-by-step guide, we will explore the concept of dealer invoice price, how it is calculated, and the difference between dealer invoice price and MSRP (manufacturer's suggested retail price). We will also discuss the steps you can take to discover the dealer invoice price and how to use it in negotiations. Finally, we will address some common misconceptions about dealer invoice price. So let's dive in and arm ourselves with essential knowledge before heading to the dealership.