When it comes to buying a car, understanding the difference between the invoice price and the manufacturer's suggested retail price (MSRP) is essential. These two terms play a crucial role in determining the actual cost of a vehicle and can significantly impact your car buying experience. In this article, we'll define invoice price and MSRP, explore their significance in car buying, delve into the factors contributing to the gap between these prices, as well as share strategies for negotiating using invoice price and MSRP. We'll also address common misconceptions surrounding these terms to ensure a clear understanding. So, let's begin by defining key terms: invoice price and MSRP.