What is the difference between the "sticker price" and the "invoice price" of a new car or truck?

The Sticker price is the amount listed at the bottom of the manufacturer's sticker that's pasted onto the window of the new car or truck. This price is also known as the "M.S.R.P." which stands for "Manufacturer's Suggested Retail Price." This is the official asking price for the vehicle.

The Invoice price is the amount that the dealership paid to the manufacturer for that new car or truck. In reality, the dealership may actually may end up paying less than what you see on the invoice because they may receive bonus money back from the manufacturer in the form of a "kickback" - sometimes called "holdback" - and/or a rebate and/or other incentives for selling a certain volume of cars. That's how a dealership can sell you a new car or truck at a low close-to-invoice price and still make a nice profit.

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