Final answer:
The new car price recommended by the auto maker is the Manufacturer Suggested Retail Price (MSRP), which is used as a starting point for price negotiations at car dealerships and differs from invoice price, trade-in offer, and true market value.
Step-by-step explanation:
The new car price suggested by the auto maker is known as the Manufacturer Suggested Retail Price (MSRP). It's the price that companies like Ford, GMC, or Honda recommend the dealership charge for a new vehicle. The MSRP is usually found on the window sticker of a new car and serves as a starting point for negotiations. It does not include taxes, registration, and dealership costs, which can all increase the final price you pay.It's important to note that the invoice price is what the dealership pays to the manufacturer, which is typically lower than the MSRP.
The trade-in offer is the amount a dealership offers you for your old vehicle when you are buying a new one. The true market value is an average price that consumers are paying for the car in your market area.Comparing historical Ford car prices from 1909 to 1927 with today's models, there's a substantial difference in pricing due to factors like inflation, technological advancements, and increased quality. Today's vehicles are produced under more competitive pressure, leading to greater innovation and better quality automobiles.