Question

Which of the following is the term used to describe the approximate price the dealer paid the manufacturer for a new vehicle? Responses True market value True market value Invoice price Invoice price MSRP MSRP Out-the-door price Out-the-door price

Answer 1

Invoice Price

Step-by-step explanation:

Definition of an invoice price - The invoice price is the actual price that the end-customer retailer pays to the manufacturer or distributor for a product.

When a dealer buys vehicles from a manufacturer - they will be presented with a piece of paper or a digital copy of the bill that has the price of all vehicles bought on it. The bill is also known as the invoice.

Eliminating other answers -

MSRP is the manufacturer's recommended price for dealers to sell goods to consumers

Out-the-door price is the final price that consumers will be paying after paying the MSRP and any other additional charges the dealer may place on the vehicle

True Market Value - The price number typically reflects regional or national average selling prices for a particular model of a vehicle when talking about auto sales that consumers are willing to pay to dealers.