Question

3 what is the dealer invoice price?

the price the dealer paid for the car

the price the dealer wants for the car

what the manufacturer suggests for a price

the sale price plus 5%

Explanation:

Define dealer invoice price

Using the Car Buying Process knowledge point

• The dealer invoice price is the initial price the manufacturer bills the dealership for a vehicle.
• This represents the base cost the dealer paid to acquire the car before any subsequent incentives, rebates, or holdbacks are applied.

Evaluate the given options

• Option 1: "The price the dealer paid for the car" directly matches the definition of the invoice price.
• Option 2: "The price the dealer wants for the car" refers to the retail asking price or sticker price.
• Option 3: "What the manufacturer suggests for a price" is the Manufacturer's Suggested Retail Price (MSRP).
• Option 4: "The sale price plus 5%" is an arbitrary calculation unrelated to standard pricing terminology.

Answer:

• (A) The price the dealer paid for the car (Correct answer)
• (B) The price the dealer wants for the car
• (C) What the manufacturer suggests for a price
• (D) The sale price plus 5%