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Auto Vocab

TermDefinition
Destination Charge A fee added to the price of a new car to cover the cost of shipping the vehicle from the manufacturer to the dealer.
Delivery Charge The additional transportation cost to get the car to your location.
Incentives This is anything offered to car buyers, from the car manufacturer, to get them to buy the car.
Manufacturers Suggested Retail Price MRSP is the price the manufacturer is suggesting the vehicle be sold for. AKA: Sticker Price, Monroney, List Price, Sticker, or Retail Price.
Option Packages A package of extra options that the manufacturers will put together at a reduced price.
Private Party Value The average price the vehicle sells for when not being sold through a dealership.
Asking Price The price the seller of the car posts when advertising the car.
Allotment How many cars the dealership gets from the manufacturer in a given period of time. AKA: Dealer Allocation
Base Price The retail cost of the car before any options are added on.
Book Value The price the car typically sells for. This can be found through Kelley Blue Book, NADA guide, and other sources. AKA: Blue Book
Commission The amount of income the salesperson makes because they sell a vehicle.
Dealer Invoice Price The price the dealer pays to buy the car from the manufacturer.
Retail This is the price the dealer says the car is worth, and what you might pay if you don’t know how to negotiate when buying a car. AKA: List Price
Trade-In Value The average price the dealership will give you for your old car when you buy a new car through them.
Created by: lohrj
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