Tips on Buying Cars: msrp vs actual buy price, dodge neon, car places

Question
what up with the msrp, the invoice, and the actual price that you end up paying for a car?

for example most car places list the msrp but a dealer may have a totally different price on the vehicle. and that of course doesn't even include all of the money the dealer adds to it.

i guess my question is: can a dealer go over or under the msrp?


Answer
A MSRP is an acronym for Manufacturers suggested retail price (as i'm assuming you knew already).  The keyword in that is SUGGESTED.  A Dealer can go above or below depending on demand, when the 05 mustangs first came out they were selling for thousands above MSRP, and with the unpopularity of models like the dodge neon, you could grab one up for thousands under MSRP.  The invoice (what the dealer paid for the car) that they show at the dealership is (almost) never what they really paid (they are always out to make money, not break even).  It all depends on demand and location.  Where I live there are only a few dealerships (no competition), so prices are rediculously high (read: ripoff) most over or at MSRP... A more populated city south of here has prices 2-5 thousand less than here, and its only an hour away.  The MSRP is nothing more than a guideline, the "invoice" is more of a tool to make you think your getting a deal, and you end up paying whatever you can argue them down to (and that also depends on demand/location).  I hope this helps clear up your confusion.