Dealer Price vs Market Price What's the Difference

Dealer price and market price sound similar—but in the U.S. car market they're not the same. One is what the dealer asks; the other is what informed buyers are paying. Here's the difference and why it matters.

TL;DR Dealer price = what the dealer sets (MSRP, invoice, or their own number). Market price = what similar cars are actually listed and selling for in your area. Fair = market, not dealer. See market price for any car at autopremo.com.

What "Dealer Price" Usually Means

MSRP (Manufacturer's Suggested Retail Price)

• The number on the window sticker.
• Set by the manufacturer, not the dealer.
• Includes base price, options, and destination charge.
• A suggestion—dealers can sell above or below it.

MSRP is a starting point, not a ceiling or a floor. Paying "at MSRP" isn't automatically fair; paying "below MSRP" isn't automatically a steal. It depends on incentives and market.

Invoice (dealer cost)

• What the dealer reports paying the manufacturer.
• Often below MSRP (typical spread 5–10%).
• Does not include holdback, incentives, or volume bonuses—so the dealer's real cost is often lower than "invoice."

Dealers love to say "we're at invoice" or "below invoice." That can still leave room for profit. Invoice is not "fair"—it's one number in a larger picture.

Dealer asking price

• The price the dealer puts on the car (new or used).
• Can be at, above, or below MSRP (new) or above/below market (used).
• Often negotiable, especially on used and non-hot new models.

The asking price is an offer, not a fact. Your job is to compare it to market price.

Check market price for any car at autopremo.com.

What "Market Price" Means

Market price = what similar vehicles are actually listed and selling for in your area—same year, make, model, trim, and similar mileage (for used).

• Not MSRP or invoice.
• Not what one dealer says.
• Yes the range you see when you look at 5–10 comparable listings (or sales data) in your region.

In the U.S., market price varies by:

• Region (supply, demand, weather, incentives)
• Season (e.g., convertibles in spring, trucks in fall)
• Trim, options, mileage (for used)
• How motivated sellers are

A "fair" price is one that lines up with market—not with what the dealer calls "dealer price."

Why the Difference Matters

• Dealer price can be above market. Dealers may list used cars high and "discount" to market so you feel you got a deal. Or they may add market adjustments on new cars. If you don't know market, you don't know if you're overpaying.
• Market price is your reference. When you know the range for your exact car in your area, you know if the dealer's number is fair, high, or low. You negotiate from fact, not feeling.

Get market price and fair value at autopremo.com.

How to Use This When Buying

New cars

• Dealer price: Often MSRP or MSRP minus incentives. Sometimes above MSRP (market adjustment).
• Market: What informed buyers are paying—often at or below MSRP after incentives, with or without a dealer discount. Use brand incentives + comparable dealer quotes to see "market."
• Fair: At or below market. If the dealer is above MSRP with no rare justification, that's not fair.

Used cars

• Dealer price: The sticker on the car. Can be anywhere.
• Market: Same-year, same-model, same-trim comps within 100 miles. Median and range.
• Fair: Within 5% of median for similar mileage and condition. Above 10% = overpriced unless there's clear extra value.

See market comps for new and used at autopremo.com.

Quick Reference

TermMeaningUse it for MSRPManufacturer's suggested priceStarting point for new cars InvoiceDealer's reported costContext only—not "fair" Dealer asking priceWhat the dealer wantsCompare to market Market priceWhat similar cars are listed/selling forYour reference for "fair" Fair = market, not dealer.

What Dealers Say vs What to Do

• "We're at invoice." So what? Compare to market. Use autopremo.com to see what you should pay.
• "This is below market." Verify. Pull comps. If it's truly below market, it's a strong deal—but confirm.
• "We can't go lower; this is our best price." Compare to market. If they're above market, walk or get a written offer and take it elsewhere.

Validate any dealer price against market at autopremo.com.

Real Example: Dealer Price vs Market Price

Scenario: Dealer lists a 2022 Honda Accord EX with 28,000 miles for $27,995. They say "this is our best price."

• Dealer price: $27,995 (asking price).
• Market price: You run comps on autopremo.com. Similar 2022 Accord EX with 25k–30k miles in your area: $25,200, $26,100, $26,800, $27,400, $28,100. Median ≈ $26,800.
• Verdict: Dealer price is about 4.5% above median. Not wildly overpriced, but not "best" in the sense of "at market." You can negotiate to median or slightly below, or walk if they won't move.

Without knowing market price, you'd have no way to judge "best price." With it, you decide from fact.

Your Dealer vs Market Checklist

Before you agree to any dealer price:

• [ ] Exact vehicle (year, make, model, trim, mileage) identified
• [ ] Market price researched—same car, same area, 5–10 comps
• [ ] Median and range known
• [ ] Dealer asking price compared to median (within 5% = fair; above 10% = overpriced)
• [ ] Out-the-door number requested (price + fees + tax)

Get market price for any car at autopremo.com.

Bottom Line

Dealer price = what the dealer sets (MSRP, invoice, or their own number). Market price = what similar cars are actually listed and selling for in your area. Fair means paying in line with market, not with the dealer's label. Use autopremo.com to see market price for any car, then negotiate from there.