What Does the Jargon at Dealerships Mean?

By: khalid r mustaffa

Unless you are someone directly involved with the car industry, or an acronym wizard, then you are to be confused when you hear all the different acronym-ed jargon words at the car dealerships. Statements such as Invoice price, base price, furthermore, acronyms such as MSPR, ADP, and ADM. It came to my attention that such an article is important to familiarize you with the terms and acronyms.

Understanding the brief explanation of each term would better prepare you for your next visit to the dealership. It will also allow you to keep the overcharges in your bank account, rather than depositing it into the dealerships bank account.


If you are on your way to the dealership, you are about to encounter the term Invoice Price numerous times. Invoice price is the price the manufacturer charges the dealerships for a given car. Hence, this is usually higher than the price the dealership actually paid for the car or truck. The manufacturers is no different from the dealerships, it runs special promotions and offers such as different rebates, allowances, discounts and incentive awards. The invoice price also includes the shipping or delivery charges. In other words, never pay for transportation at the dealerships, because it is pure overcharge.

Another term that you are to encounter is Base Price. This is the advertised price for a car equipped with standard factory equipment and warranty. In other words, this price is before any any of the additional options "good stuff" are added to the car. Bare in mind, that it is a federal law to provide consumers with this price. As a matter of fact, it should be on the Monroney sticker, or buyers guide.

There is also MRSP (Monroney Sticker Price.) This should shaw the base price, the options installed
on this particular car inventory, with the suggested retail price. Remember, this includes the transportation charge. Last but not least, ADP (additional dealer profit)and ADM (additional dealer markup). Not much to be said about those, but this is where your bargaining should be targeted towards.
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