The sticker price the consumer finds on the window of a car in the dealer showroom is loaded with essential information, but there is more to reaching a final price than just settling on the stocker's bottom line.

Paul Timoteo, president of Armada Data Corp. which operates the pricing and dealer referral service http://www.carcostcanada.com, suggests buyers would be well served by understanding the key elements of car pricing.

MSRP (manufacturer's suggested retail price) is the window sticker price and very few people actually pay it unless they are burning to own a truly hot-selling vehicle.

Dealer invoice price is what manufacturers or national distributors charge the dealer for the vehicle from the moment it is delivered. Most dealers typically begin paying interest charges on a prearranged credit line when the vehicle arrives on the lot.

Holdback typically is 2 to 2.5 per cent of a vehicle's invoice price and it represents an amount manufacturers pay dealers after the vehicle is sold as a way to offset interest charges and the cost of marketing and advertising. Timoteo says dealers rarely put this figure into play when negotiating a sale.

Factory-to-consumer incentives are offered directly to consumers from manufacturers. They range from cheap financing to cash back, but are rarely offered in combination. Buyers are usually required to choose one or the other.

Factory-to-dealer incentives are often called hidden rebates because they are not advertised. Manufacturers use them to encourage dealers to sell more vehicles without tarnishing the brand image with public "giveaways." In the business, they are referred to under a variety of names: marketing credits, trading dollars, factory cash, dealer cash, dealer bonuses, invoice credits and so on. Most dealers factor them into a deal when negotiating.

10 great deals available right now

Vehicle	Cash rebates or allowances................or	Finance rates..or	Lease rates	Notes
2004 BMW 745I sedan	$8,000	4.4% for up to 48 months	4.4% plus $3,000 lease cash for 24 or 36 months	BMW would like to clear out the last of the 2004 big Bimmrs before the new year. Lease cash acts as something of a lease residual subsidy.
2004 Buick Regal	$3,000	0% for up to 60 months	None	There is also a $1,000 GM Hot Button incentive on this car. The Regal is being phased out in favour of the 2005 Buick Allure.
2004 Chrysler PT Cruiser Limited Edition	$4,500 factory-to-dealer allowance	0% for up to 60 months plus $1,000 finance cash	0% for up to 60 months	The PT Cruiser is no longer the red-hot seller it once was.
2004 Dodge Ram ST 1500 4x4 short-box pickup	$3,500 factory-to-dealer allowance	0% for up to 60 months	1.9% for up to 36 months, 2.9% for 48 months	Year-end-sale of the remaining 2004 models.
2004 Ford Explorer XLT 4x4	$500 factory-to-dealer credit/$3,000 dealer cash/$1,000 customer offer	0% for up to 36 months and $1,000 finance cash	None	The cash rebates or allowances add up to a variety of cut-rate possible deals.
2004 Hyundai Elantra GL sedan	$2,000 trading dollars (factory incentive)	0% for up to 60 months	Nothing	There is very fierce competition in the entry-level part of the marketplace.
2004 Jeep Liberty Sport	$3,000 factory-to-dealer allowance	0% for up to 60 months	0% for up to 48 months	Time to move out those remaining 2004 models.
2004 Lexus GS300 sedan	$4,000 non-stackable trading dollars	2.9% for up to 60 months	2.9% for up to 60 months plus $1,500 lease assistance	Trading dollars are a factory-to-dealer incentive.
2004 Mazda6 GS 14	$2,000 trading dollars (factory incentive)	0% for up to four years	2.75% for up to three years and 3% for four years	No great deals on the hot-selling Mazda3 compact, but the slower-selling mid-size Mazda6 has attractive incentives.
2004 Nissan Pathfinder LE	$3,000 stackable trading dollars	None	6.3% for up to 48 months	Time to blow out the last of the 2004 Pathfinders to make way for a renovatd 2005 Pathfinder.

SOURCE: WWW.CARCOSTCANADA.COM