What Does MSRP Mean?

salesman passing over new car key

If you’ve been shopping for a new vehicle in the Monticello, MN area, you’ve more than likely come across the acronym, “MSRP.” But, what is MSRP? What does MSRP mean? MSRP stands for Manufacturer Suggested Retail Price and it’s the figure that the manufacturer recommends Elk River dealership sell a vehicle at. Also known as the list price, the manufacturer determines this price based on market information regarding the vehicle’s popularity, the materials it’s made of, and much more. Learn more about the MSRP meaning and the difference between MSRP vs. invoice price with Cornerstone Auto.

What is MSRP for Cars?

What does MSRP mean? As mentioned previously, the MSRP is the recommended price that dealers can sell a vehicle at. Let’s explore what an MSRP meaning is in-depth, below:

  • A specific model will have the same MSRP across all dealerships as this is the price set by the manufacturer.
  • Even though the MSRP is identical for each model, it won’t be the same for every vehicle sold by the manufacturer. For example, SUVs made by a certain manufacturer will have different MSRPs than sedans or trucks.
  • You can find a vehicle’s MSRP on the manufacturer’s website or the dealer’s website. The MSRP can be used when negotiating the price of your new vehicle.

How is the MSRP Determined?

  • The MSRP is the vehicle’s base price at its entry-level configuration. Meaning, it does not include the extra costs of additional features or accessories.
  • If you opt for upgrades like leather upholstery or a moonroof, this will raise the vehicle’s overall cost.
  • While the MSRP is recommended by the manufacturer, this does not mean that the dealership will choose to sell the vehicle at this price.
  • Depending on the invoice price for the vehicle–the price the dealership pays for the vehicle–the dealer may decide to raise or lower the price of the car for Anoka, MN shoppers.
  • A car’s popularity will also play a large role in how much it costs. A model that’s in high demand will likely be sold closer to the MSRP, while a less popular model may be set at a discounted price.

MSRP vs. Invoice Price: What’s the Difference?

While car shopping, you may hear the term “invoice price,” but what is the difference between an MSRP vs. invoice price?

  • Invoice price, also known as the dealer price, refers to the amount the dealership pays the manufacturer for the vehicle.
  • MSRP, or the “sticker price,” is the amount you’ll be paying the dealer.

It’s important to remember that the MSRP is “suggested,” so there’s usually room to negotiate. Knowing a car’s MSRP vs. invoice price will help you determine what a fair negotiating price should be.

How Do You Get a Fair Price?

Although the MSRP is the price recommended by the manufacturer, it’s not necessarily the price that Ramsey, MN shoppers have to pay for a vehicle. Here’s how you can go about getting a fair price on your next automobile:

  • Do your research. Check sites like Kelley Blue Book, Edmunds, or Cars.com to find out what other Elk River drivers have paid for the same model.
  • Start negotiating below the MSRP and work your way up. You’ll want to keep in mind any additional features you want and what they may cost.
  • Ask to see the invoice price. Some dealers may let you see this figure, but they’re not obligated to. The invoice price can help you determine where you should start your price negotiation.
  • Shop around at multiple dealerships. Visiting multiple locations can help you find one that will offer a price you’re happy with.

If you intend on leasing your next vehicle, you can still negotiate the MSRP since the price that you and the dealer agree on will determine your monthly payment costs.

Find Out More About the MSRP Meaning with Cornerstone Auto!

Now that you know the answer to “what is MSRP for cars” and the difference between the MSRP vs. invoice price, reach out to our finance center experts to initiate the car-buying process. We’ll help you secure a great price on your next vehicle when you apply for financing. When you shop with Cornerstone Auto, you can get the car you want at a price that accommodates your budget!

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