What Does MSRP Mean?

Whether you’re shopping around for a new or used vehicle, you may be wondering, “What is MSRP?” MSRP stands for Manufacturer Suggested Retail Price, and it’s the number that the manufacturer recommends that Minnetonka dealerships sell a vehicle at. The MSRP is also known as the list price, which is determined based on market information on the vehicle’s popularity, the materials that go into building it, and so much more. Learn the MSRP meaning and the difference between MSRP vs. invoice price with the finance experts at Morrie's Auto Group.

What Is MSRP?

The MSRP is what’s recommended that Minneapolis dealerships sell the vehicle at. Let’s explore the MSRP meaning, so you’re more confident about it before shopping around St. Paul for your next vehicle.

• A particular model can share the same MSRP across all dealerships since the price is set by the manufacturer.
• The MSRP may be the same for each vehicle of the same model, but it won’t be the same for every vehicle the manufacturer sells. For instance, SUVs will not have the same MSRP as pickup trucks or sedans.
• The MSRP is available on the manufacturer’s or dealer’s website, and it can be used when negotiating the price of their new vehicle.

How Is the MSRP Set?

• The vehicle’s base price is set at its entry-level configuration without additional features or accessories.
• Additional features and higher trim levels raise the vehicle’s price accordingly.
• The MSRP may be the recommended manufacturer price, but it’s not always the price that the dealership will decide to sell the car at.
• Depending on the vehicle’s invoice price, what the dealer paid for the vehicle, the dealership could raise or lower the price of the vehicle.
• Demand also plays a significant role in the vehicle’s cost. Popular vehicles tend to get sold closer to the MSRP than less popular models.

MSRP vs. Invoice Price

Many Minnetonka shoppers have heard the term “invoice price” while shopping around for a car. How does MSRP vs. invoice price compare?

• Invoice price (or dealer price) is the amount that the dealer paid the manufacturer for the car.
• MSRP is the “sticker price,” which is the amount that you will pay the dealership.

Remember, the MSRP is just a “suggested” price, which means there’s always room to negotiate that price. Knowing the MSRP vs. invoice price helps you determine what a fair negotiating price would be.

How Do I Get a Fair Price?

While the MSRP is the manufacturer’s recommended price for the vehicle, it’s not always the price car shoppers will pay. Below are some tips to getting a fair price on your next vehicle:

• Do research on the vehicle you’re interested in on sites like Kelley Blue Book, Edmunds, or Cars.com.
• When negotiating your price, start below the MSRP and work your way up, but keep in mind any additional features you want in your next vehicle and what they would cost.
• Some dealerships allow shoppers to see the vehicle’s invoice price; however, they are not obligated to do so. The invoice price helps determine where to start with your negotiation.
• Visit multiple dealerships until you get the car you want at the best possible price.
• Even if you choose to lease your next vehicle, you can negotiate the MSRP since that determines your monthly payment costs.

Get Additional Financing Tips at Morrie's Auto Group!

After learning what MSRP is and the difference between MSRP vs. invoice, it’s time to visit our Minnetonka to find the new or used vehicle that’s going to enhance your overall driving experience. We’ll work with you one-on-one to help find the vehicle that’s right for you. Explore our vehicle specials and get pre-approved for financing right at home before visiting your nearest Morrie's Auto Group location. We can also answer additional questions like what’s the difference between moonroof and sunroof. Feel free to give us a call if you have any questions in the meantime.