What Does MSRP Mean?

Signing Finance Documents for Car

 

If you’ve been shopping around for a new vehicle in the Blacksburg, SC area, you’re likely wondering, “What is MSRP?” MSRP stands for Manufacturer Suggested Retail Price and is a number that the manufacturer recommends a Shelby dealership sells a vehicle at. Otherwise, known as the list price, the manufacturer sets this price based on market information such as the vehicle’s popularity, the materials that go into building the vehicle, and more. Read on to learn more about the MSRP meaning and the difference between MSRP vs. invoice price with the finance experts at Renaldo Honda.

 

 

What is MSRP?

Want more insight into the MSRP meaning? The MSRP is the price at which dealers are recommended to sell a vehicle. Here’s some more information about MSRP so you can be well-informed when car shopping in Gaffney, SC:

  • Specific models like the Honda Accord will have the same MSRP across all dealerships, as this price is set by the manufacturer.
  • While particular models will share the same MSRP, it is not the same for every vehicle sold by the manufacturer. For example, an SUV like the Honda CR-V will have a different MSRP than a pickup truck like the Ridgeline.
  • You can find a vehicle’s MSRP on the manufacturer’s website or the dealer’s website, as well as use this when negotiating the price of the new vehicle.

How is the MSRP Determined?

  • The MSRP sets a vehicle’s base price at its entry-level configuration, and this does not include available upgrades.
  • When you opt for additional features or higher trim levels, this will raise the cost of the vehicle.
  • Even though the MSRP is recommended by the manufacturer, the dealership doesn’t necessarily have to sell the vehicle at that price.
  • Depending on the invoice price for the vehicle – the price the dealership paid for the vehicle – the dealer may increase or decrease the price of the car for Kings Mountain shoppers.
  • A vehicle’s popularity will impact how much it costs. A vehicle that’s highly sought after will likely be sold closer to the MSRP, while a less popular model may be set at a discount.

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

Shoppers often want to know what the difference is between MSRP vs. invoice price. The Invoice price (or dealer price) is the amount a dealer pays the manufacturer for a vehicle; the MSRP is the “sticker price” or the amount you’ll be paying the dealer. Remember that the MSRP is “suggested,” so you do have the ability to negotiate.

How Do You Get a Fair Price on a Car?

While the MSRP is the price the manufacturer recommends for the vehicle, it is not the price you have to pay for a vehicle. Here are some ways you can get a fair price on a car:

  • Do Your Research–Find out what other Shelby drivers have paid for the same model by using sites like Kelley Blue Book, Edmunds, or Cars.com.
  • Start Negotiating Below the MSRP–Begin negotiating below the MSRP and work your way up from there–be sure 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 view the car’s invoice price if you ask, but they are not obligated to. The invoice price can help you determine where you should start your price negotiation.
  • Shop Around at Multiple Dealerships–Make your way around Blacksburg, SC dealerships until you find the one that can get you a price you are happy with.

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

Learn More About MSRP with Renaldo Honda

Now that you know the MSRP meaning and the difference between MSRP vs. invoice price, reach out to our finance center to initiate the car-buying process. We’ll work with you to help secure the best price for the vehicle you want. We look forward to working with you!

 

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