What Does MSRP Mean?

If you’re in the market for a new vehicle, then you’ve probably come across the acronym “MSRP.” What is MSRP? MSRP stands for Manufacturer Suggested Retail Price and is a number that the manufacturer recommends Lake Park dealerships sell a vehicle at. Otherwise known as the list price, the manufacturer sets this price based on a few factors that include: market information on the vehicle’s popularity, the materials used to build the vehicle, and more. Delve into MSRP meaning and the difference between MSRP vs. invoice price with the Earl Stewart Toyota team.

Looking to know more about the MSRP meaning? The MSRP is the recommended price at which dealerships should sell a vehicle. Here are some further details on MSRP so you can have all the information you need when car shopping in Palm Beach County:

• A specific model will have the same MSRP across all dealerships since this is the price set by the manufacturer. 
• Even if the MSRP is identical for each vehicle of the same model, this price will not be the same for every vehicle sold by the manufacturer. For example, SUVs will have a different MSRP than a sedan or a truck.
• West Palm Beach car shoppers can locate the MSRP on the manufacturer’s website or the dealer’s website. They can use the MSRP when negotiating the price of their new vehicle. 

How do Dealerships Set the MSRP?

• A vehicle’s MSRP is set at its base price at its entry-level configuration without any additional features or accessories. 
• If you opt for additional features or higher trim levels, the cost of the vehicle will increase.
• Even though the manufacturer recommends the MSRP, this doesn’t mean that the dealership has to sell the vehicle at this price. 
• Depending on the vehicle’s invoice price—which is the price the dealership paid for the vehicle—the dealership may increase or decrease the price of the car. 
• Shoppers’ demands for a vehicle will play a large role in how much it costs. A model that’s popular among Lake Park drivers will be sold closer to the MSRP, while a less popular model will likely be set at a discount. 

What is the Difference Between MSRP vs. Invoice Price?

While car shopping, you may come across the team “invoice price,” but what’s the difference between MSRP vs. invoice price?

• Invoice price (or dealer price) is the amount a dealer pays the manufacturer 
• MSRP is the “sticker price,” i.e. the amount you’ll be paying the dealer

Remember, the MSRP is “suggested,” so you can typically negotiate on the amount. Knowing the MSRP vs. invoice price will help you gauge what a fair negotiating price will be.

How Do You Get a Fair Price?

While the MSRP is the vehicle price recommended by the manufacturer, it is not the price you have to pay for a vehicle. 

• Use sites such as Kelley Blue Book, Edmunds, or Cars.com to check what other Lake Park drivers have paid for the same model. 
• Start negotiating below the MSRP, then work your way up from there. You’ll need to keep in mind any additional features you want and what they may cost. 
• If you ask, some dealers may show the car’s invoice price. However, they are not obligated to do so. The invoice price can help you determine where you should start negotiating. 
• Shopping around at multiple dealerships will help you find the one that can get you a price that you want. 
• Even if you plan on leasing a vehicle, 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 from the Experts at Earl Stewart Toyota

Now that you know more about the MSRP meaning and the difference between MSRP vs. invoice price, please don’t hesitate to contact us if you have any more questions. We provide our customers with plenty of car buying tips so they can get behind the wheel of their favorite vehicle for a fair price!