What Does MSRP Mean?

If you’re shopping for a new vehicle, you might’ve noticed that all new vehicles have what’s called an MSRP. What is MSRP? It’s an acronym for manufacturer-suggested retail price, and it’s exactly what it sounds like – the price an automaker suggests that dealerships sell a vehicle for, which is called the list price. The list price can be higher or lower than the MSRP depending on the popularity and availability of a vehicle in a specific area like Graham. Read on to learn more about the MSRP meaning and the difference between a vehicle’s MSRP vs. invoice price. Feel free to contact us for more information about vehicle pricing if you still have questions after reading this brief buyer’s guide. 

More about MSRPs

So, what is MSRP? As mentioned, the MSRP is the price the automaker suggests dealerships sell the car for, whereas the price dealerships charge Graham drivers is known as the list price. Here are a few more things you should know about MSRPs:

• A vehicle model will have the same MSRP across all dealerships as the manufacturer sets the MSRP.
• MSRPs differ across different vehicle types and models.
• Graham car buyers can find MSRP information on a manufacturer’s or dealer’s website.

There’s another price point you should know about, and that’s the invoice price. The difference between the MSRP and invoice price is that the invoice price is what the dealership paid the manufacturer for the vehicle. Knowing the list price and MSRP vs. invoice price gives you more bargaining power during price negotiations.

Negotiating a Fair Price?

While the MSRP is the price the manufacturer sets, it’s not written in stone, meaning it may not be the price you have to pay for the vehicle. Here are some tips to help you get the best possible price the next time you’re negotiating:

• Due your due diligence to find out what others in the Jacksboro and Weatherford area have paid for the vehicle using tools like KBB and Cars.com.
• Start your negotiations below the MSRP. Remember that any features you add to your vehicle will bring the price up. 
• You can ask the dealer for the invoice price and use it as leverage in your negotiations, but the dealer doesn’t have to share that information with you.
• Shop around until you find the dealership that offers the best price on the vehicle you want.

Learn More About MSRP Meaning with Bayer Graham! 

Now that you’ve got an answer to the question, “What is MSRP?”, and you’ve learned about the difference between the MSRP and invoice price, you can reach out to our Wichita Falls-area finance center with any questions you still have about vehicle pricing. And if you already know what vehicle you want (and the amount you should pay for it), apply for financing online and get approved for your next vehicle in minutes!