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What Does MSRP Mean?

When shopping for a new vehicle, you often see the MSRP listed and you might be wondering what does MSRP mean? MSRP stands for Manufacturer Suggested Retail Price. The MSRP is a number that the manufacturer recommends Henderson dealerships to sell the vehicle at, also known as the list price. The list price is determined based on a number of factors, from the vehicle’s popularity in the current market to the cost of materials that go into building it. Today at Findlay Acura, we will learn more about what MSRP is, how it’s determined, and how to utilize it to get a fair price on your next car.

What is MSRP?

Now that you know what MSRP stands for, you might be wondering, what is MSRP? The Manufacturer Suggested Retail Price or MSRP is the suggested price for dealers to list and sell a vehicle at. When shopping for a new vehicle, most Las Vegas shoppers will see the MSRP listed and likely other prices listed as well. Invoice price, transaction price, and many other terms will be used in conjunction with the MSRP but they are all terms describing the value of the MSRP to the dealership or buyer. Let’s take a closer look at what an MSRP is:

  • Since the MSRP is determined by the manufacturer, all models that are the same share the same MSRP between all dealerships.
  • While MSRP will be the same for each vehicle model, not every vehicle the manufacturer sells will have the same MSRP. For example, the MSRP for sedans will be different than the MSRP for SUVs.
  • The MSRP is typically listed on the manufacturer or dealer’s website and can be used to negotiate the price when buying a new vehicle.

Determining the MSRP

What is used to determine the MSRP? The manufacturer uses different pieces of information to determine the MSRP. Manufacturing costs, market data, and even the average markups by North Las Vegas dealerships are used when determining what the MSRP is. Learn more about how the MSRP is set:

  • Typically the MSRP is a vehicle’s base price at its entry-level configuration with no additional features added.
  • When adding features or going to higher trim levels, this will typically raise the vehicle’s cost.
  • Even though the MSRP is what the manufacturer recommends dealerships to sell vehicles at, dealerships can choose to sell the vehicle at a different price.
  • The price the dealership pays for a vehicle or the invoice price can determine whether the dealer will lower or raise the price for Mesquite shoppers.
  • Popular vehicles will likely be sold closer to the MSRP and less popular vehicles may be sold lower than MSRP.

Using MSRP to Get a Fair Price

While the manufacturer recommends the vehicle to be listed at MSRP, it is not the price you have to pay. Sometimes the price of what the dealer paid for a vehicle and the MSRP has a several thousand dollar difference. This means sometimes the dealership can still make a profit on a vehicle even if the vehicle is purchased at a price below MSRP. Check out some of our car buying tips below: 

  • Use other research tools to determine what other Henderson shoppers are paying for a similar vehicle on sites like Kelley Blue Book, Edmunds, or
  • Begin negotiating below the MSRP but keep in mind that any additional features may increase the cost.
  • While some dealerships may offer to show you a vehicle’s invoice price, they are not obligated to do so. Invoice price can also help you determine where to begin negotiating a vehicle’s price.
  • Cross-shop at multiple dealerships to find a vehicle with the price you are comfortable with paying.
  • You can also negotiate the MSRP on a lease as well to determine your monthly payments.

Stop in at Findlay Acura Today!

Fair price means a price that is satisfactory for both you and the dealership. When you purchase a vehicle at a fair price, you go home knowing you got a good deal while the dealership has still made a profit. If you’re still wondering, what does MSRP mean? Visit the Findlay Acura finance department to learn more and we’ll help you get a great price on your next vehicle. As always, please reach out with any questions.

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