What Does MSRP Mean?

When you’re shopping for a new car at Aristocrat Motors Topeka, you might notice the term “MSRP” on the listings. So, what is MSRP? MSRP stands for Manufacturer Suggested Retail Price, also known as the “list price”. It’s the price that the manufacturer recommends to the dealership, based on market research and the cost of production. How can you use this information to your advantage? Dive deeper into the MSRP meaning with Aristocrat Motors Topeka, and learn more car buying tips from our experts below!

What is MSRP?

Knowing what is an MSRP can help you navigate the car shopping experience like a pro. So, what should you know as a consumer in Topeka or Kansas City?

• Because the MSRP is set by the manufacturer, it is consistent across all dealerships. A new BMW X5 will have the same MSRP in Topeka or Manhattan.
• Each vehicle has its own unique MSRP. For example, a new VW Jetta has a different MSRP than a new VW Atlas.
• If you can’t find the MSRP listed at the dealership, the MSRP can always be found on the manufacturer’s website. 

How is the MSRP Set?

• The MSRP is set for the entry-level configuration without additional features or accessories. Any extra features or higher trims will raise the price.
• The MSRP is recommended by the manufacturer, but it’s not set in stone. The dealership can make adjustments as needed.
• The dealership may raise or lower the price of the vehicle based on its invoice price, not necessarily the MSRP.
• The car’s popularity also factors into the pricing. A more popular model might be sold at or even above the MSRP, while a less popular model might receive a discount.

MSRP vs. Invoice Price

Now you know the MSRP meaning, what’s the difference between MSRP vs. invoice price? 

• The invoice price (or dealer price) is the price that the dealership paid the manufacturer. Or alternatively, it is the price on the dealership’s invoice. 
• The MSRP is the “sticker price”, or the amount that you would pay the dealer. This is a suggested price.

How Do I Get a Fair Price?

Because the MSRP is not set in stone, you have some flexibility. Here is an overview of how to negotiate using your knowledge of the MSRP vs. invoice price. 

• Research: Look up the MSRP for the car you want. Check sites like Kelley Blue Book, Edmunds, or Cars.com to see what drivers around the area have paid for the same model.
• Negotiate: Start your negotiation below the MSRP, and work your way up from there. Be sure to factor in any additional features you might want, which will likely drive up the price above the MSRP.
• Invoice: Not all dealerships will share the invoice price of the vehicle, but it doesn’t hurt to ask. If you can find the invoice price, this will help you negotiate more strategically.

What if you want to lease your car instead? You can still use this information to bring down your monthly cost. That’s because your monthly costs are influenced by the MSRP, so you can still use this information to negotiate.

Start Shopping Today at Aristocrat Motors Topeka

We’ve gone through the MSRP meaning and the difference between MSRP vs. invoice, so are you ready to start your shopping experience? Stop by Aristocrat Motors Topeka to start perusing our new inventory, or contact us with any questions.