What Does MSRP Mean?

Finance Paperwork with Glasses

Are you looking for a new vehicle and curious about the MSRP meaning? MSRP stands for Manufacturer Suggested Retail Price. This is the number that the manufacturer recommends for Breckenridge dealerships to sell a vehicle at. It’s also commonly referred to as the list price, and the manufacturer uses market information regarding the vehicle’s popularity, materials, and more to determine the price. Learn more about the MSRP meaning and the difference between MSRP vs. invoice with the help of Bayer Cadillac today! 



What is MSRP?

The MSRP meaning is the recommended price at which dealers should sell a vehicle. Learn more below so you can feel confident purchasing your next Graham or Weatherford vehicle! 

  • A particular model shares the same MSRP across all dealerships in the Abilene area, as the price is set by the manufacturer.
  • The MSRP is the same for each vehicle of the same model, but it’s different for every vehicle that the manufacturer sells. For example, SUVs will have a different MSRP than a sedan. 
  • Car buyers can find the MSRP on the manufacturer’s website or the dealer’s website, which is helpful when negotiating the price of a new vehicle. 

How is the MSRP Set?

  • The MSRP sets a vehicle’s base price at its entry-level configuration without additional features or accessories. 
  • Any additional features and higher trim levels will increase the price of the vehicle accordingly. 
  • The manufacturer recommends the MSRP, but it’s not necessarily the price that the dealership will choose to sell the vehicle at. 
  • Depending on the invoice price for the vehicle – when comparing the MSRP vs. invoice price, the invoice price is the cost the dealership paid for the vehicle – the dealer may raise or lower the price of the car for Graham shoppers.
  • Demand is also crucial, a popular model will most likely be sold closer to the MSRP, while a less popular model may be set at a discount. 

MSRP vs. Invoice Price

As we mentioned above, the “invoice price” while car shopping, but how do you differentiate between MSRP vs. invoice price?

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

While MSRP is “suggested” that means there’s typically room to negotiate. If you know the MSRP vs. invoice price this can help you determine what a fair negotiating price will be.

Explore More Details About the MSRP Meaning with Bayer Cadillac! 

Now that you know the MSRP meaning and the difference between MSRP vs. invoice price, get in touch with our finance center to get the car-buying process started! Our team is happy to help you get a great price on your next vehicle when you apply for financing! Get the car you need for your Breckenridge lifestyle when you shop with Bayer Cadillac!


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