What is MSRP?

If you’re shopping for a new car, it’s important to get a good grasp on the MSRP meaning. So, what is MSRP? MSRP stands for Manufacturer Suggested Retail Price, or the price that the manufacturer recommends. Also known as “list price”, the MSRP is determined by many factors: market information about the vehicle’s popularity, the cost of materials, and others. 

Find out how you can use the difference between MSRP vs. invoice to get an unbeatable price in the Omaha or Bellevue area.

MSRP Meaning

Knowing the MSRP meaning will get you one step closer toward your next bargain. The MSRP is suggested by the manufacturer, but it’s not the final price. What does this mean for you?

• A particular model will share the same MSRP across all dealerships, as the price is set by the manufacturer. This price refers to the base model with no extra features or accessories.
• Car shoppers can find the MSRP on the manufacturer’s website or the dealer’s website, and they can use it when negotiating the price of their new vehicle. 
• Depending on the invoice price, the dealership may raise or lower the price of the vehicle for Papillion shoppers. This is also influenced by the demand for that particular vehicle.

MSRP vs. Invoice Price

We mentioned “invoice price” above, and you’ll likely see this term as you shop around town. So, what’s the difference between MSRP vs. invoice price?

• Invoice price (or dealer price) refers to the amount a dealer pays the manufacturer to stock the car. This can vary.
• MSRP is the suggested amount you’ll be paying the dealer. Because there is a difference between the MSRP and invoice price, this opens up room for you to negotiate.

How Do I Get a Fair Price?

Knowing the difference between the list price and invoice price creates the opportunity to save big at the dealership, but you’ll need to do a little research.

• Use sites like Kelley Blue Book, Edmunds, or Cars.com to see what other drivers have paid for the same model in your location.
• When you’re ready to buy, start negotiating below the MSRP and work your way up from there. Keep in mind that extra features and accessories are not included in the MSRP, so you’ll need to budget that in if you want them.
• You can ask for the invoice price if you’d like, but the dealership is not obligated to show you. If you do get this information, it can help you determine where to start your price negotiations.
• While this advice works well for financed vehicles, you can also use it to negotiate for your lease. The MSRP will factor into your monthly payment costs. 

Learn More with Edwards Chevrolet Buick GMC

Now you know what is MSRP and how to negotiate, so why not put this plan into action? Start shopping with Edwards Chevrolet Buick GMC in Council Bluffs, and get a great price on a great car. Contact us with any questions and feel free to buy from home with our Shop Click Drive tool.