What Does MSRP Mean?

When looking at new vehicles, the price will also have “MSRP” attached to it. MSRP meansManufacturer Suggested Retail Price. It resembles the price point that the manufacturer recommends for a South Elgin dealership that sells that particular vehicle. MSRP is also known as the list price. This number is determined using several factors such as popularity, material types and more that will be discussed later. Keep reading for more information!

MSRP Definition

Now that you know what MSRP stands for, you might be curious as to what MSRP is. In short, it’s the suggested price for a vehicle that dealerships should sell at. Here are some more tidbits about MSRP: 

• A specific model will share the same MSRP across all dealerships since the price is set by the manufacturer.
• Remember that MSRP varies by model. The price point for a sedan will be different than that of an SUV. 
• You’ll find a vehicle’s MSRP on the manufacturer’s website or the dealer’s website. You can use it to your advantage when negotiating the price on a new vehicle you’re interested in. 

The MSRP only takes into account the vehicle itself, not external factors such as taxes, tag and title. But, trim level and popularity tend to have a direct impact on MSRPs. For example, a higher trim or more popular vehicle will probably have a higher MSRP. Remember that the dealership may opt to sell a car at a different price other than the MSRP as well. 

MSRP vs. Invoice Price

When car shopping in Schaumburg, you may hear the phrase “MSRP vs invoice price”. Not sure what the difference is? To put it simply, MSRP is the “sticker price” and invoice price is the total amount you’ll pay the dealership for the vehicle. This total price can include additional line items such as taxes, tag, title, warranty and more. Keep in mind that the MSRP is only a suggested price, so there’s flexibility for negotiation. Therefore, it’s important to know the MSRP of the vehicle you’re interested in. 

Shop with Biggers Mazda! 

Now that you know about MSRP, it’s time to shop for that new car you want! Take a look at our new car inventory and our new vehicle specials so you can come to the dealership with confidence. Our finance team will be happy to help you through the purchasing process so you can drive off the lot with your new car!