What is MSRP?

When you’re looking at a car dealership’s new inventory, you’ve seen the letters MSRP, but a lot of Louisville, KY drivers ask us, “What is MSRP?”. MSRP stands for Manufacturer Suggested Retail Price, and it comes directly from the company to the dealership. This number is determined by production costs, the market, and other factors. Don Franklin Auto has a brief guide to MSRP meaning, what MSRP vs. invoice means, and more pertaining to the question, “What is MSRP?” below.

What is MSRP?: Some Things to Consider 

Here are a few facts to know about MSRP: 

• Because the MSRP is determined by the car’s manufacturer, it will be consistent across dealerships. 
• A car usually comes in multiple trims or with multiple special packages. These cost money, so a car won’t have just one MSRP. 
• Having trouble figuring out how much a car costs? The manufacturer’s website always has their MSRP listed. 

MSRP Meaning: How MSRP is Set 

So, how is the MSRP set? Here are the factors that contribute to the MSRP meaning:

• Base MSRP: On a dealership’s website, you’ll often see the base MSRP proudly displayed. This is for the base configuration, without any add-ons or special packages.
• MSRP vs. Invoice Price: The invoice price is what the dealership paid for the vehicle, and knowing this difference can help you in negotiating a deal on your vehicle. 
• The dealership is not obligated to use the base MSRP. The dealership can charge more or less than the MSRP for the car depending upon their costs. 
• Demand also can change the MSRP. High-demand cars will likely be close to the MSRP, while the less popular models will have their price lowered to attract customers. 

How to Get a Good Price 

Knowing about MSRP vs. Invoice price and other things related to the MSRP meaning can help you negotiate a better price. Here are some more tips: 

• Use sites like Kelley Blue Book, Cars.com, and Edmunds to see what other people in the Russel Springs, KY and Somerset, KY area have paid for your vehicle. 
• Not all dealerships will tell you the invoice price, but it’s worth asking or trying to find out. 
• The MSRP meaning is still a factor in leasing vehicles. When negotiating your lease, knowing the MSRP can help you argue for lower monthly costs. .

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Lease and Finance with Don Franklin Auto

At Don Franklin Auto, we’re happy to help Lexington drivers understand more about the car-buying process. Our new vehicle specials also provide great savings on popular vehicles. Please contact us today with any questions about car prices and more!