What Does MSRP Mean?

Finance Paperwork with Glasses

 

If you’re looking for a new vehicle, you have likely wondered exactly what MSRP means on the price. MSRP stands for Manufacturer Suggested Retail Price, which is the price at which the manufacturer recommends vehicles at dealerships in North Bend are sold. The vehicle manufacturer will compile a price point they believe the vehicle is worth based on the build quality and how popular the vehicle is with the general public. Let’s go over more about MSRP and explain the differences between MSRP vs invoice price with the experts at North Bend Chevrolet!

What Exactly is MSRP?

So, what is MSRP? MSRP stands for manufacturer suggested retail price, which is what the manufacturer recommends the dealer sells the vehicle for. Let’s check out more about the MSRP so you know what to look for when buying a car around Bellevue!

  • Because the price is determined by the manufacturer, MSRP will be the same at all dealerships. However, some dealerships provide unique new vehicle specials to help you save even further.
  • Although the MSRP for each vehicle is the same for all models, the MSRP will be different for each type of vehicle. For example, a sedan will be priced differently than a truck or SUV.
  • When car buyers are looking at a vehicle, they can sometimes use the MSRP to negotiate with the dealership.

How Do Manufacturers Set the MSRP?

  • The MSRP is often set as the base price without any additional add ons or special features.
  • When you add more features to the vehicle or opt for a higher trim level, the overall price will increase.
  • Although the MSRP is a recommendation to dealerships of what price they believe it should be sold at, the dealership can ultimately choose the final selling price.
  • Because dealerships purchase vehicles from the manufacturer at different prices, you may see dealerships around the Snoqualmie area sell the same vehicle at different prices. 
  • Overall demand for vehicles is also an important consideration, as more popular vehicles are often marked up higher, while less popular models are sold at lower prices.

MSRP vs. Invoice Price: What’s the Difference?

One of the most common things about price that causes confusion for buyers is the difference between MSRP vs. Invoice Price.

  • The invoice price is also known as the dealer price and is what the dealer pays the manufacturer for the vehicle.
  • The MSRP, also called the “sticker price”, is the price the vehicle is sold to the consumer. 

It’s also important to note that the MSRP is not always the final price, and you can often negotiate with the dealer. It’s important to know the difference between the MSRP vs. invoice price when negotiating.

How To Get a Fair Price?

Although the MSRP is set by the manufacturer, it is only the suggested price, and there is room for negotiation.

  • Do some preliminary research on the model you want to buy on Cars.com, Edmunds, or Kelly Blue Book. This will help you get an idea of what price the vehicle is selling for around North Bend. 
  • When you begin negotiating with the dealership, always begin at less than the MSRP, and then go up from there. It is also important to remember which features you want to add to the vehicle, as the price will likely be above MSRP. 
  • Depending on the dealership, they may let you see what they paid for the car, which is the invoice price. This can help you make the decision on which figure to begin negotiating. 
  • To get the best deal, you should visit a few different dealerships until you find one with the best price.
  • Even if you want to lease the vehicle, it is still possible to negotiate with the dealership to get a better deal on your monthly payments.

Visit North Bend Chevrolet to Learn More About MSRP Meaning! 

After learning more about what is MSRP and what the difference is between MSRP vs. invoice price, come visit us at North Bend Chevrolet to check out our new vehicle inventory around Issaquah. You can also meet with our finance team to get the buying process started. Feel free to contact us if you have any questions.

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Main 855-682-1356 Sales 855-682-1356
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