What Does MSRP Stand For?

man on ipad, person on tablet

If you’ve been shopping for a new vehicle, you’ve undoubtedly stumbled upon the acronym MSRP behind the prices of many of them, but what is MSRP? MSRP stands for Manufacturer Suggested Retail Price which means that it is the price the manufacturer recommends a Lakewood Ranch dealership sells a vehicle at. MSRP is also known as the list price, and the manufacturer determines this price using market information on the materials that go into building the vehicle, how popular they expect the vehicle to be, and more. Learn more about where the MSRP comes from, how to use it to get a better deal, and what the difference between MSRP vs. invoice price is with the help of the Wilde Lexus Sarasota finance team

What is MSRP?

As we said, the MSRP is the price that manufacturers think dealers should sell a vehicle at. Learn all about the intricacies of MSRP so that you can shop for a new car near Venice with confidence!

  • A particular model will share the same MSRP across all dealerships, as the price is set by the manufacturer.
  • While the MSRP is the same for each vehicle of the same model, it won’t be the same for every vehicle the manufacturer sells. For instance, SUVs will have a different MSRP than a sedan or a truck. 
  • 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. 

How is the MSRP Set?

There are many factors that go into setting an MSRP including the cost of materials, the expected popularity of the vehicle, and the invoice price of the vehicle. Here are some more facts about how an MSRP is set: 

  • The MSRP sets a vehicle’s base price at its entry-level configuration without additional features or accessories. 
  • Additional features and higher trim levels will raise the cost of the vehicle accordingly. 
  • While the MSRP is recommended by the manufacturer, it’s not necessarily the price the dealership will choose to sell the vehicle at. 
  • Depending on the invoice price for the vehicle – the price the dealership paid for the vehicle – the dealer may raise or lower the price of the car for Bradenton shoppers.
  • Demand also plays a role in how much a vehicle costs. A popular model will most likely be sold closer to the MSRP, while a less popular model may be set at a discount. 
man on calculator, man at desk, person on computer

MSRP vs. Invoice Price

If you have heard the term “invoice price” you may be curious about how the invoice price differs from the MSRP. Well, the key difference is that the MSRP is how much manufacturers expect customers to pay for the vehicle, and the invoice price is how much the dealership actually pays the manufacturer for the vehicle

The invoice price is usually lower than the MSRP so that the dealership can make a profit when they sell the vehicle. However, the MSRP is only suggested, so the dealership may sell the vehicle for less than the MSRP while still making a profit. You can use this fact to negotiate a better price. 

How Can I Negotiate My Car’s Price?

Just because the MSRP is the price the manufacturer recommends, that doesn’t mean that’s the price you have to pay. You can do the following to help you negotiate a better price:

  • Do your research by checking what other Sarasota drivers have paid for the same model on sites like Kelley Blue Book, Edmunds, or Cars.com.
  • Start your negotiation below the MSRP, and work your way up from there – keeping in mind any additional features you want and what they may cost. 
  • Some dealers may let you see a car’s invoice price if you ask, however they are not obligated to. The invoice price can help you determine where you should start your price negotiation.
  • Shop at multiple dealerships until you find the one that can get you a price you are happy with.
  • If you plan to lease you can still negotiate the MSRP since the price you and the dealer agree on will determine your monthly payment costs. 

You Can Trust Wilde Lexus Sarasota For Great Deals! 

Now that you know a bit more about what is MSRP and how to use it to your advantage, apply for financing at Wilde Lexus Sarasota to get your car-buying process started! If you have any questions about MSRP or invoice prices feel free to contact us, and we’ll be happy to help you! Be sure to also check our new vehicle specials

It is the policy of this dealership that prices are plus tax, tag, title, Private Tag Agency Fee/EFF of $199, and Predelivery Service Fee of $899 (which fees represent cost and profits to the dealer for items such as cleaning, inspecting, adjusting vehicles and preparing documents related to the sale, plus any dealer installed accessories). All prices, specifications and availability subject to change without notice. Dealer not responsible for misprints, omissions or typographical errors. Contact dealer for most current information. This is easily done by calling us at (941) 257-0514 or by visiting us at the dealership.

**With approved credit. Terms may vary. Monthly payments are only estimates derived from the vehicle price with a 72 month term, 4.9% interest and 20% downpayment.

More from Wilde Lexus Sarasota

  • Summer in Southwest Florida: Enjoy the Show

    No matter how much everyone loves to whine and complain about it, Florida’s annual season of scorching heat, high humidity, and copious rainfall (aka, summer) is a good thing. For without a healthy rainy season to counterbalance Florida’s many months of perfect dry weather, the state would be little more than a large desert wedged…

  • What is Lexus Smart Key?

      Virtually every new car comes equipped with some form of keyless entry system—usually involving a pocket fob—which enables the holder to remotely unlock the driver’s door by simply pressing the “Unlock” button on the fob. Pressing the button again within three seconds unlocks the passenger doors as well, while relocking them all is as…

  • The Best Shore Fishing Spots in Bradenton, Florida

        If you look down on Bradenton from several thousand feet up—as if in an airplane—you would swear that the peninsula it occupies is shaped exactly like a stone crab claw. Which is exactly as it should be for a town so closely identified with great fishing and glorious Gulf Coast seafood. (See photos…

Wilde Lexus Sarasota 27.2700033, -82.4713544.