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What Does MSRP Mean?

Tiny car with coins and finance paperwork

If you’re starting your search for a new vehicle near Harlingen, you may have wondered what an MSRP is. This term stands for Manufacturer Suggested Retail Price — in other words, the price at which the manufacturer suggests the dealership sell the vehicle. You may also see it used interchangeably with “list price.” In the guide below from the Boggus Tipton Chrysler Dodge Jeep Ram finance center, we’ll dive into the details of the MSRP meaning and discuss the difference between MSRP vs. invoice price.

What is MSRP?

If you’re purchasing your first car, you’re probably feeling a little unclear on the MSRP meaning and how it differs from terms like “list price” and “invoice price.” To recap, the MSRP is the selling price for the vehicle that is suggested by the manufacturer. To help you shop with confidence, let’s take a closer look at what MSRP is:

  • MSRP is set by the manufacturer and applies to a particular model no matter where it is sold, so the same vehicle will have the same MSRP at any dealership, whether they’re located in McAllen or South Padre Island.
  • That said, MSRP will differ between vehicles. For instance, an automaker’s SUV model will have a different MSRP than a sedan or pickup. 
  • Wondering where to find the MSRP? Check the manufacturer’s website or the dealer’s website. You may be able to use the MSRP to your advantage when negotiating the price of your new car.

How is the MSRP Set?

  • The MSRP indicates the price of a vehicle in its entry-level configuration, without upgraded features or accessories.
  • A vehicle’s price will rise above the base MSRP with higher trim levels or extra features.
  • While the MSRP is recommended by the manufacturer, it’s not necessarily the price the dealership will choose to sell the vehicle at. 
  • Dealerships aren’t required to sell a vehicle at MSRP. Depending on what the dealership paid for the vehicle, its popularity, and other factors, the dealer may sell above or below the MSRP.
  • How does demand also play a role in how much a vehicle costs? Popular models will most likely be sold closer to the MSRP, while dealerships often price less popular models lower.

MSRP vs. Invoice Price

What is the meaning of MSRP vs. invoice price vs. sticker price? Here’s what you need to know:

  • The invoice price is the amount that the deal pays the manufacturer for the vehicle. 
  • Also known as the list price, MSRP is the suggested price for the vehicle. 
  • How about sticker price? This term refers to the price that you actually pay the dealer.
  • As you read above, the MSRP and the sticker price may differ if the dealer decides to price the vehicle above or below MSRP.
  • Knowing a vehicle’s invoice price may be helpful when it comes to negotiating for a lower price.

Learn More About MSRP Meaning with Boggus Tipton Chrysler Dodge Jeep Ram! 

Questions about the MSRP meaning or how to negotiate on a price by comparing MSRP vs. invoice price? Contact us or visit us in Brownsville today — the auto finance experts at Boggus Tipton Chrysler Dodge Jeep Ram are here to help! We’ll work with you one-on-one to secure the keys to a car you love at the right price. Apply for financing to get the car-buying process underway from home.

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