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What is the MSRP Meaning?

Car-buying paperwork

MSRP stands for Manufacturer Suggested Retail Price, and it is the price that the manufacturer recommends to the dealership. It is also referred to as the list price. The manufacturer determines this price from market research on the vehicle’s popularity, the materials involved in building it, and a few other factors. Keep reading to learn about the MSRP vs. invoice price with our team at INFINITI of San Jose.

So, What is MSRP?

So, you know that the MSRP is the recommended price for a dealership to sell a vehicle, but you might still want to dig more deeply into the MSRP meaning. Here’s what you should keep in mind:

  • The price is set by the manufacturer, so a model will have the same starting MSRP at every dealership.
  • The MSRP is the same for vehicles of the same model, but it is different for every vehicle sold by a manufacturer. For example, an SUV will have a different MSRP than a sedan. Different trim levels will also have different MSRPs.
  • You can see the MSRP when you are shopping for cars on either the manufacturer’s or the dealership’s websites, and you can use it to negotiate the price of your new vehicle.

How is the MSRP Decided Upon?

  • The MSRP is set for each model before the addition of any packages, options, or accessories.
  • If you add features outside of the original configuration or you want a higher trim level, then the price will go up.
  • While the MSRP is recommended by the manufacturer, it’s not necessarily the price the dealership will choose to sell the vehicle at.
  • The dealer may raise or lower the price of the car, depending on the invoice cost, for Pleasanton shoppers.
  • Demand also has an effect on 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.

MSRP vs. Invoice Price

If you have heard the term ‘invoice price,” then you are probably curious what the difference between MSRP vs. Invoice price is, and how it affects your price point as a buyer.

  • Invoice price, also referred as dealer price, is the amount a dealer pays the manufacturer
  • Many dealerships will never sell a vehicle below the invoice price, since this means that they’d sell the vehicle at a loss.
  • The MSRP is the recommended price—but it’s not necessarily the real price that you’ll pay.
  • When determining your real costs, look at the sticker price! Although additional fees may be added on during the financing process, this sticker price is closest to what you’ll actually pay.

Keep in mind that the MSRP is a suggested price, so generally you have room to negotiate—especially if the sticker price is higher than the MSRP and the invoice price. Knowing the MSRP vs. invoice price will help you determine what a fair negotiating price will be when you go to buy your new car. Don’t forget to value your trade-in before you calculate your monthly payments!

Keep Learning More About the MSRP Meaning with INFINITI of San Jose!

Once you know what the MSRP price is and the difference between MSRP vs. invoice price, your hunt for the perfect vehicle and price will be a lot easier. You can get in touch with our finance center in order to get the process started. We are happy to help you get the best price when you apply for financing. Find the perfect vehicle for your Walnut Creek rides with INFINITI of San Jose.

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