What Is MSRP and What Should You Know About It?

Couple sitting at sales desk at dealership

The MSRP meaning stands for Manufacturer Suggested Retail Price. This might confuse some people who may not know what is MSRP and think it’s an automotive term for final price. There are many things that you need to know about the MSRP meaning before coming to our Artesia dealership near Ruidoso to shop for a new or used car because you can get a better deal doing so.

Find out more about what is MSRP and MSRP vs. Invoice with this guide brought to you by the specialists at Tate Branch Artesia today. You can also visit us to see our selection of vehicles and drive home in your favorite vehicle. Contact us for more information and apply for financing with our finance center to start the buying process now!

What Is MSRP?

To keep it simple, the MSRP is a price that the manufacturer suggests a dealership should sell the vehicle for. The manufacturer determines the MSRP by its market value, the vehicle’s popularity among Clovis drivers, the material required to make the vehicle, and more! Check out more details about the MSRP meaning below:

  • 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 MSRP Set?

When you look on a vehicle’s site, such as Dodge’s or Jeep’s home site, the prices there might be different than at a dealership in Roswell. This confuses some car shoppers, especially about what is MSRP or what it means. See how the MSRP on Chrysler, Dodge, Jeep, Ram vehicles is set below:

  • 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 Las Cruces 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.

MSRP vs. Invoice Price

The invoice price and the MSRP are often confused with each other but there’s a distinct difference between the two. See the difference between MSRP and invoice prices below:

  • Invoice price (or dealer price) refers to the amount a dealer pays the manufacturer
  • MSRP is the “sticker price”, i.e the amount you’ll be paying the dealer

Shop For A New Or Used Vehicle at Tate Branch Artesia

Now that you know what MSRP is, visit our Artesia dealership and shop our selection of new and used vehicles today. Find the vehicle that’ll make you feel like a new driver today. Also, learn how to buy a new car with your new MSRP knowledge. Contact us for more information!

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