What Is MSRP?

You’ve heard the term “MSRP” tossed around when shopping for cars in the Mullica Hill area, but what does the term actually stand for? MSRP stands for Manufacturer Suggested Retail Price. The MSRP is the number at which the manufacturer recommends a dealership sells a vehicle. How does the manufacturer come up with this number? Learn about the MSRP meaning and more with the finance department at Spirit Chrysler Dodge Jeep Ram. 

   

What Does MSRP Mean?

The MSRP is the price for which the manufacturer recommends the dealership sells a particular vehicle. However, there are other automotive terms you’ll run into when shopping for cars in Penns Grove like base price, invoice price, and transaction price. Each of these terms plays a role in determining the value of the MSRP. Here are some other important aspects of MSRP that you should know: 

• The MSRP should be set across all dealerships for the same vehicle model since that MSRP is set by the manufacturer. 
• The MSRP will be the same for each model but not for each vehicle the manufacturer sells. For example, a truck will have a different MSRP than a sedan. 
• You can find the MSRP on the OEM site or the dealer’s site. You can use this set MSRP to try and negotiate the price of the vehicle when buying. 

What Determines the MSRP?

You know what the MSRP is, but how is the MSRP set? The manufacturer doesn’t just randomly determine the MSRP. They use information like manufacturing costs, sales processes, and average markups by local Sewell dealerships with data to determine a vehicle’s final MSRP. Here is some more information on what determines the MSRP: 

• The MSRP is set as the vehicle base price without additions, which raises the overall vehicle price. 
• Even though the MSRP is the recommended price by the manufacturer, the dealership doesn’t have to sell the vehicle at this exact price. 
• The dealership may lower or raise the price of the vehicle depending on what the dealership paid for the vehicle.
• Since demand plays a part in the MSRP, the price could be closer to the MSRP for a popular model while a less popular model may be sold at a discount.

Getting a Fair Price

Since the MSRP isn’t a price that’s set in stone for the dealership, the price of a vehicle can be negotiated. Here are some tips for lowering the final price down to your liking: 

• Check what other drivers have paid for the vehicle online.
• Make your first offer below the MSRP so you have some wiggle room to work your way up.
• If you can, ask for the invoice price, which is the price the dealer paid for the vehicle. This can help you set a starting offer price. 
• Compare prices at dealerships all over Swedesboro to compare and see if you can get a better deal. 

Find the Right Price at Spirit CDJR

Now that you know what MSRP is and how it is determined, you can use that knowledge to your advantage to help you get a fair price on a new vehicle. Contact us to help you explore our inventory and apply for financing online. For more car buying tips like what liability insurance covers, visit Spirit CDJR online.