What is MSRP?

In the market for a new Ford or Lincoln? As you shop, you’ll notice four letters that play a crucial role in determining the final amount you’ll pay for your new vehicle. What is MSRP? MSRP stands for Manufacturer Suggested Retail Price. It’s a figure the manufacturer recommends to the dealer as a price to sell the vehicle on the lot. MSRP is also known as the list price.

Car companies determine this price based on market information, the vehicle’s popularity, the materials that go into building it, and other factors. Learn more about MSRP meaning, as well as the difference between MSRP vs. invoice price with our guide from Capital Ford Lincoln!

What’s the MSRP Meaning?

Interested in understanding more details about MSRP meaning? The MSRP is the recommended price at which dealers should sell a vehicle, usually set by the car companies when the dealer takes delivery. Let’s delve into what an MSRP is so you can feel confident before shopping for a new vehicle near Moose Jaw!

• A specific make, model, and year has 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, the different trim levels for different models will have varying MSRPs.
• You can find the MSRP on the manufacturer’s website or the dealer’s website. Dealers use the MSRP when negotiating the prices of their new vehicles. 

How is the MSRP 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. As you add more features to them for a factory order, it will raise the MSRP.

• 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, or the price the dealership paid to have the vehicle delivered to the lot, the dealer may raise or lower the price for Estevan 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. 
• Another factor is when new model years arrive at the lot. Every August through October, you might see lower prices compared to the MSRP because new car dealers want to make room for the next model year. You could still get a great new vehicle at a cheaper price!

MSRP vs. Invoice Price

You may hear the term “invoice price” while car shopping, but how do you differentiate between the MSRP vs. invoice price?

• Invoice price (or dealer price) refers to the amount a dealer pays the manufacturer to have the vehicle on the lot. 
• MSRP is the amount the manufacturer recommends the dealer should sell the vehicle.

Keep in mind that the MSRP is suggested. There’s typically room to negotiate. Knowing the MSRP vs. invoice price will help you determine what a fair price will be.

How Do I Get a Fair Price?

The MSRP may be the price the manufacturer recommends for the vehicle. But it may not be the final price you pay for a vehicle to take it home with you!

• Do your research by checking what other Regina drivers have paid for the same model using data from sites like Kelley Blue Book, Edmunds, or Cars.com.
• Start your negotiation below the MSRP, and work your way up from there. Keep in mind any additional features you want and what they may cost. Adding features will raise the MSRP. 
• 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 the lower end of the negotiation will be. 
• Shop at multiple dealerships until you find the one that can get you a price you are happy with for your car, truck, or SUV.
• If you plan to lease, you can still negotiate the final price, since the price you and the dealer agree on will determine your monthly payment costs. 

Learn More About MSRP Meaning With Capital Ford Lincoln! 

Now that we’ve clarified, “What is MSRP?” and you understand the distinction between MSRP vs. invoice price, move forward with a test drive! Reach out to us or dial 306-985-9841 to arrange your test drive. Prepare for your test drive by examining our payment calculator, ensuring it aligns with your budget and accommodates your Weyburn lifestyle as you explore the offerings at Capital Ford Lincoln! Uncover valuable car-buying tips to shop like a pro!