What Does MSRP Mean?
If you’re in the process of researching new (or even pre-owned) automobiles, you’ll almost certainly come across the letters “MSRP”. You may have also noticed that there’s usually a difference between a given vehicle’s MSRP and its sticker price–so what is MSRP anyway? These four letters stand for Manufacturer Suggested Retail Price.
While this name should be more or less self-explanatory, it’s important to understand what goes into the MSRP and how actual prices tend to deviate from this guideline. We’ve covered everything you need to know before you move forward.
What Is MSRP?
Car dealerships like Chevrolet Of Turnersville must purchase automobiles from the original manufacturer. The dealerships then sell these vehicles to drivers like you! What does MSRP mean in terms of this process? Here’s what you should keep in mind:
The MSRP is set by the manufacturer before the dealership purchases the vehicle.
MSRP will vary from vehicle to vehicle, and from trim to trim within the same model’s lineup.
You can always find a given vehicle’s suggested retail price on the website of the original manufacturer. It’s a good idea to keep the starting price in mind when you’re negotiating.
Remember: MSRP is not equivalent to the price that the dealership paid for the vehicle. This price is referred to as the invoice price.
How Is The MSRP Set?
- The Manufacturer Suggested Retail Price is primarily based on a given model’s production costs, but it also accounts for sales processes, fees, and average dealership markups–determined by historical and live market data.
- Note that MSRP does not include delivery charges, which are often tacked on to the sticker price after the vehicle arrives in Cherry Hill or Turnersville.
- The MSRP is really only applicable for a vehicle which does not have any optional upgrades, packages, or accessories–so you’ll want to keep these factors in mind when you’re comparing the sticker prices to the MSRP.
The dealership is not required to sell the vehicle at MSRP. In fact, dealerships like our own are always competing with one another in order to attract customers! Many offer financing specials or leasing deals that shave money off of the MSRP and help you lock in a lower monthly payment.
How Do I Get A Fair Price?
Everything rests on the difference between the invoice price and the MSRP. A dealership will almost never accept a price that’s lower than the invoice price, since doing so would mean taking a loss on the vehicle. However, it’s clear that drivers who do their research will usually have room to negotiate. Trading in an old vehicle or negotiating for a lower interest rate can also help you save thousands of dollars.
It’s important to note that the dealership is under no obligation to tell you the invoice price. You’ll have to do the legwork yourself if you want to enter negotiations prepared. Find out what other dealerships are asking, shop multiple locations, and explore data from sites like Kelley Blue Book, Edmunds, or Cars.com.
Get Your Next Chevy Vehicle At Chevrolet Of Turnersville!
If you’re ready to take the next steps, don’t wait to apply for financing. Our dealership is easy to reach from anywhere near Deptford or Voorhees, and we’ll do everything in our power to make sure that you drive home with a smile.