What Is MSRP?

Ready to buy a new Ford car, truck, or SUV? How about a quality used vehicle? As you shop for options, you’ll run across four letters that talk about how much you could pay for a vehicle. Look for “MSRP” on the vehicle’s listing. Find out all you need to know about the MSRP’s meaning with our guide.

What Is MSRP When You See It on a Vehicle’s Price?

MSRP stands for Manufacturer Suggested Retail Price. It’s a figure the manufacturer recommends to the dealer as a price to sell the vehicle.MSRP is also known as the list price.

Automakers determine this price based on market information, the vehicle’s popularity, the materials that go into building it, and other factors.

We’ll also go over the difference between MSRP vs. invoice price later in our guide.

What Is MSRP When Talking to a Dealer?

The MSRP is the recommended price at which dealers should sell a vehicle, usually set by the automaker when the dealer takes delivery. But there are many other factors that go into what an MSRP means, so we’ll dive a little deeper. You’ll need to know this when shopping for a new vehicle near Dundalk!

• A specific make, model, and year has the same MSRP across all dealerships, as the price is set by the manufacturer. But the final sale price may differ from dealer to dealer based on incentives, discounts, and more.
• While the MSRP is the same for each vehicle of the same model and model year, it won’t be the same for every vehicle the manufacturer sells. SUVs will have a different MSRP than sedans or pickup trucks.
• You can find the MSRP on the manufacturer’s website or the dealer’s website. You’ll also see it on the documentation affixed to the new vehicle’s window as you look over what’s on the lot.

How Do Manufacturers Set the MSRP?

• 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. There is room for negotiation from the MSRP.
• Depending on the invoice price, or the price the dealership paid to have the vehicle delivered to the lot, the dealer may raise or lower the price for Bel Air shoppers.
• Demand also plays a role in the final price you pay for a vehicle. 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

You may hear the term “invoice price” while car shopping. 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 room to negotiate most of the time. 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 to take it home with you!

• Do your research by checking what other Middle River drivers have paid for the same model on 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.
• Some dealers may let you see a car’s invoice price if you ask. However, they are not obligated to.
• 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.

Learn More About the MSRP’s Meaning With Al Packer's White Marsh Ford!

We’ve answered, “What is MSRP?” You also understand the difference between MSRP vs. invoice price. Getting behind the wheel is the next step! Contact us or call 443-868-2745 to schedule a test drive. We’ve also got a payment calculator and car-buying tips to help you shop like a pro near Bel Air.