What Does MSRP Mean?

April 30th, 2021 by
Man and Woman Signing Contract

Whether you’re looking into the new auto loan financing process or opting for used car finance options, you’ll want to fully understand what MSRP means and what it means for you. MSRP is an abbreviation for “Manufacturer’s Suggested Retail Price” and is a number that a vehicle manufacturer suggests a Colorado Springs dealership to market a vehicle at. MSRP is also called the vehicle list price, a price the manufacturer determines based on market information on the materials that go into a vehicle’s production, that vehicle’s popularity, and more. Discover more about what MSRP means and the difference between MSRP vs. invoice price with Perkins Motors, then contact us today for more information! 

What is MSRP?

Curious about just what MSRP (Manufacturer Suggested Retail Price) means? MSRP is the suggested price that dealers are advised to sell a vehicle at. Let’s explore more about what MSRP is so that you can feel more confident about your new auto loan financing or used car finance journey:

  • A particular vehicle model will share the same MSRP, regardless of the dealership at which the vehicle is sold, as this price is set by that vehicle manufacturer rather than the dealership. 
  • While each vehicle of the same model will share the same MSRP, it won’t be the same across different vehicles that a manufacturer sells. For example, a manufacturer’s sedans will have a different MSRP when compared to that manufacturer’s trucks or SUVs. 
  • Vehicle shoppers can find a vehicle’s MSRP on a dealer’s website or a manufacturer’s website, and they can use that information when negotiating a new vehicle’s price. 

Invoice Price vs. MSRP

You may have heard of “invoice price” as well as “MSRP” when looking into the auto loan financing process, but how do you distinguish between invoice price and MSRP? 

  • Invoice price (also called the dealer price) refers to the price a dealer pays a vehicle manufacturer to obtain a vehicle. 
  • MSRP (also called the “sticker price”) is the price you’ll pay a dealership for your next vehicle.

Because MSRP is a vehicle’s “suggested” price, there’s often room to negotiate, an important point to note as you’re preparing for your next new or used car finance arrangement. Understanding the MSRP vs. invoice price will help when preparing for auto loan financing by helping you determine what a fair negotiation will be for your next new car!

Discover More About MSRP with Perkins Motors! 

Now that you’ve learned more about MSRP and invoice price, you’re more than ready for your new or used finance journey! To prepare for auto loan financing and discover more about MSRP and invoice price, contact our expert finance center to begin the car-buying process. We offer the ease of an online auto loan financing application. We look forward to getting you on the road to your dream car today!

 

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