If you’re in the market for a new or used vehicle in Long Island City, then you’ve probably come across the acronym “MSRP”. What is MSRP and what does it mean? MSRP stands for Manufacturer Suggested Retail Price and is the number a vehicle manufacturer recommends a dealership sells their vehicles at. The MSRP is based on market information like the vehicle’s popularity, the materials that are used to build it, and much more. Learn more about what MSRP means, how it’s determined, and how you can use it to get a fair price on your next vehicle purchase!
What is MSRP?
Most Queens shoppers will only encounter the term MSRP when they’re looking for a new vehicle, but MSRP can be used to reflect the suggested retail price of boats, housing appliances, equipment, and much more. The MSRP will be accompanied by other automotive terms such as base price, invoice price, and transaction price. Each term is used to determine the value of the MSRP to the buyer and the dealership. Learn more about what MSRP means below:
- The same vehicle model should share the same MSRP across all dealerships since it’s 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, SUVs will have a different MSRP than a sedan or a truck.
- Car shoppers can find the MSRP on the manufacturer’s website or the dealer’s website, and they can use it when negotiating the price of their new vehicle.
How is the MSRP Set?
An MSRP is set by the manufacturer, but how does the manufacturer determine what the MSRP should be? Information like manufacturing costs, sales processes, and even the average markups by Brooklyn dealerships help determine what a vehicle’s MSRP should be so the vehicle will turn a profit when it’s sold. Read below for more information on how an MSRP is determined:
- The MSRP sets a vehicle’s base price at its entry-level build without additional features or accessories.
- Additional features and higher trim levels will raise the cost of the vehicle accordingly.
- 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 – the price the dealership paid for the vehicle – the dealer may raise or lower the price of the car for Bronx 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.
How Can I Use the MSRP to Get a Fair Price?
While the MSRP is the recommended price a dealership should charge for their vehicles, it’s not the price you have to pay. In most cases the difference between what a dealership paid for a vehicle and the MSRP is several thousand dollars, meaning that the dealership can negotiate the price while still making a profit. Read our tips for getting a fair price at a dealership below:
- Do your research by checking what other Long Island City 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 – keeping 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. The invoice price can help you determine where you should start your price negotiation.
- Shop at multiple dealerships until you find the one that can get you a price you are happy with.
- If you plan to lease you can still negotiate from the MSRP since the price you and the dealer agree on will determine your monthly payment costs.
Get Your Next Vehicle at Major World Auto!
Now that you know more about what MSRP is and how you can use it to get a great price on your next vehicle, shop our online inventory at Major World! There you can see the MSRP for each vehicle on our lot and negotiate the price with our finance team. When you’re ready, you can apply for financing and begin the car buying process right from your Long Island City home. Contact us today, we look forward to getting you the right car for your needs at a price you’ll love!