2021 Chevy Traverse EXT

What is MSRP?

If you’re in the market for a new vehicle, and you’re wondering how much you’re going to pay, you might see comments about MSRP. But what is MSRP, and how does it relate to cars? MSRP stands for Manufacturer Suggested Retail Price and is a number that the manufacturer has commended dealerships near Hannibal to sell a particular model at. This is also known as the list price, and the manufacturer determines market information such as the vehicle’s popularity, the materials that got into building it, and more. You can find out more about what is MSRP and how it can relate to you below, as well as the difference between MSRP and Invoice Price with the help of Shottenkirk Chevrolet and our finance department

 

 

What does MSRP Mean?

If you want to know more about MSRP and what it entails, then you’ve come to the right place. Our finance department is ready to break it down for you, starting with just how MSRP affects the car buying process for Monroe City drivers. 

  • MSRP is shared across all dealerships, no matter where they are located, for a particular model.
  • MSRP is unique for each model, which is why SUVs have a different MSRP than sedans and trucks. 
  • The MSRP often appears on the manufacturer’s or dealer’s website and provides a good idea of where you can start negotiating the price. 

How is the MSRP Set?

  • The MSRP sets a vehicle’s base price at its entry-level configuration without the addition of features or accessories. Additional features, or higher trim levels, will increase the price accordingly.
  • While the MSRP is recommended by the manufacturer, it’s not necessarily the price the dealership will choose to sell the vehicle at. 
  • The invoice price, or what a dealership paid for the vehicle, can raise or lower the price of a car in Cholchester above or below MSRP.
  • Demand also plays a role in how much a vehicle costs. More popular models will be more likely to be set at MSRP, while less popular ones may be priced under MSRP, closer to the invoice price. 

MSRP vs. Invoice Price

Sometimes you’ll see the invoice price listed while car shopping, alongside the MSRP. This can be a little confusing, but as a reminder: 

  • The invoice price is what the dealer paid the manufacturer for the vehicle, which is usually under MSRP
  • MSRP is the sticker price, or what you are more likely to pay the dealer

MSRP is a suggestion by the manufacturer, which typically means there is room to negotiate with the dealer. Knowing the difference between MSRP and invoice price, as well as those amounts for the model you’re interested in, can go a long way during negotiating a fair price.

Getting a Fairer Price

Keep in mind some of the following tips, which can help you during the negotiation process to ensure you aren’t overpaying for your vehicle: 

  • Do your research by checking what other drivers around you have paid for the same model on sites like Cars.com, Kelley Blue Book, Edmunds.
  • Open negotiating below MSRP, and work your way from there, keeping in mind the additional features you may want and how they can influence the price.
  • While some dealers may let you see a car’s invoice price if you ask, they are not obligated to do so. The invoice price can help give you a better idea of where to begin your price negotiation.
  • Shop at multiple dealerships until you find the one that can get you a price you are happy with. You’re not under any obligation to purchase a vehicle once you sit down with a dealership.
  • If you plan to lease, you can still negotiate the MSRP since the price you and the dealer agree on will determine your monthly payment costs. 

Learn More Car Buying Tips with Shottenkirk Chevrolet

Now that you know more about what an MSRP is and how it is different from an invoice price, you are in a better place to start the car buying process. You can also view the rest of our car buying tips for additional information and to make sure you’re getting the best price possible on your new vehicle. Don’t forget, once you’re ready to purchase your vehicle, to apply for financing online! 

See MSRP in Action


 

 

Have questions about pricing? Chat with a team member now!

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