What is MSRP?

If you’re shopping for a new vehicle, you’ve likely come across the acronym MSRP many times. But just what is MSRP? Simply put, it stands for Manufacturer Suggested Retail Price, which, as the name implies, is the dollar amount the automaker recommends that dealerships charge for the vehicle in question. Learn more below, and when you’re in the market for a new vehicle in the Atlanta or Cumming area, be sure to check out the selection here at RBM of Alpharetta.

What is MSRP? – Important Things to Know

Let’s dive more deeply into the MSRP meaning. Also called the list price, the MSRP is the same, no matter the dealership. This is because the manufacturer, not individual dealers, sets the MSRP.

However, while MSRPs are the same for each vehicle of the same model, they aren’t standard across an automaker’s entire lineup. Different models have different MSRPs. A small sedan will naturally have a lower MSRP than a full-size SUV.

You can find the MSRP by checking your dealership’s website or the automaker’s OEM site. Many car shoppers use the MSRP as a guide when negotiating the cost of their next vehicle.

Factors That Affect MSRP

Now that you can answer the question, “What is MSRP?”, you may be wondering how auto manufacturers set this all-important price. Here are some of the most common considerations that are factored into the final MSRP:

• The base MSRP is for an entry-level trim without any available or optional features or functionalities. Additional amenities and premium trim levels will result in a higher MSRP.
• The MSRP is only a suggestion from the automaker. The dealer is not required to sell the vehicle at that price. Much depends on the invoice price; see below for details.
• Vehicle demand impacts the MSRP too, as a popular vehicle or trim will almost certainly sell for a price closer to the MSRP than a vehicle or trim that isn’t as popular.

MSRP vs. Invoice Price

So, what is MSRP in relation to invoice price? When comparing MSRP vs. invoice price, it’s important to understand that the invoice price, or dealer price, is the amount the dealership pays the manufacturer for the vehicle.

The MSRP meaning, on the other hand, is the amount that the automaker recommends you pay the dealer for the vehicle–and the key word here is recommends. Also referred to as the sticker price, there is often some room to negotiate on the MSRP.

Discover More About the MSRP Meaning with RBM of Alpharetta

Now that we’ve covered the MSRP meaning, how these prices are set, and how MSRP vs. invoice price differ, you can purchase your next vehicle with confidence. If you have questions, don’t hesitate to contact us or stop by our Alpharetta showroom; we’re just a short drive from Johns Creek. Be sure to check out our latest new vehicle specials for opportunities to save. At RBM of Alpharetta, we’re committed to helping you find a luxury vehicle that checks all the boxes on your wishlist — and then some!