What Does MSRP Mean?

If you’ve been doing some shopping for a new vehicle in the St Louis area, then you’ve probably heard the term “MSRP”. MSRP stands for “Manufacturer Suggested Retail Price”, but what does this mean for you? Learn more about the MSRP meaning with the finance team here at Suntrup Kia South. We’ll show you how a vehicle’s price is determined and how you can get the best deal possible.

MSRP Meaning & What Determines MSRP

MSRP is the price at which a manufacturer recommends that a dealership sell a certain vehicle, but that doesn’t mean that’s the exact price at which the dealership has to sell the vehicle. Here are some things that determine a vehicle’s MSRP:

• The MSRP is what sets a vehicle’s base price at the base-level trim without any additional accessories or features.
• Higher trim levels will cost more than lower-level trims.
• The dealership may raise or lower the price for the car based on the invoice price, which is the price that the dealership paid for the vehicle.
• In the Jefferson County area, a popular model will more likely be sold closer to the MSRP while a less popular model may be sold at a discount.

Vehicle MSRP vs. Invoice Price: What’s the Difference?

The term “invoice price” was mentioned earlier, but what does this mean? The MSRP meaning and the invoice price meaning are slightly different, and here are the differences between them:

• The invoice price/dealer price is the price that the dealership pays the manufacturer for a vehicle.
• The MSRP is the amount that is recommended the dealership sells the vehicle for, which is the price you’ll pay for the vehicle.

How to Negotiate the MSRP

Keep in mind that the MSRP is just a suggested price, and it’s not the price that the dealership paid for the vehicle, which means that there’s wiggle room for negotiation. Here’s how you can negotiate the MSRP on a vehicle of your choice:

• Research other offers that St Charles drivers have made for the same vehicle using sites like Kelley Blue Book, Edmunds, or Cars.com.
• Make your first offer below the MSRP, and work your way up from that point.
• Dealerships aren’t obligated to show you the invoice price, but they may show you if you ask them. This can show you how much the dealership can still make if they lower the price.
• Compare multiple deals from other dealerships to get the best offer.
• If you’re leasing, you can still negotiate the MSPR since the price you and the dealer will agree on determines the monthly payment costs.

For other car-buying tips, reach out to the team at Suntrup Kia South. We’ll help you shop with confidence, no matter what you’re looking for during your shopping experience.

Get the Best Price in St. Louis

Now that you know more about the MSRP meaning and how you can negotiate, visit Suntrup Kia South today. Whether you want to know whether to buy or lease or anything else, you’ll be able to get all of the answers you need at Suntrup Kia South. Contact us to get started.