What Is MSRP?

As you’ve been looking for a new vehicle for your Burleson commute, you’ve undoubtedly come across the term “MSRP”. Maybe you have an idea of what this is or know that it’s somehow associated with the price of a vehicle, but what does MSRP mean? MSRP stands for “manufacturer suggested retail price.” Learn more about what this means for your car-buying experience with the finance center at Shottenkirk Toyota of Granbury.

What Does MSRP Mean for You?

You know what MSRP stands for, but what is MSRP? The MSRP is the price at which a manufacturer recommends that a dealership sells a certain vehicle. Some other terms associated with MSRP include base price, invoice price, and transaction price. Here are some other things you should know about MSRP during your Stephenville car-buying experience:

  • Since the MSRP is set by the manufacturer, a vehicle model should have the same MSRP at every dealership.
  • The MSRP won’t be the same for every vehicle type. For example, trucks will usually have a higher MSRP than sedans.
  • You can find the MSRP on the manufacturer’s website or on the dealership’s website as well. You can use the MSRP to negotiate a fair price at the dealership.

How Is MSRP Determined?

There are several factors that determine the MSRP. Things like manufacturing costs, sales processes, area markups, and historical data are just some of the things that go into determining the MSRP for a vehicle. Here are some other things that determine how a manufacturer sets the MSRP:

  • MSRP sets the base price for a vehicle without any additional features. More features and higher trims will raise the MSRP.
  • Just because the MSRP is set by the manufacturer, that doesn’t mean that’s the price that the dealership has to sell a certain vehicle.
  • A popular model will usually be sold closer to the MSRP while a less popular model will usually be sold at a discounted or lower price.

Now that you know a little bit more about what goes into vehicle pricing, reach out to Shottenkirk Toyota of Granbury if you want to sell us your car.

Getting a Fair Price

The invoice price is the price that the dealership paid for the vehicle. Usually, the difference between the MSRP and what the dealership paid for the vehicle is thousands of dollars, meaning that the dealership will still profit by selling the vehicle lower than the MSRP. Here is how you can use the MSRP to negotiate a fair price:

  • Research the value of the vehicle you’re looking at before making a decision. You can use our trade-in value tool at Shottenkirk Toyota of Granbury to get an estimate.
  • Start below the MSRP and work your way up from there. This way, you can try and meet the dealer in the middle for a final price.
  • Dealers aren’t obliged to show you the invoice price for a vehicle, but you can ask. This can help you determine what the dealership can sell the vehicle for to still make a profit.
  • Shop at multiple dealerships in the Cleburne area to see if you can get a better offer somewhere else.
  • Even if you are leasing, you can still try to negotiate the MSRP since the monthly payments will be determined by the final price.

Now that you know what MSRP means and how you can use it to get a fair price on a new car, you can visit Shottenkirk Toyota of Granbury in Granbury or online to explore our new inventory and find a great vehicle at a fantastic price.

Find a Great Deal at Shottenkirk Toyota of Granbury

Knowing what MSRP is will help you see if you’re getting a good deal on a vehicle. Luckily, you don’t have to worry about that when you shop at Shottenkirk Toyota of Granbury. Contact us to explore current new vehicle specials and see how you can save on your next purchase.

More from Shottenkirk Toyota of Granbury

 

 

Shottenkirk Toyota of Granbury is your go-to destination for exceptional vehicles and automotive services in Fort Worth, TX.

Check out our tips and tricks for financing, service, car buying and more!

June 6, 2024
Back to Parent Page