What is MSRP?

If you’ve been browsing for a new or pre-owned vehicle in New Milford, chances are you noticed something called an MSRP. MSRP stands for Manufacturer Suggested Retail Price and is a number that the manufacturer recommends a dealership sells a vehicle at. The manufacturer determines this price based on market information when it comes to the vehicle’s popularity, the materials that go into building it, and more. Other crucial details to know about MSRP include: 

• A particular model will share the same MSRP across all dealerships, as the price is 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. 

Below, the team at Todd Maserati of Danbury goes over the difference between the invoice price and MSRP as well as how you can ensure you’re paying a fair price for your next vehicle near Trumbull.

MSRP vs. Invoice Price

“Invoice price” is another common term you’ll come across when car shopping, but how is it different from MSRP? Take a look at the MSRP vs. invoice price definitions here:

• Invoice price (or dealer price) refers to the amount a dealer pays the manufacturer. 
• MSRP is the “sticker price,” or the amount you’ll be paying the dealer for a vehicle.

Something to note is that the MSRP is “suggested,” so there’s typically room to negotiate. Knowing the MSRP vs. invoice price will help you determine what a fair negotiating price will be.

How Do I Get a Fair Price?

Since the MSRP is the price the manufacturer recommends for the vehicle, it might not be the price you’re paying for a model in Stamford. If you want to make sure you’re not being overcharged, we recommend doing the following: 

• Do your research by checking what other Danbury 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 the MSRP since the price you and the dealer agree on will determine your monthly payment costs. 

Learn More Car-Shopping Tips from Todd Maserati of Danbury 

Now that you know what the MSRP meaning is, feel free to get more advice on car shopping from our finance team. We’d love to tell you more about finding your ideal vehicle or answer any questions you may have! Just reach out to us.