What Does MSRP Mean?

Hands Holding Car and Money

If you’re shopping around the Huntington area for a new Land Rover vehicle, you may have many questions about the car-buying process like “What is MSRP?” and “How is that amount determined?” MSRP stands for Manufacturer Suggested Retail Price and is a number that the manufacturer recommends that a Charleston dealership sells the vehicle at. MSRP is also known as the list price, which is determined based on market information on the popularity of the vehicle, materials needed to build it, and more. Get all the details about MSRP, how it’s set, and how you can use it to get a fair price on your next vehicle.

What is MSRP?

The Manufacturer Suggested Retail Price is the price that the OEM recommends dealers sell the vehicle at. Most Parkersburg shoppers come across this term when shopping for a vehicle, which is accompanied by other terms like invoice price, base price, and transaction price. These all determine the value of the MSRP to both the buyer and the dealership. 

  • The same vehicle model shares the same MSRP across all Land Rover dealerships as it’s set by the manufacturer. 
  • Even though the MSRP is the same for each vehicle of the same model, it’s not going to be the same for every car that the manufacturer sells. For instance, SUVs will have a different MSRP than a sedan or a truck. 
  • The MSRP is located on the manufacturer’s or the dealer’s website, and it can be used when negotiating the price of their new vehicle. 

How is the MSRP Set?

The manufacturer uses information like manufacturing costs, sales processes, and the average markups by Wheeling dealerships with live and historical market data to determine the MSRP. Learn how the MSRP gets set below:

  • The MSRP sets a vehicle’s base price at its entry-level configuration without any additional features or OEM accessories. 
  • Additional features and higher trim levels raise the cost of the vehicle accordingly. 
  • While the MSRP is recommended by the manufacturer, it’s not always the price that the dealership chooses to sell it at. 
  • Depending on the invoice price for the vehicle – the price the dealership paid for the vehicle – the dealer could lower or raise the price of the car for Wheeling shoppers.
  • Demand plays a significant role in how much a vehicle costs. A popular model will most likely be sold closer to the MSRP, whereas a less popular model would sell better at a discount. 

How Do I Get a Fair Price?

The MSRP may be the manufacturer’s recommended price, but it doesn’t mean that’s what you’ll pay. Since the difference between what the dealer paid for the vehicle and the MSRP is several thousand dollars, the dealer could lower the price and still make a profit. Check out our tips for getting a fair price below:

  • Do your research and see what other Charleston drivers have paid for the same model on sites like Kelley Blue Book, Edmunds, or Cars.com.
  • Start your negotiation below the MSRP, and gradually go up from there while keeping in mind that any additional features you want could cost more. 
  • While some dealers may show you a car’s invoice price if you ask, they are not obligated to do so. The invoice price helps determine where you should start your price negotiation.
  • Even if you want to lease your next vehicle, you can still negotiate the MSRP since the price you and the dealer agree on determines your monthly payments. 

Find Your Land Rover Vehicle at Land Rover Charleston!

After learning about the MSRP, it’s time to visit our Charleston dealership to get behind the driver’s seat of the luxury vehicle that’s going to take your commute to exciting new levels. Give us a call if you have any questions, and be sure to check out our vehicle specials!

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