What is MSRP?

If you’re looking for a new vehicle, it’s easy to get confused by all the numbers that you see. What is an MSRP? What’s the difference between MSRP vs. invoice? The team at Suntrup Hyundai South is here with some car-buying tips to help you shop with confidence. MSRP stands for Manufacturer Suggested Retail Price. Also known as “list price” or “sticker price,” it’s the price that the manufacturer recommends to dealerships based on market research.However, it’s not set in stone, leaving you with room to negotiate. Find out more about the MSRP meaning and how you can use this information to your advantage in Jefferson County and St Louis.

MSRP Meaning Defined?

As we mentioned, MSRP is the price that the manufacturer suggests to dealerships. But there are a few other things to keep in mind as well:

• The MSRP is the same number at every location, so a dealership in St Charles and St. Louis will have the same MSRP for the same model.
• Each model has its own MSRP. Different SUVs will have their own MSRPs, and even different trims will have their own MSRP.
• The MSRP is publicly available. Just check the manufacturer or dealership website for the most recent model.

Why is the MSRP Important to Know?

The MSRP is just a suggestion and not the final price for most vehicles. Is the model in demand? More popular vehicles will move quickly, so they tend to sell closer to their MSRP – and even above in some cases! But if the model is less popular, there’s a good opportunity to negotiate. Your final price will also depend on how much the dealership paid for the vehicle – known as the “invoice” price.

MSRP vs. Invoice Price

So, what is the MSRP vs. invoice price?

• The invoice price is the price the dealership has paid the manufacturer for the car.
• The MSRP is the price the manufacturer recommends you pay for the car.

Because these values are usually not the same, customers can use this knowledge to score a fantastic deal.

How Do I Get a Fair Price?

Knowing that the MSRP is just a suggestion, you can negotiate more strategically for your new car! Here’s how you do it:

• Check the going rate for your chosen make and model in the St. Louis area. We recommend industry standards like Kelley Blue Book, Edmunds, or Cars.com.
• Start negotiating under the MSRP and work your way up, but keep in mind that the MSRP only reflects the base model. Any extra options and accessories will always raise the price.
• While not all dealerships will allow you to see the invoice price, you can always ask. If you receive the invoice price, you can use this information to guide your negotiations.
• If you’re planning on leasing, you can still use the MSRP to negotiate. That’s because the vehicle’s pricing will determine your monthly payments.

Learn More About MSRP Meaning with Suntrup Hyundai South! 

Now that you’re an expert in all things automotive, it’s time to find your next vehicle! Stop by Suntrup Hyundai South to take a few test drives and chat with our experts about our new inventory. We’d be happy to help you get the best deal possible on your dream car, so contact us today.