What Does MSRP Mean?

If you’re shopping for a new vehicle, you might wonder “What does MSRP mean?” The MSRP means Manufacturer Suggested Retail Price, which is the price point that the manufacturer sets. The manufacturer will base this list price on the vehicle’s popularity, the materials used to produce it, and other factors. Knowing what is an MSRP can also help consumers get a better deal when browsing an inventory, so it’s well worth the research! Learn all about what MSRP means with Celebration Kia.

What is MSRP?

The MSRP is just one of the many figures you may see when car shopping. You’ll also notice terms such as base price, invoice price, and transaction price. But here are a few reasons why the MSRP is so important to know:

  • The MSRP is consistent across all dealerships because it is set by the manufacturer.
  • Each model gets its own MSRP, so a sedan and SUV will have different MSRPs.
  • The MSRP is listed on the manufacturer’s website, and you can use this suggested price to help you negotiate during the financing process.

What Determines the MSRP?

You know what an MSRP is, but how does the manufacturer determine the price point? They make calculations based on a number of factors: manufacturing costs, sales processes, even the average markups by OH dealerships.

  • The MSRP is set from the vehicle’s base configuration without any extra features or accessories.
  • The MSRP increases with each trim level, as well as additional upgrades and options.
  • Though the MSRP is recommended by the manufacturer, the dealership can raise and lower the price as they see fit.
  • Higher demand vehicles will sell closer to the MSRP, while less popular models are often less expensive.

How Do I Get a Fair Price?

The MSRP is only part of the negotiating process, which means you can use it to your advantage to get a great price.

  • See how much drivers around OH have paid for the model on sites like Kelley Blue Book, Edmunds, or Cars.com.
  • Start below the MSRP when negotiating prices, but remember higher trims will fetch higher prices.
  • You can ask to see the invoice price, though keep in mind that the dealership is not obligated to show you.
  • You can also negotiate if you plan to lease instead of buy, because you’ll negotiate your monthly costs.

Find Out More with Celebration Kia

At Celebration Kia, we work hard to ensure that both parties are satisfied with every financial transaction at our OH headquarters. If you still have questions about MSRP, feel free to contact us and we’ll be happy to help!

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