What Does MSRP Mean?

Whether you’re shopping for a new or used car, chances are good you’ll see the acronym MSRP as you look at vehicle prices. This is true whether you’re browsing a dealership’s online inventory, or you’re trying to research them on third party websites. But you might be wondering, what does MSRP mean? MSRP stands for Manufacturer Suggested Retail Price. MSRP, also known as the list price, the number the manufacturer, in this case BMW, recommends our Topeka dealership sells a vehicle for.

BMW determines this price based on market information, the vehicle’s popularity, the materials that go into building it, and supply and demand as well as other factors. Learn more about the meaning of MSRP and the difference between MSRP vs. invoice price with the help of BMW of Topeka! Once you’ve finished reading through this handy guide from BMW of Topeka, the next step is to apply for financing online so that you can take home the attractive BMW model that is just right for you.

What Is MSRP?

Want to know more about the MSRP meaning? The MSRP is the recommended price at which dealers should sell a vehicle. When you dive more into a vehicle’s MSRP, you can feel more confident when car shopping near Topeka! 

• A particular model will share the same MSRP across all dealerships, as the price is set by the manufacturer. When you’re shopping for a BMW model, that means all of them will have the same MSRP no matter what dealership you buy from, so long as those models are equipped with the exact same features.
• 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. You can use the MSRP to negotiate the price of a new vehicle. 

How Is the MSRP Set?

• The MSRP sets a vehicle’s base price at its entry-level configuration without additional features, accessories, or extra packages. 
• Additional features and higher trim levels will raise the cost of the vehicle accordingly. 
• While the MSRP is recommended by the manufacturer, it’s not necessarily the price the dealership will choose to sell the vehicle at. There might be specials or incentives from the manufacturer that lower the costs.
• Depending on the invoice price, the price a dealership paid for the vehicle, the dealer may raise or lower the price of the car for Lawrence shoppers. It could be the end of a model year, usually in August or September, and the dealer wants to move inventory before getting the later model year on the lot.
• Demand also plays a role in how much a vehicle costs. A popular model will most likely be sold closer to the MSRP, while a less popular model may be set at a discount at some point to make room on the lot.

How Do I Get a Fair Price?

The MSRP may be the price the manufacturer recommends for the vehicle, but it is not the price you have to pay for a vehicle. 

• Do your research by checking what other Kansas City 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. Keep 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 according to your budget.
• 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. 

MSRP vs. Invoice Price

You may hear the term “invoice price” while car shopping, but how do you differentiate between MSRP vs. invoice price?

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

Keep in mind 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. An invoice price is typically lower than the MSRP.

Learn More About MSRP With BMW of Topeka 

Ready to shop for a car like an expert and make sure that you’re saving the most possible. Now that you know more about what an MSRP is and the difference between MSRP vs. invoice price, the team at BMW of Topeka can show you what they know when it comes to the car buying process to make it quick, easy, and fast. Contact us today with any questions that you might still have, or to schedule a test drive.