What is MSRP?

If you’re in the market for a new vehicle, you’re probably wondering what MSRP is. Standing for Manufacturer Suggested Retail Price, this is a number that the manufacturer recommends a Westport-area dealership sell a vehicle at. Also known as the list price, the automaker determines the price based on market information, the model’s popularity, and the materials that go into making it. Learn more about the meaning of MSRP and compare MSRP vs. invoice pricing with the help of Mercedes-Benz of Fairfield.

What Makes an MSRP

Want to know about the meaning of MSRP and additional details? While the MSRP is the recommended price a dealer should sell the model at, there’s more to it. Learn more about what goes into an MSRP before you go car shopping in Fairfield:

• Particular Mercedes-Benz models will share the same MSRP at every Norwalk-area dealership.
• While the MSRP is the same for every vehicle of the same model, it’s not the same for every model the manufacturer sells. For example, SUVs will have a much different MSRP when compared to cargo vans and sedans.
• You can find the MSRP on the manufacturer’s website or via our dealership site, and they can be used when negotiating the price of your new vehicle.

How is the MSRP Set?

• The MSRP sets a vehicle’s base price at its entry-level configuration without additional accessories or features.
• Higher trim levels and features will raise the vehicle’s cost accordingly.
• While MSRP is recommended by the manufacturer, a dealership can decide to sell the vehicle at a different price.
• Depending on your vehicle’s invoice price—the price paid by the dealership for the model—the dealer may decide to lower or raise the car’s price for Weston-area customers.
• Demand also plays a role in how much the vehicle costs. A popular model will likely be sold closer to the MSRP, while a less popular option may be set at a discounted price.

MSRP vs. Invoice Price

As you learn what MSRP is, it can be easy to confuse this with other car finance phrases. You might have heard the term “invoice price” while car shopping, yet how do you differentiate between the MSRP vs. invoice price:

• Invoice Price (or Dealer Price): Refers to the amount a dealer pays the manufacturer
• MSRP is the “sticker price,” i.e., the amount you’ll be paying the dealership

Remember that the MSRP is the suggested price, so there’s room for you to negotiate. Knowing the difference between MSRP vs. invoice price can help determine a fair negotiating price.

How Do I Get a Fair Price?

The MSRP may be the manufacturer’s recommended price for the vehicle, but it’s not the price you might pay for said model.

• See what other Westport drivers have paid for the same vehicle on websites like Edmunds and Cars.com.
• Start your negotiation below the MSRP and work your way up from there—keep in mind any additional features you want and their cost.
• Some dealerships may let you see a car’s invoice price if you ask; however, they’re not obligated to. The invoice price can help you determine the price you should start negotiations.
• Work with multiple dealerships until you find the one you can get a price you are happy with.
• If you plan to lease, you can still negotiate the MSRP since the price you and the dealership agree on will determine your monthly payment costs.

Learn More About MSRP Meaning with Mercedes-Benz of Fairfield

Now that you know more about the meaning of MSRP, speak to our finance team for more information. Call (877) 557-5298 or contact us online to schedule an appointment. You can also start the process by getting pre-approved online from home. Find your next vehicle near Westport with Mercedes-Benz of Fairfield.