When shopping for a new vehicle, you’ll almost certainly come across the acronym MSRP. But just what is MSRP? Simply put, it stands for Manufacturer Suggested Retail Price, which is the recommended selling price determined by the automaker. This price is calculated based on several factors. Below, find out more about the MSRP meaning and the factors that influence it, and if you have any questions or you’re in the market for a new vehicle in the Nampa or Caldwell area, don’t hesitate to contact the Dennis Dillon Kia team.
MSRP Meaning
So, what is MSRP? As mentioned above, it’s the dollar amount that the manufacturer has determined is a proper selling price for the vehicle. Here are some important facts to remember as you car-shop in Meridian and beyond:
- The same make, model, and trim will have the same MSRP no matter where you shop because the automaker–not the dealership–sets the MSRP.
- MSRPs vary between vehicle types, so not all vehicles made by a manufacturer will have the same MSRP. For example, a Kia hatchback will have a different MSRP than a Kia SUV.
- The MSRP is always listed on the automaker or dealer’s website. Feel free to use the MSRP as a guideline when negotiating the vehicle price.
Factors That Affect MSRP
Several considerations impact how MSRPs are set:
- A base MSRP (“Starting from…”) is for the entry-level trim without any added features or accessories; as you move up the available trim levels, MSRPs get progressively higher.
- If a certain vehicle is in high demand, it will almost certainly come with a higher MSRP; conversely, less popular vehicles will have a lower MSRP.
- The MSRP is only the manufacturer’s recommendation, which means individual dealers can ultimately set their own prices; in most cases, invoice price (see below) plays a role in how dealers set their prices.
MSRP vs. Invoice Price
As we explore the MSRP meaning, we must distinguish between MSRP vs. invoice price. While they may sound similar, these are two different concepts. The MSRP is the automaker’s recommended selling price, also known as the sticker price or list price. Invoice price, or dealer price, is the amount the dealer pays the automaker for the vehicle.
As you shop for a new vehicle, knowing the MSRP vs. invoice price can inform your negotiations and ensure you get the best deal.
Find Your Next Vehicle at Dennis Dillon Kia
We’ve covered a lot of crucial information here that can help you navigate your next vehicle purchase: What is MSRP? How is it set? What are the differences between MSRP vs. invoice price? At this point, you’re in a good position to start the search for your next vehicle. After you check out our inventory, stop in for a test drive around Boise. If you’ve already found a vehicle in our lineup that checks all the boxes on your wishlist, get a jumpstart on the buying process by applying for financing online. We look forward to helping you drive off the lot in the vehicle of your dreams, at a price you can afford!
