What Is MSRP?

If you are looking for a new vehicle and you keep seeing the acronym MSRP popping up on your searches, you may be curious, what is MSRP? MSRP stands for Manufacturer Suggested Retail Price, this is the number that the manufacturer recommends a Kirkland dealership sells a vehicle at.This is also referred to as the list price. It’s determined based on market information on the vehicle’s popularity, the materials that are needed for building it, and more. Explore more about the MSRP meaning and the difference between MSRP vs. invoice price with the help of the Honda of Kirkland finance team! 

What is MSRP?

Curious to know the details of what MSRP is? So, you know MSRP is the recommended price for dealers to sell a vehicle. Keep reading to learn more so you can feel confident when you go to buy your next vehicle near Redmond and Woodinville. 

• The MSRP remains the same for a model across all dealerships, as the price is set by the manufacturer.
• The MSRP is the same for each vehicle of the same model, but that won’t be the case for every vehicle the manufacturer sells. SUVs, for example, will have a different MSRP than a sedan or a truck. 
• Car buyers in Seattle can find the MSRP on the manufacturer’s website or the dealer’s website. Using this number can help when negotiating the price of a new vehicle. 

MSRP Meaning: How is the MSRP Set?

• The MSRP is the vehicle’s base price of its entry-level configuration – no additional features or accessories. 
• When features are added with higher trim levels the cost will rise accordingly. 
• The dealership may not necessarily sell the vehicle at the MSRP. 
• Depending on the price the dealership paid for the vehicle (the invoicing price) – the dealer may raise or lower the price of the car.
• Demand also has a part in the vehicle costs. A popular model will most likely be sold closer to the MSRP, but a less popular model may be set at a discount. 

MSRP vs. Invoice Price

Have you heard the term “invoice price” while car shopping, but aren’t sure what the differences are between MSRP vs. invoice price?

• Invoice price, also referred to as dealer price, is the amount a dealer pays the manufacturer.
• MSRP is the “sticker price”, or the amount the manufacturer suggests customers should pay for the model.

MSRP is the “suggested” cost, so don’t forget that there’s typically room to negotiate on your next Lynnwood model. Being aware of the MSRP vs. invoice price will help you determine what a fair negotiating price will be.

How Do I Get a Fair Price?

You don’t necessarily have to pay the MSRP. Here are some tips when it comes to shopping for a vehicle in Kirkland: 

• Do your research by checking what other Kirkland 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. Take into consideration the cost of any additional features you add to your model. 
• If you ask, a dealer may let you see the car’s invoice, but they are under no obligation to do so. However, the invoice price can help you determine where you should start your price negotiation.
• Keep an eye out at a variety of dealers for the price you are looking for.
• Even if you are going to lease the model, you can still negotiate the MSRP since the price you and the dealer agree on will determine your monthly payment costs. 

Explore More About The MSRP Meaning with Honda of Kirkland! 

After getting a better idea of how Honda vehicles get their price, you’re ready to get shopping! Take a look at our inventory of new vehicles, and explore more car buying tips with the team at Honda of Kirkland to be sure you are getting the best deal possible on your new vehicle.