What is MSRP?

You’re looking for your next car, and there’s something you’ve noticed listed at every New Orleans dealership on every new vehicle. It’s the MSRP. What is MSRP? It is the Manufacturer’s Suggested Retail Price, but knowing what it stands for is not the same as fully understanding MSRP, meaning you should fully understand how it impacts what you actually pay for your car. So, let’s take a closer look at what the MSRP means to you. And we’ll do a MSRP vs. invoice comparison.

What is the MSRP Meaning?

So, what is MSRP, and what does it mean to you? We’ve broken it down below:

• It is the price suggested, not required. And the manufacturer, not the dealership, sets the MSRP, meaning it should be consistent across all dealerships.
• Each make, model, and type of vehicle a manufacturer makes will have its own MSRP.
• The MSRP can be found on the manufacturer’s website and is sometimes displayed on the dealer’s website.
• You can use the MSRP to negotiate a price with the dealer.
• The MSRP is the starting price for the base trim and does not account for upgrades and added features.
• The MSRP is the suggested price by the manufacturer. The dealer is not bound to it.
• The price the dealership pays the manufacturer can impact the final price of the car, as the dealership needs to make a profit.
• A popular car that is high in demand will be sold for a higher price than one that is not in high demand. So, a vehicle may end up being sold for a higher or lower price than the MSRP.

MSRP vs. Invoice Price

We hear a lot of discussion among Metairie drivers regarding the MSRP vs. invoice price. Some folks are under the impression that these terms mean the same thing, which isn’t the case. The invoice price is the price the dealer has to pay the manufacturer. On the other hand, the price that the manufacturer suggests the retailer sells the car for is the MSRP, meaning it is the higher price so that the dealer can make a profit. 

Check Out the Great New Cars at Leson Chevrolet Company, Inc. of Harvey

The cars here at Leson Chevrolet Company, Inc. are all reasonably priced, regardless of the MSRP. While you’re here, make sure to check out our new vehicle specials. Our dealership is conveniently located near Belle Chasse. We’re here to help, so contact us today!