Saved Vehicles

What Does MSRP Mean?

Couple Leasing A Car

If you live in the Oshkosh-area and are shopping for a new vehicle, you’ve probably encountered the acronym MSRP. What is MSRP? And what does MSRP mean? MSRP stands for Manufacturer Suggested Retail Price and indicates the price the manufacturer recommends dealerships sell a vehicle at. MSRP is also sometimes called the list price.

This price is determined by the manufacturer by using a few pieces of data. These include:

  • Market information on the vehicle’s popularity
  • The cost of materials that go into building it
  • And more

Keep reading this guide from the team at Holiday Automotive to learn more about what MSRP means, how it’s set, and how you can use it to get a fair price on your next car.

What is MSRP?

The Manufacturer Suggested Retail Price – aka MSRP – is the price the manufacturer of the vehicle recommends to the dealer. The majority of Sheboygan shoppers only encounter the acronym MSRP when shopping for a vehicle.

Usually you will find “MSRP” alongside other automotive terms like base price, invoice price, and transaction price. The value of the MSRP is determined using these terms, both for the buyer and the dealership. These are some more details on what exactly an MSRP is:

  • The MSRP is set by the manufacturer, so the same vehicle model ought to share the same MSRP across all dealerships.
  • The MSRP differs from model to model, and isn’t the same for every vehicle the manufacturer sells. An SUV will have a different MSRP from a sedan or a truck.
  • The MSRP should be on the manufacturer’s website or on the dealer’s website. Car shoppers who find it there can use it to negotiate the price of their next vehicle.

How the MSRP is Set

Several pieces of information go into setting a MSRP. This includes information like:

  • Manufacturing costs
  • Sales processes
  • Even the average markups by West Bend dealerships with live and historical market data

The manufacturer uses all of these to determine what a vehicle’s MSRP should be. Here’s some more specific information on how an MSRP is set:

  • The MSRP determines the vehicle’s base price at its entry-level configuration. That means without any additional features or accessories.
  • Once additional features and higher trim levels are added, they raise the cost of the vehicle accordingly.
  • Even though the MSRP is recommended by the manufacturer, the dealership may choose to sell the vehicle at a different price.
  • Depending on the price the dealership paid for the vehicle – the invoice price – the dealer could raise or lower the price they offer West Bend car shoppers.
  • Demand also plays a role in how much a vehicle costs. If a model is less popular, it could be set at a discount, while a popular model will most likely be sold closer to the MSRP.

How to Use MSRP for a Fair Deal

Just because the MSRP is the price the manufacturer recommends, that doesn’t mean it’s the price you will have to pay. A dealer may have paid as much as several thousand dollars less than the MSRP for the vehicle, which means they’ll still make a profit even if they sell below the MSRP. These some tips for getting a fair price at a dealership using MSRP information:

  • Go to sites like Kelley Blue Book, Edmunds, or and research what other Fond du Lac drivers have paid for the same model.
  • When you negotiate, start below the MSRP. Then, work your way up from there. Keep in mind any additional features you want and what they may cost.
  • If you ask, some dealers may let you see a car’s invoice price. However, they aren’t obligated to. The invoice price could help you determine at what price you ought to start negotiating.
  • Shop around. Check multiple dealerships until you find the one that can get you a price you are happy with.
  • Even if you plan to lease, you can still negotiate using the MSRP. The price you and the dealer agree on will determine your monthly payment costs.

Get Your Next Car at Holiday Automotive!

We hope that this guide has helped you learn more about MSRP and how to negotiate a good price. Now, come to Holiday Automotive to get your new car! Connect with our finance center and we’ll be able to work out a deal that works for you. Or, if you still have questions about buying or leasing terms, contact us and we’ll be able to answer them.

Get More For Your Trade
Contact Us

Saved Vehicles

You don't have any saved vehicles!

Look for this Save icon

Once you've saved some vehicles, you can view them here at any time.

Holiday Automotive 43.7877556, -88.4874357.