What Does MSRP Mean?

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If you’re on the hunt for a new car in greater Monroeville, you’ve assuredly come across plenty of confusing jargon. One of the acronyms that pops up the most is “MSRP.” If you’ve wondered, “what does MSRP mean?”, Rohrich Cadillac is here with an answer. MSRP means Manufacturer Suggested Retail Price. But what is MSRP, exactly? It’s the price that a manufacturer gives to their model as a suggestion for what dealers should charge customers. 

It’s determined by a number of factors, including the popularity of the model and the materials that were used to build it, but there’s so much more. Read on to find out everything you need to know about MSRP, and if you have other questions related to the car buying process, don’t hesitate to reach out to our finance team, or explore our other tips on topics like “whether to buy or lease.” 

What is MSRP?

As we stated earlier, the answer to the question, “what does MSRP mean?”, is simply that MSRP means Manufacturer Suggested Retail Price, or the manufacturer recommendation for how dealerships should price the models they sell. Oftentimes, MSRP is accompanied by other terms like base price, invoice price, or transaction price. Each of these terms is used to determine the value of the MSRP to the buyer and the dealership. 

Here some other things Upper St Clair drivers should keep in mind when dealing with MSRP:

  • The MSRP or base price for a model, should be the same regardless of where you choose to buy it. However, you will see some variation in price depending upon what trims you’re looking at, as well as the unique dealer and destination and handling fees. These fees can vary quite a bit depending upon where your dealer is located.
  • When car shopping, always look at the model’s MSRP and compare it to the price set by the dealer. Also look out for how much you’re paying in dealer and handling fees, and compare that to the fees associated with shopping at another dealership in greater Peters Township.

How is the MSRP Set? 

Any answer to the questions, “what is MSRP?” and “what does MSRP mean?”, should cover the factors that manufacturers use to determine what the MSRP for a model should be. A few factors include the cost to build the vehicle, the sales processes involved, the average markup by Peters Township dealership, and other market data. 

  • The MSRP specifically refers to the price of a model’s entry-level trim without any added packages or accessories.
  • If you opt for a higher trim or specific features, the price of your vehicle will increase. 
  • Most dealers will price in accordance with MSRP, but this is not always the case. 
  • Depending on the invoice price for the vehicle – the price the dealership paid for the vehicle – the dealer may raise or lower the price of the car for Washington shoppers.

Test Drive an Affordably Priced Vehicle at Rohrich Cadillac

You have answers to the questions, “what is MSRP?” and “what does MSRP mean?”. Now it’s time to research the MSRP of the model you’re interested in to make sure you’re getting a fair price. Then reach out to the finance department at Rohrich Cadillac for a transparent car shopping experience. We’ll work with you every step of the way to make sure you make a smart investment in your next car in Pittsburgh. While you’re here, be sure to explore our new vehicle specials to see just how much you can save on your next vehicle.

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