What is MSRP?

If you’re just setting out on your search for a new Mercedes-Benz in Beckley, you probably have lots of questions about the auto industry terms you encounter. What does MSRP mean, and is it the same as price? MSRP stands for Manufacturer Suggested Retail Price — it’s what the auto manufacturer recommends a dealership charge for a vehicle, but it’s not necessarily the amount you’ll pay. 

In the guide below, join Mercedes-Benz of Charleston for a look at how new vehicle pricing works. Questions about the car-buying process? We’re happy to help if you reach out to our team of auto finance experts!

What Does MSRP Mean?

What is MSRP? MSRP is a vehicle’s manufacturer-recommended price. Other terms you’ll see while car shopping include base price, invoice price, and transaction price. All of these will impact how much you actually pay for your vehicle. So what does MSRP mean to the manufacturer, the dealership, and you? Here’s what to know about the MSRP before we look at how it’s set:

• Because MSRP is set by the manufacturer, a vehicle model has the same MSRP at all dealerships.
• But while the MSRP is the same, the same vehicle model may sell at different prices at different dealerships.
• Car-buyers can find the MSRP on the manufacturer’s website or the dealer’s website, and use it to their advantage in price negotiations.

How is MSRP Set?

What does MSRP mean to the manufacturer, and how is it set? The manufacturer sets the MSRP based on live and historical market data, manufacturing costs, sales processes, and average markups by Huntington dealerships. Here are a few more points to keep in mind:

• The MSRP is a vehicle’s price at its entry-level configuration and no added features or accessories.
• While the MSRP is recommended by the manufacturer, it’s not necessarily the price set by the dealership — or the price you’ll pay.
• Depending on how much the dealership paid for the vehicle, they may raise or lower the price of the car for Bridgeport car-buyers.
• Demand also impacts a vehicle’s price on the lot. Popular models may sell closer to the MSRP, while other models may sell at a discount.

How Do I Get a Fair Price?

Keep in mind that the MSRP is only a recommended price, not the price you’ll necessarily pay. Dealerships often pay thousands less than MSRP for a vehicle, so you may have more room to negotiate than you think. Try our tips for getting a fair price when you visit a dealership: 

• Do your research. Use Kelley Blue Book, Edmunds, or Cars.com to see what other Clarksburg drivers have paid for the same model.
• Start low. Begin negotiations below the MSRP and work your way up from there, leaving room in your budget for additional features.
• Find the invoice price. The vehicle’s invoice price is a good place to start your price negotiation. Your dealership may show you a car’s invoice price if you ask, although they’re not obligated to do so.
• Shop around. Compare prices at multiple Charleston-area dealerships until one makes an offer you’re happy with.

Lease or Finance a New Mercedes-Benz for Sale in Charleston

A fair price is a one that both you and the dealership are happy with. At Mercedes-Benz of Charleston, we’re committed to finding you a car that meets all your needs, at a price that fits your budget. Use our online buying tools to get started: calculate your monthly payments, apply for financing, and value your trade today!