What is MSRP?

If you’ve been browsing our new vehicle inventory, you may have noticed the “MSRP” listed. So, what is MSRP and why is it valuable information for Dalton shoppers? MSRP stands for Manufacturer Suggested Retail Price. This is the price point that the manufacturer recommends to the dealership, also known as the “list price”. However, it is only a recommendation. Find out how you can use this information to your advantage with the help of Welborn Chevrolet of Rome!

MSRP Basics

So, what is MSRP? It is the price that the manufacturer recommends based on market information on the vehicle’s popularity, the materials that go into building it, and more. Here are a few things to keep in mind:

• Because the MSRP is set by the manufacturer and not the dealership, the MSRP will be consistent from one dealership to another.
• Not every vehicle within the lineup has the same MSRP. Each sedan model will have its own individual MSRP, and each SUV model will have its own MSRP as well.
• The MSRP is easily found on the manufacturer’s website or dealership website, so be sure to research before you shop!

MSRP Calculations

Now that you have some background, how is the MSRP set?

• The MSRP is based on the vehicle’s entry-level configuration with no additional features or accessories. So any extras will add to the cost of the vehicle.
• The MSRP is not the set price of the vehicle in Rockmart, so the dealership may sell the vehicle at a higher or lower price.
• Demand plays a big role in the selling price. A more popular model will sell around the MSRP, while a less popular model may sell less than the MSRP.

MSRP vs. Invoice Price

We’ve been through the explanations of the MSRP or list price, but what about “invoice price”? 

• MSRP is the list price and sometimes can be referred to as the “sticker price”, or the amount you’ll pay the dealer.
• The invoice price is the dealer price or the amount the dealer will pay the manufacturer.

Getting a Fair Price

So, how do you use all of this information to secure a great deal in Adairsville?

• See what other drivers in the Dalton are paying by researching on sites like Kelley Blue Book, Edmunds, or Cars.com.
• Use this research to start your negotiations, you can sometimes offer less than MSRP to start and work your way up from there, but keep in mind that extra features will add to the cost.
• Dealerships are not obligated to show you the invoice price, but some are willing to share that information. Feel free to ask, since the invoice price can also help you negotiate more effectively.
• Planning on leasing instead of financing? The MSRP can still help you while negotiating your monthly payments!

Find Your Next Car at Welborn Chevrolet of Rome

Now that you’ve done the research, are you ready to start shopping? Contact us at Welborn Chevrolet of Rome with any questions, and feel free to stop by Rome to start browsing our inventory up close. You can also get a head start by applying for financing from home.