MSRP. You've probably seen these four letters printed on the spec sheet pasted onto the windows of new vehicles inside a dealership showroom at some point. But what does MSRP mean? Simply put, MSRP is an acronym that stands for "Manufacturer's Suggested Retail Price". That, in turn, is a number that the automaker (i.e. Dodge, Chrysler, RAM, or Jeep) suggests its dealerships sell a vehicle for.

Most dealerships in Green Bay, Kaukauna and beyond sell vehicles at or close to the MSRP, as doing so helps ensure they remain financially solvent. There may, however, sometimes be wiggle room to negotiate new vehicle prices. Want to make sure you get a good price on your next vehicle? We are here to help at Kolosso CDJR!

So, What is MSRP, Really?

The Manufacturer's Suggested Retail Price - or MSRP - is a recommended price. Dealers don't have to sell the vehicle for that price, but a lot of research goes into setting the price so that it's universally fair for both dealers and consumers. Most people only will encounter the term "MSRP" when shopping for a vehicle, and it may be found alongside other terms such as base price, invoice price, and transaction price. Here's more information on all that:

  • The same vehicle model (i.e. Jeep Cherokee) should always share the same MSRP across all dealerships since the manufacturer sets it.
  • While the MSRP is the same for each vehicle of the same model, it won't be the same for every vehicle the manufacturer sells. SUVs for example have a different MSRP than sedans or trucks.
  • Car shoppers can find the MSRP on the manufacturer's website or the dealer's website, and they can use it when negotiating the price of their new vehicle. 

How is the MSRP Set?

How does the manufacturer compute the MSRP of a car? It will use information such as:

  • Manufacturing costs
  • Sales processes
  • Average dealer markups

What does the manufacturer do with this information? It weighs it all so that it can create a fair price that's also competitive with what other automakers are charging for similar vehicles! Here are some other things to keep in mind regarding MSRP:

  • The MSRP sets a vehicle's base price at its entry-level configuration without add-ons, features, or accessories. That's why a loaded vehicle will often exceed the base MSRP. But each trim level usually also has its own unique price.
  • Features and trim levels will raise the cost of the vehicle accordingly. 
  • While the MSRP is recommended by the manufacturer, it's not necessarily the price the dealership will choose to sell the vehicle at. Factors affecting how elastic the MSRP is include the stock of that vehicle, how long it's been on the lot, the time of year, and more.
  • 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 Oshkosh and Waupaca shoppers.
  • Demand also plays a role in how much a vehicle costs. A popular model will most likely be sold closer to the MSRP, while a less popular model may be set at a discount. 

How Do I Get a Fair Price?

Looking for a great price on your next vehicle? While our finance center always tries to do right by our Green Bay area customers, if you're looking to snag an even better deal, here's what to do:

  • Do your research by checking what other Manitowoc and Neenah drivers have paid for the same or similar models on sites like Kelley Blue Book, Edmunds, or Cars.com.
  • Start your negotiating with a price below MSRP, and work your way up from there.
  • Know that some dealers may let you see a car's invoice price (the price they pay for it from the manufacturer) if you ask, but they're under no legal obligation to do so. 
  • Shop at multiple dealerships until you find the one that can get you a price you like. But also know that we do our best to provide prices that are competitive, and want to earn your business!
  • If you plan to lease you can still negotiate the MSRP since the price you and the dealer agree on will determine your monthly payment costs. 

Get Your Next New Vehicle at Kolosso CDJR!

A "fair price" is the price both the buyer and the dealer are satisfied with. The dealership makes enough of a profit to pay commissions and make a profit, and the customer gets good enough of a deal to be satisfied they've shopped smart. Ready to find your next new vehicle at a fair price, whether that's equal to or less than the MSRP? Kolosso CDJR is here to help! Contact us for additional information.