What Is MSRP?

Some San Angelo drivers ask us at Little Honda about MSRP meaning, so we thought we had better clear it up. What is MSRP? It stands for Manufacturer Suggested Retail Price. It’s the amount that the auto manufacturer recommends as the sales price set by the dealership. Sometimes it is also known as the list price. The auto manufacturer chooses this price based on market information on the car’s popularity, the cost of materials to build it, and more. Learn more about MSRP vs. invoice here with your friends at Little Honda.

How is the MSRP Set?

• The MSRP develops a car’s base price for its entry-level configuration without any additional amenities for your Abline drives.
• As you add features or upgrade to higher trim levels, the price of the vehicle increases.
• The MSRP is only a recommendation by the manufacturer. It’s not necessarily the list price the dealership will decide on as the market price.
• Market demand also impacts how a vehicle is priced. A popular model will likely be sold much closer to the MSRP, or even more, while a less popular model might sell at a discount.

MSRP vs. Invoice Price

What is the difference between MSRP vs. invoice price?

• Invoice price (or dealer price) is the amount the dealer pays the manufacturer. It is the amount that the dealership paid for the vehicle.
• MSRP is the “sticker price,” or the amount asked for by the dealership in Midland. You might pay more or less, depending on negotiations.

Knowing the MSRP vs. invoice price can help you determine what a fair price will be to pay for your new vehicle.

How Do I Get a Fair Price?

The MSRP is not the price you must pay for a vehicle.

• Do your research and find out what other San Angelo drivers paid for the same model on websites like Edmunds, Kelley Blue Book, or Cars.com.
• Begin your negotiation below the MSRP, and work up from there. Remember that any additional features will increase the price.
• Some dealers may show you the car’s invoice price if you ask, but they aren’t required to show it.
• Shop at multiple dealerships around Odessa until you find the model and price you want.
• Even if you plan to lease, you can still negotiate the MSRP.

Get the Best Price on a New Honda at Little Honda

Now that you know more about MSRP meaning and MSRP vs. invoice, are you ready to start shopping for your new car? Feel free to contact our finance center to start the car-buying process or complete an online finance application. You might also check out our new vehicle specials!