Ever poke your head in your local Elgin dealership's inventory online? Then, chances are you've probably seen these four letters: MSRP. But what is it? MSRP is short for Manufacturer Suggested Retail Price and is the price that the manufacturer determines the dealership should sell one of their new models at. Furthermore, the MSRP depends on a number of factors, such as how popular the car is, how much is spent creating it, and more. Find out more about the MSRP meaning with our finance team at Elgin CDJR and even see what the deal is with MSRP vs. invoice price below!

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MSRP Meaning

See what else the MSRP means, so you can understand what the numbers you're looking at the next time you're car shopping near Bartlett: 

  • You can expect a specific new model to have the same MSRP at all dealerships as long as the same currency type is used. However, if you're looking for a new Chrysler, Dodge, Jeep, or RAM in the Chicagoland area, you can save on your purchase in the Chicagoland area when you take advantage of our specials programs at Elgin CDJR! 
  • However, do keep in mind that the MSRP will vary across the models even if they're still the same brand. For example, a Jeep Grand Cherokee will have a different MSRP than a Jeep Gladiator. 
  • You can easily find the MSRP either on the OEM (original equipment manufacturer) site or on the local South Elgin dealership site. 

How is the MSRP Determined?

Now that you know what MSRP is, you might be wondering how it is determined. Let's take a look below: 

  • The MSRP sets a model's base price at its entry-level configuration without additional features or accessories. 
  • If you want additional packages or want to upgrade to a higher configuration, you will notice the MSRP increasing accordingly. 
  • Even though the MSRP is what the manufacturer suggests dealerships use, it doesn't have to be the price dealerships sell the model at. 
  • So how do dealerships determine the price they want to sell the car for? This will depend on the invoice price or the price the dealership paid for the vehicle. They can lower or increase the selling price in the area depending on factors, like nearby accessibility and demand, to make a profit. Say, if there are more demands for a new RAM 1500 in the Chicagoland area, you can expect the selling price in your local dealerships to be closer to the MSRP. 

MSRP vs. Invoice Price

We mentioned invoice price for a bit, but what is the difference between the MSRP and invoice price? The MSRP is the price you will be paying the dealership. On the other hand, the invoice price is how much the dealer pays the manufacturer for that same car. If you know the MSRP vs. invoice price for a particular model you want, you can try to negotiate for a better deal as the MSRP is only a suggestion.

How Do I Get a Fair Price?

Do the following before settling on the first offer you've come across:

  • Research on your own by checking what other Streamwood drivers have paid for the same model on sites like Kelley Blue Book, Edmunds, or Cars.com.
  • Start your negotiation below the MSRP and then, work your way up from there. If you want optional features or trims, be sure to account for that price change. 
  • If you ask, you might be able to see a dealer's invoice price. Though, they're not required to. The invoice price can help you make a stronger negotiation. 
  • Shop at multiple dealerships and see what the offers are to find the best deal. 
  • Even if you lease, you can still negotiate to get something lower than the MSRP! 

Explore More About MSRP Meaning with Elgin CDJR

Still curious about MSRP? Feel free to contact our finance experts and they can answer any questions you have. When you feel confident in getting a fair deal in the Chicagoland area, our finance experts can also tell you about our specials and savings to help you lower the MSRP as much as possible!