What Does MSRP Stand For?

September 24th, 2021 by
2021 Mitsubishi Outlander PHEV Driving

While you’ve been shopping for a new vehicle, you might have seen the MSRP price listed, or seen stickers for MSRP vs. out the door price or MSRP vs. invoice price. Why are these so important to know, and how can they be valuable information for Scottsdale drivers? MSRP stands for Manufacturer Suggested Retail Price, and you might often see MSRP vs. invoice price.But what does MSRP mean? This is the price point that the manufacturer recommends to the dealership, also known as the “list price”. However, it is only a recommendation, and many times you’ll find vehicles priced below the MSRP! This also can matter when you’re looking at MSRP vs. out the door price or MSRP vs. invoice prices. Find out how you can use this information to your advantage with the help of Bell Road Mitsubishi when shopping for a new car, and then contact us with any questions.

The Basics of MSRP

So, what is MSRP? What does MSRP stand for? To start with, the meaning of MSRP 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. As mentioned before, MSRP stands for Manufacturer Suggested Retail Price. 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 Peoria, 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.

MSRP vs. Out the Door Price

When you’re comparing MSRP vs. out the door price, it’s important to remember that MSRP is the price of the vehicle before you pay any fees, additional packages and accessories, warranties, and taxes. The out the door price however refers to the total price of the car, including all fees, which can often be much higher than the listed sticker price of the vehicle. 

Getting a Fair Price

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

  • See what other drivers in the Scottsdale 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!

Come Into Bell Road Mitsubishi Today For Your Next Vehicle

Now that you know the difference between MSRP, invoice price, and out the door prices, you’ll be able to make a more informed decision about the car buying process. Our finance department is filled with experts on the car buying process, and they are ready to help you through each step of the process, but the first step is you applying for financing online.


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