What is MSRP?

Signing Finance Documents for Car


When shopping for a new vehicle at Sid Dillon, you will see the MSRP for each model posted on the vehicle. What is MSRP? MSRP stands for “Manufacturer Suggested Retail Price.” You may also have heard of this amount referred to as the list price. This amount, which is determined by the automaker, helps a dealership like Sid Dillon price a vehicle. The manufacturer determines MSRP by taking into account the market information on vehicle popularity, the materials that go into producing the vehicle, and more. If you have questions about the MSRP meaning or the difference between MSRP vs. invoice price, this guide can help. 

MSRP Meaning

Interested in learning a bit more about the MSRP meaning? The MSRP is the value that is recommended by the manufacturer so that the dealership can price the vehicle accordingly. Here are the basics of MSRP. 

  • Because the MSRP for a specific model is set by the automaker, it is the same across all dealerships. 
  • MSRPs vary for every vehicle the manufacturer sells. 
  • MSRP information can be found on the dealership website or the manufacturer website. This amount can also be used in negotiating a price for a new car, truck, or SUV.

Determining the MSRP

  • The MSRP sets a vehicle’s base price at its entry-level configuration. This amount does not include optional features or accessories. 
  • Additional features or upgrading to a higher trim level will raise the cost of the vehicle accordingly. 
  • MSRP is only a recommendation from the automaker. It does not determine the price at the dealership.
  • The invoice price, or the amount that the dealership paid for the vehicle, could have an effect on the cost of the car at the dealership. 
  • Demand can also influence price. If a vehicle is more popular with Omaha and Lincoln drivers, it will likely be sold closer to the MSRP. On the other hand, some less popular models could be offered at a discount as an incentive. 

MSRP vs. Invoice Price

Wondering about the difference between MSRP vs. invoice price? While the two may sound similar or interchangeable, they are both different. 

  • Invoice price is the amount a dealer pays the manufacturer for the vehicle.
  • MSRP is the “sticker price.” This is the amount that a car shopper pays for the car. 

Learn More About MSRP at Sid Dillon

Now that you know a little more about MSRP meaning and how the MSRP affects the price you pay at the dealership, why not stop by Sid Dillon to explore our current inventory? We offer affordable pricing on a vast selection of brand new vehicles. Contact us today for more information, and don’t forget to take a look at our new vehicle specials.


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