What Does MSRP Mean?

If you’re entering the new vehicle market in Omaha, you probably have a lot of questions about the process. One common question we hear from our Gretna drivers is, “What is MSRP?” So, what does MSRP mean? MSRP stands for Manufacturer Suggested Retail Price and indicates the price directive from the automaker. Also known as the list price, MSRP is determined by market information, materials used in production, and many other factors. Read on with our finance team to learn more about what does MSRP mean, how it’s set, and how you can use that info to get a fair price on your Bellevue upgrade below!

What is MSRP?

So, what is MSRP? MSRP is a recommendation handed down from auto manufacturers to dealerships about pricing. Along with MSRP, when you shop for your next ride with us in Lincoln, you may also see terms like base price, invoice price, and transaction price. Each of these terms is factored into the value of the MSRP. Learn more about MSRP below:

• The MSRP should be the exact same for a particular model, regardless of dealership. 
• The MSRP is fixed for each individual model, but it won’t be the same across different vehicles. For example, a fully-loaded Honda Pilot will have a different MSRP than a base-trim Honda Civic.
• You can find the MSRP on the Honda website or among our listings. This can help you feel prepared at the negotiating table.

How is the MSRP Set?

Now that you know what MSRP is, you may be curious how it actually gets set. Honda uses information like manufacturing costs, sales processes, dealership markups, live and historical data, and more to determine the MSRP of any given vehicle. This process inspires confidence knowing that prices aren’t arbitrarily set to maximize profits, rather they are determined by a number of factors to be fair to all. Here’s more information on how MSRP gets set:

• MSRP sets the base price of a vehicle at its entry-level without any extra features. 
• Additional features and trim upgrades will raise the price of a vehicle accordingly. 
• The MSRP is a recommendation, but it is not a price that is set in stone. A dealer may choose to sell a vehicle at a different price. 
• The invoice price determines how much the dealer paid for a vehicle. That price can impact what a dealer chooses to sell a model for. 
• Demand is also a crucial factor in price setting. A popular model will usually sell for close to the MSRP, while a less popular option can often be scored at a discount. 

How Do I Get a Fair Price?

The MSRP is what a manufacturer thinks a vehicle is worth, which doesn’t mean that’s the price you have to pay. In many cases, the invoice price and MSRP can be separated by a few thousand dollars, so there’s often an opportunity to negotiate. Discover our tips for securing a fair price below:

• Explore what other drivers have paid for the same model using online tools like Kelley Blue Book, Edmunds, or Cars.com.
• Start your negotiation under the MSRP and work up from there. Keep in mind that extra features will raise the price of your intended purchase. 
• You can ask to see the invoice price of any model. While not every dealer will offer this information, knowing what a dealer paid for a model can help you establish a level negotiation. 
• Shop around at different dealerships until you find the deal that suits you best. 
• The MSRP is still negotiable even when you lease. Keep this in mind since the MSRP will determine your monthly payments. 

Get Your Next Honda Vehicle at Honda of Lincoln!

Now that you know that a fair price is one that is in line with the maker’s recommendations and leaves you feeling satisfied, you can shop with Honda of Lincoln with total confidence. Our expert team can guide you to the right vehicle at a fair price, and can even help you decide if you should lease or buy. 

If you have any questions about the MSRP of your favorite vehicle, contact us today. When you are ready to upgrade, you can apply for financing from the comfort of your own home. Find the perfect Honda model with Honda of Lincoln today!