What is MSRP?

2021 Honda CR-V on Highway

Shopping for a new Honda in Dayton? You’ve probably noticed that prices are listed as “MSRP” — but what is MSRP? Also known as list price, MSRP stands for Manufacturer Suggested Retail Price, and it’s a valuable tool for car-buyers. A vehicle’s MSRP is provided by the manufacturer, who calculates it based on historical sales data, market research, production costs, and more.

But what does MSRP mean when it comes to the price you’ll actually pay at a dealership? In the guide below, the Voss Honda finance department breaks down the meaning of MSRP, and shows you how you can use it to your advantage when purchasing your next Honda in Troy!

What Does MSRP Mean?

Manufacturers provide suggested retail prices for all of their models, but it’s still up to the dealership to decide on the actual selling price. Many factors enter the equation when it comes to determining MSRP, including base price, invoice price, and transaction price. So what does MSRP mean for you and other Sidney car-buyers? Learn more below:

  • MSRP is set by the manufacturer, so a vehicle will arrive at every dealership with the same MSRP.
  • No matter the location of the dealership, the MSRP will be the same.
  • You can always find the MSRP on the manufacturer’s website, and you can use it to negotiate a better price if a vehicle is priced above MSRP at a dealership.

How Do Manufacturers Calculate MSRP?

Manufacturers consider factors like live and historical market data, cost of materials, and production costs when calculating a vehicle’s MSRP. Read more about what MSRP means, below:

  • Base MSRP is set for a vehicle’s entry-level configuration. That means no optional features, accessories, or upgrades. Manufacturers also typically provide MSRPs for the full trim lineup.
  • Even though the MSRP comes from the manufacturer, dealerships are free to price a model higher or lower than the MSRP.
  • Why might dealerships raise or lower a vehicle’s selling price? They may lower the price if a vehicle is selling slowly, or raise the price if they feel that they paid a high invoice price for the vehicle.
  • Popular vehicles that sell well are more likely to be sold close to or at MSRP.

Rely on Voss Honda for Excellent Service and Fair Prices in Tipp City 

When it comes to the final sale, you and your dealership are looking for a price that you can both agree on. At Voss Honda, we want you to drive home to Sidney in a pre-owned or new Honda vehicle that you love, at a price that fits your budget. Plus, you’ll pay a lower price with our current new vehicle specials! Contact us today to learn more.

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