When you are purchasing a new car, you may come across the term “MSRP” and wonder what it means. Our Mazda financial team is reviewing everything you need to know about this important finance term.
What is MSRP?
Manufacturer Suggested Retail Price, or MSRP, is typically displayed on a sticker on the car’s window or windshield. This is the list price recommended by the original manufacturer. It does factor in all visible features associated with that model, trim, and any packages, but not costs like delivery fees or paperwork processing.
MSRP vs Invoice Price
The invoice price refers to the amount that a dealership pays to purchase the car from the manufacturer and add it to our inventory. It typically includes the vehicle’s base price and additional advertising costs. Invoice prices may vary based on regional pricing differences and supply and demand.
Market Value’s Relation to MSRP
A car’s price is fluid, and the MSRP is not always the final price you will pay. For instance, certain specials or dealer incentives may lower the total cost of your car. Additionally, market value, which is different from MSRP, is the average cost fellow customers paid in a local area for a certain make, model, and trim level. The market value may influence the total amount you pay.
Schedule a Test Drive at Sentry West MAZDA
Now that you know what MSRP means, you can shop for a car more confidently. When you’re ready to discuss the details of your purchase, visit Sentry West Mazda.
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