What is MSRP?

2021 Alfa Romeo Giulia Parked

If you are shopping for a new vehicle in the Los Angeles area, you may have questions about the MSRP for your preferred model. So, what is MSRP? MSRP stands for Manufacturer Suggested Retail Price. This is the amount for a particular model that the automaker recommends as a starting price for a dealership. You may also have heard this amount referred to as the list price. The manufacturer looks at a variety of factors when setting the MSRP. Below, this guide will cover more about the MSRP meaning as well as the difference between MSRP vs. invoice price. 

MSRP Meaning

As mentioned above, the MSRP meaning refers to the amount the manufacturer recommends for a particular model when a dealership is setting its prices. Here are a few MSRP basics to keep in mind. 

  • Because the MSRP is set by the automaker and not a specific dealership, it will be the same across all dealerships. 
  • MSRP remains the same for each vehicle in the same model lineup, but it will vary from model to model. For example, the MSRP of a base model Guilia will be the same anywhere you go, but the MSRP of a Guilia and Stelvio will be different. 
  • MSRP for any make and model can be found on the manufacturer’s website or the dealership website. 

Determining MSRP

  • MSRP is the base price of a vehicle for its entry-level configuration. No additional features or accessories are included in this amount. 
  • The cost of the vehicle will rise accordingly as you add on different available amenities.
  • The dealership does not have to sell the vehicle at its MSRP. 
  • Invoice price can also play a role in how the dealership prices a vehicle. 
  • Demand is another factor for a dealership when setting prices. A popular model will most likely be sold closer to the MSRP. However, a less popular vehicle could be priced at a discounted rate. 

MSRP vs. Invoice Price

How does MSRP vary from the invoice price of a vehicle? Compare MSRP vs. invoice price below: 

  • Invoice price (or dealer price) is how much the dealership pays the automaker for a particular vehicle. 
  • MSRP is the “sticker price.” This is what shoppers pay the dealership. 

Find the Vehicle of Your Dreams at Alfa Romeo of Glendale

Now that you know more about the MSRP meaning, why not start your shopping journey at Alfa Romeo of Glendale? When you shop with us, you can feel completely confident that you are getting a great deal on the Alfa Romeo vehicle of your choice. We will help you secure some of the most competitive financing rates in the Glendale area. Contact us today to get started! 

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