What Is MSRP?

2021 Ram TRX driving through sand

What is MSRP, what does it mean, and how does MSRP vs. invoice pricing work? These are all questions that many drivers have when they come into Green Dodge looking for a new car. This is why we're here to cover everything about this little four-letter acronym that you'll likely see when looking at dealer pricing of your favorite Dodge,Ram vehicles for sale near you. Read on for everything you need to know about MSRP! If you have any questions as you read, simply contact a Green Dodge location closest to you near Decatur!

MSRP Meaning

Drivers from Chatham and Rochester alike often have similar questions when approaching the car buying journey. One such question often approached with trepidation is "What is MSRP?" 

Basically, in a nutshell, a vehicle's MSRP, or manufacturer's suggested retail price, is the recommended price at which dealers should sell a vehicle. Here's more information:

  • A particular model (i.e. Chevy Tahoe) will share the same MSRP across all Chevy dealerships, as the price is set by the manufacturer.
  • While the MSRP is the same for each vehicle of the same model, it won't be the same for every vehicle the manufacturer sells. For example, a Chevy Tahoe will have a different MSRP from a Chevy Equinox.
  • Car shoppers can find the base MSRP (what most people refer to as MSRP) for a vehicle on the manufacturer's website or the dealer's website, and they can use it when negotiating the price of their new vehicle. Note that each trim level in a model lineup will have its own unique price too.

MSRP vs. Invoice Price

You may hear the jargony term "invoice price" while car shopping, but what does it mean? What's the difference between MSRP vs. invoice price? Here's what you need to know, provided courtesy of our finance department at Green Dodge:

  • Invoice price (or dealer price) refers to the amount a dealer pays the manufacturer 
  • MSRP is the "sticker price" i.e. the amount you'll be paying the dealer

Remember: MSRP is a "suggested" value, so there's often room to negotiate when buying a vehicle. Knowing the MSRP vs. invoice price will help you determine how much wiggle room there is for bargaining. It's worth noting that checking fair market values can be helpful too, as sometimes, in periods where vehicles are in short supply, that makes price inflate regardless of how much the dealership paid for the vehicle.

Learn More About MSRP Meaning with Green Dodge!

Now that you've found out what the meaning of MSRP is and how it can different from invoice price, the next step is seeing how much you can save on your next vehicle of course! Our new vehicle specials take a good amount off of MSRP prices, so that you can enjoy your favorite model for less.