MSRP vs. Invoice

If you are in the market for a new vehicle, you have probably come across the term MSRP. MSRP stands for Manufacturer Suggested Retail Price and is what the manufacturer recommends a Mt. Laurel dealership sells a vehicle at, but invoice price also plays a factor in this. What’s the difference between MSRP vs. invoice? Learn the difference between the two with Lexus of Cherry Hill to make your car buying process smoother. 

MSRP Meaning: Consumer’s Point of View 

Before you go car shopping in Voorhees, here is an outline of what the MSRP actually means for you as a consumer.

• One model has the same price across every dealership. 
• The manufacturer has different MSRPs for different vehicles. For example, SUVs might have a higher MSRP than sedans and vice versa
• If you know the MSRP prior, it will give you leverage so you don’t drive off the lot feeling cheated.

MSRP vs. Invoice Price

You may hear the term “invoice price” while car shopping in Moorestown, but what’s the difference between MSRP vs. invoice?

• 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

MSRP Meaning: Dealership’s Point of View 

• The MSRP sets a vehicle’s base price at its entry-level configuration without additional features or accessories, which raises the price.
• The dealership will sell the vehicle at its discretion taking into account invoice price, which will determine the final price for Philadelphia shoppers.
• A popular model will most likely be sold closer to the MSRP, while a less popular model may be discounted.

MSRP vs. Invoice: How To Use Them To Get the Best Price

• It is ideal to start negotiations below MSRP.
• Request a copy of the invoice price to determine a good negotiating range. 
• Shop at multiple dealerships until you find the best price. 
• If you plan to lease you can still negotiate the MSRP since the price you and the dealer agree on will determine your monthly payment costs. 

Learn More About MSRP Meaning with Lexus of Cherry Hill! 

If you know what MSRP means and the difference between MSRP and invoice price, buying a car becomes a lot less stressful. Reach out to our finance center for a simple car buying process? Lexus of Cherry Hill helps you get the car you need at a fair price!