What Does MSRP Mean?

Are you currently shopping for a new vehicle in the North Tonawanda area? If so, you likely have a lot of questions. A common question we hear at Basil Ford of Niagara Falls is, "What is MSRP?" MSRP stands for Manufacturer Suggested Retail Price. It is a price recommendation from the automaker for Niagara Falls dealerships, and it is determined by market information on the vehicle's popularity, the materials that go into producing the car, and much more. Basil Ford of Niagara Falls further explains MSRP below. 




What is MSRP?

The MSRP is a price recommendation from an automaker to help dealerships set their prices. Most shoppers in the Grand Island area will only encounter the term MSRP when shopping for a vehicle. This is also when you will likely see terms like base price, invoice price, and transaction price. These numbers are used to determine the value of the MSRP.

  • The same vehicle model should share the same MSRP across all dealerships because the manufacturer sets the MSRP, not the dealership. 
  • The MSRP varies for each individual model the manufacturer sells. For instance, SUVs will have a different MSRP than a sedan or a truck. 
  • If you are shopping for a car in the Lockport area, the MSRP for a particular make and model can be found on the manufacturer's website or the dealer's website.

    • How is the MSRP Determined?

    How does the manufacturer decide on a MSRP? The automaker will take a look at manufacturing costs, sales processes, and even the average markups by dealerships to set the MSRP. 

    • The MSRP sets a vehicle's base price at its entry-level configuration. This is without additional features or accessories. 
    • Additional features and higher trim levels will raise the cost of the vehicle accordingly. 
    • Dealerships do not have to sell the vehicle at the MSRP.
    • Depending on the invoice price for the vehicle - the price the dealership paid for the vehicle - a dealership can set the price higher or lower. 
    • Demand also plays a role in deciding MSRP. A popular model will most likely be sold closer to the MSRP, however a model that is less popular with Niagara Falls drivers could be sold for a discounted price. 

      • Find the Car of Your Dreams for a Fair Price at Basil Ford of Niagara Falls

      A "fair price" is the price both the buyer and the dealer are satisfied with. At Basil Ford of Niagara Falls, you can feel confident that you are getting a great deal on the new Ford vehicle of your dreams. If you have any questions about a particular model or your financing options, be sure to contact us at your earliest convenience.Â