What Does MSRP Mean? Explaining How New Cars are Priced

If you’ve been browsing our new vehicle inventory and seeing a certain acronym pop up over and over again, you may have asked yourself “What does MSRP mean?” All products, not just cars, have a Manufacturer’s Suggested Retail Price that is set before the item is put for sale. There are many factors that determine what exactly the MSRP of a vehicle will be. To learn more about it, visit us at Scott Mazda today.

What Is MSRP?

MSRP stands for the “Manufacturer’s Suggested Retail Price”. Also commonly referred to as the sticker price, you’ll be able to find the MSRP of a new Mazda vehicle in our showroom by checking near the front window. The MSRP is usually determined by taking the expenses for manufacturing the vehicle and adding whatever is needed to introduce a profit margin for the company and dealership.

What Factors Into the MSRP?

The MSRP of a specific vehicle includes several items of note. It starts with the base price of the specific model and trim level. Then, market conditions for the vehicle are taken into consideration. A more popular vehicle can mean a higher MSRP. Most vehicles have additional features or packages available for purchase – these are often factored into the MSRP for higher-level trims such as the Mazda CX-50 2.5 Turbo Premium Plus. Any warranties and service contracts are also built into the MSRP.

Can I Negotiate the MSRP?

Although the MSRP is the price suggested by the manufacturer, you are sometimes able to purchase a vehicle under the sticker price. For example, if you shop close to when model years switch over, you may be able to get the previous year’s vehicles for a heavily reduced price. There may also be fees to consider that aren’t part of the MSRP. Be sure to always ask our financial experts what the “out-the-door” price is to get a better idea of what you’ll have to pay.

Find Your Next New MAZDA Vehicle in Allentown, PA, Today

If you’re ready to shop for your next new vehicle, contact our Allentown, PA, Mazda dealership. Once you’re here, our team of financial experts can assist you with a lease or purchase. Schedule an appointment or stop by to get started!