Tuesday, August 10, 2021

MSRP Explained: What to Know About This Acronym

 

When buying a new car, you’ll see the acronym MSRP quite a bit. For first-time car buyers, there may be some confusion when these four capital letters are seen next to the price. What exactly does MSRP mean and how does it relate to Honda financing?

MSRP Explained

MSRP is an acronym for manufacturer-suggested retail price. So, what does this mean? This is essentially the vehicle’s price as established by the automaker. One of the keywords here is “suggested,” meaning the price isn’t set in stone and is open for negotiation at the dealership’s discretion. Dealerships, in fact, often lower the MSRP due to a clearance sale to make room for incoming inventory. You may also hear or see the MSRP referred to as the sticker price.

MSRP and Pre-Owned Cars

It should be noted that pre-owned vehicles do not contain an MSRP. The pre-owned vehicle has already depreciated, so the price you see on the vehicle windshield represents the dealership’s price after factoring depreciation, reconditioning, etc.

MSRP Vs the Base Price

Also, keep in mind that the MSRP should not be confused with the base price. The latter is the vehicle price minus any additional options. The MSRP is the price of the vehicle as it is in the showroom and factors additional fees like add-ons and destination charges. As such, the MSRP is always higher than the base price.

Visit Keyes Honda and see the MSRP of the latest models like the Honda HR-V and more. The MSRP gives you a general idea of what you can expect to pay, but speak with our finance department to determine the final cost with all additional fees factored in.

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