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What Does MSRP Mean When Car Shopping?
What Does MSRP Mean When Car Shopping?

What Does MSRP Mean When Car Shopping?

July 14, 2022

The MSRP is the suggested price for a vehicle sale.  MSRP is an acronym that means the Manufacturer’s suggested retail price, it is also known as other names such as sticker price, list price, asking price and so on. On the side window of the vehicle you are assessing for purchase, there is an information sheet that the MSRP is posted on. Briefly, the MSRP is the amount or selling price the vehicle manufacturer proposes that the dealer sells the vehicle for.

The price suggested is not the fixed price for which the vehicle must sell.  In this article, MSRP will be broken down below, and we will explain what it means and how you should apply it to the purchase of your vehicle. You can ask one of the dealership’s sales consultants for the MSRP of the vehicle you are considering, if you can not find it on your own.

How is MSRP determined?

If you are not experienced in the auto industry, it is uncommon knowledge that there is a federal law that instructs dealerships to show the MSRP of every vehicle they have on sale. The MSRP is determined based on the components used during the making of the vehicle. Some dealerships display the MSRP for the vehicle’s make while including different options for the model’s midrange as it ranges from the basic to the most expensive trims. The most expensive trims are more expensive because they include more niceties, tech, and interiors. All these changes and adjustments are things that can lead to the dealership adding more money. It is highly intriguing and important to note that other retail products aside from cars also have MSRPs though there is not a federal law that demands retailers display those MSRPs as is the case with automobiles for customers when Car Shopping.

Let’s take a closer look at an example of MSRP to help explain what this acronym means and why it is so important when it comes to car sales. Let’s say there is a situation in which you and your friends go car shopping and find a stunning new luxury Benz with an MSRP of $75,000. The auto dealer then prices the vehicle at $85,500.  The MSRP is sometimes lower than the manufacturer’s suggested sales price so you might feel as though you are overpaying for the vehicle. Most dealerships will not bring the sale price of the vehicle down to the suggested retail price of $75,000, but negotiating the price to a favorable amount close to the MSRP or below is advisable.

Let’s go through the difference between dealer cost, factory invoice price, and Manufacturer’s suggested retail price.

MSRP and dealer invoice price are not similar or related to each other. The amount that a dealership pays to the manufacturer of the vehicle on a receipt is the invoice price. For example, if a vehicle is worth $35,000 at MSRP, the amount on the invoice price would likely be about $33,000. This simply means that the car dealer paid less to obtain the vehicle. Other factors that determine how expensive the car is are the expensive features added to the car, the more added or customized features, the larger the difference between the invoice price, MSRP, and the selling price. It is also important to know that the invoice price might not be the sum total of what was paid to the manufacturer.

How much below MSRP is a good deal?

For the bulk of the car-buying populace, if you can grab a new vehicle for less than the MSRP disclosed on the side window, you are getting a fair deal. To be honest, most auto dealerships are opposed to selling their vehicles for less than the MSRP.  A lot of auto industry experts will insist that buying a vehicle at or close to the MSRP is the best deal you can get, but now you know better.

Can vendors sell a vehicle over MSRP?

Yes, they can, selling a vehicle over the MSRP is coming to be increasingly common as supply decreases and demand increases. factors such as computer chip shortages, increased demand, a limited number of that particular model, fuel scarcity, inflation, and all, have the potential to increase the sale price that much higher than the MSRP.

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As a company we learned a long time ago just how significant it is to have talented, loyal and motivated staff to serve our clients in every aspect; before, during and of course even after such an important vehicle purchase. Even though this will always be an ongoing process, this organization has been fortunate to have attracted and retain such extraordinary individuals at every single level in this company.

We are honored to serve all Signature Auto Group clients past, present and future clients in the major areas of the United States and around the rest of the world. Signature wants their customers to enjoy life to its fullest. We also have high standards that the staff agrees with and are committed to providing you with the service you deserve. The sales staff is extremely knowledgeable about our products and is there to get you the fantastic vehicle that you want and desire.

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Come on in and check out our extensive inventory that includes all the latest makes and models of vehicles. It doesn’t matter whether you are wanting to purchase or lease; we have the perfect plan for you. And don’t forget to check out our specials, we are always having great lease specials on a lot of the new vehicles in stock.


For over two decades, Signature Auto Group has provided proficient lease services. We maintain high ratings on digital platforms such as Cars.com and DealerRater, praised for our excellent customer service and vehicle selection. Initially from the New York area, we have been accredited by both the BBB (Better Business Bureau) and the NYCC (New York Chamber of Commerce).

Now, Signature Auto Group is expanding our services across the New York City area, providing fantastic lease deals for Brooklyn and NYC Drivers. Choose from our wide range of vehicles and secure the necessary insurance and financing all in one place. Our centrally located office is found at 9265 4th Ave, Brooklyn, NY 11209.

If you are tired of the traditional dealership model, Signature Auto Group offers a digital forward experience. Through digital innovation, customers can complete the buying or leasing process from the comfort of their homes. Look through our extensive selection of vehicles, file the appropriate paperwork alongside our experienced representatives, and simply pick a delivery date. Signature Auto Group will deliver your new car delivered straight to your front door.

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Signature Auto Group is recognized as the best car leasing company in Brooklyn, New York City, Queens, and surrounding areas. Here are just some of the reasons customers keep coming back to our services.

  • Price Match Guarantee. We work tirelessly to provide the best available prices. We will beat or match the price of any competition in the area. Additionally, we accept discounts provided by both unions and corporations.
  • Convenience. As a one-stop solution, we can provide insurance and financing services to make your purchase convenient.
  • Experience Staff. Our staff has over 60 years of experience in the automotive industry. As such, they can provide a wealth of knowledge and guide you through the buying process.
  • No Hidden Fees. Signature Auto Group prides itself is being upfront about our prices.
  • At-Home Delivery. Adding to our collection of convenience features, we offer the option of an online process, even delivering your new car to your home.
  • Flexible Leases. We offer the traditional 24 and 36-month lease duration. However, we also offer a large selection of lease transfer vehicles, allowing for even shorter lease durations.
  • Easy Financing. Signature Auto Group will use its extensive industry connections and knowledge to secure you a suitable and favorable loan, even if you have poor credit.
  • Great Selection. We are leasing all makes and models in Brooklyn, allowing for an unprecedented amount of vehicles to choose from.
  • Easy To Use Website. Many functions are found throughout our website. You can view our large selection of vehicles, submit information regarding a car you want to sell, contact our staff, and more!

Endless Inventory of the Best Car Leases in New York City

While some dealers are having trouble filling up their lots, we have an abundance of choices. Thanks to Signature Auto Group being the price destination for you to trade in or sell your car in Brooklyn, we are able to maintain a large selection of vehicles.

If your preferred vehicle is not found on our lot, we are also a premier auto broker in Brooklyn. Simply let our team know what car you are looking for, and we’ll start the search. Not only will we find you a car, but we’ll also negotiate on your behalf for the best price. It does not matter if you are pursuing a car for lease or purchasing a new or used car. We will make sure that you’ll be able to find your perfect vehicle.


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