What Does MSRP Mean?

2023 Lexus RX

If you’re shopping for a luxurious new Lexus, you might be coming across a slew of new terms for the very first time. What’s the difference between MSRP vs. invoice pricing and other questions might come to mind. So, what is MSRP? MSRP stands for Manufacturer Suggested Retail Price.



The MSRP meaning essentially boils down to what the manufacturer believes a vehicle is worth and the suggested selling price in one. The MSRP is sometimes referred to as a list price, which is based on a variety of factors such as market factors, build materials, integrated technology, and more. Read on below with our financiers to get a better grasp of the MSRP meaning before you make your next purchase.

What is MSRP?

What is MSRP? As discussed, it’s the selling price auto manufacturers recommend for their dealer partners. Take a closer look at MSRP here so you can feel confident about your purchase when upgrading your commute from Cerritos to Long Beach:

  • The MSRP is the same across all dealerships since the price is set by the manufacturer.
  • While the MSRP is fixed for each model, they will vary drastically depending on what type of vehicle you’re shopping for. For example, the MSRP for an SUV will be quite different than the MSRP of a sedan.
  • You can find the MSRP on the manufacturer or dealer site to bring along to your negotiations.

How is the MSRP Set?

Now that you have a firm understanding of the MSRP meaning, you might be curious about how manufacturers arrive at that selling price:

  • The MSRP sets a standard price without any extra features or accessories.
  • Added features across higher trim levels will add proportional costs.
  • While the MSRP is a recommendation, it’s not always the selling price listed by a dealership.
  • Market conditions play a major role in the selling price of a vehicle. More popular models may sell above the MSRP, while less popular options may be purchased at a discount.

MSRP vs. Invoice Price

As you do your research and shopping, you might hear the term invoice price. What’s the difference between MSRP vs. invoice? Find out here:

  • Invoice price (or dealer price) is the figure that the dealership pays the manufacturer for a vehicle
  • MSRP, or “sticker price,” is the price you’ll need to pay for a vehicle.

Learn More About MSRP Meaning with Lexus of Cerritos!

Now that you know all about the definition of MSRP, you can feel empowered to shop like an expert during your next automotive upgrade. No matter what type of vehicle you desire for your Torrance travels, you can find your fit with Lexus of Cerritos. If you have any lingering questions about the automotive shopping process, visit us in Cerritos or contact us at your convenience.


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