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What Does MSRP Mean?

Oakland drivers who have been on the hunt for a new MINI vehicle have most likely noticed the letters “MSRP” in the price points of the vehicles they’re considering. But, what does MSRP mean? MSRP stands for “Manufacturer Suggested Retail Price,” and it’s the price that an auto manufacturer suggests any San Francisco dealership to sell a vehicle for. If you’d like to get a more in-depth answer to “what is MSRP?”, join the finance professionals from East Bay MINI in our helpful guide down below.

What is MSRP?

As you now know, a vehicle’s MSRP is what the manufacturer recommends it to be priced at, regardless of the location where the vehicle is being sold. Whether you’re in Livermore or Oakland, you’ll see the MSRP price, base price, invoice price, and transaction price, all while shopping for a new vehicle. With all of this to consider, what does MSRP mean for you?

  • The same make/model will have the same MSRP, regardless of the dealership you’re at.
  • The MSRP is not the same for every different model the manufacturer sells. For example, the MINI Hardtop 2-Door has a different MSRP than the MINI Cooper Countryman.
  • When you find the MSRP on the manufacturer’s website, you can use it to help you negotiate the price before you purchase your vehicle.

How is the MSRP Set?

The manufacturer combines manufacturing costs, average markups, historical market data, and sales processes to calculate a final price for its vehicles. Here are a few quick facts about MSRP:

  • The MSRP is the baseline price for each configuration without any additional features or upgrades.
  • MSRP is a recommended price, not the price the dealership is required to sell the vehicle for.
  • The demand for a vehicle can cause the price to rise closer to the MSRP.

How Do I Get a Fair Price?

Car shoppers in the Bay Area can get a fair price for a vehicle by following these tips:

  • Utilize resources like Kelley Blue Book, Edmunds, and
  • Research what others have paid in your area for the same vehicle.
  • Negotiate below the MSRP, then slowly increase the price.
  • You can ask for the invoice price, but it may not be accessible. This can help determine your base negotiation price.
  • Shop at several dealerships to see which one you feel most comfortable with and who offers you the best deal.

Explore MINI Leasing and Financing at East Bay MINI!

Are you ready to trade-in your current vehicle for a new or pre-owned MINI? Contact us to get started on the next steps with East Bay MINI today! Apply for pre-approval online to save time at the dealership, then take a moment to review our new MINI specials for a chance to save on our already competitive prices.

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