Need a new set of wheels? If you’re browsing through vehicles on a dealer’s website or in-person at the lot, you’ll likely see an acronym over and over—MSRP. What does this acronym mean, and how can it affect the price you pay for a vehicle? Every new car has an MSRP on the pricing sticker on its window. Here’s what it means, and how you can get the best possible deal for your next vehicle.
What Is MSRP?
MSRP is an acronym that stands for “Manufacturer’s Suggested Retail Price.” As you’re browsing new vehicles on a car dealership’s lot, you’ll spot the MSRP on the sticker on each car’s window. This figure is the price the manufacturer suggests the dealer ask for the vehicle. The MSRP exists as a guideline, and most dealers stray slightly from this figure—either up or down.
How Does MSRP Affect the Price of a Car?
While the MSRP figure provides a good benchmark of what dealers can get for a particular vehicle, each dealer has the freedom to ask for a higher or lower price. Vehicles that are highly sought-after might incur a market adjustment from the dealer, which will boost the asking price above the MSRP. Dealers can do this if they feel confident that demand is high enough, and that customers are willing to pay more than the suggested price for a particular model.
On the other hand, if a dealer determines a vehicle is in low demand—or if it’s sat on the lot for a long time—the asking price may be much lower than the MSRP. The MSRP is often the starting point for negotiations, and most customers insist on a final figure that’s less than the MSRP.
Getting the Best Deal on a Vehicle
While some dealers have a little bit of wiggle room to negotiate, it’s tough to get a good deal on a vehicle in this day and age. If you want to save money on a new set of wheels—and get the best bang for your buck—leasing used is the practical, affordable alternative to buying a new vehicle.
How does leasing used save you money? Most used car leases are on vehicles that are just two to three years old. When you lease any vehicle, the monthly payment reflects the cost of depreciation to the vehicle as you use it. Since most of the depreciation on cars occurs during their first few years on the road, you have less of a depreciation gap to cover. That means your monthly payments will be significantly lower than the price you’d pay to buy and finance a new vehicle. You can get a nearly new car, at a fraction of the price.
Leasing Used Saves You Money
No matter what type of vehicle you’re looking for—from cars to trucks, vans to SUVs—MSRPs have never been higher. The best way to avoid the high price of a new vehicle is to lease used. Ready to get more car for your money? Reach out to the used car leasing financing experts at Drivrz Financial at (800) 436-0476, and we’ll connect you with a participating dealer near you!