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What is MSRP?

Tiny car with coins and finance paperwork

If you are currently shopping for a new car, especially if you are a first-time buyer, you most likely have a list of questions about pricing and financing options. For example, what is MSRP? MSRP is a frequently used term when discussing the cost of a new vehicle, and it stands for Manufacturer Suggested Retail Price. Simply put, MSRP is the price that the manufacturer suggests dealerships should charge for the car.

What Does MSRP Mean?

Hoover drivers in the market for a new Genesis vehicle need to understand the other factors that go into pricing a new car before they begin negotiating the price. Buying an automobile is a different shopping experience because the MSRP, or sticker price, is often a jumping-off point for negotiations. Read ahead to learn the definition of the terminology you are going to encounter when negotiating for the best deal:

  • Invoice Price: The invoice price is what the dealership paid the manufacturer for the vehicle, advertising, and other costs. It is essential to be aware of this amount because it increases your leverage when negotiating.
  • Official Price Tag: Hoover drivers are likely to see the MSRP listed on advertisements and the price sticker on the driver’s side window of the vehicle in the lot. Do not be fooled by this number! Remember, the MSRP is the price the salesperson is ready to negotiate with the buyer.
  • Rough Invoice Price: The rough invoice price is where the negotiating process can become tricky. The manufacturer typically has a holdback price. This number is a percentage of the invoice price that the manufacturer is prepared to pay the dealership once they sell the vehicle. Thereby, the invoice price is a rough estimate of the actual bottom-line cost of the car, which means the dealership makes a profit if the car sells at the invoice price. In addition, manufacturers include the advertising costs in the invoice price to prevent a loss, and the fees reflect in your final bill of sale. Hoover buyers can negotiate these additional costs, but the dealership does not legally have to return the difference.

How is the MSRP Determined?

How does the manufacturer determine the automobile’s MSRP? Read below to find out!

  1. The MSRP begins at the lowest price for the trim level.
  2. The MSRP rises according to additional features and higher trim levels.
  3. The MSRP is a recommended price for the vehicle, but the dealership may sell the car for the price they choose.
  4. The invoice price determines the final price for Hoover shoppers.
  5. Demand determines the final price of the vehicle – highly popular Genesis sell closer to the MSRP than less popular models.

Tips to Negotiate the Best Possible Price at Genesis of Hoover

Haggling at a fair price for your new Genesis car will not be stressful if you have researched the process that determines the MSRP. Then, follow the tips below to get an optimal price at Genesis of Hoover:

  • Research what other local shoppers are paying for the Genesis model you are interested in on sites such as Edmunds, Kelley Blue Book, and Cars.com.
  • Begin the negotiation process below the MSRP, working up from there to include the optional features you desire in your new car.
  • Inquire about the invoice price. Keep in mind that the dealership is not under obligation to share the number with you, but it will be helpful in the negotiation process if you have this information.
  • Shop around! Visit multiple dealerships until you score the deal you want.
  • Do not discount the idea of leasing if you’re not quite ready to invest in financing a car – you have the power to negotiate your monthly lease payments to fit into your budget.

Drive Home in Your New Genesis From Genesis of Hoover Today!

A “fair price” is the number that makes the buyer and dealer happy. So if you are ready to drive home knowing you got an excellent deal, contact us today to schedule an appointment to test drive your new car. Then, save yourself time by visiting our finance center online, and let Genesis of Hoover help you purchase your dream car!

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855-427-7414

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1595 Montgomery Highway • Hoover, AL 35216

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Today's Hours:

Open Today! Sales: 9am-8pm

Open Today! Service: 7:30am-6pm

Open Today! Parts: 7:30am-6pm

Genesis of Hoover 33.400803, -86.804878.