Price is undoubtedly a huge factor for many car buyers. However, some drivers don’t understand the costs associated with a vehicle or how its price is determined. Our Alfa Romeo finance experts at Helfman Alfa Romeo are diving into all the details.
MSRP Overview
A vehicle’s MSRP is the Manufacturer Suggested Retail Price, sometimes referred to as the sticker price or list price. This is the price that the vehicle’s manufacturer suggests that the vehicle be sold for at our dealership. This isn’t always the amount you pay.
The Purpose of MSRP
MSRPs are set by automakers to help keep their vehicles at a set price at every dealership. Naturally, dealerships have the final say in what their vehicles sell for. The price that the vehicle actually sells for may fluctuate depending on supply and demand or even with sales and incentives.
How MSRP is Determined
When an automaker determines a vehicle’s MSRP, it takes into account a variety of factors. The price includes all the automaker’s costs in manufacturing and selling the vehicle. It is also designed to give both the manufacturer and the dealership a profit from the sale.
Invoice Price
Keep in mind, the MSRP is different than the invoice price. The invoice price is the price that dealers must pay the automaker for the car. Typically, an invoice price is lower than the MSRP because, as we mentioned, the manufacturer sets the price knowing the dealership needs to make a profit off the vehicles they sell.
Start the Alfa Romeo Finance Process Today
Our team is committed to delivering a top-tier car-buying experience. Whether you have questions about financing or want to explore our gorgeous Alfa Romeo lineup, we’re ready to help. Visit Helfman Alfa Romeo to get started today!
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