What Does MSRP Mean?

Car-buying paperwork
If you’re in the market for a new vehicle then you probably have a lot of questions about the car buying process like what MSRP is and how is it determined. MSRP stands for Manufacturer Suggested Retail Price and is a number that the manufacturer recommends a San Diego dealership sells a vehicle at. Also known as the list price, the manufacturer determines this price based on market information on the vehicle’s popularity, the materials that go into building it, and much more. Learn more about what MSRP means, how it’s set, and how you can use it to get a fair price on your next car with the team at Mossy Toyota!

What Is MSRP?

The Manufacturer Suggested Retail Price – the MSRP – is a recommended price for dealers to sell a vehicle. Most La Jolla shoppers will only encounter the term MSRP when shopping for a vehicle, and it will be accompanied by other automotive terms like base price, invoice price, and transaction price. Each of these terms is used to determine the value of the MSRP to the buyer and the dealership. Learn more about what an MSRP is below:

  • The same vehicle model should share the same MSRP across all dealerships since it’s set by the manufacturer.
  • While the MSRP is the same for each vehicle of the same model, it won’t be the same for every vehicle the manufacturer sells. For instance, SUVs will have a different MSRP than a sedan or a truck.
  • Car shoppers can find the MSRP on the manufacturer’s website or the dealer’s website, and they can use it when negotiating the price of their new vehicle.

How Is The MSRP Set?

Hands Doing Calculations with Calculator
How does the manufacturer determine the MSRP? The manufacturer uses information like manufacturing costs, sales processes, and even the average markups by Chula Vista dealerships with live and historical market data to determine what a vehicle’s MSRP should be. Read below for more information on how an MSRP is set:

  • The MSRP sets a vehicle’s base price at its entry-level configuration without additional features or accessories.
  • Additional features and higher trim levels will raise the cost of the vehicle accordingly.
  • While the MSRP is recommended by the manufacturer, it’s not necessarily the price the dealership will choose to sell the vehicle.
  • Depending on the invoice price for the vehicle – the price the dealership paid for the vehicle – the dealer may raise or lower the price of the car for Carlsbad shoppers.
  • Demand also plays a role in how much a vehicle costs. A popular model will most likely be sold closer to the MSRP, while a less popular model may be set at a discount.

How Do I Get A Fair Price?

The MSRP may be the price the manufacturer recommends for the vehicle, but it is not the price you have to pay for a vehicle. Oftentimes the difference between what the dealer paid for the vehicle and the MSRP is several thousand dollars, meaning that the dealership will still make a profit even if you buy the car at a price lower than the MSRP. Read our tips for getting a fair price at a dealership below:

  • Do your research by checking what other San Diego drivers have paid for the same model on sites like Kelley Blue Book, Edmunds, or Cars.com.
  • Some dealers may let you see a car’s invoice price if you ask, however they are not obligated to. The invoice price can help you determine where you should start your price negotiation.
  • Shop at multiple dealerships until you find the one that can get you a price you are happy with.
  • If you plan to lease you can still negotiate since the price you and the dealer agree on will determine your monthly payment costs.

Get Your Next Toyota Vehicle At Mossy Toyota!

A “fair price” is the price both the buyer and the dealer are satisfied with. The driver gets to drive home knowing they got a good deal and the dealership has made a profit. Learn more about the MSRP of your favorite Toyota vehicle when you visit the Mossy Toyota finance center. We’ll help you get a great price on your next vehicle when you apply for financing! Get the car you need for your La Jolla lifestyle when you shop with Mossy Toyota!

More from Mossy Toyota

  • Toyota RAV4 Trim Levels

      If you’re looking to upgrade your La Jolla commutes with the new RAV4 trims, you’ll be delighted to hear the 2021 Toyota RAV4 configurations are priced between $26,250 MSRP* and $41,575 MSRP*. The latest lineup of Toyota SUVs is an excellent choice for families thanks to its affordable pricing and the full suite of high-tech…

  • 2021 Toyota Camry Configurations

    Searching the La Jolla car market for a reliable, cutting-edge sedan? Then you’ll be blown away by the incredible 2021 Toyota Camry configurations available now at Mossy Toyota. Whether you’ve owned a Toyota sedan before or want to experience this high-end driving experience for the first time, there’s bound to be a Toyota Camry trim level that…

  • How Much Can a Toyota Tacoma Tow?

    Are you a La Jolla shopper in the market for a capable Toyota truck that can provide the heavy-duty fortitude you need for all your towing jobs? Then you’ll be absolutely blown away by the impressive 2021 Toyota Tacoma towing capacity which reaches up to 6,800 pounds when properly outfitted with the proper Toyota Tacoma tow…

Saved Vehicles


You don't have any saved vehicles!

Look for this link on your favorites:


Once you've saved some vehicles, you can view them here at any time.

Contact Us

(858) 581-4000

Call Now

4555 Mission Bay Drive • San Diego, CA 92109

Get Directions

Today's Hours:

Open Today! Sales: 8:30am-8pm

Open Today! Service: 7am-5pm

Open Today! Parts: 7am-5pm

Mossy Toyota 32.8042521, -117.2169939.