What is MSRP?
MSRP stands for Manufacturer Suggested Retail Price, and means just that —- a suggested selling price for the retailer. It is a term used mostly in the car industry; otherwise the term list price is more commonly used. MSRP is sometimes called the “sticker price,” as dealerships used to place the MSRP of each new car on a large sticker on the windshield as a way to advertise to passing traffic. This practice has been largely replaced with a spec sheet on the side window that notes the MSRP. Some dealerships leave the MSRP off the spec sheet of certain models that are in demand, hoping to negotiate the best price possible. If the MSRP is posted, potential buyers might immediately expect to pay less than the dealership knows the market will bear. If the buyer has to ask for the MSRP, the dealer can talk about it along with various “extras” the vehicle has, starting the negotiations from a higher price. The MSRP of a vehicle does not include taxes, registration, transportation to the deal
The MSRP, or Manufacturer’s Suggested Retail Price, is the price set by the manufacturer. The MSRP price shown for a vehicle includes destination charges and minimum required equipment. MSRP, destination charges and minimum required equipment appear as separate prices on the manufacturer’s window sticker. A dealer, however, can choose to sell a vehicle above or below its listed MSRP.
