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Knowledge Base
What is MSRP?
MSRP stands for Manufacturer Suggested Retail Price, and means just that - a suggested selling price for the retailer.
The MSRP is posted on the federally required window sticker often referred to as the Monroney sticker. It may not be removed by anyone other than the purchaser.
It is important, however, to remember that each dealer is free to set the sale price of any vehicle.
The MSRP of a vehicle does not include taxes, registration, transportation to the dealership and other miscellaneous fees. So, the price "out the door" might be close to, or even higher than, the MSRP.
In the old days, MSRPs used to be set fairly high, which allowed a good-sized discount. In recent years, however, the trend has tended towards setting the MSRP closer to the actual market value. Still, the actual price paid to the manufacturer by the dealer, and all rebates/incentives the manufacturer provides to the dealer, are not common knowledge. Meaning there is no guarantee that sticker prices are not inflated.
A car that is not "in demand", should probably go for a lot less than the MSRP. While new cars with a long waiting list, might sell for more.
Big car dealers, with the ability to purchase in bulk from the manufacturer, might also tend to sell less than the MSRP.
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