What Does MSRP Really Mean?October 21st, 2011 by Armaan Almeida
MSRP, or Manfacturer’s Suggested Retail Price, is the amount manufacturers would like dealers to charge for a given model and trim level. It is the most commonly quoted price for comparison purposes, including on this blog.
MSRP is not necessarily the same as what you’ll actually be paying. The sticker price, or what the dealer seeks to charge for a new car, is usually slightly lower than MSRP. The listed MSRP also excludes destination charges, which add around $750-$1,000. Then there are taxes, titling, documentation and other fees.
As the new car buyer you can often purchase a vehicle at significant discount over MSRP by watching for incentives and rebates, finding several quotes and through a little negotiation. Some hard-to-find vehicles just won’t sell at any lower price, or even thousands above MSRP if demand is very high.