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What Is MSRP?

MSRP stands for Manufacturer Suggested Retail Price, and basically simply means the suggested retail price of a product that a retailer should must indicate in their stores. MSRP is a term that is more commonly used in the car retail sector. In other sectors, the more common term used is list price.

MSRP is also commonly called sticker price. The reason for this is that dealerships often used to place the MSRP for new cars on a big sticker that is stuck to the windshield as an effective way of attracting potential customers who pass by the dealership. The "sticker" is now considered an old tactic and this has now been replaced by putting a spec sheet on the side window that also indicates the MSRP. There are some dealerships that post the spec sheets on certain models but leave off the MSRP . This is often done with models that are in demand so that the dealership can negotiate the best possible price for it. If the MSRP for the in-demand models are posted, the interested buyers may already expect to pay much less than the car dealership knows the car retail market can actually hold. Buyers who ask for the models' MSRP the dealer can mention it and also talk about the other extras the car could have, which being the negotiations beginning with a higher price.

It should be noted that the MSRP for a car or any type of vehicle does not include other "expenses" like registration, taxes, transportation cost to the dealership and other assorted fees.

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