MSRP

The manufacturer’s suggested retail price (MSRP) is the baseline price set by the automaker for a new vehicle. It is often displayed on the vehicle’s window sticker and includes the cost of the base model plus standard features, but excludes taxes, registration, destination charges, and optional add-ons.

The MSRP serves as a guideline for both consumers and dealers but is not necessarily the final transaction price. Dealers may sell cars above MSRP when demand is high or offer discounts below MSRP when supply is abundant.

For buyers, the MSRP provides a useful benchmark for negotiations, helping them assess whether they are getting a fair deal. It also plays a role in financing and leasing, as loan amounts and residual values are often tied to the MSRP.

While consumers should not expect to always pay MSRP, understanding its purpose and limitations helps them enter negotiations more prepared. In some cases, government-mandated disclosures require MSRP to be displayed to prevent price manipulation and ensure transparency.