what is msrp

MSRP stands for "Manufacturers Suggested Retail Price". It is the price that a manufacturer recommends a product be sold for at the point of sale. MSRP is commonly used in the automotive industry, but it can also be applied to other retail items such as appliances and electronics. Dealers are required by law to post the MSRP on the windows of new vehicles for sale. The actual selling price may be higher or lower than the MSRP, and retailers are not required to use this price. The MSRP can include manufacturing and sales costs as well as the average retailer markup. Buyers use MSRP to determine whether or not a dealership is offering a fair deal on a vehicle and to negotiate to a price lower than the vehicle's MSRP.