what is msrp for cars

MSRP stands for "manufacturers suggested retail price". It is the price that car manufacturers recommend dealerships sell their vehicles for. A new cars MSRP is usually displayed on a window sticker, which is why it is also known as the "sticker price". Federal regulations require MSRP on new cars to be displayed on a window sticker listing the vehicle’s model year, trim level, EPA ratings, factory-installed options, and other information, including the MSRP. However, the law does not require dealers to sell vehicles for MSRP or sticker price. The manufacturers do not own the dealerships, which set the pricing independently. They may mark down specific models to spur sales and mark up others where demand exceeds supply. MSRP is a guidepost in the purchase process, helping consumers determine value.