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What Does MSRP Mean?

by Mary Jane Freeman

The manufacturer suggested retail price, or MSRP, is the price a car manufacturer suggests a vehicle should be sold for once it hits the dealership lot and is sold to the public. To come up with this figure, the manufacturer will consider factors such as the popularity of the vehicle in a particular location, manufacturing costs and trim options. However, dealers are not held to this price. They can charge anything they wish.

MSRP Located on Vehicle's Sale Sticker

It is not difficult to determine a vehicle's MSRP because it is typically listed on the sticker attached to the car window. However, just because the MSRP is attached to the sticker doesn't make it the "sticker price." The sticker price is the final price of the car -- what the dealer is charging the public -- and may include such things as the cost of transporting the vehicle to the lot, prepping the car for sale and installing aftermarket options.

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