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What Is MSRP? Manufacturer's Suggested Retail Price for New Car Buying

Understand these pricing terms to get a great deal

MSRP stands for the manufacturer's suggested retail price. As the name indicates, it is the price that the manufacturer recommends that dealers charge for the vehicle, plus any options or packages. Note that MSRP is just a suggestion, meaning that the dealership is within its rights to charge more or less than this starting figure.

Car buying has a language of its own, and MSRP is one of many car pricing terms you'll encounter at a car dealership, which include invoice price, sticker price, destination fee and more. It is important to understand the meaning of these pricing terms if you want to get the best deal. With this in mind, here are some frequently asked questions about MSRP and other car shopping terms you may come across.

Other pricing terms and questions

  1. Is MSRP the final price?
  2. How much off the MSRP can I negotiate?
  3. Can a car dealership charge more than MSRP?
  4. What is the "window sticker" on a car?
  5. What is the "sticker price" of a car?
  6. What is the "destination charge" on a car?
  7. What is the invoice price?
  8. What is the market value price?
  9. What is the Blue Book price?

Edmunds says

The market is always changing, and prices fluctuate rapidly. So it's important to shop around for the best deal. The car pricing terms here will guide you as you get quotes and consider various offers. As you shop, you will become an expert on car pricing in your area during the period of time you're shopping for your car. And when you know the numbers behind the deal, it will make you a better negotiator.

See Edmunds pricing data

Has Your Car's Value Changed?

Used car values are constantly changing. Edmunds lets you track your vehicle's value over time so you can decide when to sell or trade in.

Price history graph example