MSRP is an abbreviation for “manufacturer’s suggested retail price.” Just as it reads, a car’s MSRP comes from the manufacturer to the dealer with a suggested retail price, also known as “list 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. The total price shown on the window sticker, including the MSRP, options, destination fee, and additional charges like gas-guzzler tax, is the “sticker price.”
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.
