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What is MSRP?

MSRP is simply the manufacturer's suggested retail price - but only a fool would pay this price.

Unbelievably, 1 out of 10 car shoppers don't know you can negotiate below MSRP, and a much larger percentage have no idea how much lower you can typically negotiate.

You'll find the MSRP, also called the "sticker price", on the window of every new vehicle as required by law. The MSRP sticker will include all the standard features of the vehicle, plus all the factory-installed options along with their price.

The sticker also includes the fuel economy ratings and destination charge. Note that the MSRP does not include taxes, license, or registration fees.

Dealers expect you to pay sticker price, and sometimes even above that if the vehicle just hit showrooms and demand is higher than supply. In most cases, waiting a few months and allowing production to catch up to demand will save you thousands of dollars.

But in most other cases, you should be able to negotiate between $1,500 and $4,500 off the MSRP price on popular models that have ample supply.

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About The Author

Gregg Fidan Gregg Fidan is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.
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