What Does MSRP Mean?

The MSRP, short for Manufacturer’s Suggested Retail Price, refers to the amount, which the car manufacturer recommends to the car dealers as the selling price for the car. It is always a bit higher than the dealer price, but it never varies from one car dealer to another. If you are wondering what does MSRP mean, remember it includes the vehicle’s standard equipment and factory-default installations. What it does not include any additional features by the dealer or other charges. The car dealer is in no way obligated to use the suggested price, which is the reason why many often lower the price to attract more buyers.

What Does MSRP Mean?

The MSRP is the price, which the manufacturer of an automobile suggests to the car dealer. It is also known as the retail price, which the retailer should ask for the car from the manufacturer. The MSRP is although a suggestion, but the car dealer can ask for more or less than the amount suggested by the car manufacture.

For example, if the particular car model is high in demand, the dealer can include a slight adjustment, which can increase the price above the MSRP. The car dealer can follow this pattern if they feel the market demand for that vehicle is high enough to ask for more amount than the one by the manufacturer.

Only buying the best car model would not take care of things; you also need to take care of the vehicle. We recommend you search for the best maintenance tips to keep your vehicle in top form.

Now, let us understand the different elements, which define the entire process of selling and buying a car.


If you want to know what does MSRP mean, remember it is also known as the sticker price of the car. It is the price, which the car manufacturer suggests to the car dealer when selling the model.


What Does MSRP Mean
MSRP is the price recommended by the manufacturer. Source: Pixabay

The Base Price

The car manufacturer sets the MSRP on the assumption the consumer will never buy the lowest version of the car. In such a scenario, the retail price set around that of a midrange car model, which also provides other features like Bluetooth connectivity.

The base price refers to the suggested amount of the car without any additional features. It is the lowest price, which the car manufacturer recommends for selling this model.

Sale Price

Sale Price is the price on which you agree to purchase the vehicle. The MSRP can be more or less than the sale price, but it will depend on the market and the bargain.

What Does MSRP Mean
Sale Price is the final price on which the consumer agrees to buy the car. Source: Pxfuel


Without any doubt, the MSRP does play an essential role in giving the car dealer an idea about the actual cost of the vehicle. However, the consumers must know what does MSRP mean to get the best price for that new car they intend to buy.