What is MSRP? The Manufacturer's Suggested Retail Price Explained
MSRP is the sticker price set by the manufacturer, not the amount you should pay. Learn how much below MSRP you should negotiate in 2026.
Term: MSRP
MSRP (Manufacturer's Suggested Retail Price) is the sticker price set by the automaker. It's a starting point for negotiation, not the final price. In a normal market, expect to pay 3-8% below MSRP on most vehicles.
Verdict: Legitimate
N/A - This is the sticker price
What's Included in MSRP
- • Base Price: The manufacturer's price for the base model
- • Factory Options: Packages, accessories, colors selected at build
- • Destination Charge: Shipping from factory to dealer ($1,095-$1,695)
When to Pay MSRP vs. Below
| Scenario | Target Price |
|---|---|
| High-volume sedan (Camry, Accord) | 5-10% below MSRP |
| Popular SUV (RAV4, CX-5) | 3-6% below MSRP |
| Hot vehicle (new model, limited) | MSRP (no markup) |
| Exotic/ultra-rare | MSRP or over (if allocation) |