What “MSRP” means
MSRP stands for manufacturer’s suggested retail price. Federal law requires every new car to carry a window sticker (often called the Monroney label) listing the base price, each factory-installed option, the destination charge and the total. That total is the MSRP most people mean when they say “sticker price.”
The key word is suggested. The dealer bought the car for less (see invoice price), and the manufacturer may also pay the dealer holdback and incentives later. Depending on supply, a given model may sell below MSRP, at MSRP, or, on hot models, above it with a market adjustment.
How it shows up at the dealership
You will see MSRP on the window sticker and on the dealer’s website, often next to a lower “internet price” or “sale price.” Watch for a second sticker beside the factory one, the dealer addendum, which adds things like protection packages and markups on top of MSRP. Those lines are not part of MSRP and are almost always negotiable.
Worked example · illustrative numbers, not a quote
Reading a window sticker
| Base price (trim) | $36,000 |
| Factory options (tech package, paint) | $2,600 |
| Destination charge | $1,395 |
| MSRP on the Monroney sticker | $39,995 |
A dealer addendum listing $1,495 of add-ons would push the “asking price” to $41,490. The addendum is the dealer’s, not the manufacturer’s.
What to do
- Use MSRP to compare the same trim across dealers, then negotiate the out-the-door price, not the percentage off sticker.
- Check what similar cars actually sell for in your area on pricing sites before you decide what “a good deal” is; the gap to MSRP varies by model and month.
- Ask for the addendum to be removed or itemized and treat every line on it as optional.
What to say
“I’m comparing the same trim at three dealers. I’m looking at MSRP of $39,995 and I don’t want the addendum items. What’s your best out-the-door price in writing?”
Also called: sticker price, manufacturer’s suggested retail price.