MSRP stands for Manufacturers Suggested Retail Price, which is the price that the manufacturer recommends dealerships sell their vehicles for. It is also known as the "sticker price" and is displayed on the window sticker of a new car. The MSRP is based on the specific factory options that come with the vehicle. It includes the base price for the particular trim level, as well as the prices of any options, packages, or extras its equipped with. The MSRP can also include manufacturing and sales costs as well as the average retailer markup. However, it does not include any accessories or extended service programs sold by the dealer, nor does it usually include sales or incentives.

Dealers are required by law to post the MSRP on the windows of new vehicles for sale. However, the MSRP is typically the starting point for negotiations, and the actual sale price can be lower or higher than the MSRP. If the model is in high demand, the buyer may end up paying the full MSRP, but they can almost always negotiate with the dealer. The cost difference between the MSRP and invoice price can vary widely, both proportionally and by dollar amount. The invoice price is the amount that the dealer pays the manufacturer for the vehicle.

In summary, MSRP is the manufacturers suggested retail price, which is the price that the manufacturer recommends dealerships sell their vehicles for. It is displayed on the window sticker of a new car and includes the base price for the particular trim level, as well as the prices of any options, packages, or extras its equipped with. The MSRP is typically the starting point for negotiations, and the actual sale price can be lower or higher than the MSRP.