MSRP: Manufacturers Suggested Retail Price.

When you go to look at a new car there will be a sticker on the car that lists the MSRP. This sticker is placed there by the factory and has to be there by law. The MSRP sticker shows the price for the base model plus any options. It is important for you to know what the MSRP sticker price is, but don't get thrown by it. When you negotiate with the dealer, you're going to negotiate up from the dealer's invoice cost of the car not down from the MSRP sticker price. (See our Auto Prices page for how to calculate your offer). You will also see something called destination charge on the MSRP sticker.

Dealer's sticker.

It's often located next to the MSRP sticker. It's lists additional fees. If a car is selling well, dealers may increase their profits by adding on hundreds to thousands of dollars in extra fees. Similar to the MSRP sticker, it is important for you to know what the dealer's sticker is so you don't get thrown by it. However, you're not going to pay these fees. You will be negotiating based on the dealer's costs as listed on the invoice.

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