PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Is it illegal to sell above MSRP?
Is it legal for a car dealership to sell above the MSRP? I’m searching for a new car and I want to make sure I get the best deal.
Rachel Juillerat · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“It is legal for a car dealership or any other retailer to sell above MSRP.
This is because the MSRP is the suggested sticker price for an item. It’s basically the minimum price a retailer needs to sell the product at in order to make a profit. Dealerships are free to sell vehicles at whatever price they like.
This is good news for you because this means you can negotiate the price when you
buy a new car
. In fact, dealers expect negotiating with you.When buying a new car, you always want to research so you can have more negotiation power. You should look into:
- MSRP
- Customer rebates
- Dealer specials
- Dealer invoice pricing
The dealer’s invoice price is what the dealership paid for the vehicle. The invoice price may be less or comparable to the MSRP.
You should also learn how in-demand your vehicle of choice is. A high-demand vehicle gives you less room to negotiate.
On average, paying about 2% above the dealer’s invoice price is a good deal. While your target is around 2% above the dealer’s invoice price, leave some wiggle room for the dealership to budge.
Once you get a good price for your new car, keep in mind that lenders will require full coverage. The higher the coverage, the higher your car insurance rates, but that doesn’t mean you have the empty your pockets for the proper coverage. Try using the
Jerry
app to help you save money. Jerry compares rates from 50 of the top providers and delivers the best deals to your phone in minutes for free.” View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance for Your Car
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
