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.

Answer
“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.”
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Rachel Juillerat
Answered on Sep 10, 2021
Rachel Juillerat has her Master's in Publishing & Writing from Emerson College. You can view her work in the Independent, Cupid's Pulse, and the Penmen Review. She has worked in personal finance for five years before transitioning to insurance. She lives in Boston, where she spends her time exploring small New England towns, learning new skills, and napping through her cat's zoomies.
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