What is MSRP and how does it work?

Can you define MSRP and explain how it works?

Answer
“Great question!
MSRP means Manufacturer’s Suggested Retail Price. It is the price the manufacturer recommends the car dealership sell their product for.
The MSRP will be the same for each dealership that purchases products from the same manufacturer. That said, your car dealership is not obligated to sell a vehicle at this price. They can sell above or below the MSRP.
While paying more than the MSRP sounds problematic, it works in your favor because it gives you room to negotiate and helps you save money.
You can also save money on your car insurance, though you can’t negotiate rates. Instead, you can save money on car insurance by shopping around and comparing rates. The Jerry app makes comparison shopping easy by pulling quotes from the top providers and delivering 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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