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What is MSRP and how does it work?

Can you define MSRP and explain how it works?

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Rachel Juillerat · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“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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