what is MSRP of cars? We don’t have this concept in our country so please explain?


what is MSRP of cars? We don’t have this concept in our country so please explain?

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Manufacturer suggested retail price

It is the price the automaker suggest the dealers can sell the cars for

Manufacturer’s suggested retail price. It’s what the company that made the car thinks it’s worth.

The standard PS5 with a disc drive costs $499.99. That’s the price the manufacturer will sell them to you but the kid down the road is selling it for $700 because he bought them all. So now you know how much you’re overpaying.

It’s the “official” price set for a model by the manufacturer. The manufacturer may offer incentives and the dealership may discount further, to sell below that price in normal times. Now, which the chip shortage leading to shortages of vehicles to sell, you’re more likely to see dealers mark up above MSRP.

MSRP is the Manufacturers Suggested Retail Price.

It is essentially what a manufacturer tells resellers to sell something for so that they are all selling it for (approximately) the same price.

There’s a lot of factors that determine the MSRP, including what the manufacturer thinks will sell best for most total profit (which is not the same as most units sold, or most profit per unit sold).

Cars are especially linked to an MSRP since most dealers can technically sell for however much they want, but all the large scale advertising (and websites) are handled by the manufacturer. They don’t want customers to see one price online and another price at the dealers.

In the US, cars are sold through a “dealership” model meaning that you don’t buy directly from the company that makes the cars. Instead you buy from a local place that specializes in selling cars from that company.

The concept of MSRP, or Manufacture’s Suggested Retail Price is part of a marketing campaign to help sell cars. It implies that there is a price that the car maker thinks the car should sell for. But the dealer will give you a lower price. So it makes the car buyer feel like they are getting a good deal at that dealership.

But the secret is no one ever pays MSRP. The car makers don’t ever expect the cars to sell at that price.

The US seems to love these well known tricks. This is way most things that we buy have prices like $14.99 instead of $15. At some point it was s psychological trick that made you think it was cheaper. The thing is, it still works. If the same product was available at stores that were next door to each other, and one sold for $14.99 at one store and $15 at the other…people would by the $14.99 one.

**M**anufacturer’s **S**uggested **R**etail **P**rice

In the USA, it is generally illegal for companies that make cars to sell them directly to consumers. They have to sell the cars to dealerships, and the dealerships sell the cars to consumers.

The dealerships pay a certain amount of money for the cars to the factory, but then they can charge whatever they want to the consumers. The MSRP is a price that the factory suggests would be reasonable. If the dealership is desperate to get rid of cars, it may sell them for less than the MSRP, or even potentially less than they paid to the factor for them. On the other hand, if car demand is high, dealerships can charge way more money than the MSRP, as long as customers are willing to pay.

Since every dealership may have a different price, the MSRP serves as a guideline to consumers for about how much money a car is going to cost. When car manufacturers advertise, they can’t list the price that a dealership will charge, because that price will vary from dealer to dealer. Instead the advertisement will list the MSRP to give consumers a rough idea of what to expect.

With the current supply chain shortage and high demand for cars, basically all cars are going for WAY over their MSRP right now. Used cars are also going for tons of money.