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