What is MSRP?

Even in this economy, there are still situations where it makes more sense to buy a new car. If you have considered your options carefully and have decided that a new car is the best option for you, it is wise to not go into it blind.

window sticker What is MSRP?Many people decide to buy a car, go to a dealership and walk out with a great new car way above MSRP but no idea what they have just gotten themselves into. A new car is a huge investment that should be taken very seriously. It will affect your budget and lifestyle for the next few years and it could affect your future credit report.

Before you go to the dealership, go online, research the kind of car you are looking for and know how much you are willing to spend. Don’t allow yourself to be talked into more car than you can afford. Remember to factor in the cost of the insurance when deciding what type of car you are looking for. It is crucial that you understand what MSRP is and what it means to you. MSRP is the vehicle’s manufacturer’s suggested retail price. This is also known as its sticker price or list price. Basically, it is what the company that made the car thinks it should be sold for or the market value of the car. You must keep in mind that the dealership isn’t going to sell you the car for just that price. Depending on your negotiation skills it could cost more or less.

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