What is MSRP?

Automotive dealers get in the habit of using acronyms or phrases that are common around the dealership, but may not be as common to a customer. One that is used quite often is MSRP. MSRP stands for Manufacturer Suggested Retail Price. It is the selling price that the manufacturer recommends you sell the product for. Therefore, this price stays the same no matter the location or store.

An advertisement might say, "$3,000 off MSRP" which means the vehicle is being sold for $3,000 less than normal. In other words, it is on sale for $3,000 off!

Another phrase typically used is Cash Back, Cash Allowance, Customer Cash or Bonus Cash. The manufacturer will offer a rebate or incentive to increase sales. Dealerships will offer this discount since the manufacturer provided it. Basically, the vehicle will get a dollar amount off. The dealership will take the discount off for you. An ad might show:

$23,000 MSRP
-$2,000 CASH BACK
-$500 BONUS CASH
$20,500 SELLING PRICE
$2,500 OFF MSRP!