You’ve probably seen MSRP next to just about every new car for sale, but that number can be surprisingly easy to misunderstand. It shows up in glossy automaker ads, dealer listings, window stickers, and car reviews, often looking like the definitive price of a vehicle.
But MSRP is only one part of the pricing equation, and it doesn't necessarily represent what you'll actually pay. So, what does MSRP actually mean, and why can the price on the sticker differ from the number on your final bill? Understanding the term can make shopping for a new car considerably less confusing.
