Can Car Dealers Sell Above MSRP?

The Manufacturer’s Suggested Retail Price (MSRP) is a suggested price set by the manufacturer for their vehicles. Many car buyers are curious to know if car dealers can sell above the MSRP and if so, what are the implications of doing so?

What is MSRP?

MSRP is the suggested retail price of a vehicle set by the manufacturer. It is a benchmark price that dealers use to advertise and sell the car. The MSRP is a guideline that car dealers use to offer competitive pricing and prevent them from overcharging customers.

Can Car Dealers Sell Above MSRP?

Yes, car dealers can sell a vehicle above the MSRP. However, they are legally obligated to disclose the MSRP and the final sale price. If a car is sold above MSRP, the dealer must explain why the price is higher than the MSRP. The explanation must be based on the value of the car, such as additional features or services that are included in the sale.

What are the Implications of Selling Above MSRP?

When a car dealer sells a vehicle above MSRP, they are at risk of being accused of price gouging. Price gouging is the practice of charging an exorbitant price for goods or services, which is illegal in many countries. Additionally, selling a car above MSRP can damage the dealership’s reputation, as customers may perceive the dealership as dishonest.

Car dealers can sell vehicles above the MSRP, but they must be transparent about the final sale price. If a car is sold above MSRP, the dealer must provide an explanation for the additional cost. Selling a car above MSRP can lead to accusations of price gouging and damage the dealership’s reputation, so it is best to avoid doing so.