What does "MSRP" mean when buying a car?

The term MSRP stands for "manufacturer's suggested retail price" and refers to the price point at which the automobile manufacturer suggests a dealer sell the vehicle. Although this is the suggested price, the dealer is not required to sell the vehicle for that amount.

The MSRP is usually listed on the car's sales sticker and includes costs for both standard equipment and any extra options the factory installed in the vehicle. The invoice price is the amount the dealer paid for the vehicle. Finally, the sticker price is the price the dealer expects the buyer to pay after dealer-installed options, markup and other fees.