If you’re shopping for a new car, you’re probably hoping you can get a clear answer on how much your vehicle will cost. Here at Honda of Grays Harbor, we always try to be as transparent as possible and answer any questions you have. One we hear a lot is “What does MSRP mean?” and it is an important one to answer if you want to understand the price of your car.

The Meaning of MSRP

MSRP stands for “Manufacturer’s Suggested Retail Price.” Essentially, the carmaker has evaluated it and decided that this is the price the vehicle should sell for. Usually, you won’t end up paying that price, but it ends up being the starting point for most negotiations.

Other Fees and Terms to Know

It’s exceedingly rare for a vehicle to sell at its exact MSRP. The reason is simple: even base models will typically have frequently-requested features or accessories installed — some by the factory, some at the dealership — since it keeps the purchase or lease process more straightforward for everyone involved.

If you really want to understand vehicle pricing, you also have to know about other potential fees associated with a new car purchase. You’ll often have to pay a destination charge, which covers the shipment of your vehicle, and a documentation fee, which covers the cost of putting the paperwork together.

You’ll also need to pay to title your car and register it with the state, plus any applicable taxes. It’s important to understand that these taxes and fees are not included in the MSRP. The good news, however, is that the lot of it can be incorporated into your Honda financing or lease agreement.

If you have more questions about your desired vehicle and how much it will cost, visit our Honda dealership in Grays Harbor. Our knowledgeable dealers and Honda financing experts are ready to help you out.