SRP stands for Suggested Retail Price. It's the price the car manufacturer recommends a dealership should sell a new vehicle for. You'll often see it listed on the manufacturer's website and on the window sticker of a new car, also known as the Monroney label. Think of it as the official starting point for negotiations, but it's rarely the final price you pay.
The SRP is more than just a single number. It's typically built from the vehicle's base price, plus the cost of any optional equipment packages, individual options, and the destination charge (the fee to transport the car to the dealership). It does not include things like taxes, registration, or dealership fees.
Understanding the difference between SRP and the dealer's invoice price is crucial for getting a good deal. The invoice price is what the dealership pays the manufacturer. The difference between the SRP and the invoice price is the theoretical gross profit for the dealership. However, dealers often receive rebates and incentives from the manufacturer, meaning their true cost can be lower than the invoice price. Your goal in negotiation is to get as close to that true dealer cost as possible.
| Vehicle Segment | Typical SRP Range (USD) | Typical Dealer Invoice (Approx. % below SRP) | Common Destination Charge |
|---|
| Compact Sedan | $23,000 - $28,000 | 6% - 9% | $1,095 - $1,295 |
| Midsize SUV | $35,000 - $45,000 | 7% - 10% | $1,195 - $1,395 |
| Full-Size Pickup Truck | $45,000 - $60,000+ | 8% - 12% | $1,695 - $2,195 |
| Electric Vehicle (EV) | $40,000 - $55,000 | Varies widely with incentives | $1,195 - $1,495 |
| Luxury Sedan | $55,000 - $80,000+ | 8% - 11% | $1,095 - $1,295 |
Never walk into a dealership focused solely on the SRP. Use it as a benchmark, but your negotiation should be informed by researching the average transaction price (what people are actually paying) in your area using sites like Edmunds or Kelley Blue Book.
