In Upside-Down U.S. Car Market, MSRPs Have a Whole New Meaning

• Automakers have pivoted to selling higher-priced models
• Dealers add their own hikes on top of manufacturer increases

For decades, transactions in U.S. car dealerships went something like this: A couple walks into a showroom, expresses interest in buying a sedan, the sales rep says, great, our MSRP is $26,000, and the two sides sit down to negotiate the price lower until they settle on a level both can accept.

The MSRP, or sticker price, typically set the ceiling.

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