Difference Between Reference Price and Manufacturer's Suggested Retail Price
2 Answers
Automobile reference prices are lower than the manufacturer's suggested retail prices, which are set by the automaker. It is more appropriate to purchase a car based on the reference price, as the actual transaction price usually does not deviate much from it. Below is relevant information: 1. Manufacturer's Suggested Retail Price: This refers to the price set by the automaker, in principle requiring all 4S dealerships to sell at this price, which includes the automaker's profit margin beyond costs. 2. Reference Price: The reference price is a suggested purchase price provided by automotive websites after compiling quotes from various dealerships, indicating that selling at this price is considered reasonable.
I've been driving for almost twenty years and have bought several new and used cars. There's a notable difference between the reference price and the manufacturer's suggested retail price (MSRP): the MSRP is the official recommended price set by the manufacturer, similar to a sticker price, and is relatively fixed, often used when new cars are launched. The reference price, on the other hand, is much more flexible—it includes the average actual transaction price in the market, quotes from various dealers, and even data on closing prices shared by netizens. To avoid getting ripped off when buying a car, you need to consider both: use the MSRP as a starting point and the reference price to help you negotiate. For example, when I was interested in an SUV, the MSRP was listed at 200,000 RMB, but reference price data showed it could be secured for 180,000 RMB. After comparing multiple dealers, I haggled and saved several thousand. Remember, market conditions change quickly—reference prices tend to be lower during holiday promotions. Don’t just go for the cheapest option when picking a car; also consider safety features that match your budget.
