Is the Manufacturer's Suggested Retail Price the Same as the On-the-Road Price?
2 Answers
The two are not the same. Here is an introduction to the suggested retail price and the on-the-road price: Manufacturer's Suggested Retail Price: This refers to the selling price of a product to consumers. Due to the application of value-added tax, consumption tax, and tariffs, some sellers convert the price-exclusive tax into a price-inclusive tax, artificially inflating profits and causing the product price to be abnormally high. To curb such practices, manufacturers provide a reference selling price after considering various factors, known as the Manufacturer's Suggested Retail Price. On-the-Road Price: The on-the-road price refers to all the costs incurred in purchasing a car up to the point of registration. In addition to the ex-factory price, the on-the-road price generally includes purchase tax, vehicle and vessel usage tax, car insurance fees, and registration fees. If the car is purchased on loan, the on-the-road price also includes 4S store service fees, GPS fees, car loan interest, and other expenses.
I remember when I bought my first car a few years ago, I thought the manufacturer's suggested retail price (MSRP) was the final amount I had to pay. But when I went to the 4S dealership, I was shocked by all the additional fees. The MSRP is actually just the manufacturer's recommended price, while the on-the-road price is the total amount you truly pay, including extra costs like purchase tax, insurance, license plate fees, and service charges. For example, when I bought a car priced at 200,000 yuan, that was just the MSRP. But after adding about 15% purchase tax (around 30,000 yuan), several thousand for insurance, and a few hundred for license plate fees, the total suddenly increased by tens of thousands. I also noticed that on-the-road prices vary by location—coastal cities might have lower taxes, while Beijing and Shanghai are more expensive. Now I understand: before buying a car, you must clarify the ex-factory price plus all additional fees to budget accurately.
