What Do Manufacturer's Suggested Retail Price and On-the-Road Price Mean When Buying a Car?
2 Answers
Introduction to the meanings of manufacturer's suggested retail price and on-the-road price when buying a car: 1. Manufacturer's Suggested Retail Price: Generally, cars are sold to consumers through 4S stores rather than directly by manufacturers. However, manufacturers provide a suggested price for the car, which is derived from a comprehensive analysis of factors such as the car's cost and positioning. This is known as the manufacturer's suggested retail price, announced by the manufacturer when the new car is launched. In most cases, this price remains unchanged. Although it is not the final selling price, the suggested retail price is an important indicator of the car's price range. 2. On-the-Road Price: The on-the-road price refers to the total cost of purchasing a car and completing all necessary legal procedures to drive it on the road (if it is a loan, the interest is calculated separately). The on-the-road price includes the purchase price of the car, plus expenses such as vehicle purchase tax, insurance, and license plate registration fees, also known as the drive-away price.
The manufacturer's suggested retail price (MSRP) is the standard selling price announced by the automaker, usually seen in advertisements and official websites. The out-the-door price is the actual amount you need to prepare, which includes the base vehicle price, purchase tax, insurance fees, license plate fees, and other miscellaneous costs. For example, if I fancy a car with an MSRP of 150,000 yuan, after calculating at the dealership, insurance might cost 7,000-8,000 yuan, purchase tax over 10,000 yuan, plus service fees and accessories, the total could reach 170,000 yuan before driving it away. Especially now with many dealerships running promotions, the base vehicle price might be negotiable, but additional fees can be tricky. When negotiating, make sure the salesperson provides a detailed breakdown of the out-the-door price.
