What Do Manufacturer's Suggested Retail Price, On-the-Road Price, and Ex-Factory Price Mean?
2 Answers
On-the-road price refers to the final transaction price. Ex-factory price means the price of the vehicle itself, excluding any other fees; while on-the-road price is the total cost incurred to legally drive the car on the road after purchase. Manufacturer's Suggested Retail Price: This is the manufacturer's suggested selling price for the vehicle, determined by comprehensively analyzing factors such as the car's cost and positioning. It is then provided to 4S stores. The manufacturer's suggested retail price is usually announced before a new car is launched and generally remains unchanged unless there is an official price reduction. Although it is not the final selling price of the car, it is a very important reference. Ex-Factory Price: The ex-factory price refers solely to the price of the vehicle itself, excluding any fees other than the "vehicle price." On-the-Road Price: This is the final transaction price, meaning the total cost of the vehicle when all legal procedures are completed and the car is ready to be driven on the road. It includes many fees such as purchase tax, insurance, vehicle and vessel tax, and license plate registration.
Last time I accompanied a friend to buy a car, I specifically researched these pricing concepts. The manufacturer's suggested retail price (MSRP) is the price recommended by the automaker, somewhat like the original price on a supermarket product label, commonly seen in promotional flyers or official website advertisements. The base car price is the actual transaction price—the sales manager will use a calculator to give you a figure significantly lower than the MSRP, since dealerships usually offer discounts. The out-the-door price is the most practical, including mandatory expenses like registration fees, purchase tax, and insurance. For example, an SUV with a listed price of 200,000 yuan might be negotiated down to 180,000 yuan for the base car, but after adding 15,000 yuan in purchase tax and 8,000 yuan for insurance, you’d ultimately need to pay 203,000 yuan to drive it away. So when buying a car, don’t just focus on the low base car price—remember to ask about all the additional fees.
