What do MSRP and On-the-Road Price mean?
2 Answers
On-the-Road Price refers to the total cost of all expenses incurred after purchasing a car, including all necessary legal procedures to drive the car on the road. MSRP (Manufacturer's Suggested Retail Price) is the 'suggested' price recommended by the manufacturer when a new car is launched. Below are detailed explanations of both: 1. On-the-Road Price: This is the total cost of all expenses required to legally drive the car on the road after purchase (if it's a loan, the interest is calculated separately). It is also known as the drive-away price. The On-the-Road Price includes the base price of the car plus costs such as insurance, registration, taxes, etc. If the car is purchased on loan, the interest and handling fees for the loan must also be added. 2. MSRP: The MSRP is the 'suggested' price recommended by the manufacturer when a new car is launched. It reflects the car's positioning and its relationship with competitors, serving as a reference point but without actual binding significance. The final transaction price (base price) of the car is determined by the market.
I encountered this issue right after buying my car. The manufacturer's suggested retail price (MSRP) is like the price tag you see in a supermarket. For example, if the manufacturer lists the MSRP as 200,000 yuan for the car you want, that's just the base price and doesn't include taxes, fees, or other charges. However, the out-the-door price is completely different—it's the total amount you actually pay when driving the car off the dealership lot, including purchase tax, insurance, registration fees, and various service charges. I learned this the hard way, thinking 200,000 yuan would cover it, only to find the out-the-door price was 25,000 yuan more, which really frustrated me. So, before buying, always ask the dealer for a detailed breakdown of all costs to avoid messing up your budget. Now, when I advise friends, I tell them to visit multiple dealerships to compare out-the-door prices and not be misled by the MSRP—it can save them money. Remember, the out-the-door price is what really matters when it comes to spending!
