What do the manufacturer's suggested retail price and on-the-road price mean for cars?
2 Answers
Car manufacturer's suggested retail price and on-the-road price mean the following: Manufacturer's Suggested Retail Price (MSRP): Generally, cars are sold through 4S stores or agents rather than directly from the manufacturer to consumers. However, the manufacturer will comprehensively analyze factors such as the car's cost, product positioning, and market conditions to determine a price, which is the so-called manufacturer's suggested retail price. On-the-Road Price: This is the base price of the car plus additional costs such as purchase tax, insurance, loan handling fees, and other miscellaneous expenses. It can be simply understood as the total amount you need to pay to buy a car. Many car owners notice this when purchasing a vehicle.
When it comes to the manufacturer's suggested retail price (MSRP) and the on-the-road price of a car, I recall my first car-buying experience when I was completely clueless. The MSRP is essentially the price suggested by the car manufacturer, similar to a sticker price, and doesn't include other miscellaneous expenses like taxes or insurance. The on-the-road price, however, is different—it's the total amount you'll need to pay to get the car into your hands, covering all additional costs such as purchase tax, license plate fees, mandatory insurance, and sometimes even financial service fees. Back then, I only focused on the MSRP when budgeting, only to find out that the on-the-road price was tens of thousands more, with purchase tax alone accounting for a significant portion—almost 10% of the car's price. I’d advise first-time buyers to clarify all components of the on-the-road price beforehand, not to be misled by surface numbers, and to calculate the total budget before making a decision to avoid undue financial pressure later.
