What do the manufacturer's suggested retail price and the actual transaction price mean?
2 Answers
Here is an introduction about the manufacturer's suggested retail price and the actual transaction price: 1. Actual transaction price: After repeated bargaining with the car dealer, the actual amount paid for the bare car is the amount used when purchasing the car. 3. Manufacturer's suggested retail price: The manufacturer's suggested retail price refers to the selling price of a product to consumers. Due to the utilization of value-added tax, consumption tax, and tariffs, some sellers change the price-exclusive tax to a price-inclusive tax, artificially inflating profits, leading to abnormally high product prices. To curb this phenomenon, manufacturers provide a reference selling price after considering various factors, known as the manufacturer's suggested retail price.
I recently helped a friend look at cars and only then realized the intricacies involved. The manufacturer's suggested retail price (MSRP) is the official recommended retail price from the automaker, the one printed on brochures, also known as the sticker price. However, the final transaction price is the actual amount we end up paying, and there's often a lot of wiggle room here. Dealerships often advertise comprehensive discounts of tens of thousands, but in reality, these usually come with mandatory add-ons like decoration packages or in-house insurance. Truly good deals often come from straightforward cash discounts—for example, some overstocked joint-venture brand cars can be negotiated down to 15% off MSRP. When negotiating, don't just focus on the base car price; additional fees like loan processing charges and license plate fees are the hidden traps.
