What is the Difference Between Ex-Factory Price and Manufacturer's Suggested Retail Price?
3 Answers
Automobile Manufacturer's Suggested Retail Price generally refers to the online quotation on Autohome; the Ex-Factory Price refers to the price excluding taxes, insurance, and other fees. Below is relevant information: 1. The Manufacturer's Suggested Retail Price is the official quotation, and generally, dealers will provide floating quotations based on this price when purchasing. Additionally, the Manufacturer's Suggested Retail Price is an important basis for paying purchase tax. 2. The Ex-Factory Price is the price of the purchased vehicle itself, simply put, it is the actual price of the vehicle, excluding any other fees. Generally, the Ex-Factory Price still requires payment of purchase tax, license plate registration, insurance, and other fees. The purchase tax is a tax levied by tax authorities on relevant properties and behaviors within the scope of the purchase tax system.
As a seasoned driver with over a decade of experience, I've personally experienced the difference between the ex-factory price and the manufacturer's suggested retail price (MSRP) when buying a car. The MSRP is the retail price recommended by the manufacturer, including the car's basic configurations like air conditioning and audio systems—it sounds impressive but usually isn't the actual price. The ex-factory price is what you actually pay for the bare car, excluding taxes, insurance, registration fees, or any optional add-ons. Last time I bought a new car, the dealer advertised an MSRP of 200,000 yuan, but after negotiating, the ex-factory price was only 180,000 yuan, saving me thousands. Why is this difference important? Because it directly impacts your total expenses—loan amounts, monthly payments, and taxes are all calculated based on the ex-factory price. Many mistakenly think the MSRP is the final price and end up paying extra costs. I recommend checking the average ex-factory price online before purchasing as a benchmark—it gives you more leverage in negotiations, and the savings can even cover a fuel card or something similar.
When I first bought a car, I was also confused about these two terms, and the salesperson's explanation left me baffled. It wasn't until I asked a friend that I understood: the manufacturer's suggested retail price (MSRP) is like the official recommended price, commonly seen in new car advertisements, and includes some standard features like wheels or seats. However, the base car price is just the pure vehicle price, excluding taxes, insurance, or accessories. I got tricked once when buying a used car—the seller quoted an MSRP of 100,000, but after negotiating the base price down to 85,000, I realized additional fees were calculated separately, otherwise the total would exceed my budget. The key point is that the base car price determines your loan amount, as banks use it to assess how much you can borrow. Compare quotes from several dealerships, and don't let salespeople upsell you on unnecessary add-ons—this way, you can keep control of your wallet. Browsing forums and reading others' experiences helps, as transparency in the base car price saves you both hassle and money.
