What is the Difference Between Reference Price and Manufacturer's Suggested Retail Price?
2 Answers
The main difference between the two lies in the pricing standards. The reference price is determined based on market conditions, while the manufacturer's suggested retail price (MSRP) is set by the automaker. Below are detailed explanations: Manufacturer's Suggested Retail Price (MSRP): The MSRP is the price recommended by the car manufacturer after producing the vehicle, based on a series of factors. Many car salespeople use the MSRP as the selling price for the vehicle. Reference Price: The reference price refers to the adjusted price after a period of market feedback following the launch of a new car. For vehicles with poor sales performance, dealers may adopt lower pricing strategies to boost sales, resulting in a reference price that is lower than the MSRP. However, since sales conditions and dealer incentives vary by region, the reference price may differ from one location to another.
I've been preparing to change my car recently and visited several 4S stores before finally understanding that the reference price and the manufacturer's suggested retail price (MSRP) are not the same thing. The MSRP is the price published by the car manufacturer in advertisements, like a suggested factory price, which is basically uniform nationwide and written on the label. The reference price, on the other hand, is the actual price quoted by the store or the average transaction price I found online, which is closer to reality. There are quite a few influencing factors, such as regional differences—big cities with more cars might have lower reference prices, while smaller cities could be more expensive; timing is also crucial, as the reference price during off-seasons or promotional months can be slashed by thousands. When buying, don't just look at the MSRP; checking more reference price data can save you a lot of money, especially now that mobile apps are so convenient. I downloaded a special price comparison tool, which is quite practical.
