Anonymous
Anonymous asked in Cars & TransportationBuying & Selling · 1 decade ago

What does the MSRP Price Range mean when buying a new car?

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  • 1 decade ago
    Favorite Answer

    Manufacturers Suggested Retail Price is the price that by law now (used to not be the way it was back years ago) the Manufacturer has to put a set price on the car before it leaves the factory.

    It is essentially a target number. If you came to an Acura dealer to get a TSX and the car was $28,000 on the sticker. Well there are several costs involved;

    How much the factory is selling the car to the dealer for. Dealers get cars shipped to them but they also owe the manufacturer for those vehicles. So regardless if your dealer gets 20 of one car and 5 of another, your stuck with what you got until you trade with other dealers.

    Dealer Overhead. I love when people say I can give you $500 over invoice. Invoice is a mythical number as well. If the car is $28,000 and they are offering 27,500 saying that is 500 over invoice, you think, wow they own the car for 27,000. Wrong! Basically they are keeping their front end open to make some money for both the sales associate and dealer.

    Front and Back End. Regardless what the negotiated price is or what they show you on the screen, there is always money held back in the deal. No dealer is going to give up all its cash. But when you sit down with the Business Manager to go over the paperwork, you get sold into wheel protection, LoJack, Simoniz, extended warranties. All those have added costs which go back to the dealer and the salesman. The salesman may get an extra $50 for each thing you sign up for. When I worked in sales I once made $1100 in the back on one guy.

    Moving along, these are just some of the things that go on in every dealership, regardless. But the MSRP range is simply the range in price between the top model with all the goodies whether it be wheels and lip kits or navigation versus the base style.

    Do yourself a favor, do not look at the sticker on a car. It is a reference, that is why they call it SUGGESTED Retail Price. It's what they want you to pay but know damn well you won't.

    1) Be saavy, bring a friend who knows the auto business inside and out, bring someone who works for a dealer even.

    2) Shop more than one dealer, even if its online, crosscheck them to keep them honest, let them know you are looking at other dealers offering the same model. This will cause them to be more open and honest and less work for you.

    3) In the end the best deal should win out, not the attitude of the salesman. Of course you want to feel welcome but no matter where you go, just remember, your buying the car for yourself, not to make them happy.

    If you would like more info, please email me and we can talk more.

    Source(s): I worked in auto Dealers and the Auto Industry
  • 1 decade ago

    All MSRP price range means is the List price for the car with no options all the way up to the same model with every availible option availible.

  • 1 decade ago

    MSRP means Manufacturer's Suggested Retail Price. "MSRP Price Range" is meaningless. Possibly a way to say that they won't discount the price much.

  • glen
    Lv 4
    1 decade ago

    Manufacturers Suggested Retail Price. If the MSRP says $20,000, the car cost $20,000, no questions ask, no haggling. You have to pay the sales tax and other fees.

    Just like a hotdog. The price for a hotdog at Costco is $1.50 (MSRP) plus tax, energy, manpower and paperwork (8.25%) = $1.62. That is cheap.

    Source(s): I am a car enthusiast
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  • Joey R
    Lv 5
    1 decade ago

    Manufacturer's Suggested Retail Price. There is always a range when buying a new car depending on the options you want.

  • 1 decade ago

    It is the price the Manufacturer suggests the dealer sells the car for.Manufactures Suggestes Retail Price.

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