hfox659 wrote:i/m sure this is the MSRP but i don't know when i've bought a car or suv at their MSRP?
It's rare... but there are cases when people do pay MSRP.
Manufacturer's Suggested Retail Price
MSRP is the price listed on the BIG window sticker (applied at the factory by the Manufacturer). The MSRP total dollar amount is the total of the "Retail Base Price" PLUS all the Options included by the "Manufacturer" (not the dealership).
Example: Retail Base Price $20,220.00Splash Guards $125.00Floor Mats $110.00 Destination Charge $650.00Total $21,105.00 (Total MSRP)** This total does not include any dealership installed options or accessories (e.g., rear bumper protector, Chrome Grill Appliqué), nor does it include , taxes, license fees etc.
That said, unless the car is Brand New, at the "very beginning" of the model year and/or in "high demand" (example the 2009 Toyota Prius when gas was $5 a gallon)... no one should ever pay MSRP. That's why the S in MSRP stands for "suggested". Granted, in some cases... (like the Prius and some other hot selling cars thru the years) people will actually pay "more than MSRP" when the vehicle is in high demand and short supply. (I even did it once, paying $810 over MSRP to get a limited production car )
The reason no one should pay MSRP is because it includes a generous profit (gratuity) for the dealership. I'm "not" saying a dealership shouldn't make a profit on every sale... they should! If they didn't they would go out of business. However, there is a difference between giving the dealer a HUGE profit that takes advantage of the buyer and lets them live in luxury... and giving the dealer a comfortable profit that allows them make a living but is also fair to the buyer.
Bottom line: A vehicle has three prices. 1) What the Manufacturer "suggests" you pay (MSRP) - 2) What the dealership actually paid for the car (dealer cost) . - 3) What you end up paying for the car. That's why buying a car can be such a painful experience... because you "usually" find yourself negotiating a price somewhere between dealer cost and MSRP. Obviously... there are exceptions to every rule. For example, as it gets closer to the end of a model year, dealerships will get incentives from the manufacturer which actually allows the dealer to sell cars "below cost", just to get last years model off the lot and make room for the new model year cars that are arriving.
For those who haven't purchased yet: Exceptions aside... the 'norm"... you should plan on paying a price below MSRP but at a price above dealer cost you can live with.
A quick trick to take some pain out of the negotiation process (and reach the bottom line quicker)... Try this. Take 9 to 10% off the MSRP and tell the dealer that's your offer, take it or leave it, "out the door", NO Additional cost, the price you want to pay "after" all taxes, registration and state fees, etc. In other words the bottom line price, the amount you will write the check for. If you drive it off the lot for that... you got a pretty good deal. If they won't sell it for that... leave... walk away! Find another dealer who will... they're out there.
NOTE: The 9-10% off trick wouldn't apply to hot cars in high demand or any of "last years" model still on the lot which should be selling at or below dealer cost.
Modified by Elton Noway at 10:49 AM 6/27/2009