MSRP Price – Don’t Pay It
MSRP stands for “Manufacturer’s Retail Price,” so to say MSRP Price is redundant, but is nevertheless the way it is often used. But when was the last time you paid retail for anything other than something you bought at a convenience store or drug store?
Since the MSRP was established back in 1958 as a consumer protection, it has since become manipulated by the car makers and dealerships to the point where it really doesn’t mean squat. It’s only an approximation now of the price you COULD pay if you didn’t know any better.
This “manipulation” was done to disguise the real cost of a car so as to allow for more bargaining room. (Read: More potential profit for the dealers and thus more cars moved by the manufacturers due to their sales force – the dealers – having more incentive to sell cars.)
Of course, every business needs to make a profit, and the auto industry is no different. But as a consumer who doesn’t want to pay more than you have to for your new car, just be sure you research the difference between the MSRP Price and the factory invoice. But more importantly, find out about “factory-to-dealer incentives” and “dealer holdback” for your target vehicle BEFORE stepping onto a car lot.
How is this done? With the internet, of course!