New Car Pricing & Rebate Terms - Part 3
MSRP
Also known as “Sticker Price”, “Munroney”, “List Price”, “Sticker” or “Retail
Price”. “Manufacturers Suggested Retail Price” is the price the manufacturer is
suggesting the vehicle be sold for. You can see it on a mandatory sticker on the
side window.
“Munroney” was the Senator that introduced this law. The point is
that you don’t want to negotiate from the MSRP because it’s just a starting
point and only a moron would pay full retail for anything!
Non-Commissioned Sales
Personally I would avoid these types of “no haggle” places. These sales people
are getting paid some type of extra compensation beyond their salary.
The point
is that you go in there thinking that you won’t be “sold” which is great for the
sales person because you will also be more receptive and open. Be aware.
Option Packages
These are merely a package of options that the manufacturers will put together
at a reduced price. For example: A “Sport Package” might include special wheels,
pin striping, special gauges, etc.
If you ordered all those options separately
then you would pay significantly more. These Option Packages also streamline the
manufacturing process too.
Retail
May also be known as the “List Price”. This is the price you might pay if you
didn’t know anything about how to negotiate when buying a car.
Special Circumstances Dealer Incentives
These are incentives offered to a new car dealership to get started and
establish a base of new customers.
Wholesale
Also known as “Wholesale Value” or “Actual Cash Value”. This is what a used car
can sell for at a used car auction. When you trade in your used car you must
know that the dealers already know what they can dump it for at an auction.
If they offer you substantially more than wholesale then you also need to be
aware that they will get that money from you some other way.
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