sharpsicle
Well-Known Member
- Joined
- Apr 29, 2021
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- Tampa, FL / Milwaukee, WI
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- 2020 Gladiator Overland, 2002 VTX1800
MSRP is the price a dealership is suggested to sell the vehicle at to make a certain profit. I can understand why you'd confuse that with sticker price, but it doesn't always work that way. Freight and PDI charges are above and beyond the suggested price as explained in previous posts and are passed directly on to the consumer for that very reason. The dealership does not make any profit on Freight or PDI charges, so these do not enter into the typical MSRP number calculation.Pop quiz: At what price is the mnfr suggesting the vehicle be sold? Ford and toyota and kia certainly make this easy by declaring the largest number on the sticker the "Total MSRP", and i understand other mnfrs attempt to obfuscate, but while armchair apologists attempt to find a way to excuse bad behavior, one thing remains clear: MSRP isn't just a mish-mash of letters we've assigned meaning to, it's an acronym. The total price on the window sticker is, in fact, the price the manufacturer is suggesting the vehicle be sold at.
There's a very common misconception surrounding what MSRP really is, and it has also led to a gross misuse and poor understanding of the acronym. Inevitably that leads to misinformed consumers like we have here. It doesn't mean "sticker price" or "out the door price" or anything close. It's a dealership's suggested sale price for the vehicle as optioned. Taxes, fees, charges are extra. The only reason the destination charge gets so prominently displayed on the sticker and summed up is due to the law. Again, that law does not re-define MSRP though. So-called "armchair apologists" don't enter in to it.
If you want to say "destination fees are always part of the sticker price" you'd be right. No argument there. To say "destination fees are always part of the MSRP price" is not right. Sometimes? Sure, maybe. Depends on the brand and dealership. But always? No, not always. You need to use the right words to convey the right information.
This is why you often see your bill of sale and purchase agreement in a different format from the window sticker. It's also the reason that many many new car purchases have a separate, independent line item for delivery/destination charges. It's because that's a passed-on cost, not a dealership mark-up cost. To the consumer this might not make sense, but on the business and accounting side, it makes tons of sense. Think about doing COGS calculations, and your goods are vehicles. You gotta keep them separate in your mind to see and understand it all correctly.
I'll leave this thread at that. It's primed to jump off the rails at this point. We defined what a destination charge is, the OP got squared away, and now we're down here splitting hairs on poorly used and understood acronyms. I've said my piece on this. No reason to go further.
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