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"MSRP - $1,500" - What does this mean?

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Old 09-21-2004, 08:34 PM
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"MSRP - $1,500" - What does this mean?

Forgive me if this issue has already been settled. I did a quick search of the archives and I couldn't find a definitive answer.

When people on this board say their dealer quoted them a price of "MSRP - $1,500," how does the destination charge get calculated into this figure? From what I've been able to determine, the $570 destination fee is NOT listed as part of the "MSRP." It is added separately and the combination of MSRP + destination = "sticker price."

If this is correct, then a quote of "MSRP - $1,500" means that the dealer is NOT charging you the destination fee at all. Thus "MSRP - $1,500" is the same quote as "Sticker - $2,070."

Example (2005 TL without navigation):

A quote of "MSRP - $1,500" is therefore $32,900 - $1,500 = $31,400

Please let me know if I have this right. I want to be clear on the definition of "MSRP," not only for comparing price quotes on this board, but also for dealing with salesmen. When a salesman says "MSRP," I want to be sure he's not really referring to "Sticker" with the destination fee.
Old 09-21-2004, 09:34 PM
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It's not very clear. Sometimes both of cases are standing correctly and these kind of talks continuingly happen on these forums.

However, IMO, I think the scenario of "MSRP-$1,500"+destination fee would be closer to the reality.

If you could work out the detination charge, it's the extra bonus for you.



Remember, some ppl said they got a deal with $1,500 off MSRP, excluding tax, title fee, destination charge.

Others said they got out of door price, it's $1,500 off.



Ppl used to talk their own ways. Tons of ppl here talk about their out of door price, which is varied by areas.
Old 09-21-2004, 09:41 PM
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Well, then shouldn't we try to standardize this? Not only would it help to clarify our discussions here on the board, but it would also streamline our negotiations with salesmen. I can just see one of these dealers quoting "MSRP - 1500," then insisting on another $570 for "destination fee" when you go to sign on the dotted line.

On this board, it seems like every time someone posts a quote, there is inevitably a follow-up post trying to clarify whether destination is included. Maybe we should start saying "MSRP - 1500, no destination" or "MSRP - 1500 + destination"? Or maybe we should just post the exact price quoted? There has to be a better way to do this.
Old 09-21-2004, 09:45 PM
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Hard to guide ppl how to follow it. Check out this... http://www.acura-tl.com/forums/showthread.php?t=72321

This thread asks ppl posting there to put the details. But who really followed the exact format the thread creator has asked...


Unfortunately, we just cannot force everyone doing so. But we could always try to do it from ourselves. Others will learn from us.

IMO, everyone believes the different "common sense". Some ppl don't think this is an issue while others believe all ppl should talk clearly and detailedly about their deals.
Old 09-21-2004, 09:56 PM
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Thanks for the link. It is very confusing when people use these terms loosely.

I am also starting to realize that a lot of people who are getting quotes on 05 cars don't even know themselves whether their quote includes "Destination" or not. Sometimes you can tell just by the way the post is worded.

I wish I coud think of a way to clarify this.
Old 09-21-2004, 10:34 PM
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I don't think I'm using the term loosly. If I remember correctly destination charges and MSRP are seperated on the sticker price. People don't usually negotiate destination charges but they negotiate off of MSRP.
Old 09-22-2004, 11:09 AM
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Car: 35000
Destination: 500
Discount 1500

Car + Destination = 35500
SubTotal - Discount = 34000

Car - Discount = 33500
SubTotal + Destination = 34000

You weren't a math major were you?

Now matter how you cut it, MSRP - X means exactly that.
Old 09-22-2004, 11:21 AM
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Casper,

What's your point? If some people are defining "MSRP" as MSRP without destination, while others are defining "MSRP" as MSRP + destination (i.e. "sticker" price), then we simply cannot compare prices. It's a terminology problem, not a math problem.
Old 09-22-2004, 11:48 AM
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Originally Posted by jj69
Casper,

What's your point? If some people are defining "MSRP" as MSRP without destination, while others are defining "MSRP" as MSRP + destination (i.e. "sticker" price), then we simply cannot compare prices. It's a terminology problem, not a math problem.
It's not a terminology problem, MSRP is very well defined. The problem is just that some people don't understand what MSRP is. MSRP is the Manufactureres Suggested Retail Price, shown on the sticker from the factory. Here is a list of the MSRP's taken directly from the Acura website:

04 3.2 4dr Sedan 5AT 32,650 (MSRP) 29,755 (Invoice)
05 3.2 4dr Sedan 5AT 32,900 (MSRP)

04 3.2 4dr Sedan 6MT 32,650 (MSRP) 29,755 (Invoice)
05 3.2 4dr Sedan 6MT 32,900 (MSRP)

04 3.2 4dr Sedan 6MT HPT 32,850 (MSRP) 29,937 (Invoice)
05 3.2 4dr Sedan 6MT HPT 33,100 (MSRP)

04 3.2 4dr Sedan 5AT Navi 34,650 (MSRP) 31,575 (Invoice)
05 3.2 4dr Sedan 5AT Navi 34,900 (MSRP)

04 3.2 4dr Sedan 6MT Navi 34,650 (MSRP) 31,575 (Invoice)
05 3.2 4dr Sedan 6MT Navi 34,900 (MSRP)

04 3.2 4dr Sedan 6MT Navi HPT 34,850 (MSRP) 31,758 (Invoice)
05 3.2 4dr Sedan 6MT Navi HPT 35,100 (MSRP)

04 $545 (Destination Charge)
05 $570

So, 05 MSRP is only $250 more. Destination Charge is $25 up.



Destination Charge IS NOT included in the MSRP. So, $1,500 off the MSRP should be pretty clear.
Old 09-22-2004, 11:51 AM
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In Summary.... MSRP - $1,500 = rip off.


You can do better than that. Tell your Dealer this equation:

Invoice + $500 = Deal.

Old 09-22-2004, 11:59 AM
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jj69 just likes to know what's the final price while ppl talk about their dscount and MSRP.


Originally Posted by mhooven
Destination Charge IS NOT included in the MSRP. So, $1,500 off the MSRP should be pretty clear.
Right, "MSRP + destination = Sticker price", but sometimes it just continues to confuse ppl. Check the case below...



Code:
In Casper42's case, without the clarification, ppl mention they got $1,500 off, this could be either 
  • 34,000 (SubTotal + Destination - Discount)
  • 33,500 (Car - Discount)
    1. includes destination: This means they got $1,500k off and additional "500" off
    2. excludes destination: This means they have to pay "destination" later, so the total price should be 33,500+500=34,000
They all state $1,500 off MSRP... sometimes other ppl just prefer to know how much $$ you have saved totally...
Old 09-22-2004, 12:54 PM
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My only point was if someone said they got $1500 off, they USUALLY mean they either got 1500 off MSRP and then they added destination back in, or they got 1500 off sticker. Either way its the same price.
Old 09-22-2004, 01:04 PM
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Originally Posted by Casper42
My only point was if someone said they got $1500 off, they USUALLY mean they either got 1500 off MSRP and then they added destination back in, or they got 1500 off sticker. Either way its the same price.

Very right.
Old 09-22-2004, 01:12 PM
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Originally Posted by TBone2004
In Summary.... MSRP - $1,500 = rip off.


You can do better than that. Tell your Dealer this equation:

Invoice + $500 = Deal.

Really? On an '05? I'd like to hear about your experience.
Old 09-22-2004, 01:29 PM
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mhooven:

Thanks for the response. I agree that many people don’t understand the technical definition of MSRP, but that’s precisely my point. I’m trying to read the posts here to compare the price quotes I’m getting to what the other good people of this forum are getting. That is difficult to do when everyone is using their own personal definition of “MSRP.” It would be nice to avoid all the follow-up posts asking, “Does your quote include destination charge?” More importantly, I want to make sure salesmen aren’t using this terminology to obfuscate whether or not destination is included in a price quote.

For example, when a salesman tells me, “I can sell you a TL for MSRP - $1,500,” I take that to mean I will NOT have to pay any additional $570 destination charge. The salesman did not say, “I can sell you a TL for MSRP - $1,500, plus the destination charge.” The salesman did not say “I can sell you a TL for STICKER price - $1,500.” The problem is that I’m sure the destination charge will appear on the paperwork despite the price quote.

In this respect, “$1,500 off MSRP” is not always clear, especially in the context of a price quote, and especially if the dealer prefaces that quote with a phrase like, “I can sell you the car for….”


Tbone2004:

In your example of "Invoice + 500" there is still the issue of whether the salesman means you also have to pay the $570 destination charge. Invoice does not include destination. So again, the quote is not clear. A quote of "Invoice + 500, and I won't chage you the destination fee" is clear.
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