Santa Fe Kia: We never charge over MSRP

Santa Fe Kia: We never charge over MSRP

Morley Fletcher here, President and Dealer of your locally owned Santa Fe Kia. I am very proud to say that we do not and will never charge a dealer markup over MSRP!

Great! So, you may be wondering, what exactly is MSRP? It’s simple but essential to understand how it plays out when you start looking for a car and negotiating the price you will pay. At Santa Fe Kia, we are fully transparent with our pricing. We pride ourselves on making the car buying process easy for you.

What is MSRP?

MSRP simply means “manufacturer’s suggested retail price.” It’s the price that national and worldwide manufacturers such as Kia recommend a dealer should sell the vehicle for. You will typically see this list price on the window sticker of a new car at a dealership. That’s why MSRP is also known as the sticker price!

The manufacturer issues the MSRP to ensure that the price of their new vehicles remains relatively constant across all markets. Also, using a uniform pricing model protects both themselves and the consumer from potential price gouging at some dealerships

The manufacturer’s calculations for MSRP are made from an aggregate of the cost of supplies, labor, overhead, distribution costs, and retail markup (the gross profit that the manufacturer expects the dealership to earn on the vehicle).

In other words, the manufacturer has already included the dealer’s gross profit into the MSRP. Also, the MSRP is often based on the factory options that your vehicle comes with. Knowing the MSRP for a new vehicle can help you to fully understand its market value, as well as to negotiate a fair price for the vehicle. It also helps your trade-in value for new Kia models.

What is MSRP versus the sales price or invoice price?

MSRP differs from the sales price, which is what the dealership receives after taxes and other fees are taken into account. MSRP also differs from the invoice price, which is the amount that a dealer pays the manufacturer for the vehicle.

Also, keep in mind that sometimes the manufacturer designates a holdback price which is a commission to the dealer for selling the vehicle. With these holdback fees, the customer may pay at or near invoice pricing, but the dealership still receives some profit from the sale, as it should.

Why are vehicles sold over MSRP at some dealerships?

Some dealerships will sell over MSRP due to the popularity of a hard-to-come-by hot new model, or by offering packages for maintenance and specials. We believe customers should not pay an added dealer mark-up because it is only additional profit for no other reason than supply and demand market conditions!

Therefore, knowing the MSRP for your new vehicle is a starting point in negotiating your price. We feel that the only time we would ever charge a customer more than MSRP is if the customer requests additional KIA Branded Accessories for their new vehicle. We will always explain the full costs of any requested additions. There is no other reason to charge more than MSRP.

On the other hand, some dealerships may offer lower prices than MSRP, but be wary. The price may come with hidden costs if you don’t understand all the details. These costs may include negotiables, such as rebates and incentives by the auto manufacturer or from the federal government (such as electric and hybrid vehicle incentives).

In other words, the dealer may receive the benefit of the rebate, if there is one, rather than you. Be aware of manufacturer rebates when you negotiate your price and make sure those rebates are included in YOUR purchase price.

Why do we not sell over MSRP at Santa Fe Kia?

We never sell over MSRP because we are confident and proud of being a locally owned dealership who is vested in the community and wants the best for all of us. Our Santa Fe dealership is doing great as it is.

We take pride in the way we do business and we continue to give back to the community while we benefit from our repeat customers and community referral business. We make our profit through the success of our dealership in selling cars, providing excellent service, and making our customers happy.

Unlike many dealerships throughout New Mexico, we will never charge you a dealer markup over MSRP. Get the best value and a fair transparent price on your next car purchase at your locally owned Santa Fe Kia, where we treat you different! Plus, we’ve got lots of new models to show you!