What Influences New Vehicle Pricing? We Explain What’s Behind the New Car Prices You See on Our Inventory
At Thompson Sales, we have crystal-clear pricing on every vehicle we sell. Whether you prefer a family-friendly Buick SUV, a rugged GMC pickup, or a premium GMC SUV, we have something for every driver who wants an excellent vehicle in their garage.
Our guide discusses the details of what goes into new vehicle pricing when you see the number on our website or in the window of a car, truck, or SUV on our lot. If you have any questions, feel free to reach out to us when shopping for a new vehicle.
What Is MSRP?
The manufacturer’s suggested retail price (MSRP) indicates the price that automakers recommend when a dealership sells a car, truck, or SUV. Automakers calculate this figure by considering production costs, market demand, and profit margins.Â
Dealerships like Thompson Sales use the MSRP as a starting point for vehicle pricing. It is up to the dealership to determine the final price. However, rarely, if at all, will you see a vehicle at the MSRP at Thompson Sales. Typically, our prices are lower than that.
Why should you care about the MSRP? It allows you to shop around for the best possible price among dealerships when researching vehicles online to help you calculate a monthly budget for an auto loan or lease.
What Is the Invoice Price?
The invoice price for a new vehicle represents the amount a dealer pays the manufacturer to purchase a car, truck, or SUV. This price typically excludes costs like destination fees. Automakers provide this figure to dealers, creating a baseline that can help us determine the final price.Â
A dealership like Thompson Sales does not have to reveal the invoice price to a car shopper. However, we are required by law to show you the MSRP.
Although the invoice price offers a useful reference for vehicle pricing, it does not always reflect the dealer’s true cost. Incentives from manufacturers, such as bonuses or volume discounts, can reduce the dealer’s expenses. The invoice price is generally lower than the MSRP because it can include manufacturer incentives and a percentage of the invoice price returned to the dealer.
What Is the Sticker Price?
The sticker price on a vehicle displays the total cost to you as advertised by the team at Thompson Sales. This price includes the MSRP, destination fees, optional add-ons, and other dealer-installed features. Federal law requires dealers to place this price prominently on a window sticker so you can review what goes into the final price.
The sticker price might not include any incentives from a dealership or the manufacturer. So, the price might even be lower after you apply for financing and pre-qualify for a loan.
What Are the Differences Between MSRP, Invoice, and Sticker Price?
The MSRP guides pricing for the dealership, the invoice price reveals dealer costs, and the sticker price reflects the vehicle’s advertised cost with additional details before making a purchase.
MSRP refers to the price automakers recommend dealers use as a starting point for vehicle pricing. This figure reflects production costs, market demand, and profit margins. While it acts as a benchmark for negotiations, it does not always represent the final price paid, as discounts or premiums often come into play.
The invoice price represents the amount a dealer pays the manufacturer for the vehicle. However, this figure does not always reflect the dealer’s true cost due to potential rebates, bonuses, or holdbacks provided by the manufacturer.Â
The sticker price, prominently displayed on a window sticker, includes the MSRP, destination fees, and any dealer-installed options or add-ons. It serves as the dealership’s advertised starting price. While usually higher than the final sale price, the sticker price provides transparency about the vehicle’s features and associated costs.
Affordable New Vehicles at Thompson Sales
In general, affordable new vehicles at Thompson Sales range from $20K to $30K, depending on market conditions and vehicle type. For Buick vehicles, this means compact SUVs like the Envision or Encore GX. However, affordability varies based on income, financing options, and individual priorities.
If an affordable new vehicle is out of your price range, consider a certified pre-owned vehicle that still has some of the factory warranty left on it. Or think about the quality used models on our lot, which may come from many different makes and models.
Premium New Vehicles at Thompson Sales
Pricing for premium new vehicles typically starts at $40K and goes to $60K. Think about the higher trims of the GMC Canyon, GMC Sierra 1500, Buick Enclave three-row SUV, and others.Â
Premium vehicles typically have upscale interior materials like leather or leatherette. You might see larger touchscreens on the dashboard. Then, there are additional advanced safety features in addition to the basic ones on lower trims. Look for larger cabins and more powerful engines, too.Â
Luxury New Vehicles at Thompson Sales
The most luxurious vehicles on our lot include Buick SUVs with the Avenir trim. On the GMC side, look for Denali or Denali Ultimate trims for the Sierra pickup trucks and the three SUV models.Â
Luxury items on these vehicles might include HD surround cameras for safety and for trailering, professional-grade trailering technology, GMC Super Cruise driver-assist technology, and others.
Differences Among Affordable, Premium, and Luxury Vehicles
Aside from pricing, there are a few key differences among affordable, premium, and luxury vehicles. You’ll see different sets of features, materials, engine performance, and technology.
Affordable vehicles focus on practicality, reliability, and cost efficiency. They prioritize basic transportation with fewer frills and simpler designs. Features typically include standard safety systems, modest infotainment setups, and fuel-efficient turbocharged engines. Materials and finishes lean toward durability over opulence, appealing to budget-conscious buyers or those prioritizing low ownership costs.
Premium vehicles blend performance, comfort, and advanced technology. Buick and GMC excel at premium vehicle manufacturing. They elevate driving experiences with more powerful engines, refined interiors, and cutting-edge safety and convenience features. Materials like leather upholstery, real wood trims, and larger infotainment screens set them apart. These vehicles often showcase a brand’s commitment to quality while remaining accessible to a broader audience compared to ultra-high-end models.Â
Luxury vehicles represent the pinnacle of exclusivity and innovation. They emphasize superior craftsmanship, bespoke options, and top-tier technology. Advanced driver assistance systems, high-performance engines, and premium materials like hand-stitched leather and rare wood veneers define this category.
Test-Drive Our New Vehicles for Sale at Thompson Sales
Ready to see which of our new vehicles is for you? Contact us, call (417) 763-6811, or schedule a test drive with our team. We have something for everyone on our lot.
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