The Truth About Cars » MSRP http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Fri, 31 Jul 2015 19:00:12 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.2 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars » MSRP http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com 2016 Cadillac CTS-V Undercuts BMW M5 by $10,000, On Sale This Summer http://www.thetruthaboutcars.com/2015/04/2016-cadillac-cts-v-undercuts-bmw-m5-10000-sale-summer/ http://www.thetruthaboutcars.com/2015/04/2016-cadillac-cts-v-undercuts-bmw-m5-10000-sale-summer/#comments Wed, 29 Apr 2015 17:09:53 +0000 http://www.thetruthaboutcars.com/?p=1056466 Cadillac has announced its next V-Series model will sport more than just big horsepower numbers when the third-generation CTS-V arrives to do battle with its German competition. Following the launch of the brand-new ATS-V coupe and sedan this spring, deliveries of the larger CTS-V sedan will begin this summer with a base price of $83,995 before taxes and […]

The post 2016 Cadillac CTS-V Undercuts BMW M5 by $10,000, On Sale This Summer appeared first on The Truth About Cars.

]]>
2016 Cadillac CTS-V

Cadillac has announced its next V-Series model will sport more than just big horsepower numbers when the third-generation CTS-V arrives to do battle with its German competition.

Following the launch of the brand-new ATS-V coupe and sedan this spring, deliveries of the larger CTS-V sedan will begin this summer with a base price of $83,995 before taxes and destination. Dealers are accepting orders now for the 640 horsepower, 6.2-liter supercharged V8-powered full-size Cadillac that’s capable of getting to 60 mph in 3.7 seconds on its way to a top speed of 200 mph.

With that price, the new Caddy undercuts the BMW M5 by nearly $10,000 while offering up more horsepower and torque, making it a performance bargain in the segment. Whether its any good versus the M5 is yet to be seen.

The post 2016 Cadillac CTS-V Undercuts BMW M5 by $10,000, On Sale This Summer appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2015/04/2016-cadillac-cts-v-undercuts-bmw-m5-10000-sale-summer/feed/ 90
General Motors Undercuts Competition With Lower Starting Prices http://www.thetruthaboutcars.com/2015/02/general-motors-undercuts-competition-lower-starting-prices/ http://www.thetruthaboutcars.com/2015/02/general-motors-undercuts-competition-lower-starting-prices/#comments Mon, 02 Feb 2015 13:00:27 +0000 http://www.thetruthaboutcars.com/?p=992402 Looking for a new Cruze, LaCrosse or Terrain? You might have a bit more money left thanks to some undercutting by General Motors. CarsDirect reports GM has dropped the base MSRP on a handful of models by as much as $2,750. As a result, some of those models are lower in price than their competitors. […]

The post General Motors Undercuts Competition With Lower Starting Prices appeared first on The Truth About Cars.

]]>
2015 Chevrolet Cruze

Looking for a new Cruze, LaCrosse or Terrain? You might have a bit more money left thanks to some undercutting by General Motors.

CarsDirect reports GM has dropped the base MSRP on a handful of models by as much as $2,750. As a result, some of those models are lower in price than their competitors. The aforementioned GMC Terrain gained the greatest undercut, falling $4,030 under the Ford Edge with the crossover’s new base of $24,070.

However, to be able to undercut the competition without removing key features, GM has sliced dealer margins on the cheapest trims, such as the Terrain SL, Buick LaCrosse 1SV, and the newly introduced Chevrolet Cruze L. Profit margins on such vehicles being as thin as they are already — the difference between MSRP and invoice on the Cruze LS is $600, but only $81 on the L — the economy models may see or are seeing now incentive inclusions.

The post General Motors Undercuts Competition With Lower Starting Prices appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2015/02/general-motors-undercuts-competition-lower-starting-prices/feed/ 22
Lower Fuel Prices Mean More Savings On Green Vehicle Purchases http://www.thetruthaboutcars.com/2015/01/lower-fuel-prices-mean-savings-green-vehicle-purchases/ http://www.thetruthaboutcars.com/2015/01/lower-fuel-prices-mean-savings-green-vehicle-purchases/#comments Mon, 19 Jan 2015 12:00:46 +0000 http://www.thetruthaboutcars.com/?p=985106 Just like when high fuel prices knocked down the sale price of many a truck and SUV, the current drop in price at the pump is pulling down the prices for many a hybrid, PHEV and EV. Per TrueCar, the No. 1 green vehicle in January to leave more money in its buyer’s wallet is […]

The post Lower Fuel Prices Mean More Savings On Green Vehicle Purchases appeared first on The Truth About Cars.

]]>
2014-kia-optima-hybrid-front-three-quarters-02

Just like when high fuel prices knocked down the sale price of many a truck and SUV, the current drop in price at the pump is pulling down the prices for many a hybrid, PHEV and EV.

Per TrueCar, the No. 1 green vehicle in January to leave more money in its buyer’s wallet is the Ford Focus Electric, which is leaving the lot with 16 percent off of its $29,995 MSRP. The market average for the EV comes out to $25,168.

Taking silver and bronze on the podium are the Ram 1500 Tradesman 4×2 with regular cab and standard bed, and the Toyota Venza XLE, coming with an average of around 11 percent savings off MSRP. Both vehicles are the only ones in the top five that aren’t green vehicles, though the 1500 can be had in EcoDiesel and EcoDiesel HFE trims.

Rounding out the quintet are the Kia Optima Hybrid and Toyota Prius Two, both saving their fans around 10 percent off MSRP for a total of $29,411 and $22,498, respectively.

President John Krafcik said that with automakers “heavily discounting their most fuel-efficient cars to clear inventories,” as well as the majority of consumers becoming more focused on the fuel pump over fuel economy, now is the time to buy a hybrid or EV. He added that “when the pendulum swings the other way,” such vehicles would become more attractive, with pricing to match.

The post Lower Fuel Prices Mean More Savings On Green Vehicle Purchases appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2015/01/lower-fuel-prices-mean-savings-green-vehicle-purchases/feed/ 50
2015 Kia Soul EV Coming To US With $33K Price Tag http://www.thetruthaboutcars.com/2014/09/2015-kia-soul-ev-coming-us-33k-price-tag/ http://www.thetruthaboutcars.com/2014/09/2015-kia-soul-ev-coming-us-33k-price-tag/#comments Fri, 12 Sep 2014 10:00:45 +0000 http://www.thetruthaboutcars.com/?p=911033 Looking for an EV that doesn’t cost Tesla money or resemble a jelly bean? Then Kia might just have what you need with its electrified version of the Soul when it arrives in showrooms later this year. AutoblogGreen reports the compact EV — the South Korean automaker’s first such mass-market offering — will enter showrooms […]

The post 2015 Kia Soul EV Coming To US With $33K Price Tag appeared first on The Truth About Cars.

]]>
2015 Kia Soul EV

Looking for an EV that doesn’t cost Tesla money or resemble a jelly bean? Then Kia might just have what you need with its electrified version of the Soul when it arrives in showrooms later this year.

AutoblogGreen reports the compact EV — the South Korean automaker’s first such mass-market offering — will enter showrooms with a base MSRP of $33,700 before the $7,500 federal tax rebate is applied. The price of admission places the Soul EV above the Nissan Leaf ($28,980), but just below the Volkswagen e-Golf ($35,445).

The base model — dubbed Base — brings a 6.6kW on-board charger and an “exclusive” HVAC system designed to maintain the vehicle’s 93-mile range “by minimizing energy draw.” The UVO eServices system, which provides in-car and — via the UVO app — smartphone info on range and were to pull over for a charge, comes standard. Other amenities available include Bluetooth, rear-camera display, cruise control and power windows.

Meanwhile, the top-of-the-line + — or Plus — model adds heated leather-trimmed seats, fog lights and power-folding mirrors, all for a starting price of $35,700 MSRP pre-rebate.

For those who would rather lease, Kia is offering an introductory $249/month rate for 36 months on the Soul EV Base with $1,999 down. Either way, the crossover will only be available in a few California markets, with expansion planned down the road.

The post 2015 Kia Soul EV Coming To US With $33K Price Tag appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/09/2015-kia-soul-ev-coming-us-33k-price-tag/feed/ 26
Hammer Time: Is MSRP A Mathematical Study In BS? http://www.thetruthaboutcars.com/2012/12/hammer-time-is-msrp-a-mathematical-study-in-bs/ http://www.thetruthaboutcars.com/2012/12/hammer-time-is-msrp-a-mathematical-study-in-bs/#comments Tue, 04 Dec 2012 15:25:34 +0000 http://www.thetruthaboutcars.com/?p=469063 In the olden days known as the late 20th century, an ancient artifact called a “newspaper” would be dropped by your front door. Inside this mostly unrecycled piece of pulp was an automotive “Classified” section. In better times, this magical list of thousands of vehicles would have offered car buyers an incurably acute case of acronymitis. “1994 […]

The post Hammer Time: Is MSRP A Mathematical Study In BS? appeared first on The Truth About Cars.

]]>

In the olden days known as the late 20th century, an ancient artifact called a “newspaper” would be dropped by your front door.

Inside this mostly unrecycled piece of pulp was an automotive “Classified” section. In better times, this magical list of thousands of vehicles would have offered car buyers an incurably acute case of acronymitis. “1994 Camry, ps, pw, a/c, auto, abs, 1 ownr! $5500 Ph#…”.  A short three line list of minimalist communicado would have cost the seller about $50.00 and given them a secondary presence in a newspaper section that made millions for major publishers.

There was only one saving grace if you wanted to find cars for sale that offered big print, big pictures and big discounts. The new car advertising section… and there were two reasons for that.

The first is that the dealer had to follow strict advertising laws that were enforced with an iron hand. You want to sell a car for a low price? Great! Now you get to tell the buyer everything that enables them to enjoy that unusually low price.

Does that price include a $250 discount for trading in a vehicle that is less than 10 years old? Well that’s one way of making it up on the used car side of the ledger if you are Bill Heard Chevrolet. But it’s perfectly legal, and thank you for disclosing it.

Does the cheap price also include seven long lines of legalspeak that are tucked into the nether regions of the ad? With sixteen asterisks and financial terms that would make even a finance major scratch their head? That’s fine. Just make sure you let everyone know the exact model you are selling with those terms, and how many of those specific vehicles are available at your lot.

New car buying was obviously still a bit difficult, even back then. Now it’s even more nuanced when it comes to mathematical misdirections.

Enter the new dealer/manufacturer pricing strategy which, as far as I’m concerned, has become way out of hand.

You start with one model with an insanely small MSRP. It could be $11,990 or $19,995. But you use that model for only about .2% of your sales and about 15% of your publicity.

That car is then given a destination fee that is now usually around the $800 range. So now you have anywhere between another 4% to 7% bump in the real selling price.

Dealer fees then pop up in the sales contract. In certain areas of this country, this is done in concert with low content add-ons. If you want to buy a car somewhere else in the state, good luck. Bogus fees of varying sorts and prices have now become a near universal reality. Especially for those markets that rely on distributors.

These fees often help bump the real selling price another $500 to $700. All of a sudden that cheap low level car of $12k is now at a genuine selling price of $13,500. While the midsized loss leader is edging ever closer to a real selling price of $21,500.

Finally you are levied with tag and title processing fees… and endless time wasted trying to get them reduced or removed.

In many dealerships you may possibly be looking at anywhere between a 7% to 14% jump in the final selling price of the car even before you pay sales taxes.

There is only one thing to blame for all this. The same truth in advertising laws that allowed the same loopholes and gotchas to take place way back in the old media days. It’s deceptive. But many consumers have come to expect these types of deceptions when it comes to buying new cars.

Should this change? Should dealers and manufacturers be compelled to advertise one simple price that reflects all their charges and fees? Or should we continue to play a decades old shell game that’s as useful as VINs etched on a car’s windows, and carpet care treatments, that consist of a low-paid kid from Savannah, Georgia spraying fifteen cents worth of aerosol into the inside of your vehicle.

People should vote with their feet. But sometimes those feet have nowhere to go, thanks to selling practices that go back as far as those old classified sections and the local Sunday comics.

So what should be the standard pricing model for today… when it comes to new cars?

The post Hammer Time: Is MSRP A Mathematical Study In BS? appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2012/12/hammer-time-is-msrp-a-mathematical-study-in-bs/feed/ 66
Dealers Begin Subaru BRZ Price Gouging http://www.thetruthaboutcars.com/2012/04/dealers-begin-subaru-brz-price-gouging/ http://www.thetruthaboutcars.com/2012/04/dealers-begin-subaru-brz-price-gouging/#comments Thu, 12 Apr 2012 15:22:02 +0000 http://www.thetruthaboutcars.com/?p=439567 Well, we knew it would happen. Some dealers are already starting to ask for markups on the Subaru BRZ. And some people are dumb enough to pay them. According to an email received by Inside Line, a dealer is asking for a $5,000 “non-negotiable” markup on their BRZs. Apparently, their allocation is small (gee, wonder […]

The post Dealers Begin Subaru BRZ Price Gouging appeared first on The Truth About Cars.

]]>

Well, we knew it would happen. Some dealers are already starting to ask for markups on the Subaru BRZ. And some people are dumb enough to pay them.

According to an email received by Inside Line, a dealer is asking for a $5,000 “non-negotiable” markup on their BRZs. Apparently, their allocation is small (gee, wonder why!) and many of the cars have been pre-ordered. Hopefully, nobody is dumb enough to indulge this dealer. These cars are going to be readily available in a few months, once all the early adopters have flooded the forums with endless shots of stock BRZs and poorly photographed Monroney stickers. I wonder how Scion dealers will get around their “no haggle” pricing policy? Lots of dealer accessories and rust proofing, no doubt.

The post Dealers Begin Subaru BRZ Price Gouging appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2012/04/dealers-begin-subaru-brz-price-gouging/feed/ 80
Want A New Saab 9-5 For Under $40k? Get Ready To Wait http://www.thetruthaboutcars.com/2010/04/want-a-new-saab-9-5-for-under-40k-get-ready-to-wait/ http://www.thetruthaboutcars.com/2010/04/want-a-new-saab-9-5-for-under-40k-get-ready-to-wait/#comments Fri, 23 Apr 2010 18:50:01 +0000 http://www.thetruthaboutcars.com/?p=353947 US-market details about the long-awaited 2010 Saab 9-5 are starting to emerge, and they’re painting a bit of a frightening picture for the struggling entry-luxe brand. In order to capitalize on the desperation of Saab fans who nearly saw their beloved brand give up the ghost several times in the last year, Saab is releasing […]

The post Want A New Saab 9-5 For Under $40k? Get Ready To Wait appeared first on The Truth About Cars.

]]>

US-market details about the long-awaited 2010 Saab 9-5 are starting to emerge, and they’re painting a bit of a frightening picture for the struggling entry-luxe brand. In order to capitalize on the desperation of Saab fans who nearly saw their beloved brand give up the ghost several times in the last year, Saab is releasing the 2010 9-5 in Aero spec only until the 2011 model year begins. Did we mention that, including destination charges, the 300 hp AWD flagship model will get you only ten bucks change for your $50k check?

A 2.0 turbocharged base 9-5 will retail for “under $40k” according to Saab, but it won’t be available until the 2011s arrive. For comparison, the previous (2009) 9-5 Aero (with a 260hp turbocharged four and FWD) started at a scant $41,425 (before incentives), and a 2010 BMW 535i with a 300hp turbo-six starts for less than two grand more than the new 9-5 Aero, at $51,250. Oh, and short of checking every option and accessory box on a top-trim Buick LaCrosse, there’s no Epsilon II-platformed car on the US market that even comes close to the 9-5 Aero’s price tag (at least until the Cadillac XTS arrives). Given how big of a step up in price the 2010 9-5 represents for the brand, and considering that Saab’s Q1 2010 sales fell under 1,000 units, this new model will be a tough pill to swallow for all but the most die-hard, desperate Saab fans.

The post Want A New Saab 9-5 For Under $40k? Get Ready To Wait appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2010/04/want-a-new-saab-9-5-for-under-40k-get-ready-to-wait/feed/ 55