Umair Ramzan 
When shopping for a new vehicle, you will come across some different terms and acronyms that may be unfamiliar to you. One such term you may come across is MSRP with DFC, which stands for Manufacturer’s Suggested Retail Price with Destination and Freight Charge. In this post, we will break down what this term means and how it relates to the overall pricing of a new vehicle.
What is MSRP?
The manufacturer’s Suggested Retail Price (MSRP) is the price that a manufacturer recommends a vehicle be sold for at the dealership. This price is based on the cost of production, research and development, and marketing expenses. It’s important to note that MSRP is not the same as the invoice price, which is the amount a dealership pays the manufacturer for the vehicle.
What is the Destination and Freight Charge?
The destination and freight charge (DFC) is the fee added to the MSRP to cover the cost of shipping the vehicle from the manufacturer to the dealership. This fee can vary depending on the car’s make and model and the dealership’s location. It’s typically around $1000 -$2000
Why is MSRP with DFC Important?
MSRP with DFC is important because it gives you an idea of the base price for a new vehicle before any additional fees or taxes are added. By understanding the MSRP with DFC, you can better compare the prices of different vehicles and more accurately understand the overall cost of a new vehicle.
While MSRP with DFC is a useful tool for understanding the pricing of a new vehicle, it’s important to remember that this price is not always the final price you will pay. Dealerships may offer discounts or incentives on the MSRP with DFC, and additional taxes or fees may be added to the final price of the vehicle.
It is also important to understand that the dealership may have some negotiating room on the MSRP. It is always good to research the market prices in the area you are looking to buy.
Frequently Asked Questions
Is MSRP the same as the final price of the vehicle?
No, MSRP is the manufacturer’s suggested retail price for the vehicle and does not include additional fees or taxes. The final price may be different from the MSRP.
Can I negotiate the MSRP with DFC at a dealership?
Yes, dealerships may offer discounts or incentives on the MSRP with DFC, so it’s always a good idea to negotiate and research the market prices before making a final decision.
What other costs should I be aware of when buying a new vehicle?
In addition to the MSRP with DFC, there may be additional taxes, registration fees, and financing or warranty costs that you will need to take into account when buying a new vehicle.
Can I get the same vehicle for different prices depending on where I buy it?
Yes, prices may vary depending on location, dealership, and availability. It’s always a good idea to research prices and negotiate before making a final decision.
Overall, understanding MSRP with DFC is an important step in understanding the pricing of a new vehicle. While it’s not the final price you will pay, it’s a good starting point for comparing prices and negotiating with a dealership. Remember to always do your research, compare prices, and negotiate before making a final decision.
What is the difference between MSRP and the invoice price?
The MSRP is the price at that a manufacturer recommends a vehicle be sold at the dealership. In contrast, the invoice price is the amount a dealership pays to the manufacturer for the car. The invoice price is typically lower than the MSRP and can be used as a starting point for negotiation.
Is the DFC fee always fixed or can it vary?
The DFC fee can vary depending on the vehicle’s make and model and the dealership’s location. Some manufacturers also change their DFC based on the packages and options selected on the vehicle.
What is the average DFC fee for a new vehicle?
The average DFC fee for a new vehicle is around $1000 – $2000. However, this can vary depending on the vehicle’s make and model and the dealership’s location.
Is it possible to get a new vehicle below MSRP?
Getting a new vehicle below MSRP is possible, particularly during sales or promotional events or if the dealership wants to clear its inventory. You can also look for discounts and incentives the manufacturer offers or negotiate with the dealership.
How can I find out the MSRP with DFC for a specific make and model?
You can typically find the MSRP with DFC on the manufacturer’s website or third-party websites providing pricing information for new vehicles. You can also ask the dealership for the MSRP with DFC of a specific make and model.
Does MSRP with DFC include additional fees such as registration fees or taxes?
No, MSRP with DFC does not include additional fees such as registration fees or taxes. These fees will be added to the final price of the vehicle.
How does MSRP with DFC vary from one dealer to another?
MSRP with DFC is set by the manufacturer. Still, dealerships may have room to negotiate and offer discounts or incentives on the MSRP with DFC. Researching and comparing prices across different dealerships is important before making a final decision.
