Dealer Shrinkage May Increase New Car Prices


New car and truck prices start with the MSRP (Manufacturer’s Suggested Retail Price) which federal law mandates to be published and affixed to all new automobiles delivered by the factory to its dealers, and which must remain on the vehicles until sold to the first consumer.

Although, depending on supply and demand, these new vehicles may be sold at above or below the MSRP, higher prices from factory to dealer, generally higher MSRP’s, lack of desirable product and the subtly important fact of a reduced number of new franchised dealers portend higher prices for the consumer and may compromise the upswing in sales.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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