Glossary of Terms
Glossary of Terms
The MSRP is the manufacturers' and/or distributors' suggested retail price in the U.S.A. The MSRP is collected from a variety of third party sources which we believe to be reliable, however; no assurance or guarantee can be given that this information is accurate, complete or reliable, or that it will be free of errors and omissions. Unless indicated, the MSRP does not include shipping from manufacturer, dealer prep, state taxes, title, license and other fees as applicable.
The invoice price is calculated to be the same as the amount the dealer is invoiced or billed by the manufacturer for the product, including any optional features installed by the manufacturer. The invoice price is collected from a variety of third party sources which we believe to be reliable, however; no assurance or guarantee can be given that this information is accurate, complete or reliable, or that it will be free of errors and omissions. Unless indicated, the invoice price does not include shipping from manufacturer, dealer prep, state taxes, title, license and other fees as applicable.
Standard features comprise specifications, items, features and equipment that are included by the manufacturer in the base model. Standard features generally vary by manufacturer.
Optional features are items, features, equipment and accessories that are not included with the manufacturer’s base model. Optional features may be offered and added by the manufacturer or the local retailer. Additional options and accessories may be offered by the local retailer exclusively. Local retailer model inventory may or may not match optional features configured.
The base model is comprised of standard features included by the manufacturer as standard equipment. Optional features offered by the manufacturer and/or the dealer are not included in the base model.
Shipping is also known as freight or destination charge. Shipping is the fee charged to transport the model from the point of manufacture to the retailer. Shipping fees vary by manufacturer, and can be based on mileage, load factors, fuel costs, handling costs, permitting fees, and other transportation factors.
Prep is also known as make-ready or pre-delivery set-up. Prep is the fee charged by the retailer to prepare the model for display, show, demonstration, and/or delivery. Prep fees are based on costs of handling, cleaning, fueling, inspecting, testing, and a variety of other activities that may be required by the retailer to properly present and deliver the model. Prep fees vary by product type, size, product complexity, labor rates, and other factors.
Retail incentives are also known as manufacturer to customer incentives. Retail incentives encompass all methods by which manufacturers attempt to stimulate product sales by reducing the net cost to consumers via retail promotion. Retail incentives include promotions such as cash rebates, reduced interest rate financing, power upgrades, options packages, extended warranty packages, accessory packages, and more. Incentives vary by product type, vary by manufacturer, may vary by model, may vary by geographic region, are usually time-sensitive, and may be subject to availability and other customer and dealer qualifications.
Wholesale incentives are also known as manufacturer to dealer incentives, and come in a wide variety of programs and packages. The most common wholesale incentive programs are:
Inventory Financing Support: also known as floorplan support, is designed to help the dealer pay the cost of financing its inventory
Inventory Rebates: rebates designed to help the dealer market and sell certain product that is not selling at the projected sales rate
Carryover Rebates: rebates designed to assist dealers market and sell non-current model year products
Volume Bonuses: bonuses or rebates given to the dealer when achieving certain sales targets
CSI Bonuses: customer satisfaction index bonuses or rebates given to the dealer when achieving certain CSI goals
Advertising Allowances: also known as co-op programs, these allowances are designed to help the dealer pay for local or regional marketing efforts. Such marketing efforts may include advertising, product show attendance and display, and other special events
The calculation of invoice pricing does not take these wholesale incentives into account. Wholesale incentives are generally paid to the dealer via rebates; however they may also be paid via off invoice discounting or by other methods. Not all manufacturers offer wholesale incentives, and not all dealers receive wholesale incentives.
Finance rate (APR) is the annual interest rate for the purchase of a recreational product. It is the cost of credit charged to the purchaser, and varies due to many factors, including but not limited to product, price, lending institution, and purchaser credit history