Understanding the Difference Between MSRP and All-In Price Advertising 

With holiday promotions, Boxing Day sales, and New Year deals in full swing, car shoppers will often see two numbers: the Manufacturer’s Suggested Retail Price (MSRP) and the dealer’s advertised price. They might look nearly identical but knowing how they differ can help you avoid surprises when it’s time to buy. 

MSRP vs. Dealer’s Price

MSRP is the price the automaker recommends for the vehicle. It’s a guideline, not a fixed amount. Think of MSRP as the manufacturer’s reference point – not the total amount you’ll pay. The actual price often varies from dealer to dealer depending on their fees, discounts, or promotions.  

Importantly, all Ontario dealers and salespersons must be registered with OMVIC, the province’s motor vehicle sales regulator, and must follow all-in price advertising laws 

What Is All-In Price Advertising

All-in pricing is a legal requirement under the Motor Vehicle Dealers Act (MVDA). Every advertised vehicle price, new or used, must include all fees the dealer intends to charge, such as freight, pre-delivery inspection (PDI), and administration fees. 

The only extra costs allowed on top of the advertised price are HST and licensing, unless you choose optional products like an extended warranty or rustproofing. Remember: optional products are exactly that – optional. You’re never required to buy them. If a dealer pressures you to add products you don’t want, you can choose not to proceed with the purchase and walk away. 

If a dealer quotes you a higher price than what was advertised, insist they honour the advertised price, or walk away and contact OMVIC. 

Why It Matters

All-in pricing protects consumers from hidden or surprise fees and helps make vehicle shopping fairer. It allows you to compare prices between dealers with confidence, knowing each price represents the total cost before tax and licensing. 

When the Rule Applies

All-in price advertising applies only to OMVIC registered dealers. It doesn’t cover private sellers or manufacturers. 

When you see MSRP listed on a manufacturer’s website or in a “build and price” tool, that price comes from the automaker, not a dealer. To tell if an ad is from a dealer, look for details like a stock number or vehicle identification number (VIN). If those aren’t listed, it’s likely a manufacturer ad. 

Cash vs. Loan Pricing

Some dealers advertise one price for paying cash and another for financing. This can be misleading and non-compliant with Ontario’s all-in pricing rules if it is not clearly and prominently displayed in the ad. These terms can’t be hidden in fine print or small disclaimers. 

In short, the advertised price must be accurate for any payment type – cash, finance, or lease – unless stated otherwise in a way that’s easy to see and understand. 

The Problem with Fine Print

Fine print can’t contradict the main advertised price. If an ad says a vehicle costs $25,000, but the small print adds “plus admin fee” or “plus freight,” that is a violation of the legislation (law). 

The total price shown in large print must include everything the dealer intends to charge, before taxes and licensing. No surprises should appear when it’s time to sign. 

Before You Sign

Review your Bill of Sale carefully. The detailed breakdown may show smaller amounts for certain items, but the total before HST and licensing must match the all-in advertised price, unless you’ve chosen optional add-ons. 

Remember, once you sign the contract, it’s binding. The MVDA doesn’t include a cooling-off period like those for gym memberships or newly built condos. Make sure the numbers add up before you commit. 

What to Watch For

Check the ad: The price must include all mandatory fees like freight, PDI, etching, and administration. 

Confirm the total: The pre-tax total on your Bill of Sale should match the advertised all-in price. 

Question extra charges: If new fees appear that weren’t in the ad, ask for clarification or have them removed. 

Read carefully: Any terms or conditions must be clearly shown, not hidden in fine print. 

Report concerns: If you think a dealer isn’t following the rules, contact OMVIC at [email protected] or 1-800-943-6002. 

The Bottom Line

During the busy holiday shopping season, and with New Year sales just around the corner, all-in price advertising helps you understand the true cost of a vehicle before you buy.  

Knowing the difference between MSRP and all-in pricing, and watching for any hidden conditions or fees, can help you make informed choices and avoid surprises when it’s time to sign a contract.