A Guide to Understanding Car Pricing
When you buy a new car, everyone talks about the sticker. The sticker price, that benchmark to car pricing, that obsequious marker on the side of all new cars: What does it mean? Actually, the window sticker is a rich source of information. A federal statute, enacted in 1958, requires that all new vehicles sold in the United States have a window sticker. Stiff penalties apply to dealers who fail to display this sticker. Among all of the information listed on this sticker of particular interest are the manufacturer’s suggested retail price (MSRP), the engine and transmission specifications, standard equipment including warranty details, optional equipment, and fuel economy information.
Manufacturer’s Suggested Retail Price
The MSRP is the manufacturer’s guideline as to how much the car dealer should charge for that particular car. Keep in mind that auto pricing is flexible. Usually, a dealer will sell the car for a price somewhere between the MSRP and the car invoice price. There are some exceptions. Cars that are in high-demand will, on occasion, sell for more than the MSRP. Rarely, cars that are not selling well may be sold for below the car invoice price. The delivery charge is also noted in the MSRP. This is the charge for getting the car from the manufacturer to the dealership. This charge is, in almost all circumstances, not negotiable.
Engine and Transmission Specs
The car’s essential information is included in this section. Such details as engine size, configuration, and number of cylinders are listed here. Look here also for transmission type, the number of forward gears, and the drive system. This section also lists the VIN number, the vehicle’s unique identification number. You will also find the car’s interior and exterior paint colors here. This information is useful if you ever have to match the paint during a repair.
Standard and Optional Equipment
The standard equipment section lists all features included in the standard auto pricing as well as the car’s trim level. Many cars will have more than one trim package. These packages include such extras as decorative details, larger wheels, enhanced suspension, and upgraded engines. Also listed here are the tire size and type, braking system, and safety features. Other information includes the car’s standard audio hardware (cd player, am/fm radio, etc.), climate control, seating, lighting, and power accessories. Some manufacturer’s stickers will also detail the warranty included with the car.
Optional equipment included on a particular car is listed below the standard equipment. Such things as air conditioning, automatic transmission, moon roof, and upgraded audio packages are listed here.
Fuel Economy Information
The EPA requires that a car’s fuel economy rating be disclosed to new car buyers. This is usually included on the car sticker. The fuel economy data is displayed as a number of miles per gallon, both for city driving and for highway driving. Keep in mind that these figures are estimates and individual mileage may vary.
Dealer’s sticker
In addition to the manufacturer’s sticker, a car may display a dealer’s sticker. This will detail any dealer additions to the standard auto pricing. Included here is pricing on any dealer-added equipment, such as audio equipment, rust protection, or mud flaps.
When you buy a new car, pay attention to the sticker. It provides a map of the manufacturer’s auto pricing. It’s a compact version of your new car’s history, pricing, and potential.