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There’s one of them in the window of every car on the lot. It’s the law! They’re the tools of both car buyers and automotive journalists, and even if you might take those lowly window stickers for granted when your're out shopping for a new car, did you know they have a name?
It has been 50 years since our government passed legislation requiring all American dealers to attach these labels to every new car listing essential information about the vehicle's pricing.
Ironically, while those same window stickers may be regarded as somewhat baffling, and might even be ignored by some buyers, the Monroney sticker (as it is called, after the Senator who introduced the legislation) is covered with important information. Savvy buyers can use the information to assist them when shopping, and dealers can also use it to showcase their products and services.
If you’ve never paid much attention to the infamous Monroney, we’ve assembled a detailed explanation of the information on the sticker, plus tips on how to work that data while negotiating a purchase.
VEHICLE DESCRIPTION
This section contains all the basic information about the car including the Vehicle Identification Number (VIN) which should match the VIN on the driver's side dashboard at the base of the windshield. It lists the color, make and model, type of transmission (automatic or standard), and the type of engine (I4, V6, V8, etc.).
STANDARD EQUIPMENT
These are all the features that are included with the vehicle at no extra charge. If this list includes passenger side air bags or ABS, those items are included in the Manufacturers Suggested Retail Price (also known as the MSRP). Some automobiles are sold with different trim levels, with more expensive versions equipped with more standard features, upgraded engine, and enhanced interiors. Sometimes features listed as standard can be traded for those listed as optional and may be incorporated into pricing negotiations. Warranty information will also be included here, which explains the number of years or miles the warranty will last, powertrain coverage (engine, transmission, and axles), and whether it also covers parts and labor or corrosion/rust damage.
PRICING
Perhaps the most important section on the sticker, this section covers the charges that make up the dealer's total asking price, including MSRP, Optional Equipment, and Delivery or Destination Charge. The MSRP is the base price -- excluding optional equipment destination charges -- and represents a certain amount over the dealer's invoice price (which, by the way, is actually higher than the actual cost to the dealer). Sometimes, when a vehicle is in high demand, the dealer may list the car for more than the MSRP and that amount will appear in the Dealer Markup Section. Pricing negotiations should settle somewhere between the invoice price and the MSRP, and can depend largely on how motivated the dealer is to get that car off the lot.
OPTIONAL EQUIPMENT
Features which are not included as standard equipment are listed here, along with the additional costs associated with them. Some vehicles are "loaded" with additional features, which increase the price of the car accordingly. Often equipment is bundled into packages that generally costs less than they would if they were purchased separately – but look at these packages over closely because they may sometimes contain features you don’t really want. If the features you want add up to less than the package, it will be cheaper to buy them separately. As mentioned earlier, the dealer may agree to trade options with those listed as standard. But also, keep in mind that sometimes you might not be able to get some features at all, unless you purchase the complete package. It won't hurt to ask.
DESTINATION CHARGE
This fee is describes the cost of shipping the vehicle from the plant to the dealer and is rarely negotiable. Most manufacturers charge a flat fee on all vehicles and is usually the same regardless of where in the country you actually live. This charge is included in the final price of the car.
DEALER MARKUPS
When an automobile is particularly popular the dealer can increase the costs of an automobile above the MSRP. In this instance you may want to check with other dealers to determine whether this extra charge is reasonable and in line with what other
