The new car sales process has a language all it’s own, and terms are frequently used that many don’t fully understand. By not understanding the meaning of some of these terms, buyers are kept in the dark and spend more than they should. So let’s review some of the new car buying terminology and what it really means.
* Manufacturer’s Suggested Retail Price (MSRP) – This is found on the new car window sticker and is for many practical car buying purposes, useless to the consumer. It is, as the name says, only a “suggested” retail price. The dealer can sell that vehicle for more or less than that figure at any time.
* Optional equipment. This is also listed on the window sticker and details what options are installed on this vehicle and how much they cost at retail, if anything.
* Destination charge. Basically this is a shipping charge to get the vehicle from the manufacturer to the dealer and is not an amount that can be negotiated.
* Addendum sticker – This an added sticker that is often placed to the side of the manufacturer’s sticker that lists extra options or equipment that the dealer is charging for above and beyond the MSRP or retail price. What you see on this sticker is completely negotiable and often contains highly inflated prices on items like rustproofing, fabric protectant, alarm systems, and so forth. This is an area where you need to be a savvy shopper and refuse to pay for exorbitant accessories. » Read more: Understanding New Car Buying Terminology