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This post could save you over $600 in add-ons on your next vehicle purchase.
The window sticker you see on every new car in America is required by federal law to be there. And if you think it's designed to be as confusing as possible to read, you're correct.
So let me walk you through it. Using these two stickers as the example.
The official name is a Monroney label. It's been federally mandated since 1958.
At the very top you have the vehicle description. Make, model, trim, engine, transmission, exterior and interior color. Read this section carefully every time. Make sure the trim level and configuration match exactly what you were shown online. The bait and switch games start here.
Below that is the standard equipment section. Everything listed here is included in the base price at no extra charge. If a salesperson points to any of these and implies they're a bonus or an upgrade, they're not. They come with the car.
Next comes the options and pricing section. This is where the base price gets built out with factory-installed packages and individual options. Each one has a price next to it. Add them up yourself. Some bundles include features you want alongside ones you don't. Know exactly what you're paying for.
Then there's the destination charge. That's the manufacturer's fee to ship the car from the factory to the dealership. It's the same at every dealer for that model. Non-negotiable.
That brings you to the total MSRP. The Manufacturer's Suggested Retail Price. Suggested. Not fixed and not final. The starting point for your conversation.
Now here's where it gets important.
On the Equinox sticker you'll notice some items marked "dealer installed." This does not mean what most people think it means. These are still factory OEM items, ordered from the manufacturer. The dealer simply has to physically install them on the car before it can be delivered to you. They're part of the vehicle's legitimate option list.
That is completely different from what you see on the second sticker.
That second label is called an addendum. The dealer tapes it right next to the Monroney label. It's not federally mandated. It's not from the manufacturer. It's entirely from the dealership.
Look at what's on this Silverado addendum:
Nitrogen: $99.95. Your tires already come filled with air which is 78% nitrogen. This is effectively a charge for nothing.
Door Edge Protect: $169.00. Rubber trim pieces that cost the dealer maybe $20 to install.
Exhaust Tip: $149.00. A cosmetic chrome piece slipped over the existing exhaust.
Wheel Locks: $189.00. A set of lug nuts with a unique key pattern. Available on Amazon for $25.
That's $606.95 in add-ons with almost no hard cost to the dealer and almost no value to you.
Every single one of those is negotiable. Ask for them to be removed entirely or discounted out of your out-the-door price before you sit down.
One sticker is the law. The other is the profit play.
Now you know the difference.
Told one of our subs I was scared his crew might have done a bad job, since they messed up before.
I’m expecting homie to say “100% all good this time, everything’s perfect” and instead he tells me he’s scared too.
🤕
@SecretCFO This is very interesting! Could you give an example of how this would convert to the construction/remodeling industry?
Considering that we don’t normally carry inventory so it eliminates a good chunk of that risk factor in the example you gave!