How To Read Car Price Stickers

Step 1: Identify the Monroney

The Monroney sticker is a government mandated sticker price which comes directly from the factory. All negotiations should start with the MSRP (Manufacturer's Suggested Retail Price) and go down from there.

Step 2: The Mark-Ups

The dealer mark-up sticker shows the additional fees and add-ons that the dealer has applied after it arrived from the manufacturer. Typically, these price increases on the vehicle have higher profit margins for the dealer. Never negotiate from the dealer sticker, but instead, start from the factory invoice price, which is 2-5% below MSRP.

Step 3: Healthy Suspicion

Freight or dealership fees are the inherent costs to bring the car from the factory to the dealer. Make sure that these fees for washing, cleaning and preparing the vehicle are modest.