What does ‘on the road’ price mean?
If you’re looking to sell your car and buy a new one, chances are you’ll come across the expression – ‘on the road’ price. Or OTR price.
Simply put, this is the total cost of a vehicle once it’s ready for use. This includes all additional charges and essential expenses such as:
👍 Registration fees
👍 Road tax
👍 Dealer charges
It ensures the buyer understands how much is required to buy a vehicle to be able to drive it away legally. It provides a clearer picture of the actual cost beyond just the purchase price.
Read on to discover more.
- ‘On the road’ price definition
- The difference between showroom and ‘on the road’ prices
- Why it’s important to understand what ‘on the road’ price means
- FAQs
‘On the road’ price definition
The ‘on the road’ price includes everything needed to legally drive a car off the dealership lot, such as the cost of the vehicle, registration, taxes, and any delivery fees. It goes beyond the showroom price, which typically just covers the basic cost of the car itself – more below.
With the OTR price, you’ll know exactly what you’re paying to drive your new car away without any hidden fees.
Showroom costs
Showroom costs feature in the ‘on the road’ price. They refer to the additional expenses of purchasing a vehicle from a dealership beyond the car’s base price. These costs include:
- Admin fees: Charges for processing paperwork and handling the sale.
- Delivery charges: Costs for transporting the vehicle from the manufacturer to the dealership.
- Pre-delivery inspection (PDI): Fees for inspecting and preparing the car before delivery.
- Additional accessories: Optional extras or upgrades fitted by the dealer.
- Vehicle registration fees: Costs for registering the car in your name.
These showroom costs contribute to the ‘on the road’ price and ensure the vehicle is ready for use.
The difference between showroom and ‘on the road’ prices
Showroom price
The showroom price is the amount listed by the dealer for a vehicle before any additional charges. This price covers:
- Base price: The cost of the car itself, including standard features.
- Optional extras: Any added features or upgrades the buyer selects, such as advanced safety systems or premium audio packages.
- Dealership markup: The dealer’s margin can vary based on the vehicle’s demand and market conditions.
The showroom price doesn’t include the costs of making the car road-ready. Therefore, it’s important to understand that this is just a starting point, not the final price you will pay.
‘On the road’ price
The ‘on the road’ price represents the total cost of getting the vehicle legally on the road and includes:
- Showroom price: The base price of the car plus any optional extras.
- Showroom costs: As mentioned above, these include admin fees, delivery charges, pre-delivery inspection, additional accessories, and vehicle registration fees.
- Road tax: Taxes required for driving the car on public roads.
The road price ensures you understand the total financial commitment needed to drive the vehicle legally and comfortably.
Why it’s important to understand what ‘on the road’ price means
Understanding the ‘on the road’ price is important because it reflects the total cost you’ll need to pay to drive your car away from the dealership legally. While the showroom price might seem appealing at first, it often only includes the basic cost of the vehicle and excludes additional expenses like registration, taxes, and delivery fees.
Knowing the ‘on the road’ price helps you avoid surprises and provides a clear picture of all costs involved. This knowledge allows you to budget accurately and make an informed decision, giving you peace of mind when purchasing your new car.
FAQs
What’s the difference between ‘on the road’ and list price?
The ‘on the road’ price includes the list price plus additional charges such as registration fees, road tax, and delivery costs. The list price is the vehicle’s base cost, which excludes these extra expenses.
How much are OTR charges?
‘On the road’ (OTR) charges typically range from £500 to £2,000, depending on the vehicle and location. This includes registration fees, road tax, delivery charges, and sometimes additional dealer fees or optional extras.
Is it time to sell your car?
Ready to learn more about valuing, maintaining, and selling your car? Check out our other guides here, covering everything from hybrid and electric car depreciation to converting your vehicle to dual-LPG fuel.