What does On The Road (OTR) price mean?

What does OTR mean? Quite simply, OTR price is an abbreviation of On The Road price. As the name suggests, it covers everything you need to get your car on road. It includes the cost of the car, any discounts, and all the necessary on the road fees. This means there are no hidden costs or additional fees for car buyers.

In other words, the OTR price covers more than just the vehicle itself. To allow the car on road legally, the OTR price covers:

  • The car’s registration fee and the printing of new number plates
  • Your first year’s road tax
  • Delivery charges and pre-delivery inspection
  • Finance handling fees (if applicable)

Most dealerships will also add in some fuel too. Plus, the OTR price will factor in VAT.

What does RRP and MRRP mean?

RRP meaning Recommended Retail Price is the same as MRRP, which stands for Manufacturer’s Recommended Retail Price. RRP is basically the price the manufacturer sets for their product. MRRP is exactly the same, it’s just a different way of saying it.

In terms of cars, the RRP and MRRP will include the cost of the vehicle itself and any options. But that’s all. It won’t include the on the road fees mentioned above, which are required to drive the car legally. List price and Manufacturer’s Suggested Retail Price (MSRP) also mean the same as RRP and MRRP.

What’s the difference between OTR and RRP?

What’s the difference between the On The Road price and list price? An easy way to look at it is like this: the list price or RRP is just for the car (usually in white) and any options you choose. Whereas, the OTR is a more detailed breakdown of the costs involved, including the total cost to buy the new car and the additional fees to allow it to be driven legally on UK roads.

Do you always have to pay the OTR Price?

If you’re buying a brand-new car then yes, you will have to pay the OTR price. However, if you’re an expert negotiator, you can always factor in the OTR fees, such as the printing of new number plates and the first year’s road tax, when you’re haggling with the dealer to get the best price possible. Become an expert haggler yourself and follow our tips for negotiating car price.

The only other way to avoid paying some of the OTR costs is to buy a used car, a nearly-new vehicle, or a pre-registered one. That way you won’t have to pay for new number plates or for the first year’s registration. However, you’ll still need to make sure the car has its road tax and is legally roadworthy.

On The Road Price FAQs

We’ve discussed the OTR meaning, what it stands for and what is OTR. We’ve answered what does RRP mean and the list price meaning too. Now, we’ll dive into some more frequently asked questions all on and around the subject of On The Road pricing.

How do you calculate a car’s On The Road price?

OTR price is calculated by adding the car’s RRP list price and any options chosen, with the cost of registration (which is currently £55), the car’s first year of road tax, and any other costs required to drive legally on the road, such as insurance. It’s a figure the dealership will work out for you. Of course, having a general idea of a car’s OTR price can be very handy for budgeting and negotiating. So, it’s definitely worthwhile taking a moment to consider the On The Road fees.

For more on what new and used cars are selling for right now – according to make and model, age and mileage – take a look at our car price guide. It doesn’t cover OTR, but it will let you compare vehicles to give you a clear picture of what’s available in your price range. It’s also really handy for seeing the average car price and what’s a fair cost to pay. Whether you’re looking to buy a Porsche 911, a Skoda Superb, or a Volvo XC60, give it a try to compare car prices today.

What is a car delivery fee?

This fee is what the manufacturer charges the car dealership to have your new vehicle shipped to the dealership’s premises. No matter what new vehicle you purchase – whether a BMW, a Citroen, or a Peugeot – this cost is then passed on to you, the car buyer. If you buy a new car, you’ll see this fee listed on the OTR price.

Can I negotiate dealer fees?

Yes, you can negotiate dealer fees and you absolutely should! Not only can you save money on your new car, you can have a bit of haggling fun in the process. If you’re not sure how to go about it, take a look at our tips for negotiating car price and you’ll come away with all the knowledge you need to secure a better deal.

What does VED stand for?

VED stands for Vehicle Excise Duty. It’s more commonly known as road tax or car tax and is an annual tax drivers must pay for their vehicle. The system is currently split into two main rates: the first-year rate which varies according to the car’s CO2 emissions, and the following years’ rate, which focuses on how much the car cost when new. You can find out more about VED at Gov.uk.

Ensuring there are no hidden fees or extra costs, the OTR price, or On The Road price, is the total cost of a new vehicle, plus all the other fees required to allow your car to be legally driven on the road. Naturally, the OTR includes the car’s list price, also known as Recommended Retail Price (RRP), and all the other costs to get you on the tarmac, such as road tax, the car’s registration, and the printing of new numberplates – without which you wouldn’t be allowed on UK roads.

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Article published November 10th, 2021