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.

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.