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New Car Purchase - Answer You Have Been Looking For

American Government Special Collections Reference Desk

New Car Purchase - Answer You Have Been Looking For

Gloria Law
May 22, 2006

Did you ever wonder why new vehicles have window stickers? Granted – it was a great way to let your neighbors know you just bought a new car!!

Here’s the real reason behind the sticker. In 1958, Senator Michael Monroney proposed a bill that would take the mystery out of new car prices. This bill required that every car manufacturer attach a label to the window that would show the suggested retail price (MSRP), transportation method, freight charges and accessory prices.

Prior to this, price tags did not tell the full story. Very often there was a large discrepancy between the “showroom” price and the actual price.

Now a customer could walk into a new car showroom and shop with confidence. The price of an accessory was no longer a secret. In fact, all hidden charges were now readily available to the customer. Car dealers were no longer able to inflate prices in order to show a higher trade in value. As a result, sales increased as consumer confidence increased.

That’s the way life is – if you apply this principal to anything you are selling. Give the customer more than they expect and they will respond in a positive way. Even if they don’t buy from you they will spread your “gospel of truth” to their friends and neighbors.

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