Woman in yellow sweater underneath a vehicle on a hoist talking to mechanic.

Our Guide to Learning ‘Dealer Speak’

Buying a vehicle comes with enough complications, so why add on the stress of needing to decipher ‘dealer speak’? We’ve written a handy guide explaining many commonly used, but oft-misunderstood, words in the car industry.

Volkswagen Tiguan parked in a city street in Christchurch

> Runout

A ‘runout sale’ is similar to your favourite shoe store putting sandals on sale at the end of summer. An ‘end-of-season’ sale if you will, the runout is an older, tried-and-tested model that’s at the end of its life cycle. Runout sales are a dealer’s chance to sell these models, typically at a discounted rate, before the new models hit the market.

> On-road Costs

What’s that tiny little +ORC affixed to the price of a vehicle mean? ORCs, or on-road costs are the additional costs you owe when purchasing a vehicle that makes your new ride road legal and ready. These costs can vary depending on the dealership, but they typically cover at least new vehicle registration, WOF, road user charges for diesel vehicles, and pre-delivery inspection.

Conversely, ‘driveaway’ is a term used when the on-road costs have already been paid for. This is typical for demonstrators and used vehicles that are already registered, so the price you see is the price you pay.

We break it down more for you in our blog, here.

> Trade-in

A trade-in vehicle is one that you ‘trade-in’ to the dealership in exchange for credit towards a vehicle purchase. Your trade-in effectively acts as your deposit, depending on the value, though trade-in values do vary greatly depending on the condition of the vehicle, demand in a particular area, and more.

If you’re ready to trade-in your vehicle, use our handy Vehicle Valuation form today.

Woman in yellow sweater talking to mechanic.

> Facelift

Without having to unveil a complete redesign, a facelift allows the manufacturer to freshen up a model through a few key improvements. A facelift is simpler than releasing a new model, as it typically retains a similar chassis and overall design, with a few changes to styling, interior design, technology, and/or mechanical changes.

Blue Volkswagen Touareg SUV with woman holding child.

> MRP and MSP

MRP stands for Manufacturer’s Retail Price, previously often referred to as the ‘RRP’ or ‘Recommended Retail Price’. This is the price of a vehicle. These prices typically do not include ORCs or any additional costs.

The MSP, or Manufacturer’s Selling Price, is a special sale price on a vehicle. These prices are used during sales and typically do not include ORCs or any additional costs.

> Demonstrator

Demonstrator models are vehicles we’ve registered as part of our stock, but are used at the dealership for various purposes. They’re allocated for test drives, staff vehicles, or service loan cars and usually drive local, easy kilometres. As these vehicles are in our dealership’s care, they are regularly serviced and looked after, as well as typically being late-model to show off the latest range’s features and specs.

With so few kilometres, a great service history, and typically thousands under the MRP of a new vehicle, a demonstrator – or demo – makes a great option for those looking for new and used vehicles.

With a little clarification, the mysteries of car industry jargon can be cleared up – leaving you to focus on what vehicle is best for you.

You can view our diverse range of Volkswagens and ŠKODAs or use the new words while browsing our used vehicle section. If you’d rather get in touch directly with a Product Specialist, you can do so here.

Volkswagen T-Cross
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Please note that imagery and specifications may be of overseas vehicles and include optional extras.