How To Read A New Car Window Sticker

If you've ever gone shopping for a new car, you have undoubtedly seen them: giant white labels affixed to the window. They're usually covered in numbers and charts and use strange acronyms like IIHS, EPA, and MPG. What the heck are these stickers and why are they so important?

A Little History

When World War II broke out, the United States halted most major manufacturing that was not "essential" to the war effort. Most factories were converted to make war supplies (tanks, planes, bullets, bombs, guns, uniforms, etc.). As part of this conversion, production of non-military automobiles were curtailed and then ultimately stopped in 1942.

When the war ended in 1945, thousands of servicemen returned home to their families and vehicle manufacturers quickly resumed production. Since no vehicles had been produced for nearly four years, the public was clamoring for new makes and models. As the economy got back on its feet, the law of supply and demand began to reestablish itself. New vehicles were in short supply and demand for new cars was extremely high.

During the war, many car dealerships suffered tremendous financial losses (many even went out of business). As the nation resumed normal business and began exercising its financial muscles again, some unscrupulous dealers saw this as an opportunity to charge exorbitant, unnecessary fees to make up for previous losses. Not to be outdone, manufacturers also found ways to line their pockets. Some virtually extorted money from potential franchise owners, bullied dealers to push certain products, and accepted huge sums of money from dealer owners to allocate more vehicles to them and less to their competitors.

By the mid 1950s, the government had received so many complaints (by both consumers AND dealers) that they were forced to take action. In 1955, a congressional committee was formed to establish general guidelines for how manufacturers award automobile franchises. Several years later, Congress decided to investigate "deceptive" dealers after hearing repeated allegations of abusive practices. In 1958, this congressional committee, known formally as the Interstate Foreign Commerce Committee, passed the Automobile Information Disclosure Act. The act required all new vehicles sold in the United State to carry labels that offered potential buyers specific information such as the manufacturer's suggested retail price (MSRP), standard and optional equipment and their costs, as well as general consumer information. The committee was headed by Oklahoma Senator Almer Stillwell "Mike" Monroney. As a result, these stickers are often referred to as "Monroney Stickers".

 

 Understanding The Monroney Sticker 

  A typical Monroney Sticker for a new Hyundai Sonata

1. Model Information
This section of the sticker explains most of the vehicle's identifying information such as its model name, model year, make (manufacturer), trim level, vehicle identification number, engine and transmission information, port of entry (if made outside the U.S.), exterior and interior vehicle colors. In addition, this section often shows the selling dealership's name and address.

2. Standard Equipment
This part of the sticker details the standard or basic equipment that are included in the manufacturer's suggested retail price (MSRP). Items in this section are often grouped according to their function and location: safety features, comfort/convenience, powertrain, etc. This area also details manufacturer warranty information. This is considered by many to be the most important section as it allows consumers to compare the basic features of a vehicle to its competitors.

3. Optional Equipment
This area is where you will find information on the vehicle's manufacturer-installed optional equipment and their respective costs. Similar to the standard equipment section, many automakers group these options into "packages" (i.e. technology package, style package, comfort package, etc.). These options are typically desired, but not essential, features such as heated seats, GPS, Bluetooth, etc. This area also typically discloses the vehicle MSRP.

4. Parts Content
This section of the sticker tells consumers the percentage of parts from a specific country, as well as its final assembly point. For those consumers who wish to only "Buy American", this section can be particularly frustrating. Vehicle manufacturing, like many other industries, has become something of a global partnership. To keep costs down, companies often import parts from one country and assemble them in another. As such, it is very possible that a consumer may find a vehicle with 90% of its parts from Japan, 10% from the United States, the engine and transmission made in Germany, and the final product assembled in Mexico.

5. Fuel Economy
Arguably the most prominent feature of the Monroney Sticker is the fuel economy section. This area, sometimes called the "EPA Label", gives consumers estimates of the vehicle's miles-per-gallon on the highway and in the city. Many people find this area especially important because it helps them compare MPG numbers of one model against another. The EPA Label (named for the Environmental Protection Agency) was recently revised and now features a combined highway/city MPG figure with the city and highway estimates next to it.

6. Safety Ratings
This area informs consumers about the specific model's safety rating as determined by the National Highway Traffic Safety Administration, a government agency. The NHTSA tests many (though not all) vehicles each year to determine their safety - rating them using a 5 star system. On some models, the sticker will include ratings from the Insurance Institute for Highway Safety (IIHS). Since the NHTSA cannot test every car released, this section will sometimes be blank. This does not mean the vehicle is unsafe, however.

7. Environmental Performance
This part of the Monroney Sticker, often referred to as the Environment Label, provide consumers with ratings ranging from from 1 to 10 based on the vehicle's carbon dioxide emissions. It details two specific scores: a global warming score and a smog score. The lower the score, the more "environmentally friendly" the vehicle.

As you can see, when you are shopping for a new car, the Monroney Sticker is a great source of information. It will help you to compare similar models to determine the best vehicle for your specific needs. If you have specific questions about your vehicle and cannot locate your Monroney Sticker, feel free to contact Hyundai of Louisville. We'll be happy to help.


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