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Motorcycle OTR price – What does On The Road mean?

Thinking of investing in a new bike? Fancy seeing something new and shiny on the driveway? When it comes to purchasing a new bike, there are many ways to finance your next set of wheels. But, when it comes to how much you should pay and what is included in that price. Figures, finance and abbreviations can become a little off-putting.

If you are looking to purchase your next dream machine from new, you may be surprised to find that the initial price of the bike differs to the amount you actually pay for it.  This is because new car and motorbike dealers add compulsory extras to the cost that mean the vehicle is legally ready to be driven out of the showroom. This is, quite literally, the “On The Road (OTR)” price.

This final cost will be higher than the recommended retail price (the RRP – we’ll come on to that later). This may include the delivery charge from the manufacturer, the Pre-Delivery Inspection (PDI), the motorcycle’s number plates, vehicle road tax, first registration fee and usually some fuel in the tank to see you on your way.

These charges can vary, but some of them are standard and you should keep in mind that you could be looking at £100s in extra costs to ride your new bike away from the dealership.

What is the RRP?

The recommended retail price, the RRP, is the set amount that the manufacturer recommends the retailer should sell the motorbike for. Also known as the list price or sometimes the manufacturer’s suggested retail price (MSRP), these guide prices are designed to help standardise prices among locations and against similar goods and services. Many dealerships offer discounts or promotions that help to lower the RRP of the bike, and you may find that the final OTR price you pay does not exceed the original recommended retail price in the end.

OTR vs RRP

To sum up, the RRP is the cost of the bike, including any VAT payable, whilst the OTR is the final price you pay to ride it away. The OTR price includes compulsory legal requirements that your bike must have in order to be roadworthy from day one, as well as any delivery costs and extras from the manufacturer or dealer.

Can I Avoid Paying The On The Road Price?

If you buy from new you will need to pay the OTR price. However, if you choose instead to purchase a used or nearly new motorbike many of these costs will already have been covered by the original owner.

That said, you will still need to pay for your road tax, delivery charges, and any administration fees that are levied on purchases.  If you buy privately, you will not pay any delivery or admin fees, but there are always more risks involved in this kind of transaction than when buying through a dealership.

Whatever the price you pay for your new motorbike, be wary of deals that look too good to be true and always research the list price of the make and model you are after before you jump straight in. Motorbike dealership prices will vary from location to location, and at certain times of the year you may be able to pick up substantial reductions on price, or excellent promotions that can help keep the cost of your new purchase down.