What is an out-the-door price on a car? What it includes, and what it does not
The out-the-door price is the total you pay for the car with every tax and fee included, before your trade-in and down payment. Here is what goes into it, what is often left out, and how to get one in writing.
The out-the-door price, often written OTD, is the single number that answers "what does this car actually cost me?" It is the selling price of the vehicle plus every tax, government fee, dealer fee and add-on, minus any discounts and rebates. It is the amount you would hand over to drive the car off the lot if you paid cash and had no trade-in.
It is the most useful number on a dealer quote, and it is the one most often missing from an advertised price, a window sticker, or a monthly-payment pitch.
What goes into the out-the-door price
Every dealer lays the paperwork out a little differently, but an out-the-door total is built from the same parts:
| Part | Adds or subtracts | Examples of how it is labelled |
|---|---|---|
| Vehicle selling price | Adds | Selling price, vehicle price, cash price, agreed price |
| Dealer discounts | Subtracts | Dealer discount, price adjustment, savings |
| Manufacturer rebates and incentives | Subtracts (usually) | Customer cash, factory rebate, loyalty or conquest cash |
| Sales tax | Adds | Sales tax, use tax, state and local tax |
| Government fees | Adds | Title, registration, plates, license, inspection |
| Dealer fees | Adds | Documentation fee, processing fee, dealer prep, delivery |
| Add-ons and optional products | Adds | Service contract, GAP, paint or fabric protection, VIN etching, nitrogen |
The quote should show each of these as its own line. A total with no lines under it cannot be checked.
What the out-the-door price does not include
Two things change what you owe, but they are not part of the out-the-door price itself:
- Your trade-in. The trade-in allowance is a way of paying part of the total, not a discount on the car. If you still owe money on the trade-in, the payoff is added back. See negative equity explained.
- Your down payment or deposit. Cash you put down also pays part of the total.
That is why the out-the-door price and the amount financed are different numbers. The amount financed starts from the out-the-door price, takes away what you are paying up front, and adds any loan payoff. We walk through it in amount financed vs out-the-door price.
A lower monthly payment can come from a longer loan or a bigger down payment without the out-the-door price moving at all. The out-the-door price is the number to compare between dealers, not the payment.
Some quotes also show rebates after the out-the-door total, treating them like a payment. That is not wrong, but it means two quotes can print different "totals" for the same deal. Read every line under the total, not just the total.
Why dealers often lead with something else
An advertised price usually leaves out taxes, government fees and some dealer fees. A window sticker on a new car shows the manufacturer's suggested retail price and destination charge, not what this dealer will charge you. A monthly payment hides the price inside the loan length and interest rate.
None of these is the out-the-door price. When you are comparing offers, asking for the out-the-door price in writing puts every dealer on the same footing. Our guide on how to ask a dealer for an out-the-door price has a message you can copy.
A quick example
These are made-up figures, only to show how the parts fit together:
| Line | Amount |
|---|---|
| Vehicle selling price | $28,500.00 |
| Dealer discount | −$500.00 |
| Manufacturer rebate | −$1,000.00 |
| Sales tax (example rate on $27,000) | $1,620.00 |
| Documentation fee | $499.00 |
| Title and registration | $410.00 |
| Out-the-door price | $29,529.00 |
How tax is worked out, which lines are taxed, and whether a rebate reduces the taxed amount depends on the state. Use the tax the quote prints rather than a rate you looked up. How to calculate an out-the-door price goes through this step by step.
How to check an out-the-door price you have been given
- Make sure every line is listed: price, each discount, each rebate, each tax, each fee, each add-on.
- Add the charges, take off the discounts and rebates, and see whether you get the printed total.
- If you do not, the difference is a question to ask. It might be a fee counted twice, a line left off the page, or a rebate shown in a different place.
- Check which add-ons are in the total and whether you asked for them. See dealer add-ons explained.
To work one out for your own numbers, use the free out-the-door price calculator. You can also upload the quote to Explain My Dealer Quote: it reads the lines, you confirm them, and it rebuilds the total from the quote's own figures with the working shown.
Frequently asked questions
Does the out-the-door price include tax?
Yes. The out-the-door price includes sales tax and the government fees for title and registration, along with dealer fees and any add-ons. If a quote's "total" leaves out tax, it is not an out-the-door price.
Does the out-the-door price include my trade-in?
No. Your trade-in allowance and any down payment are ways of paying the out-the-door price. They reduce what is left to pay or finance, not the out-the-door price itself.
Is the out-the-door price the same as the amount financed?
No. The amount financed is the out-the-door price minus your down payment, deposit and trade-in allowance, plus any payoff owed on your trade-in. The two are only the same if you put nothing down and have no trade-in.
Can I ask for the out-the-door price by email or text?
Yes. Many dealers will send an itemized out-the-door price in writing on request. Ask for every line to be shown, not only the total.
What is a good out-the-door price?
That depends on the car, the market and your state's taxes and fees, so there is no single answer. What you can do is make sure two quotes include the same things, and compare their out-the-door prices line by line. See how to compare car quotes from different dealers.
Got a quote from the dealer? Upload it before you sign. Every fee and add-on explained in plain English, the dealer’s arithmetic checked line by line, five questions to ask, and your reply to the dealer drafted for you. Included with the 30-day pass.
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