What Is an Out-the-Door Car Price?
The out-the-door price is the complete vehicle purchase total after applicable tax and charges, before using financing choices such as cash down or net trade equity to change how much you must fund.
OTD is the total price required to buy the vehicle and complete the transaction. It normally includes the negotiated vehicle price, taxable dealer charges, agreed add-ons, sales/use tax, title, registration, plate and other required government charges.
Out-the-door price formula
A practical formula is: negotiated selling price − applicable discounts/price reductions + dealer-controlled charges + agreed add-ons + sales/use tax + title/registration/plate and other government fees. Rebates and trade treatment can affect the tax base differently by state, so they should remain visible rather than being buried inside one net figure.
What OTD price includes
- Negotiated vehicle selling price
- Applicable sales or use tax
- Title and registration
- Plate/license charges
- Dealer documentation/processing fees
- Accessories or protection products you agree to buy
- Other required transaction charges
- Location-specific government fees
What OTD price does not mean
OTD is not the monthly payment, loan amount, cash due after trade or total interest over the loan. Those numbers depend on down payment, trade equity, negative equity, APR and term. Separating purchase price from financing prevents a longer loan from making a more expensive deal look cheaper.
Example
A $30,000 negotiated price plus $2,100 of tax, $600 of title/registration and an $800 dealer fee produces a $33,500 OTD price before any optional product. A $5,000 down payment might reduce the amount you need to finance to $28,500, but the OTD price is still $33,500.
How to ask for an OTD price
Ask the dealer to email or print a complete buyer's order showing the exact vehicle, selling price, discounts, dealer fees, add-ons, tax and government charges. The Federal Trade Commission recommends getting the OTD price in writing before visiting and says it should include all charges and fees.
FTC: Car Dealer Ads and Promotions — Know Before You Go
Why two OTD quotes can still be hard to compare
Make sure the quotes use the same vehicle, tax location, incentive eligibility and included products. Keep trade allowance and payoff separate: one dealer can inflate the trade offer while also raising the replacement vehicle price. For multiple written offers, normalize the components before choosing the lowest total.
Compare up to three dealer quotes.
OTD price vs. MSRP vs. amount financed
MSRP is the manufacturer's suggested retail price. Selling price is the negotiated vehicle price. OTD price adds tax and transaction charges. Amount financed is the credit principal after the contract applies down payment, trade equity/negative equity and financed products as applicable.
Frequently asked questions
Does OTD include sales tax?
Yes, applicable sales/use tax is normally part of the OTD purchase total.
Does OTD include a trade-in?
Trade treatment can affect tax and funding, but keep the underlying OTD purchase price visible before applying net trade equity.
Does OTD include dealer fees?
Yes, dealer-controlled fees charged as part of the purchase should be included so the quote reflects what you actually pay.
Does OTD include loan interest?
No. Interest is the financing cost paid over time, not the purchase transaction total.
Calculate an estimated OTD price.
Rates and fees can change. State-specific calculators identify their review date and separate fixed source-backed amounts from user-entered or location-dependent estimates.
Review official sources