What Is an Out-the-Door Price?
It is the single number that tells you what you will actually pay. Here is what belongs in it.
The short answer
The out-the-door (OTD) price is the total amount you pay to buy the car and drive it away. It includes the vehicle price plus taxes and every fee. It is the best number to compare between dealers, because a low sticker price can hide high fees.
What is in an out-the-door price
- Vehicle price after any discount and after your trade-in.
- Sales tax, including local tax where it applies.
- Title fee charged by the state.
- Registration fee charged by the state.
- Dealer documentation fee, which is set by the dealer and not the government.
- Any add-ons you agreed to, such as a service plan or window tint.
What is usually not in it
- Interest. If you finance, the finance charges come on top of the price.
- Add-ons you decline.
- The value of the car you trade in. It is subtracted from the total, not added.
How to ask for it
- Ask the dealer for an itemized out-the-door quote in writing before you visit, or before you sit down to negotiate.
- Check each line against what the state charges. Our state pages list the tax rate, title and registration fees we have confirmed.
- Question any fee you do not recognize. Documentation fees are the dealer's charge, and some states cap them. See the dealer documentation fee guide.
- Compare the total, not the monthly payment.
Tip: Enter the quote into the car sales tax calculator to check the tax and government fees. Whatever is left over is the dealer's own charges.
A sample out-the-door breakdown
Here is one deal in Texas: a $28,000 car, an $8,000 trade-in and a $150 dealer documentation fee.
Price after trade-in: $28,000 − $8,000 = $20,000 taxable.
Sales tax: $20,000 × 6.25% = $1,250.00.
Title application fee: $33.00. Registration: $50.75 plus the $1 TexasSure fee = $51.75.
Dealer documentation fee: $150.00, which Texas does not tax when it is stated separately.
Out-the-door price for the new car: $21,484.75 ($20,000 + $1,250 + $33 + $51.75 + $150).
The same $28,000 car with no trade-in would come to $29,984.75, because the tax is charged on the full price.
The same deal in California
Move the same deal to California, with a 1% district tax, and it comes to $22,899.00. California does not lower the tax for a trade-in, so tax is charged on the full $28,000: $2,030 at the 7.25% base plus $280 of district tax. DMV registration fees add $424, and the transfer fee adds $15. Two dealers with the same price can quote very different totals once the state rules are applied.
Red flags in a quote
- A fee with a vague name. "Dealer service," "prep" or "market adjustment" lines are the dealer's charges, not the government's.
- Add-ons you did not ask for. Service plans, window tint and similar items should only be there if you agreed to them.
- A quote that shows only a monthly payment. Ask for the itemized total first, then look at financing.
- A documentation fee above your state's limit. Where a state sets a limit, check the fee against it. See the dealer documentation fee guide.
- Tax that does not match your state's rules. If your state credits a trade-in and the quote taxes the full price, ask why.
Who collects the tax
Most of the time the dealer collects the tax at the sale, but not always, and the difference changes what appears on your quote:
- Kansas: the dealer collects the tax and gives you a statement of tax paid (form DST-8) to hand to your county treasurer when you register.
- Louisiana: you pay the state and local tax to the Office of Motor Vehicles when the vehicle is registered or titled.
- Ohio: tax is paid to the clerk of courts, at your county's rate, when you title the vehicle.
- Nebraska: the county treasurer collects it when you register, within 30 days of the purchase date.
- New York: if you pay sales tax to the dealer, the DMV does not collect it again when you register.
Cash or financing
The out-the-door price is what the car costs before interest. If you finance it, the loan can also cover the tax and fees, and you then pay interest on them for the life of the loan. The car loan calculator with sales tax shows what that costs, and the car payment calculator turns the out-the-door price into a monthly payment.
Why the total can differ from the estimate
Local tax rates, county fees and the value a state assigns to a vehicle can all move the total. A calculator gives you a close estimate to check a quote against, and the final numbers come from the state agency and your dealer.
Calculate it for your state
Keep reading
Car Dealer Documentation Fees
What the fee is, which states cap it, and how to compare it between dealers.
Read guide 6 min readHow Car Sales Tax Is Calculated
The formula, what counts as the taxable amount, and a worked example.
Read guide 5 min readTitle and Registration Fees
What each fee covers and how states set the amounts.
Read guide