The out-the-door price is the selling price plus all fees and agreed-upon add-ons. It is the total breakdown of what the final price would be.
This includes non-negotiable fees like sales tax, title fees, and registration fees, as well as other costs such as the vehicle selling price, documentation fees, destination fees, and other add-ons.
What Is the Out-the-Door Price?
An out-the-door price does not mean you have to pay cash.
The out-the-door price is the total amount to be paid for a vehicle. This is the final price, with no other extra fees to be paid.
The price advertised by the dealer often does not show the total cost or additional fees, which means it may not reflect the actual total price of the vehicle.
The out-the-door price covers everything you need to pay and should be requested before negotiating or visiting the dealership.
The out-the-door price is what you should be more concerned about when considering a vehicle, even before trying to decide on a monthly payment.
What Does the Out-the-Door Price Include?
The out-the-door price is the total breakdown of the vehicle price, including taxes and fees.
Here is a simple out-the-door price example: Dealer A might advertise a car for $30,000 and Dealer B for $35,000. You might be tempted to think that Dealer A is cheaper, even without getting the total breakdown of each vehicle. In the end, you might discover that the OTD price of Dealer A is higher than Dealer B after other fees and add-ons have been included.
The out-the-door price is not the same as the advertised price and, in many cases, may not even be close. This should be taken into consideration before making any calls or visiting the dealership.
It is a good idea to request an itemized out-the-door price so you can clearly see each charge included in the total. The out-the-door price may include:
- Vehicle selling price
- Sales tax
- Title fees
- Registration or license fees
- Documentation or dealer processing fees
- Destination charge
- Dealership add-ons or accessories
- Other required state or local fees
These are some of the extra charges you should be aware of even before negotiating the vehicle’s selling price.
What Is Often Negotiable in the Out-the-Door Price?
When comparing vehicles from different dealerships and trying to make a confident decision, here are some things to consider.
During an out-the-door price negotiation, these are areas where you may be able to negotiate fees or ask for discounts before making payment.
If any fee on the out-the-door price breakdown is unclear, you should ask the dealership for a clearer and more detailed explanation.
Negotiable charges are usually those set by the dealership or added as optional products and services. These may include:
- Extended warranties or service contracts
- Paint protection
- GAP insurance
- Vehicle selling price
- VIN etching
- Market adjustment fees
- Advertising fees
- Dealership preparation fees
- Rustproofing
- Fabric protection
- Window tinting
- Wheel locks
- Nitrogen-filled tires
- Other dealer-installed accessories or add-ons
Any extra add-ons you do not want can usually be declined or removed, and you can request a new out-the-door price breakdown. Walking away is also an option if you are not satisfied with the deal.
What Is Non-Negotiable in the Out-the-Door Price?
Non-negotiable out-the-door price fees may vary based on the state and the vehicle’s value. Some states may also require additional taxes or fees for local infrastructure and other government-related costs.
These fees are not set by the dealership and generally cannot be negotiated.
They may include:
- Sales tax
- Title fees
- Registration fees
You may also see these fees grouped together as TTL, which stands for tax, title, and license.
Out-the-Door Price Calculator
You can use our OTD Calculator to get an estimate of what you may be paying.
Our calculator does not cover every possible add-on, dealership requirement, or hidden cost that may be included in the final price.
However, it can give you a useful estimate and help you create a budget to work with. Try the OTD Calculator.
Visit: https://outthedoorcalculator.com/
Keep in mind that this is only an estimate and may not reflect the exact amount you will pay.
Conclusion and Takeaway
Avoid starting the negotiation at the dealership if possible. To reduce pressure, it is often better to negotiate from home.
Before worrying about the monthly payment, first find out the out-the-door price. You can request the OTD price online or over the phone and use it to determine which type of vehicle fits your budget.