Quick Answer
Out the door price (OTD) is the total amount you'll pay to drive a car off the lot. It includes the vehicle's selling price plus all taxes, fees, and add-ons. This is the real cost of the car—not the sticker price (MSRP) that dealers advertise.
What Is Out the Door Price?
Out the door price—often abbreviated as OTD price—is the final, total amount you'll pay for a vehicle. It's called "out the door" because it's literally the amount you need to drive the car out of the dealership's door.
When a dealer quotes you a price for a car, they're usually referring to the selling price or the MSRP (Manufacturer's Suggested Retail Price). But that's not what you'll actually pay. The out the door price is typically 10-15% higher than the selling price once you add taxes, registration, and dealer fees.
Why This Matters
Many buyers focus only on the selling price and are shocked when the final bill is thousands more. Always ask for the out the door price upfront to avoid surprises.
What's Included in Out the Door Price?
The out the door price is made up of several components. Here's exactly what you're paying for:
Vehicle Selling Price
The negotiated price for the vehicle itself. This should be your main focus during negotiations. It may be below, at, or above MSRP depending on market conditions and your negotiating skills.
Sales Tax
State and local sales tax varies significantly. Some states like Oregon have 0% sales tax, while others like California can be 10%+. This is not negotiable—it's set by law.
Registration & Title Fees
Government fees to register the vehicle and transfer the title to your name. These are typically $100-$500 depending on your state. Not negotiable.
Documentation Fee (Doc Fee)
A dealer fee for processing paperwork. This varies wildly: from $0 in some states to $700+ in others. Some states cap this fee by law. May be negotiable depending on your state.
Dealer Add-Ons (Watch Out!)
Extra items dealers add for profit: nitrogen in tires, VIN etching, paint protection, fabric coating, wheel locks, etc. These are often overpriced and usually negotiable or removable.
How to Calculate Out the Door Price
Here's a simple formula to estimate your out the door price before visiting the dealer:
In this example, a car with a $35,000 selling price ends up costing $38,650 out the door—that's over $3,600 more than the selling price. This is why focusing only on the selling price can be misleading.
Pro Tip: Search for your state's sales tax rate and typical registration fees before negotiating. This helps you calculate your own OTD estimate and verify the dealer's numbers.
Out the Door Price vs. MSRP vs. Selling Price
Understanding the difference between these numbers is crucial for negotiating effectively:
| Term | What It Means | Negotiable? |
|---|---|---|
| MSRP | Manufacturer's Suggested Retail Price—the sticker price set by the manufacturer | Yes |
| Selling Price | The negotiated price for the vehicle (may be above or below MSRP) | Yes |
| Out the Door | Total final price including all taxes, fees, and add-ons | Partially |
Don't Do This
"What's the price on this car?" This leads to MSRP discussions and hides the real cost.
Do This Instead
"What's the out the door price?" This forces transparency on the total cost.
How to Negotiate Out the Door Price
The best way to negotiate is to focus on the out the door price from the start. Here's how:
Research Actual Transaction Prices
Before negotiating, know what others are actually paying. Use CarWhere's deal database to see real out the door prices from recent buyers on the exact vehicle you want.
Always Ask for OTD Price in Writing
When contacting dealers, always ask: "What is your best out the door price on [specific vehicle]?" Get this in writing (email or text) so you can compare dealers accurately.
Question Every Line Item
Ask for an itemized breakdown. Challenge any add-ons you didn't request. Things like "dealer prep," "market adjustment," or mystery protection packages can often be removed.
Use Competing Quotes
Get out the door quotes from multiple dealers. Use the lowest quote to negotiate with others. Dealers will often beat a competitor's written OTD price to make the sale.
See What Others Actually Paid
Browse real out the door prices from actual car buyers. Know exactly what you should pay before visiting the dealer.
Frequently Asked Questions
What does out the door price mean?
Out the door price (OTD) is the total amount you'll pay for a vehicle, including the selling price, taxes, registration fees, documentation fees, and any dealer add-ons. It's the final number you write on the check or finance.
What is included in out the door price?
Out the door price includes: the vehicle selling price, sales tax (varies by state, typically 5-10%), registration and title fees ($100-$500), documentation fee ($150-$700+), and any dealer add-ons or accessories.
How much more is out the door price than MSRP?
Out the door price is typically 10-15% higher than MSRP. For a $40,000 MSRP vehicle, expect to pay $44,000-$46,000 out the door depending on your state's sales tax and dealer fees.
Is out the door price negotiable?
Partially. You can negotiate the selling price and dealer add-ons (often removable). Doc fees may be negotiable depending on your state. Taxes and government registration fees are fixed by law.
Why should I focus on out the door price?
Because it's what you actually pay. Focusing only on MSRP or selling price hides thousands in fees and taxes. Dealers sometimes offer "discounts" on the selling price while adding fees elsewhere. OTD keeps them honest.
What is a good out the door price?
A good OTD is typically MSRP minus any discounts/rebates, plus only mandatory fees (tax, registration, reasonable doc fee). Use CarWhere to see what others paid for the same vehicle in your area.
Key Takeaways
- Out the door price is the TOTAL you'll pay—not the sticker price
- OTD includes: selling price + taxes + registration + doc fee + add-ons
- Always negotiate based on OTD price, not MSRP
- Get OTD quotes in writing from multiple dealers to compare
- Question every line item—dealer add-ons can often be removed
- Use CarWhere to see what others actually paid for the same vehicle