Car pricing definitions

MSRP

Also: Manufacturer's Suggested Retail Price, Sticker Price

The price set by the manufacturer and displayed on the window sticker (Monroney label). MSRP includes the base price, factory-installed options, and destination charge. It does not include dealer-added accessories, markups, taxes, or registration fees. MSRP is the starting point for negotiation — most buyers pay below MSRP for non-luxury vehicles.

Selling Price

Also: Negotiated Price, Sale Price

The price agreed upon between buyer and dealer before taxes, registration fees, and dealer add-ons. On CarWhere, selling price is extracted from the deal sheet and does not include manufacturer rebates unless the deal sheet combines them. This is the most important number in any car deal.

Dealer Discount

Also: Discount Off MSRP

The difference between MSRP and the selling price, expressed as a dollar amount or percentage. CarWhere calculates this as (MSRP - Selling Price) / MSRP. Rebates are not included in the discount calculation — they are tracked separately.

Out-the-Door Price (OTD)

Also: OTD, Drive-Off Price, Total Due

The total amount you pay to drive the car home, including selling price, taxes, registration, title, dealer fees, and any add-ons. OTD is the "real" price of the car. Always negotiate based on OTD, not just selling price.

Rebate

Also: Manufacturer Rebate, Cash Back, Incentive

A discount funded by the manufacturer, not the dealer. Rebates reduce the effective price but are separate from the dealer's own discount. Common types include customer cash, loyalty rebates, conquest cash, and military/first responder discounts. On CarWhere, rebates are tracked separately from the selling price.

Lease Cash

Also: Lease Bonus, Lease Subvention

Manufacturer incentive available only on leases. Lease cash reduces the capitalized cost (the amount being financed in the lease), which lowers the monthly payment. Unlike a purchase rebate, lease cash is applied by the leasing company, not given to the buyer.

Documentation Fee (Doc Fee)

Also: Dealer Doc Fee, Processing Fee

A fee charged by the dealer for processing paperwork. Doc fees vary widely — from $85 in California (capped by law) to $700+ in states with no cap. 18 states cap doc fees by law. Doc fees are often negotiable in uncapped states. CarWhere tracks actual doc fees from verified deal sheets.

Dealer Add-Ons

Also: Dealer-Installed Accessories, Aftermarket Add-Ons

Products added by the dealer before or during the sale: paint protection, fabric protection, VIN etching, nitrogen tire fill, window tint, wheel locks, protection packages, and more. Dealer margins on add-ons are typically 50-80%. Most add-ons can be declined or negotiated.

Capitalized Cost (Cap Cost)

Also: Lease Price, Adjusted Cap Cost

The negotiated value of the vehicle in a lease — equivalent to the selling price in a purchase. Gross cap cost is the starting price; adjusted cap cost is after lease cash, trade-in equity, and cap cost reductions are applied. Lower cap cost = lower monthly payment.

Money Factor

Also: Lease Rate, MF

The interest rate on a lease, expressed as a small decimal (e.g., 0.00125). Multiply by 2,400 to convert to an approximate APR (0.00125 × 2,400 = 3.0% APR). Money factors are set by the manufacturer's leasing company and can sometimes be marked up by the dealer.

Residual Value

Also: Residual, Lease-End Value

The projected value of the vehicle at lease end, expressed as a percentage of MSRP (e.g., 58% residual on a $50,000 car = $29,000). Higher residual = lower monthly payment because you're financing less depreciation. Residuals are set by the manufacturer and are not negotiable.

Due at Signing (DAS)

Also: Drive-Off, Amount Due at Signing

The total upfront payment when signing a lease: down payment + first month's payment + acquisition fee + taxes + registration + dealer fees. A "$0 down" lease may still have significant DAS. Always ask for the total DAS number, not just the down payment.

Low / Typical / High Price Band

Also: Price Range, Percentile Range

On CarWhere, price bands are computed from verified transactions. "Low" is the 10th percentile (best deals), "Typical" is the median (50th percentile), and "High" is the 90th percentile. These bands give you realistic targets for negotiation.

Sample Size

The number of verified buyer transactions used to calculate statistics. CarWhere requires a minimum of 4 deals to show aggregate data and 10+ deals for full confidence. Larger samples produce more reliable averages.

Destination Charge

Also: Delivery Fee, Freight Charge

A non-negotiable fee charged by the manufacturer to deliver the vehicle from the factory to the dealer. Destination is included in MSRP on the window sticker. It is the same for all dealers selling the same vehicle. You should not pay destination as a separate line item — it's already in MSRP.

Dealer Markup

Also: Market Adjustment, ADM, Additional Dealer Markup

An amount added above MSRP by the dealer, typically on high-demand or limited-supply vehicles. Dealer markups are not manufacturer-endorsed and are fully negotiable. CarWhere tracks deals sold above MSRP to help buyers identify which vehicles and dealers are marking up.

Acquisition Fee

Also: Bank Fee, Lease Initiation Fee

A one-time fee charged by the leasing company to originate the lease, typically $595-$1,095. The acquisition fee is set by the manufacturer's finance arm and is generally not negotiable, but it can be rolled into the lease (capitalized) to avoid paying it upfront.