What is out-the-door price? How to compare used car offers properly
The price on a listing is rarely the amount you will pay. Out-the-door price (often shortened to OTD) is the real total: everything you hand over to drive the car home. Comparing offers on that number, and only that number, is the simplest way to avoid surprises.
What is included
| Part | What it is |
|---|---|
| Price of the car | The agreed selling price, after any negotiation |
| Sales or vehicle tax | Set by your state and sometimes your county or city |
| Title fee | What the state charges to put the title in your name |
| Registration and plate fees | What the state charges to register the car and issue plates |
| Dealer documentation fee | A fee the dealer charges for preparing paperwork. Amounts vary, and some states limit them |
| Other fees and add-ons | Anything extra, such as an inspection, accessories or a service contract |
Your trade-in, if you have one, and your down payment reduce what you owe, but they are separate from the price of the car.
Why the listing price is not enough
Two cars listed at the same price can end up thousands of dollars apart once taxes and fees are added, because fees differ by dealer and by state. Only the out-the-door figure tells you which is the better deal.
How to get the number
- Ask the seller for an itemized out-the-door quote in writing, by email or text.
- Check each line. Ask what every fee is for and whether it is required.
- Compare the quote with the state's published tax, title and registration amounts to see which parts are not set by the state.
- Ask for the same quote from other sellers for similar cars.
Watch for add-ons you did not ask for
Extras such as etching, fabric protection or a paid-for warranty can appear on a quote as if they were required. Ask whether each is optional. If it is, you can decline it, and it should come off the price.
Negotiate the total, not the payment
A low monthly payment can hide a long loan and a high price. Agree on the out-the-door price first, then talk about financing. Negotiating the payment lets costs hide in the term and the rate. See how to negotiate a used car price.
Private sellers
When you buy from a private owner there is no dealer documentation fee, but you still pay tax, title and registration to the state when you transfer the car into your name. Ask your state's motor vehicle agency what the total will be.
Common questions
What does OTD mean in car buying?
Out-the-door: the full amount you pay to take the car home, including tax, title, registration and dealer fees.
Is the documentation fee negotiable?
It depends on the dealer and your state. Some dealers will not change it but will lower the car's price to compensate. Whatever it is, include it when you compare offers.
Do I pay sales tax on a used car?
Usually yes, based on your state's rules. Ask your state's motor vehicle agency, or the seller, how it is calculated.
Keep reading
General information, not legal, tax or financial advice. Rules and prices change and differ by state; check with the right professional or your state agency before you act.