1. What is OTD Price?

The OTD (Out-The-Door) price is the total amount you'll pay to drive the car off the dealership lot. It includes the vehicle's base price plus all fees and taxes.

2. How Does the Calculator Work?

The calculator uses the simple OTD formula:

Where:

• \( Price \) — The negotiated price of the vehicle
• \( Fees \) — All additional fees (documentation, title, registration, etc.)
• \( Tax \) — Sales tax on the purchase

Explanation: The equation sums all components to give you the true total cost of the vehicle purchase.

3. Importance of OTD Price

Details: Knowing the OTD price helps you compare offers between dealerships and understand the true cost of your purchase, not just the monthly payment.

4. Using the Calculator

Tips: Enter the vehicle price, all additional fees, and estimated taxes. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What fees are typically included?
A: Common fees include documentation fees, title/registration fees, dealer preparation fees, and any additional dealer-installed options.

Q2: How is tax calculated?
A: Tax is usually calculated as a percentage of the purchase price, but rates vary by state and sometimes by county/city.

Q3: Should I negotiate based on OTD price?
A: Yes, negotiating based on OTD price rather than monthly payments gives you a clearer picture of the total cost.

Q4: Are all fees negotiable?
A: While some fees (like government-imposed title fees) are fixed, many dealer fees can be negotiated or waived.

Q5: Does OTD include financing costs?
A: No, OTD typically refers to the cash price. Interest and financing costs would be additional if you're taking a loan.