1. What is Out The Door Cost?

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

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

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

Explanation: This calculation gives you the true total cost of purchasing a vehicle.

3. Importance of OTD Cost Calculation

Details: Knowing the OTD cost helps you budget accurately and compare offers between different dealerships. It prevents surprises when finalizing your purchase.

4. Using the Calculator

Tips: Enter the base price in dollars, tax amount in dollars, and all fees in dollars. All values must be valid (≥ 0).

5. Frequently Asked Questions (FAQ)

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

Q2: How is sales tax calculated?
A: Sales tax is usually calculated as a percentage of the purchase price, but rates vary by state and locality.

Q3: Can I negotiate the OTD price?
A: Yes, you can negotiate both the base price and some fees (like documentation fees) to lower your OTD cost.

Q4: Should I focus on monthly payment or OTD price?
A: Always negotiate based on OTD price first, then discuss financing terms. Focusing only on monthly payment can obscure the total cost.

Q5: Are there fees I shouldn't pay?
A: Some fees like "market adjustment" fees or unnecessary add-ons can often be negotiated away or reduced.