1. What is OTD Car 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 MSRP, all fees, taxes, minus any discounts or rebates.

2. How Does the Calculator Work?

The calculator uses the OTD price formula:

Where:

• \( MSRP \) — Manufacturer's Suggested Retail Price
• \( Fees \) — All dealer and documentation fees
• \( Tax \) — Sales tax and other applicable taxes
• \( Discounts \) — Any rebates, incentives or negotiated discounts

Explanation: This equation gives you the complete cost of purchasing a vehicle, including all mandatory charges and minus any savings.

3. Importance of OTD Price

Details: Knowing the OTD price helps you compare offers between dealerships accurately, as some may advertise lower prices but have higher fees. It's the true cost of vehicle ownership at purchase.

4. Using the Calculator

Tips: Enter all values in USD. Get exact numbers from your dealer for fees and taxes. Include all potential discounts you qualify for. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's typically included in "fees"?
A: Common fees include documentation fees, title/registration fees, dealer preparation fees, and any other mandatory charges.

Q2: How is sales tax calculated?
A: Sales tax is usually based on your local tax rate applied to the purchase price (after discounts but before fees).

Q3: What discounts should I include?
A: Include all manufacturer rebates, dealer discounts, loyalty discounts, military discounts, or any other price reductions.

Q4: Why focus on OTD price instead of monthly payments?
A: OTD price gives you the true cost, while monthly payments can be manipulated with loan terms and interest rates.

Q5: Should I negotiate based on OTD price?
A: Yes, negotiating the OTD price prevents dealers from moving numbers between different cost categories.