MSRP stands for Manufacturer's Suggested Retail Price, the price the automaker recommends a dealer charge for a new vehicle with a specific set of equipment. It appears on the window sticker (often called the Monroney label), along with the destination charge and options. MSRP is a starting reference, not a fixed price. Dealers can sell below it, at it, or above it depending on demand, inventory and incentives. On OffLot, the Listing facts section of each new vehicle page shows the MSRP so you can compare it against the listed price.
MSRP is the automaker's suggested retail price, invoice is roughly what the dealer is billed by the manufacturer, and the sale price is what you and the dealer actually agree on. Invoice is not the dealer's true cost, because programs like holdback and factory-to-dealer incentives can lower it further. The sale price can land below, near or above MSRP depending on the model's demand and how long it has been in stock. Always focus on the final out-the-door number, since that is what you actually pay.
Invoice price is the amount the manufacturer bills the dealer for a new vehicle, before any later rebates or holdback paid back to the dealer. Several pricing guides and car research sites publish estimated invoice figures for new models and trims, and some dealers will show you the invoice if you ask. Treat it as a rough reference, not the dealer's real bottom line. For used cars there is no invoice; the dealer's cost depends on what they paid at trade-in or auction plus reconditioning.
The out-the-door price is the total you pay to drive the vehicle away: the agreed sale price plus sales tax, title and registration, the dealer's documentation fee, and any add-ons or other charges, minus any rebates and your trade-in credit. It is the most useful number to compare between dealers because it can't hide fees elsewhere. On OffLot, every vehicle page includes an out-the-door estimate under "What this vehicle really costs," built from the price plus an illustrative 6.25% tax and $685 in fees.
Because the sticker or advertised price leaves out taxes, fees and add-ons that can add thousands to what you actually pay. Two dealers with the same advertised price can end up far apart once doc fees, accessories and market adjustments are included. Asking for an itemized out-the-door price in writing lets you compare offers apples to apples and spot charges you didn't agree to. OffLot's Open lot mode checklist includes asking for the out-the-door price in writing and how long that price is good for.
In most states, yes. Sales tax (sometimes called a motor vehicle excise or use tax) is usually charged on the vehicle's taxable price and collected either by the dealer at signing or by the state when you register the car. A handful of states have no general sales tax, but they may still charge other titling taxes or fees. Rates, what counts as taxable, and whether local taxes apply all vary, so check your state's DMV or revenue department website for the current rules.
Generally, sales tax on a vehicle is based on where you will register it, which is usually where you live, not where the dealership sits. If you buy in another state, the dealer may collect your home state's tax, or you may pay it directly when you register at home. Some states give credit for tax already paid elsewhere. Rules differ, so confirm with your state DMV before buying out of state to avoid paying twice or getting a surprise bill at registration.
In many states, yes. Even when you buy from a private seller, the state typically collects sales or use tax when you title and register the car, often based on the purchase price or a standard valuation, whichever is higher. Some states exempt certain family transfers or use a flat fee instead. Keep a signed bill of sale showing the price. Your state DMV or revenue department lists exactly how private-sale tax is calculated where you live.
In many states, the value of your trade-in is subtracted from the vehicle price before sales tax is calculated, so you only pay tax on the difference. That can be a meaningful savings compared with selling your old car privately. Not every state offers this credit, and some cap it or apply it differently, for example on leases. Check your state DMV or revenue department rules, and make sure the trade credit appears on your itemized buyer's order before you sign.
It depends on the state. In some states a manufacturer rebate reduces the taxable price, while in others you pay tax on the price before the rebate is applied, even though the rebate lowers what you owe. Dealer discounts are usually treated differently from manufacturer rebates for tax purposes. Ask the dealer to show how tax was calculated on the itemized quote, and check your state's revenue department guidance if the numbers don't match what you expected.
Sometimes, but often not directly. Many dealers charge the same doc fee to every customer, and in some states they must charge it uniformly, so they may refuse to drop it. The practical approach is to negotiate the total out-the-door price, which lets the dealer lower the vehicle price to offset the fee. If your state caps doc fees, check the cap on your state attorney general or DMV website to confirm you are not being overcharged.
The destination charge, also called a destination or freight fee, is what the manufacturer charges to ship a new vehicle from the factory or port to the dealership. It is listed on the window sticker and is usually the same for a given model no matter where the dealer is located. Because the automaker sets it, it is generally not negotiable on its own. Be cautious of a second "shipping" or "freight" line added by the dealer on top of it.
Usually not. The destination charge is set by the manufacturer, printed on the window sticker, and billed to the dealer, so dealers rarely remove it as a separate item. What you can do is negotiate the overall price of the vehicle, which effectively absorbs it. If you see an extra dealer-added transport, prep or freight fee in addition to the manufacturer's destination charge, ask what it covers and whether it can be removed.
Title and registration fees are government charges to record you as the vehicle's owner and to register it so it can legally be driven, which includes license plates or tags. They are set by your state and sometimes your county, and can depend on the vehicle's weight, value, age or fuel type. Dealers often collect these and pass them to the state. They are generally not negotiable, but you can check your state DMV's fee calculator to confirm the amount is right.
Government fees typically include sales or use tax, title, registration, license plates, and in some places inspection or tire and emissions fees. Dealer fees are charges the dealership sets, such as the documentation fee, prep or reconditioning fees, and add-ons like etching or nitrogen. Government fees aren't negotiable; dealer fees and add-ons often are, at least as part of the total price. OffLot's Open lot mode prompts you to ask the dealer to separate government fees from dealer fees in writing.
Dealer add-ons are extra products or services a dealership installs or adds to the price, such as VIN etching, paint or fabric protection, nitrogen-filled tires, wheel locks, door edge guards, tinting or pre-installed accessories. Some are useful to some buyers; many are high-margin and optional. They should be clearly itemized, and you can ask for them to be removed or decline them. The FTC advises consumers to watch for add-ons they didn't ask for on the final paperwork (consumer.ftc.gov).
You can always decline optional add-ons you didn't ask for, though if they are already installed on the car the dealer may refuse to remove the charge. In that case you can negotiate the overall price down, ask for a different vehicle without them, or shop elsewhere. Read the buyer's order line by line before signing, since add-ons sometimes appear without being discussed. OffLot's Open lot mode includes asking which add-ons are removable as one of its questions for the dealer.
A market adjustment, sometimes called additional dealer markup (ADM), is an extra amount a dealer adds above MSRP, usually on vehicles in high demand or short supply. It is set by the dealer, not the manufacturer, and is fully negotiable in principle, though dealers with scarce inventory may hold firm. If you see one, you can ask for it to be removed, look for other dealers without one, or wait until supply improves. It should be listed separately on the window addendum or quote.
Advertised prices often exclude taxes, title, registration and the doc fee, and sometimes assume rebates you may not qualify for, such as loyalty, military or financing-dependent incentives. Dealer add-ons or market adjustments may also be added at the store. Read the ad's fine print to see what's included and ask for an itemized out-the-door quote before you visit. If a dealer refuses to honor a clearly advertised price, your state attorney general's consumer protection office is the place to report it.
"Hidden" fees are usually charges that weren't mentioned until the paperwork: inflated doc fees, prep or reconditioning fees, dealer-installed add-ons, market adjustments, extra transport fees, or optional products like service contracts and GAP rolled into the price. The fix is to request a written, itemized out-the-door quote early and compare it with the final contract. On OffLot, each vehicle page shows an out-the-door estimate and the Build your deal flow ends with a final review page so you can see every line before deciding.
Ask in writing, by email or text, for an itemized out-the-door quote on a specific vehicle by stock number or VIN. Request each line separately: vehicle price, any discounts or rebates, add-ons, doc fee, tax, title and registration, and trade-in credit if applicable. Ask how long the quote is valid. A written quote makes comparison easy and gives you a reference if numbers change at signing. If a dealer won't put it in writing, that is useful information too.
Rebates and incentives are discounts offered by the automaker, not the dealer, to boost sales of certain models. They can be cash back, special low-APR financing, lease deals, or targeted offers for groups like recent graduates, military members or current owners of the brand. They change often, usually monthly, and may vary by region. Check the manufacturer's official website for current offers on your ZIP code, and read the fine print, since some can't be combined.
Sometimes, but often you must choose one. Automakers frequently offer either cash back or a special low or 0% APR on a model, not both. To compare, calculate the total cost of each: take the rebate and finance at a rate you can get elsewhere, versus skipping the rebate and taking the promotional rate. The better choice depends on your loan amount, term and outside rate. Check the manufacturer's current offers page and the terms for your ZIP code.
Holdback is an amount, typically a small percentage of MSRP or invoice, that the manufacturer pays back to the dealer after a new vehicle is sold. It helps cover the dealer's costs of carrying inventory and means invoice price isn't the dealer's true cost. Holdback programs vary by brand and aren't usually something buyers can negotiate directly, but knowing it exists explains why some dealers can sell near or slightly below invoice and still make money.
Yes, it happens, especially on slow-selling models, outgoing model years, or when the manufacturer is paying dealer incentives. Because of holdback and factory-to-dealer cash, a dealer's actual cost can be below the invoice figure. That doesn't mean every car can be bought below invoice; popular vehicles in short supply may sell at or above MSRP. Use invoice as one reference point and compare real out-the-door quotes from several dealers.
Days on market is how long a vehicle has been listed for sale. Cars that have sat longer cost the dealer more to keep in inventory, so they sometimes see price reductions, while very fresh listings may have less flexibility. It's a useful fact, not a guarantee of a lower price, since some vehicles sit because of price, color, equipment or condition. On OffLot, the Listing facts section on each vehicle page shows days on market and any price changes.
Not necessarily. A price reduction shows the seller adjusted the price, often because the car has been listed a while, but it doesn't tell you how the new price compares with similar vehicles or the car's condition and history. Compare similar year, trim and mileage listings, check the vehicle history and get an inspection on used cars. OffLot shows price changes as facts in each listing's Listing facts and never labels a listing a great deal or overpriced, so you can judge for yourself.
Paying cash avoids interest and monthly payments, which saves money over time, but it isn't always the best choice for everyone. If a manufacturer offers very low promotional financing, you may come out ahead by financing and keeping cash for emergencies or other goals. Also make sure paying cash won't drain your emergency fund. This is general information, not personal financial advice. On OffLot, the Build your deal flow lets you compare buy, lease and cash side by side.
Not usually. Dealers often earn money on arranged financing, so a cash buyer can actually be slightly less profitable to them, and some advertised prices assume you finance through the dealer. That doesn't mean you'll pay more, but you shouldn't expect a cash discount. A common approach is to agree on the out-the-door price first, then discuss how you'll pay. Read any advertised discount's fine print for a financing requirement.
Many buyers prefer to settle the out-the-door price first and then say how they will pay, so the price discussion stays separate from financing. Some advertised discounts depend on financing with the dealer's lender, so ask whether the price changes based on payment method. There is nothing wrong with being upfront; just make sure the final number is the same either way and get it in writing. Large cash payments may require identity paperwork under federal reporting rules.
Many dealers ask for a deposit to hold a specific vehicle or to place a factory order. Before paying, get in writing how much it is, what it holds, how long, and whether it is refundable and under what conditions. Pay with a traceable method like a credit card, and keep the receipt. In OffLot's preview, reservations and real purchases are not live yet, so no deposit is taken on OffLot today.
It depends on what you agreed to in writing. Some deposits are fully refundable until you sign a contract, others are non-refundable or partly refundable, and rules differ by state. Always ask for a written receipt stating the amount, the vehicle, and the refund terms before paying. If a dealer won't return a deposit they said was refundable, contact your state attorney general's consumer protection office and, if you paid by card, your card issuer.
It varies by state, county and dealer. Sales tax is often the largest piece, followed by title and registration, and then the dealer's doc fee and any add-ons. Some states have no sales tax but other titling charges, and doc fees range widely. The only reliable answer is an itemized quote for your ZIP code. OffLot's out-the-door estimate on each vehicle page uses an illustrative 6.25% tax plus $685 in fees to give a starting picture.
OffLot's out-the-door estimate on each vehicle page takes the listed price and adds an illustrative 6.25% sales tax plus $685 in fees. It's a starting point to compare total cost across vehicles, not a quote. Your real taxes and fees depend on your state, county, the dealer's doc fee, and any trade-in or rebates. OffLot is in preview, so listings and prices are simulated. Always confirm a final itemized out-the-door price with the selling dealer.
Not yet. OffLot is currently in preview, so the listings, prices, VINs, dealers, vehicle histories and lender programs are simulated for illustration. Real purchases, reservations, credit checks and deliveries aren't live. You can still use the tools, like out-the-door and lease estimates, the "What can I afford?" calculator, comparisons and Sophie, OffLot's AI buying guide, to learn how car pricing works and what questions to ask.
The base MSRP for a model usually does not include the destination charge, but the window sticker shows the total MSRP for that specific vehicle including options and the destination charge. Neither includes sales tax, title, registration or the dealer's doc fee, and dealer add-ons are typically listed on a separate addendum sticker. When comparing advertised prices, check whether destination is included, and ask for the full out-the-door price.
An addendum is a second sticker some dealers place next to the official window sticker. It lists dealer-added items such as accessories, protection packages, VIN etching or a market adjustment, with their prices. Unlike the manufacturer's Monroney label, the addendum is created by the dealer, and its items are often optional or negotiable. Ask which items are already installed, which can be removed, and get the final out-the-door price in writing.
Often, but not always. As new model years arrive, dealers and manufacturers may offer larger incentives to clear outgoing inventory, and year-end sales goals can add motivation. The tradeoff is fewer choices of color and trim, and the outgoing model year will be worth slightly less at resale. Check manufacturer incentive pages, watch listing price changes and days on market, and compare out-the-door quotes rather than assuming a calendar date guarantees savings.
Compare the out-the-door price for similar vehicles, matching year, trim, options, mileage and condition, from several sellers in your area. Look at published pricing guides, current manufacturer incentives, and how long similar cars have been listed. For used cars, factor in vehicle history and an independent inspection. OffLot lets you compare vehicles side by side and shows listing facts like days on market, price changes and MSRP, but it never labels a listing a good or bad deal, so you can make your own call.
Usually the advertised price already reflects what the dealer spent reconditioning the car, but some dealers add a separate reconditioning, prep or certification fee on top. Ask whether the listed price includes all dealer charges besides tax, title, registration and the doc fee. If there's an extra reconditioning line, ask what work was done and request records. The FTC-required Buyers Guide on the window will also tell you whether the car is sold as-is or with a warranty.
A dealer prep or PDI (pre-delivery inspection) fee is a charge some dealers add for getting a vehicle ready for sale, such as removing shipping plastic, washing and inspecting it. On new cars, manufacturers typically already compensate dealers for this preparation, so many buyers question a separate prep charge. You can ask to have it removed or negotiate the overall price to offset it. Make sure it's clearly listed on the itemized quote.
A written, signed contract generally locks in the price, but a verbal agreement or an unsigned quote may not. Get the agreed out-the-door price in writing and compare every line of the final contract against it before you sign. Be cautious of "spot delivery" situations where you drive off before financing is final and are later asked to sign new terms. The CFPB (consumerfinance.gov) and FTC have consumer guidance on auto financing if something changes unexpectedly.
It depends on the dealer, and many quotes are short, sometimes a few days or until the vehicle sells. Incentives often change at the start of a month, which can affect new car quotes. Ask directly how long the quote is valid and get the expiration in writing alongside the itemized numbers. OffLot's Open lot mode includes "how long is this price good for?" as one of its questions to ask at the dealership.
Negotiate the price, specifically the out-the-door price. Focusing on monthly payment makes it easy to lengthen the loan term or add products while the payment looks affordable, which can raise your total cost. Agree on the total price first, then compare financing terms separately. OffLot's "What can I afford?" tool works back from a monthly budget to a price range, so you can set your target total before talking payments.
It means the advertised price excludes sales tax, title fees and registration or license plate fees, which you will pay on top. Often "TT&L" ads also exclude the dealer's documentation fee, which some dealers list separately, so read the fine print. To compare dealers fairly, ask each for a full out-the-door quote including every tax and fee for your ZIP code.
No. Most buyers either finance through a lender or the dealer, lease, or pay part in cash as a down payment and borrow the rest. If you pay cash, the dealer will typically require payment by cashier's check, wire or another verified method before you take delivery. Ask the dealer what payment methods they accept and whether there are any limits on card payments. OffLot's Build your deal flow lets you explore buy, lease and cash options with illustrative numbers.
Not always; what matters is the final out-the-door price and total cost of financing. A rebate reduces what you owe, but in some states it doesn't reduce sales tax, and some rebates require financing through the automaker's lender at a rate that may not be your best option. Compare offers by their full out-the-door totals and, if financing, the total paid over the loan. Ask the dealer to show the math in writing.
No, not for most purchases today. The federal clean vehicle tax credits for new, used and leased EVs ended for vehicles acquired after September 30, 2025. Some states, utilities and manufacturers may still offer their own rebates or incentives, which change often. Check your state energy office, your electric utility and the automaker's offers page for current programs. OffLot's research center includes EV buying guides to help you compare range and cost.
Car purchases combine government charges, which fund titling, registration and taxes, with dealer charges for paperwork and any extra products. Each state sets its own taxes and fees, and dealers set their own doc fees and add-ons, so the list can feel long. The simplest way to stay in control is to compare the single out-the-door number and ask for each fee to be explained. On OffLot, each vehicle page shows an estimated total under "What this vehicle really costs."