Car Buying FAQ
Plain-language answers to the 20 most common car buying questions — fees, recalls, VINs, negotiation, EVs, and financing.
Out-the-Door Price & Fees
What is an out-the-door price?
The out-the-door (OTD) price is the total amount you actually pay to drive a vehicle home. It includes the vehicle price, state sales tax, title fee, registration, plate fees, and dealer doc fee. It does not include ongoing costs like insurance or maintenance. Always negotiate based on the OTD price, not the monthly payment.
Calculate your OTD price →What dealer fees are mandatory vs. negotiable?
Mandatory (paid to the government): sales tax, title fee, registration, and plate fees. These are fixed and non-negotiable. Negotiable or refusable: documentation fee (capped in 26 states), dealer add-ons like paint sealant or nitrogen tires, VIN etching, market adjustment markups, and extended warranties. Never pay for dealer-installed add-ons you didn't ask for.
Check your dealer's fees →How much over MSRP is the actual out-the-door price?
Typically 8–15% over MSRP, depending on your state's tax rate and DMV fees. On a $35,000 vehicle in California, you can expect $2,800 in sales tax plus $500–$900 in DMV and doc fees — pushing your OTD to $38,500–$40,000. High-tax states like Tennessee (9.75%) or Arkansas (6.5%) add more.
Can I negotiate the doc fee?
Sometimes. In states with a doc fee cap (California: $85, New York: $175, Florida: $999 cap), the fee is fixed by law at that ceiling — dealers won't go lower, but at least you know the max. In states with no cap, the doc fee is fully negotiable. Dealers rarely lower it on request, but you can insist on a lower OTD total that nets the same result.
Recalls & Vehicle Safety
Can a dealer legally sell a used car with an open recall?
Yes — for used cars. Federal law (TREAD Act) only prohibits selling new vehicles with unrepaired safety recalls. Used cars have no such protection. A dealer can legally sell a pre-owned vehicle with an open NHTSA recall without disclosing or repairing it. Check every used car's VIN before purchase.
Recall Radar — see recalled cars for sale →Are recall repairs free?
Yes, always. Manufacturers are legally required to repair safety recalls at no cost to the owner, regardless of when you bought the vehicle or how many owners it's had. Contact the manufacturer or any franchised dealer for that brand. Recall repairs have no expiration date.
How do I check if a car has open recalls before buying?
Enter the 17-character VIN at OTDCheck or NHTSA's official recall database (nhtsa.gov/recalls). The VIN is on the driver-side dashboard corner (visible through the windshield), the door jamb sticker, or your insurance card. Never finalize a used car purchase without checking recalls first.
Free VIN recall check →VIN & Vehicle History
What does a VIN number tell you?
A VIN (Vehicle Identification Number) is a 17-character code that identifies a specific vehicle. It encodes the country of manufacture, maker, vehicle type, model year, assembly plant, and production sequence. By querying databases tied to the VIN, you can find price history, open recalls, title brands, reported accidents, and days on the dealer's lot.
Decode a VIN free →Is OTDCheck's VIN check free?
Yes. The VIN check at otdcheck.com/vin is completely free with no account required. It shows fair market price, open recalls, price history, days on lot, and dealer behavior score. The VIN decoder at /tools/vin-decoder is also free and uses NHTSA's official vPIC database.
Run a free VIN check →What is a title brand and why does it matter?
A title brand is a permanent government record attached to a vehicle's title when it has been in a major accident, declared a total loss (salvage), flooded, or had its odometer altered. A branded title significantly reduces resale value — typically 20–50% below clean-title market value. Always check the title status before buying used.
Check title status →Negotiation & Deal Quality
What is a fair price to pay for a used car?
A fair price is at or below the average price for comparable vehicles (same make, model, year, trim, and mileage) currently listed by dealers in your region. Use OTDCheck's Deal Analyzer to see your percentile rank against live market data. A 'great deal' is in the bottom 15th percentile of comparable listings.
Check if your deal is fair →What is a dealer 'market adjustment' and should I pay it?
A market adjustment (also called ADM — Additional Dealer Markup) is an amount a dealer adds to MSRP on top of the sticker price for high-demand vehicles. It is pure profit for the dealer, not a manufacturer or government charge. On any vehicle not in acute shortage, you should refuse it and walk away if the dealer won't remove it. Search other dealers — someone will sell at MSRP.
Should I tell the dealer I'm paying cash?
Not until after you've agreed on the vehicle price. Dealers make money on financing (through rate markups). If they know you're paying cash, they may be less willing to negotiate on price because they lose the finance profit. Agree on the OTD price first, then reveal your payment method.
Generate a negotiation script →How many days on lot is too many?
A vehicle sitting more than 45 days is typically a motivated seller. Over 60 days is a strong negotiation lever — dealers pay interest (floor plan financing) on unsold inventory and want it gone. OTDCheck shows days on lot for every VIN in our database. Use this number in your offer.
Check days on lot for any VIN →Trade-Ins & Financing
Should I trade in my car at the dealer or sell it privately?
Selling privately typically gets you 10–20% more than a dealer trade-in. However, trade-ins reduce your taxable amount in most states — in a 9% tax state, a $10,000 trade-in saves $900 in sales tax, partially closing the gap. Evaluate both: get a written dealer offer (Carmax is a reliable benchmark), then decide if the private-sale premium is worth the effort.
Estimate your trade-in value →What is a good interest rate for a car loan in 2026?
In 2026, average new-car loan rates range from 6–8% for buyers with excellent credit (750+). Used car rates are typically 1–3% higher. Credit unions consistently beat dealer financing by 1–2%. Always get pre-approved from your bank or credit union before visiting the dealer — this is your negotiation baseline for the finance office.
Compare current auto loan rates →Electric Vehicles
How does the federal EV tax credit work?
The federal clean vehicle tax credit is up to $7,500 for new EVs and $4,000 for used EVs that meet price, income, and assembly requirements. Starting in 2024, eligible buyers can take the credit as a point-of-sale discount at participating dealers instead of waiting until tax filing. Income limits apply: $150,000 single / $300,000 married for new vehicles.
Find EV rebates in your state →What extra fees do EV buyers pay?
Most states charge an annual EV registration surcharge (ranging from $50 in South Carolina to $200+ in Georgia and Ohio) to offset lost gas tax revenue. Some states also charge it at purchase. EV buyers are otherwise exempt from gas taxes. Use the OTD Calculator's EV mode to see both the surcharge and any state rebate for your state.
Calculate EV out-the-door price →Ready to check a vehicle?
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