# LetYouKnow — Full Content Library > US marketplace for brand-new cars where buyers name their own price, lock in a total price with dealer/platform fees included, and pay nothing for bids that don't result in a match. This file contains the full text of the LetYouKnow content pages (llmstxt.org companion format). Curated page index: https://letyouknow.com/llms.txt --- # New Car Price Guide: What a New Car Really Costs in 2026 Canonical: https://letyouknow.com/guides/ The sticker price is rarely what you pay. The real cost of a new car is the out-the-door (OTD) price, which includes the car, destination charge, dealer fees and applicable government fees before financing. Some charges are outside the dealer's control, including sales tax, title, registration and licensing, along with the manufacturer's destination charge. Market adjustments and charges for items such as paint protection, nitrogen tires, documentation fees and other dealer extras are added by the dealership and may be negotiable. Get the full OTD price in writing and itemized before discussing a monthly payment. These guides break down each part of a new car price. ## When Is the Best Time to Buy a New Car? There is no best time of year to buy a new car. You may get a better price on the new car you want at the end of the month or quarter, when the next model year arrives or during December holiday sales because dealers are usually more motivated to move cars at those times. What matters more is how badly the dealer wants to sell the exact car you want, which depends on that car's supply and demand. Incentives, financing offers and your readiness to buy also matter. If a model is scarce, timing may make little difference. If it is overstocked, a dealer may be motivated to sell it on almost any day, not just the 31st. The better approach is to find out what dealers are actually willing to accept. Get written out-the-door quotes from several dealers for the exact new car you want. Then take your lowest quote, subtract the taxes and government fees listed on it and Bid below that amount on LetYouKnow. Your Bid on LetYouKnow already includes dealer and platform fees, so you are comparing apples to apples. Full guide: https://letyouknow.com/guides/best-time-to-buy-a-new-car/ ## Buying a New Car Out of State: What Actually Changes? Buying a brand new car in another state is legal and common. The main differences may include more paperwork along with different tax, registration and lemon law rules. In most cases, you will title and register the car in the state where you reside, so that state's sales or use tax rules generally apply. Depending on the dealer and your state, the dealer may collect the applicable tax and handle the title and registration paperwork. Otherwise, you may need to pay the tax and submit the paperwork when registering the car. You may receive credit for tax paid to another state, but the rules vary. The factory warranty on a brand new car generally stays with the eligible new car rather than the selling dealership. You can usually have warranty service completed by a local dealer for that make, subject to the written warranty terms. Buying across state lines does not eliminate the risk of a quoted price changing. It can make the problem worse when you are hours away or have already paid for a flight. Before committing, get a complete written out the door price. You can also use that price with LetYouKnow. Take your lowest price quote, subtract the taxes and government fees listed on it and Bid below that amount. Your Bid on LetYouKnow already includes dealer and platform fees, so you are comparing apples to apples. Full guide: https://letyouknow.com/guides/buying-a-car-out-of-state/ ## How Much Tariffs Are Affecting New Car Prices and Should You Buy Now or Wait? Auto tariffs can raise new car prices, but the effect varies by car. Tariffs apply when cars or parts are imported, so the tariff cost depends on where a model is assembled, where its components were made and whether it qualifies for USMCA treatment. A car with more imported content may face a greater tariff cost than one with more domestic content. A car already imported and on a dealer's lot was subject to the duties in effect when it entered the country, so a later tariff change does not add another customs charge to that car. Whether to buy now or wait depends on the numbers, not panic. Compare any likely price increase with the financing rate, the model you need and how soon you need it. Before committing, get a complete written out the door price because a rising market can make it easier for extra costs to be added at the sales desk. Full guide: https://letyouknow.com/guides/car-tariffs-price-impact/ ## What Dealer Fees Are Legit and What Are Junk? Two types of charges are largely outside the dealer's control. These are government fees such as tax, title and registration and the manufacturer's destination charge. Documentation fees and market adjustments are dealer-set, although state law may limit documentation fees. Add-ons such as paint protection, nitrogen-filled tires and VIN etching are often optional. A charge is a red flag when it is hidden, not disclosed before you commit, falsely presented as required, duplicated or added for a product you did not agree to. A fee is not automatically a junk fee simply because the dealer added it. Full guide: https://letyouknow.com/guides/dealer-fees-legit-vs-junk/ ## Is the Destination Fee Legitimate and Why Isn't It in the Car's Price? Yes. The destination or freight charge is a legitimate fee set by the manufacturer to transport a brand new car from the factory to the dealer. It appears on the federally required Monroney window sticker as a separate line from the base MSRP but is included in the total factory sticker price. The destination charge is set by the manufacturer rather than the dealer. You generally cannot remove the charge itself, but you can still negotiate the car's overall price. The destination charge on the purchase paperwork should match the amount on the window sticker. A dealer may add a separate markup above MSRP, but it should not increase or duplicate the manufacturer's destination charge. Full guide: https://letyouknow.com/guides/destination-freight-fee/ ## How Far Below MSRP Can You Negotiate a New Car? There is no fixed amount. How far below MSRP you can negotiate depends mainly on supply and demand for the car, current incentives, how long it has been available and how motivated the dealer is to sell it. The difference can range from thousands off a slow-selling model to no discount or even a markup on a car in short supply. For context, the average new car transaction price in May 2026 was $49,220 compared with an average MSRP of $51,595. Incentives averaged 7.1% of the transaction price. These are industrywide averages based on the mix of cars sold and do not represent the discount available on any one car. MSRP is a reference price, not a floor or ceiling. Larger discounts are generally available on cars with higher inventory. Compare current, itemized written out-the-door offers from several dealers and confirm that the final contract matches the offer before signing. Full guide: https://letyouknow.com/guides/how-far-below-msrp/ ## How Much Car Can I Afford on My Income? Start with your monthly budget, not the sticker price. One common guideline is to keep the car payment under about 10% of your monthly take-home pay and total car costs, including insurance, fuel and maintenance, within 15% to 20%. Another is the 20/4/10 rule, which calls for at least 20% down, a loan of no more than four years and total transportation costs below 10% of gross monthly income. These are guidelines, not rules that fit every budget. Their purpose is to keep a car payment and related expenses from taking more of your income than you can afford. Set your maximum out-the-door price before shopping. Then calculate the payment using a realistic APR and loan term and make sure the total car costs fit your monthly budget. Your budget should determine the car you buy, not the monthly payment presented during the sales process. Full guide: https://letyouknow.com/guides/how-much-car-can-i-afford/ ## How Do You Buy a New Car, Step by Step? Buying a new car is easier when you control the process instead of following the showroom pace. Line up your own financing first, choose the exact car and get a full, itemized out-the-door price in writing from several dealers. Negotiate using the total out-the-door price rather than the monthly payment. Handle the trade-in and financing as separate decisions, compare loans by APR and term and read every line before signing. Following this order allows you to handle much of the purchase by email, leaving only a shorter dealership visit instead of a full day at the sales desk. Full guide: https://letyouknow.com/guides/how-to-buy-a-new-car-step-by-step/ ## Is a Car Broker Worth It? A car broker may be worth it when saving time, stress and dealership negotiation matters more to you than the fee. Brokers may charge a flat fee of about $200 to $1,000, take a percentage of the savings or receive compensation from the dealer. They can locate the car, negotiate and help manage the deal, but savings are not guaranteed. If you pay the broker directly, the fee is added to your cost. If the dealer pays the broker, ask how the broker is compensated because the broker may have an incentive to recommend the dealer paying them rather than the dealer offering you the best deal. Before hiring one, check any licensing requirements in your state and compare the total fee with what the saved time and reduced back-and-forth are worth to you. Full guide: https://letyouknow.com/guides/is-a-car-broker-worth-it/ ## Dealer Market Adjustment: Is a Markup Above MSRP Legit? A market adjustment, also called an additional dealer markup or ADM, is a dealer-set amount added above MSRP. A dealership generally sets its own selling price, which can be above or below MSRP. A price above MSRP may include an additional dealer markup, dealer-installed products or both. Any required markup should be included in the advertised price and disclosed before you commit to the purchase. An additional dealer markup is not a manufacturer or government charge. It may be negotiable and you can decline the deal. Because each dealer sets its own price, another dealer may charge less or no markup at all. Get the full out-the-door price in writing so you know exactly what is included. Factory-installed options appear on the Monroney window sticker and are included in the total factory sticker price, separate from the base MSRP. A dealer addendum is separate from the Monroney window sticker and may list dealer-installed products, added charges or an additional dealer markup. Full guide: https://letyouknow.com/guides/market-adjustment-markup/ ## How Do You Negotiate a New Car Price? Negotiate the out-the-door price, which includes all taxes and fees, rather than focusing only on the monthly payment. A low monthly payment can make a higher price seem affordable when the loan is stretched over more years. Get written out-the-door quotes from several dealers for the exact same car and compare them instead of haggling face-to-face at one dealership. There is no fixed amount you should expect to get off the price. The available discount depends on supply and demand, current incentives and how motivated each dealer is to sell that specific car. The goal is to find the lowest complete price available, not follow a negotiation script. Full guide: https://letyouknow.com/guides/negotiate-new-car-price/ ## Why Is It So Hard to Just Get the Out-the-Door Price? The out-the-door (OTD) price is the total price of the car before financing, including the selling price, dealer charges and applicable government fees. It can be difficult to get because some dealers begin with an advertised price or monthly payment and discuss fees, add-ons, trade-in and financing later. Ask for a full, itemized OTD price in writing before discussing your trade-in or monthly payment. Federal law does not provide a three-day right to cancel a car purchase made at a dealership, so be certain about the complete price and that this is the new car you truly want before signing. With LetYouKnow, take the lowest price you can find then bid even lower. Your Bid includes all dealer and platform fees. Applicable government fees are added separately to reach the OTD price. Full guide: https://letyouknow.com/guides/out-the-door-price/ ## Can a Dealer Change the Price After You Agree? A price quoted in person, by text or by email is usually not final until you sign the contract. The dealer may still change the price or add fees and add-ons. A written quote may be enforceable depending on its terms and state law. Once you and the dealer sign the final contract and any financing conditions are satisfied, the agreed price is binding and the dealer cannot raise it later. Before signing, check whether the sale still depends on final financing approval. Federal law does not provide a three-day right to cancel a car purchase made at a dealership, so get the full, itemized out-the-door price in writing and carefully review the contract before signing. With LetYouKnow, you bid your own price that includes all dealer and platform fees. If your Bid is accepted, it becomes your locked-in price. Applicable government fees are added separately to determine the out-the-door price. If your Bid is not accepted, there is no charge and you can adjust your Bid and/or change your new car options and Bid again. Full guide: https://letyouknow.com/guides/price-locked-after-agreement/ ## A Dealer Added Mandatory Fees After We Agreed on a Price. Can I Walk Away? If the dealer adds fees or add-ons that were not part of the agreed price before you sign the purchase contract, you can refuse the higher price and walk away. If you paid a deposit, whether it is refundable depends on the written deposit terms and state law. If you have already signed, review the contract carefully. The sale may be final or may still depend on financing approval or another condition stated in the contract. Tell the dealer to remove any add-ons you did not authorize and do not sign a new agreement unless you accept the revised terms. With LetYouKnow, you bid your own price that includes all dealer and platform fees. If your Bid is accepted, it becomes your locked-in price. Applicable government fees are added separately to determine the out-the-door price. If your Bid is not accepted, there is no charge and you can adjust your Bid and/or change your new car options and Bid again. Full guide: https://letyouknow.com/guides/your-rights-against-forced-dealer-fees/ --- # When Is the Best Time to Buy a New Car? Canonical: https://letyouknow.com/guides/best-time-to-buy-a-new-car/ ## When is the best time to buy a new car? The calendar matters far less than buyers are often told. The classic timing advice exists for a reason: the last days of the month, the end of a calendar quarter, the end of the model year and the December holiday stretch can sometimes help. But none of those dates lowers a price on its own. They matter only when they line up with something more important: a dealer who is motivated to move a specific car. The date is just a signal of that motivation, not the reason the price changes. So the better question is not what is the magic date. It is how motivated is the dealer to sell the exact car I want. That motivation depends on the supply and demand for your specific make, model and trim. On an overstocked, slow-selling car, the dealer may be motivated most days of the month, not only on the 31st. On a scarce, in-demand car, no calendar trick will move the number much. Timing helps when there is room to move. It does very little when there is not. The date is also only part of the picture. Manufacturer incentives, financing offers and your own readiness to buy can affect the final cost more than the calendar does. In May 2026, incentives averaged about 7.1% of the average transaction price, but ran much higher in some segments, including around 14% on electric vehicles. Those are segment averages, so the actual offer depends on the model, region, program, your eligibility and the specific vehicle. The specific vehicle matters more than the month. ## What is the best month to buy a new car? There is no single magic month, but two stretches have historically favored buyers because they pair a motivated dealer with a car they want to clear. The first is late in the calendar year, roughly October through December. Dealers are clearing current-year inventory to make room for incoming models, December adds year-end volume targets and manufacturers often run holiday incentives. The second is the end of the model year for your specific make. As the new model-year version lands on the lot, the outgoing one quietly becomes the car the dealer most wants gone. The caveat: a good month on a scarce, high-demand model can still mean very little off the price. The month tells you something about the odds. It is a hint, not a guarantee. That is why confirming your real number in writing beats betting on the calendar. ## Is the end of the month or quarter the best time to buy a car? End of month and end of quarter genuinely can help, for one concrete reason: dealerships and salespeople are measured against volume targets and manufacturer bonuses that close on those dates. A sale that pushes a store over a threshold can be worth a discount to them that the same sale would not be worth on the 10th. The end of a quarter (March, June, September and December) stacks the monthly and quarterly targets on top of each other, which is exactly why those dates get the most attention. But the effect only exists when the dealer actually needs that sale to hit a target and has the car to move. It is not an automatic discount and it does nothing on a vehicle that is selling itself. You also have no way of knowing from the outside whether a given store is short of its target this month. Rather than guess, the dependable move is to collect written out-the-door quotes as the period closes and watch which dealer's number actually drops. The ones chasing a target will tell you by their price, not their words. ## When are dealers most motivated to move current-year models? Dealers are most motivated to move a current-year model when the next model year is arriving and that car is taking up space they need, typically fall through the end of the year, depending on the make. New-car model years often ship months before the calendar year ends, so the outgoing version starts aging on the lot while its replacement sits right beside it. A car that is not selling still costs the dealer money to keep, so they would rather move the older one than finance it sitting unsold. That motivation is strongest on models that are overstocked or slow-selling. A current-year car that happens to be in short supply does not create the same pressure, even as its successor lands. The dealer has buyers for it regardless. The signal worth watching is therefore the inventory on your specific car, not the calendar in the abstract. A handful of written quotes will surface that motivation faster than any rule of thumb about months and quarters. ## Should I buy now or wait for the next model year? This is really a trade between price and newness, because the two usually pull in opposite directions. Waiting for the next model year can get you updated design and features, though a new model year sometimes brings major changes and sometimes almost none. Early inventory and discounts can both be limited. Buying the outgoing model year as the new one arrives often flips that equation: the car is a year older on paper, yet it frequently carries stronger discounts and incentives because the dealer wants it off the lot. Whether that is the better value depends on what actually changed and how long you plan to keep it. A simple way to decide: if your current car is fine and what you mainly want is the freshest model, waiting is reasonable. If you want the most car for your money, the outgoing version is often the better value. Either way, the price you actually get is set by that specific car's supply and demand, so confirm it with written out-the-door quotes rather than assuming the date makes the decision for you. ## The right time to buy is when you confirm the right price The pattern is clear: every timing tip is a way of guessing when a dealer will be motivated. That can be useful, but it is indirect. You are reading the calendar and hoping it reflects the inventory and sales targets at the one store that has your car. The thing you actually care about, the lowest real price for the exact car, is still hidden behind that guesswork. The reliable substitute for timing the market is to measure it directly. Pick the exact make, model and trim. Get a written out-the-door price from several dealers and let those quotes compete. That means the full pre-financing total, including the vehicle price, dealer charges, taxes, title, registration and other applicable government fees, not the monthly payment. A motivated dealer reveals itself through a lower total. An unmotivated one reveals itself too. You no longer need to know whether it is the 31st or the start of a model year because the quotes show the offers currently available. ## How LetYouKnow removes the timing guesswork Instead of trying to time the market, build the exact car you want, bid a lower price than the best price you found and get an instant result. If your Bid is accepted, the vehicle is reserved, the dealership is revealed and your Bid becomes the locked-in price. Government fees, such as taxes, title and registration, are added separately and the purchase is completed with the dealer. If your Bid is not accepted, there is no charge and you can adjust and Bid again. Instead of guessing the dealer's motivation from the calendar, you see directly whether your Bid produces a match. And the price you bid already includes dealer and platform fees: only government fees (tax, title and registration) are added separately, so it is easier to compare the itemized Bid amount against the final contract before signing. To summarize, once you have the lowest out-the-door quote, remove government fees such as taxes, title and registration, then bid below that amount on LetYouKnow. Since LetYouKnow prices already include dealer and platform fees, you are making an apples-to-apples comparison. You set your own price and find out any day, without waiting for a month-end or year-end window, whether eligible participating dealers will match it. By Boris Zhukov, CEO of LetYouKnow, Inc. and economist with a PhD from NC State. ## Sources and notes - Dealer volume targets and end-of-period. Dealerships and salespeople work to monthly, quarterly and yearly sales quotas and some earn bonuses for surpassing goals; this is the mechanism behind the end-of-month, end-of-quarter and year-end timing advice, though a dealer may already have met a quota, so it is not automatic (NerdWallet). - Model-year inventory cycle. Manufacturers typically release new model-year vehicles in the fall; as new models arrive, dealers discount the outgoing model-year cars to clear them, so October through December is typically one of the best times to buy (NerdWallet). - Incentives vary by segment. In May 2026, new-vehicle incentives averaged about 7.1% of transaction price but ran far higher on some segments, around 14% on EVs, so the specific vehicle matters more than the calendar (Cox Automotive / Kelley Blue Book, 2026). - Out-the-door pricing as the comparison standard. The full pre-financing total a buyer pays, including vehicle price, dealer charges, taxes, title, registration and other applicable government fees, is the figure that determines whether timing produced a real discount. ## Frequently asked questions ### When is the best time to buy a new car? The best time is when the dealer is motivated to move the specific car you want. That often lines up with the last days of the month, the end of a calendar quarter, the end of the model year or the December holiday stretch, because dealers may be working toward sales goals or trying to move slow-selling inventory. The date itself does not lower the price. If a model is scarce or in demand, the end of the month may not change much. If a model is overstocked, the dealer may be motivated almost any day. The better move is to get written out-the-door quotes from several dealers on the exact car and let those quotes compete. ### What is the best month to buy a new car? There is no single best month, but late in the year often gives buyers better odds. October through December can be a good window because dealers may be clearing current-year inventory, making room for incoming models and trying to reach year-end sales goals. The end of the model year for the specific car you want can work the same way. That said, the month is only a hint. A scarce or high-demand model may not drop much, even during a good buying period. The safer move is to confirm the real number in writing with out-the-door quotes from several dealers. ### Is the end of the month or quarter the best time to buy a car? The end of the month and end of the quarter can help because dealerships often work toward sales goals and bonus targets tied to those dates. If one more sale helps a dealership reach a target, it may be more willing to lower the price. Quarter ends (March, June, September and December) can get extra attention because monthly and quarterly goals may overlap. But this only matters if the dealer actually needs that sale and has the right car to move. It is not an automatic discount. Rather than guessing whether a dealer is chasing a target, get written out-the-door quotes near the end of the month or quarter and compare the numbers. ### When are dealers most motivated to move current-year models? Dealers are usually most motivated to move a current-year model when the next model year is arriving. This often happens in the fall through the end of the year, depending on the make. If that current-year model is overstocked or slow-selling, the dealer may have more reason to move it. That pressure is much weaker when the current-year model is still in short supply. The signal to watch is inventory for the specific car you want, not the calendar by itself. A few written out-the-door quotes will show dealer motivation faster than any rule about months or model years. ### Should I buy now or wait for the next model year? It depends on whether you care more about a lower price or having the newest version. Waiting for the next model year can make sense if you want updated design or new features, but a new model year does not always mean major changes and early inventory can be limited. Buying the outgoing model year as the new one arrives can be the better value, because it may come with stronger discounts or incentives. Either way, confirm the price with written out-the-door quotes instead of assuming the model year decides the deal. --- # Buying a New Car Out of State: What Actually Changes? Canonical: https://letyouknow.com/guides/buying-a-car-out-of-state/ ## Is it legal to buy a new car in another state? Yes, and it is far more ordinary than it sounds. Generally, nothing limits you to dealers in your own state; buyers routinely cross state lines to reach a specific trim, a region that happens to be better stocked or simply a lower quote. What changes when you do is mostly administrative, though some state rules, including registration eligibility, tax and lemon-law coverage, can differ. The selling dealer handles the sale itself, but the car is titled and registered in the state where you live, under your home state's rules, not the seller's. In practice, the dealer can usually issue a temporary registration so you can legally drive the car home. If you ship it, the requirements differ, so ask the carrier and your DMV. Before you put down a deposit, confirm the exact car can actually be titled and registered in your home state, since some states may require emissions certification or inspection. You may be finalizing the last of the paperwork from a distance, which raises the stakes on one thing in particular: the price you agreed to has to be complete and in writing before you commit, because correcting a surprise is much harder once the seller is in another state. ## Do you get taxed twice on an out-of-state car purchase? Usually not. You generally pay sales or use tax once, in the state where you register the car. That is your home state, not the state where you bought it, and the rate you owe is your home state's rate. Buying in a state with a lower rate usually does not lower what you owe. If the selling state collects its own sales tax up front, for example to issue a temporary registration so you can drive the car home, you usually do not pay the full amount again when you get home. The tax you already paid is generally credited toward your home-state obligation, though that credit can be partial or conditional and you must document it. Some dealers collect and remit your home-state tax for you; others leave it for you to pay when you title the car at your local DMV. Ask in writing which applies, and because the exact mechanics differ by state, confirm your case with your home-state DMV before you assume. ## Who services the warranty after an out-of-state purchase? For the factory new-car warranty, any authorized dealer of the brand near you can perform the covered work. A manufacturer's warranty stays with the eligible vehicle, not the store that sold it, so you do not have to use the selling dealer to keep it in effect. Buy a Honda three states away and an authorized Honda dealer near home performs the covered warranty work, subject to the written warranty terms. What deserves a careful read is what you are actually buying. A factory warranty is serviced through the brand's dealer network nationwide. An in-house or dealer-only service contract may be honored only at the selling dealer, which becomes a genuine problem when that dealer is hundreds of miles away. Before you sign, confirm in writing that the coverage is the manufacturer's warranty or a recognized nationwide plan, not a store-specific add-on tied to the seller's own service department. ## Does going out of state actually save you money? Sometimes, but the savings have to survive the extra costs. A lower out-of-state quote is only real savings after you net out travel or shipping, any temporary-registration fees, the time and steps to retitle at home and the home-state sales tax you owe regardless of where you buy. Some states may add emissions, inspection or VIN-verification costs. The bigger exposure is that travel and shipping commitments can make walking away more costly. If the dealer adds fees or changes numbers at signing, you have less leverage once you have flown in or already arranged transport. Which is why worth it comes down almost entirely to one thing: whether you locked a complete, dealer-fee-inclusive written price, then a final out-the-door estimate that adds government tax, title and registration, before you committed to the trip. ## Why distance makes the out-the-door price the whole ballgame Step back and the through-line is clear. Much of the real out-of-state risk is not about your right to buy. You can generally buy anywhere, your tax generally follows you home and your factory warranty generally follows the car, subject to its terms. The risk is that you are negotiating, or finalizing, at a distance, and distance reduces your easiest leverage at the dealership: the option to walk away. The same discipline that protects every car buyer matters even more here. Build the exact car, get the full price in writing and make sure every dealer fee and add-on is itemized before you arrange travel. Ask for the out-the-door total, including estimated government fees such as tax, title and registration. Do not rely on a monthly payment: a longer loan term can make the payment look manageable while hiding a higher total cost. ## How LetYouKnow takes distance out of the equation Instead of traveling to discover a number, you set your own price as a single Bid on the exact car you build and the platform returns an instant result. If the Bid is accepted, the vehicle is reserved, the dealership is revealed and the Bid becomes the locked-in price. If the Bid is not accepted, there is no charge and you can adjust and Bid again. The Bid includes all dealer and platform fees; only government fees, such as tax, title and registration, are added separately. If the Ship to Me option is available at checkout, the shipping cost is included in the Bid too, with no separate shipping fee, so even a long-distance car arrives without the at-signing surprises that distance normally invites. To put it to work: take your lowest out-the-door quote, subtract the government fees, and bid below that on LetYouKnow. Since the Bid already includes dealer and platform fees, you are comparing apples to apples. By Boris Zhukov, CEO of LetYouKnow, Inc. and economist with a PhD from NC State. ## Sources and notes - Out-of-state sales/use tax. You owe sales or use tax in your home state (where you register the car), not the seller's; your home state usually credits qualifying tax paid elsewhere so you do not pay twice, but that credit can be partial or conditional. Rules vary by state, so confirm with your home-state DMV or revenue agency (NerdWallet; Kelley Blue Book). - Factory warranty service. A factory warranty stays with the vehicle and you do not have to use the selling dealer for routine maintenance or repairs to keep it in effect. A third-party service contract is a separate product whose repair network varies by contract (FTC). - Titling and temporary registration. An out-of-state dealer typically provides a temporary registration tag to drive the car home and handles the home-state registration details (NerdWallet). - FTC 2015 Audit of BBB Auto Line: state lemon laws contain important provisions that do not appear in the federal law, including specific criteria for the number of repair attempts and the time a vehicle can be out of service. - LetYouKnow platform facts: the buyer bids a lower price than the best price they found and gets an instant result. If the Bid is accepted, the vehicle is reserved, the dealership is revealed and the Bid becomes the locked-in price. The Bid includes all dealer and platform fees; only government fees such as tax, title and registration are added separately. When Ship to Me is available and selected, shipping is included in the Bid. ## Frequently asked questions ### Can you buy a new car in a state you do not live in? Yes. There is no law that ties you to dealers in your own state, and buying a brand new car across state lines is common. People do it to reach a specific trim, a better-stocked region or a lower quote. What changes is mostly administrative, though some state rules, including registration eligibility, tax and lemon-law coverage, can differ. The selling dealer handles the sale, but you title and register the car in the state where you live, under your home state's rules. Many dealers can issue a temporary registration so you can drive the car home and typically handle the home-state registration details for you. Before putting down a deposit, confirm the exact car can be titled and registered in your home state, since some states may require emissions certification or inspection. ### If you buy a car out of state, do you pay sales tax twice? Usually not. You generally pay sales or use tax once, in the state where you register the car, which is your home state, not the seller's. The rate that applies is your home state's rate, so buying in a state with a lower rate usually does not lower what you owe. If the selling state collects tax up front to issue a temporary registration, you usually do not pay the full amount again at home; the tax already paid is generally credited toward your home-state obligation, though that credit can be partial or conditional and you must keep documentation. Some dealers collect and remit your home-state tax; others leave it for you to pay when you title the car. Ask in writing which applies. ### Does the factory warranty still apply if I buy a new car out of state? Yes, for the factory new-car warranty. A manufacturer's warranty stays with the eligible vehicle, not the store that sold it, so an authorized dealer for that brand near home can perform the covered warranty work even though you bought elsewhere, subject to the written warranty terms. The thing to watch is what you are actually buying. A factory warranty is serviced through the brand's dealer network; an in-house or dealer-only service contract may be honored only at the selling dealer, which is a real problem when that dealer is far away. Confirm the coverage is the manufacturer's warranty or a recognized nationwide plan, not a store-specific add-on. ### Is it worth buying a car out of state to save money? It can be, but the savings have to hold after the extra costs and risks. A lower out-of-state quote is not real savings until you account for travel or shipping, temporary registration, time spent handling paperwork and the sales or use tax you will owe in the state where you register the car. The bigger risk is distance. If the dealer adds fees or changes the numbers at signing, it is harder to walk away when you have flown in or arranged transport. Before you commit to the trip, get a complete written out-the-door price that itemizes every dealer fee and add-on, with government fees such as tax, title and registration listed separately. ### How do you buy a new car out of state without getting surprised at signing? Treat distance as the reason to be stricter about the numbers. Before you travel or arrange shipping, confirm the exact car, including make, model, trim and configuration. Get the full price in writing with every dealer fee and add-on itemized, and ask for an out-the-door estimate that includes government fees such as tax, title and registration. Also confirm how the dealer will handle temporary registration, transport or delivery, and how sales or use tax will be handled in the state where you register the car. For warranty coverage, confirm the car has the factory manufacturer's warranty, not only a seller-specific service contract. The farther away the dealer is, the more important it is to have the deal documented before you commit. --- # How Much Are Tariffs Raising New Car Prices, and Should You Buy Now or Wait? Canonical: https://letyouknow.com/guides/car-tariffs-price-impact/ ## How much are tariffs really raising new car prices? There is no one number, and any single percentage you read is an average hiding a lot of variation. A tariff is a tax charged when a vehicle or the parts inside it are imported. So the cost it adds depends on where your specific car was assembled and where its components came from, not on a flat figure stamped on every new vehicle. An import-heavy model can carry a meaningfully larger added cost than one built domestically from mostly domestic parts. The current policy makes that origin dependence concrete. The baseline is a 25% Section 232 tariff on covered imported vehicles (effective April 3, 2025) and on imported parts, on top of the existing base duty. But 25% is a starting point, not the figure on every sticker. For a vehicle that qualifies under the USMCA, an importer can have the duty applied only to its approved non-U.S. content. Negotiated deals cap some partners lower: the EU, Japan and South Korea at a combined 15% total and most UK auto imports at a 10% total rate. So how much, in dollars? Cox Automotive (via Kelley Blue Book, March 2026) estimated tariff-related year-over-year price pressure of about $5,000 to $8,900 for the average imported vehicle and $1,600 to $2,000 for the average U.S.-assembled one. Across the market, average list prices rose 10.4% while buyers actually paid about 5.9% more, with dealers absorbing much of the gap. Useful as those averages are for sensing direction, an average is not your price. The only figure that decides what you actually pay is the out-the-door total for the exact car you are buying. ## Would a car built in early 2025 be taxed differently than a newer one? In the way that affects your wallet, sometimes, but the date that matters is when the car was entered for consumption at customs, not when it was built. Because the duty rate is fixed at customs entry (19 U.S.C. 1315), a car that already cleared customs under an earlier set of rules was charged at that rate. A unit sitting on a dealer's lot today is generally not re-tariffed if duties rise next month. That has a practical consequence worth using. In a period of rising duties, in-stock inventory can sometimes be priced more favorably than vehicles not yet imported or still on order, because the in-stock car's duty was set at an earlier entry date. One caution, so this is not mistaken for a guarantee: an earlier entry does not automatically make a car cheaper. A dealer can still mark up scarce inventory. Both the import duty and the dealer's markup go into the number you pay, which is why the out-the-door figure, not the build date, is the thing to pin down. ## Should you buy now to beat tariffs, or wait? Turn this into arithmetic instead of anxiety. Buying now makes sense when the model you genuinely need is in stock, you have confirmed a real out-the-door price in writing and the financing terms work. You secure a known price today instead of betting on what import duties do next. Waiting makes sense when your specific model's pricing or the duties behind it are expected to ease, when you are flexible on trim or brand, or when a better financing rate is plausibly on the way. Notice what is on each list: facts you can confirm. What is not on either list is a forecast of where tariffs go, because nobody can hand you that reliably. There is also a risk to watch in both choices. In a rising-price market, watch for costs that can appear late, such as an addendum, a market adjustment or a surcharge that was not in the first quote. Ask for the complete itemized out-the-door number before you commit. ## What about a tariff surcharge line on the worksheet? Expect to see one in a tariff-heavy market and treat it like any other dealer-added charge. A dealer may build cost into the price they ask for a car. What deserves scrutiny is a separate, after-the-fact line, such as tariff fee or import surcharge, that appears on the worksheet and was never part of your agreed number. It can raise disclosure concerns under the FTC Act and state consumer-protection law if it is mandatory, omitted from the advertised price, inaccurately described or applied after you agreed to a different number. The word tariff does not give a fee special standing. The test is whether it was disclosed up front, whether you agreed to it and whether it is itemized in writing before you sign. ## Why the buying process, not the tariff, is the part you can fix There is the cost of the car, which markets and policy move around, and there are buying-process costs, such as fees, markups or add-ons, that buyers should verify before signing. You cannot personally negotiate a country's import duties. You can absolutely control whether a rising-price market becomes an opening for fees and adjustments at the sales desk. That is the gap LetYouKnow is built to close. Instead of agreeing on a number and then defending it line by line, you submit one Bid for a lower price than the best price you found on the exact car you build and get an instant result. All dealer and platform fees are already included in your Bid; only government fees (tax, title and registration) are added separately to reach the out-the-door total. So no dealer tariff surcharge should be added on top of an accepted Bid. Whatever the broader market does to the cost of cars, the process is less likely to be where extra cost appears late. By Boris Zhukov, CEO of LetYouKnow, Inc. and economist with a PhD from NC State. ## Sources and notes - U.S. auto tariffs (current policy). Under Proclamation 10908, the U.S. imposed a 25% Section 232 tariff on covered imported automobiles entered for consumption on or after April 3, 2025, and on covered auto parts effective no later than May 3, 2025; for a USMCA-qualifying vehicle, an importer can have the duty applied only to approved non-U.S. content (Federal Register, Proclamation 10908, 2025). - Negotiated country rates. Covered auto imports from the EU, Japan and South Korea face a 15% total tariff; most UK auto imports face a 10% total U.S. tariff rate. Rates and the status of each arrangement continue to change (Congressional Research Service, Section 232 Automotive Tariffs, updated 2026). - How much tariffs raised prices. Cox Automotive estimated average year-over-year increases of about $5,000 to $8,900 for imported vehicles and $1,600 to $2,000 for U.S.-assembled vehicles; average list prices rose 10.4% while transaction prices rose 5.9% as dealers absorbed much of the difference. These are industry averages, not a per-vehicle tariff (Cox Automotive via Kelley Blue Book, March 2026). - Customs timing principle. The duty rate on an imported vehicle is fixed by the date it is entered for consumption (or withdrawn from warehouse for consumption), not its build date; goods in a bonded warehouse are rated when withdrawn (19 U.S.C. 1315). - FTC Act Section 5 (deceptive pricing). Unfair or deceptive acts or practices are unlawful under Section 5 of the FTC Act (15 U.S.C. 45); undisclosed or misrepresented mandatory charges can be addressed as deceptive under it and under state consumer-protection law (15 U.S.C. 45). - LetYouKnow platform facts. The buyer submits one Bid for a lower price than the best price they found. If the Bid is accepted, the vehicle is reserved, the dealership is revealed and the Bid becomes the locked-in price. The Bid includes all dealer and platform fees; only government fees, such as tax, title and registration, are added separately. ## Frequently asked questions ### How much are tariffs raising new car prices? There is no single percentage, because a tariff is charged on imported vehicles and imported parts, so the increase depends on where a specific car and its components were made. For scale, Cox Automotive estimated (via Kelley Blue Book, March 2026) that tariffs raised the average imported vehicle's price by about $5,000 to $8,900 year over year and a U.S.-assembled vehicle's price by about $1,600 to $2,000; average list prices rose 10.4% while buyers actually paid about 5.9% more. The policy baseline is a 25% Section 232 tariff on covered imported vehicles, but what reaches a given car varies: a USMCA-qualifying vehicle can have the duty applied only to its approved non-U.S. content, while negotiated deals cap the EU, Japan and South Korea at a combined 15% and give most UK auto imports a 10% rate. The figure that decides what you pay is the out-the-door total for the exact vehicle you are buying. ### Would a car built in early 2025 be taxed differently on tariffs than a newer one? In the way that affects a buyer's wallet, sometimes, but the deciding date is the customs entry date, not the build date. Under U.S. customs law the duty rate is fixed by the rate in effect when a vehicle is entered for consumption (19 U.S.C. 1315), so a car already entered before a tariff increase is generally charged at the earlier rate rather than re-tariffed. That is why, in a period of rising duties, in-stock inventory can sometimes be priced more favorably than not-yet-imported builds, and why in-stock versus on-order is worth asking about. It does not mean an older unit is automatically cheaper, because a dealer can still mark up scarce inventory. It only means its import duty was set at entry, not by when it was built. ### Should I buy a new car now to avoid tariffs, or wait? Make it a math decision, not a fear decision. Buying now can make sense when the specific model you need is in stock, you have confirmed a real out-the-door figure in writing and the financing terms are acceptable. Waiting can make sense when your model's pricing or the duties behind it are expected to ease, when you are flexible on trim or brand, or when a better financing rate is plausibly on the way. The thing to watch in either case is the same: in a rising-price market a quoted price can drift upward before you sign as fees or market adjustments are added. Whatever you decide, lock the complete out-the-door number before you commit, rather than reacting to a tariff headline. ### Are dealers allowed to add a tariff surcharge to the price? A dealer can build cost into the price they ask for a car, but a separate, vaguely labeled tariff line you never agreed to can raise disclosure concerns under the FTC Act and state consumer-protection law. The label tariff gives a fee no special standing. The test is whether you agreed to it and whether it is itemized in writing before you sign. The defense is unchanged by tariffs: ask for an itemized out-the-door breakdown and treat any dealer-added charge you did not agree to, by whatever name, as negotiable or one you can decline until it is written into the contract you sign. ### Will waiting actually save me money, or could prices keep rising? Nobody can promise the direction of future prices, which is exactly why a wait-or-buy choice should rest on factors you can verify rather than on a forecast. What you can control: the out-the-door price you confirm in writing today, the financing rate you qualify for and whether the model you need is in stock now. What you cannot control is where duties go next or how each automaker chooses to pass cost through. If your reason to wait is prices will probably fall, you are wagering on a prediction; if your reason to buy is I have locked a confirmed total on a car I need, you are acting on a known number. --- # What Dealer Fees Are Legit and What Are Junk? Canonical: https://letyouknow.com/guides/dealer-fees-legit-vs-junk/ ## The one test that separates a legit fee from a junk one Two kinds of charges are largely outside the dealer's control no matter where you buy the same car: government charges (sales tax, title, registration and any local fees) and the manufacturer's destination charge printed on the window sticker. Most other line items on a new car bill are dealer-set and many are negotiable or optional. Telling a legitimate charge from a junk one comes down to a few questions: Who imposed it, the government, the manufacturer or the dealer? Is it actually required and by whom? Was it disclosed before you committed? Did you agree to it? Does it provide a real product or service? Government and manufacturer charges are required and tied to the car. A dealer add-on like a paint protection package or nitrogen in the tires may be a real product, but it is usually optional for you as the buyer: you can decline it or walk away, though a dealer may decline to sell that vehicle without a disclosed preinstalled package. A charge becomes a junk fee when it is hidden, misrepresented as required, duplicated or provides no real benefit, not simply because the dealer added it or another dealer skips it. ## The negotiable middle: doc fees and dealer-installed add-ons The documentation fee is dealer-imposed, not a government charge. The paperwork it covers is real, but the dollar amount is set by the dealer and varies enormously. Some states cap or regulate it; others set different limits or none at all, so check your state's DMV or attorney general. Whether a dealer will cut that line itself varies, so treat it as part of the negotiable out-the-door total rather than a fixed cost. Beyond the doc fee, dealer-installed products are usually optional for you as the buyer and you can decline ones you did not ask for: - Paint, fabric or undercoating protection packages - Nitrogen-filled tires - VIN etching and theft-recovery devices - Wheel locks and dealer prep None of these is required by law to title or register the car and none is automatically required by the manufacturer or lender, so you can decline ones you did not ask for. If an item is already installed, a dealer may decline to remove it and you then weigh the total or shop elsewhere. If a dealer says one of these is required, ask for that in writing. What is not negotiated with the dealer is the government side (tax, title, registration) and the manufacturer's destination charge. ## When the fees line is really just margin On a new car, the genuinely required additions, sales tax, a title-and-registration charge and the manufacturer's destination charge on the window sticker, can still total several thousand dollars, especially in higher-tax areas. The destination charge alone often runs into four figures. So before judging the fees line, compare the itemized charges against your state and local government charges: most of any excess beyond those required charges is dealer add-ons or markup, not government or factory charges. Judge the line against the car's price and your state's rates, not a fixed dollar amount. So when the fees line jumps well beyond the required charges, ask for an itemized breakdown and separate the government and manufacturer charges from the dealer-added ones. The dealer portion, add-ons and markup, feels official because it is printed on a worksheet, but it is dealer revenue, which means it is on the table. ## Why mandatory add-ons usually are not Buyers feel cornered when an add-on is called mandatory, and the answer is reassuring: an add-on a dealer calls mandatory is rarely legally required. The manufacturer and your state do not require it to register the car. A dealer can still choose to sell a particular car only with a disclosed package; that is its offer, not a legal requirement. So the description alone does not make a charge legally required. Regulators have taken aim at this. Presenting an add-on as required when it is not, or adding it after a lower advertised price or without your agreement, can raise issues under the FTC Act and state consumer protection law. So when an add-on is presented as legally required, ask for that requirement in writing. You can ask for it to be removed or decline the transaction and a dealer cannot charge you for an add-on you did not agree to. ## A quick reference: what to pay, negotiate or refuse You can decline optional dealer-installed add-ons you did not agree to and treat the doc fee as part of the negotiable total. What is not negotiated with the dealer is the part that belongs to the government and the manufacturer: - Charge | What it is | Your move - Sales tax, title, registration | Government, set by law, not the dealer | Verify the amount; not negotiated with the dealer - Destination / freight charge | Manufacturer charge on the window sticker | Match it to the sticker; the line is not removed, but the overall price is negotiable - Documentation (doc) fee | Dealer-imposed paperwork fee; capped in some states | Treat as part of the negotiable total; check your state's limit - Paint/fabric protection, nitrogen, VIN etching, wheel locks | Optional dealer-installed products | Decline what you did not ask for. A preinstalled item may not be removable, so weigh the total or shop elsewhere - Market adjustment / addendum | Dealer markup above MSRP, not a fee | Negotiate, compare dealers or walk - A hidden, undisclosed, misrepresented, duplicated or no-benefit charge | A red flag charge, potentially deceptive if hidden, unauthorized or misrepresented | Ask for removal or correction, document it and consider walking away or reporting ## Where LetYouKnow fits As an economist, the thing I find clarifying about the fees fight is that it is a timing problem, not a villain: in many traditional transactions the full itemized number appears late in the process, after you have invested time at the store. That can make add-ons and markup harder to evaluate calmly. The reason this fight exists is the process, not any one dealer. LetYouKnow is built differently. You set your own price as a single Bid and all dealer and platform fees are already included in that Bid. Only government fees, such as tax, title, registration and other applicable government charges, are added separately to reach the out-the-door amount. There is no separate add-on round at the sales desk; confirm the final charges in the transaction documents. The same fee logic this article describes, government charges on their own and dealer and platform costs already inside the bid, means a lowest competing out-the-door offer, with its government portion (tax, title and registration) netted out, gives you a ready ceiling for your bid. By Boris Zhukov, CEO of LetYouKnow, Inc. and economist with a PhD from NC State. ## Sources and notes - Destination is a pass-through, the same regardless of dealer. The destination charge is a pass-through charge from the automaker to the dealer, listed as the last line item at the bottom of every new car's window sticker; automakers set it so buyers do not pay more or less based on location (Consumer Reports, 2023). - Documentation-fee caps. The doc fee is dealer-imposed, not a government fee; some states cap or regulate it (California caps it at $85 / $70 and bars calling it a government fee), while others cap it differently or not at all. Check your state's DMV or attorney general (California DMV). - Unwanted add-ons. The FTC says dealers cannot charge buyers for add-ons they did not agree to and advises telling the dealer to remove unwanted products from the contract (FTC). - FTC Act Section 5, deceptive practices. Section 5 of the FTC Act (15 U.S.C. 45(a)) prohibits unfair or deceptive acts or practices; presenting an add-on as required when it is not, or adding it without disclosure or the buyer's agreement, can be addressed as deceptive under Section 5 and under state UDAP laws (Cornell Law / U.S. Code). - LetYouKnow platform fact: dealer and platform fees are included in the Bid; only government fees (tax, title, registration) are added separately. ## Frequently asked questions ### What dealer fees are legit and what are junk? The least disputable fees are the ones you cannot avoid at any dealer: government charges (sales tax, title, registration) and the manufacturer's destination charge on the window sticker. The exact amount still depends on state and local rules, the vehicle price and any credits or exemptions. Other line items are dealer-set: a documentation fee (real paperwork, dealer-priced) and optional add-ons like paint protection, nitrogen tires, VIN etching or dealer prep. A charge is a red flag when it is hidden, undisclosed, misrepresented as required, duplicated or for a product you did not agree to, not simply because the dealer added it. ### What additional dealer fees are negotiable or can be waived? The documentation fee is dealer-imposed (some states cap or regulate it), so whether the dealer cuts that line varies. Treat it as part of the negotiable out-the-door total. You can decline optional dealer-installed add-ons you did not ask for, including paint and fabric protection, nitrogen tires, VIN etching, wheel locks or dealer prep. A dealer may not physically remove a preinstalled item, in which case you weigh the total or shop elsewhere. Government charges and the manufacturer's destination charge are not negotiated with the dealer. ### Is it normal for fees to add thousands to a new car's price? It depends on the car. The unavoidable additions, sales tax, title, registration and the manufacturer's destination charge, can still total several thousand dollars, especially in higher-tax areas. The destination charge alone often runs into four figures and on a pricier car the sales tax alone can run several thousand. The point is not the size alone: compare the itemized charges against your state and local government charges, ask for an itemized breakdown, separate the government and manufacturer charges from dealer-added ones and challenge anything hidden, unauthorized or added late. ### How are mandatory dealer add-ons not tie-in selling? Bundling itself is not automatically illegal. A dealer can lawfully choose to sell a particular car only with a disclosed package, and tie-in selling is a specific antitrust concept that does not apply to every bundle. The consumer problem is different: an add-on falsely called legally required, hidden from the advertised price or added without your consent. So separate the two. Ask whether a required add-on is truly required by law, the lender or the manufacturer and ask for it in writing. Also ask whether it was in the advertised total. Presenting unwanted or worthless add-ons as required remains addressable under the FTC Act and state consumer protection law. Your options are to negotiate, accept the disclosed package, choose another vehicle or walk. ### Which new car fees can I refuse? You can decline optional dealer-installed add-ons you did not ask for, including paint or fabric protection, nitrogen tires, VIN etching, theft-recovery devices or dealer prep. You can also treat the doc fee as part of the negotiable total. If an item is already installed, a dealer may not remove it, in which case you weigh the total or shop elsewhere. You cannot negotiate away government tax, title and registration or the manufacturer's destination charge. Those are set by law and the manufacturer, not the dealer. --- # Is the Destination Fee Legitimate and Why Isn't It in the Car's Price? Canonical: https://letyouknow.com/guides/destination-freight-fee/ ## Is the destination fee actually legitimate? Yes. The destination charge is one of the few new car fees that is generally not removable as a line item and genuinely not dealer markup. It is a flat amount the manufacturer sets to cover moving the vehicle from the assembly plant to the dealership, and it is printed as its own line on the federally required window sticker. What makes it legitimate is straightforward: it is a real charge imposed by the manufacturer rather than an add-on created by the dealer, disclosed on the sticker, and generally the same at any dealer selling that model. That is also the test for spotting an inflated or duplicate charge. Pull up the manufacturer's window (Monroney) sticker for the exact vehicle and find the destination line. If the number on your paperwork matches the sticker, it is the real freight charge. If the destination line is higher than the sticker, or a second delivery, transport or freight line simply restates the factory freight, ask whether that extra amount is dealer-added markup or a separate disclosed service. A delivery service you actually opt into, such as home delivery, is a legitimate, separately priced service, not a duplicate factory fee. ## Why isn't the destination charge included in the car's price? It is in the sticker's total. The Automobile Information Disclosure Act, the 1958 law that created the window sticker, requires the manufacturer to list the base MSRP, the factory options and the destination charge as separate lines and then a combined total of all three. So destination is separate from the base MSRP, not from the sticker's total price. The point is visibility: a buyer is supposed to be able to see what the car itself costs and what it costs to ship it, side by side. The frustrating part is what happens downstream: an advertisement or online listing often quotes the base MSRP alone, presenting it as the price of the car. The destination charge, which was always on the sticker and part of the total, then shows up later and can feel like an add-on. The reliable move is to compare the advertised price against the Monroney total and ask for a written out-the-door quote. ## So is it a fee you can negotiate, or a fee you just pay? It helps to sort new car charges into three buckets. Government charges (sales tax, title, registration) are set by your state and are not negotiable. The manufacturer's destination charge is set by the factory, printed on the sticker, and generally the same at any dealer, so it is also not negotiable as a line. Everything else, doc fees, market adjustments, paint protection, nitrogen tires and dealer prep, comes from the dealer and most can be negotiated or declined. The destination charge lives in that second bucket. That is why the practical advice is narrow: you do not negotiate it down, but you do verify it against the sticker and you do refuse any amount stacked above it. Trying to get the real destination fee waived goes nowhere; focus instead on the car's total selling price and on catching any amount stacked above the sticker. ## A quick reference: destination fee vs. the fees you can push back on - Charge | Who sets it | On the factory sticker? | Negotiable? - Destination / freight | Manufacturer | Yes (on the Monroney sticker) | No, but never pay above the destination amount on the sticker - Sales tax, title, registration | Your state | No (government side) | No - Documentation (doc) fee | Dealer | No | Often. Some states cap it - Market adjustment / addendum | Dealer | No | Yes. Negotiate it or compare other offers - Extra transport / second freight line | Usually the dealer | No | Ask what separate service it covers; challenge it if it just duplicates the destination charge ## Where LetYouKnow fits The reason a legitimate, fixed charge like destination still causes anxiety is the traditional buying process, not the fee itself: the sticker and the worksheet are often compared late in the transaction, which can make a duplicate or mislabeled charge harder to spot. LetYouKnow is designed to reduce that late-stage surprise. You set your own price as a single Bid, and dealer and platform fees are already included in that Bid. Only government fees (tax, title, registration) are added separately. Because the manufacturer's destination charge is a fixed amount disclosed on the sticker, it is included inside that single Bid rather than surfacing as a late-stage line you have to police, on the way to your out-the-door total. By Boris Zhukov, CEO of LetYouKnow, Inc. and economist with a PhD from NC State. ## Sources and notes - Monroney window sticker (Automobile Information Disclosure Act, 15 U.S.C. 1232): the federally required label must disclose the base MSRP, factory options, the destination charge and the total of all three, so destination is shown separately but is included in the sticker's total (Cornell Law / U.S. Code). - Destination (freight) charge is manufacturer-set, on the window sticker, and generally the same regardless of location. The manufacturer sets and averages the cost, so the line is generally the same for a given model regardless of where the buyer lives, and is not dealer negotiable (Consumer Reports). - Typical destination-fee amounts. Kelley Blue Book put the 2025 industry average around $1,551, with 2026 full-size trucks (Ford F-150, Chevy Silverado, GMC Sierra) at $2,795 and some models reaching about $3,250 (Kelley Blue Book / Cox Automotive, 2026). - MSRP and dealer pricing. The FTC explains the key word in MSRP is suggested; a dealer is free to set the retail price of the products it sells, at MSRP or a different price, as long as the dealer comes to that decision on its own (FTC, Manufacturer-imposed Requirements). - LetYouKnow platform fact: dealer and platform fees are included in the Bid; only government fees (tax, title, registration) are added separately. ## Frequently asked questions ### Is the destination fee legitimate? Yes. The destination charge is a real, manufacturer-set fee for shipping the car from the factory to the dealer. It is printed on the Monroney window sticker, it is generally the same at any dealer selling that model and it is not dealer margin. You can confirm a charge is the legitimate destination fee by checking it against the manufacturer's window sticker for that exact vehicle; the number should match. What is not legitimate is a destination line that exceeds the sticker amount, relabeling markup as freight or adding a duplicate or mislabeled shipping fee on top of the real one. A separately disclosed delivery service, such as home delivery, is a real service, but not a duplicate factory charge. ### Why is the destination charge not included in the car's price? It is included in the sticker's total. Federal law, through the Automobile Information Disclosure Act, requires the Monroney sticker to list the base MSRP, factory options and destination charge as separate lines, then show a combined total. So the destination charge is separate from the base MSRP, not separate from the sticker's total price. That separation is a transparency rule, not a trick. The confusion usually happens later: an advertised price may show the base MSRP alone, so the destination charge can feel like a surprise even though it was already listed on the sticker and included in the sticker's total. ### Can you negotiate or refuse the destination fee? The destination line itself is generally not removed or reduced. It is set by the manufacturer, not the dealer, and is usually the same at any dealer selling that model. What you can negotiate is the car's overall selling price, and a lower selling price can offset part or all of the destination charge. You should also make sure the manufacturer's destination charge on your paperwork matches the sticker amount and refuse any duplicate or mislabeled transport, delivery or freight charge added on top of the real one. That is different from a separately disclosed delivery service you actually choose, such as optional home delivery. ### How much is a typical destination fee? It is a fixed dollar amount for the specific vehicle, not a percentage. It varies widely by manufacturer and model and it has risen fast. Kelley Blue Book put the 2025 industry average around $1,551, with full-size trucks among the highest, including the 2026 Ford F-150, Chevy Silverado and GMC Sierra at $2,795 and some models reaching about $3,250. Because the amount can change by model, configuration and model year, check the exact vehicle's window sticker rather than relying on an average. ### Is the destination fee the same as a dealer doc fee or market adjustment? No. The destination charge comes from the manufacturer and is printed on the factory window sticker. A documentation (doc) fee and a market adjustment come from the dealer: the doc fee is for paperwork and is often negotiable, and a market adjustment is added dealer margin. If a freight or destination line is larger than the manufacturer's sticker number, the extra amount is dealer-added, not the manufacturer's destination charge. --- # How Far Below MSRP Can You Negotiate a New Car? Canonical: https://letyouknow.com/guides/how-far-below-msrp/ ## How far below MSRP can you negotiate a new car? There is no fixed rule, and the reason no one gives you a straight percentage is that the honest answer changes with every car. How far below MSRP you can go depends mainly on the vehicle's supply and demand, current manufacturer incentives and how much the dealer wants to move that exact vehicle. A common, well-stocked model may be discounted by several thousand dollars; a slow-selling current-year car the dealer is eager to clear can go further; and a scarce or just-released model may sell right at MSRP or even carry a markup above it. Marketwide, the gap is real and measurable. In May 2026 the average transaction price was $49,220 against an average MSRP of $51,595, an aggregate gap of about $2,375, with incentives averaging 7.1% of the transaction price. That is a marketwide estimate, not a per-car figure: it is shaped by which vehicles sold. The useful question is not what percentage is normal, but where does this car sit, because the number you can reach depends on supply, demand, incentives and inventory age for your specific make, model and trim. ## Can you negotiate below MSRP on a new car? For many new cars, yes. The S in MSRP stands for suggested: the Manufacturer's Suggested Retail Price. The manufacturer prints that number on the window sticker, but the dealer sets the price the car actually sells for. Because invoice, incentives, holdback and inventory carrying costs can make a dealer's economics different from MSRP, many mainstream models sell under sticker when inventory is healthy. The clear exceptions are high-demand or limited-supply vehicles. When more buyers want a car than the dealer can get, there is no pressure to discount, and some dealers add a market adjustment that pushes the price above MSRP. So can I go below sticker is rarely the real question. The real question is how far the particular car you want allows. ## How much off MSRP can I realistically expect? Realistically, expect a range, not a number. A well-stocked model can often move a few percent below MSRP; a slow-selling current-year car the dealer wants off the lot may go further. Timing near a month or quarter-end can add flexibility if a dealer is chasing a volume target, though inventory and vehicle-specific incentives usually matter more than the date. A scarce or newly released model may sell at MSRP or above, no matter how you negotiate. The risk is measuring success by the discount alone. A headline discount off MSRP means less if mandatory add-ons or fees are disclosed later and raise the final itemized total. This is why the figure that actually matters is the itemized out-the-door price, the total before financing, and why a discount is only real once it survives all the way to that total. ## How do some buyers get a few thousand dollars off MSRP? It is realistic on the right car, with the right method, and it comes from market conditions, not a secret phrase. The conditions that produce a large discount, high inventory, weak demand, real incentives and dealer competition, are captured by three concrete moves: - Choosing a high-inventory, mainstream model, the kind a dealer is motivated to move, rather than a scarce or hyped one. - Getting a written out-the-door quote from several dealers and letting those quotes compete, instead of negotiating face-to-face at a single store. - Negotiating the total price, not the monthly payment, so a lower price is not offset by a longer loan term or higher financing cost. The same effort on a car in short supply would yield little or nothing, because the discount comes from the dealer's incentive to move that specific unit, not from how hard you push. The method just makes sure you capture whatever room exists. ## Why MSRP is a reference number, not a floor or a ceiling It is the manufacturer's suggested price, printed on the window sticker. It is not the dealer's cost, not the lowest price they will accept and not a cap on what they might charge. Two dealers can quote very different out-the-door totals for equivalently configured vehicles, which only makes sense once you stop treating the sticker as the true price and start treating it as a reference. That distinction matters because so much new car advice anchors everything to MSRP. The figure that decides whether you got a good deal is the out-the-door total you can get in writing, and how those totals compare across dealers who want your business. ## How LetYouKnow lets you bid below the sticker Instead of measuring against MSRP, you bid your own price as a single number, and you are free to bid below MSRP. On the platform, MSRP appears only as a sticker-price attribute that identifies the exact car you are building, never as a hint or a suggestion. When you submit your Bid, LetYouKnow gives you an instant result. If your Bid is accepted, the vehicle is reserved, the dealership is revealed and your Bid becomes the locked-in price. If it is not accepted, there is no charge and you can adjust and Bid again. Your Bid includes all dealer and platform fees, with only government fees, such as taxes, title and registration, added separately. In short: the traditional question is how far below MSRP will they go. On LetYouKnow you set the number yourself and find out whether eligible participating dealers will match it. By Boris Zhukov, CEO of LetYouKnow, Inc. and economist with a PhD from NC State. ## Sources and notes - New-vehicle average transaction price vs. MSRP and incentives (May 2026): marketwide average transaction price $49,220 against an average MSRP of $51,595 (an aggregate gap of about $2,375), with incentives averaging 7.1% of transaction price. This gap is a marketwide average shaped by the mix of vehicles sold, not a per-vehicle negotiated discount (Cox Automotive, Kelley Blue Book May 2026 Average Transaction Price report). - MSRP (Manufacturer's Suggested Retail Price) is a suggested price, not the dealer's cost or selling price; federal law (15 U.S.C. 1232) requires the Monroney window sticker to disclose the base price, factory options, destination charge and total (Cornell Law / U.S. Code). - Out-the-door pricing as the comparison standard: the total a buyer pays including all dealer fees, which is the figure that determines whether a discount off MSRP is real after fees are accounted for. The FTC advises comparing the full out-the-door total across dealers rather than a single advertised number. - LetYouKnow platform facts: the buyer bids a lower price than the best price they found and gets an instant result. If the Bid is accepted, the vehicle is reserved, the dealership is revealed and the Bid becomes the locked-in price. The Bid includes all dealer and platform fees; only government fees, such as taxes, title and registration, are added separately. MSRP is shown as a vehicle attribute, not a price hint. ## Frequently asked questions ### How far below MSRP can you negotiate a new car? There is no fixed percentage. It depends on how badly the dealer wants to move that specific car. On a model with high inventory or slow sales, you might come a few thousand dollars below the sticker; on a car in short supply, you may get little or nothing off, and some dealers add a market adjustment above MSRP. As market context, in May 2026 the average transaction price ran about $2,375 below the average MSRP, with incentives averaging 7.1% of price, but that aggregate gap reflects the mix of cars sold, not a typical discount off your own sticker. To find your own number, get the full out-the-door price in writing from several dealers and let those offers compete. ### Can you negotiate below MSRP on a brand new car? Often, yes, though not on every model. MSRP stands for Manufacturer's Suggested Retail Price, and suggested is the operative word. The dealer sets the price the car actually sells for. Many mainstream models sell below MSRP when inventory is healthy and incentives are available, because the dealer's cost is lower and an unsold car ties up money. The exceptions are high-demand or limited-supply vehicles, where a dealer may hold firm at sticker or add a markup. So the real question is rarely whether you can go below MSRP, but how far that particular car allows. ### How much off MSRP can I realistically expect? Expect a range, not a single number, because it tracks how fast that model sells. A well-stocked car can often move a few percent below MSRP, while a slow-selling current-year model the dealer wants off the lot can go further; timing near a month or quarter-end can help if a dealer is chasing a target. A scarce or just-released model may sell at MSRP or above. Confirm where your specific car sits by collecting written out-the-door quotes from several dealers, because a discount off MSRP means nothing if fees are added back at the sales desk. ### How do some buyers get a few thousand dollars off MSRP, and is it realistic? It is realistic on the right car. The conditions most likely to produce a large discount are high inventory, weak demand, meaningful manufacturer incentives and competition among several dealers. So the buyers who get there choose mainstream models with high inventory, contact several dealers and compare full out-the-door quotes so the dealers compete for the sale. They negotiate the total price, not the monthly payment, where discounts quietly disappear into a longer loan. The same approach on a scarce or in-demand car would produce little or nothing. The discount comes from the dealer's incentive to move that specific unit, not from a negotiating script. ### Does MSRP set the lowest price a dealer will accept? No. MSRP is the manufacturer's suggested retail price, shown on the window sticker so you can identify the exact vehicle and its options. It is not the dealer's cost, not a minimum and not a maximum. It is a reference number. The price a dealer will actually accept depends on their own cost, current manufacturer incentives and how much they want to move that car. That is why two dealers can quote very different out-the-door totals on the identical vehicle, and why comparing written quotes matters more than measuring everything against the sticker. --- # How Much Car Can I Afford on My Income? Canonical: https://letyouknow.com/guides/how-much-car-can-i-afford/ ## How much car can I afford on my income? Most people ask how much car can I afford while looking at a car they already want, then work backward to justify it. Affordability is more reliable the other way around: decide what your monthly budget can absorb, then find the car that fits, never the reverse. Two widely repeated rules of thumb give you a starting frame. The simpler one says the car payment alone should sit under about 10% of your monthly take-home pay, with total car cost, payment plus insurance, fuel and upkeep, kept around 15% to 20%. The stricter 20/4/10 rule says put at least 20% down, finance for no more than four years and keep all vehicle costs under 10% of your monthly income. Neither is a law. What they share is the real point: stopping a comfortable-looking monthly payment from quietly committing more of your income than you can spare. ## Affordability is the whole monthly cost, not the loan payment A loan payment is only the visible part of what a car costs you each month. Insurance, fuel, registration and routine maintenance all draw from the same paycheck, and together they can add up to a large share of the monthly cost. A car that looks affordable on the financing line can be unaffordable once the full monthly burden is counted. So before fixing a payment ceiling, list those recurring costs and subtract them from the share of take-home pay you are willing to commit. What remains is your true payment room, usually smaller than the headline percentage suggests. This is why the rules of thumb cap total car cost, not just the loan: affordability is the sum of those costs, not any single line. ## Turn your budget into an out-the-door ceiling The percentages tell you what you can spend each month; the number you actually shop against is the out-the-door (OTD) price, the complete total before financing, the car plus every dealer fee plus tax, title, registration and other government charges. Translate your comfortable monthly payment into a maximum amount financed, using a realistic preapproved APR and loan term, then add your down payment and any positive trade-in equity to reach a maximum OTD figure. If you still owe more on a trade-in than it is worth, that negative equity is subtracted instead. That number becomes your real budget. Why the OTD total and not the monthly payment? Because a monthly payment can change when the term, APR, add-ons or amount financed change, while the total price is easier to compare across offers. The same monthly figure can hide a longer loan term or a larger amount financed. A maximum out-the-door price, decided in advance, is a firmer anchor, but check it against the APR, loan term and total interest, because two cars at the same OTD price can cost very different amounts to finance and run. ## Why buyers drift past the budget they came in with It is worth naming the mechanism, because it is not a failure of willpower. Many dealership negotiations are organized around the monthly payment, which can make changes in loan term, APR, add-ons or total price less obvious unless the buyer tracks the full OTD price. A few dollars more a month. A year longer on the loan. An optional protection package presented as a small monthly increase. Each feels small on its own; together they carry a buyer well past the budget they walked in with. The defense is structural, not emotional: set your out-the-door ceiling before you shop, put it in writing and decline to negotiate against the payment. When your own number is fixed in advance and you are shopping one exact car to it, a deal that exceeds it is straightforward to identify and decline. ## How LetYouKnow keeps the budget in the buyer's hands Instead of being talked up from a monthly figure, you set your own price as a single Bid, the price you decided you could afford, with all dealer and platform fees already included. When you submit your Bid, you get an instant result. If your Bid is accepted, the vehicle is reserved, the dealership is revealed and your Bid becomes the locked-in price. If it is not accepted, there is no charge and you can adjust and Bid again. All dealer and platform fees are already included in the Bid; only government fees, such as taxes, title, registration, license/plate and other government charges, are added separately. So the dealer and platform charges you budgeted cannot be padded later. Because your Bid covers all dealer and platform fees but not government fees, plan your OTD ceiling to leave room for those on top. By Boris Zhukov, CEO of LetYouKnow, Inc. and economist with a PhD from NC State. ## Sources and notes - Car-payment and transportation share of take-home pay: keep the car payment under about 10% of monthly take-home pay and keep total car cost (payment plus insurance, fuel and maintenance) around 15 to 20%. Presented as a rule of thumb, not a fixed limit (NerdWallet, How Much Should My Car Payment Be?). - 20/4/10 rule: at least 20% down, a loan no longer than four years and total vehicle costs under 10% of your monthly income (the cited source applies this to take-home pay; some versions use gross, so pick one basis and do not mix figures). A guideline, not a requirement (CNBC). - Total cost of ownership beyond the payment: insurance, fuel, registration and maintenance are recurring monthly costs that affect real affordability and belong inside the transportation-budget percentage above. - Out-the-door (OTD) price as the comparison standard: the total a buyer pays before financing, including all dealer fees plus tax, title, registration, license/plate and other government charges; the APR and loan term then determine the financing cost on top (CFPB, Auto loans; and your state DMV fee schedule). - LetYouKnow platform facts: the buyer bids a lower price than the best price they found and gets an instant result. If the Bid is accepted, the vehicle is reserved, the dealership is revealed and the Bid becomes the locked-in price. The Bid includes all dealer and platform fees; only government fees, such as taxes, title, registration, license and plate fees, are added separately. ## Frequently asked questions ### How much car can I afford on my income? Start from your monthly budget, not the price tag. A common rule of thumb is to keep the car payment itself under about 10% of your monthly take-home pay, with total car cost, including payment, insurance, fuel and upkeep, around 15% to 20% of take-home. Another common benchmark, the 20/4/10 rule, suggests at least 20% down, a loan no longer than four years and all vehicle costs under 10% of your monthly take-home income. These are starting frames, not laws: their whole point is to keep a monthly payment that looks comfortable from committing more of your income than you can actually spare. The reliable method is to translate the budget you choose into a maximum out-the-door price, then confirm using a realistic APR and loan term that the monthly payment it produces fits. ### What percentage of my income should I spend on a car? There is no single correct percentage, and the common guideposts use different income bases, so they can give different budgets. Many personal finance sources suggest the car payment alone should stay under about 10% of monthly take-home pay, with all car costs together around 15% to 20% of take-home. The 20/4/10 rule instead caps total vehicle spending at 10% of monthly take-home income. Use whichever fits your situation and treat the percentage as a ceiling you set in advance, not a target the monthly payment can creep up to. The out-the-door price tells you what the car costs before financing; the APR, loan term and total interest determine what borrowing adds, so compare both, not the payment alone. ### How do I figure out my car budget before I shop? Budget backward from what you can comfortably spend each month, not forward from a car you like. First, list the recurring costs a car adds beyond the payment, including insurance, fuel, registration and routine maintenance, because affordability is the whole monthly burden, not just the loan. Subtract those from the share of take-home pay you are willing to commit; what remains is your true payment room. Then turn that comfortable payment into a maximum amount to finance using a realistic preapproved APR and loan term, add your down payment and any positive trade-in equity, subtract any loan payoff that exceeds the trade-in's value, and you have a maximum out-the-door price. That ceiling, decided before you ever talk to a dealer, is your real budget. ### Should I budget based on the monthly payment or the total price? Base it on the total out-the-door price and use the monthly payment only as a comfort check against it. Budgeting payment first is the most common way a car ends up costing more than planned: a dealer can hold a target monthly figure roughly steady by stretching the loan term or changing the amount financed, even as the APR, add-ons or total price rise, so the payment stays flat while the real cost climbs. Decide your maximum out-the-door total first, then confirm the payment that total produces fits inside your monthly budget. If a dealer steers the conversation to what payment are you comfortable with, that is the moment the total can quietly grow. ### Why do I end up looking at more expensive cars than I planned? Because many dealership negotiations center on the monthly payment, which is easy to nudge upward without the total ever feeling bigger. A few dollars more a month, a year longer on the loan and an add-on folded into the financing each feel small in isolation. Together they pull you well past the budget you arrived with. The defense is to fix your out-the-door ceiling in writing before you shop and refuse to negotiate against the payment. When you know your own number and shop the exact car to it, you have a clear basis for rejecting a more expensive deal. --- # How Do You Buy a New Car, Step by Step? Canonical: https://letyouknow.com/guides/how-to-buy-a-new-car-step-by-step/ ## The six steps Buying a new car feels complicated because the traditional process often keeps you reacting to a monthly payment, to a trade-in offer or to a fee that appears at the sales desk. The fix is to follow a disciplined sequence and not let anyone scramble it. - Set a budget and arrange your own financing first. A pre-approval from your bank or credit union gives you a rate to beat, so the dealer's financing becomes a comparison, not the default. Keep your budget and payment ceiling private. - Pick the exact vehicle by make, model, trim and options, so every dealer quotes the identical car and the prices you collect are comparable. - Request a full itemized out-the-door price in writing from several dealers for that exact car: selling price, doc fee, destination charge, any dealer add-ons and your state's tax, title and registration. Do it by email so you have a record. - Negotiate one number only, the out-the-door total, never the monthly payment. Decline add-ons you did not ask for and hold every dealer to the same itemized figure. - Keep the trade-in and the financing as separate deals. A trade-in is the dealer buying your old car; financing is a question of rate and term. Settle them one at a time, after the car's price is set. - Review every line, then sign and take delivery. Confirm each number matches the out-the-door price you agreed to, check the APR, amount financed, finance charge and total of payments, inspect the car and check the VIN for open safety recalls before you take the keys. ## Why does the order of the steps matter so much? Most how to buy a car advice lists the same tasks; what trips buyers up is doing them in the wrong sequence. The reason order matters is that money is fungible. A dollar moved off the advertised price can reappear as a lower trade-in allowance, a stretched loan term or a fee that surfaces at signing. So the sequence is doing one job: it forces each number to be settled and recorded before the conversation that could blur it. Arrange your own financing first so the dealer's loan is a comparison. Pin the exact build so every quote is for the identical car. Collect the full itemized out-the-door total in writing before anyone mentions a payment, then hold the negotiation to that single number. The trade-in and the loan come last, each handled as its own deal. ## What questions should you ask at the dealership before buying? The point of every question is the same: get every material figure in writing. - Can I get the complete out-the-door price, itemized, for this exact VIN? This is the one that matters most. - Are any of the add-ons on this car removable? Paint protection, nitrogen and VIN etching are dealer-added and can usually be declined before signing. - What is the doc fee, and does my state cap it? - Does the advertised price include the destination charge? It is a pass-through from the automaker, the same regardless of which dealer sells the car. - Can I have the rate and term in writing, so I can compare the dealer's financing against my preapproval? A dealer who answers these in writing is one worth your time. If a dealer will not put even a conditional out-the-door price in writing, that is a reason to get quotes elsewhere. ## Do you have to negotiate to buy a new car? Negotiation is a means, not the goal. The goal is a fair out-the-door price. You can reach it by arguing across the sales desk or by making dealers compete, in writing, on the same itemized out-the-door figure, which is far less confrontational and can produce a competitive result. That distinction matters for first-timers, people who find the showroom intimidating and anyone who dislikes confrontation. You keep the contest on paper and on a single number. The haggling is one path to a fair price; it is not the price itself, and it is not the only path. ## How do you avoid spending a whole day at the dealership? The time sink is not the car; it is the back-and-forth, manager approvals and finance office wait. Much of that can move outside the dealership. Comparing cars, collecting itemized out-the-door quotes and agreeing on a price are email tasks you do from home, at your own pace, from several dealers at once. By the time you walk in, the only things left are verifying that the paperwork matches the number you agreed to and signing it. A long visit tends to follow from doing everything at the dealership; do the deciding before you go and the visit can be much shorter. ## Where LetYouKnow fits LetYouKnow simplifies the price step. You build the exact car, take the lowest price you found from quotes or online research, then bid an even lower price. Your Bid includes all dealer and platform fees. Only government fees (tax, title and registration) are added separately. There is no traditional back-and-forth price negotiation, and you will know instantly if your Bid is accepted. If your Bid is accepted, the vehicle is reserved, the dealership is revealed and your Bid becomes the locked-in price. Because dealers do not see who you are until your Bid is accepted, there are no unsolicited dealer calls during the bidding stage. You still review financing, government charges, paperwork and delivery as usual. What LetYouKnow removes is the price haggling. By Boris Zhukov, CEO of LetYouKnow, Inc. and economist with a PhD from NC State. ## Sources and notes - Destination charge / Monroney sticker (15 U.S.C. 1232): the destination charge is disclosed as a separate line on the federally required Monroney window sticker and included in the total. It is a pass-through charge from the automaker to the dealer, the same regardless of which dealer sells the car (Cornell Law / U.S. Code; Consumer Reports). - Documentation-fee caps: some U.S. states statutorily limit the doc fee; the amount is otherwise dealer-set and varies by state and dealer (state statutes and DMV/Attorney-General rules). - Pre-approval / financing leverage: getting preapproved by a bank or credit union first gives you a loan quote (interest rate, loan length, maximum amount) to compare against dealer-arranged financing (Consumer Financial Protection Bureau). - 12 C.F.R. 1026.18 (Regulation Z / TILA): a creditor must disclose the amount financed, finance charge, annual percentage rate, payment schedule and total of payments. - Open-recall check (NHTSA): NHTSA provides a free VIN-based safety-recall lookup and recommends checking for open recalls before taking delivery (nhtsa.gov/recalls). - LetYouKnow platform facts: dealer and platform fees are included in the Bid and only government fees (tax, title, registration) are added separately; the match resolves instantly with no negotiation round; dealers do not see the buyer's identity until a Bid is accepted. ## Frequently asked questions ### What is the process of buying a car from a dealership? A common sequence is: figure out your budget, then arrange your own financing, pick the exact car, get a full itemized out-the-door price in writing from several dealers, negotiate that one total, handle the trade-in and loan as separate deals, then review every line and sign. The single rule that ties it together is sequence: settle the vehicle's selling price plus dealer charges before money is mixed in from a trade-in, a loan or a monthly payment. Tax, title and registration then follow under your state's rules, where a trade-in can change the taxable amount. ### What are the best tips for buying a new car for the first time? Anchor on the out-the-door total, not the monthly payment. It is the number that captures the full purchase price; the APR and term then determine the financing cost on top. Get that figure in writing from three or four dealers and compare line for line. Keep your budget, your trade-in and your financing private until the car's price is locked. Push back on add-ons you did not ask for. Treat a refusal to quote the full out-the-door price in writing as a signal to move on, not as something to push through. ### What questions should I ask at the dealership before buying? Ask for the complete out-the-door price, itemized, for the exact VIN, and whether any add-ons on the car are removable. Ask what the doc fee is and whether your state caps it. Ask whether the advertised price includes the destination charge. If financing comes up, ask for the rate and term in writing so you can compare it to your preapproval. The goal of every question is to move a number out of the salesperson's head and onto paper you can hold them to. ### How long does buying a new car take, and can I avoid spending a whole day at the dealership? Most of the work, comparing cars, collecting itemized out-the-door quotes and agreeing on a price, can happen by email before you ever go in, which is what can make the dealership visit much shorter. The time sink in the traditional process is the back-and-forth, the trips to talk to the manager and the finance office wait. Settling the price and terms in writing first removes most of that; what is left is verifying the paperwork and signing. ### Do I have to negotiate to get a fair price on a new car? Negotiation is the traditional path, but the real goal is a fair out-the-door price, not the haggling itself. You can get there by making dealers compete in writing on the same itemized out-the-door figure rather than arguing face to face, and many buyers who dislike confrontation prefer exactly that. The number is what matters; the back-and-forth is just one way to reach it, and not the only one. --- # Is a Car Broker Worth It? Canonical: https://letyouknow.com/guides/is-a-car-broker-worth-it/ ## Is a car broker worth it? A car broker is worth it when the time, stress and dealership back-and-forth you avoid are worth more to you than the fee you pay. That is the whole decision in one sentence. Everything else is detail that helps you judge which side of it you fall on. A broker shops for the car, negotiates the price and often coordinates the paperwork, reducing or removing your direct price negotiation with the dealership. For a busy buyer, for someone who dreads the showroom or for someone who tends to overpay when negotiating face-to-face, that service can easily be worth a few hundred dollars. The flip side is just as real: if you pay the broker, that fee is on top of the car's price, and you are relying on the broker's recommended number unless they show you the competing offers. ## What does a car broker actually do for the fee? You are paying for three things bundled together. First, the legwork: contacting dealers, locating the exact trim and options you want and chasing down quotes. Second, the negotiation: a broker who works in this market knows what a given car tends to sell for and pushes for that number on your behalf. Third, the buffer: you skip the hours at the dealership, the let me talk to my manager pauses and the pressure to decide today. Brokers commonly charge a flat fee in the $200 to $1,000 range, and some take a percentage of what they save you instead. With a percentage-of-savings fee, ask what baseline the savings are measured against. A discount off an inflated sticker or first quote can overstate both the savings and the fee. A buffer is a real value, but it is not the same thing as the lowest price, and it is worth keeping the two apart. ## The honest case against a broker Three things deserve a clear-eyed look before you pay one. If you pay the broker, the fee is on top of the car's price, so on price alone the broker has to negotiate at least their fee in savings to break even. Compensation can create a conflict: some brokers are paid by the dealer they place you with, which can give them an incentive to favor paying dealers, so ask in writing who pays the broker and how much. And you may not see the competing offers: some brokers show you several quotes, others provide only a final recommended deal. None of this means brokers are a scam. It means the value is conditional: it depends on the fee, on who pays the broker and on whether you would have negotiated a better deal yourself. Broker licensing and consumer protections also vary by state, so before paying a fee or deposit, check whether your state requires the broker to be licensed, registered or bonded, and get the refund terms in writing. ## Broker vs. buying service vs. doing it yourself The three common paths solve the same problem in different ways, because the dealer's current willingness to discount is not visible up front: - Hire an auto broker. Typically a flat rate of about $200 to $1,000, or a percentage of the savings, to locate the car, negotiate and handle the paperwork. The trade-offs: if you pay the broker, that fee is on top of the car's price, and a broker paid by the dealer has a potential conflict. - Use a car-buying service or membership. Run through warehouse clubs, insurers or consumer sites, connecting you to a network of dealers showing a prearranged price. Usually free or inexpensive because the dealer pays to participate, but the price is often a single figure you may be able to beat elsewhere. - Do it yourself with written out-the-door quotes. Collect a written out-the-door price from several dealers and let those quotes compete. It costs you time, but you control which dealers are contacted, see every quote and pay no middleman fee. What none of the three guarantees is the dealer's lowest possible price, which is confidential and changes with inventory, incentives and timing. ## How LetYouKnow approaches the problem a broker solves A buyer hires a broker because the dealer's acceptable price is not visible up front and the negotiation can be time-consuming, but a broker delegates that negotiation to a paid third party whose incentives depend on how they are compensated. LetYouKnow is built differently. Instead of paying someone to negotiate on your behalf, you set your own price as a single Bid and the platform returns an instant result. If your Bid is accepted, the vehicle is reserved, the dealership is revealed and your Bid becomes the locked-in price. The price you bid already includes all dealer and platform fees; only government fees such as tax, title and registration are added separately to reach the final out-the-door amount. Where a broker answers I do not want to haggle by doing the haggling for a fee, LetYouKnow answers it by removing the price haggle: you propose the price and eligible participating dealers respond. By Boris Zhukov, CEO of LetYouKnow, Inc. and economist with a PhD from NC State. ## Sources and notes - Auto broker fees and compensation: brokers typically charge a flat rate ranging from about $200 to $1,000, or a percentage of the savings, with a retainer of roughly $100 common once you engage one; brokers often work for both dealers and customers, so a quality broker takes no payment or kickback from dealerships. Savings are not guaranteed and broker licensing varies by state (Edmunds; CarEdge). - Membership programs (e.g. AAA, Consumer Reports, Sam's Club) connect members with a dealer network offering prearranged pricing in exchange for referrals, often free with membership (NerdWallet, Car-Buying Services: What To Know). - Out-the-door price as the do-it-yourself comparison standard: the full total including all dealer fees, collected in writing from several dealers, is the figure that lets a buyer compare offers without a broker. - LetYouKnow platform facts: the buyer bids a lower price than the best price they found and gets an instant result. If the Bid is accepted, the vehicle is reserved, the dealership is revealed and the Bid becomes the locked-in price. The Bid includes all dealer and platform fees; only government fees, such as tax, title and registration, are added separately. ## Frequently asked questions ### Is a car broker worth it? It can be, and it comes down to a single trade: is the time, stress and dealership haggling you avoid worth more to you than the broker's fee? A broker shops, negotiates and handles the paperwork on your behalf, so for a busy buyer, someone who hates the showroom back-and-forth or someone who would otherwise overpay, the fee can pay for itself. The case against is just as concrete: if you pay the broker, that is roughly $200 to $1,000 on top of the car; a broker paid by dealers has a potential conflict, so ask how they are compensated; and some brokers show you only a final recommended price rather than the competing offers. Worth it is personal. ### What is an auto broker and how is it different from a dealership? An auto broker is a person or service you hire to find and negotiate a car for you; a dealership is the business that actually owns and sells the car. The dealership's salesperson is paid by the dealer and works to sell that store's inventory at the best price for the store. A broker is meant to work for you: they contact dealers, negotiate price and often handle the paperwork so you skip the showroom. The catch is compensation: some brokers charge you a flat fee, while some are paid by the dealer they place you with, which is a potential conflict you should ask about. How closely the broker's incentives align with yours depends on how they are paid, which should be disclosed in writing. Licensing also varies by state. ### Is hiring an auto broker worth the extra cost? The extra cost is worth it only if it buys you something you value more than the money. Broker fees typically run a flat rate of about $200 to $1,000. Some charge a percentage of what they save you instead. Buyers often pay that fee specifically so they do not have to handle dealership negotiation themselves. The honest test is whether the broker's negotiated price plus their fee beats what you could get yourself with a few written out-the-door quotes, and whether you would actually do that legwork. If you would and do not mind it, a broker is charging you for convenience you do not need. If you would not, the fee can be cheaper than the deal you would have signed alone. ### Are car-buying service memberships the same as auto brokers? No, they work differently. A membership or buying service, the kind offered through warehouse clubs, insurers or consumer sites, usually connects you with a network of dealers who have agreed to show a prearranged price. The service is often free or inexpensive to you because the dealer pays to be in the program. An auto broker is a person or service hired to negotiate a specific deal. The membership trades a custom negotiation for a network price you may or may not be able to beat elsewhere; the broker trades a fee for hands-on negotiation. Both still leave you with the same core question: how do you know the number you were handed is actually the lowest the market will give you? --- # Dealer Market Adjustment: Is a Markup Above MSRP Legit? Canonical: https://letyouknow.com/guides/market-adjustment-markup/ ## Is a dealer market adjustment markup above MSRP legit? It is generally legal, but legal and legit are not the same answer. A market adjustment, often printed as ADM for additional dealer markup, is a dealer-controlled amount added above MSRP when a model is in short supply or high demand. It is not a cost the manufacturer charges and it is not a government fee. It is the dealer choosing to ask for more, generally lawful when it is clearly disclosed as part of the dealer's price, because MSRP is, by definition, only a suggested price. The same logic that makes a markup legal also gives you room to compare: a markup is set by one dealer, for one car, in one moment of demand. Compare an equivalently configured vehicle at another dealership and the markup may shrink or be absent, though on a scarce model several dealers may add a similar one. The number on the addendum is a starting position, not a fixed cost. ## Does "don't pay over MSRP" include factory add-ons? Factory-installed options, the upgraded wheels, the tow package or the premium audio the manufacturer built in, are listed on the Monroney sticker and included in the vehicle's total sticker price, shown separately from the base MSRP. The destination charge is listed there too. If you pay the total sticker price, you have already paid for those factory options and destination. So don't pay over MSRP is not really about factory equipment at all. It is about the dealer addendum, the second sticker the dealer puts up next to the factory one. That addendum is where the market adjustment lives, alongside paint protection, nitrogen-filled tires, VIN etching and dealer prep. None of those is part of MSRP and none is set by the manufacturer. Paying the manufacturer's sticker price means paying the factory total and questioning the dealer addendum. ## Do dealers have to be honest about a markup? Honest about the price, yes; transparent about the math, no. A dealer generally cannot misrepresent what you will pay, and federal law addresses deceptive pricing on this point. Such conduct remains addressable under the FTC Act and state consumer protection law. None of that, though, forces a dealer to explain how it set a market adjustment or label it profit. A dealer can write Market Adjustment and a figure on the addendum without justifying the number, but the charge must still be disclosed consistently with applicable advertising and contract rules. In any case, the buyer's defense is procedural: ask for the full out-the-door price in writing, with every line itemized, before you agree to anything. ## Are tariff-related market adjustments legit? Tariffs are a genuine cost pressure on new cars. The honest framing is this: tariffs are imposed upstream on imported vehicles and parts, not as a retail government fee paid at the dealership, and manufacturers, distributors and dealers may pass them through, absorb or offset them differently. So a tariff adjustment added by an individual dealer is part of the dealer's selling price, not a fixed government charge. It behaves like any other market adjustment. Treat a tariff explanation the way you would treat any markup justification: as a reason to compare, not a reason to accept. Ask whether the tariff cost is already reflected in MSRP and compare the same car's total across dealers. ## How do you avoid paying a market adjustment? - Compare the out-the-door price of the same car across several dealers. A markup one dealer treats as mandatory may be lower or absent at another. - Ask for the addendum line to be removed, and be prepared to walk if it stays. Already on the sticker is a negotiating position, not a rule. - Negotiate the out-the-door total, not the monthly payment, so a markup cannot quietly slide into a longer loan term. These steps work, but they require time, leverage and a willingness to walk away. Time already invested in travel and negotiation can make buyers less willing to walk when terms change. ## Where LetYouKnow removes the markup round entirely On LetYouKnow, you bid your own price and get an instant result. If your Bid is accepted, the vehicle is reserved, the dealership is revealed and your Bid becomes the locked-in price. Two platform facts address the addendum risk directly. First, MSRP is shown only as a vehicle attribute, sticker-price information that identifies which exact car you are building to bid on, not a price hint or a floor. Second, all dealer and platform fees are already inside your bid. Only government fees (tax, title, registration) are added separately, so no dealer markup, addendum or market adjustment line should be added on top of your accepted Bid, on the way to your out-the-door total. In a traditional sale with an addendum, you negotiate down from a dealer-added amount. On LetYouKnow you set the price up front, so no addendum line is added after the fact. By Boris Zhukov, CEO of LetYouKnow, Inc. and economist with a PhD from NC State. ## Sources and notes - FTC, Manufacturer-imposed Requirements: the key word is suggested. A dealer is free to set the retail price of the products it sells, at MSRP or a different price, as long as the dealer comes to that decision on its own. - Presidential Proclamation 10908, Adjusting Imports of Automobiles (Section 232), 90 FR 14705 (Apr. 3, 2025): a 25% ad valorem tariff on imported automobiles. - FTC Act Section 5 (deceptive pricing): unfair or deceptive acts or practices are unlawful under Section 5 of the FTC Act (15 U.S.C. 45); misrepresented or undisclosed charges can be addressed as deceptive under it and under state consumer-protection law. - LetYouKnow platform fact: MSRP is shown as a vehicle attribute (sticker-price information), not as a price hint or suggestion; buyers are free to bid above or below MSRP and the platform does not nudge them toward any number. - LetYouKnow platform facts: the buyer bids a price; all dealer and platform fees are included in the Bid and only government fees (tax, title, registration) are added separately. ## Frequently asked questions ### Is a dealer market adjustment markup above MSRP legit? It is generally legal, though legit and legal are not the same thing, and it should be clearly disclosed as part of the dealer's price. A market adjustment is a dealer-controlled amount added above MSRP when demand is high, not a manufacturer cost or a government fee. Because MSRP is only a suggested price, a dealer is allowed to ask more than it. Because the markup is set by that one dealer, it may differ or be absent at another, so you can negotiate it, decline the deal or compare the same car somewhere else. ### Does don't pay over MSRP include factory add-ons? Factory-installed options are listed on the Monroney window sticker and included in the vehicle's total sticker price (shown separately from base MSRP), so paying the total sticker price already pays for them. What don't pay over MSRP is really about is the dealer addendum: market adjustment, paint protection, nitrogen-filled tires, VIN etching and dealer prep. Those sit on a separate dealer sticker, are not part of MSRP and are the charges to question, negotiate or use as a reason to decline the deal if the dealer will not remove them. ### Do dealers have to be honest about a markup? A dealer generally must not misrepresent the price, and federal law addresses deceptive pricing on that point. A dealer is not generally required to explain how it set a markup or label it profit, but mandatory charges must be disclosed as required by federal and applicable state law. So the buyer's protection is procedural: ask for the full out-the-door price in writing, with every line itemized, before you agree to anything. ### Are tariff-related market adjustments legit? Tariffs are a real cost pressure, but they are imposed upstream on imported vehicles and parts, not as a retail government fee collected at the dealership. Manufacturers, distributors and dealers may pass them through, absorb them or offset them differently. So a tariff adjustment added by an individual dealer is part of the dealer's selling price, not a fixed government charge. Ask whether it is already reflected in MSRP and compare the same car's total across dealers rather than accepting the line as unavoidable. ### How do I avoid paying a market adjustment? Compare the out-the-door price of the same vehicle across several dealers. A markup that one dealer treats as mandatory is often absent at another. Ask the dealer to remove the addendum line and be ready to walk if it stays. Or set your own price up front: on LetYouKnow you bid the number you are willing to pay, and dealer and platform fees are already inside that bid, so no dealer markup or market adjustment line should be added on top of an accepted Bid. --- # How Do You Negotiate a New Car Price? Canonical: https://letyouknow.com/guides/negotiate-new-car-price/ ## How do you negotiate a new car price? The whole game comes down to one rule: negotiate the out-the-door price, not the monthly payment. The out-the-door (OTD) price is the full total before financing, the car plus every dealer fee, plus applicable tax, title and registration, and it is the clearest number for comparing the purchase price across dealers. A headline discount can be undercut if mandatory charges or add-ons increase the final total at signing. A practical approach has three concrete moves: decide on the exact car first, get the out-the-door total in writing from several dealers, and compare those written totals side by side. That puts the dealers in competition for the sale, giving each a reason to improve its offer. ## How much negotiation is expected when buying a new car? Less than most advice implies, and more honestly: it depends on the car. There is no universal percentage you are owed. The room to negotiate comes from the vehicle's supply, demand and incentives, and how much the dealer wants to move that one unit, which swings widely. A common, well-stocked model the dealer is eager to clear may be discounted meaningfully; a scarce, heavily promoted or newly released car may have almost no room, and some dealers add a market adjustment that pushes the price above sticker. So the realistic expectation is a range, not a number. Confirm where your specific car sits by collecting written out-the-door quotes from several dealers. The spread between those quotes gives you a concrete basis for negotiation rather than a guess from a sticker percentage. ## What is the best opening offer on a new car? The stronger move is to skip the in-person back-and-forth. One strong, low-pressure opening move is a request rather than a figure: ask each dealer for their best out-the-door price on the exact car, in writing, and tell them you are gathering the same quote from other dealers. That turns the opening into a competition on the total. If you do want to anchor with a number, anchor it to real data, not a rule of thumb: the lowest legitimate out-the-door quote you already hold, not a percentage off MSRP. The dealer's minimum acceptable price is not publicly known, so a lowball based on a sticker percentage is just as much a guess as the sticker itself. A number backed by a competing written quote is one the dealer cannot easily dismiss. ## How do I negotiate a new car price by email? Email is an easy place to negotiate, because it creates a record and forces written, comparable numbers. Start by identifying the exact car. Then email the Internet sales manager at several dealers and ask for the full out-the-door price, with every fee and tax included, for that specific vehicle. Keep every reply about the total only. When one dealer beats another, ask the others whether they can match or beat that out-the-door number. A quoted total in writing is far harder for a dealer to walk back at the sales desk than a verbal around that number, and you are never in the room where the time pressure of a long in-person session can make late-stage fees harder to spot and question. ## Why the out-the-door total is the number to compare Sticker price, invoice and percentage off are each partial numbers that the final bill can quietly contradict. The out-the-door price is the complete purchase price before financing. Two dealers can advertise the same car at the same sticker and hand you out-the-door totals that differ by thousands, because the difference lives in the fees and add-ons stacked on top. That is also why negotiating from the monthly payment alone can hide the total cost. A target payment can be held roughly steady by stretching the loan term or changing the amount financed, even as the total cost rises. Anchor on the out-the-door total in writing and the rest of the negotiation leaves little room for surprise. ## How LetYouKnow approaches new car negotiation LetYouKnow flips the experience. You build the exact car you want, Bid the lower price you are willing to pay and get an instant result. If your Bid is accepted, the vehicle is reserved, the dealership is revealed and your Bid becomes the locked-in price. If it is not accepted, there is no charge and you can adjust and Bid again. There is no traditional showroom negotiation round, and the process begins with your Bid, not a target monthly payment. The price you bid already includes all dealer and platform fees; only government fees, taxes, title and registration, are added separately. In short: the traditional question is how low will they go. On LetYouKnow you set the number yourself and find out whether eligible participating dealers will match it. By Boris Zhukov, CEO of LetYouKnow, Inc. and economist with a PhD from NC State. ## Sources and notes - Out-the-door (OTD) price as the comparison standard: the total purchase price before financing (vehicle price plus all dealer fees, tax, title and registration); the FTC recommends getting it in writing before visiting the dealer and before discussing financing, and checking that the final contract matches (FTC). - Negotiating room is set by supply and demand on the specific vehicle: how far a dealer will move depends on that car's inventory, age on the lot and incentives, not a fixed percentage off MSRP. - LetYouKnow platform facts: the buyer can bid a lower price than the best price they found and get an instant result. If the Bid is accepted, the vehicle is reserved and the dealership is revealed. If the Bid is not accepted, there is no charge and the buyer can adjust and Bid again. The Bid includes all dealer and platform fees; only government fees, such as taxes, title and registration, are added separately. ## Frequently asked questions ### How do you negotiate a new car price? Negotiate from the out-the-door price, not a target monthly payment. The out-the-door price is the full total before financing, including the vehicle price, dealer fees, add-ons, tax, title and registration. Decide on the exact car, ask several dealers for that total in writing and compare the quotes side by side. A discount on the car itself can disappear if fees are added back at the sales desk, and a monthly-payment negotiation can hide the real cost if the loan term is extended. The goal is not to win a face-to-face haggle. It is to get each dealer's actual total price on the same vehicle and choose the lowest one. ### How much negotiation is expected when buying a new car? There is no fixed amount you are supposed to get off, and anyone quoting one number is guessing. How much room exists depends on how badly the dealer wants to move that exact car: a high-inventory, slow-selling model can come down meaningfully, while a scarce or in-demand car may have little room or even a markup above sticker. So the honest expectation is a range set by the specific vehicle and the market, not a percentage. The way to find your real number is to compare written out-the-door quotes from several dealers rather than measure against a rule of thumb. ### What is the best opening offer on a new car? The best opening offer is not a random lowball number. It is a price based on the full out-the-door total. Start by asking each dealer for their best out-the-door price on the exact car, in writing, and let them know you are comparing the same car with other dealers. If you want to offer a specific number, base it on the lowest written out-the-door quote you already have. Do not rely only on a percentage off MSRP, because dealer costs, incentives and inventory pressure can vary by dealership and by car. ### How do I negotiate a new car price by email? Email is the easiest place to negotiate, because it forces written, comparable numbers. Identify the exact car, then email the Internet sales manager at several dealers and ask for the full out-the-door price, every dealer fee plus applicable tax, title and registration included, for that specific vehicle. Keep replies to the total only, and when one dealer beats another, forward the lower out-the-door number and ask if they can match or beat it. Because everything is in writing, a quoted total is far harder to walk back at the sales desk than a number agreed verbally on the showroom floor. ### Should I negotiate on the price or the monthly payment? Negotiate on the out-the-door price, not from a target monthly payment. Payment-first negotiating is a common way a good-looking discount disappears: the same monthly figure can hide a longer loan term, a higher interest rate or rolled-in add-ons. Settle the total out-the-door number in writing first; only then talk about how you will pay for it. --- # Why Is It So Hard to Just Get the Out-the-Door Price? Canonical: https://letyouknow.com/guides/out-the-door-price/ ## Why is it so hard to just get the out-the-door price? Because many car transactions start with one attractive number, an online price or monthly payment, while other parts of the deal may be discussed later. The headline figure is the easy part to share. The out-the-door price, the total you actually pay, is the part that tends to come last: once the full figure is in writing it is harder to add a doc fee, a protection package or a market adjustment after you have already spent your afternoon and feel committed. Part of it is structure. A familiar dealership technique is the four-square worksheet, which splits the conversation into four boxes, purchase price, trade-in, down payment and monthly payment, and keeps attention on the payment, where a high total can be made to look affordable by stretching the loan term. The defense is simple: get the complete, itemized out-the-door total in writing, with the assumptions stated (which incentives, what trade-in, which ZIP for tax), before you move on to trade-in or financing. ## How do you get a simple out-the-door price from a dealer? Ask for it in writing and be specific enough that there is nothing left to fill in later: - Name the exact vehicle, VIN or stock number, not just a 2026 model. - Ask for the full OTD total, itemized: the selling price, the doc fee, the destination charge, any dealer add-ons and your state's tax, title and registration. - Do it by email so you have a record you can compare against the final paperwork. - Hold the line on sequence: decline to discuss trade-in or monthly payment until that OTD number is confirmed. Then do the one thing that makes the total clear: send the same request to two or three dealers and compare the itemized OTD figures, line for line. When each dealer gives you the same categories of information, you can see exactly where the totals differ, and the pressure to keep the number vague stops working. ## What should your out-the-door price be versus the price posted online? Expect the out-the-door total to be higher than the online price, and know why. Treat the posted figure as a number to verify, not the amount you will pay to leave with the car: in practice some listings still leave out the doc fee, dealer-installed add-ons or even the destination charge, and your state's tax, title and registration are added to reach the OTD. A reasonable OTD is the advertised price plus only the necessary or agreed line items: - Component | Who sets it | In a fair OTD? - Selling / advertised price | Dealer (negotiable) | Yes, your starting point - Destination / freight charge | Manufacturer (on sticker) | Yes, manufacturer-set, generally the same for that model - Tax, title, registration | Your state | Yes, unavoidable - Documentation (doc) fee | Dealer (often capped by state) | A fair, modest amount only - Paint protection, nitrogen, market adjustment | Dealer (optional / markup) | Accept only if you want it; optional add-ons can be declined If the gap between the online price and the quoted OTD is just destination plus a modest doc fee and government charges, the itemization is clean. If it is much larger, ask for the line-by-line breakdown rather than assuming. ## Should you lock the out-the-door price before discussing the monthly payment? Always confirm the OTD price in writing first. This is the most common place buyers lose money without noticing: if you negotiate around the monthly payment instead of the total, the payment can be held steady while the total you pay rises, usually by stretching the loan term. The monthly number fits; the amount you actually pay grew. Agree on the full out-the-door number, in writing, and treat financing as a separate conversation about rate and term. And know that the number is only firm once it is in a signed, itemized agreement: once you sign at a dealership the sale is generally final, because there is no federal three-day cooling-off right to cancel a car bought at a dealership. That is exactly why the out-the-door number has to be right before the pen touches paper. ## Where LetYouKnow fits Every piece of advice above is really a workaround for the same root cause: in the traditional model, the complete number is the last thing you learn, revealed at the sales desk after the fees and add-ons have been stacked on. LetYouKnow changes the order. You set your own price as a single Bid, and that Bid already includes all dealer and platform fees; only government fees (tax, title and registration) are then added to reach the out-the-door total. There is no separate add-on round at the sales desk. If your Bid is accepted, your Bid becomes the locked-in price and already includes dealer and platform fees. You still complete financing, government fees and delivery with the dealer, and before signing you confirm the final paperwork reflects your accepted Bid. By Boris Zhukov, CEO of LetYouKnow, Inc. and economist with a PhD from NC State. ## Sources and notes - What out-the-door price means: the FTC describes it as the total price of the car, before financing, including taxes and fees, and advises getting that figure in writing before discussing financing (U.S. Federal Trade Commission, Financing or Leasing a Car). - No federal three-day cooling-off right on a dealership car purchase: the FTC's Cooling-Off Rule gives a three-business-day cancellation right only for certain sales away from the seller's permanent place of business; a sale completed at a dealer's permanent location is not covered. Some state laws and dealer return policies may add rights (FTC Cooling-Off Rule, 16 CFR Part 429). - How buyers lose track of the total: the FTC's 2020 Auto Buyer Study found add-ons were often introduced late and that focusing on the monthly payment can obscure total cost. The CFPB advises comparing the APR, loan length and amount financed, not just the payment. - Monroney sticker / destination charge (15 U.S.C. 1232): federal law requires the window sticker to show the base price, factory options, the destination charge and a combined total separately; the destination charge is already included in the total sticker price (Cornell Law / U.S. Code). - LetYouKnow platform facts: the buyer sets the price with one Bid and gets an instant result. If the Bid is accepted, the vehicle is reserved, the dealership is revealed and the Bid becomes the locked-in price. The Bid includes all dealer and platform fees; government fees, such as tax, title and registration, are added separately to reach the out-the-door total. ## Frequently asked questions ### Why is it so hard to just get the out-the-door price? Because the traditional sales process often rewards quoting a low headline number, such as the online price or monthly payment, and revealing the full total later, when the buyer is further into the process. The out-the-door total is harder to dodge once it is in writing, so the conversation tends to stay on a single attractive figure. The fix: ask for the complete itemized out-the-door total in writing before you discuss trade-in or financing, and compare it across two or three dealers. ### How do you get a simple out-the-door price from a dealer? Ask for it in writing and be specific. Request an itemized out-the-door quote for the exact vehicle, using the VIN if available. The quote should include the selling price, doc fee, any dealer add-ons, destination charge and state or local tax, title and registration fees. Ask whether the destination charge is already included so it is not counted twice. Email works well because it creates a record. Ask for the out-the-door figure before discussing a trade-in or financing, and compare the same itemized total across two or three dealers. ### Why did the dealer refuse to quote the OTD price? There can be several reasons: they may be missing tax or registration details, following a policy of quoting only in person, unsure about incentive eligibility or reluctant to commit to a number before the full deal is settled. You usually cannot tell which reason applies from one interaction, so ask what information is missing. Either way, a dealer willing to put a complete, itemized out-the-door price in writing up front makes the rest of the process easier and is worth prioritizing. ### What should my out-the-door price be versus the price posted online? Often higher, but check what the advertised price already includes. In practice, an advertised price may not include the doc fee or dealer add-ons, or even the destination charge, and your state's tax, title and registration are added to reach the OTD. Ask whether destination is already in the advertised price so it is not counted twice. If the OTD comes in well above the advertised price, ask for the itemization rather than assuming the gap is all add-ons. Separate the government charges and destination from any dealer add-ons, which you can decline. ### Should I lock the out-the-door price before discussing the monthly payment? Get the out-the-door price first, in writing, then treat financing as a separate question. If you negotiate around the monthly payment instead, a longer loan term can shrink the visible monthly impact of rolled-in add-ons or a higher rate. The payment looks stable while the total you pay rises. So confirm the OTD total, then compare the loan on its own terms: APR, length and total interest. It matters because there is generally no federal three-day right to cancel a car bought at a dealership, though some state laws and dealer return policies add rights. --- # Can a Dealer Change the Price After You Agree? Canonical: https://letyouknow.com/guides/price-locked-after-agreement/ ## Can a dealer change the price after you agree? Before you sign, often yes. A spoken price, a text or an internet price screenshot is usually not a final, binding contract, so a dealer can still change the number at the sales desk, often by adding mandatory fees, a price addendum or already installed add-ons. Once you both sign a final, unconditional buyer's order, the price is binding and the dealer cannot raise it on its own. The thing that protects you is the signed, final document, not the handshake, so the practical goal is getting the full out-the-door figure in writing before you commit. A number that felt agreed was never actually final until it is signed. ## Why is the price higher than we agreed on? Often the earlier figure left something out, or it was an estimate rather than the final total. Common reasons include mandatory dealer fees added at the sales desk that were never quoted; preinstalled add-ons presented as nonremovable; a monthly-payment-focused negotiation where the total climbs while the payment looks the same because the loan term is extended; or a genuinely different starting point, a vehicle-only price or estimated tax that was never the final out-the-door number. These are real, documented practices. Presenting an add-on as required when it is not, or adding it without your agreement, can raise issues under the FTC Act and state consumer protection law. The practical defense is the same: ask for an itemized out-the-door breakdown and make sure every fee you will pay is written into the contract before you sign. ## Is the price on the contract a locked-in price? Usually, once you both sign a final, unconditional buyer's order, that price is binding. That is precisely why what you sign has to match what you agreed to, line for line. Read every entry, confirm the out-the-door total equals your written quote and ask to remove any add-on you did not request. One important caveat: a signed order is not always final. In spot delivery (conditional financing), you may sign and drive the car home before the loan is actually approved. If the financing falls through, the dealer can ask you to accept different terms. You are not required to agree: you can walk away and get your down payment back. And once a dealership sale is final, it generally stays final: there is no federal three-day cooling-off right to cancel a car bought at a dealership, which is exactly why the number has to be right before the pen touches paper. ## What should you do up front so the dealer cannot change the deal? - Get the complete out-the-door price in writing, itemized, ideally by email so there is a record. - Negotiate the OTD total, not the monthly payment, so fees cannot hide inside a longer loan term. - Ask about any add-on you did not request. Already installed does not by itself make a product legally required. - Confirm the signing paperwork matches your written quote, line by line, and that financing is final. These steps work, but they put the work on you to review several moving parts, vehicle price, fees, financing and trade-in, and catch any change from your written quote. ## How LetYouKnow handles price after you agree With LetYouKnow, you bid your own price and get an instant result. If your Bid is accepted, the vehicle is reserved, the dealership is revealed and your Bid becomes the locked-in price. The final purchase is still completed directly with the dealer. Two things make the Bid amount dependable. All dealer and platform fees are already inside your Bid; only government fees, taxes, title and registration, are added separately, so the dealer and platform amount is not reopened for a separate fee round. And when a match is made, the dealer is revealed and that car is reserved at that figure. In a traditional sale with an addendum, you negotiate down from a dealer-added amount. On LetYouKnow you set the price up front, so no addendum line is added after the fact. A locked price is one neither side can move after you agree; on LetYouKnow that is the matched Bid amount. By Boris Zhukov, CEO of LetYouKnow, Inc. and economist with a PhD from NC State. ## Sources and notes - FTC enforcement on deceptive pricing. Under its Section 5 authority over unfair and deceptive acts, the Federal Trade Commission can address bait-and-switch pricing and add-ons billed without consent; the underlying conduct remains addressable under the FTC Act and state law. - Conditional financing / spot delivery. When a buyer takes a car home before financing is finalized, the dealer may later require different terms such as a higher rate, a longer term or a larger down payment; the buyer is not required to accept and can walk away with a refund of the down payment (Consumer Financial Protection Bureau, Ask CFPB #831). - Electronic records. Under the federal E-SIGN Act, a contract or signature may not be denied legal effect solely because it is in electronic form, so a detailed email or text can carry legal weight, depending on its terms, the sender's authority, the dealer's acceptance and state law (15 U.S.C. 7001). - No federal three-day cooling-off right on a dealership car purchase: the FTC's Cooling-Off Rule gives a three-business-day cancellation right only for sales made at a place other than the seller's permanent place of business; a sale at a dealer's fixed permanent location is not covered (FTC Cooling-Off Rule, 16 CFR Part 429). - LetYouKnow platform facts: the buyer sets their price with one Bid and gets an instant result. If the Bid is accepted, the vehicle is reserved, the dealership is revealed and the Bid becomes the locked-in price. The Bid includes all dealer and platform fees; government fees, such as tax, title and registration, are added separately. ## Frequently asked questions ### Can a dealer legally change the price after we agreed? Before you sign, often yes. A verbal or texted quote is usually not a final contract, so a dealer can still change the number, sometimes by adding fees or add-ons at the sales desk. Once you both sign a final, unconditional buyer's order, that price is binding and the dealer cannot raise it on its own. Confirm the deal is truly final, though: a signed order can still be conditional on financing approval. The protection is the signed, final document, not the handshake, so get the full out-the-door figure in writing before you commit. ### Why is the price higher than we agreed on? The earlier figure may have left something out, such as a mandatory dealer fee, a price addendum or preinstalled add-ons, or it may have been a vehicle-only or estimated number rather than the final out-the-door total. A longer loan term can also keep the monthly payment looking stable while the total rises. Ask for an itemized out-the-door breakdown and compare it line by line with your earlier written quote before you sign. ### Is the price on the contract a locked-in price? Usually. Once you both sign a final, unconditional buyer's order, that price is binding, which is why you should confirm what you sign matches what you agreed to, line for line. Read every entry, confirm the out-the-door total equals your written quote and ask to remove any add-on you did not request. One caveat: if the purchase is on conditional financing (spot delivery), the deal may not be final until the loan is approved, so confirm financing is done. Once a dealership sale is final, it generally stays final: there is no federal three-day right to cancel it. ### What should I do up front so the dealer cannot change the deal? Get the complete out-the-door price in writing, itemized, before you go in, by email so there is a record. Negotiate the OTD total rather than the monthly payment, so fees cannot hide inside a longer loan term, and ask to remove any add-on you did not request. On LetYouKnow it works differently: you set the price with your Bid, all dealer and platform fees are already inside that figure and only government fees are added separately. ### How do I lock the out-the-door price before signing? In a traditional sale, ask for a written buyer's order or email quote that lists the full out-the-door total with every fee itemized. Before you sign, compare the final paperwork line by line against that written total. With LetYouKnow, you bid your own price and get an instant result. If your Bid is accepted, the vehicle is reserved, the dealership is revealed and your Bid becomes the locked-in price. Your Bid already includes dealer and platform fees; only government fees, such as tax, title and registration, are added separately. --- # A Dealer Added Mandatory Fees After We Agreed on a Price. Can I Walk Away? Canonical: https://letyouknow.com/guides/your-rights-against-forced-dealer-fees/ ## A dealer added mandatory fees after we agreed on a price. Can I walk away? If you have not signed a final, unconditional contract, yes. A spoken price, a text or an emailed quote is usually not a binding contract, so if the dealer stacks new mandatory fees onto the number you agreed to at the sales desk, you are free to decline the changed deal and leave. You are not obligated to accept charges that appear after the price you agreed to. Once you sign a final, unconditional order, it is a different situation. A signed order is binding, and there is no federal three-day right to cancel a car bought at a dealership. That is exactly why the moment to catch surprise fees is before you sign, which starts with getting the full out-the-door price in writing. ## Are dealer add-on fees legal? It depends on the fee and how it is presented. Some charges are legitimate and expected: the manufacturer's destination charge and your state's tax, title and registration are set outside the dealer and belong in any out-the-door total. A documentation (doc) fee is generally allowed, and several states cap how much a dealer can charge for it. The problem is not that fees exist. It is when an optional add-on is presented as mandatory, or a charge is added without your consent. Presenting an optional product as required, or billing for something you did not agree to, can raise issues under the FTC Act and state consumer protection law. The practical test is to ask, for each line, what it is and whether it is genuinely required, then decline anything optional you did not request. ## What are junk fees on a car? Junk fees is an informal term for padded, low-value charges added on top of the price, often with official-sounding names, that mostly raise dealer profit rather than reflect a real, necessary cost. Common examples include paint or fabric protection, nitrogen-filled tires, VIN etching and dealer prep charges for routine work. These are usually optional even when presented as standard, and many are negotiable or removable. It is worth drawing the line clearly: the manufacturer's destination charge and your state's tax, title and registration are not junk fees. Those are set by the manufacturer and the government and belong in a normal out-the-door total. The charges to question are the dealer-added optional ones. ## How do you get a dealer to remove fees? - Ask for the itemized out-the-door breakdown and read it line by line. - For each charge, ask what it is and whether it is required; decline any optional add-on you did not request. - Hold the deal to the written out-the-door total you were quoted before you arrived. - If a dealer will not remove an optional charge, be ready to walk and take the same written request elsewhere. The leverage comes from a written quote and a willingness to compare the same car's out-the-door total across dealers. A number in writing is far harder for a dealer to walk back than one agreed verbally, and the option to leave is what keeps optional charges optional. ## How LetYouKnow prevents surprise fees Every step above is a defense against the same root problem: in the traditional model, fees are introduced at the end, at the sales desk, after you feel committed. LetYouKnow changes the order so there is no separate add-on round. You set the price with a single Bid, and that Bid already includes all dealer and platform fees; only government fees, tax, title and registration, are added separately. Because the dealer and platform amount is fixed inside your Bid, there is no late-stage fee round to negotiate. If your Bid is accepted, it becomes the locked-in price and the vehicle is reserved. You still complete government fees, financing and delivery with the dealer, and before signing you confirm the final paperwork matches your accepted Bid. By Leslie D. McGehee, Chief Administrative Officer of LetYouKnow, Inc. ## Sources and notes - A signed, unconditional contract is binding on both sides; before you sign, a spoken or texted quote is generally not a final contract, so either side can still change terms. The protection is the signed document, not the verbal agreement. - FTC authority over unfair and deceptive practices. Under Section 5 of the FTC Act, the Federal Trade Commission can act against deceptive pricing, including presenting an optional add-on as mandatory or charging for it without the buyer's consent (Federal Trade Commission). - State disclosure and fee rules vary. Documentation (doc) fees and which charges must be disclosed or are capped are governed by state law, so what is permitted differs by state (state motor vehicle and consumer protection agencies). - No federal three-day cooling-off right on a dealership car purchase: the FTC's Cooling-Off Rule gives a three-business-day cancellation right only for sales made away from the seller's permanent place of business; a sale at a dealer's fixed location is not covered (FTC Cooling-Off Rule, 16 CFR Part 429). - LetYouKnow platform facts: the buyer sets their price with one Bid. If the Bid is accepted, the vehicle is reserved, the dealership is revealed and the Bid becomes the locked-in price. The Bid already includes all dealer and platform fees; only government fees, such as tax, title and registration, are added separately. ## Frequently asked questions ### A dealer added mandatory fees after we agreed on a price. Can I walk away? If you have not signed a final, unconditional contract, yes, you can walk away. A verbal or texted price is usually not a binding contract, so if the dealer adds fees you did not agree to at the sales desk, you are free to decline the changed deal and leave. You are not obligated to accept new charges that appear after the number you agreed to. If you have already signed, it is harder: a signed, unconditional order is binding and there is no federal three-day right to cancel a car bought at a dealership. That is why the time to catch surprise fees is before you sign, by getting the full out-the-door price in writing first. ### Are dealer add-on fees legal? It depends on the fee and how it is presented. Some charges are legitimate and expected, such as the manufacturer destination charge and government tax, title and registration. A documentation fee is generally allowed, and some states cap it. The problem is not that fees exist; it is when an optional add-on is presented as mandatory, or a charge is added without your consent. Presenting an optional product as required, or charging for something you did not agree to, can raise issues under the FTC Act and state consumer protection law. The practical test is simple: ask what each line item is and whether it is required, and ask to remove anything optional you did not request. ### What are junk fees on a car? Junk fees is an informal term for padded or low-value charges added on top of the price, often with official-sounding names, that mostly increase dealer profit rather than reflect a real, necessary cost. Common examples include paint or fabric protection, nitrogen-filled tires, VIN etching, and dealer prep charges for work that is routine. These are usually optional even when they are presented as standard, and many are negotiable or removable. The manufacturer destination charge and your state's tax, title and registration are not junk fees: those are set by the manufacturer and the government and are part of a normal out-the-door total. ### How do I get a dealer to remove fees? Ask for an itemized out-the-door breakdown and go through it line by line. For each charge, ask what it is and whether it is required. Decline any optional add-on you did not request and ask that it be removed before you sign. Because a written quote is hard for a dealer to walk back, having the full out-the-door total in writing up front gives you a reference to hold the deal to. If a dealer will not remove an optional charge, you can walk away and take the same written request to another dealer. The leverage comes from being willing to compare the same car's out-the-door total across dealers. ### How does LetYouKnow prevent surprise fees? On LetYouKnow you set the price with your Bid, and that Bid already includes all dealer and platform fees. Only government fees, such as tax, title and registration, are added separately. Because the dealer and platform amount is fixed inside your Bid, there is no separate add-on round at the sales desk where surprise fees are usually introduced. If your Bid is accepted, it becomes the locked-in price and the vehicle is reserved. You still complete government fees, financing and delivery with the dealer, and before signing you confirm the final paperwork matches your accepted Bid. --- # How Does LetYouKnow Compare to Other Car-Buying Sites? Canonical: https://letyouknow.com/compare/ Car-buying sites approach the process differently. Edmunds focuses on research, pricing and inventory. CarGurus evaluates listings with Deal Ratings. TrueCar provides upfront price offers on dealer inventory. The Costco Auto Program offers members prearranged pricing through Approved Dealers. Carvana lists its inventory at nonnegotiable prices. LetYouKnow takes a different approach by letting you Bid Your Own Price on a brand new car and get an instant result. If your Bid is accepted, the car is reserved and your Bid becomes your locked-in price with all dealer and platform fees included. Applicable government fees are added separately. If your Bid is not accepted, there is no charge and you can adjust your Bid and/or change your new car options and Bid again. ## LetYouKnow vs. CarGurus: What's the Difference? CarGurus and LetYouKnow approach the brand new car purchase from different starting points. CarGurus is a digital automotive marketplace that helps shoppers research cars, compare dealer-listed prices and connect with dealers. LetYouKnow is also a digital automotive marketplace, but it lets you bid your own price on a brand new car and get an instant result. Once you know the car you want and the best price you have found, you can submit a Bid on LetYouKnow. If your Bid is accepted, the new car is reserved and your Bid becomes your locked-in price with all dealer and platform fees included. Only applicable government fees such as sales tax, title, registration and licensing are added separately. Full guide: https://letyouknow.com/compare/letyouknow-vs-cargurus/ ## LetYouKnow vs. Carvana: What's the Difference? Carvana and LetYouKnow use different models. Carvana is an online retailer whose core business is buying and selling used cars from its own inventory. It is the seller, sets nonnegotiable prices and offers delivery or pickup. By June 2026, Carvana had also acquired seven Stellantis franchise dealerships and expanded into new car sales, although used cars remained its core business. LetYouKnow is a digital automotive marketplace for brand new cars. Instead of accepting a price set by the seller, you Bid Your Own Price and get an instant result. If your Bid is accepted, the new car is reserved and your Bid becomes your locked-in price with all dealer and platform fees included. Only applicable government fees such as sales tax, title, registration and licensing are added separately. If your Bid is not accepted, there is no charge and you can adjust your Bid and/or change your new car options and Bid again. Full guide: https://letyouknow.com/compare/letyouknow-vs-carvana/ ## LetYouKnow vs. Costco Auto Program: What's the Difference? The Costco Auto Program and LetYouKnow use different approaches to car buying. The Costco Auto Program requires a paid annual Costco membership and is operated by Affinity Auto Programs, Inc. It connects members with participating Approved Dealers that offer prearranged pricing on new and used cars. Costco does not sell the car or negotiate the price. LetYouKnow does not require a paid membership and focuses exclusively on brand new cars. Configure the new car you want, submit your Bid and get an instant result. If your Bid is accepted, the matched dealership is revealed and the car is reserved for 10 calendar days. Your Bid becomes your locked-in price with all dealer and platform fees included. Only applicable government fees such as sales tax, title, registration and licensing are added separately. If your Bid is not accepted, there is no charge and you can adjust your Bid and/or change your new car options and Bid again. Full guide: https://letyouknow.com/compare/letyouknow-vs-costco/ ## LetYouKnow vs. Edmunds: What's the Difference? Edmunds helps you research and compare cars. LetYouKnow lets you use that research to bid your own lower price on a brand new car. Edmunds is an automotive research and shopping platform for new and used cars. It helps shoppers compare models, read reviews and ratings, evaluate prices and listings, explore financing prequalification and estimate trade-in value. Edmunds connects shoppers with dealers to complete the purchase. LetYouKnow focuses on the price step for brand new cars. Choose the new car you want, submit a Bid and get an instant result. If your Bid is accepted, the car is reserved for 10 calendar days, the matched dealership is revealed and your Bid is locked in and includes all dealer and platform fees. Applicable government fees are added separately. If your Bid is not accepted, there is no charge and you can adjust your Bid and/or change your new car options and Bid again. Buyers and matched dealerships remain anonymous until the buyer's Bid is accepted and the new car is reserved. Full guide: https://letyouknow.com/compare/letyouknow-vs-edmunds/ ## LetYouKnow vs. TrueCar: What's the Difference? The difference is TrueCar gives shoppers dealer offers and LetYouKnow lets shoppers bid their own price on a brand new car. TrueCar provides individualized offers from its participating Certified Dealers. Under its 2026 dealer program standards, those offers are lower than the dealer's lowest publicly advertised price. TrueCar says mandatory dealer fees and add-ons are included and identified in the price shown to shoppers. The dealer remains the seller. With LetYouKnow, you find the lowest price you can find, then bid a lower price on the brand new car you want and get an instant result. If your Bid is accepted, the new car is reserved for 10 calendar days, the matched dealership is revealed and your Bid price is locked-in with all dealer and platform fees included. Applicable government fees are added separately. If your Bid is not accepted, there is no charge and you can adjust your Bid and/or change your new car options and Bid again. Buyers and matched dealerships remain anonymous until the buyer's Bid is accepted and the new car is reserved. The main difference is who starts the price. TrueCar starts with a dealer offer. LetYouKnow starts with your Bid. Full guide: https://letyouknow.com/compare/letyouknow-vs-truecar/ --- # LetYouKnow vs. CarGurus: What's the Difference? Canonical: https://letyouknow.com/compare/letyouknow-vs-cargurus/ During my years owning and operating new car stores, I saw how much research buyers did before they ever walked into a dealership. Tools like CarGurus can help shoppers compare listings, research prices and get a sense of the local market. Once you know the brand new car you want to buy and the best price you found in your research, you can use LetYouKnow to bid lower than the best price you found and get an instant result. If your Bid is accepted, your new car is reserved at your accepted Bid price. If your Bid is not accepted, you are not charged and can adjust your Bid and/or change options and bid again. ## How are LetYouKnow and CarGurus different? The difference comes down to where the price starts. On CarGurus, a dealer lists it and you evaluate it. With LetYouKnow, you propose the price you want to pay. CarGurus is a digital automotive marketplace. It aggregates dealer listings from a large network, rates each against its Instant Market Value estimate (its Deal Rating) and adds research, financing prequalification, delivery on eligible cars and online deal tools that connect you with a dealer, who remains the seller. It is strong at helping you discover the right car and judge whether a listing's price looks fair. LetYouKnow starts with your price. Instead of evaluating a dealer's listing, you set your own price as a single Bid and get an instant result. If your Bid is accepted, your new car is reserved at your accepted Bid price. If your Bid is not accepted, you are not charged and can adjust your Bid and try again. When your Bid is accepted, the price you set already includes all dealer and platform fees. Only applicable government charges such as sales tax, title, registration and any other government fees are added separately to reach your out-the-door total. The final sale is completed with a participating dealer located within the search radius that you chose. ## How does CarGurus help you buy a car? CarGurus helps shoppers research and compare cars before contacting a dealer. It shows dealer listings so you can review what is available, compare cars and evaluate pricing. One of its signature pricing tools is its Deal Rating, which uses Instant Market Value (IMV) to help determine whether a car's price appears to be a fair, good or great deal, or if it is overpriced. CarGurus says Instant Market Value is an estimated fair retail price based on comparable current and previous listings in the shopper's market and is intended as pricing guidance, not an official appraisal or guarantee. CarGurus is not just a place to browse listings. Its current platform also helps shoppers take some next steps before contacting or visiting a dealer. Finance in Advance lets eligible shoppers pre-qualify and see personalized financing rates. Digital Deal lets shoppers start parts of the purchase online for eligible listings, such as financing, appointment setting, delivery scheduling and, when available, a reservation deposit. The Location and delivery filter can surface eligible listings that participating dealers may ship to you, depending on the listing, location and dealer terms. CarGurus helps you move further into the buying process, but it still connects you with the dealer to finish the transaction. The dealer remains the seller, and financing and the final purchase are completed through the dealer or lender, not fully on CarGurus. ## How does LetYouKnow approach the same purchase? LetYouKnow empowers you to bid your own lower price on a brand new car. You build the car you want, set your own price and get an instant result. If your Bid is accepted, the new car is reserved at your accepted Bid price with a participating dealership within the search radius you selected. LetYouKnow is designed for price transparency. All dealer and platform fees are already inside your Bid. Government fees such as sales tax, title, registration and licensing are not included in your Bid and are typically paid as part of the final purchase with the dealership. You enter payment information when you submit your Bid. If your Bid is accepted, the $799 service and reservation fee serves as a prepayment. It is included in your accepted Bid price and is not added on top. If your Bid is not accepted, you are not charged and can adjust your Bid and/or change options and bid again. Participating dealerships do not see your identity or contact information until your Bid is accepted. ## Can I use CarGurus and LetYouKnow together? Yes and in that order. CarGurus is excellent for the research part of the journey: browsing inventory, comparing trims available nearby, reading Deal Ratings and Instant Market Value, prequalifying for financing, even starting a Digital Deal. If your goal right now is to explore the market and learn what is out there, that is exactly what CarGurus does well. LetYouKnow is built for the price step when you know the car you want and care most about the number. There, submitting a Bid is a different path from choosing among listed prices: you propose the amount, and a participating dealer's threshold decides whether it matches. A practical way to frame the difference is CarGurus can help you decide what car and see where local prices sit; LetYouKnow empowers you to bid your own price for a new car. After more than fourteen years owning and operating new car stores, I see the difference clearly. CarGurus helps you research the market and evaluate dealer-listed prices. LetYouKnow lets you use that research to bid your own lower price on a brand new car and get an instant result. By Michael Glasser, Board Member, LetYouKnow, Inc. and former new car dealership owner and operator with more than fourteen years of dealership experience. ## Sources and notes - What CarGurus is and what it does. CarGurus is a digital automotive platform (Nasdaq: CARG, founded 2006) serving consumers and dealers with inventory, unbiased information, Deal Ratings and tools for buying, financing and selling (CarGurus, About, accessed June 15, 2026). - CarGurus pricing integrity and valuation tools. CarGurus' dealer pricing policy requires displayed prices to be full cash prices available to any shopper and not conditional on dealer financing or a down payment. Its Instant Market Value is a daily, listings-based estimate used as pricing guidance, not a guarantee (CarGurus Dealer Pricing Policy, August 2, 2024; CarGurus Car Values, accessed June 15, 2026). - LetYouKnow platform facts. LetYouKnow is for brand new cars. The buyer submits the price they want to pay as a Bid and gets an instant result. All dealer and platform fees are included in the Bid. Only applicable government fees such as sales tax, title, registration and licensing are added separately. If the Bid is accepted, the $799 service and reservation fee serves as a prepayment included in the accepted Bid price. Buyers stay anonymous until the Bid is accepted. ## Frequently asked questions ### What is the difference between LetYouKnow and CarGurus? They focus on different parts of the new car buying process. CarGurus is a digital automotive marketplace that helps shoppers research, compare and evaluate dealer-listed cars. It gathers listings from a large dealer network, uses its Deal Rating and Instant Market Value estimate to help shoppers gauge whether a listed price looks high or low, and offers tools for research, financing prequalification, delivery and online deal steps that connect the shopper with the dealer, who remains the seller. LetYouKnow works at the price step. You build the brand new car you want, submit the price you want to pay as your Bid and get an instant result. CarGurus is built to help you discover and evaluate cars, compare dealer-listed prices and connect with dealers. LetYouKnow is built to let you bid your own price and get an instant result. ### Does CarGurus tell me the final out-the-door price I'll pay? CarGurus shows a dealer's listed price and rates it against its Instant Market Value estimate. IMV is pricing guidance, not an appraisal or guarantee. Even so, applicable taxes, title, registration, lawful fees and any selected products are completed in the transaction, so confirm the final itemized figure with the dealer. With LetYouKnow the amount you Bid already includes all dealer and platform fees. Only applicable government fees such as sales tax, title, registration and licensing are added separately to reach your out-the-door total. ### Does LetYouKnow charge a fee to use? You enter your payment information when you submit a Bid, but you are charged only if your Bid is accepted, and that prepayment is then applied toward your price, not added on top. If your Bid is accepted, the $799 service and reservation fee serves as a prepayment. It is included in your accepted Bid price and is not added on top. If your Bid is not accepted, you are not charged. CarGurus, by contrast, is a marketplace you use to browse listings, research and connect with dealers. The new car purchase and any financing are completed with the dealer and lender. ### Do I still have to negotiate with a dealer if I use LetYouKnow? LetYouKnow is designed to remove the traditional back and forth over new car prices. Set your own price as a single Bid and the matching engine works to match you to a dealership in our dealer network and within your search radius. You do not pay more than your accepted Bid for the new car and the included dealer and platform fees. The purchase is completed with the revealed dealer, with government charges, financing, trade-in and any options handled in the usual way. On a marketplace like CarGurus you choose among dealer-listed prices and connect with the dealer to continue. ### Can I use CarGurus and LetYouKnow together? Yes, they work great together. CarGurus can help you research cars, compare dealer-listed prices and get a sense of the market. Once you know the brand new car you want and the best price you found, LetYouKnow lets you submit a lower Bid and get an instant result. If your Bid is accepted, the new car is reserved at your accepted Bid price. If your Bid is not accepted, you are not charged and can adjust your Bid and/or change options and bid again. --- # LetYouKnow vs. Carvana: What's the Difference? Canonical: https://letyouknow.com/compare/letyouknow-vs-carvana/ After years owning and operating new car stores, I watched online retail change what buyers expect. Carvana made it normal to browse, finance and take delivery of a used car entirely online, at a set price with no haggling. That is a genuinely different experience from the traditional showroom. LetYouKnow is different again, and for a different purchase: it is built for brand new cars, and instead of accepting a set price, you bid the price you want to pay and get an instant result. ## How are LetYouKnow and Carvana different? The difference starts with what you are buying and who sets the price. Carvana is an online retailer that sells its own, mostly used, inventory at set, no-haggle prices and acts as the seller. You choose from Carvana's listed cars and either accept the price or pick a different car. LetYouKnow is for brand new cars, and it starts with your price. Instead of evaluating a fixed listing, you set your own price as a single Bid and get an instant result. If your Bid is accepted, the new car is reserved at your accepted Bid price with a participating dealership within the search radius you selected. If your Bid is not accepted, you are not charged and can adjust your Bid and try again. When your Bid is accepted, the price you set already includes all dealer and platform fees. Only applicable government charges such as sales tax, title, registration and licensing are added separately to reach your out-the-door total. ## How does Carvana help you buy a car? Carvana is built to let you complete a used car purchase online from start to finish. You browse its inventory, see a set no-haggle price on each car, arrange financing or use your own, and choose home delivery or pickup at one of its car vending machines. Because Carvana owns and sells the cars, it is the seller and the transaction is completed directly with Carvana, often with a return period on eligible purchases. For a used car shopper who values a simple, fixed price and a fully online process, that is a strong, convenient model. Carvana also buys cars from consumers, so it can be a place to sell or trade a car you already own, not just buy one. The key thing to keep in mind is scope: Carvana's model is centered on used vehicles it sells at a set price. It is not where you configure and order a brand new car to your chosen trim, color and options. ## How does LetYouKnow approach the same purchase? LetYouKnow empowers you to bid your own price on a brand new car. You build the new car you want, set your own price and get an instant result. If your Bid is accepted, the new car is reserved at your accepted Bid price with a participating dealership within the search radius you selected. LetYouKnow is designed for price transparency on a new car. All dealer and platform fees are already inside your Bid. Government fees such as sales tax, title, registration and licensing are not included in your Bid and are typically paid as part of the final purchase with the dealership. You enter payment information when you submit your Bid. If your Bid is accepted, the $799 service and reservation fee serves as a prepayment. It is included in your accepted Bid price and is not added on top. If your Bid is not accepted, you are not charged and can adjust your Bid and/or change options and bid again. Participating dealerships do not see your identity or contact information until your Bid is accepted. ## Can I use Carvana and LetYouKnow together? They fit different points in your plans. If you want a used car bought entirely online with a fixed price and home delivery, Carvana is built for exactly that. If your next car is a brand new one and the price is what you care about most, LetYouKnow lets you bid your own price and get an instant result. There is also a natural way to use them in sequence. Carvana can be a place to sell or trade the car you already own, and LetYouKnow can be where you bid your price on the brand new car you want next. One helps you move on from your current car; the other helps you set the price on your new one. By Michael Glasser, Board Member, LetYouKnow, Inc. and former new car dealership owner and operator with more than fourteen years of dealership experience. ## Sources and notes - What Carvana is and what it does. Carvana is an online used vehicle retailer (NYSE: CVNA, founded 2012) that lets consumers browse, finance, buy and take delivery of used cars online, with home delivery or pickup at its car vending machines, and also buys cars from consumers (Carvana, About, accessed June 15, 2026). - Carvana as the seller and its no-haggle model. Carvana sells its own used inventory at set, no-haggle prices and completes the sale directly with the buyer, including a return period on eligible purchases (Carvana, How It Works, accessed June 15, 2026). - LetYouKnow platform facts. LetYouKnow is for brand new cars. The buyer submits the price they want to pay as a Bid and gets an instant result. All dealer and platform fees are included in the Bid. Only applicable government fees such as sales tax, title, registration and licensing are added separately. If the Bid is accepted, the $799 service and reservation fee serves as a prepayment included in the accepted Bid price. Buyers stay anonymous until the Bid is accepted. ## Frequently asked questions ### What is the difference between LetYouKnow and Carvana? They serve different purchases. Carvana is an online retailer that sells its own, mostly used, inventory at set, no-haggle prices, handling browsing, financing, purchase and delivery online, and it acts as the seller. You choose from Carvana's listed cars at the price Carvana sets. LetYouKnow is for brand new cars, and instead of accepting a set price, you submit the price you want to pay as a Bid and get an instant result. Carvana is built around a fixed price you accept or decline; LetYouKnow is built around a price you propose. ### Does Carvana sell new cars? Carvana's marketplace is centered on used vehicles that it sells directly as the retailer. If your goal is a brand new car built to the trim, color and options you want, that is a different purchase from choosing among used listings. LetYouKnow is specifically for brand new cars: you build the new car you want, submit your Bid and, if it is accepted, the new car is reserved at your accepted Bid price with a participating dealership within the search radius you selected. ### Is Carvana's price negotiable? Carvana uses a no-haggle model: the listed price is the price, which many buyers value for its simplicity. You accept the set price or choose a different car. LetYouKnow works the other way for new cars. Rather than accept a set price, you set your own price as a single Bid and get an instant result. If your Bid is accepted, that is your locked-in price; if not, you are not charged and can adjust your Bid and try again. ### Does LetYouKnow charge a fee to use? You enter payment information when you submit a Bid, but you are charged only if your Bid is accepted, and that prepayment is applied toward your price, not added on top. If your Bid is accepted, the $799 service and reservation fee serves as a prepayment included in your accepted Bid price. If your Bid is not accepted, you are not charged. Carvana, by contrast, is the retailer selling the car; its price and any financing are completed directly with Carvana. ### Can I use Carvana and LetYouKnow together? They fit different needs. If you want a used car bought entirely online with a set price and home delivery, Carvana is built for that. If you want a brand new car and care most about the price, LetYouKnow lets you bid your own price and get an instant result. You might also use Carvana to sell or trade a car you already own, then use LetYouKnow to bid your price on the brand new car you want next. --- # LetYouKnow vs. the Costco Auto Program: What's the Difference? Canonical: https://letyouknow.com/compare/letyouknow-vs-costco/ In my years owning and operating new car stores, I saw plenty of buyers arrive with a Costco Auto Program certificate in hand. For members, it is a straightforward way to get a prearranged price from a participating dealership without haggling at the desk. LetYouKnow takes a different approach to the same goal of a fair price on a brand new car: instead of receiving a price arranged for you, you bid the price you want to pay and get an instant result. ## How are LetYouKnow and the Costco Auto Program different? The difference is who sets the number. The Costco Auto Program is a members-only car buying service that connects you with participating dealerships offering a prearranged member price on eligible new and used vehicles. You see a price arranged in advance and complete the purchase with the dealership, which remains the seller. LetYouKnow starts with your price on a brand new car. Instead of receiving a preset figure, you set your own price as a single Bid and get an instant result. If your Bid is accepted, the new car is reserved at your accepted Bid price with a participating dealership within the search radius you selected. If your Bid is not accepted, you are not charged and can adjust your Bid and try again. When your Bid is accepted, the price you set already includes all dealer and platform fees. Only applicable government charges such as sales tax, title, registration and licensing are added separately to reach your out-the-door total. ## How does the Costco Auto Program help you buy a car? The Costco Auto Program, administered by Affinity Auto Programs, Inc., is a members-only benefit. As a Costco member, you request pricing through the program, which connects you with a participating dealership in its network. You then work with an authorized dealer contact who shows you the prearranged member price on eligible vehicles, so you are not negotiating the base price from scratch at the desk. For a member who wants a simpler experience and a price arranged in advance, that is a real convenience. The program is designed to reduce the back and forth on the vehicle price by setting member pricing ahead of time. The important detail is that the program connects you with a dealership and the purchase is completed there. The dealership remains the seller, so applicable taxes, government fees, financing and any add-ons are handled in that transaction, and it is worth confirming the full itemized out-the-door figure with the dealer. ## How does LetYouKnow approach the same purchase? LetYouKnow empowers you to bid your own price on a brand new car. You build the new car you want, set your own price and get an instant result. If your Bid is accepted, the new car is reserved at your accepted Bid price with a participating dealership within the search radius you selected. LetYouKnow is designed for price transparency on a new car. All dealer and platform fees are already inside your Bid. Government fees such as sales tax, title, registration and licensing are not included in your Bid and are typically paid as part of the final purchase with the dealership. You enter payment information when you submit your Bid. If your Bid is accepted, the $799 service and reservation fee serves as a prepayment. It is included in your accepted Bid price and is not added on top. If your Bid is not accepted, you are not charged and can adjust your Bid and/or change options and bid again. Participating dealerships do not see your identity or contact information until your Bid is accepted. ## Can I use the Costco Auto Program and LetYouKnow together? Yes, and it can be a useful comparison. If you are a Costco member, the program can give you a prearranged member price on the car you want as one reference point. Knowing that number is helpful context before you decide what price you want to pay. Then, on LetYouKnow, you can bid your own price on that brand new car and get an instant result. Rather than accept a price arranged for you, you propose the amount, and a participating dealer's threshold decides whether it matches. After more than fourteen years in dealerships, I see the difference plainly: the Costco program arranges a price for you; LetYouKnow lets you name yours and find out instantly whether it is accepted. By Michael Glasser, Board Member, LetYouKnow, Inc. and former new car dealership owner and operator with more than fourteen years of dealership experience. ## Sources and notes - What the Costco Auto Program is. The Costco Auto Program is a members-only car buying service, administered by Affinity Auto Programs, Inc., that connects Costco members with a network of participating dealerships offering prearranged member pricing on select new and used vehicles (Costco Auto Program, About, accessed June 15, 2026). - How Costco member pricing works. A member requests pricing, is connected to a participating dealership and works with an authorized dealer contact to see the prearranged member price on eligible vehicles; the purchase is completed with the dealership, which remains the seller (Costco Auto Program, How It Works, accessed June 15, 2026). - LetYouKnow platform facts. LetYouKnow is for brand new cars. The buyer submits the price they want to pay as a Bid and gets an instant result. All dealer and platform fees are included in the Bid. Only applicable government fees such as sales tax, title, registration and licensing are added separately. If the Bid is accepted, the $799 service and reservation fee serves as a prepayment included in the accepted Bid price. Buyers stay anonymous until the Bid is accepted. ## Frequently asked questions ### What is the difference between LetYouKnow and the Costco Auto Program? They set the price in opposite ways. The Costco Auto Program connects members with participating dealerships that offer a prearranged member price on eligible vehicles. You see a price that the program and dealer have set in advance and then complete the purchase with the dealership. LetYouKnow does not hand you a preset price. You submit the price you want to pay as a Bid and get an instant result. The Costco program is built around a price arranged for you; LetYouKnow is built around a price you propose. ### Do I need a membership to use LetYouKnow? The Costco Auto Program is a members-only benefit, so you generally need a Costco membership to access its prearranged pricing. LetYouKnow is a car buying platform where you build the new car you want and bid your own price. It is centered on the Bid you submit and the instant result you get, not on a membership tier. ### Does the Costco price include all fees? The Costco Auto Program presents a prearranged member price, but the final purchase is completed with the dealership, so applicable taxes, title, registration, lawful fees and any products you select are handled in that transaction. Confirm the final itemized out-the-door figure with the dealer. With LetYouKnow the amount you Bid already includes all dealer and platform fees. Only applicable government fees such as sales tax, title, registration and licensing are added separately to reach your out-the-door total. ### Does LetYouKnow charge a fee to use? You enter payment information when you submit a Bid, but you are charged only if your Bid is accepted, and that prepayment is applied toward your price, not added on top. If your Bid is accepted, the $799 service and reservation fee serves as a prepayment included in your accepted Bid price. If your Bid is not accepted, you are not charged. The Costco Auto Program itself is a members-only service that connects you with a dealership; the vehicle purchase and any financing are completed with that dealership and lender. ### Can I use the Costco Auto Program and LetYouKnow together? You can use them to compare. If you are a Costco member, you can request the program's prearranged member price on the car you want as one data point. Then, on LetYouKnow, you can bid your own price on that brand new car and get an instant result. If your Bid is accepted, the new car is reserved at your accepted Bid price. If it is not accepted, you are not charged and can adjust your Bid and try again. --- # LetYouKnow vs. Edmunds: What's the Difference? Canonical: https://letyouknow.com/compare/letyouknow-vs-edmunds/ During my years owning and operating new car stores, buyers routinely arrived having read Edmunds cover to cover: reviews, comparisons and True Market Value on the exact trim they wanted. Edmunds is a genuinely strong research resource for deciding which car to buy and judging whether a price looks competitive. LetYouKnow picks up where research ends: once you know the brand new car you want, it lets you bid your own price and get an instant result. ## How are LetYouKnow and Edmunds different? The difference comes down to research versus price. Edmunds is an automotive information and shopping resource. It publishes reviews, pricing guidance such as True Market Value, comparison tools and dealer listings, then connects you with a dealer to continue. It is built to help you discover the right car and judge whether a listing's price looks fair. LetYouKnow starts with your price on a brand new car. Instead of evaluating listed prices, you set your own price as a single Bid and get an instant result. If your Bid is accepted, the new car is reserved at your accepted Bid price with a participating dealership within the search radius you selected. If your Bid is not accepted, you are not charged and can adjust your Bid and try again. When your Bid is accepted, the price you set already includes all dealer and platform fees. Only applicable government charges such as sales tax, title, registration and licensing are added separately to reach your out-the-door total. ## How does Edmunds help you buy a car? Edmunds helps shoppers research and compare cars before contacting a dealer. It offers expert and owner reviews, side-by-side comparisons, and pricing guidance such as its True Market Value estimate, which reflects what others are paying and helps you judge whether a listed price looks competitive. It also shows dealer listings and price ranges so you can see what is available in your area. These tools are estimates and research aids, not a guaranteed price. Edmunds is designed to inform your decision, then hand you off to a dealer to continue the purchase. The dealer remains the seller, and financing and the final transaction are completed with the dealer or lender. For the research phase, that is a real strength. The point to keep in mind is scope: Edmunds helps you decide what to buy and what a fair price looks like, but the price you ultimately pay is settled in the transaction with the dealer. ## How does LetYouKnow approach the same purchase? LetYouKnow empowers you to bid your own price on a brand new car. You build the new car you want, set your own price and get an instant result. If your Bid is accepted, the new car is reserved at your accepted Bid price with a participating dealership within the search radius you selected. LetYouKnow is designed for price transparency on a new car. All dealer and platform fees are already inside your Bid. Government fees such as sales tax, title, registration and licensing are not included in your Bid and are typically paid as part of the final purchase with the dealership. You enter payment information when you submit your Bid. If your Bid is accepted, the $799 service and reservation fee serves as a prepayment. It is included in your accepted Bid price and is not added on top. If your Bid is not accepted, you are not charged and can adjust your Bid and/or change options and bid again. Participating dealerships do not see your identity or contact information until your Bid is accepted. ## Can I use Edmunds and LetYouKnow together? Yes, and in that order they work well. Edmunds is excellent for the research part of the journey: reading reviews, comparing trims, and using True Market Value and listings to understand where local prices sit. If your goal right now is to decide which car is right and learn what a competitive price looks like, that is exactly what Edmunds does well. LetYouKnow is built for the price step, when you know the car you want and care most about the number. There, submitting a Bid is a different path from evaluating listed prices: you propose the amount, and a participating dealer's threshold decides whether it matches. After more than fourteen years in dealerships, I see it clearly: Edmunds helps you research the market and evaluate prices; LetYouKnow lets you use that research to bid your own price on a brand new car and get an instant result. By Michael Glasser, Board Member, LetYouKnow, Inc. and former new car dealership owner and operator with more than fourteen years of dealership experience. ## Sources and notes - What Edmunds is and what it does. Edmunds is an automotive information and shopping resource that provides vehicle reviews, pricing data, comparison tools and dealer listings, and connects shoppers with dealers to continue a purchase (Edmunds, About, accessed June 15, 2026). - Edmunds pricing tools. Edmunds publishes pricing guidance such as its True Market Value estimate and shows dealer listings and price ranges to help shoppers judge whether a listed price is competitive; these are estimates and research tools, not a guaranteed price (Edmunds, Car Values / True Market Value, accessed June 15, 2026). - LetYouKnow platform facts. LetYouKnow is for brand new cars. The buyer submits the price they want to pay as a Bid and gets an instant result. All dealer and platform fees are included in the Bid. Only applicable government fees such as sales tax, title, registration and licensing are added separately. If the Bid is accepted, the $799 service and reservation fee serves as a prepayment included in the accepted Bid price. Buyers stay anonymous until the Bid is accepted. ## Frequently asked questions ### What is the difference between LetYouKnow and Edmunds? They focus on different steps. Edmunds is an automotive research and shopping resource: it provides reviews, pricing guidance such as True Market Value, comparison tools and dealer listings, and connects you with a dealer to continue. It is strong at helping you decide which car to buy and judge whether a listed price looks competitive. LetYouKnow works at the price step for a brand new car. Instead of evaluating listed prices, you submit the price you want to pay as a Bid and get an instant result. Edmunds helps you research and evaluate; LetYouKnow lets you bid your own price. ### Does Edmunds tell me the final out-the-door price I'll pay? Edmunds shows pricing guidance such as True Market Value and displays dealer listings and price ranges to help you gauge whether a price is competitive. These are estimates and research tools, not a guaranteed final price, so applicable taxes, title, registration, lawful fees and any products you select are completed in the transaction with the dealer. With LetYouKnow the amount you Bid already includes all dealer and platform fees. Only applicable government fees such as sales tax, title, registration and licensing are added separately to reach your out-the-door total. ### Is Edmunds' True Market Value the price I will pay? True Market Value is an estimate of what others are paying, meant as pricing guidance and a research reference, not a locked price a dealer must honor. It is useful for judging whether a listing is competitive. LetYouKnow does not rely on an estimate to set your price. You choose the price you want to pay and submit it as a Bid; if it is accepted, that becomes your locked-in price for the new car. ### Does LetYouKnow charge a fee to use? You enter payment information when you submit a Bid, but you are charged only if your Bid is accepted, and that prepayment is applied toward your price, not added on top. If your Bid is accepted, the $799 service and reservation fee serves as a prepayment included in your accepted Bid price. If your Bid is not accepted, you are not charged. Edmunds, by contrast, is a research and shopping resource you use to compare cars and connect with dealers; the purchase and any financing are completed with the dealer and lender. ### Can I use Edmunds and LetYouKnow together? Yes, and in that order they complement each other well. Edmunds is excellent for the research part: reading reviews, comparing trims, and using True Market Value and listings to understand where prices sit. Use it to decide which brand new car you want and what a competitive price looks like. Then, on LetYouKnow, take that research and bid your own price on the new car. If your Bid is accepted, the new car is reserved at your accepted Bid price. If it is not accepted, you are not charged and can adjust your Bid and try again. --- # LetYouKnow vs. TrueCar: What's the Difference? Canonical: https://letyouknow.com/compare/letyouknow-vs-truecar/ In my years owning and operating new car stores, I worked with buyers who came in through TrueCar holding an upfront price from a Certified Dealer. It is a helpful way to start from a clearer number than a blank negotiation. LetYouKnow approaches the same goal from the other side: rather than review a price a dealer offers you, you bid the price you want to pay on a brand new car and get an instant result. ## How are LetYouKnow and TrueCar different? The difference is the direction the price comes from. TrueCar is an automotive marketplace that connects you with a network of Certified Dealers and shows upfront, dealer-provided price offers on eligible vehicles, along with what others paid, so you can shop with more confidence. You review a dealer's upfront price and continue the purchase with that dealer, who remains the seller. LetYouKnow starts with your price on a brand new car. Instead of reviewing a dealer's offer, you set your own price as a single Bid and get an instant result. If your Bid is accepted, the new car is reserved at your accepted Bid price with a participating dealership within the search radius you selected. If your Bid is not accepted, you are not charged and can adjust your Bid and try again. When your Bid is accepted, the price you set already includes all dealer and platform fees. Only applicable government charges such as sales tax, title, registration and licensing are added separately to reach your out-the-door total. ## How does TrueCar help you buy a car? TrueCar helps shoppers by surfacing pricing information and connecting them with Certified Dealers. It shows dealer-provided upfront pricing on eligible vehicles and information about what others paid, which is meant to give you a clearer starting point than walking in with no reference. From there, you can move forward with a Certified Dealer to continue the purchase. For a shopper who wants an upfront number and a dealer connection in one place, that is a real convenience. The pricing is provided by the dealer and is intended as a confident starting point rather than a final, all-in figure. The point to keep in mind is where the transaction lands: the offer comes from a Certified Dealer and the purchase is completed with that dealership. Applicable taxes, government fees, financing and any add-ons are handled in that transaction, so it is worth confirming the full itemized out-the-door figure with the dealer. ## How does LetYouKnow approach the same purchase? LetYouKnow empowers you to bid your own price on a brand new car. You build the new car you want, set your own price and get an instant result. If your Bid is accepted, the new car is reserved at your accepted Bid price with a participating dealership within the search radius you selected. LetYouKnow is designed for price transparency on a new car. All dealer and platform fees are already inside your Bid. Government fees such as sales tax, title, registration and licensing are not included in your Bid and are typically paid as part of the final purchase with the dealership. You enter payment information when you submit your Bid. If your Bid is accepted, the $799 service and reservation fee serves as a prepayment. It is included in your accepted Bid price and is not added on top. If your Bid is not accepted, you are not charged and can adjust your Bid and/or change options and bid again. Participating dealerships do not see your identity or contact information until your Bid is accepted. ## Can I use TrueCar and LetYouKnow together? Yes, and they complement each other. TrueCar can show you dealer-provided upfront pricing and what others paid, which is useful context for understanding where prices sit on the brand new car you want. Use it to get a sense of the market and a starting number. Then, on LetYouKnow, take that context and bid your own price on the new car. Rather than review a price offered to you, you propose the amount, and a participating dealer's threshold decides whether it matches. After more than fourteen years in dealerships, I see the difference clearly: TrueCar shows you an upfront price from a dealer; LetYouKnow lets you name your own price and find out instantly whether it is accepted. By Michael Glasser, Board Member, LetYouKnow, Inc. and former new car dealership owner and operator with more than fourteen years of dealership experience. ## Sources and notes - What TrueCar is and what it does. TrueCar (Nasdaq: TRUE) is an automotive marketplace that connects shoppers with a network of Certified Dealers, showing pricing information and upfront, dealer-provided price offers on eligible vehicles to help members shop with more confidence (TrueCar, About / How It Works, accessed June 15, 2026). - How TrueCar pricing works. TrueCar surfaces dealer-provided upfront pricing and shows what others paid to help shoppers gauge a competitive price; the offer comes from a Certified Dealer and the purchase is completed with that dealership, which remains the seller (TrueCar, How It Works, accessed June 15, 2026). - LetYouKnow platform facts. LetYouKnow is for brand new cars. The buyer submits the price they want to pay as a Bid and gets an instant result. All dealer and platform fees are included in the Bid. Only applicable government fees such as sales tax, title, registration and licensing are added separately. If the Bid is accepted, the $799 service and reservation fee serves as a prepayment included in the accepted Bid price. Buyers stay anonymous until the Bid is accepted. ## Frequently asked questions ### What is the difference between LetYouKnow and TrueCar? They set the price from opposite directions. TrueCar is a marketplace that connects you with Certified Dealers and shows upfront, dealer-provided price offers on eligible vehicles, along with what others paid, so you can shop with more confidence. You review a dealer's upfront price and continue with that dealer. LetYouKnow does not show you a dealer's price to accept. You submit the price you want to pay as a Bid and get an instant result. TrueCar surfaces a price offered to you; LetYouKnow is built around a price you propose. ### Does TrueCar give me the final out-the-door price I'll pay? TrueCar shows dealer-provided upfront pricing and what others paid as guidance, but the offer comes from a Certified Dealer and the purchase is completed with that dealership. Applicable taxes, title, registration, lawful fees and any products you select are handled in that transaction, so confirm the final itemized figure with the dealer. With LetYouKnow the amount you Bid already includes all dealer and platform fees. Only applicable government fees such as sales tax, title, registration and licensing are added separately to reach your out-the-door total. ### Is the TrueCar price a locked price? The upfront price on TrueCar is provided by a Certified Dealer and is intended to give you a clearer starting point than a blank negotiation. Even so, the final purchase, including government fees and any options, is completed with the dealership, so confirm the full out-the-door figure before you sign. On LetYouKnow, if your Bid is accepted it becomes your locked-in price for the new car, and that Bid already includes all dealer and platform fees. ### Does LetYouKnow charge a fee to use? You enter payment information when you submit a Bid, but you are charged only if your Bid is accepted, and that prepayment is applied toward your price, not added on top. If your Bid is accepted, the $799 service and reservation fee serves as a prepayment included in your accepted Bid price. If your Bid is not accepted, you are not charged. TrueCar, by contrast, is a marketplace that connects you with Certified Dealers; the vehicle purchase and any financing are completed with the dealer and lender. ### Can I use TrueCar and LetYouKnow together? Yes, they complement each other. TrueCar can show you dealer-provided upfront pricing and what others paid, which is useful context for understanding where prices sit on the brand new car you want. Then, on LetYouKnow, you can bid your own price on that new car and get an instant result. If your Bid is accepted, the new car is reserved at your accepted Bid price. If it is not accepted, you are not charged and can adjust your Bid and try again. --- # Car-Buying Price Terms, Defined Canonical: https://letyouknow.com/glossary/ Buying a brand new car means seeing several different numbers, including the advertised price, the monthly payment and the MSRP shown on the Monroney window sticker. Each one describes a different part of the transaction. This guide defines the pricing and fee terms buyers actually run into, so you can read a worksheet or window sticker and understand what every line means. The number that ties it all together is the out-the-door price, which is the full amount due before financing, including the vehicle price, dealer fees, add-ons and applicable government fees. ## About LetYouKnow LetYouKnow is an online marketplace where buyers bid their own lower price on a brand new car and get an instant result. A buyer submits a bid for a configured brand new car. A participating dealership either accepts the bid or the bid is not accepted. If the bid is not accepted, the buyer is not charged and may adjust the bid and/or change options, then try again. The buyer's bid includes the vehicle price and all mandatory dealer and platform fees, including any doc fee, market adjustment or similar dealer charges. Those dealer and platform fees are fixed within the bid price. Only government fees, such as taxes, title, registration and licensing, are added separately to determine the final total. The Monroney window sticker, including MSRP, is shown only as a reference detail for the vehicle the buyer builds. ## Out-the-door (OTD) price The complete purchase price before financing: the agreed vehicle price, destination charge, dealer fees, any selected products and applicable government fees such as taxes, title and registration. The FTC describes the out-the-door price as the total price of the car before financing, including taxes and fees. A complete, itemized OTD quote is the best figure for comparing offers. Ask for it in writing and compare that one number across dealers. ## MSRP (Manufacturer's Suggested Retail Price) The automaker's suggested price for the vehicle, shown on the Monroney window sticker. A dealer may sell the vehicle above or below MSRP. The Monroney window sticker lists the base vehicle price, factory-installed options, destination charge and total sticker price. Taxes, dealer charges and dealer-installed products are not part of that factory-set sticker total. Treat MSRP as a comparison reference, not necessarily the price you will pay. ## Destination charge or freight fee The manufacturer's stated transportation charge for delivering the vehicle to the dealer. Federal law requires this charge to be shown separately on the Monroney window sticker and included in the sticker's total price. Confirm the destination charge appears only once and is not added a second time. Negotiate the overall selling price rather than the destination charge by itself. A separate dealer transfer, shipping or home-delivery charge is different from the manufacturer's destination charge. ## Documentation fee (doc fee) A documentation fee, often called a doc fee, is a dealer-imposed charge for preparing and processing purchase paperwork, such as sales documents, required disclosures and title or registration documents. A doc fee is not a government fee, although state rules may limit how much a dealer can charge or how the fee must be disclosed. Because doc fees vary by state and dealership, compare the full out-the-door price instead of judging the doc fee by itself. ## Additional Dealer Markup (ADM) or market adjustment Additional dealer markup, often called ADM or a market adjustment, is an amount a dealership adds above MSRP. It may appear when a vehicle is in high demand, limited supply or has specific features that make it harder to find. ADM is not a manufacturer charge or government fee. It is set by the dealership. Because MSRP is a suggested retail price, a dealership may price a vehicle above MSRP, subject to applicable advertising and disclosure rules. Before agreeing to ADM, a buyer can ask whether different pricing is available, compare offers from other dealerships or choose not to move forward. ## Junk fees Junk fees are charges that may appear unclear, unexpected or not worth the cost to the buyer. In car buying, the term is often used for dealer-added products or services such as nitrogen tire fill, VIN etching or paint sealant. Not every dealer-added product is the same. Some may provide value to certain buyers, while others may not. Review each charge based on how it was disclosed, whether it is optional or required, whether the buyer agreed to it and whether the product or service is worth the added cost. ## Add-ons and dealer addendum Add-ons are products or services added beyond the factory vehicle. A dealer addendum is a separate sticker or document that lists dealer-added items or charges. Add-ons can include factory-installed options shown on the Monroney label, dealer-installed accessories listed separately, optional F&I products such as a service contract or GAP, or packages the dealership includes as part of its disclosed offer. Optional add-ons should not be charged without the buyer's agreement. If an add-on is optional, confirm the buyer agreed to it before it appears on the contract. Review any dealer addendum separately from the factory MSRP. ## Government fees (tax, title, license) Government fees are charges imposed by a state or local government when a vehicle is purchased. They may include sales or use tax, title fees, registration fees and license plate fees. These fees are based on government rules, not dealership pricing. The amount can vary depending on the buyer's location, the vehicle, the transaction price, registration type and state or local requirements. A dealership often collects and submits these fees on the buyer's behalf, although the exact process can vary by state. ## Invoice price Invoice price is the amount listed on the manufacturer's invoice to the dealership for the vehicle, including certain factory or regional charges. It is often described as the dealer's cost, but it is not always the dealership's final cost. Manufacturer holdback, factory-to-dealer incentives and other credits may reduce the dealership's actual cost below the invoice price. Because those amounts can vary by manufacturer, vehicle, timing and dealership, invoice price should be treated as a reference point, not the full picture of what the dealership paid. ## Dealer holdback Dealer holdback is a manufacturer credit or payment to the dealership. It is often based on a percentage of MSRP or invoice price and varies by manufacturer. Holdback can help offset dealership costs, such as inventory, financing and operations. It is also one reason invoice price may not reflect the dealership's actual net cost. Because holdback varies by brand, timing and program rules, it should not be treated as guaranteed profit on every vehicle. ## Monroney sticker A Monroney sticker is the official factory window sticker required on new vehicles sold in the U.S. It lists the vehicle's MSRP, factory-installed options, destination or transportation charge and total factory sticker price, along with vehicle identification information. Fuel economy and environmental ratings may also appear on the label. The sticker is named for Senator Mike Monroney, who sponsored the 1958 disclosure law. It must remain on the vehicle until the vehicle is delivered to the buyer. Use the Monroney sticker as the main reference for the manufacturer's VIN-specific factory pricing and equipment. It does not show the dealer's selling price, taxes, registration fees or final out-the-door price. ## Manufacturer rebate A manufacturer rebate is an incentive from the automaker on a specific vehicle, model or buyer program. It may also be called cash back or customer cash. Depending on the offer terms, a rebate may reduce the purchase price, lower the amount financed or be provided as a cash allowance. Because the rebate comes from the manufacturer, it is separate from any dealer discount. It is also not the same as a government tax credit. Rebates may have eligibility requirements, expiration dates and limits on whether they can be combined with special financing. A rebate is one type of manufacturer incentive. Manufacturer incentive is the broader term and can also include low-APR financing, lease offers and bonuses paid to the dealer. ## Sources and notes - OTD price. The FTC advises buyers to get the out-the-door price in writing before visiting the dealership and describes it as the total price of the car before financing, including taxes and fees (FTC, Consumer Advice). - MSRP, destination and the Monroney sticker. Federal law, the Automobile Information Disclosure Act at 15 U.S.C. 1232, requires the window label on a new automobile to disclose the manufacturer's suggested retail price, factory-installed options, the transportation or destination charge and the combined total (Cornell Law / U.S. Code). - Doc and government fees. Dealer document, processing and electronic-filing fees are separate from government fees such as taxes, title, registration and licensing. Some states regulate how dealer document or filing fees may be described, capped or disclosed, so buyers should check the rule in their state. - MSRP and dealer pricing. The FTC explains that the key word in MSRP is suggested; a dealer may set the retail price at MSRP or a different price as long as the dealer makes that decision on its own (FTC, Manufacturer-imposed Requirements). - Dealer invoice, holdback and rebates. Dealer invoice is the manufacturer's billed price to the dealer; holdback is a manufacturer payment back to the dealer, often a percentage of MSRP; manufacturer incentives and rebates can reduce the buyer's price or affect the dealer's net cost (Edmunds). ## Frequently asked questions ### What is an out-the-door price? The out-the-door price, or OTD price, is the total purchase price of a vehicle before financing. It includes the vehicle price, destination fee, dealer fees, any add-ons included in the deal and government fees such as taxes, title and licensing. Because it shows the full price before loan terms, interest or monthly payments, the out-the-door price is the best number to use when comparing offers. Ask for an itemized OTD quote in writing so you can compare the same total across dealerships. ### What is a destination fee? A destination fee is the manufacturer's charge for transporting a brand new car from the factory to the dealership. It appears as a separate line on the Monroney window sticker and is included in the sticker's total price. This is a manufacturer-stated charge, not a dealer add-on. Make sure the destination fee is counted only once, not added again later. Also ask separately about any dealer transfer, shipping or home delivery charge, because those are different from the destination fee. ### What is a dealer market adjustment? A dealer market adjustment, also called additional dealer markup or ADM, is an amount a dealership adds above MSRP. It often appears when a vehicle is in high demand or limited supply and may be shown on a separate dealer addendum sticker. A market adjustment is not a manufacturer charge or government fee. It is set by the dealership. Because MSRP is a suggested retail price, a dealership may price a vehicle above MSRP, subject to applicable advertising and disclosure rules. Before agreeing to a market adjustment, a buyer can ask whether different pricing is available, compare offers from other dealerships or choose not to move forward. ### What is a doc fee? A doc fee is a dealer-imposed charge for processing purchase paperwork. It may cover sales documents, required disclosures, title and registration documents and other transaction-related paperwork. A doc fee is not a government fee, although state rules may limit how much a dealership can charge or how the fee must be disclosed. Because doc fees vary, ask whether the quoted price includes the doc fee and compare it as part of the full out-the-door price. ### What is MSRP on a car? MSRP means Manufacturer's Suggested Retail Price. It is the automaker's suggested price for the vehicle and is shown on the Monroney window sticker. Suggested matters: a dealership may sell a vehicle above or below MSRP. The window sticker shows the base MSRP, factory-installed options, destination charge and total factory sticker price. Taxes, dealer fees and dealer-added products are not part of that factory total, so the final out-the-door price depends on the agreed selling price, selected products, dealer fees and applicable government fees. ### What is invoice price on a car? Invoice price is the amount listed on the manufacturer's invoice to the dealership for a vehicle, including certain factory charges. It is often called the dealership's cost, but it is not always the dealership's final net cost. Manufacturer holdback, factory-to-dealer incentives and other credits may reduce the dealership's actual cost below invoice. Because those amounts vary by manufacturer, vehicle, timing and program, invoice price should be treated as a reference point, not the dealership's final net cost. ### What is dealer holdback? Dealer holdback is a manufacturer credit or payment to the dealership. It is often based on a percentage of MSRP or invoice price and varies by manufacturer. Holdback can help offset dealership costs, such as inventory financing and operations. It is also one reason invoice price may not reflect the dealership's actual net cost. Because holdback varies by brand, timing and program rules, it should not be treated as guaranteed profit on every vehicle. ### What is a Monroney sticker? A Monroney sticker is the required manufacturer window sticker on new vehicles sold in the U.S. It lists the base MSRP, factory-installed options, destination charge, total factory sticker price and vehicle identification information. Fuel economy and environmental information may also appear on the label. Use the Monroney sticker as the main reference for the manufacturer's factory pricing and equipment. It does not show the dealer's selling price, taxes, title, registration, licensing fees or final out-the-door price. Review any dealer addendum and the final out-the-door price separately. ### What is a car rebate? A manufacturer rebate is an incentive from the automaker on a specific vehicle, model or buyer program. It may also be called cash back or customer cash. Depending on the offer terms, a rebate may reduce the purchase price, lower the amount financed or be provided as a cash allowance. Because the rebate comes from the manufacturer, it is separate from any dealer discount. It is also not the same as a government tax credit. Rebates may have eligibility requirements, expiration dates and limits on whether they can be combined with special financing. The broader category can also include low APR financing, lease offers and bonuses paid to the dealership.