Learn the deal before you argue about it
Step-by-step guides to reading a quote or a lease worksheet, questioning fees and add-ons, comparing two offers, and checking the paperwork before you sign — plus plain-English definitions of every term a dealer will use. Every term may vary by dealer, lender or lessor, state, and contract.
How-to guides
How to read a purchase quote, step by step
Work through a purchase quote in this order. Each step makes the next one easier to judge.
How to read a lease worksheet, step by step
A lease is quoted in different words than a purchase. This order keeps you oriented.
How to compare two dealer offers (and tell which is really cheaper)
Comparing two offers is not the same as comparing two monthly payments. Work through it in this order.
How to question dealer fees and add-ons
Not every fee is negotiable, but every fee should be explained. Go through them like this.
How to check the final paperwork before you sign
Numbers can move between the written quote and the paper you sign. Compare them line by line first.
Fees
Dealer-installed add-on
A dealer-installed add-on is an accessory or protection product the dealer adds to the vehicle, such as window tinting, nitrogen in tires, paint pr…
Dealer fee / doc fee
A dealer fee (or doc fee) is a charge the dealership adds for preparing and processing paperwork. Doc fees vary widely by state and dealer. Some st…
Financing
Total of payments
The total of payments is the sum of every monthly payment over the full loan term. It equals the monthly payment multiplied by the number of months…
Amount financed
The amount financed is the principal you are borrowing — typically the out-the-door price minus your down payment and any trade-in credit, plus any…
APR
APR (Annual Percentage Rate) is the yearly cost of borrowing money, expressed as a percentage. It includes the interest rate and some fees. A lower…
Finance charge
The finance charge is the total dollar amount you pay in interest and certain fees over the life of the loan. It equals the total of payments minus…
Lease
Adjusted cap cost
The adjusted capitalized cost is the gross cap cost minus any cap-cost reduction (down payment, rebates, trade credit). This is the amount the depr…
Mileage allowance
The annual mileage allowance is the number of miles you can drive per year without penalty, typically 10,000–15,000. Total contract miles equals an…
Money factor
The money factor is the lease equivalent of an interest rate. It is a small decimal (like 0.00125). To compare it to an APR, multiply by 2400 (e.g.…
Residual value
The residual value is the estimated value of the vehicle at the end of the lease, set by the lessor. It determines the depreciation portion of your…
Acquisition fee
The acquisition fee is a charge the lessor applies to set up the lease. It is a disclosed cost item. It is generally not negotiable or removable, b…
Gross cap cost
The gross capitalized cost is the cap cost plus any fees, taxes, or add-ons rolled into the lease. It is the total amount being financed through th…
Cap-cost reduction
A cap-cost reduction is any cash, rebate, or trade-in credit that lowers the adjusted cap cost. More cash up front lowers your monthly payment but…
Disposition fee
The disposition fee is a charge the lessor may apply at the end of the lease if you return the vehicle and do not buy it or lease another from the…
Buyout / purchase option
The purchase option (or buyout) is your right to buy the vehicle at the end of the lease, typically at the residual value plus any fees. Some lease…
Lease capitalized cost
The capitalized cost (cap cost) is the negotiated price of the vehicle in a lease, similar to the selling price in a purchase. You can and should n…
Excess mileage fee
The excess mileage fee is the per-mile charge for driving more than your total contract miles, commonly $0.15–$0.30 per mile. Confirm this rate in…
Purchase
Selling price
The selling price is the amount you pay for the vehicle itself before taxes, fees, and add-ons. This is the most negotiable number in a purchase. F…
Out-the-door price
The out-the-door (OTD) price is the total amount you pay to drive the car off the lot, including the selling price, all dealer fees, accessories, t…
MSRP
MSRP (Manufacturer's Suggested Retail Price) is the price the manufacturer recommends the dealer charge. It is a starting point, not the price you…
Want the paperwork read for you?
Upload the quote or lease worksheet and Lotly pulls out every line, totals it, and flags what's missing or doesn't add up — then drafts the message that asks about it. You can also read how we help you negotiate the deal end to end.
Lotly provides educational information, document organization, calculations, and negotiation-drafting assistance. It is not legal, tax, investment, financial, credit, or lending advice. We do not determine whether any charge is lawful or whether any offer is appropriate for you. Confirm all vehicle condition, availability, incentives, fees, financing, lease terms, and contract documents directly with the dealer and relevant professionals before signing.