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Scoring Methodology

How we calculate dealer transparency scores using verified OTD quote data.

How It Works

The Dealer Transparency Index is powered by real pricing data collected through CarEdge's AI car-buying agent. Here's how the system works:

1

You find a car

Browse inventory on CarEdge or bring your own deal from any listing.

2

Our AI agent contacts dealers

The CarEdge AI agent reaches out to dealers on your behalf and requests real, itemized out-the-door quotes.

3

We analyze every quote

Doc fees, add-ons, and the gap between listing and OTD price are extracted and scored automatically.

4

Every dealer gets graded

Transparency scores are published here on the DTI — free and public for all consumers.

5

You buy with confidence

Compare dealers side by side and know exactly what you'll pay before you set foot on a lot.

Get your own AI car-buying agent

CarEdge Pro's AI agent contacts dealers, negotiates OTD prices, and gets you a transparent deal — so every quote feeds the Transparency Index.

Try CarEdge Pro

Data Collection

Our transparency scores are based on verified out-the-door (OTD) price quotes collected through our AI-powered negotiation system. Each quote represents a real price offer from a dealer, provided in writing.

What makes our data different:

  • ✓Verified quotes - Every quote is documented in writing from the dealer
  • ✓Consistent methodology - Same process for every dealer
  • ✓Itemized breakdown - Full visibility into fees, taxes, and add-ons
  • ✓No paid placements - Scores are purely data-driven

Scoring Components

Each dealer's transparency score is calculated from four weighted components:

Fee Transparency

30% weight

Measures how reasonable a dealer's documentation (doc) fee is compared to the market average.

Benchmark: $499 (market median)

Scoring:

  • Doc fee ≤ $499: Score 100
  • Doc fee $500-$999: Score 50-99 (linear scale)
  • Doc fee ≥ $1,500: Score 0

Add-on Behavior

30% weight

Evaluates how often a dealer includes mandatory add-ons (like paint protection, theft deterrent, etc.) and how much they charge for them.

Scoring:

  • No add-ons in quotes: Up to 60 points
  • Low add-on amounts when present: Up to 40 points
  • High mandatory add-ons (>$5,000): 0 points for amount portion

Dealer Markup

30% weight

Measures how much the dealer adds in fees above the listed vehicle price. Government-controlled costs (sales tax and title/registration fees) are excluded so the score reflects only what the dealer controls: doc fees, dealer add-ons, and other discretionary charges.

Formula: (OTD Price − Tax − Title Fee − Listing Price) / Listing Price

Scoring:

  • Markup ≤ 3%: Score 100 (minimal dealer fees)
  • Markup 3-15%: Score 0-100 (linear scale)
  • Markup ≥ 15%: Score 0 (significant dealer fees)

When tax or title fee data is missing from a quote, the full difference between OTD and listing is treated as dealer markup (conservative estimate).

Data Quality

10% weight

Rewards dealers who provide complete, itemized quotes with full breakdown of all fees and charges.

Scoring:

  • Based on percentage of quotes with complete information
  • Complete = OTD price, listing price, and doc fee all provided

Grading Scale

The overall transparency score (0-100) is converted to a letter grade:

A
90-100
B
80-89
C
70-79
D
60-69
F
0-59

Minimum Requirements

  • •Dealers must have at least 1 verified quote to receive a score (dealers with fewer than 3 quotes display a “limited data” indicator)
  • •Quotes older than 12 months are weighted at 50%
  • •Scores are recalculated as new quotes are collected
  • •Obvious outliers (OTD > $500,000 or doc fee > $5,000) are excluded

Frequently Asked Questions

Why don't you use customer reviews?

Reviews are subjective and can be manipulated. Our approach uses objective, verifiable data from actual price quotes to measure dealer behavior consistently.

Can dealers improve their score?

Yes! Scores are based on recent behavior. Dealers who lower their fees, remove mandatory add-ons, and provide transparent pricing will see their scores improve as new quotes are collected.

How often are scores updated?

Scores are recalculated whenever new quote data is added to our system, typically daily.