Bruktbilen står utenfor.

Because Norwegian very often makes compound nouns by joining words together.

Here:

• brukt = used
• bil = car
• bruktbil = used car

Then Norwegian adds the definite ending:

• en bruktbil = a used car
• bruktbilen = the used car

So bruktbilen is built like this:

brukt + bil + en → bruktbilen

This is very common in Norwegian.

In Norwegian, the definite article is usually attached to the end of the noun instead of standing as a separate word.

So:

• bil = car
• bilen = the car
• bruktbil = used car
• bruktbilen = the used car

That final -en is what gives the meaning the here.

Yes, står literally means stands, but in Norwegian it is used more broadly than in English.

For physical objects, Norwegian often uses:

• står for things that are upright or placed somewhere in a standing position
• ligger for things lying down
• sitter for things or people sitting / being attached in a certain way

With vehicles, står is very common when they are parked or stationary.

So in this sentence, står is natural Norwegian for something like:

• is parked outside
• is outside
• is standing outside

Even if English would usually just say is, Norwegian often prefers står for this kind of situation.

Yes, you could, but it changes the feel a little.

• Bruktbilen står utenfor sounds more specific and natural if you mean the car is physically parked or standing outside.
• Bruktbilen er utenfor is more neutral and simply says the used car is outside.

So står gives a more concrete picture of location and position, while er is more general.

Utenfor means outside or outside of.

In this sentence, it stands alone, so it means simply:

• outside
• outdoors
• outside there

It can also take an object:

• utenfor huset = outside the house
• utenfor butikken = outside the shop

So utenfor can function either:

• by itself, as in this sentence
• or with a noun after it

This is the normal Norwegian word order for a basic statement:

subject + verb + adverb/place expression

So:

• Bruktbilen = subject
• står = verb
• utenfor = place expression

Norwegian is also a V2 language, which means the finite verb usually comes in the second position in main clauses.

That is why you can also say:

• Utenfor står bruktbilen.

Here utenfor comes first for emphasis, but står still stays in second position.

The indefinite version would be:

En bruktbil står utenfor.

That means a used car is outside.

Compare:

• en bruktbil = a used car
• bruktbilen = the used car

This is a useful contrast to remember:

• en bil / bilen
• en bruktbil / bruktbilen

It is capitalized only because it is the first word of the sentence.

In Norwegian, nouns are not capitalized the way they are in German.

So:

• Bruktbilen står utenfor.
• Jeg ser bruktbilen.

Only the first word of the sentence gets a capital letter here.

A rough guide is:

BRUKT-bi-len

A few helpful points:

• The stress is mainly on the first part: BRUKT
• The u is not like the usual English oo sound; Norwegian u is more rounded and forward in the mouth
• The ktb cluster can feel a bit heavy, so learners often need to slow it down at first: brukt-bilen

And:

• står has a long vowel sound
• utenfor is roughly UU-ten-for with stress on the first syllable

Pronunciation will vary a bit by dialect, but this is a good starting point.

Not always. In bruktbil, brukt means second-hand / used, which matches English well.

But brukt is also the past participle of bruke, meaning to use.

So depending on context, brukt can mean:

• used = not new
• used = having been used

In bruktbil, it clearly means a second-hand car, not a car that was merely used for some purpose.

Yes, very natural.

Everything in the sentence sounds standard and idiomatic:

• bruktbilen is a normal compound noun
• står is a natural verb for a car that is parked or stationary
• utenfor is a normal way to say outside

A Norwegian speaker would find this sentence completely normal in everyday speech.