NEGOTIATION HACK (Out the Door Price is KILLER) Kevin Hunter The Homework Guy
Negotiating with Out the Door price: The ultimate Car Dealership KRYPTONITE.
Now you’ll fully understand why negotiating with OTD Pricing at Car Dealerships is so killer good! Negotiating the "Out-the-Door" (OTD) price with car dealers is particularly effective for several reasons, starting with the fact that it simplifies the car buying process and most often leads to better deals for consumers.
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Here’s a few of the reasons why OTD Negotiations are so good:
Transparency: The OTD price includes not only the base price of the vehicle but all taxes, fees, and additional costs associated with the purchase. This transparency helps prevent hidden fees that can arise when negotiating strictly on the sticker price or monthly payments. Knowing the total cost upfront makes it easier for buyers to compare prices between different dealerships and avoids surprises when finalizing the sale.
Easier Budgeting: When you negotiate based on the OTD price, you know exactly how much money you need to complete the purchase. This clarity is beneficial for budgeting and financing, as you can secure a loan for a precise amount or ensure you have enough cash on hand for a one-time payment.
Reduced Complexity: Negotiating on individual components like the car price, documentation fees, dealer add-ons, and financing options can be complex and confusing. Consolidating everything into a single figure simplifies the negotiation process. It puts the buyer and seller on the same page about the total cost, reducing the chances of misunderstandings and disputes.
Better Deals: Focusing on the OTD price often leads to better overall deals. Dealers might be willing to waive certain fees or offer discounts when they see a buyer is informed and insisting on an OTD price. This comprehensive approach prevents dealers from shifting costs between different areas (like reducing the price but increasing the fees) to make the deal seem better than it actually is.
Time Efficiency: Negotiating the OTD price can save time. Instead of haggling over multiple line items, the negotiation is streamlined to one all-encompassing number. This efficiency can make the buying process quicker and less stressful for both parties.
Focus on Final Costs: Dealers often use tactics such as focusing on monthly payment amounts to distract buyers from the total cost of the car. By negotiating the OTD price, you keep the focus on the final, total vehicle cost, which is more financially significant than the monthly payment.
For the best FREE car buying advice available on the planet, make sure you see our Car Buyers Blog on thehomeworkguy.com! Also, by the time you’re done seeing this show, our new book “Buy Smart, Drive Confidently” will be available as an ebook, and an audio book, and links for it can be found on our website, thehomeworkguy.com! The Homework Guy Team has always proudly represented you, the cash car buyer, so let’s roll!
Cash transactions are a dealerships Achilles' heel. Not to mention, it’s always better for our economy when there’s less borrowing and more saving, and fewer people going into significant debt on a rapidly depreciating tangible asset! Yes, you heard me right. A vehicle is NOT an investment. No matter what any finance officer tells you..
Let's quickly revisit the basics before diving in. You should always avoid announcing your intention to pay with cash upon entering a dealership, or when initiating contact with them via email. You might wonder, "But isn't cash supposed to be king?" While that was true years ago, sadly enough that era has passed us by. In today's automotive market, hefty profits are crowned the King, and these royale profits aren't easily garnered from cash transactions, nor from you smart Homework Guy viewers out there! And especially not from anyone who hires us to negotiate their car deal directly!
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