Here's Why You NEED to Know the Out-The-Door Price Before Buying a Car (Former Dealer REACTION) 

I remember going with my father to purchase a laptop and he negotiated the OTD price. They shook hands and went to the cashier. At the cashier, the sales man tacked on the tax and my dad argued and left. My father was like "he will call me watch" 10 minutes later he called us back.

I have read multiple books, and my #1 statement to dealers, is out the door price. In doing this I shop a minimum of 5 dealers, without ever going the the location. All with very close or exactly the same MSRP... Once you buy, the is only half the battle. I tell them I am NOT going to the finance office for thousands of add ons. When I bought my Lexus, they just preped the car and I drove away, because they knew I wasn't going to be their next meal ticket... At least 5 different dealers is the key, and tell them you want their best price at least a day before you actually are going to finalize any deal. Over the years, I have found if I tell them I'm closing the deal on a Thursday, they call Friday with their best price....

The last two vehicles I purchased I told the salesperson up front, after finding the exact model I wanted, to just give me the best "out the door" price. I already had a price I was willing to pay in mind, and it saved both of us time. I wasn't really in need of a new vehicle anyhow, so if I didn't like the price I just said thanks and have a nice day. My haggling days are long over.

Completely agree with these guys. OTD - Cash Down Payment = Amount to be Financed. Those are the only numbers that matter to me. Just bought a 2022 Genesis G70. Had the OTD number within 10 minutes and did the deal. 2.9% financing. No gap.

Gimme the OTD price or I will walk OTD!

Stop trying to stifle your dad’s negative reactions! They’re refreshing.

When I first watched Manny's video, I had the same reaction as Ray. I'm not even in the car industry. Glad that I forwarded it to you guys!

I'm trying to buy a 1-2 year old car(out of state) and the internet car sales price, is a nice reasonable price on Cargurus, Carmax etc, and when I ask for the OTD price, they jack it up $3k with dealer nonsense and won't negotiate. It's no longer a good deal. They advertise a low price, just to get you to contact the dealership. I wish the state regulators would make that illegal. If they advertise a price, that should be the OTD price, less taxes etc.

Here's what I did when buying my new 2019 SUV. I told the dealer I was only working with the OTD price and I would be dividing that OTD price by the Monroney label. And I would be getting a minimum of 3 quotes from dealers, just like you would do for a major project on your house. In this case I had no trade in and there were end of model year discounts so my quotes ran from 88%-91%. I went with the 88% quote, and the salesman never asked how I was paying. After agreeing on the price he hands me a credit app. Then I informed him I was paying with a check. The look on his face was priceless, he had to go confer with his sales manager. But they didn't try to back out, I got the SUV for that price.

It's more simple than that 1.Negotiate the base vehicle price with any and all mandatory BS they have on vehicle.Educate yourself on all rebates/holdbacks/factory incentives/lease cash/money factors..Everything is available to you online.Let's say that number is 25K.. 2.Know your DMV/tax rates.license /title..Let's say that is 2,500 3. Know Dealers Doc fee ..Let's say it's 400.00 Now you have your OTD price of 27,900....Say you don't like the doc fee? Don't ask for it to be removed ,just adjust the car price in your offer.. Also, take emotion out of the buying process. Car sales #1 job is to get a retail price for the vehicle ,with add ons ,warranties,mud flaps...you name it...It's upselling ,and it's okay..your job as a buyer is to get yourself a price you are happy with.

I asked 5 toyota dealer in the tri-state area for OTD price on a 2021 Toyota camry SE one give $27700 the other $30700 and the other 3 keep asking to call or come to test drive the car.

You guys need to keep doing this. Ray's reaction and faces are priceless!

I am SO glad you two have done this video. It shows us that there are others out there making videos that do not make a bit of sense. You videos have been the most honest, clear and informative ones out here. Thank you for your honesty

You guys are splendiferous!! Thank you for your time and effort on these videos.

Great job Rey! Thanks for saying what you think and NOT worrying about people's feelings!!!!!

I agree, out the door price is important especially if you are on a budget.

How I wish I had you guys around the last time I bought a car (12 years ago). I'm buying a car again in the near future and won't make the same mistakes! Thanks for all the great info!

OTD = the final price including everything. I have been doing OTD deals on my vehicles since 1997 and have never made a mistake. I do my homework and know what is an acceptable OTD price and if their offer is good then I buy, if not then I am out the door without buying.

I have been asking or OTD pricing since I bought my first car. Love your channel. It reminds me a little of listening to car talk.

He’s offering information that can only add to your knowledge. I appreciate it.

I totally agree with you guys. My parents purchased a car using out the door price and got a great deal. The local dealer who matched it suddenly dropped the price of the car from the postering that they used earlier.

Too funny. I watched that video of myself a day or two ago and wondered what you guys thought about it, so I was happy to see you reviewing it. I have learned a lot from you guys and appreciate it very much. In the middle of negotiating a deal myself right now.

What I heard him say was that the reason that an individual might not comprehend why the OTD approach is not as good as going through the details is that the process is too complex for the average person to understand. The truth is that the OTD is the end state of all of the details which prevents the system from dazzling the buyer with BS.

That dude blows! I will keep watching you guys cause you are the Best!!👍🏼👍🏼

Love you guys!

Just in case you guys are taking a pulse on this, I used one of your templates to ask for an OTD price and I got a rate with all taxes included in the summary.

When I bought my last car in 2016 I had a lot of dealers not giving me the out the door price when I asked for it. I also had a dealer include all possible discounts not ones I qualify for and not reduce my price by that value. It was awkward to walk out when we were ready to purchase but worth it in the end.

Every dealership has software that will back out all the mandatory fees from the OTD price. If the dealer wants to take off other fees from that OTD price, they understand that will reduce the actual price of the car.

I first saw the video linked. Great video, like, subscribed.

Not sure how these vids ended up in my recommended but I’m enjoying them and agree with the comment about letting your Dad be himself and speak his mind in his way.

Idk anything about buying a car and this video you showed us makes no sense from my standpoint. I like what you two teach

thanks guys.

turned niece onto ur site ~ fantastic breakdown ~ Keep’em CominG

Ray, the h**l with prettying up your comment! Zack your father wasn't saying anything offensive at all. People are so damn sensitive about everything nowadays! Especially when it comes to speaking the truth! You guys are providing a valuable service. The service of providing true information. And it's nice to see the father son relationship! Kudos and thank you both. 👍✌

Just watched this video. Car Edge popped up immediately after. Agreed. OTD is not looking at just one number. Gotta look at the break down that leads to the OTD.

I always figure out the OTD price before going to the dealership and finalize the deal. Usually the invoice plus a little extra, plus the tax and doc fee that the dealer has stated. But so far most of my cars are below invoice and my OTD price.. oh well, those were the good years for car buying

We know most of the time the 'out the door price' or 'drive away' price in Australia. I wish we knew the invoice price like you guys.

I love how Ray is wincing. I had the same reaction. I just walked out of a Benz dealer (2 days ago) because the sales rep was uncomfortable with me asking for the OTD . the rep actually started to quote the mission statement when I started to ask questions. needless say .... I'm not buying that particular car at that particular dealership.

If anything it’s smart as hell to get the out the door price that way you know how far on or off budget you can be come correct I do appreciate what a lot of these videos bring to the table because they do help out

Wait. I've worked for Best Buy since 2014 and haggling on TV's doesn't happen. There's very little actual margin, which is why the old home theater department measured success in revenue, not margin. I'm not convinced of that story unless his manager was cutting deals on protection plans. Seems odd.

That video is like his first encounter with OTD price at Bestbuy, he's fresh, he'll learn.

Ive gone to best buy for decades and I have never been able to negotiate a price ? Maybe you could on an item on the used/ return shelves they use to have, but never on a new item

I love you guys!!!

I like having the OTD price BEFORE I step foot into the dealership. Covid has made that so much easier in today's market. Personally, I do not want the taxes mixed into the number-I know how much my state tax rate is. The buyer should always control the deal. Negotiate the deal online and you have the OTD before you even arrive. Here's a tip-Carvana is paying much more than your dealer could even think of paying for your trade. I'm in the process of buying a new Subaru Legacy Limited XT model. The dealership could only pay what the book told them (I already had the OTD before telling them-"oh yeah, I think I will trade in my old one." Carvana offered me $4,125 MORE. They really couldn't believe it at the dealership and I still don't think they do. I'll take them a copy of the transaction when Carvana picks up my car tomorrow. So, if you are thinking of trading-be sure and check with Carvana.

I've been looking at some 1 -2 year old SUVs lately to purchase. (I never buy new). Maybe you guys should do a video about that. One thing I've noticed in the last several weeks, these dealers have marked up the prices so much that if they dropped by a few thousand, they would still be making money. They have become greedy! the good news in the last week or two, I've been getting notifactions that they are dropping the prices by $1,000 to $2,000 at a time. They know the market is changing. My advise, don't jump into anything. wait it out if you can.

If you buy a car or truck out of state, when you go to get the registration & plates the car or truck in your state you will pay the sales tax for your state even if the state you bought the car or truck does not have a sales tax for cars & trucks. It is a great big pain in the ass to buy a car or truck out of state. I know. I have done this before & it drove me nuts waiting on all the paperwork to get from the out of state dealership to my state so I could my truck registered in my state.

You guys gave me a mountain of knowledge that I wished I had a month ago when purchasing my 2018 Jeep Grand Cherokee . I should’ve immediately left once they told me the car I was interested in was already sold and that they were doing inventory check ups and lost the key to the only other Grand Cherokee they had. But I was ignorant in all of this because this was my 2nd car purchase and 1st used car purchased. After 4 hours they find the key to it and it’s odometer had 59k miles on it, but the cars guru listing on their computer said only 30k miles and was listed at $25700. They checked the car fax etc and we found it to be clerical, at least I believed them when I said so. I tipped my hand with expressing I wanted to trade in my 2015 sonata with 23k miles on it. All of a sudden they came back with a disclosure form for us saying that the price of the car was 30k now. We asked why, they said the internet price was 25k but they always tack on the 3k for whatever reasons. I don’t know why I accepted that bullshit but I did because I thought that was the otd price thinking okay, my car is worth 15k, they agreed to that and I had another 6k to put into it. They take another 4 hours to run credit and my title for my sonata. I should’ve came pre approved because my gf and I have excelllent credit 730 and 820 respectively but we were approved through their bank “ally bank” for only 5.84 percent because of the fed increasing interest rates and I accepted that, I accepted their bullshit vsc for another 4k and I also accepted the other fees they had listed there and the total came up to 37k. For a 6 year loan. After all of the trade in and down payment we still owed 18k because of the 3k of interest and I signed the bullshit because I had to pick up my kids and it was 7 pm and we’d been at the dealership since 10 am. As the days went on I instantly felt the regret about all of this. I had blinders on for this 2018 Jeep Grand Cherokee and I was rushing to get it done because we need the space for the kids/ two weeks after the purchase I hear the front brakes squeak, mechanics says they’re worn out. The high beams make this low humming whenever they come on. I realize their inspection sticker is dated for march 2022 but I bought it at the end of April 2022 and they charged us for an inspection but I don’t believe they did one because of the brakes problem after 2 weeks. I’m trying to correct it by learning all of you guys tactics and techniques or refinancing but I don’t want to correct a poor decision by making a poorer decision.

OTD is the only thing that matters. I don't make lending decisions on the Sales Price.

Ask for invoice price, ask how much they want over invoice, AGREE ON A PRICE. thats it. EVERYTHING IS INCLUDED IN THAT NUMBER AGREED ON. TAXES, REBATES, DISCOUNTS, etc...

I agree that you need the OTD price. This literally will save your ass. Understand that dealers will do whatever they can to add bs to your car. Unfortunately it’s how it goes. I just bought a car and they kept increasing the price and I said wait a minute this doesn’t match the OTD. So they had to go back and change the price. Only pulled this once. They are very sneaky and will try to pull a fast one. Once you agree on an OTD. Do whatever you can to go to finance and sign the contract for that OTD. This is when you reveal how you will pay for the car. Do not disclose that in the beginning because they will use that against you. I made that mistake to let the dealers know how I was going to pay and they were doing whatever they could to change my monthly payments and try to add so much crap, But because we agreed on the OTD price beforehand I just kept sticking to that price. It was a hassle and took me about 3 hours and this was with me knowing what I wanted. They will try and wear you down mentally. It’s crazy. Be strong.

I ask for OTD before I go to the dealership. Then all I negotiate when I get there is the final OTD. Won't even talk about the sale price. This saved me on the truck I just bought. I got to financing and the price was suddenly higher. The guy tried to tell me it was because of registration fees and asked me if the sale price was what I negotiated. I said I don't know, I agreed on the OTD. He got his manager, and it magically was fixed to the OTD I negotiated. No more questions asked.

Been binge watching you guys for the last month, if not longer! Going this weekend for my second attempt at getting a new lease. Wish me luck!

I believe Ray hit the nail on the head at the start of the video. Your definition of out the door and what he'd have you (us) believe are totally different. The Guy in the video was a Mercedes Salesmen. I'd be willing to bet he had to deal with a lot of A Type personalities who came in and said like, "Now listen son. I'm a busy and incredibly (self) important man and don't have time to waste with you. So, just bottom line this for me so I can go back to doing what really matters." Either that or it's what he'd like US to believe the out the door price means. Sounds to me like he's still trying to sell stuff. Jus sayin

Hi guys,,just started watching your videos,,,,for this and all for this 60 year woman it’s not simple to buy A car if we don’t know the secrets,,,I need a new car in about 6 months or so ( I have currently 2003). I’m just trying to learn about negotiating price and the lingo

So glad I've been watching you guys for almost a year, this guy is disheveled. I wouldn't want him to teach my kids in school.

Here in Oklahoma we pay the price of the vehicle and usually a processing fee anywhere from a 100 bucks to $300 Other than that fee and the price of the vehicle all of our sales tax is handled at the tag agency the dealer has nothing to do with that so I would be interested in how someone like Manny would try to drag that in when the car dealer has nothing to do with the sales tax and he doesn't need to worry about registration or licensing fees or any of that because it doesn't concern him

It would be cool if you had some kind of quiz that we could take about car buying.

I believe Manny's point is this: Dealer's don't want to go to the trouble of getting you the OTD price, whether it's due to it being too much work to calculate or some other reason. Additionally if they do give you the OTD the first time, they'll be less likely to give much thought to a second/third round of negotiations based on what it took to gather the info for the 1st OTD price quote they sent. But if you only negotiate the car sale price then the dealer will go back and forth with ease knowing that the only thing being discussed is the car sale price. After the car sale price is agreed upon, then you can go to F&I and negotiate those fees. So Manny is saying getting the OTD is convenient for the buyer, but could run away some dealerships because they don't want to negotiate that way. I see his point.

Wouldn't it be less stressful to have a set price? No negotiating. If like that price at that dealership then buy if not go to another dealership. Why does it have to be so complicated? I needed a television, shopped around and bought one for price I was happy with. Why are vehicles different?

1) never be in a hurry to buy your next car, 2) once you research (and test drive) the cars you are interested in and figure out all the options you want in the car. 3) go online and figure out what the cars like the one you want are selling for OTD or off MSRP, and know what rebates are available etc. 4) start emailing dealers within a 50 mile radius on a car they have on the lot and available with the options you want, 4) get a OTD quote on them. 5) once confirmed, pick up the phone and go over all the details, as to avoid any miscommunication or confusion. 6) once Price is solidified, go buy your car. if you happen to have a trade in, know the minimum you are willing to accept, research. internet is a wonderful thing in today's car buying adventures. You throw everything out the window if you need the HOT car (new corvette mid engine), where there is only insanity prevailing.

Love the looks from dad

Why is the Automotive industry, taking advantage of veterans and active duty military personal stationed over seas or in U.S. territories charging twice for delivery on a purchase order i.e..destination charge of $1,370.00 then , over seas delivery $1,195.00 to a tune of $2,570.00 !? ( Puerto Rico ) In contrast, it seems local dealership's) offer incentives and discounts totaling much more then on a military base. Who's door do we need to knock on in order to look into this. Thank you for your work in providing us with the proper tools in order to make a smart decision.

I've been asking for that right off the back. Some provide It, some evade it.

The dealer especially should know what all the fees are. OTD is asking for full disclosure which a buyer is entitled to, it’s their money they’re spending.

Funny watching this after watching one of his videos earlier on and finishing it earlier after it not making much sense to me. It was the cash buyers pay more video .

OTD nothing hidden from you!

6:50 I'm about to make this offer on Saturday. The car I'm looking at is priced at $28,000. I'm hoping to get the car, with tax, title, license, and dealer fees, around 29,950 out the door. The car is fairly priced, but I don't want to pay for accessories I don't want, and don't need.

I'm in the market for the new 2022 GR86. Found 2 that have exactly what I want but sadly mark ups. 1st one was almost 42k OTD and the 2nd was 44.6k OTD. Way over MSRP 😞

So I live in the state of Nevada when buying a car if my sales tax is 8 1/2 % and I purchase it out of state and there's sales tax is lower when I have to go and register the vehicle I have to pay the difference to the state of Nevada in order for me to register the vehicle. However if I'm trading a vehicle in I can deduct the amount of trade-in value from the total price as far as sales tax.

I commented on his video also, stating that many people were willing to spend a little more to avoid the negotiation process. That is the reason, IMHO, that carvana, carmax and others have found such success. Oddly this guys predictions of what to expect in the auto market since covid started have been more accurate than most other people who have sought to give advice on car buying during this pandemic. I did not agree with his point on this particular matter though.

Zach and Pops - can you please send Manny the link to Deal School🤦‍♀️

Hey guys! Thanks for the video. I'm in the market for a small SUV. I found a 2019 GMC Terrain, but decided not to move forward with the deal. I learned that the price of a warranty depends on the make of the vehicle. For instance, GMC's and Dodge's warranties would be more expensive compared to Toyotas. Could you do a video on this specific topic?

If there is a manufacturer rebate, will it be listed anywhere on the final contract?

Hello there, I love your videos, so helpful and interesting. You may have already addressed this on a prior video but what is your opinion regarding negotiating the following expenses dealerships add to the OTD price such as Freight at PDI, Retailer Admin Fee (I suppose they mean Documentation Fee), Air Conditioning Tax, Tire Tax, Security Registration Fee. Which ones could I refuse to pay if any, and which ones in your opinion could I negotiate with the dealer? I was looking at a vehicle and the Freight and PDI were quite high at almost $3000 and the Retailer Admin Fee was close to $600. Any advice would be greatly appeciated. Please keep up the great videos and thank you.

Do you recommend Buyers watch suggestions for Sales People, e.g., Andy Elliot?

Dang I always paid retail at Best Buy!

Gonna make a dental appointment after watching this guy. It's bound to be less painful.

Never heard that term in 50 years of buying cars, heard Bottom Line and a few others. I didn't play games as I took the sticker price and backed out what I wasn't interested in and I never had any dealer have Doc Fee or Delivery or Prep Fees etc. Basically it was my price and it was not that close to MSRP and I would tell them I really don't care what they call the trade or discounts etc as that is related to the legal parts of a sale. I got up to 20 percent under MSRP. Never traded one I didn't own as that gets into other issues of paying it off or which is a rolling over the cost, bad idea not to do that all first.

after watching youz guys Im buying USED

Is the destination fee actually apart of the taxable sale price? Dealer has included it in the sales price on my worksheet

How to compare OTDP to price published in black book? Since black book doesn't include all fees and taxes.

Great video! Question. Should we consider buying cars out of state?

Gosh, it’s okay if he says what he says. I don’t think we should be worried about feelings when it comes to learning. Your pops is doing well, and he doesn’t have to or should he have to worry about coming across as mean or whatever you was saying. He can is supposed to critique, hard to do that if he has to be so careful with each word he says

Have some questions about this. About to use the template to send out to dealerships in the state and surrounding states. (NJ, NY, PA, DE, CT). This is for a custom order F250 XLT. But the vehicle will be registered in South Dakota. Do we tell them that (and risk less than great service because they may never see us again), or do we ask for net plus any fees except tax, title, and registration? (We are not trading in our current car.)

OTD is obvious. If a dealer can't figure that out, then u walk away.

Shoot! I have been asking for the in the door price!

OTD door price at a Mercedes dealer is the MRSP plus all of the dealer add ons. In other words take it or leave it. :-)

If you do your homework before you go in you can ask for the out the door price and know if it’s a poor to great deal. What I usually ask is what’s the best out the door price they can give. The very best they are able to do. That way there’s no need to negotiate and you can compare with other dealers very best out the door price. The key is you should already know what a good or bad deal is. Great video

The look on Dad's face was all I see. :)

Ray...you rock. Wish I had watched all these videos before I got ripped off at a dealership back in Oct-21. sho** H*

I been ignored by many dealers to answer the out of the door price.

I do OTD pricing all the time. I do my homework first.

I get the out the door price including taxes and all their BS and negotiate the deal from there.. i then include what i want for my trade that I already researched the value for.

4.5% that would be wonderful. NY is over 8.5%.

THIS IS EXACTLY WHY I HATE CAR DEALERSHIPS AND SALESMEN!!!! SO CONFUSING!!!! I ALWAYS FEEL LIKE THEY TRY TO GET OVER ON YOU!!!

Do you negotiate the MSRP?

Okay so I am asking in reference to purchasing a 2022 Toyota Camry LE , fwd, should I be able to negotiate down from the MSRP like in the past years or is it to the point of expectations of paying more. I am not in a hurry but living in Kentucky you would think we would have more available than they do on the lots.

THERE'S SO MANY THINGS, GUYS! Wow..I'm obsessed I've watch sooooo many of your videos, and it's amazing what all these Car Dealers do😳😳😳😳😳😳😳😳😳😳😳😳😳😳😳😳😳😳😳😳😳😳😳😳😳😳😳😳

Can you do a video about down payments is it worth it?

Should you include the extended warranty in the OTD price or negotiate that later?