NEGOTIATION HACK (Out the Door Price is KILLER) Kevin Hunter The Homework Guy
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- Опубліковано 1 жов 2024
- 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!
The problem is the dealership (Stealership) will not cooperate. Try to get them to provide an OTD price via email and see what happens. You will be ignored or coerced into coming into the dealership.
They will not cooperate in the least.
you guys sound like AI reading, you may want to work on sounding a bit more natural when reading and speaking
The next step is to inform the F&I salesman that if the price on the final paperwork don’t add up to the OTD price quoted, I’ll walk away. Prevent him from sneaking extras into the deal.
Bought my wife a new car one time and the salesman handed me a coupon book for 5.00 off an oil change and stuff and I was like gee thanks! went to sign the paperwork and reading each line item and the coupon book was 300.00! I gave it back and said no deal and I didn't appreciate him misleading me about it and was leaving, they took the coupons off, took another 500 off the car as I was shutting the door about drive off and had to redo all the paperwork.they were smiling and all but I could tell they were mad at me for not allowing them to screw me then I blasted them all over social media letting everyone know that the coupons are not free.
@@billbonu1639 "Yes, but we offer free donuts and hotdogs on Super Sales Saturdays, and we have lowered the D&H fee to only $999!"
Why does the real phone call sound staged? Hehe was that real, or only a re-creation of the actual phone call?
Yeah that was horrible!! It also sounds like they're reading from a damn teleprompter.
This channel is the one I link and share most. You guys have been rocking it for years and I thank you!
Wow, thanks! We appreciate you!
I am a big fan. Thank you for all of this valuable information.
Thank you! We love our viewers :)
It worked for me 😃👍
I got into the finance manager's office and he tried to steal my $500 deposit (had to have the car shipped from another dealership). I knew the OTD price so I easily picked up on the extra 500 bucks he quoted. He rattled off the price so fast it could have been easy to miss. I immediately shook my head saying "no." He acted as if it was an honest mistake. Yeah, right 🤣
Hiring a purchasing agent , Stuart, for a complicated deal sounds like a good idea to me.
I'm in the UK and will shortly be going through the trauma of new car buying.
Hopefully being Scottish will be my shield against the car salesmen Jedi mind tricks.
The FTC needs to up their game. Consumers are routinely manipulated into overpaying for their purchases especially cars.
If the FTC doesn't get complaints its the buyers fault.
@@jweaver7170 buyer beware then file a complaint
buyers resonsibility to know what they are doing. if they cant/wont, hire someone who can....its not that difficult but does take research, time and effort......it actually is a very simple process and today with technology its easier than ever......
The theory of a competitive marketplace is negated by deceptive sales practices universally employed by the dealership system to maximize profits. Too bad we as consumers have to have a black belt in negotiation judo to avoid being deceived and taken advantage of and get a square deal.
true but it can be done....plus you can use your new found skill in other areas of your life......its just business....it works this way in many fields besides auto sales
You are absolutely correct in your comments about youtube, and it's getting worse by the day!
When looking for a salesperson to send the email, wouldn't it be easier to just call the stealership and ask for the sales manager?
Yall made everything SO crystal clear and easy to follow! Wasn’t hard to be successful when we had your support every step of the way! Thanks again and LOVING our great deal!
I’ve always communicated directly with fleet sales via email to lock down OTD pricing.
Something I picked up from Edmunds years ago.
Good observation, and excellent strategy!
I think the f&I office is the shark tank
I disagree, in fact I think the finance department is the easiest because everything has to be written down clearly on paper. There's no room for verbal gaffs or manipulation. You just look at your payment, look at the term, the interest rate, and the final price. If it doesn't add up to what you negotiated with the salesman then the deal is off, how easy is that
One Toyota dealership said that they cannot go lower than $42,011.90 base price of a 2024 Toyota Camry XSE V6. After making a deposit, a week later, a closer Toyota dealership priced theirs 248.99 base price lower for the same model & trim. The 1st dealer offered $300 less, but I said that the 2nd dealer is much closer, so they reduced it by $500z
V6 baby, Woohoo
42k for a Camry?!?! Holy cow I’m keeping my old car
You paid $42k for a a Camry??🤣
I'm about to attempt to negotiate a 2024 car MSRP of $51,400 but they have 'clear guard of $595, Pro Pack Protection $995, Theft Recovery $1,295, TOTALING $2,885 in added fees. Cash buyer, but will reveal at the end, thanks to you guys. I'll do the email route for new car first and see how close they get to MSRP.
Update?
I love the channel but the sound effects like the tipping are really annoying. Something can't watch the whole video.
You guys are awesome. But I have a question. I'm currently trying to negotiate a USED car purchase. Most of the dealers are trying to stick me with a so-called "Dealer Processing Charge" for about $800. When I ask them to remove it they just say it's impossible. What am I to do?
You’re tip on Who & how to reacher a salesperson is a perfect way to start the car journey
Thank you so much Keven Hunter! The Homework Guy. We just bought a 2020 Toyota Rav 4. The Dealer even asked me that he would give me "The Out the Door Price" Which I was kind of shocked and a responsible dealer. Although the Fee's were hidden. I asked the dealer for an itemized listing of all the fees. Discovered that they had a customer discount on their website for 4,154 but they only charged me 3,004 discount. He also wanted to charge us 545.00 for interior cleaning and 629 for scotch guard fee and a 299.00 fee for car washes. We told him Nooooo!!! and save us about 1,473.00. The car drives incredible. Can't thank y'all enough.
I’m also lookin at a 202 rav4, would you mind me asking how many miles it had and what your OTD price was?
@@GermanJumpman The price was 29995, the mileage i got was 41,999
@@brianbartels9580 $29,995 out the door? That’s amazing!!
@@brianbartels9580 what trim and is it a hybrid?
Do everything online first. I never step in to a dealership cold. Also you can get a killer deal if you buy any of the leftover prior year models still on the lot. They most likely want to move those.
I will usually email the internet manager and talk about the price. I'll then offer my OTD. He will either say yes or no or counter me. Dont be afraid to say no even over email. They will most likely continue to work down to your price.
Very good! Bypass UA-cam's referring system altogether.
Thanks for all the great resources you put together both here on UA-cam and on your website. I'd like to ask how you would handle negotiating when qualifying for a specific discount such as active military or recent college graduate. Many automakers offer $500 or greater discounts for buyers who meet specific criteria like this.
Should this kind of discount be brought up during negotiation of the OTD price, mentioned to the salesperson after negotiating the best OTD price, only discussed with the finance manager when it comes time to finalize the contract, or handled in some other way?
Does the Black Book value include new cars? And, on the same topic is there a way of determining what the dealer actually paid for a new vehicle directly from the manufacturer?
I have used OTB to by my last 4 vehicles including a motorhome. The only difference I see is that I include Tax, License and Title in my OTB so that I know what I am going to pay. It has taken some humming and hawing on the dealers part but has always worked. I believe we were always fair with are offer. On the motorhome my wife was out the door and halfway to our car when the salesmen came running to agree with her finial OTB.
Is this guy an AI generated intety?
Good advice though.
But these negotiation tactics will not work at CarMax.
Because CarMax does not negotiate. All their vehicles are overpriced and they cater to people who do not like to haggle
Then don't shop carmax
this whole video sounds like a commercial😂
Have you heard of the lease buyback with Toyota? They are offering $4000-$6ooo off MSRP if you lease thru toyota finance. Then you pay off the lease (buy back option) after the first payment and refinance or pay it off.
Sounds like a good way to save some money
If you understand leases which are very complicated. You will always lose on a lease.
That real phone call sounded so staged and fake.
That phone call sounds so fake 🤣
You guys are obviously reading from a script.
Ever watch a news channel? Ever watch a US President speak? Do you think they are just turning on a microphone and a camera and see what happens? Are they sitting there spewing out made up content the whole time? Or do they actually research their subjects and shoot for the best possible outcome as it pertains to the quality of the information? Our leading comment of praise fopr our show is that we don't sit and fiddle-fart talking about the weather or where we went the previous weekend. We get right after the meat of the subject. Did you notice that part?
So, now the focus on OTD, with no noting & crossing out "fake fees?" Is that done in the counter offer OTD?? Or FO?
They kinda want you to do what you want to do, it seems. I believe they're having success with email OTD and then you make it match in Financing.
Thank you so much for your help
Why does the "OTP" with the state fees added vs cost of what you are willing to pay for the car (value) without taxes the path here? I would think that keeps things even cleaner. Maybe it's all the same and it's just good for my own psychology.
I've learned to ask for the OTD price years ago....I got $6k off a Subaru Forester ng this 2 months ago😊
wouldn't the dealer suspect something, Kevin sounds so formal or rehearsed from a script when he calls
Thank you guys for all that you do on this channel to help and educate us.
I bought a vehicle and it was a disaster experience.
I need good people like you both to help me.
We'd certainly love to help you on your next one!
I will definitely contact before buying the next time.
Am i not supposed to see the breakdown so that i can do away with the unnecessary Add ons. The OTD could have all these .....
This method is genius. I never knew the acronym "OTD" until I started following THG!
So, this OTD price also includes sales tax?
This is entirely (I do mean entirely) scripted.
Yeah, if there really was a phone call, I'd like to hear the actual call with all the ummms, hmmms, pauses, and misspoken words. The fact that the supposed call was read perfectly into the mic makes me a bit suspicious. But I still find it somewhat helpful.
Yeah, I just can't get into their videos. It sounds like they're reading from a damn teleprompter or something.
Just can’t wait for the dealership to be out of the car buying equation!
Don’t buy a Ram.
I'm curious. Why not? I have a 2019 Ram Rebel, and it's been great. 89k miles.
@@TLC717 get back to me at 120,000 miles.
@Psylliumhead Please don't leave me hanging like that! What happened? I've had to get 2 new fuel injectors, $573, so far, but I thought it's my fault for not adding fuel injector cleaner and letting the tank get too close to empty a few times. Please tell me, is it a major issue? Is it one of those things where once it starts, it's one problem after another?
My plan was to text dealers to get the otd, and then visit the lot. But i cant get a salesman to send me the otd.
The caller is scripted of course because he isn't really buying the vehicle but the salesperson doesn't sound scripted.
He isn't, nice that someone realizes that!
I am not in the market for a car but I enjoy listening to you guys
How do you use the OTD template
I couldn't get the dealership to go below MSRP on a Nissan Versa SR. I wish I knew what I did wrong.
U didn't walk away that y
Getting below MSRP on a versa would be really difficult. The margin on that car is razor thin. Like $700, so the dealer is not going to budge much.
+1 for the phone call! Good stuff here
Thank you your advice on prior videos, enabled us to get a great deal using out the door price with trade in of $20, 299 on a 2021 Camry LE. with only a little over 20,000 miles. The car was originally sold in September of 21 making it only 2 yrs. 7 months old.
Is it just me or does he sound like Pat Summerall?
Some people have said that...lol
Thanks again yall.
🦉
You guys are too long winded
This guy talks like he's an automated system lol
I've been in broadcasting for many years so i'm very polished at it. Thanks for noticing.
This guy is a joke. Research and save your money for the vehicle. Don’t pay these to clowns for something you can get free.
Another good video 👍