What’s Out-the-Door Price
Buying a new car?
I recommend buying dependable used cars. Yet, new cars are purchased for a variety of reasons. When buying new, it’s important to know all the financial terms. For example, OTD is the out-the-door price. This describes the total cost of the vehicle. Knowing this number is crucial in order to negotiate the best deal. You may be able to get some costs removed, so request this number before agreeing to any purchase. Ask that your trade-in and down payment are not factored into the number. This way, you can see exactly how much the vehicle will cost prior to putting any money down.
New cars cost more than their sticker price. You’ve got sales tax, documentation fees, title and registration. There are also registration and dealership fees. In addition, dealers like to try to sell you gap insurance and extended warranties. The main price you see when shopping is the MSRP. That’s the manufacturer’s suggested retail price. It’s the starting point for negotiation and much lower than the out-the-door price. The difference will greatly impact you – especially if you plan to finance the car. Avoid purchasing a car based on a monthly payment. Dealers can manipulate the amount by extending loan terms. Instead, focus on the total you’ll pay at the end of the loan – including interest. Try shopping around for different financing options and make sure you’re prepared before negotiating. Don’t get carried away by your emotions. Rather, make your decision as a steward of God’s provision.
Crown will host our annual Vision Summit in Knoxville, TN this coming October. It’s a time for our partners and friends to learn more about the ministry and our global impact. Why don’t you join us? Learn more at Crown.org.