WHAT'S THE BIGGEST MISTAKE Car Buyers Make Asking for an OTD PRICE?

10 out-the-door mistakes. Getting an OTD price is the most important step for today's car buyer, yet in my experience, most buyers lose control of the conversation on the very first call. They know they want the out-the-door price, but they're out of practice, feeling a little nervous about asking for it, so they say something like, I was just wondering if maybe you could give me a price? The salesperson takes calls like this every single day. You might buy a car once every five or six years. Of course, they're more comfortable on the phone than you are. That's why I want you to know your opening line and your answer to the appointment question before you even dial. The salesperson hears that hesitation and comes right back with, when can you come in? If you say, well, I might be able to come in on Saturday, listen to what just happened. You called to get a price. Now you're talking about Saturday. The salesperson can spend the rest of the call skating around the out-the-door number because you've already gone along with him. in a different conversation. And if you drive in on what you think is a $32,500 selling price, you can wind up staring at a $36,354 total. That's $3,854 more than the number you were quoted on the phone. I'll show you how a quote gets there in a minute. I'm Kevin Hunter, the Homework Guy. Here are 10 out-the-door pricing mistakes that make car buyers overpay, starting with what to say in the first 30 seconds of the phone call. At number one, starting the phone call with setting the direction. So you want to have the stock number and the zip code where you'll register the car right in front of you. Here's how I'd open. Hi, I'm calling about stock number 123 ABC. I'll be registering it in zip code 58801. I'm comparing written quotes today. Please send me the itemized out-the-door price, including the selling price, every dealer fee, any required add-ons you expect to get paid for, taxes, title, and registration. Is it easier to email or text that to me? If you're worried you'll forget what to say, write that line down and read it out loud twice before you make the phone call. Put your email address besides the stock number so you can give it to them without breaking your stride. Then pause. Give them time to answer. A lot of buyers get nervous during the silence and fill it with, or I guess I could just come in. That's the opening the salesman was waiting for, so don't do that to yourself. Number two, answering when can you come Before you have the price, let's rehearse it. The salesperson says, sure, we can go over all that when you come in. When can you come in? You say, once I have the written out-the-door price, I can decide whether to come in or not. Can you email or text me the breakdown today? If they ask about payments or a trade, say, we can talk about that later. Right now, I'm looking for an out-the-door price on the car all by itself. If they say it's easier to explain the fees in person, try, send me what you have. If I have a question about a charge, I'll be sure to call you back. You've given them a simple next step and kept the decision about the visit in your hands, not theirs. Say it calmly. If they ask again, use the same line. And if they still won't answer, you can end the call with, OK, I'll keep comparing quotes. You can send me yours. I'll take a look at it. You can be friendly and still decide what happens next. Third mistake, driving in to get a number they could easily send to you. You'll have to come in for our best deal, they'll say. That's where people give up an afternoon and start feeling like they ought to buy something because they've already spent three hours in the dealership. Say, I'm comparing written quotes today. If the numbers work, we can set up a time for me to see the car. Can you send the breakdown before I drive over? Then give them a chance to answer. Being direct can sound perfectly friendly. And when the quote comes in, confirm the vehicle is still available before you leave home. If the salesperson says that one sold, but there's another one just like it. Ask for a fresh quote on the replacement car. Don't go in without it. Get its stock number before you make the trip as well. At number four, accepting a before fees price as total. This definitely is not the price. Let's go back to that 325 car I was talking about earlier. In this example, the quote shows a 699 document fee, an 895 protection package, $2,010 in estimated taxes, and 250 bucks for title and registration. Add it all up and you're at $36,354. Ask, can you show me which charges are dealer fees, which are government charges, and which are products or services I can decline? If you didn't ask for the protection package, ask them to remove it and send a revised total. If they tell you it has to stay because it's already on the car, leave the $895 in the number that you used to compare that dealer to others. You're comparing what it would actually cost you to buy at that dealership. Watch for a quote that has a big number across the top and a little note underneath that says fees are extras. Read the little note. Ask them to put those fees in a breakdown and give you one total at the bottom. At number five, repeating the request to someone who can't get you the quote. Sometimes the person answering the phone can get you the numbers in five minutes. Sometimes they can only take your name and schedule a visit. If you've asked clearly and you're getting nowhere, ask for whoever can put the full quote in writing. Try Could you connect me with the sales manager or internet sales manager? I'm ready to compare an itemized out-the-door quote for stock number 123ABC. Give them the stock number and registration zip again so they can work on it without another round of calls from you. If you send an email instead, keep it short enough that the manager can answer it between calls. Put the stock number in the subject line and ask for the itemized quote in the first sentence. Mistake number six, counting every rebate offered by the manufacturer in the advertised price. An online price may assume you qualify for incentives or use a particular lender. Before you compare that deal with another one, find out which discounts are actually in your quote. Ask them, which rebates are included here? Which ones do I qualify for? What's my out-the-door total if I don't use dealer financing? If they send you two quotes, keep both and label them. That way, when you compare them later, you know exactly what each deal requires. At number seven, letting a trade or down payment shrink the number you're comparing. A dealer says, we've got you down to $28,000. Find out whether that's the out-the-door price or what you'd owe after applying your money or trade equity. Here's a simple example. If the out-the-door price is $34,000 and you put down $6,000, you have $28,000 left to pay before any other adjustments. Car deals still cost you $34,000. Say, please show the car's out-the-door total before my down payment or trade. Then, list my trade allowance and any payoffs separately. If the trade changes the tax estimate, show me that separately too. Mistake number eight, getting distracted by the monthly payment instead of focusing on out-the-door costs. You hear, we got you down to $4.99 a month. The first thing I want to know is what changed. Did the price come down? Did they stretch the loan out? Did they put more of your money down? Say, show me the out-the-door total again, then show me the amount financed, APR term, and total of payments separately. A monthly payment can help you decide whether a deal fits your budget. You still need the other numbers to see what you're agreeing to. Keep those two conversations separate on paper. If one dealer lowers the price but quotes a longer loan, you should be able to see exactly where the deal improved and what the loan could cost you in the end. Mistake number nine, comparing quotes that don't really match. Dealer A has the lower advertised price. Dealer B has the lower written total. Which number are you going to use when it's your money you're spending? When you compare quotes, check the VIN on each. Verify you're looking at comparable vehicles and equipment and check the registration location and any rebate or financing conditions. If you're shopping used, look at the mileage and condition too. Write down the actual total next to each vehicle. That way you can see which dealer actually gave you a lower price today. Here's the line that I'd use. I have a lower written out-the-door quote on a comparable car. Can you beat that total without adding any new conditions? And then mistake number 10, failing to check the final paperwork against the quote and then signing the deal. Don't ever do that. This is where a good deal can change. Pull up the written quote on your phone and compare it line by line with the final paperwork. Look at the vehicle, selling price, fees, and products you agreed to buy. If you're financing, check those terms too. If something changed, stop and say, We agreed to this itemized quote, show me what changed and why before I signed. Sometimes there's a reasonable explanation, like a corrected registration estimate. Ask them to show you the change and give you the corrected total in writing. If there's a product you declined, ask for paperwork with that charge removed before you sign. And take your time, always take your time. If someone says, just initial here, and we'll fix that in a minute, hand it back and say, go ahead and fix it first. I'll read the corrected copy when it's ready. Now, here's your homework. Pick a vehicle, ask for the written itemized out-the-door price on that exact car. Compare the quotes, then pull up the one you accepted when the final paperwork lands in front of you. And if a dealer has ever sent you an out-the-door price that left something out, tell us in the comments down below what was missing. I'd like to hear the line they used when you asked them about it. If you'd like a coach in your corner, our hassle-free car buying service is linked at the top of the description box down below. I'm Kevin Hunter, The Homework Guy. Thank you for watching.