Anyone who’s ever owned a vehicle knows that signing the paperwork for a car purchase is just the beginning of a long-term financial commitment. Besides regular maintenance and upkeep, you’ll likely be paying off the full value of the car for years to come. Of course, no one wants to bite off more than they can chew with these regular installments. But according to one car salesman, the best way to lower your monthly payment is to ask the right questions when deciding.
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Don’t forget to ask about the "out-the-door" price.
In a recently posted video, TikTok user and automotive expert @CarEdge sat down with his father—who spent 43 years selling cars—and asked him what all of the customers who got the best deals had in common. Quite simply, he said "the smart customers" always bring up the "out-the-door price" when initiating a sale.
"That’s all they ever wanted to know: They wanted to know the total price of the vehicle, including all the fees," he explains. "And then, once we established that, they were willing to talk to us about a monthly payment."
Many car buyers focus too much on the sale price alone.
Even if negotiating is part of your tactic to get the payment level you want, @CarEdge warns that many shoppers focus on the wrong numbers.
When asked to define the customers who got the worst deals, the auto expert cited the example of someone who came in asking for the best ticket price and an amount they could afford for a monthly payment. His father agreed that these were the people who "ultimately would get kinda screwed."
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Shoppers should understand they’re paying much more than the ticket price.
According to @CarEdge, this is because there’s a lot more that goes into the final cost than what the sticker on the window says. He explains that the out-the-door price is the sale price of the vehicle plus taxes and fees. Once you have that number, you can negotiate with a better outlook and get a better monthly price from that.
“The people who do that, then they negotiate the payment, so they make sure they get the best payment possible,” his father explains.
Before signing off, @CarEdge includes one last little tidbit of information: "If you’re going to get financing, get a loan pre-approval!"
@caredge This is why you should NEVER talk to the #cardealer about a monthly payment! #caredge #buyacar #newcar #usedcar #cartok #carbuyingtips #buyingacar #cardealership #carbuyingadvice #carbuying #carleasing #carbuyingsecrets #carbuyingadvice
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Other car shoppers agreed with this tactic.
While everyone has their own approach to car buying, the comments section of the video was filled with plenty of shoppers who had success asking these types of questions—as well as others with tips of their own.
"Always get the out-the-door price emailed before going [in]," one suggests.
Why does this process work? "When you start with a certain monthly payment, they’ll possibly accommodate your request by financing the car on longer terms," another user explains. "Focus on the out the door price and then focus on the monthly [payment]."
The takeaway
Even when you find a vehicle you think is within your budget, it’s best to consider the out-the-door (OTD) price when shopping for a car. This will allow you to work from a more realistic base point and ultimately lower your monthly car payment in the long run.
If you’re looking for financing, experts say getting pre-approval before you start negotiations can be helpful.
