Getting the best price on a car requires preparation, timing, and a clear negotiation strategy. The key is to focus on the Out-the-Door (OTD) price, which includes all taxes and fees, rather than just the monthly payment. Start by researching the car's Fair Market Value using sites like Kelley Blue Book and Edmunds to understand a good target price. Get pre-approved for a loan from your bank or credit union to know your budget and use it as leverage against the dealer's financing. The best time to buy is often at the end of the month, quarter, or year when salespeople are trying to meet quotas.
Here’s a sample data table for a $30,000 vehicle to illustrate how the OTD price is calculated and why it's crucial:
| Fee Type | Amount | Notes |
|---|
| Vehicle Sales Price | $28,500 | After initial negotiation from the $30,000 MSRP. |
| Destination Charge | $1,095 | Usually a non-negotiable manufacturer fee. |
| Doc Fee | $500 | Varies by state; some states have caps. |
| Sales Tax (7%) | $1,995 | Based on the negotiated price plus fees. |
| Title & Registration | $300 | Government fees, varies by state. |
| Total Out-the-Door Price | $32,390 | This is the final amount you finance. |
When you're at the dealership, be polite but firm. Let the salesperson make the first offer, then counter with your researched OTD price. If they won't meet your number, be prepared to walk away—this is often when you'll get a callback with a better offer. Remember, you have the power as the buyer.
