Get the Out-the-Door Price When Buying a Car – Calculate Tax, Title, and Registration | Edmunds
Out-the-Door vs. Monthly Payments
So how does this approach work when your focus is on your monthly payments? Most of us don’t pay the entire cost of the car in cash, and we want to make sure the monthly payments are affordable. And a car salesperson is likely to open price negotiations by asking: “What do you want your monthly payment to be?” It’s easy to fall into that monthly-payment thinking.
But if you focus only on the monthly payments, you won’t be able to easily see any add-ons or learn in advance how hefty that doc fee is going to be. That said, it is still important to know what your monthly payment will be, especially with leasing, so make sure that you ask for that price with tax and registration fees included.
You can avoid monthly-payment myopia by securing preapproved car financing. Then you can proceed as a cash buyer, carrying a check from your lender into the dealership with you. Preapproval also lets you gauge whether the dealer’s financing is a better deal for you.
Negotiating on the price of the car is a simpler way to go. It’s also easier to ask the question that will reveal what you’re actually going to pay for the car: the out-the-door cost.
Next Steps
Now that you have a dealer price quote and breakdown, you’ll need to determine if you’ve been offered a fair price. Use Edmunds Price Checker to input your specific details. Plus, get a rating on your deal to see how it compares to what others are paying in your area. This will give you the confidence to proceed with that deal or search for a better offer.