EMM - "Out The Door (OTD)" is the vehicle purchase price agreed to by the customer and the dealer, including Delivery Cost, Fees, Dealer "Sucker Sticker" Add-Ons, plus Tax, Title, and License Tag Registration Fees/Costs. The "Cost Of Money" associated with the auto loan (i.e. APR Interest) is not included when talking OTD Price.
Ok because I hear how people here say "oh yeah I got 27,100 ODT" but wouldn't that price matter if they got a high APR? Like its possible that two people got that same OTD price but one got like a 2.99 apr and the other a 4.99 APR? The person with lower APR negotiated a better deal. Do I make sense? Shouldnt people just post how much they will be paying with APR included because without them posting without APR how do we really kno if they got a good deal???
APR is dependent on Credit Scores or approval letters from private banks that you can get the dealer to match.
Ok so then they wanted to give me 6.99 at one dealer but another one wanted to give me 2.90? Did they want to rip me off? If you have good credit, what kind if APR is good? because I kno 0 APR doesn't exist for the 2012 Prius
6.99 sounds like an APR for good credit on a used car. 2.9 would be T1 on new. I'm wondering if they didn't make a mistake. At 780 you should be in the clear.
Sometimes car companies offer special incentives to get you to come into buy a car from them. This is usually some sort of cash discount off the price of the car, or preferred financing through the car company's financing arm. This may be where your confusion is coming from. The OTD price is basically the cash price to take the car off the lot. That includes the sticker price, destination/delivery/prep fees, any additional options, local sales tax, license/registration fees, doc fees, etc. The APR is how much interest you will have to pay if you are financing the car. Not everybody finances their car, some people are actually able to pay cash for their cars. Before I bought my Plug-in, I had gotten pre-approval from my credit union for an interest rate of 5.29 percent. The dealer was able to get me a loan through someone else for 3.99 percent, so I took that. Sometimes the dealer can offer you a better deal on the car if you take their financing because they'll make more money off the financing of the car purchase, than an outright purchase of the car. That's why it's important to know ahead of a time what your credit score is and to get a pre-approval from your bank or credit union prior to purchasing the car.
