TRUE definition of OTD

lotro · 03-25-2008, 07:52 PM

Hello all,

So i'm somewhat confused and i'm hoping those who are more knowledgable might be able to clarify things for me. It seems that many people have a misconception of what OTD really means, including myself. Some people will ADD the variables (tax, license, fee, destination, docs, etc. etc.) and some just won't include them.

I've seen many people claim their OTD cost, but there are so many variations in figures coming from the owners of the same exact same models.

(Person A) will state that they got their LX for $18,000 OTD.

(Person B) with the exact identical car states that they got their LX for $16,500 OTD.

(Person B) will rag on (Person A) for getting jipped.

Keeping in mind they both paid $200 below invoice.

So did (Person B) get a kick @ss deal, or did he +/- (variables) into his OTD cost, and now looks like a fool?

So my question is... What is the true definition of OTD and could someone be willing to break it down for me?

Thanks in advance.

**Gonzo** · 03-25-2008, 07:57 PM

I always thought of OTD as all the money you agreed to pay both for the initial purchase and all the money you agreed to owe which includes any future payments AND financing for those payments AND sales tax and any other drive off costs.

So basically everything it took to drive the car off and all the money you agreed to pay for the car.

***918civic*** · 03-25-2008, 08:15 PM

I'm almost 100% sure most people on here don't include interest paid when it comes to OTD. Most post OTD as price they agree plus tax title and license. Interest alone is a few grand or so depending on rate.

For example, my 08 Si...

21,200 *price*
300 doc fees
385 or so for license plate
1,600 or so for taxes.

That would equal my OTD price. However if I take 5 years to pay off the car tack on around 2,700 for interest....so my complete OTD price is over 26,000 dollars. How many people post up that they paid 26+ OTD for their Si? Almost no one. But unless they paid 100 % cash then that amount it not 100% correct.

e60.deluxe · 03-25-2008, 08:23 PM

OTD should be every penny that you pay to the dealer besides financing.

on your finance contract it should say amount borrowed. that + your down payment + trade in value = OTD.

Dat fiyahhh · 03-25-2008, 08:32 PM

exactly b/c if finance charges would be included it be very different for everybody unless we all had the same intrest rate so OTD would mean how much u paid for the car + taxes +destination fee and etc...basically everything except for the intrest rates

biglobster · 03-25-2008, 08:38 PM

OTD prices aren't really a good comparison either because different states have different taxes. Best way to compare is probably actual cost of car + dealer fees. This should be excluding registration, title, taxes since they differ from state to state.

***cbondhonda*** · 03-26-2008, 11:06 AM

Quote:

Originally Posted by biglobster

OTD prices aren't really a good comparison either because different states have different taxes. Best way to compare is probably actual cost of car + dealer fees. This should be excluding registration, title, taxes since they differ from state to state.

They are a Good Comparision, and really the ONLY Comparisson for shopping local dealerships.

The fees and hidden costs vary dealer to dealer....and where as one car price might be 500 lower, the fees they may charge could end up making the total Drive Out...the actual Cash paid or financed amount....higher than the Hgiher car price dealer.

Not trying to be an ass here...but that is seriously bad advice, even if you are comparing out of state.

Chris

***cbondhonda*** · 03-26-2008, 11:09 AM

OTD Is the Following:

Car Price
Add On Prices (Accessories)
Taxes
DMV Fees
Doc Fees
Dealer Fees
Trade Value
Trade Payoff
Cash Down

Once you add or subtract all of these numbers...that is you final Drive Out or OTD Price...and is the MOST important number because that is the number you are actually paying for the car, wether you finance or pay cash...and in you local shopping should be the only thing that you go by.

IIIII · 03-26-2008, 11:19 AM

Quote:

Originally Posted by cbondhonda

OTD Is the Following:

Car Price
Add On Prices (Accessories)
Taxes
DMV Fees
Doc Fees
Dealer Fees
Trade Value
Trade Payoff
Cash Down

Once you add or subtract all of these numbers...that is you final Drive Out or OTD Price...and is the MOST important number because that is the number you are actually paying for the car, wether you finance or pay cash...and in you local shopping should be the only thing that you go by.

:werd:

My OTD for an 08 Si Sedan, no Navi

$22,943.40

tite681 · 03-26-2008, 01:47 PM

Quote:

Originally Posted by biglobster

OTD prices aren't really a good comparison either because different states have different taxes. Best way to compare is probably actual cost of car + dealer fees. This should be excluding registration, title, taxes since they differ from state to state.

Plus, people tend to add other dealer options such as extended warranty and car alarm in the finance office.

I never say OTD. I always say the sticker price minus the dealer discount.

lowerlevel · 03-26-2008, 01:53 PM

Quote:

Originally Posted by cbondhonda

OTD Is the Following:

Car Price
Add On Prices (Accessories)
Taxes
DMV Fees
Doc Fees
Dealer Fees
Trade Value
Trade Payoff
Cash Down

Once you add or subtract all of these numbers...that is you final Drive Out or OTD Price...and is the MOST important number because that is the number you are actually paying for the car, wether you finance or pay cash...and in you local shopping should be the only thing that you go by.

i look at my final otd the cost including the finance charge seeing as how im going to have to factor that into my cost..

pflugerville1 - MyMiniCity

qxcvr · 03-26-2008, 02:39 PM

Quote:

Originally Posted by 918civic

I'm almost 100% sure most people on here don't include interest paid when it comes to OTD. Most post OTD as price they agree plus tax title and license. Interest alone is a few grand or so depending on rate.

For example, my 08 Si...

21,200 *price*
300 doc fees
385 or so for license plate
1,600 or so for taxes.

That would equal my OTD price. However if I take 5 years to pay off the car tack on around 2,700 for interest....so my complete OTD price is over 26,000 dollars. How many people post up that they paid 26+ OTD for their Si? Almost no one. But unless they paid 100 % cash then that amount it not 100% correct.

Tax from state state has a HUGE effect. In Oregon, there is no vehicle tax of any kind, no inspections and the liscence fee, title fee and plate fee for 4 YEARS is only $168. an OTD price for a car sold in Oregon that is $2000 cheaper than the OTD price for a car sold in California would probably be the "same" price from the dealer's prospective. Thats all a guess, but it is probably along the right track. Plus some banks/dealers will charge like $500 for financing. This would also be part of an OTD price in my book.

JeShUa · 03-26-2008, 03:09 PM

Quote:

Originally Posted by cbondhonda

OTD Is the Following:

Car Price
Add On Prices (Accessories)
Taxes
DMV Fees
Doc Fees
Dealer Fees
Trade Value
Trade Payoff
Cash Down

Once you add or subtract all of these numbers...that is you final Drive Out or OTD Price...and is the MOST important number because that is the number you are actually paying for the car, wether you finance or pay cash...and in you local shopping should be the only thing that you go by.

So in essence you can buy a car for 1$ OTD?

NIGHTHAWKSI · 03-26-2008, 03:17 PM

ive always been against comparing "OTD" pricing.

to a person that live in NY where sales tax is 8%, it will cost considerably more for the car as compared to a person who lives in a state with no sales tax. same as DMV fees, shouldnt be included.

the best comparison should be the cost of the car, trade in value, accessories and any other "dealer" fees.
especially when comparing online, because you are comapring with peoepl across teh country, not just locals.

***Aldaris*** · 03-26-2008, 03:21 PM

I always tried negotiating an out-the door price when shopping for my Si.
This is what I wanted to pay for everything PERIOD! I made them work the math backwards. I got my Si for 21 flat OTD after EXTENSIVE shopping around many calls.
The number one mistake I see people make is tell the sales person " I want my payments to be around so and so a month" Thats very ignorant because you could have paid a lot less but they could have charged you bogus "fees" to match your amount. After the paper work I saw that the sale cost for the vehicle was 19200 plus tax and tittle and I need a new tag. Dealer fees were about $400 smacks I was very happy with the deal I got.
Tax in FL is 6%

***cbondhonda*** · 03-26-2008, 04:27 PM

Quote:

Originally Posted by JeShUa

So in essence you can buy a car for 1$ OTD?

Exactly....

Or even have the dealership owe you money....but in that case you go with whoever owes you the most...

***cbondhonda*** · 03-26-2008, 04:29 PM

Quote:

Originally Posted by tite681

Plus, people tend to add other dealer options such as extended warranty and car alarm in the finance office.

I never say OTD. I always say the sticker price minus the dealer discount.

Then someone like myself who sells cars but in a negotiating enviroment can fool you with saying, "Ill beat that price by 500.00...." then charge it back to you on the Finance side of the deal or in dealer prep fees....and you will be ok with that???

***cbondhonda*** · 03-26-2008, 04:33 PM

Quote:

Originally Posted by qxcvr

Tax from state state has a HUGE effect. In Oregon, there is no vehicle tax of any kind, no inspections and the liscence fee, title fee and plate fee for 4 YEARS is only $168. an OTD price for a car sold in Oregon that is $2000 cheaper than the OTD price for a car sold in California would probably be the "same" price from the dealer's prospective. Thats all a guess, but it is probably along the right track. Plus some banks/dealers will charge like $500 for financing. This would also be part of an OTD price in my book.

Of course tax has a huge effect....but that isnt a problem YOU would deal with in YOUR shopping...

Maybe if you are comparing YOUR price to the price someone paid in another state...it would make a difference.....but if you are shopping, and you shop in state / out of state etc....then all YOU need to concern yourself with on YOUR deal is who is giving you the Lowest OTD for your area....

you cant compare what you may pay to what someone else SAYS they paid 1k miles away.

You have to go with whoever gives you the lowest bottom line, all things considered, otherwise you risk fooling yourself into thinking you got a great deal when in all actually you got hammered....not to mention all the Honda Regional offers and so forth that YOU may have that the other guy couldnt get.

And on the Taxes, you will be titled and registered in your state anyway...I do it all the time for people all over the nation (Title / Taxes for their locality) so worrying you will pay a higher tax rate is unfounded.

Chris

***cbondhonda*** · 03-26-2008, 04:35 PM

Quote:

Originally Posted by Aldaris

I always tried negotiating an out-the door price when shopping for my Si.
This is what I wanted to pay for everything PERIOD! I made them work the math backwards. I got my Si for 21 flat OTD after EXTENSIVE shopping around many calls.
The number one mistake I see people make is tell the sales person " I want my payments to be around so and so a month" Thats very ignorant because you could have paid a lot less but they could have charged you bogus "fees" to match your amount. After the paper work I saw that the sale cost for the vehicle was 19200 plus tax and tittle and I need a new tag. Dealer fees were about $400 smacks I was very happy with the deal I got.
Tax in FL is 6%

Couldnt have put it better myself.

In Shopping your area or shopping the dealerships you are considering buying from, OTD is the only way to go....

***cbondhonda*** · 03-26-2008, 04:40 PM

Quote:

Originally Posted by NIGHTHAWKSI

ive always been against comparing "OTD" pricing.

to a person that live in NY where sales tax is 8%, it will cost considerably more for the car as compared to a person who lives in a state with no sales tax. same as DMV fees, shouldnt be included.

the best comparison should be the cost of the car, trade in value, accessories and any other "dealer" fees.
especially when comparing online, because you are comapring with peoepl across teh country, not just locals.

That stuff you mentioned.....the Car Cost / Trade Value / Accessories and Other fees....that basically IS OTD.....

and why would you compare what someone in FL got and you may be in CA??

You honestly would trust that number? Not saying NOT to use that to get an IDEA of what is real and what isnt....but still....dont use that to base what you pay off of.

Just because someone said or thinks they got a good deal doesnt mean they did. Thats why you need to shop and compare against what you are being offered by the people who actually sell the cars....and go with whoever gives you the best OTD deal...along with the easiest of doing business...

Following

03-25-2008, 07:52 PM	#1 (permalink)
lotro Junior Member Join Date: Mar 2008 Posts: 3 iTrader: 0 / 0%	TRUE definition of OTD Hello all, So i'm somewhat confused and i'm hoping those who are more knowledgable might be able to clarify things for me. It seems that many people have a misconception of what OTD really means, including myself. Some people will ADD the variables (tax, license, fee, destination, docs, etc. etc.) and some just won't include them. I've seen many people claim their OTD cost, but there are so many variations in figures coming from the owners of the same exact same models. (Person A) will state that they got their LX for $18,000 OTD. (Person B) with the exact identical car states that they got their LX for $16,500 OTD. (Person B) will rag on (Person A) for getting jipped. Keeping in mind they both paid $200 below invoice. So did (Person B) get a kick @ss deal, or did he +/- (variables) into his OTD cost, and now looks like a fool? So my question is... What is the true definition of OTD and could someone be willing to break it down for me? Thanks in advance. Last edited by lotro; 03-25-2008 at 08:02 PM.

03-25-2008, 08:15 PM	#3 (permalink)
*918civic* Bounty Hunter of Discord Join Date: May 2007 Location: Phoenix AZ Posts: 1,366 Kevin iTrader: 0 / 0%	I'm almost 100% sure most people on here don't include interest paid when it comes to OTD. Most post OTD as price they agree plus tax title and license. Interest alone is a few grand or so depending on rate. For example, my 08 Si... 21,200 price 300 doc fees 385 or so for license plate 1,600 or so for taxes. That would equal my OTD price. However if I take 5 years to pay off the car tack on around 2,700 for interest....so my complete OTD price is over 26,000 dollars. How many people post up that they paid 26+ OTD for their Si? Almost no one. But unless they paid 100 % cash then that amount it not 100% correct. __________________

03-26-2008, 11:09 AM	#8 (permalink)
*cbondhonda* Sales Guru/CarDeal Mentor Join Date: Jan 2007 Location: San Antonio Posts: 1,426 Chris iTrader: 0 / 0%	OTD Is the Following: Car Price Add On Prices (Accessories) Taxes DMV Fees Doc Fees Dealer Fees Trade Value Trade Payoff Cash Down Once you add or subtract all of these numbers...that is you final Drive Out or OTD Price...and is the MOST important number because that is the number you are actually paying for the car, wether you finance or pay cash...and in you local shopping should be the only thing that you go by. __________________ http://cbondhonda.com/blog <<<Check it out for current Gunn Honda "Going's On" and used Inventory updates!! And Dont forget my Buying Info forum on here! http://www.8thcivic.com/forums/new-c...g-information/ "Honda builds cars just so they can put its engines in them. Honda will always be a leader in powertrain.”

03-26-2008, 03:21 PM	#15 (permalink)
*Aldaris* TMV Join Date: Aug 2007 Location: Ft Lauderdale Age: 20 Posts: 887 Carlos! iTrader: 1 / 100%	I always tried negotiating an out-the door price when shopping for my Si. This is what I wanted to pay for everything PERIOD! I made them work the math backwards. I got my Si for 21 flat OTD after EXTENSIVE shopping around many calls. The number one mistake I see people make is tell the sales person " I want my payments to be around so and so a month" Thats very ignorant because you could have paid a lot less but they could have charged you bogus "fees" to match your amount. After the paper work I saw that the sale cost for the vehicle was 19200 plus tax and tittle and I need a new tag. Dealer fees were about $400 smacks I was very happy with the deal I got. Tax in FL is 6% __________________ "I think I've become like one of the others"

03-25-2008, 07:57 PM	#2 (permalink)
Gonzo You're doing it wrong!! Join Date: Dec 2005 Location: Richmond, VA Age: 21 Posts: 5,467 iTrader: 5 / 100%	I always thought of OTD as all the money you agreed to pay both for the initial purchase and all the money you agreed to owe which includes any future payments AND financing for those payments AND sales tax and any other drive off costs. So basically everything it took to drive the car off and all the money you agreed to pay for the car.

03-25-2008, 08:23 PM	#4 (permalink)
e60.deluxe Senior Member Join Date: Apr 2007 Location: Lake Forest, CA Age: 22 Posts: 4,704 iTrader: 3 / 100%	OTD should be every penny that you pay to the dealer besides financing. on your finance contract it should say amount borrowed. that + your down payment + trade in value = OTD.

03-25-2008, 08:32 PM	#5 (permalink)
Dat fiyahhh Senior Member Join Date: Feb 2008 Location: MA Age: 19 Posts: 251 Q iTrader: 3 / 100%	exactly b/c if finance charges would be included it be very different for everybody unless we all had the same intrest rate so OTD would mean how much u paid for the car + taxes +destination fee and etc...basically everything except for the intrest rates

03-25-2008, 08:38 PM	#6 (permalink)
biglobster Member Join Date: Aug 2006 Location: Richmond VA/MA Posts: 37 Mike iTrader: 0 / 0%	OTD prices aren't really a good comparison either because different states have different taxes. Best way to compare is probably actual cost of car + dealer fees. This should be excluding registration, title, taxes since they differ from state to state.

03-26-2008, 03:17 PM	#14 (permalink)
NIGHTHAWKSI Senior Member Join Date: Nov 2006 Location: long island Posts: 10,176 iTrader: 12 / 100%	ive always been against comparing "OTD" pricing. to a person that live in NY where sales tax is 8%, it will cost considerably more for the car as compared to a person who lives in a state with no sales tax. same as DMV fees, shouldnt be included. the best comparison should be the cost of the car, trade in value, accessories and any other "dealer" fees. especially when comparing online, because you are comapring with peoepl across teh country, not just locals.