‘Outdoor pricing’ is the phrase you should know as a first-time dealership buyer – it can save you on monthly payments

A RETIRED sales manager over 40 says pricing “out the door” is the best way to save on payments.

Being a “paying buyer” tells sellers that they can increase the sales price through other means.

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Ray Shefska spent 43 years as a sales manager before retiring to focus on building a YouTube channel with his son, Zach, to help people avoid being bothered by common dealership scams.

Now, the father-son duo has created CarEdgea resource for new or used car buyers to explore their options, learn more about financing, and receive expert help with the confidence of knowing they won’t be scammed.

On their social media platforms, the two even post free car buying tips, discuss common scams or tricks that salespeople can try to earn a commission, and phrases to avoid saying.

They also answer specific user questions and help buyers gain the confidence they need to get the best deal.

In a recent exclusive interview with The US Sun, Ray and Zach discussed the first thing buyers should negotiate with a seller before discussing monthly payments: the walk-in price.

In his experience, Ray has seen his fair share of “paying buyers” – who base their purchasing experience on how much they will pay monthly.

As a seller, this is great news because it can increase the price of the car and extend the loan term to keep the monthly costs at a specific price.

Instead, Ray said, discuss the external price.

“Know the words ‘outdoor’ price, for sure,” Ray said.

“In fact, understand your budget because 85% of all people finance their vehicles based on the monthly payment.”

The outside price (OTD), Zach reinforced, is the total price of the vehicle.

This would include the sales price, dealer add-ons, taxes, registration fees, and delivery and shipping fees if applicable.

On a video posted on his YouTube channel (@CarEdge), the two discussed DTA in more detail.

“If you were going to write a check for the car that day, you would want to know what number to write on that check,” he said.

“That would be the external price.”

As part of the free online shopping guide, their website has a OTD Calculator This helps determine the price to negotiate when purchasing a car.

Zach noted that the OTD price is also important to establish when leasing a vehicle, as the sales price of the leased vehicle determines the monthly payment.

Expert car rental advice

Ray and Zach Shefska, the father-son duo that make up CarEdge, spoke with Sun Motors USA reporter Kristen Brown in an exclusive interview about their top tips before signing a new car lease.

Leasing a car may be a more viable option for some rather than financing with an auto loan.

Leasing a car for 24 to 36 months can be attractive to many because the monthly payments are typically lower than loan payments, although there are some restrictions, such as a mileage allowance.

At the end of the lease, people can purchase the vehicle at a reduced price or they can return it to the dealership and lease another car.

Before entering into a lease, Ray offered some important tips to consider, drawn from his 40 years of experience as a sales manager at several dealerships:

1. Learn the interest part of the rent — or the “money factor” — to understand how much interest you’ll pay and how much that adds up to in total.
2. Negotiate the sales price before discussing monthly payments – the cheaper the car’s sales price, the cheaper your payments will be.
3. Accept the premise that you will always have to make a payment, so you can have a good car for a cheaper price or a smaller car for a higher price.

Read more here.

Ray said the dealership markups that make up the OTD price can and should be negotiated to help reduce the overall cost.

It’s also important to know the difference between MSRP and OTD.

The MSRP stands for Manufacturer’s Suggested Retail Price, although dealerships often add certain costs to the consumer to make a profit.

“You need to ask for outside pricing because a dealer might say the MSRP is $63,000, but add-ons can quickly add up to around $83,000,” Zach said.

Certain add-ons, such as warranties, ceramic coatings, or other features, may even be declined as part of the price since the dealership paid for them before they were sold.