OTD Edge Formula:
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OTD (Out-the-Door) Edge represents the total cost of a vehicle purchase, combining the negotiated price with all additional fees. It helps buyers understand the true cost of their vehicle purchase.
The calculator uses the OTD Edge formula:
Where:
Explanation: The equation simply sums your negotiated price with all additional fees to give you the total amount you'll pay when taking delivery of the vehicle.
Details: Calculating the OTD Edge is crucial for budgeting and comparing offers from different dealerships. Some dealers may advertise lower prices but make up the difference with higher fees.
Tips: Enter the negotiated price in dollars (without commas), then enter all additional fees. Be sure to include all fees the dealer has quoted you for an accurate OTD Edge calculation.
Q1: What fees should be included?
A: Include all fees the dealer charges - documentation fees, title fees, registration fees, and any other mandatory charges.
Q2: Should taxes be included?
A: Yes, if taxes are being handled by the dealer, they should be included in the fees. If you'll pay taxes separately, don't include them.
Q3: How does OTD Edge help in negotiations?
A: It lets you compare total costs between dealers, not just vehicle prices. Some dealers may have lower prices but higher fees.
Q4: What's a good OTD Edge?
A: This depends on the vehicle and market conditions. Research fair prices for your specific vehicle to know what's reasonable.
Q5: Can fees be negotiated?
A: Some fees (like documentation fees) may be negotiable, while others (like government fees) typically aren't.