# The Before the Lot method (full text) Source: https://beforethelot.com/method. Version 1.0.0, as of 2026-10-27. License: CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). Credit: The Before the Lot method, Volocent Labs LLC, beforethelot.com. Educational estimate, not financial, legal or tax advice. The Before the Lot method is a sequence for buying a car in which most of the deal is settled at home, in writing, before any dealer speaks. A dealer's worksheet has four squares: trade-in, price, down payment and monthly payment. The method locks three of them at home, each to a document: the trade-in to written offers, the down payment to an amount chosen from the buyer's own budget, and the financing to a pre-approval. That leaves one open number, the price, and only as an out-the-door total. Before the first quote arrives the buyer sets four numbers: a budget ceiling, a fair price, an opening offer and a walk line. Dealers then quote itemized out-the-door totals by email, compared line by line. At the desk the trade-in comes up last, the payment is the arithmetic that follows, and the walk line decides. After the purchase, a payoff plan shows what extra payments do to the months and the interest. ## The seven stages ### 1. See the four-square for what it is Many dealerships work a deal on a sheet split into four squares: the trade-in, the price of the car, the down payment and the monthly payment. The squares are connected, so a number given up in one can be taken back in another, and four moving numbers are hard to follow across a desk. A dealership also tends to earn more from financing and the products sold with it than from the car's price. Seeing the sheet this way is the starting point: three of the squares can be settled at home with documents, which leaves one number to discuss at the dealership. What to collect: - The car: Year, make and model, and whether it's new or used. A trim level if one is in mind. - State: The state where the car will be registered. Tax, doc-fee rules and title fees follow it. - Trade-in or not: Whether a current car will be sold or traded as part of the purchase. What it decides: A plan with a place for each square: trade-in, down payment and financing marked to be locked at home, and price marked as the one open number. Done when: Each of the four squares has a status: three to be locked at home (trade-in, down payment, financing) and price left open. ### 2. Lock three squares at home, in order Each of the three squares is fixed to a document before any dealer is involved. The trade-in goes first: two or three written offers from buyers such as online car buyers or a lender's partner program, with their expiry dates. The highest offer is the floor any dealer appraisal is measured against, and in many states a dealer trade also lowers the sales tax, which changes what each offer is worth. The down payment comes second, chosen from the buyer's own budget; it lowers the amount borrowed but not the price of the car. Financing comes third: a pre-approval from a bank or credit union gives an APR, a term and a maximum amount, and that rate is the one any dealer financing is compared with, on the same term. What to collect: - Written trade-in offers: Each offer's amount and expiry date, from two or three buyers. - Payoff on the current car: What is still owed on the car being sold or traded, or zero. - Down payment: The cash amount set aside for the purchase, chosen from the buyer's own budget. - Pre-approval: The lender's APR, term in months, maximum amount and expiry date. - State: Whether the state taxes the price minus the trade-in changes what a dealer trade is worth. The three locks, in order: - trade: Two or three written offers for the current car, each with its expiry date. Result: The trade-in floor (the highest written offer) and the equity after any payoff, which can be negative. - down: A down payment amount chosen from the buyer's own budget. Result: A fixed cash amount that lowers what is borrowed and is not discussed until the price is agreed. - financing: A pre-approval from a bank or credit union. Result: The APR, term and maximum amount that dealer financing is compared against. What it decides: Three locked squares: a trade-in floor and equity, a fixed down payment, and a pre-approved APR and term. Done when: The trade-in floor, the down payment and the pre-approved APR and term are each written down with the document behind them, and the offers and pre-approval are still within their expiry dates. ### 3. Leave one square open: price, as an out-the-door total With three squares locked, price is the only number left to discuss, and it is discussed only as an out-the-door total: the vehicle price plus the doc fee, any dealer add-ons, sales tax, and title and registration. A vehicle price alone can be offset by fees or add-ons on another line, so two quotes compare fairly only as totals. This stage also gathers what the maker is offering on the car, such as cash back or a promotional APR, and compares the two over the same term at the pre-approval rate, because the choice changes the amount financed and, in some states, the tax. What to collect: - The car: Year, make, model and trim, new or used. - State and tax rate: The state, and the local sales tax rate where it is known. - Maker's offers: Any cash back or promotional APR listed on the maker's official offers page, with its term. - Pre-approval rate and term: Used on the cash-back side when the two offers are compared. What it decides: The open square defined as an itemized out-the-door total, an estimate of that total for the car, and the cash-back and promotional-APR choices compared by total cost. Done when: There is an out-the-door estimate for the car with each line shown, and any maker offer has been compared by total cost over the same term. ### 4. Set the numbers before any dealer speaks Four numbers are set at home and written down. The budget ceiling is the highest out-the-door total the locked squares and a monthly amount that fits the budget allow. The fair price comes from research on what similar cars sell for nearby. The opening offer is a first out-the-door number below the fair price. The walk line is the out-the-door total above which the buyer leaves; it sits below the ceiling and close to the best real quote, and it also covers a deal whose numbers change from what was confirmed in writing. Setting them before the first quote matters because a first number written high on purpose works as an anchor, and every later number gets judged against it. What to collect: - Monthly amount that fits the budget: The highest monthly payment the buyer's budget allows. It stays with the buyer and isn't told to a dealer. - APR and term: From the pre-approval locked in stage 2. - Down payment: From stage 2. - Trade-in equity: From stage 2; negative when more is owed than the floor offer. - Fair price research: What similar cars sell for nearby, from pricing guides and listings. - State: For tax and fees inside the out-the-door total. What it decides: Four written numbers: budget ceiling, fair price, opening offer and walk line, all as out-the-door totals. Done when: The ceiling, fair price, opening offer and walk line are written down as out-the-door totals, with the opening offer at or below the fair price and the walk line at or below the ceiling. ### 5. Make dealers compete in writing Several dealers are asked by email for an itemized out-the-door quote on a specific car, identified by stock number or VIN. Each quote is read line by line: the doc fee is checked against the state's rule, dealer add-ons are listed separately with their prices, and the tax line is checked against the state and local rate. Quotes are ranked by their totals and measured against the walk line. A lower written quote can be shared with other dealers to see whether they match it, and the chosen dealer confirms the final total in writing before the visit. Dealers whose quotes don't fit get a short reply saying so. What to collect: - Dealers and cars: Business names of the dealers and the stock number or VIN of each car. No personal details of the buyer. - Quotes: Each quote's line items: vehicle price, doc fee, add-ons, tax, title and registration, and the total. - State: For the doc-fee rule and the tax check. - Walk line: From stage 4. - Decision date: The date by which a decision will be made, given in the emails. What it decides: Quotes ranked by out-the-door total, each marked over or under the walk line, with doc fees checked against the state's rule and add-ons separated; and one quote confirmed in writing, or none yet. Done when: A dealer has confirmed in writing an itemized out-the-door total at or under the walk line, or no quote is under it and the search continues. ### 6. At the desk At the dealership the written out-the-door total is the reference for everything. The price is settled before the trade-in comes up, so neither number can hide in the other, and the down payment isn't discussed until the price is agreed. A monthly payment isn't named, because it is the arithmetic of the amount financed, the APR and the term. Worksheets aren't initialed. The finance office's products, such as a service contract or GAP, are optional and are priced as totals, not monthly amounts. Dealer financing is compared with the pre-approval on the same term. If the total is above the walk line, or differs from what was confirmed in writing, the walk line decides. What to collect: - Confirmed out-the-door total: The total the dealer confirmed in writing, with its line items. - Walk line: From stage 4. - Pre-approval: APR, term and amount, for comparing any dealer financing offer. - Trade-in floor: The best written offer, for comparing the dealer's appraisal. - Finance-office products: Each product offered, with its total price and whether it is added to the loan. What it decides: A final contract whose lines match the written out-the-door total, the locked squares and any products chosen at their total prices; or a decision to leave. Done when: The contract's price, fees, add-ons, APR, term and amount financed match the written deal line by line before signing, or the buyer has left. ### 7. After the lot: a payoff plan Once the car is bought, the loan has an amount, an APR and a term. Early payments carry more interest, so money paid on top of the regular payment and applied to principal shortens the loan and lowers the total interest, and the effect builds on itself. A payoff plan shows the months and interest with and without an extra amount, including months when nothing extra is paid. Lenders differ in how they apply extra payments and whether they charge a prepayment penalty. A refinance offer can be compared with the current loan by total remaining cost. What to collect: - The loan: Amount financed, APR, term in months and the payments made so far. - Extra each month: An extra amount toward principal, and how many months it is likely to be paid. - Refinance offer: Any new rate and term on offer, with its fees. What it decides: A payoff date and total interest with and without the extra amount, and a refinance offer compared by total cost where there is one. Done when: The payoff date and total interest are known for the planned extra amount, and the lender's handling of extra payments and any prepayment penalty is confirmed. ## The sixteen guides ### How the four-square works against you URL: https://beforethelot.com/method/four-square What to do: Lock your trade-in, financing and down payment at home, so price is the only number left to discuss at the dealership. At many dealerships, you'll eventually see a sheet of paper split into four squares: your trade-in, the price of the car, your down payment and your monthly payment. It looks like a summary. It works more like a control panel. Each square is a lever, and they're all connected. Give a little on the trade, and the price can move. Lower the payment, and the term can quietly stretch. While you watch one square, the deal can shift in another, and four moving numbers are hard to track across a desk after an afternoon of test drives. It also helps to know where a dealership tends to earn its money. On a new car, the margin in the price itself is often modest. More of the profit usually comes from financing and the products sold with it, and later from service. So a deal can look like a win on price and still work well for the store. None of this needs anyone to be dishonest. It's a system, and the people in it are doing their jobs. Before the Lot turns the sheet around. At home, you lock three squares to real numbers: - Trade-in to written offers you already have - Down payment to an amount you chose - Financing to your own pre-approval That leaves price as the one open number, and you win it by having dealers compete on out-the-door quotes. Your monthly payment is simply the math that follows. ### The walk-around appraisal URL: https://beforethelot.com/method/silent-devaluation What to do: Get your written offers before you visit, and let the dealer's appraisal be the number to beat, not the starting point. When you mention a trade-in, someone will usually take your keys and walk around your car. They run a hand over a door ding, look closely at the tires, note a chip in the windshield, maybe ask about a warning light. Often they say very little while they do it. That walk-around is a real part of appraising a car. It's also a quiet conversation. By the time the number comes back, you've watched someone find every flaw, and a low offer feels earned. It's hard to push back on a number you just saw justified, one scratch at a time. Here's how that can play out. Say an online buyer has already offered you $14,000 in writing. The dealer's appraisal comes back at $12,500, with a list of reasons. Without the written offer, $12,500 might sound fair. With it, you know the gap is $1,500, and you know someone will actually pay the higher number. The answer isn't to argue about scratches. Your car's condition is what it is, and other buyers will see the same dings. The answer is to arrive with offers already in hand, so the appraisal has a clear number to beat. If the dealer beats your best offer, great. If not, you sell the car to whoever made that offer, and nothing about the deal on your new car has to change. ### Get three written offers URL: https://beforethelot.com/method/three-offers What to do: Get two or three written offers for your car, note each expiry date, and lock the trade-in square to the best one. An estimate tells you what a car like yours might be worth. A written offer tells you what someone will actually pay for yours. That difference matters, because an estimate is easy to argue with and an offer isn't. Getting offers is mostly done online now. Services like CarMax, Carvana and KBB Instant Cash Offer ask about your car's mileage, features and condition, and give you an offer you can take in. Some lenders and credit unions have partner programs that work the same way. A few tips: - Answer the condition questions honestly. Offers are usually confirmed by an inspection, and a rosy description only moves the disappointment to later. - Write down each expiry date. Offers don't last forever, so time them for the week you plan to buy. - Know your payoff. If you still owe on the car, your equity is the offer minus what you owe. One wrinkle when you compare. In many states, trading in at the dealer lowers the sales tax on your new car, because tax is charged on the price minus the trade. At a 6% rate, a $13,500 dealer trade also saves you $810 in tax, so it's worth about $14,310 to you, which is more than a $14,000 offer from a buyer who can't give you that tax break. Check how your state handles trades before you decide. Lock the trade-in square to your best offer. It's your floor. ### Disclose the trade last URL: https://beforethelot.com/method/trade-last What to do: If asked about a trade before the price is settled, say you'd like to agree on the car's out-the-door price first. If a dealer knows about your trade-in from the start, the trade and the price become one conversation. That gives a deal room to move without you noticing. Here's how it works in round numbers. Say a dealer would sell you the car for $31,000 and value your trade at $14,000. What you'd actually pay is the difference, $17,000. Now imagine they show you $15,000 for your trade instead, which feels like a win, while holding the price at $32,000. The difference is still $17,000. Nothing changed except how it felt. They could even show $15,500 for the trade and $33,000 for the car, and you'd pay $500 more while feeling good about the trade. The simplest way to keep this clear is to keep the two numbers apart. Negotiate the car's out-the-door price as if there's no trade at all. Once that number is in writing, mention the trade and ask what they'll give you for it. Because you already have written offers, you know your floor. If the dealer beats it, take their number. If not, sell the car to whoever made the best offer. This isn't about hiding anything. You're taking one conversation at a time, in an order that keeps each number visible. A dealer can move either the price or the trade to make a deal work, and it pays to know which one moved. ### The first pencil URL: https://beforethelot.com/method/numbers-meant-to-offend What to do: Ignore the first pencil. Measure every number against your best written out-the-door quote and your walk line. At many dealerships, the first numbers you see are written high on purpose: a high price, a big down payment, a high monthly payment. In the business it's sometimes called the first pencil. You're not really expected to accept it. You're expected to react to it. A first number works as an anchor. Everything after it gets judged against it, rather than against what the car actually sells for. When you push back and the number drops, it feels like progress, because compared with the anchor, it is. A quick example. Say similar cars are selling nearby for about $33,000 out the door. The first sheet shows $36,000. After an hour of back and forth, you get it down to $34,500. You've saved $1,500 against the first pencil, and it feels like a good afternoon. But you're still $1,500 above what the car sells for elsewhere. That first number can feel insulting, and that's part of how it works. It helps to treat it as a ritual rather than a judgment of you. Nothing about it is personal, and you don't need to argue with it. The way out is to bring your own anchor. If you already have itemized out-the-door quotes from other dealers, the first pencil stops mattering. The only comparisons that count are your best written quote and the walk line you set at home. ### Out-the-door is the only number URL: https://beforethelot.com/method/out-the-door What to do: Ask every dealer for an itemized out-the-door quote in writing, and rank quotes by that total, never by the vehicle price. The out-the-door price is everything you pay to drive the car away: the vehicle price plus every fee, add-on, tax and registration charge. It's the only number that compares two dealers fairly, because anything less can be moved from one line to another. An itemized quote usually has these parts: - Vehicle price, the number most ads show - Doc fee, for processing paperwork; some states cap it, others don't - Dealer add-ons, such as window etching, nitrogen tires or protection packages - Sales tax, set by your state and often your county - Title and registration, the state's charges to put the car in your name Here's why the total matters. Dealer A lists the car at $30,500, with a $499 doc fee and $1,295 in add-ons, for $32,294 before tax and title. Dealer B lists the same car at $31,200, with a $150 doc fee and no add-ons, for $31,350. Dealer B's vehicle price was $700 higher, and its deal is $944 lower. Dealers often won't remove a doc fee, but they can lower the vehicle price to offset it. Add-ons are worth questioning one by one. Taxes and state fees are what they are. When you request quotes, ask for every line in writing. The quote tracker adds them up and ranks dealers by the total, so you're always comparing the same thing. ### The walk line URL: https://beforethelot.com/method/walk-line What to do: Set your walk line before the first quote arrives. If the total at the desk is above it, or differs from what was agreed, leave. The walk line is the out-the-door price above which you get up and leave. You set it at home, before any dealer gives you a number, and you write it down. Setting it early matters. Once you've spent an afternoon at a dealership, driven the car and pictured it in your driveway, every number starts to look reasonable. The walk line is a decision made by the calmer version of you, at the kitchen table, for the version of you sitting at the desk. A sensible walk line sits below your affordability ceiling and close to your best real quote. Say the app shows a ceiling of $34,000 out the door, and your best written quote is $32,900. You might set your walk line at $33,500. At the desk, the total comes back at $34,200, with a fee nobody mentioned before. That's $700 over your line, so you thank them and go. No debate needed. The walk line also covers a deal that changes. If the numbers at the desk differ from what a dealer confirmed in writing, that alone is a reason to leave, even if the new total is under your line. Leaving doesn't have to be dramatic. Sometimes a better offer follows you home, and sometimes it doesn't. Either way, the point is the same: you never sign a number you decided against at home. ### Why they go to down payment first URL: https://beforethelot.com/method/down-payment-first What to do: When asked how much you're putting down, say you'll decide that once the out-the-door price is agreed. Early in many dealership conversations, someone asks how much you're planning to put down. It sounds like a simple logistics question. It's also one of the most useful things a dealer can learn about you. Your down payment is cash you actually have. Knowing it tells the dealer how much room there is, and once it's on the table, the talk tends to slide toward a monthly payment: with this much down, the payment would be this much. From there, price, trade and term can all get folded into one figure. A down payment is genuinely good for you. It lowers the amount you borrow, the interest you pay and the chance of owing more than the car is worth. At 7% for 60 months, every $3,000 you put down lowers the payment by about $59 a month. But it doesn't change the price of the car by a dollar. Price is price, whatever you put down. So decide your down payment at home, from your own budget, and lock the square to that number. At the dealership, it just isn't the first topic. If someone asks, you can say you'll decide how much to put down once the out-the-door price is settled. If you're asked for a bigger down payment to make the numbers work, take that as a sign the price or the payment is the problem, not your cash. ### Loan-to-value and being underwater URL: https://beforethelot.com/method/underwater What to do: Check your loan-to-value at signing and the month you go above water. More down or a shorter term improves both. Loan-to-value, or LTV, is what you owe divided by what the car is worth. At 100%, the loan and the car are even. Above 100%, you're underwater: if you sold the car, or it was totaled, the money wouldn't cover the loan. Cars tend to lose value fastest early on, while a loan pays down more slowly at first, because early payments carry more interest. That's how buyers end up underwater on a car they're happy with. Here's a hypothetical. A $30,000 car, $2,000 in tax and fees, nothing down, financed at 7% for 72 months. You owe $32,000 on day one, an LTV of about 107%. The app assumes a new car loses 20% of its value in year one and 15% a year after that. On that assumption: - After one year: you owe about $27,550 on a car worth about $24,000 - After three years: you owe about $17,670 on a car worth about $17,340 - After four years: you owe about $12,190 on a car worth about $14,740 That loan stays underwater for just over three years. Put $6,000 down instead and you'd owe $26,000, an LTV of about 87%, and on the same assumption you'd never be underwater. Being underwater matters most if life changes and you need to sell, or if the car is totaled. A bigger down payment and a shorter term are the two levers that shrink it. ### Payment is an output URL: https://beforethelot.com/method/payment-output What to do: Don't name a monthly payment at the dealership. Agree on the out-the-door price, then let your APR and term set the payment. A monthly payment isn't something you negotiate. It's a result. Three inputs decide it: the amount you finance, the interest rate (APR) and the term in months. Change any one and the payment changes. Fix all three and the payment is just arithmetic. That's why "What monthly payment are you looking for?" is such a common question. Once you name a payment, the other numbers can be arranged to hit it, and it's hard to see which one moved. Term is the quiet one. Here's what a $594 monthly payment buys at 7%: - 60 months: about $30,000 financed - 72 months: about $34,800 financed - 84 months: about $39,400 financed Same payment, nearly $9,400 more borrowed, and two extra years of payments. A buyer who says "I can do about $600 a month" can be shown a pricier car, or a higher price on the same car, and the payment won't warn them. On the canvas, the payment square is read-only for this reason. You lock the APR and term to your pre-approval, you lock the down payment and trade at home, and you win the price with competing quotes. The payment is what's left, shown so you can check it fits your budget. If someone asks what payment you want, you can simply say you're shopping by out-the-door price. ### A few dollars a month adds up URL: https://beforethelot.com/method/fourteen-dollars What to do: Turn every monthly change into a total. Multiply it by the months in the loan before you agree to it. Fourteen dollars a month sounds like nothing. It's a lunch, maybe two coffees. That's exactly why the monthly payment is the easiest place for cost to slip into a deal. Multiply it out. $14 a month over 72 months is $1,008. Over 84 months it's $1,176. When a payment goes up "just a little" at the desk, from a slightly higher rate, a small add-on or a fee, the real cost is that bump times every month of the loan. Stretching the term works the same way in reverse. A longer term makes the payment smaller, which feels like relief, but you pay interest for longer. Take $30,000 at 7%: - 60 months: about $594 a month, about $5,640 in total interest - 84 months: about $453 a month, about $8,030 in total interest The 84-month loan lowers the payment by about $141 a month and costs about $2,390 more in interest. It also keeps you underwater longer, because the balance falls more slowly while the car keeps losing value. Long terms aren't always wrong. Sometimes a lower payment is what makes a budget work. But it should be a choice you make with both numbers in front of you, not a fix offered to make a pricier deal fit. The habit that protects you is simple: whenever a monthly number changes, ask what the total is. ### Bring your own financing URL: https://beforethelot.com/method/own-financing What to do: Get pre-approved by a credit union or bank before you shop. Use dealer financing only if it beats that APR on the same term. When a dealer arranges your loan, they send your application to lenders they work with. A lender approves you at a rate, and the dealer may be allowed to offer you a somewhat higher rate and keep part of the difference for arranging the loan. That's a normal part of the business, and it's one reason financing can be where a deal earns the most. You don't need to argue about any of that. You just need your own number first. Before you shop, apply for a pre-approval with a credit union or bank. You'll get an APR, a maximum term and a maximum amount, usually with an expiry date. Lock the financing square to it. Now the conversation is simple. If the dealer can beat your APR on the same term, in writing, take their loan. If not, use yours. Either way, you're choosing the better of two real offers. Here's what the difference can mean. On $30,000 over 60 months, 6% is about $580 a month and 7.5% is about $601. That's about $21 a month, or about $1,270 over the life of the loan. Across a desk, $21 a month can sound like nothing. Over five years, it adds up. One caution: compare the same term. A rate quote that sounds better can come attached to a longer loan. Rate, term and amount financed should all match before you call one offer better. ### Rebate or low APR? URL: https://beforethelot.com/method/rebate-vs-apr What to do: Compare the total cost of each choice over the same term, using your own pre-approval rate on the rebate side. New-car incentives often come as a choice: take cash off the price, or take a low promotional interest rate. Usually you can't have both. Which is better depends on the numbers, not on which one sounds bigger. The fair way to compare is two full loans over the same term: - Rebate: the price minus the rebate, financed at your own pre-approval rate - Low APR: the full price, financed at the promotional rate Whichever costs less in total wins. Here's a hypothetical. A $32,000 car over 60 months, with a choice of a $3,000 rebate or a 2.9% promotional rate, and a 6% pre-approval: - Rebate: $29,000 at 6% is about $561 a month, about $33,639 in total - Low APR: $32,000 at 2.9% is about $574 a month, about $34,415 in total Here the rebate wins by about $776. Change the inputs and the answer can flip. A smaller rebate, a lower promotional rate or a higher pre-approval rate all push toward the low APR. That's why the calculator runs both loans with your numbers instead of offering a rule of thumb. A few things to check. Promotional rates may require strong credit or a shorter term, so confirm you'd qualify. In some states, sales tax is charged on the price before the rebate, which trims its value a little. And either way, take the incentive after you've settled the price, not instead of settling it. ### Hold off on initialing the worksheet URL: https://beforethelot.com/method/initial-trick What to do: Don't initial or sign worksheets at the desk. Sign only the final paperwork, after checking every number against your deal sheet. At some point, the salesperson may slide the worksheet over and ask you to initial a number, or sign at the bottom, so they can take it to their manager. It's framed as a formality, just to show you're serious. The worksheet isn't the contract. What the initials do is create a feeling of commitment. Once your pen has touched a number, walking away feels like going back on your word, even though nothing has been agreed. And when the sheet comes back with a counteroffer, you're negotiating from a number you already initialed, often a monthly payment rather than a price. People like to stay consistent with what they've already said yes to. A small yes makes the next, bigger yes easier. That's ordinary human nature, and the process happens to fit it well. You can be friendly and still decline. Something like: "I'm happy to wait while you check with your manager, but I'll hold off on initialing anything until the final paperwork." If they need something to take back, you can tell them your out-the-door number out loud. Your number doesn't need your initials. When the final paperwork arrives, read it line by line against your deal sheet: price, fees, add-ons, APR, term and amount financed. If anything differs from what you agreed, that's the moment to stop and ask. Your walk line still applies, right up to the last signature. ### The F&I office URL: https://beforethelot.com/method/fi-office What to do: Ask for each product's total price, not its monthly cost. Decline what you don't need, and price GAP or a warranty elsewhere first. After you agree on a price, you'll usually meet the finance and insurance manager, often called F&I. Their job is to complete the paperwork and the loan, and to offer optional products. Those products can be a meaningful part of what a dealership earns on a sale. The common ones: - Service contract (extended warranty): pays for certain repairs after the factory warranty ends - GAP: covers the difference between what insurance pays on a totaled car and what you still owe - VIN etching, nitrogen tires, paint and fabric protection: small extras, often priced well above what they'd cost elsewhere - Tire and wheel, key replacement, prepaid maintenance: sometimes useful, depending on your car and habits Products are usually presented as a monthly amount, which is where the math gets slippery. A $2,000 service contract rolled into a 72-month loan at 7% adds about $34 a month, and you'd pay about $2,455 for it in the end, because you pay interest on it too. Ask for the total. GAP deserves a fair hearing. With little down or negative equity rolled in, you might owe 110% of the car's value, and a total loss could leave you paying for a car you no longer have. GAP can be worth having then. Your own auto insurer or lender often sells it for less, so price it there first. These products are optional. If anyone says one is required for your loan, ask to see that in writing from the lender. ### Paying extra URL: https://beforethelot.com/method/paying-extra What to do: If your budget allows, add a set extra amount to each payment, marked for principal, and confirm the loan has no prepayment penalty. Each car payment covers two things: the month's interest and a piece of the balance, called principal. Interest is charged on what you still owe, so early in the loan, when the balance is highest, more of each payment goes to interest. As the balance falls, more goes to principal. That's amortization. Take $30,000 at 7% for 60 months, about $594 a month. In the first month, about $175 is interest and about $419 pays down the loan. By the last payment, the interest is only a few dollars. Money you pay on top of the regular payment, applied to principal, goes straight to the balance. A smaller balance means less interest next month, so more of your regular payment goes to principal too. The effect builds on itself. On that same loan, adding $100 a month pays it off in 50 months instead of 60 and saves about $970 in interest. You don't have to be perfect, either. Paying extra in most months and skipping when money is tight still brings the payoff date forward. The planner on this tab shows both. A few practical checks: - Ask your lender how to apply extra to principal. Some apply it to the next payment instead unless you say otherwise. - Check for a prepayment penalty. Many auto loans don't have one, but confirm yours. - Keep an emergency fund first. Money paid into a loan is hard to get back if you need cash. ## Desk scripts What buyers can say at the desk, and when. - When: You're asked what monthly payment you're looking for. Say: "I'm not shopping by payment. My financing is already set, so I'm comparing out-the-door prices. What's your best out-the-door number on this car?" - When: You're asked about a trade-in before the price is settled. Say: "I'd like to settle the price of this car first, as a deal on its own. Once we agree on the out-the-door number, I'm happy to talk about anything else." - When: You're asked how much you're putting down. Say: "I'll decide that once we've agreed on the out-the-door price. Let's start there." - When: You're asked to fill out a credit application before you've agreed on a price. Say: "I'm already pre-approved, so there's no need to run my credit to agree on a price. If you'd like to try to beat my rate after that, I'm open to it." - When: The numbers at the desk don't match what was agreed in writing. Say: "This total is different from the out-the-door price you confirmed in writing. If you can match the written number, I'm ready to go ahead. If not, I'll head out." - When: The quote includes dealer add-ons you didn't ask for. Say: "I didn't ask for these add-ons. Could you take them off the price, or show me the same car without them?" - When: You're asked to initial or sign the worksheet so it can go to the manager. Say: "I'll hold off on initialing anything until the final paperwork. You're welcome to take my out-the-door number to your manager as it is." - When: You're told the price is only good today. Say: "I understand. I don't make this kind of decision under a deadline. If the price is gone tomorrow, that's okay with me." - When: You're told the dealer can get you a better rate. Say: "Great, I'd like to see it. Please show me the APR in writing on the same term and amount as my pre-approval, with the out-the-door price unchanged." - When: The F&I office offers a warranty, protection plan or other product. Say: "No, thank you. I'd like the contract to cover just the car, tax, title and the fees we agreed on." - When: A product is described as costing only a few dollars a month. Say: "What's the total price of that product, and how much does it add to the amount financed? I'd rather decide on the full number." - When: A charge is added on top of the price for a paint color, a market adjustment or another dealer markup. Say: "Is this charge on the maker's window sticker, or added by the dealership? I'm comparing out-the-door totals from several dealers, so I'd like to see the total with everything in it, and the same total without this charge." - When: You're told your offer is below invoice, or that the dealer would lose money at your number. Say: "I understand. I'm comparing written out-the-door quotes from several dealers, and this is the number that works for me. If you can't get there, that's okay; I'll keep comparing." - When: Your trade-in is valued below a written offer you already have from another buyer. Say: "I have a written offer for my car that's still open, and it's higher than this. If you can match it, I'm happy to trade it in here. If not, I'll sell it to them separately and keep this deal to the car's price." - When: You've decided to leave. Say: "Thank you for your time. This isn't going to work for me today. You have my email if anything changes on your end." ## Email templates Placeholders in {{double braces}} stand for the car, the figures and the dates. ### Ask for an itemized out-the-door quote URL: https://beforethelot.com/emails/request-quote When it is used: The first message to each dealer. It asks for an itemized out-the-door quote on a specific car, quoted as a purchase on its own, with no trade-in and no monthly payment figure, so the quotes line up. Subject: Out-the-door quote request for {{car}} Hello, I'm interested in the {{car}} you have listed. Stock # or VIN: {{stock}} Could you send me an itemized out-the-door quote for it? Please include: - Vehicle price - Doc fee - Any dealer-installed add-ons, each listed with its price - Sales tax - Title and registration - The total out-the-door price Please quote it as a purchase on its own, with no trade-in. I'm comparing dealers by the out-the-door total, so a monthly payment figure isn't needed. {{financing}} {{inspection}} I'm requesting quotes from a few dealers and plan to decide by {{deadline}}. Could you also confirm the car is in stock and available? Thanks for your help. ### Invite a dealer to beat a better quote URL: https://beforethelot.com/emails/competing-quote When it is used: After a dealer's quote arrives and another dealer has a lower written, itemized out-the-door total. It states that total without naming the other dealer and asks for a revised quote by a date. Subject: A lower out-the-door quote on the {{car}} Hello, Thank you for your quote on the {{car}}. Stock # or VIN: {{stock}} I've since received a written, itemized out-the-door quote of {{otd}} from another dealer for the same year, model and trim. I'd rather not share the dealer's name, but the quote is in writing and includes all taxes and fees. If you can beat {{otd}} out the door, I'd like to buy from you. Please send a revised itemized quote by {{deadline}}, showing the vehicle price, doc fee, any add-ons, tax, title and registration, and the total. {{financing}} If you can't beat it, no problem at all. I appreciate your time either way. ### Make an out-the-door offer URL: https://beforethelot.com/emails/make-offer When it is used: When a buyer is ready to buy a car in stock at a number. It offers an out-the-door total with no dealer add-ons and asks for an itemized buyer's order at that total. Subject: Out-the-door offer on the {{car}} Hello, I'm ready to buy the {{car}} you have in stock. Stock # or VIN: {{stock}} Based on my research, I can buy at {{offer}} out the door, including the doc fee, taxes, title and registration, with no dealer add-ons. {{financing}} {{inspection}} If that works for you, please send an itemized buyer's order at that total and I'll set a time to come in and sign. I'm deciding by {{deadline}}. Thank you. ### Confirm the deal in writing before you go URL: https://beforethelot.com/emails/confirm-deal When it is used: After a dealer has agreed to a number and before the buyer drives in. It asks the dealer to confirm the car, the out-the-door price and that no add-ons are included, in writing, and to have the paperwork prepared to match. Subject: Confirming the out-the-door price for {{car}} Hello, Before I drive in, I'd like to confirm what we agreed, in writing: - Car: {{car}} - Stock # or VIN: {{stock}} - Out-the-door price: {{otd}}, including the vehicle price, doc fee, all taxes, title and registration That total includes no add-ons, warranties or other products. {{financing}} {{inspection}} Could you reply to confirm these numbers and have the paperwork prepared to match? I'm planning to come in on {{deadline}}. I'm planning my visit around this exact number, so if anything has changed, please let me know before I make the trip. ### Email your lender about the car and the numbers URL: https://beforethelot.com/emails/lender-deal When it is used: To the buyer's lender once a car is found, with the pre-approval terms and the deal's numbers, asking what is needed to finalize the loan and by when the funds can be ready. Subject: Auto loan pre-approval for the {{car}} Hello, I have an auto loan pre-approval with {{lender}} at {{apr}} APR for {{term}} months, and I've found the car. Here are the details: - Vehicle: {{car}} - Stock # or VIN: {{stock}} - Dealer: {{dealer}} - Out-the-door price: {{otd}} - Down payment: {{down}} - Trade-in equity: {{trade}} - Amount to finance: {{amount}} - Safety check (NHTSA): {{safety}} {{dealer_line}} What do you need from me to finalize the loan? I'm planning to buy {{deadline}}, so I'd like to know when the funds can be ready. Thank you. ### Politely say no thanks URL: https://beforethelot.com/emails/decline When it is used: To close out a dealer whose quote won't be taken up. It thanks them and asks to be taken off follow-up for that car. Subject: Thanks, I'm passing on the {{car}} Hello, Thank you for your quote on the {{car}}, and for your time. I've decided not to move forward with this one. Please feel free to close out my inquiry and take me off follow-up for this car. I appreciate your help, and I wish you the best. ## State rules The state-by-state table (doc-fee rules, sales tax, trade-in credit), each fact with its public source: https://beforethelot.com/states.csv, with a page per state at https://beforethelot.com/states. Also licensed CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/); credit: Before the Lot state rules data, Volocent Labs LLC, beforethelot.com/states.