Dealerships hate cash. I walked in knowing what car I was going to buy and the final price. Sat down and told them how much I’m paying for the car and nothing else, either I’m getting the car or not. Don’t listen to them, pay what YOU want or leave
Bring your own 'Four Square.' 1. Discount off Dealer Invoice and Dealer installed accessories. 2. Manufacturer's rebates and incentives. 3. Hold Back give back. 4. Free Stuff from Dealer (free oil changes, free floor mats, free gas, free extended warranty, free car washes, free documentation, etc.)
Cash buyer here, and I am done shopping. I wanted a sports care for a while, something in the $30,000 range, but after spending over a year researching, planning, and looking at cars, I'm so disgusted and disappointed I've just given up at this point. Everyone wants about 20-30% more than they should, and I am STILL seeing dealers not even doing basic detailing on vehicles. It's sad!
Just wait it out the past few years have been the worst time to buy. Also check out Kevin the Homework guy he has some additional information on buying cars on his channel. Combine the knowledge here from Mike with his and you will be fine.
prices are finally starting to drop. I'm in the market for a vehicle specifically the BMW M240/235i xdrive, and a few I've been watching have been lowered 2-4k since the end of Feb. wouldn't mind the M2 but the price for any true M car is still crazy right now.
I was cash buying but did not tell the dealer. Salesman pulled out the 4 square sheet. I took if from him for at look, wrote O-T-D over the price quadrant, tore off the other 3 sections and put them in the wastebasket, and pushed the remainder back to him. Didn't end up buying from them as they wouldn't budge much on their add-ons. But it was fun.
I strongly agree with your comment re the BS. For the life of me, I can't understand how car dealerships, or should I say car STEALERSHIPS, are allowed to operate for so long with this level of deception/theft. It appears that the only fair way is to do away with the dealers and go with the factory direct to buyer model.
@@mcampbell4914 They have a strong lobby. The public should lobby back. Everyone should contact both fed and state reps and demand that the protected car dealership model be removed. Car dealerships should be subjected to the same anti-trust laws that all businesses are. This will end their oligopoly and benefit consumers.
@@mcampbell4914it’s illegal in most states to buy directly from manufacturers, law makers don’t like it thanks to lobbyists however there are exceptions for EV manufacturers
True, but high-ticket items are negotiable. Play the game, or pay someone to play the game FOR you, or get screwed. Those ARE your three choices. I'll play the game.
You're right, Mike! We just bought a car on Sunday, but we started by contacting the dealer a week before by email to nail down the deal in writing. When we came in we were half expecting that our negotiated price would not be honored. Surprise! No Problems! No 4-Square games! They honored all our discounts and gave us the 2.99% financing that we also negotiated with F&I!
Home field advantage is why I've used the past few vehicles. I basically get 3 or 4 dealers in a bidding war over a new vehicle and they all deliver now even from hours away. I was actually working a deal at one dealership when one of the others got back to me and said ok so I left and went there. The key to this is patience. You have to wait for them to call you back. That can take a week or more.
I once had 2 dealers trying to outbid each other trying to sell me the same car. One dealer had it, the other was willing to get it from that dealer to sell it to me. They went back and forth $500 at a time to the tune of 6 grand before the dealer that didn't have it said "I can't go any lower because I have to go get the car." I called the other dealer back and told him he got outbid by $500 again, and he went another $500 and I bought it from him. 2 dealers on the last day of the 4th of July sale, BOY they were hungry. HA HA
How do you deall with multiple dealerships. on the phone/in person/through email. I am a cash buyer and most of the dealerships ignore my requests for OTD pricing via email or phone. they want me to come in
I do something a little different. I do all my homework first and know my payment, usually within $20 a month. Then I let them play their games for about an hour or so. I then give them my OTD price and payment and tell them to take it or leave it. They say no, and I walk out. They get so bummed out, but the closer or sales Mgr comes out, and we finalize the deal in the parking lot before I come in. It works, I've bought about thirty cars for myself and the kids this way. The salesman ALWAYS say they did the deal and were surprised, and it was a no money deal. Two people can play games, since they love to play games. I'm just better at it. If they want to get you emotionally invested, flip it on them and get them emotionally invested.
@@Jahida360 Negotiate the out the door (OTD) price with the sales person, and get it in writing and in your hand, before any paperwork is signed, and if they try to tack on some additional price just tell them they have violated the agreement and get up and walk out the door. If they let you leave and drive off, you do not want to do business with them anyway because they are too determined to screw you to be trusted with anything.
I recently purchased a new car, paying cash. I made an offer I was sure they wouldn't accept and they took it right off the bat. So I saved 6 grand off MSRP and I'm very happy with the deal.
Which car and how much did you offer? And to clarify, you got them to cheapen the msrp by 6k, or the out the door (OTD) price you paid was 6k less than what they originally had? Or both? Haha still learning here but I didn't think you could change the msrp too much, if at all. Only the OTD
I would also be careful to make sure you understand the taxes. We bought a vehicle and had a trade and they had the taxes wrong. With a trade, you should only pay taxes on the difference between your trade and the car you are buying. When the sheet was presented to us it had the full amount of taxes and not the difference. We sent the itemized sheet back twice before they got the numbers on the taxes right. If you’re not aware of this, it’s easy to get screwed.
@ pamelacarmon3515 We bought the car in Kentucky. Another person replied it was different in a couple states so it may vary. Always worth checking to make sure you don’t get screwed.
He is usually complaining about his "stupid" customers. No idea who would shop there? Hand money to someone like that? Guess that is why he needs to advertise on free TH-cam.
Great vid! The Homework Guy Kevin Hunter pointed out in a recent video that lenders are prohibited by law from charging a prepayment penalty for an auto loan of 61 months or longer, so going with a 66 or 72 month loan and then paying it off the first month guarantees that you won't pay a prepayment penalty.
@@tommak6516 Never heard of any additional title fees (at least here in Texas). If this is indeed the case, perhaps that's applicable to certain states. My nephew paid off the vehicle the purchased in the first month, and they only had to pay a bit of interest that accrued.
Cash by far and away is the best and easiest way to go because you focus on the car price. If you sell your car yourself you are better off or to a used car lot. That takes the used car out of the equation. If you get the loan from a bank then you don't give that to the dealer either. If you do those two things you can buy a car focusing on price using the cash method even if you are trading in your car and getting a loan. I appreciate Mike being honest and explaining this to everyone - it is something everyone should know!
my mother's best friend is a CPA. she is also my godmother. I always bring her when shopping for cars. I don't think the salesman likes her. Well... the finance manager hates her. :) I usually sit there and say nothing while she goes over the deals for me.
Dude... Really... Dude! Thank you for doing what you do. I have lost so much money over the years on deals. At last until the last 6 or 7. Videos like yours are so valuable to those of use trying to get good deals but are so intimidated by the process. Thank you!!!!!!!
The biggest lesson I've learned over the years, is to never fall in love with a car. There will always be others. Just recently, I was looking at a used Porsche Cayenne, and as soon as I saw the trade in offer from the dealer, and the additional useless crap they wanted to add, I just got up, and walked right out. It's not a big deal, I will find another if I want. I did the same thing a few years ago when I bought my Toyota Highlander, and the very next day, ended up finding the same vehicle with 10K fewer miles, for $3000 less. This is why dealers HATE the "I'm going to think about it" line, because they know you will most likely find something better.
I know I’m going to get screwed at the dealer so my strategy is to buy as FEW cars as possible before I die. That way I’ve minimized my lifetime exposure to their thievery.
Great Tips, Mike!!! I have read and also seen on TH-cam that if you are pushed towards a loan but want to pay cash, you can get a 72-month loan, and pay off the car completely on your first payment. This is a federal law now, there's nothing the dealership can do about it. Thanks!
👍 Yes, stealerships loves long term loan payments with added value trash payment insurance. That's where they make the most profits. Just make sure to get the best final out the door price.
My wife never had a new car. When we went in to get her one I was telling her they things they would try to do and how they would write down the numbers. She was surprised how everything I said came true.
Another tip I was told was that a prepayment fee can't be assessed on 72 month loans so you can do that and possibly get a cheaper price on the car since they think they will make it back on the interest but you just pay it in full on payment one. Learned from Kevin The Homework Guy channel.
When they have dropped the "4 square" paper I crumple it up and say, nice attempt to answer my question about out the door price, now let's try this one more time.
Excellent video and point about working the deal from home. I do plenty of homework and pre negotiation when i am trying to make a deal, but usually like to go nose to nose in the dealership when I am ready to finalize the deal. Your video will change that. Thanks. Good job.
that was great, I hope people realize what good advice that was this comes from a guy that owned 6 car dealerships before i sold it all and moved to Newport beach CA.
And also preowned cars are important to look at. Get on ans stay. I have been lucky with preowned cars. I bought first in my life a new car and will drive it for many years. Nobody needs a new car every 4 years.
Man, I feel like a superhero. I bought a brand new '22 Ford Maverick with pre-approved credit union financing and when you walk into a dealership with a prepared check for the exact amount, it leaves no room for the finance person to add on paint glaze, windshield coating, wheel and tire etc. When we looked at the truck we negotiated the price and left with a proposal. Went over the proposal at home, removed any "fluff" and added the remaining items together (tax, title, prep and doc fee) and I called the salesperson and offered the new bottom line. She emailed over the new proposal and we had the CU cut a check the next day. It took about an hour at the dealer and we were on our way home with our new truck!
Thanks Mike. I watch your videos and have gained a solid foundation for the car buying process and how it will be for me, from now on. Keep up the great work!!!!
Good video Mike. I'll tell you one thing, you're smooth, and probably a hell of a salesman. I had a father in law that used to go to car dealers as a hobby to bargain for a best price for a car until he would piss off the salesman and they would tell him to get lost. He got to be known in town, so he started doing it in the next closest town. He was a blast, I miss him a lot. Cheers.
@OneOut1 You must be the commissioned one at the stealership. To the buyers: It's your money 💰. It's a fair game that works both ways. The bottom line is to get the BE$T deal for yourself or the stealership weasel gets the BE$T bite out of your wallet.
I’m generally a cash buyer. I always take my fully charged laptop with me when negotiating my car purchases. I have an excel file where I can calculate what the final price should be including taxes, etc. I also research car prices before showing up at the dealership that has the car I want.
@@DeanMarko-ex3rd 1) You get the MSRP from the manufacturer's site. 2) You get the final car price from the Monroe Sticker that has to be attached to the car window (its the law) and you can also request it to the dealership, if they don't have it already on their site. This sticker will give you MSRP + any FACTORY options added in, + DESTINATION CHARGES = Final car price FROM THE FACTORY with no more bullshit added on (apart from the dealer requested accessories included). 3) Sales tax varies by state. Then there can be doc fees, and other dealer fees, some states set the maximum others don't (Like Florida). To make a spreadsheet start with the MSRP (including Accessories + Destination), then you will add to your Out the Door Price (OTD) Taxes, Doc fees, And any other fees that the dealer tells you. Your negotiation comes from trying to get the out the door price as close to MSRP or even lower (some brands are running discounts on MSRP, like Jeep, and I've seen Kia run discounts on EV6 for example). Anyhow there's a lot to talk about in this space, that should give you an idea. Good luck!
Wow,,thank you. I am trying to get my third Tacoma. And I am paying full cash. But, no dealer is giving me anything. No money off the MSRP etc. I like what you said about financing, and then paying it off. Ust want to see of there are any loan processing fees. Glad I found your channel.
I really wish you had the car in stock I wanted. I would have driven from Flint, Mi to buy from you. I mentor interns at my work, and I make they watch your videos, because they are all about to need to buy a new car. Thank you for this information and all you do.
Im currently serving over seas, when i come home im looking getting a new vehicle. thank you so much for all your honesty and these videos. i just paid off my 2013 ford escape. and looking back I definitely got worked over by the dealership. my next purchase is gonna be Iron Clad thanks to you. and if I cant get it in Michigan well then fuck it. ill come buy from you. sure its a drive but I value honesty over distance.
3:02 "Crazy Larry's Used Cars" 😆 It sure was nice meeting you and the crew yesterday. You were very kind to accommodate us Michigan vacationers. If we didn't live five hours away we would be getting our next car from you in a heartbeat! All you cats down here, you are lucky to have Mike close to you. Another great video, helping out the customer. All the best, guys.
Wear with all! If you owned a dealership in central NJ, I would deal with you guys. In the last four months, I have had three dealerships refuse to negotiate online. LOL... One sternly noted that ALL deals were done at her desk. Vehicles need to be negotiated with a mindset that this is a want, not a need, and that needs to be firmly conveyed to the sales team! Whether you mean it or not. Never be afraid to walk!
You're right!!!! Why deal with either you or me 100% while we're at home, when they can wait for someone to walk into the dealership, or who made an appointment with a salesperson before walking in.
I understand what you are talking about on the homefield advantage... but I also want to physically lay eyes on a vehicle before I talk to someone and want to check it over and test it out before even thinking about negotiating on it.
That is IMHO, the hardest part of buying a car from a dealership. There have been times in the past, when I was interested in a specific make and model. I was able to rent one and drive it for a couple of days to see if I really would be happy with it. It's costs a fair amount to do so but, as I keep my daily drivers for ten or twenty years, it helps me determine if I really want one. I also drive other cars whenever I can. For instance, I am possibly in the market for a minivan to replace my sixteen year old SUV. At work, we had Chrysler minivans available as staff cars. I drove them enough and talked to our shop guy responsible for their upkeep to know, hell will have to freeze over before I'd buy a Chrysler minivan.
Purchased a new '22 Silverado refresh. Did all negotiating before stepping into the dealership. Shopped my trade in around at a few local dealers, Carvana, Vroom etc as well. Sold it to a local Acura dealer for top dollar. Drove 125 miles away to get my truck. Borrowed a 22% of the total value of the truck. Paid off the loan 30 days later. The next day they even picked me up at my house to retrieve the car that I left at their dealership. What a great dealership to work with. It was Gosch Chevrolet in Hemet CA.
Yes I always do the cash deal...I just tell them put anything they want on the deal, I just look at the bottom line. I tell them right up front I'm looking at three dealers in the local area. It always the trade in that takes the most effort. Usually I start my buying in early Dec. with the hopes of completing it at the last days of the year.
One more tip. Some dealers have fake pricing on new vehicles to get you in the door. I use those advertisements at other dealers that don't scam to match it. This should put you within $500 of the dealer invoice price. Remember to subtract any incentives from that invoice price since those rebates are factory paid and do not come out of their pocket.
Good one mike i see what you did there in this video since 95% of all shoppers will experience the 4square at large dealerships but not at most independent lots and the home field advantage of negotiating the cash price from home is 100% true since most of those large dealerships groups are posting low bait and switch prices online to lure shoppers away from your dealer lot without actually providing a better deal than you can for the same car , Lucky lopez posted a video about -Why dealerships lie about price - which will clue shoppers into understanding why its so important to call from home to get the figures so you can expose those shady dealerships before becoming a victim of a false pricing dealership group
the only thing you can negotiate is the market adjusted price. it's either no market adjusted price or walk... i ended up buying directly online through the manufacturers website, no market adjusted price or dealer added accessories.
I am 24 and looking to buy my first car. Gonna make a spreadsheet that does the calculations at 3:40 so i can pull up my spreadsheet everytime they bring in the damn worksheets.
Excellent work Mike! Although, I decide what I want to pay for the car, and what I want for my trade before going there, I tell them what I want (cash), and if they can't give it to me, I say thanks, and walk out. 99% of the time, my phone's ringing before I get home. Oh, and I love when they try to add "paint protection". I just tell them to take it off because I didn't ask for it, and won't pay for it! *LOL*
That's exactly what do. I learned from my Dad. He NEVER borrowed to buy a car, and he was perfectly happy to walk out. He did that many times, and many of those times they called him back.
Same here. I take it one step further and I always work based on an “out the door” price, including tax. Make them work backwards a bit. I also do the other breakdowns ahead of time (trade, pre-tax price etc…) to know the possible values they may try to throw out there. Makes it really easy to spot any “hidden” things they try to tack on, and even easier to walk when it doesn’t go my way.
Those are the best approach for your best deals, folks. ❤❤ They love to pressure you at the last minute to the final deal. Keep saying the products below will preserve your spanking new cars for a long long time and protect your expensive investment. The salesman always tries to use their last weapons before the buyers signing their best price by selling paint, shine protection, rust proofing, interior 3M protection, wheels 🛞 protection, anti thief, extended dealership maintenance services, and extended warranty + else. I replied : No thanks you. I don't needed. The salesman quickly asked me WHY?????? I told them, don't you wanna me to come back to see you to buy my next new car with you sooner???? That blows them away. 😅😂😅😂
The two times i have purchased new cars I custom ordered them. The price was negotiated prior to meeting the Sales Manager to discuss payment and what not. Both times my offer was submitted with a substantial cash deposit. Both times I walked away with a deal i was happy with. I made 2 payments on each. The first on the day the order was placed and the second a bank draught for the full amount outstanding.
Regarding the prepayment penalty It’s easier then that Mike. Any car loan over 61 months is prohibited from having a prepayment penalty so you negotiate a 72 month loan. As for the 4 squares I’ve walked out of a dealership that pulled one out. I don’t do loans but I won’t tip my hat to that and negotiate the deal like you said in the multiple steps. My last car deal I didn’t even pay the doc fee just the title fee that I would have paid at the DMV so it wasn’t a dealer fee. I negotiated an out the door price then got them to knock it down more on the follow up walk around pointing out flaws (a few scratches) that they didn’t mention in the first walk around. That was a fun deal.
Another way to get around the pre-payment penalty, that I hears on another channel, is to finance for 72 months, which prohibits any pre-payment penalties by law. Or so they said.
I was reading somewhere that besides language about prepayment penalties, look carefully at how interest is calculated. Most loans are simple interest, but some have a fixed amount of calculated interest no matter how early you pay off the loan, and some use "rule of 78" that heavily frontloads interest. It is possible that these alternative calculation methods are banned in some states, but look at the contract carefully (as well as state law, as applicable).
My first several cars I did not get the extended warranties and it worked out well. For the last 2 I did. Was 2 for 2 in getting engines replaced with the extended warranties. One was a first model year Crosstrek, first model years often have troubles. The other was a Fiat 500X, which was, well, a Fiat.
@jclaiborneii They make some money when people transfer the car but don't mention the warranty. Also, through a mismatch between the driver and the warranty (you want the number of years and the number of miles to match, to expire near the same time). Also, they can make money even if the retail price of the warranty services they provide is higher than the cost of the warranty, because the manufacturer will get a huge discount. But I agree that if you buy 10 cars and get the warranty on all of them, you will lose. Also, with my recent vehicle purchase, the extended warranty was far more expensive than my prior cars. Like $3,500 vs. $1,000. So I passed. When my manufacturer's warranty is expiring, I will reconsider.
When anyone pushes an extended warranty, I just loudly inquire, so that any other customers can hear, "So, you're telling me that this product is so unreliable that I need to purchase and extended warranty to protect myself from future, high repair costs?". That usually kills the hard sell on the spot.
I learned something by chance once. A new car model came out that I liked and I wanted to take a close look at it. Now I had no intention of buying a car at that time, I just wanted to see it. So I go to the dealer and said that I wanted to take a look at their new model year that they just got in. I gave it a good once over, took it for a test drive, then thanked them and started to walk out the door. The salesman followed me out to my car, the whole time lowering the price as we walked. From the time it took to get from the showroom to my car the price had come down $5000. If I really was interested in buying, that would have been a good starting point for negotiations.
I only buy if the complete and true out the door price (O.T.D.) matches the amount i have written in my personal check book before arriving at the seller or dealership. Otherwise, i will get up to go some place else. No time to haggle and will not pay a dime more than the amount written on my check book. Be firm, be calm, and not afraid to leave if need be. For the most, they will be chasing you down before you get back on your car...lol.
@@economiccrisis9267 It is possible by having the car delivered to you by the the dealer then pay all these fees when its time to head down to your local DMV office. Also, if you reside in Oregon, no sales tax for car purchases.
You said step 1 is to get the car price first before continuing with the next steps. Other car buying advisors say to get the out the door (OTD) prices first which includes taxes, tags, title, Dealer Prep and whatever else is included. I like the OTD since you can see all the charges and know what’s legal and what’s not.
Engaging actively on the sales floor for advisors working in automotive is integral for gaining firsthand insights into live transactions and maintaining an acute awareness of industry changes, trends and shifts. Advisors not directly involved may rely on old dealership experiences or secondhand information that does not accurately reflect market realities, which demonstrates why conducting independent research when seeking "out-the-door" price quotes is so crucial to building solid negotiating positions. Calculating figures themselves helps create an objective foundation upon which negotiations may proceed. Buyers should remember the charges they are obliged to cover are Sales Price, Taxes and Government Fees; additional charges such as documentation fees often don't justify themselves with services rendered, so extra attention needs to be given in scrutinizing any potential add-on fees that might pop up along the way - thus strengthening a buyer's position during negotiations.
I'll be waiting on the GAP video. I just found one you did a couple years ago about buying GAP from the dealership vs. the insurance company and I disagreed with the take based on my research. I want to present my findings and get feedback from the page.
@jawsgreatwhite9966 exactly. Also, most insurance companies only offer that coverage for about 3 years, which in that time you should be right side up on the GAP. Whereas through the dealer, you're still paying GAP long after your vehicle equity is greater than your loan balance.
Dealers will advertise a low price on CarGurus so it will rated as a great buy. But once at the dealership they start adding fees that are scam fees. I recently looked at a 2022 Nissan Frontier that was advertised on CarGurus for $27K. After all the fees were added on the Out The Door price was over $36K. $9K more than the advertised price.
Mike U R Awesome! know why ? because doing what you do? decided to come clean about car dealerships both new and used inventory, and their tactics to make sure the costumer pays the most (even on cash deals) my father was an old school used car sales man... yeah those! ... and most of what you say still holds true ! i remember him saying ' in my youth knew i was good at selling anything! got into the business and that's how i met your mother ! but to be honest about it i did not give a (you know what) about selling what is called now a 'lemon back in the day those in the business called those vehicles something worse" to which my mother once said to him " Only Now? you have developed a conscience !" i miss you Dad.
I'm dealing with a dealer right now. Told him I'm not going over 20k out the door. He sent me two vehicles that are listed at 19,980 and 18k. It blew my mind
My trade is valued at about $10K less than the vehicle I am buying, after fees and tax (only pay tax on balance after trade in my state). I plan to finance for 36 months max and pay that baby off in 6 months. If I have the cash available at the time of purchase, I'll just pay it in full and have full ownership when I drive off the lot.
Folks: you're NEVER going to be "one step ahead of the dealer"-never. Why? because the dealer only sells a car at a PROFIT. Think you stole the car with an incredible deal-think again. Buyer beware. Yes, focus on the price. Extended warranties are a HIGH Profit item-Mike just sold you one! Don't. You can add one later on if you're really want. Not negotiating inside the dealership is a good strategy. Dont negotiate the "monthly payment" ... Do negotiate the price.
True. My current car was a cash deal, and it was a fabulous buy. Since we weren't financing, and we had the cash for the car available and ready, the dealership couldn't play games or try to trick us. We paid the price as advertised, except for taxes and licensing. Not so profitable for the dealership, but good for us. I got a very nice used car for a good fair price. If only I'd known this 25 years ago when I got a raw deal on a pickup truck
The thing that gives you the biggest advantage is the ability to walk away. If you're not happy with the terms and tell them no and go to walk out, they know they'll have to offer you a better deal if they want to sell a car.
Good tips. The key part is be prepared to walk if the deal isn't right. Don't waste time, but if they say 'That car is not ready, how about this similar one' ask when the one you want will be ready. I walked on dealer that tried that and was very nasty to me. I announced loudly on the sales floor 'Since you are treating your customers like this and don't have the car I want, I am walking' They then came back with "You are not going to buy this car?" My response "Your job is to sell it, it is not my job to buy it".
Congratulations to you Curtis for reminding the salesperson that you have freedom of choice. You can choose to let go of your money or not let go of your money.
Have you made a video showing a used car window sticker with all the fees and extras and how to negotiate what a buyer should be paying for and what should be tossed out?
Buying new cars for over 50years. Walk in cash on hand, but get the deal first. If all the talk is financing then walk, but I nor now my daughter has ever had too. Not always is cash best as rate may be so low as to make me losing investment income from the cash. Biggest thing is what’s right for you at that time. Daughter walked on a deal one time and got a call a month later taking her offer.
Mike, love your videos and have been a sub of yours since the VERY early days (I was there before you hit 100). One piece of constructive criticism and please take it a such. PLEASE remove the fake iPhone text sounds. They cheapen your video and just irritate folks. Forcing folks to look at their phone using these sounds is not a good way to do it. Again, love your videos and mean this comment in a helpful way.
Oct 6 2023. Was quoted 5 k over msrp for 24 Toyota Supra. I’m a all cash buyer . No deal baby. No one needs a Toyota Supra.
I disagree, I think everyone needs a Toyota Supra🙂
Purchased the 45th Anniversary edition for MSRP. Bluffed and screwed the dealership over 😂 going to do the same for c8 ZR1
Not if it is a BMW in disguise.
@@BuddysDadd give us the strategy
“No deal baby”
😂😂😂
Dealerships hate cash. I walked in knowing what car I was going to buy and the final price. Sat down and told them how much I’m paying for the car and nothing else, either I’m getting the car or not. Don’t listen to them, pay what YOU want or leave
Right. Somebody paid $120,000 for a Kia…. And then they were feeling so scammed and tricked after like… your not forced to buy it, just walk out then
Oh stop dude. Even a illiterate with 1 IQ wouldnt pay that
@@hi-lx7wr$120k for a Kia? Wow…..
Bring your own 'Four Square.' 1. Discount off Dealer Invoice and Dealer installed accessories. 2. Manufacturer's rebates and incentives. 3. Hold Back give back. 4. Free Stuff from Dealer (free oil changes, free floor mats, free gas, free extended warranty, free car washes, free documentation, etc.)
You need to make a vid on this one mate, this sounds epic and will make a lot of enemies haha
How do you do that, what does that lol like?
Cash buyer here, and I am done shopping. I wanted a sports care for a while, something in the $30,000 range, but after spending over a year researching, planning, and looking at cars, I'm so disgusted and disappointed I've just given up at this point. Everyone wants about 20-30% more than they should, and I am STILL seeing dealers not even doing basic detailing on vehicles. It's sad!
Just wait it out the past few years have been the worst time to buy. Also check out Kevin the Homework guy he has some additional information on buying cars on his channel. Combine the knowledge here from Mike with his and you will be fine.
I agree, you're right. Some dealerships in NJ are still show "Market Adjustments which increase the price OVER the MSRP.
The MSRP is inflated from factory... do not think that MSRP is fair deal. Invoice may be better. Let it crash and enjoy the savings.
prices are finally starting to drop. I'm in the market for a vehicle specifically the BMW M240/235i xdrive, and a few I've been watching have been lowered 2-4k since the end of Feb. wouldn't mind the M2 but the price for any true M car is still crazy right now.
@@Kevin-mk6jo
😂what crash? They've been saying crash for over a year now and nothing....
I was cash buying but did not tell the dealer. Salesman pulled out the 4 square sheet. I took if from him for at look, wrote O-T-D over the price quadrant, tore off the other 3 sections and put them in the wastebasket, and pushed the remainder back to him. Didn't end up buying from them as they wouldn't budge much on their add-ons. But it was fun.
Great video! It's just a shame that buyers have to go through all this BS to purchase a vehicle.
I strongly agree with your comment re the BS. For the life of me, I can't understand how car dealerships, or should I say car STEALERSHIPS, are allowed to operate for so long with this level of deception/theft. It appears that the only fair way is to do away with the dealers and go with the factory direct to buyer model.
@@mcampbell4914
They have a strong lobby.
The public should lobby back. Everyone should contact both fed and state reps and demand that the protected car dealership model be removed. Car dealerships should be subjected to the same anti-trust laws that all businesses are. This will end their oligopoly and benefit consumers.
@@mcampbell4914it’s illegal in most states to buy directly from manufacturers, law makers don’t like it thanks to lobbyists however there are exceptions for EV manufacturers
True, but high-ticket items are negotiable. Play the game, or pay someone to play the game FOR you, or get screwed. Those ARE your three choices. I'll play the game.
You're right, Mike! We just bought a car on Sunday, but we started by contacting the dealer a week before by email to nail down the deal in writing. When we came in we were half expecting that our negotiated price would not be honored. Surprise! No Problems! No 4-Square games! They honored all our discounts and gave us the 2.99% financing that we also negotiated with F&I!
Oh trust I will be doing this today and now I’m so much more ready
Bravo! Well done!
There is so much info on what we should be doing to not get scammed. I will never be able to remember it all.
Home field advantage is why I've used the past few vehicles. I basically get 3 or 4 dealers in a bidding war over a new vehicle and they all deliver now even from hours away. I was actually working a deal at one dealership when one of the others got back to me and said ok so I left and went there. The key to this is patience. You have to wait for them to call you back. That can take a week or more.
Nothing better than getting some buy here pay here sleazeballs in a bidding war for a 1987 Mercury Montego. Ridiculous.
@@thomasallen6980 I only buy new cars
I once had 2 dealers trying to outbid each other trying to sell me the same car. One dealer had it, the other was willing to get it from that dealer to sell it to me. They went back and forth $500 at a time to the tune of 6 grand before the dealer that didn't have it said "I can't go any lower because I have to go get the car." I called the other dealer back and told him he got outbid by $500 again, and he went another $500 and I bought it from him. 2 dealers on the last day of the 4th of July sale, BOY they were hungry. HA HA
@@VroodenTheGreat that's how to play the game
How do you deall with multiple dealerships. on the phone/in person/through email. I am a cash buyer and most of the dealerships ignore my requests for OTD pricing via email or phone. they want me to come in
I do something a little different. I do all my homework first and know my payment, usually within $20 a month. Then I let them play their games for about an hour or so. I then give them my OTD price and payment and tell them to take it or leave it. They say no, and I walk out. They get so bummed out, but the closer or sales Mgr comes out, and we finalize the deal in the parking lot before I come in. It works, I've bought about thirty cars for myself and the kids this way. The salesman ALWAYS say they did the deal and were surprised, and it was a no money deal. Two people can play games, since they love to play games. I'm just better at it. If they want to get you emotionally invested, flip it on them and get them emotionally invested.
Can I hire you ? This whole thing makes me ill
Lol I don't think I fully understood this but can i barrow your skill 😆 this was awesome
@@joanartz7835same💯
@@Jahida360
Negotiate the out the door (OTD) price with the sales person, and get it in writing and in your hand, before any paperwork is signed, and if they try to tack on some additional price just tell them they have violated the agreement and get up and walk out the door. If they let you leave and drive off, you do not want to do business with them anyway because they are too determined to screw you to be trusted with anything.
It's the "get it in writing" part that's difficult for me
I recently purchased a new car, paying cash. I made an offer I was sure they wouldn't accept and they took it right off the bat. So I saved 6 grand off MSRP and I'm very happy with the deal.
Wow and I’m over here thinking they won’t take my deal for $4,998 off sheesh you gave me some confidence ❤
Оf course dealer sent report to IRS?
@@leonidlukashevsky6487 why would they? By paying cash was not physically bringing in a pile of bills but rather writing them a check
@@clintonwatt8084nothing wrong with a pile of cash
Which car and how much did you offer? And to clarify, you got them to cheapen the msrp by 6k, or the out the door (OTD) price you paid was 6k less than what they originally had? Or both? Haha still learning here but I didn't think you could change the msrp too much, if at all. Only the OTD
The funny thing is no matter how good you are it's almost impossible to avoid listening to them try to screw you 😂
They do deals day after day. I may do it every 8-10 years.
I would also be careful to make sure you understand the taxes. We bought a vehicle and had a trade and they had the taxes wrong. With a trade, you should only pay taxes on the difference between your trade and the car you are buying. When the sheet was presented to us it had the full amount of taxes and not the difference. We sent the itemized sheet back twice before they got the numbers on the taxes right. If you’re not aware of this, it’s easy to get screwed.
Not in Virginia and California. They tax based on the total value of the purchased car.
@ lenjoplus
Good to know, thanks!
What state did you buy the car? Do you know if this is true for every state?
@ pamelacarmon3515
We bought the car in Kentucky. Another person replied it was different in a couple states so it may vary. Always worth checking to make sure you don’t get screwed.
Knowledge is power. Thank you for all the sound advice that I'm sure dealerships don't want consumers to know.
He is usually complaining about his "stupid" customers. No idea who would shop there? Hand money to someone like that? Guess that is why he needs to advertise on free TH-cam.
Great vid! The Homework Guy Kevin Hunter pointed out in a recent video that lenders are prohibited by law from charging a prepayment penalty for an auto loan of 61 months or longer, so going with a 66 or 72 month loan and then paying it off the first month guarantees that you won't pay a prepayment penalty.
Thanks for the heads up 👍🏻
Yep, you can always ask too.
Certain states also don’t allow prepayment penalties
You still have add'l title fees to get the lien off your title when you prepay.
@@tommak6516 Never heard of any additional title fees (at least here in Texas). If this is indeed the case, perhaps that's applicable to certain states. My nephew paid off the vehicle the purchased in the first month, and they only had to pay a bit of interest that accrued.
Cash by far and away is the best and easiest way to go because you focus on the car price. If you sell your car yourself you are better off or to a used car lot. That takes the used car out of the equation. If you get the loan from a bank then you don't give that to the dealer either. If you do those two things you can buy a car focusing on price using the cash method even if you are trading in your car and getting a loan. I appreciate Mike being honest and explaining this to everyone - it is something everyone should know!
my mother's best friend is a CPA. she is also my godmother. I always bring her when shopping for cars. I don't think the salesman likes her. Well... the finance manager hates her. :) I usually sit there and say nothing while she goes over the deals for me.
Dude... Really... Dude! Thank you for doing what you do. I have lost so much money over the years on deals. At last until the last 6 or 7. Videos like yours are so valuable to those of use trying to get good deals but are so intimidated by the process. Thank you!!!!!!!
The biggest lesson I've learned over the years, is to never fall in love with a car. There will always be others. Just recently, I was looking at a used Porsche Cayenne, and as soon as I saw the trade in offer from the dealer, and the additional useless crap they wanted to add, I just got up, and walked right out. It's not a big deal, I will find another if I want. I did the same thing a few years ago when I bought my Toyota Highlander, and the very next day, ended up finding the same vehicle with 10K fewer miles, for $3000 less. This is why dealers HATE the "I'm going to think about it" line, because they know you will most likely find something better.
I know I’m going to get screwed at the dealer so my strategy is to buy as FEW cars as possible before I die. That way I’ve minimized my lifetime exposure to their thievery.
I’m getting ready to buy what is most likely my last car. I hope I’m ready. Thanks for all the advice!
Great Tips, Mike!!! I have read and also seen on TH-cam that if you are pushed towards a loan but want to pay cash, you can get a 72-month loan, and pay off the car completely on your first payment. This is a federal law now, there's nothing the dealership can do about it. Thanks!
👍
Yes, stealerships loves long term loan payments with added value trash payment insurance.
That's where they make the most profits.
Just make sure to get the best final out the door price.
My wife never had a new car. When we went in to get her one I was telling her they things they would try to do and how they would write down the numbers. She was surprised how everything I said came true.
Guess I'm luck I will never have the money to buy a new car again.
Another tip I was told was that a prepayment fee can't be assessed on 72 month loans so you can do that and possibly get a cheaper price on the car since they think they will make it back on the interest but you just pay it in full on payment one. Learned from Kevin The Homework Guy channel.
Big props, my brother, blessings to you and yours..
When they have dropped the "4 square" paper I crumple it up and say, nice attempt to answer my question about out the door price, now let's try this one more time.
Excellent video and point about working the deal from home. I do plenty of homework and pre negotiation when i am trying to make a deal, but usually like to go nose to nose in the dealership when I am ready to finalize the deal. Your video will change that. Thanks. Good job.
that was great, I hope people realize what good advice that was this comes from a guy that owned 6 car dealerships before i sold it all and moved to Newport beach CA.
My tip is to buy a car and drive it until the engine needs replaced.
Yep, this is how you save money. Most of our screw ourselves before we even step foot in the dealership.
And also preowned cars are important to look at. Get on ans stay. I have been lucky with preowned cars. I bought first in my life a new car and will drive it for many years. Nobody needs a new car every 4 years.
Man, I feel like a superhero. I bought a brand new '22 Ford Maverick with pre-approved credit union financing and when you walk into a dealership with a prepared check for the exact amount, it leaves no room for the finance person to add on paint glaze, windshield coating, wheel and tire etc. When we looked at the truck we negotiated the price and left with a proposal. Went over the proposal at home, removed any "fluff" and added the remaining items together (tax, title, prep and doc fee) and I called the salesperson and offered the new bottom line. She emailed over the new proposal and we had the CU cut a check the next day. It took about an hour at the dealer and we were on our way home with our new truck!
I spent 8 years at a Chevy dealership. This man speaks the truth.
Thanks Mike. I watch your videos and have gained a solid foundation for the car buying process and how it will be for me, from now on. Keep up the great work!!!!
Good video Mike. I'll tell you one thing, you're smooth, and probably a hell of a salesman. I had a father in law that used to go to car dealers as a hobby to bargain for a best price for a car until he would piss off the salesman and they would tell him to get lost. He got to be known in town, so he started doing it in the next closest town. He was a blast, I miss him a lot. Cheers.
What a jerk he was/is to waste a commission sales persons time like that on purpose.
@OneOut1
You must be the commissioned one at the stealership.
To the buyers:
It's your money 💰.
It's a fair game that works both ways.
The bottom line is to get the BE$T deal for yourself or the stealership weasel gets the BE$T bite out of your wallet.
@@OneOut1 lol. R U serious?
HANDS DOWN THE BEST CAR BUYING VIDEO I'VE EVER SEEN.
AND HE IS 100% Correct.
I’m generally a cash buyer. I always take my fully charged laptop with me when negotiating my car purchases. I have an excel file where I can calculate what the final price should be including taxes, etc. I also research car prices before showing up at the dealership that has the car I want.
I thought I was the only one to do this. Good going !
How do you get this information? I mean its written on the sticker?
@@DeanMarko-ex3rd 1) You get the MSRP from the manufacturer's site. 2) You get the final car price from the Monroe Sticker that has to be attached to the car window (its the law) and you can also request it to the dealership, if they don't have it already on their site. This sticker will give you MSRP + any FACTORY options added in, + DESTINATION CHARGES = Final car price FROM THE FACTORY with no more bullshit added on (apart from the dealer requested accessories included). 3) Sales tax varies by state. Then there can be doc fees, and other dealer fees, some states set the maximum others don't (Like Florida). To make a spreadsheet start with the MSRP (including Accessories + Destination), then you will add to your Out the Door Price (OTD) Taxes, Doc fees, And any other fees that the dealer tells you.
Your negotiation comes from trying to get the out the door price as close to MSRP or even lower (some brands are running discounts on MSRP, like Jeep, and I've seen Kia run discounts on EV6 for example). Anyhow there's a lot to talk about in this space, that should give you an idea. Good luck!
Do your delete your browser history too just in case?
@@ttscruz
There's a reason Jeep and Kia are offering those discounts. In the long run, you're much better off financially buying a different brand.
Wow,,thank you. I am trying to get my third Tacoma. And I am paying full cash. But, no dealer is giving me anything. No money off the MSRP etc. I like what you said about financing, and then paying it off. Ust want to see of there are any loan processing fees. Glad I found your channel.
GREAT Information! Thank you!! Cash is golden...
I really wish you had the car in stock I wanted. I would have driven from Flint, Mi to buy from you. I mentor interns at my work, and I make they watch your videos, because they are all about to need to buy a new car. Thank you for this information and all you do.
Im currently serving over seas, when i come home im looking getting a new vehicle. thank you so much for all your honesty and these videos. i just paid off my 2013 ford escape. and looking back I definitely got worked over by the dealership. my next purchase is gonna be Iron Clad thanks to you. and if I cant get it in Michigan well then fuck it. ill come buy from you. sure its a drive but I value honesty over distance.
Hey I like that pay all but one payment that is nice ! Thank you !
Great advice. Especially on how to avoid expensive
early payoff fees. Thanks for sharing.
Thanks for your videos! I've been thinking of switching to another (used) car and between you and CarEdge, I'm learning lots!
3:02 "Crazy Larry's Used Cars" 😆 It sure was nice meeting you and the crew yesterday. You were very kind to accommodate us Michigan vacationers. If we didn't live five hours away we would be getting our next car from you in a heartbeat! All you cats down here, you are lucky to have Mike close to you. Another great video, helping out the customer. All the best, guys.
Wear with all! If you owned a dealership in central NJ, I would deal with you guys. In the last four months, I have had three dealerships refuse to negotiate online. LOL... One sternly noted that ALL deals were done at her desk. Vehicles need to be negotiated with a mindset that this is a want, not a need, and that needs to be firmly conveyed to the sales team! Whether you mean it or not. Never be afraid to walk!
You're right!!!! Why deal with either you or me 100% while we're at home, when they can wait for someone to walk into the dealership, or who made an appointment with a salesperson before walking in.
This is the type of content i've subscribed for... what would be cool is doing under cover buys.
I understand what you are talking about on the homefield advantage... but I also want to physically lay eyes on a vehicle before I talk to someone and want to check it over and test it out before even thinking about negotiating on it.
That is IMHO, the hardest part of buying a car from a dealership.
There have been times in the past, when I was interested in a specific make and model. I was able to rent one and drive it for a couple of days to see if I really would be happy with it. It's costs a fair amount to do so but, as I keep my daily drivers for ten or twenty years, it helps me determine if I really want one.
I also drive other cars whenever I can. For instance, I am possibly in the market for a minivan to replace my sixteen year old SUV. At work, we had Chrysler minivans available as staff cars. I drove them enough and talked to our shop guy responsible for their upkeep to know, hell will have to freeze over before I'd buy a Chrysler minivan.
Purchased a new '22 Silverado refresh. Did all negotiating before stepping into the dealership. Shopped my trade in around at a few local dealers, Carvana, Vroom etc as well. Sold it to a local Acura dealer for top dollar. Drove 125 miles away to get my truck. Borrowed a 22% of the total value of the truck. Paid off the loan 30 days later. The next day they even picked me up at my house to retrieve the car that I left at their dealership. What a great dealership to work with. It was Gosch Chevrolet in Hemet CA.
thank you so much for naming them.I will try them.
You take melatonin? You sound like you get into some REM sleep and have some pretty wild tycoon dreams.
Yes I always do the cash deal...I just tell them put anything they want on the deal, I just look at the bottom line. I tell them right up front I'm looking at three dealers in the local area. It always the trade in that takes the most effort. Usually I start my buying in early Dec. with the hopes of completing it at the last days of the year.
I've never had a car payment. I was brought up paying cash for any car I bought.
Who cares?
@@thomasallen6980 apparently you did 🤷
When you paid cash did you get the title on the spot? Thanks
@@eyeswideopen5228on a new car they mail it to you
One more tip. Some dealers have fake pricing on new vehicles to get you in the door. I use those advertisements at other dealers that don't scam to match it. This should put you within $500 of the dealer invoice price. Remember to subtract any incentives from that invoice price since those rebates are factory paid and do not come out of their pocket.
Awesome presentation!
Good one mike i see what you did there in this video since 95% of all shoppers will experience the 4square at large dealerships but not at most independent lots and the home field advantage of negotiating the cash price from home is 100% true since most of those large dealerships groups are posting low bait and switch prices online to lure shoppers away from your dealer lot without actually providing a better deal than you can for the same car , Lucky lopez posted a video about -Why dealerships lie about price - which will clue shoppers into understanding why its so important to call from home to get the figures so you can expose those shady dealerships before becoming a victim of a false pricing dealership group
Bro great advice. You really got me ready to go into the dealer tomorrow.
the only thing you can negotiate is the market adjusted price. it's either no market adjusted price or walk... i ended up buying directly online through the manufacturers website, no market adjusted price or dealer added accessories.
Market adjustments are history, anybody that's been paying them over the past 5 years is stupid anyway
I am 24 and looking to buy my first car. Gonna make a spreadsheet that does the calculations at 3:40 so i can pull up my spreadsheet everytime they bring in the damn worksheets.
I'm glad i came across your channel.
Excellent work Mike! Although, I decide what I want to pay for the car, and what I want for my trade before going there, I tell them what I want (cash), and if they can't give it to me, I say thanks, and walk out. 99% of the time, my phone's ringing before I get home.
Oh, and I love when they try to add "paint protection". I just tell them to take it off because I didn't ask for it, and won't pay for it! *LOL*
That's exactly what do. I learned from my Dad. He NEVER borrowed to buy a car, and he was perfectly happy to walk out. He did that many times, and many of those times they called him back.
Same here. I take it one step further and I always work based on an “out the door” price, including tax. Make them work backwards a bit. I also do the other breakdowns ahead of time (trade, pre-tax price etc…) to know the possible values they may try to throw out there. Makes it really easy to spot any “hidden” things they try to tack on, and even easier to walk when it doesn’t go my way.
Those are the best approach for your best deals, folks. ❤❤
They love to pressure you at the last minute to the final deal.
Keep saying the products below will preserve your spanking new cars for a long long time and protect your expensive investment.
The salesman always tries to use their last weapons before the buyers signing their best price by selling paint, shine protection, rust proofing, interior 3M protection, wheels 🛞 protection, anti thief, extended dealership maintenance services, and extended warranty + else.
I replied :
No thanks you.
I don't needed.
The salesman quickly asked me WHY??????
I told them, don't you wanna me to come back to see you to buy my next new car with you sooner????
That blows them away. 😅😂😅😂
Very informational and much appreciated Mike! Liked and subscribed.
I love this guys honesty
The two times i have purchased new cars I custom ordered them. The price was negotiated prior to meeting the Sales Manager to discuss payment and what not. Both times my offer was submitted with a substantial cash deposit. Both times I walked away with a deal i was happy with. I made 2 payments on each. The first on the day the order was placed and the second a bank draught for the full amount outstanding.
YOUR VIDEOS ARE SIMPLY AWESOME!
Do you need a napkin?
Thank you so much for your invaluable information, highly appreciate it, keep it up the outstanding job, have a great day.
Regarding the prepayment penalty It’s easier then that Mike. Any car loan over 61 months is prohibited from having a prepayment penalty so you negotiate a 72 month loan. As for the 4 squares I’ve walked out of a dealership that pulled one out. I don’t do loans but I won’t tip my hat to that and negotiate the deal like you said in the multiple steps. My last car deal I didn’t even pay the doc fee just the title fee that I would have paid at the DMV so it wasn’t a dealer fee. I negotiated an out the door price then got them to knock it down more on the follow up walk around pointing out flaws (a few scratches) that they didn’t mention in the first walk around. That was a fun deal.
You have been kicked out of more than one dealership haven't you.
Another way to get around the pre-payment penalty, that I hears on another channel, is to finance for 72 months, which prohibits any pre-payment penalties by law. Or so they said.
Awesome content Mike. Would you do a guide to a custom build? I think this is where the industry is headed and would be cool to hear your thoughts.
I was reading somewhere that besides language about prepayment penalties, look carefully at how interest is calculated. Most loans are simple interest, but some have a fixed amount of calculated interest no matter how early you pay off the loan, and some use "rule of 78" that heavily frontloads interest. It is possible that these alternative calculation methods are banned in some states, but look at the contract carefully (as well as state law, as applicable).
in 23 years I have never seen a rule of 78 loan. I hope nobody is doing those loans still.
Your state governs alot of that. Dont get taken by some 'side of the road" used car dealership.
My first several cars I did not get the extended warranties and it worked out well. For the last 2 I did. Was 2 for 2 in getting engines replaced with the extended warranties. One was a first model year Crosstrek, first model years often have troubles. The other was a Fiat 500X, which was, well, a Fiat.
@jclaiborneii They make some money when people transfer the car but don't mention the warranty. Also, through a mismatch between the driver and the warranty (you want the number of years and the number of miles to match, to expire near the same time). Also, they can make money even if the retail price of the warranty services they provide is higher than the cost of the warranty, because the manufacturer will get a huge discount.
But I agree that if you buy 10 cars and get the warranty on all of them, you will lose. Also, with my recent vehicle purchase, the extended warranty was far more expensive than my prior cars. Like $3,500 vs. $1,000. So I passed. When my manufacturer's warranty is expiring, I will reconsider.
When anyone pushes an extended warranty, I just loudly inquire, so that any other customers can hear, "So, you're telling me that this product is so unreliable that I need to purchase and extended warranty to protect myself from future, high repair costs?".
That usually kills the hard sell on the spot.
Thanks so much! Wow that's allot of info so I'll need to listen again.
Good work helping out the little guy. Keep up the good work!
Cash buyer here, going private party w/ a PPI. Dealers are insane these days.
I learned something by chance once. A new car model came out that I liked and I wanted to take a close look at it. Now I had no intention of buying a car at that time, I just wanted to see it. So I go to the dealer and said that I wanted to take a look at their new model year that they just got in. I gave it a good once over, took it for a test drive, then thanked them and started to walk out the door. The salesman followed me out to my car, the whole time lowering the price as we walked. From the time it took to get from the showroom to my car the price had come down $5000. If I really was interested in buying, that would have been a good starting point for negotiations.
Thanks Mike !! for such great tips. keep them coming !!
On some of these new car build sites , as you build it shows you the monthly payment as you move along instead of the total price.
Absolutely solid advice!
Thank you! I’ve used your advises, and got a nice deal!
Thanks Mike, this is great information.
I only buy if the complete and true out the door price (O.T.D.) matches the amount i have written in my personal check book before arriving at the seller or dealership. Otherwise, i will get up to go some place else. No time to haggle and will not pay a dime more than the amount written on my check book. Be firm, be calm, and not afraid to leave if need be. For the most, they will be chasing you down before you get back on your car...lol.
I wonder, is it possible to pay the taxes and (legitimate) fees separately?
@@economiccrisis9267 It is possible by having the car delivered to you by the the dealer then pay all these fees when its time to head down to your local DMV office. Also, if you reside in Oregon, no sales tax for car purchases.
Its great that videos like these exist. Car dealerships are such monopolies - the consumers need as much ammo as realistically possible against them.
You said step 1 is to get the car price first before continuing with the next steps. Other car buying advisors say to get the out the door (OTD) prices first which includes taxes, tags, title, Dealer Prep and whatever else is included. I like the OTD since you can see all the charges and know what’s legal and what’s not.
Engaging actively on the sales floor for advisors working in automotive is integral for gaining firsthand insights into live transactions and maintaining an acute awareness of industry changes, trends and shifts.
Advisors not directly involved may rely on old dealership experiences or secondhand information that does not accurately reflect market realities, which demonstrates why conducting independent research when seeking "out-the-door" price quotes is so crucial to building solid negotiating positions. Calculating figures themselves helps create an objective foundation upon which negotiations may proceed.
Buyers should remember the charges they are obliged to cover are Sales Price, Taxes and Government Fees; additional charges such as documentation fees often don't justify themselves with services rendered, so extra attention needs to be given in scrutinizing any potential add-on fees that might pop up along the way - thus strengthening a buyer's position during negotiations.
I'll be waiting on the GAP video. I just found one you did a couple years ago about buying GAP from the dealership vs. the insurance company and I disagreed with the take based on my research. I want to present my findings and get feedback from the page.
I was quoted 46 a year from my insurance company for GAP on a new Camry. Last time I bought GAP from my credit union it was around a $1000.00.
@jawsgreatwhite9966 exactly. Also, most insurance companies only offer that coverage for about 3 years, which in that time you should be right side up on the GAP. Whereas through the dealer, you're still paying GAP long after your vehicle equity is greater than your loan balance.
Great video. Thank you. Very helpful.
Dealer gets a kickback $$ on financing. If it's a used car find it on car gurus as will tell you if it's a good/fair deal or over priced.
Dealers will advertise a low price on CarGurus so it will rated as a great buy. But once at the dealership they start adding fees that are scam fees. I recently looked at a 2022 Nissan Frontier that was advertised on CarGurus for $27K. After all the fees were added on the Out The Door price was over $36K. $9K more than the advertised price.
I'm studying your videos!! I'm buying a new car with cash. At what point should I tell the sales person I'm buying with cash?
ON the prepayment penalty could you do it in the reverse, like make 1 payment first then send in the lump sum to pay it off?
Mike U R Awesome! know why ? because doing what you do? decided to come clean about car dealerships both new and used inventory, and their tactics to make sure the costumer pays the most (even on cash deals) my father was an old school used car sales man... yeah those! ... and most of what you say still holds true ! i remember him saying ' in my youth knew i was good at selling anything! got into the business and that's how i met your mother ! but to be honest about it i did not give a (you know what) about selling what is called now a 'lemon
back in the day those in the business called those vehicles something worse" to which my mother once said to him " Only Now? you have developed a conscience !" i miss you Dad.
oh my... rofl the pay off all but one payments worth to avoid the early pay fee is amazing. i love it. would have never thought of that.
I'm dealing with a dealer right now. Told him I'm not going over 20k out the door. He sent me two vehicles that are listed at 19,980 and 18k. It blew my mind
My trade is valued at about $10K less than the vehicle I am buying, after fees and tax (only pay tax on balance after trade in my state). I plan to finance for 36 months max and pay that baby off in 6 months. If I have the cash available at the time of purchase, I'll just pay it in full and have full ownership when I drive off the lot.
awesome video, I buy lots of new vehicles and use many of the tips you recommend. Keep up the good work.
Folks: you're NEVER going to be "one step ahead of the dealer"-never. Why? because the dealer only sells a car at a PROFIT. Think you stole the car with an incredible deal-think again. Buyer beware. Yes, focus on the price. Extended warranties are a HIGH Profit item-Mike just sold you one! Don't. You can add one later on if you're really want. Not negotiating inside the dealership is a good strategy. Dont negotiate the "monthly payment" ... Do negotiate the price.
Yep... it's not the deal that you get... but the deal you think you get!
Thanks
COOP
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True. My current car was a cash deal, and it was a fabulous buy. Since we weren't financing, and we had the cash for the car available and ready, the dealership couldn't play games or try to trick us. We paid the price as advertised, except for taxes and licensing. Not so profitable for the dealership, but good for us. I got a very nice used car for a good fair price. If only I'd known this 25 years ago when I got a raw deal on a pickup truck
The thing that gives you the biggest advantage is the ability to walk away. If you're not happy with the terms and tell them no and go to walk out, they know they'll have to offer you a better deal if they want to sell a car.
My last cash buy new civic was as easy as going into Target and going thru checkout…
Did you pay taxes
@@donramon2501 Ofcourse
Good tips. The key part is be prepared to walk if the deal isn't right. Don't waste time, but if they say 'That car is not ready, how about this similar one' ask when the one you want will be ready. I walked on dealer that tried that and was very nasty to me. I announced loudly on the sales floor 'Since you are treating your customers like this and don't have the car I want, I am walking'
They then came back with "You are not going to buy this car?" My response "Your job is to sell it, it is not my job to buy it".
Congratulations to you Curtis for reminding the salesperson that you have freedom of choice. You can choose to let go of your money or not let go of your money.
Have you made a video showing a used car window sticker with all the fees and extras and how to negotiate what a buyer should be paying for and what should be tossed out?
Buying new cars for over 50years. Walk in cash on hand, but get the deal first. If all the talk is financing then walk, but I nor now my daughter has ever had too. Not always is cash best as rate may be so low as to make me losing investment income from the cash. Biggest thing is what’s right for you at that time. Daughter walked on a deal one time and got a call a month later taking her offer.
Is a doc fee negotiable? Can it be taken off?
I'm confused now. I just watched another one of your videos where you said don't bring cash bc paying in cash sucks
Good info. I would have to pay all cash for my next car because of my credit.
Mike, love your videos and have been a sub of yours since the VERY early days (I was there before you hit 100). One piece of constructive criticism and please take it a such.
PLEASE remove the fake iPhone text sounds. They cheapen your video and just irritate folks. Forcing folks to look at their phone using these sounds is not a good way to do it.
Again, love your videos and mean this comment in a helpful way.
I was able to discount the price of a car, if I financed through the dealer, as they got a cut from the lender.
Mike could you talk about buying vehicle at the end of a 3 year lease, is there room for negotiation on the price?