Man, it’s so great when dealerships want to cooperate and sell you a car. I was at a Toyota dealership in Orlando trying to negotiate, I gave them a otd offer, they realized I was very informed how the business works (thanks to you Tomi!) and they didn’t want to negotiate based of the selling price, but from monthly payments only!!! (This was insane to me) can’t believe dealers are willing to lose a business just because the customer is informed. I left, called another dealership, made them a otd offer (6%off msrp on a grand highlander) and they accepted!! Super easy
As someone who has tried purchasing a car in Orlando, it is very difficult to get good deals because of the less competition there. I go to Ocala and get good deals there all the time. Good on you that another dealership gave you a good deal. Great choice for the Grand Highlander
@@SupraManGhighly desirable locations in Florida are a total pain to buy a new car in. Too many people in Florida. There is always someone with money willing to pay. You are smart, go shop in the second tier markets and get a better deal.
@@midnightexpress1567 yeah that is where she got screwed. She saved 4k on her car and had to pay some smart dude to spend time on the phone with numerous people going through the loops of a bunch of words that most people just don't understand well enough to talk about let alone negotiate. DAMN HIM NOW SHE ONLY SAVED $3,000 WHAT A SCAM ARTIST! Please tell me you are old enough to drive.
We got 10% off msrp for a Honda civic sport touring earlier this month and luckily they didn't make us finance, I just pulled out my checkbook and dealt with their sour attitude from that point on. It's crazy how their mood changes when you say no to all the add ons and pay cash.
@@alexg9727if he anyway was gonna pay cash, he can just finance with them and pay the whole thing in a month. He would have to pay interest for only 1 month.
I have been buying new cars for personal use and for my business for 30+ years. I always spec a car out and email these specs to area dealers and ask for a "drive out quote". I order every car i have ever bought. I always stipulate that the quote is to nit incluse any rebates - applicable rebates will be added in once the car is delivered. This is so easy and eliminates anybof the BS that notmally occurs in new car negotiating.
so instead of going on the lot and choosing one, you just build one on a website and show them? im guessing this avoids alot of the bs fines dealers add on the lot cars. I would appreciate if you tell me more about this
Hey Tomi! Have you thought of doing a referral program? I shared this video with two friends today. Both are interested in paying for your services and I foresee them using you. Maybe in the future you can have a referral program? Example: For every 5 referrals, you get free or discounted services with Delivrd finding the perfect car. Just a thought! 🤙🏻
Her current car has a loan on it with a double digit rate. While this does explain why she needs someone helping her with a car purchase it also throws some red flags for me. Was her credit bad previously or did she just over buy and how upside down is she on her current car which I assume she is going to try to trade in. Since we only hear what kind of deal is worked out on the new car if a trade in is later discussed she may be taking a bath on it negating much of the discount on the new.
The new car deal and the situation with her current car are two separate situations. She messed up on her current car and that is that. Water under the bridge that you can’t change. She probably bought it during Covid. Buyers were willing to do just about anything to buy a car during the shortage. That is how important cars are to people and their quality of life. This lady is a payment shopper.
Then you are talking with a dealership that is both dishonest or they don't want you shopping their offer around. Also possible they are doing it to get you in the door so they can essentially force you into a deal. I'd contact other local dealers if you can see if they'll offer something in writing.
How do you handle the trade without seeing it or driving it? How do you get a dealership to honor what you think the trade is worth? I guess how does a trade work in general with you? Thanks
11:26 just fyi, if you would have gone there asking with that paper they would have not done that messed up rate with the financing cause they wouldn’t have wanted you to leave. I think this is the only time that I’d say I think you let them off a bit to easily.
Love your content, learned so much, you're such a smooth talker and got the gift of gab! I fumble up and don't know what to say on somethings. Going to try and book a consult.
I literally have a yellow pad with questions and a pen and don’t let them rush me. Get a solid answer on everything before you move on. You are in control because you are paying them
Since you have been in F&I.. Sounds to me like this buyer was not prime based "being double digit rates!" So are you pulling reports, sending the AAL on the denials and CDF, to know what rate you are quoting to a buyer? Do you have to do the TILA or is the dealer pulling and thats how they are quoting?
My daughter recently purchased a new Honda. She has great credit. The dealer's smarmy F&I manager offered her a "great" rate at 10.9 percent. So those smarmy F&I managers will often try to scam even folks with great credit. A quick look into Honda's current offers showed a Honda Financial rate of 3.9 percent. That smarmy F&I manager quickly changed her offer. The moral of the story? At any car dealer the most dangerous person is always the smiling person in the back office, the F&I manager.
@@jerrylundegaard2592 did your daughter buy a new Honda or used Honda. Dealerships do not set interest rates and during the last 2 years, most dealers have been capped at 2 to 2.5% flat rate. The dealer has no control or power to spin the paper to a higher tier than what the bank's guidelines are. Just simply cannot do it. They are capped at that 2% to 1/2% The feds set that interest rate. If your daughter was looking at a pre-owned car the year and the term is also going to affect what rate she gets. If it's a new Honda as you suggested, then there's something with their credit or some rebate or incentive that she did not qualify for that you are unaware of. Ask your daughter if she'll show you her credit disclosure form which will also give her credit score. That'll tell you how that rate was determined. The dealer 100% gave it to her.
@@CK3KSF A new 2025 Honda. The 3.9 percent rate is a Honda Finance incentive applicable to top tier customers. I am sure the dealer F&I manager simply bumped a buy rate from one of the dealer's finance sources. The F&I manager is not required, apparently, to disclose the Honda Finance rates. Actually new car dealers do set the interest rates when they pull the dealer reserve scam. That is when they bump the actual rate authorized by the financing company. This, of course, results in a high payment from the finance company to the F&I manager. F&I managers are, sadly, not required to disclose this little scam. A quick inquiry into rates for her location reveal bank rates up to 8 percent for top credit customers. Interestingly other finance sources start at around 5 percent. Clearly this F&I manager chose one the dealer's banks with the highest buy rate and then tried to pull the dealer reserve scam by bumping the buy rate by 2 or 2.5 percent. Actually the "dealer did not give her" the subvented Honda Finance rate. My daughter, on my advice, demanded that rate. Clearly my daughter qualified for the subvented rate as the F&I manager finalized the financing at the 3.9 percent rate. I don not need to see her credit disclosure form to know her credit profile. I taught her well.
@@jerrylundegaard2592 I understand your concern about the discrepancy between the dealership's offered rate and Honda Financials' advertised rate. Several factors could contribute to this difference. Individual credit profiles, loan terms, and dealership financing options all play a role in determining the interest rate. Additionally, it's important to note that dealerships have limits on the markup they can apply to interest rates, typically capped at a flat 2% or a maximum mark-up of 2-2.5%. It's unlikely that a dealership would mark up the rate from a buy-rate of 3% to 10.9%, as this would exceed industry standards and could potentially violate regulations. It is important to note, there is zero profit motivation to mark a rate up that high, since the % is not based on the rate itself but rather that amount financed. The dealership is paid 2% of the amount of the loan with backend product depending on the LTV guidelines your deal qualifies for with a lender. For simple math, $10,000 amount financed x 2%=$200.00, if the amount of the loan is $20,000x 2%= $400.00. Furthermore, lenders operate based on tier guidelines, and it's unlikely that any bank would fund a deal with such a significant markup. The dealership would need to adhere to the lender's guidelines, which typically include maximum markup limits and other criteria.
@@CK3KSF I don't have any concern about the F&I manager playing the dealer reserve scam. She didn't succeed. The only factors contributing to this F&I manager playing the dealer reserve scam were (1) an assumption we did not understand that scam and (2) a desire to increase her commission due to selling a bumped interest rate versus a manufacturer's captive finance company's subvented rate. In any car deal at a dealership, the F&I manager is not a friend, not an advocate and not an advisor to the car buyer. The F&I manager is a sales person. In this case the buy rate from the bank she selected as the base of her financing offer was obviously not 3.9 percent. The 3.9 percent was the subvented rate from Honda Finance. The F&I manager wss not required to offer the Honda Finance subvented rate. The F&I manager clearly selected a different finance source to base her financing offer. As with most F&I managers, this one was hoping we did not know the subvented Honda Finance rate. She was wrong. On a $40,000 loan the interest paid by the car buyer if paid as agreed over 60 months with a rate of 8.9 percent the interest paid is $9,704. If the F&I manager is able to bump this to 10.9 percent the interest is $12,062. The dealer will get most of this additional interest as a kickback from the bank. In this case, the F&I manager was forced, due to our knowledge, to write the loan at the subvented 3.9 percent which results in total interest being paid of only $4,091. And the dealer only received a flat fee from Honda Finance for the loan not the several thousand it would have received had its F&I manager been able to pull the dealer reserve scam. As can be seen from the numbers, there is great motivation for the F&I manager to not disclose the manufacturer's captive finance company's subvented rates.
I had a dealer tell me 9 out of 10 people walking thru the door haven't done their homework and don't know what the actual dealer cost is. I did do my homework and he says we normally send you away but my sale would put them over 10 sales for the month and that he would get a higher commission once he sells 10 cars so he took my low offer, works for me...
No one really knows the dealer's actual costs until the vehicle is sold. There are many incentives from the manufacturer, some not known until after the vehicle is sold.
i'm confused about the whole nitrogen tire thing... isn't the air we are breathing already like 80 percent nitrogen?.... are they really charging hundreds/thousands for "pure" nitrogen in the tires which is ABSOLUTELY MEANINGLESS?
Technically, it isn't meaningless. Nitrogen is, from the perspective of the materials of your tires and wheels, completely inert. Oxygen is, well, OXYGEN. It will react (oxidize) with many of the materials in your wheels and tires. So the point of a nitrogen fill isn't for the "benefits" of nitrogen, it's so that there isn't any oxygen in there. Ambient air has @20% oxygen, a nitrogen filled tire has 0% oxygen. As a PRACTICAL matter, the risk of any negative impact from any miniscule amount of oxidation that MAY occur in your tires or even wheels is somewhat less than the chance of you being struck by lighting while celebrating winning the MegaMillions BIG jackpot. Not impossible, but not really something to worry about.
@@johnsanford3596 sooo... IT IS meaningless.... you didn't have to type a single sentence... furthermore what happens the very first time i need to go to a gas station and add air to my tires.... i'm guessing NOT 100% nitrogen.... just admit, it's a complete worthless scam that provides zero value and apologize for forcing me to type this reply with your provocative horse shit
A car dealer fee, regardless of what they call it, is a FAKE fee if it is included in the taxable amount. Essentially such fees are nothing more than part of the price. Dealers use the FAKE fee scheme to increase profits by confusing customers. Just what car dealers do. Tax is not an add-on. Sales tax is imposed by the state and is not negotiable and must be paid.
The only things that are mandatory on a vehicle sale are freight and pre-delivery inspection to get the car to the dealership and ensure it's road worthy, and any regulatory charges that the government applies. For example, in Canada we have air tax (for air conditioning), a tire tax (covers recycling of the tires after their useful life), and a registration fee. You might also be paying a fee to register the loan/lien with the bank as well. So everything is open for negotiating besides those standard fees. The price of the car itself, admin/doc fee's, things the dealer installs, nitrogen (my favourite), etching...is all free game. If they really want to keep nitrogen as a line item to look like they "won", tell them to take the $200 off the vehicle price. Just make sure you check all your numbers. Then at the end with the final price is taxes which of course you have to pay.
@@Hardcopy2362 Freight is included in the MSRP and is negotiated as the price. There is no separate charge which should be paid for freight. Pre-delivery is paid by the manufacturer. There is no reason anyone should pay a car dealer for pre-delivery work.
@@josephkelleher8820 The sad thing is so many of these TH-cam gurus suggest those doc fees are OK. As you note they are not. The minor cost to document a sale is a dealer cost of business. As such those costs are included in the selling price. The selling price includes all dealer costs plus dealer profit. An inspection fee is only mandatory if it is a state required fee to be paid by the buyer. Otherwise, such a fee is a dealer cost of business included in the selling price. Any fee which is included in the taxable amount is a fake fee, period.
Got my 2024 Mazda cx90 phev plus for 700 a month. Don’t personally think I got a great deal this time. I’ll be buying teslas from no on just to avoid the stupid negotiations.
How do you get away with saying you live close to all these dealers? Fake numbers? IP phones? One day you're in california, the next you're in Florida, on the weekend you're in Illinois and Dallas... I mean whats the deal there?
What resource are you using for speech to text? Because it’s not working. The Internet is getting overloaded with text that does not match the speech on the screen. If you can’t handle rectifying those details, why trust you with other details? If deaf individuals can’t make sense of the text, what good is the text?
Double digit interest rates....? No thanks. I went to buy a car recently, was told 4% interest and laughed at it. Double digits... that woman should not be buying a car.
Can you please let us in on the negotiation with the first dealer where you got $4100 off to begin with? I think thats the piece everyone would be interested in
@@Delivrd thank you! Appreciate the videos. Really helpful. If you do not mind, in case you have the first interaction recorded, can you post it on YT?
Dealers better wake up, market adjustments and add-ons are just stupid, you are forcing your customer to make sure they never return. Last dealer I went to had a stereo addon on the price sheet, 5 lines down same stereo add-on, ask about it, and they say that's the market adjustment. Too lazy to even try hiding the shenanigans.
I can appreciate the educated and shrewd buying approach with this channel but not the financing portions. Financing new cars is a horrible idea and a bonafide middle class trap.
If you enjoy dealing with these people, you can. There’s a large segment of the population that don’t want all the hassles involved along with scams run by so many dealers.
Shipping a vehicle always comes with some risk as well. Sometimes it's easier to cut your losses and inspect things before delivery than fight with a dealership about who caused that scuff or scratch. Just my personal opinion though. For an example I saw someone post on reddit recently that they bought a used car and had it shipped to them. Turns out it was a smokers vehicle and even though they asked before making the purchase, they basically have no recourse with the dealer.
@@Hardcopy2362 yeah I was thinking more on the cost of just flying out and driving back. He did said they were not too far from Arizona provided all that was true. Then again, that opens a whole other realm of difficulties.
Agreed. Being successful at getting that first 4100 is absolutely key here. Knowing how to do that correctly without the dealer laughing in your face is the first step to getting another dealer to match if not beat it.
How is it fair to the dealership that gave you a written quote with the best price and you are going with the dealer that only matched it? You wouldn't have gotten the matched price had the other dealer not given you that quote. You owed it to first dealership to purchase their car since you said they are not that far away.
This right here is why we never unless under incredible circumstances entertain this type of buyer. It loses our money and even more importantly or time. The first dealer is the sucker we all know and love. The sales rep/ management team were weak
@@Adrian-mm8icwhen inventory levels are rapidly rising, the management team doesn’t give a shit about the sales people. They care more about having a chance of getting any sale they can. Covid years are over.
@AJourneyOfYourSoul Losing money on one deal is not my main complaint. It's the simple fact that the first dealer went through everything to give the sale count away. Commit to a number over the phone with a non-refundable deposit to secure the count with this nonsense or move on
Hey! I have a great contact for you for a Mazda in Georgia. Let me know if interested. I spoke to 6 different Mazdas and negotiated and they gave me an amazing discount that NO ONE would match. Let me know
sooo... all your clients buy these cars without test driving them first? I understand that theyre new... but still, cmon, always gotta test drive it to see if anythings wrong w it
Its a new car, IF there is anything wrong (which I have done a thousand deals this year and I haven't had a single mechanical thing with a car on any of those deals) they would be convered under warranty. But again this doesn't happen.
![Chevy Ripped Me Off: Undercover Investigation [TRUTH REVEALED]](http://i.ytimg.com/vi/5R-KDCfm3qo/mqdefault.jpg)
I would be so tempted to walk when I hear "nitrous tires"...
You mean you don't see the value of the dealer charging hundreds of dollars instead of just going to Costco?
Man, it’s so great when dealerships want to cooperate and sell you a car. I was at a Toyota dealership in Orlando trying to negotiate, I gave them a otd offer, they realized I was very informed how the business works (thanks to you Tomi!) and they didn’t want to negotiate based of the selling price, but from monthly payments only!!! (This was insane to me) can’t believe dealers are willing to lose a business just because the customer is informed. I left, called another dealership, made them a otd offer (6%off msrp on a grand highlander) and they accepted!! Super easy
Which Toyota in Orlando?
As someone who has tried purchasing a car in Orlando, it is very difficult to get good deals because of the less competition there. I go to Ocala and get good deals there all the time. Good on you that another dealership gave you a good deal. Great choice for the Grand Highlander
@@SupraManGhighly desirable locations in Florida are a total pain to buy a new car in.
Too many people in Florida. There is always someone with money willing to pay.
You are smart, go shop in the second tier markets and get a better deal.
Negotiating on monthly payment is wild. They can jack up the car and make it 84 months to make the payment seem lower.
Most people don’t know but you can inflate your tires at costco with nitrogen for free
It’s called air. 78.09% nitrogen.
It should be illegal to put pre-installed dealer add ons.
Why? You aren't being forced to buy one with dealer installed add-ons! There is always someone willing to pay extra for those add-ons!
@BigBadJohnDiesel the problem is the bait and switch. Put the add ons to the advertising price
Yes but it shouldnt be MANDATORY genius.@BigBadJohnDiesel
@@BigBadJohnDieselThen let those customers select those add-ons when they make their purchase.
You can literally hear the smile on her face when she says "Really" about getting her great deal car tomorrow!
Yes you can :) Welcome to Delivrd
And then pay an extra $1,000 to The negotiator, don't forget.
@@midnightexpress1567 rather pay 1k to negotiator than a dealership tbh.
@@midnightexpress1567it’s about saving time and hassle and preserving your serenity.
For lots of people with high incomes, it’s worth it.
@@midnightexpress1567 yeah that is where she got screwed. She saved 4k on her car and had to pay some smart dude to spend time on the phone with numerous people going through the loops of a bunch of words that most people just don't understand well enough to talk about let alone negotiate. DAMN HIM NOW SHE ONLY SAVED $3,000 WHAT A SCAM ARTIST!
Please tell me you are old enough to drive.
We got 10% off msrp for a Honda civic sport touring earlier this month and luckily they didn't make us finance, I just pulled out my checkbook and dealt with their sour attitude from that point on. It's crazy how their mood changes when you say no to all the add ons and pay cash.
stop lying. You financed at Honda 6% rate from Honda financing
And it is sour after that realization they can’t screw you isn’t it.
@@alexg9727if he anyway was gonna pay cash, he can just finance with them and pay the whole thing in a month. He would have to pay interest for only 1 month.
What are add on’s?
I have been buying new cars for personal use and for my business for 30+ years. I always spec a car out and email these specs to area dealers and ask for a "drive out quote". I order every car i have ever bought. I always stipulate that the quote is to nit incluse any rebates - applicable rebates will be added in once the car is delivered. This is so easy and eliminates anybof the BS that notmally occurs in new car negotiating.
so instead of going on the lot and choosing one, you just build one on a website and show them? im guessing this avoids alot of the bs fines dealers add on the lot cars. I would appreciate if you tell me more about this
I will never purchase a vehicle from a dealership again. They are criminals! 😊
Hey Tomi! Have you thought of doing a referral program? I shared this video with two friends today. Both are interested in paying for your services and I foresee them using you. Maybe in the future you can have a referral program? Example: For every 5 referrals, you get free or discounted services with Delivrd finding the perfect car. Just a thought! 🤙🏻
Her current car has a loan on it with a double digit rate. While this does explain why she needs someone helping her with a car purchase it also throws some red flags for me. Was her credit bad previously or did she just over buy and how upside down is she on her current car which I assume she is going to try to trade in. Since we only hear what kind of deal is worked out on the new car if a trade in is later discussed she may be taking a bath on it negating much of the discount on the new.
My thoughts exactly
The new car deal and the situation with her current car are two separate situations.
She messed up on her current car and that is that. Water under the bridge that you can’t change.
She probably bought it during Covid. Buyers were willing to do just about anything to buy a car during the shortage.
That is how important cars are to people and their quality of life.
This lady is a payment shopper.
Yes, there going to get her in the trade so this deal isn’t over by far😢
Exactly why I went to my credit union the day after I bought my truck and refinanced through my credit union at 6% lower
Can't believe dealers still do Nitro tires lmao 😂
Tomi, what do I do if the dealership isn’t wanting to put the quote in writing! Thanks
Then you are talking with a dealership that is both dishonest or they don't want you shopping their offer around.
Also possible they are doing it to get you in the door so they can essentially force you into a deal. I'd contact other local dealers if you can see if they'll offer something in writing.
You call other dealers and just keep calling. Once you get a decent deal in writing, it is easier to shop around.
Just got a $5000 off of MSRP and NO ADDons on a 2024 subaru outback premium with option 15 package and 2.9% apr for 72 months.
Love this!
Nice, I worked at Subaru and remember when they adjustment was 5 to 6k over msrp
This is a great deal. What area if you don't mind me asking?
I'm going to check out a Subaru Outback Touring XT this afternoon, that is a certified one. Trying to see if it's worth it, or getting a new one
@@EdwinRodriguez-zt5fx morrisville, nc..Randy Marion Subaru
You’ve got such great skills, navigating multiple dealers!
because he knows the sleazeball language
How much do you charge to help your customers shop for the best deals?
I charge 1k for this service!
5/28/24...WITH SUCH RIDICULOUS HIGH MSRP ....THEN THEY'RE HOING TO HAVE HIGH BSMK INTEREST RATE?????
FORGET IT! 11:59
Double digit financing rate on the trade. Very ouch!
Do you help with vehicle trade torward purchase?
As soon as the client said she currently has double digit interest rate the hair on my neck stood up.
How do you handle the trade without seeing it or driving it? How do you get a dealership to honor what you think the trade is worth? I guess how does a trade work in general with you? Thanks
Most dealerships will do a sight unseen appraisal. Also Carvana, Carmax, CLicklane, Algo are great resources!
customer sounds REALLY happy. Good job. Although i would have preferred 5k off 🙂
11:26 just fyi, if you would have gone there asking with that paper they would have not done that messed up rate with the financing cause they wouldn’t have wanted you to leave. I think this is the only time that I’d say I think you let them off a bit to easily.
should I pay $500 for a '50 states emission fee"?
Love your content, learned so much, you're such a smooth talker and got the gift of gab! I fumble up and don't know what to say on somethings. Going to try and book a consult.
Same same
I literally have a yellow pad with questions and a pen and don’t let them rush me. Get a solid answer on everything before you move on. You are in control because you are paying them
Oh man I was listening to the live and all the sudden video unavailable. What happened?
Since you have been in F&I.. Sounds to me like this buyer was not prime based "being double digit rates!" So are you pulling reports, sending the AAL on the denials and CDF, to know what rate you are quoting to a buyer? Do you have to do the TILA or is the dealer pulling and thats how they are quoting?
My daughter recently purchased a new Honda. She has great credit. The dealer's smarmy F&I manager offered her a "great" rate at 10.9 percent. So those smarmy F&I managers will often try to scam even folks with great credit.
A quick look into Honda's current offers showed a Honda Financial rate of 3.9 percent. That smarmy F&I manager quickly changed her offer.
The moral of the story? At any car dealer the most dangerous person is always the smiling person in the back office, the F&I manager.
@@jerrylundegaard2592 did your daughter buy a new Honda or used Honda. Dealerships do not set interest rates and during the last 2 years, most dealers have been capped at 2 to 2.5% flat rate. The dealer has no control or power to spin the paper to a higher tier than what the bank's guidelines are. Just simply cannot do it. They are capped at that 2% to 1/2% The feds set that interest rate. If your daughter was looking at a pre-owned car the year and the term is also going to affect what rate she gets. If it's a new Honda as you suggested, then there's something with their credit or some rebate or incentive that she did not qualify for that you are unaware of. Ask your daughter if she'll show you her credit disclosure form which will also give her credit score. That'll tell you how that rate was determined. The dealer 100% gave it to her.
@@CK3KSF A new 2025 Honda. The 3.9 percent rate is a Honda Finance incentive applicable to top tier customers.
I am sure the dealer F&I manager simply bumped a buy rate from one of the dealer's finance sources. The F&I manager is not required, apparently, to disclose the Honda Finance rates.
Actually new car dealers do set the interest rates when they pull the dealer reserve scam. That is when they bump the actual rate authorized by the financing company. This, of course, results in a high payment from the finance company to the F&I manager. F&I managers are, sadly, not required to disclose this little scam.
A quick inquiry into rates for her location reveal bank rates up to 8 percent for top credit customers. Interestingly other finance sources start at around 5 percent. Clearly this F&I manager chose one the dealer's banks with the highest buy rate and then tried to pull the dealer reserve scam by bumping the buy rate by 2 or 2.5 percent.
Actually the "dealer did not give her" the subvented Honda Finance rate. My daughter, on my advice, demanded that rate.
Clearly my daughter qualified for the subvented rate as the F&I manager finalized the financing at the 3.9 percent rate. I don not need to see her credit disclosure form to know her credit profile. I taught her well.
@@jerrylundegaard2592 I understand your concern about the discrepancy between the dealership's offered rate and Honda Financials' advertised rate. Several factors could contribute to this difference. Individual credit profiles, loan terms, and dealership financing options all play a role in determining the interest rate.
Additionally, it's important to note that dealerships have limits on the markup they can apply to interest rates, typically capped at a flat 2% or a maximum mark-up of 2-2.5%. It's unlikely that a dealership would mark up the rate from a buy-rate of 3% to 10.9%, as this would exceed industry standards and could potentially violate regulations.
It is important to note, there is zero profit motivation to mark a rate up that high, since the % is not based on the rate itself but rather that amount financed. The dealership is paid 2% of the amount of the loan with backend product depending on the LTV guidelines your deal qualifies for with a lender. For simple math, $10,000 amount financed x 2%=$200.00, if the amount of the loan is $20,000x 2%= $400.00.
Furthermore, lenders operate based on tier guidelines, and it's unlikely that any bank would fund a deal with such a significant markup. The dealership would need to adhere to the lender's guidelines, which typically include maximum markup limits and other criteria.
@@CK3KSF I don't have any concern about the F&I manager playing the dealer reserve scam. She didn't succeed.
The only factors contributing to this F&I manager playing the dealer reserve scam were (1) an assumption we did not understand that scam and (2) a desire to increase her commission due to selling a bumped interest rate versus a manufacturer's captive finance company's subvented rate.
In any car deal at a dealership, the F&I manager is not a friend, not an advocate and not an advisor to the car buyer. The F&I manager is a sales person.
In this case the buy rate from the bank she selected as the base of her financing offer was obviously not 3.9 percent. The 3.9 percent was the subvented rate from Honda Finance. The F&I manager wss not required to offer the Honda Finance subvented rate.
The F&I manager clearly selected a different finance source to base her financing offer. As with most F&I managers, this one was hoping we did not know the subvented Honda Finance rate. She was wrong.
On a $40,000 loan the interest paid by the car buyer if paid as agreed over 60 months with a rate of 8.9 percent the interest paid is $9,704. If the F&I manager is able to bump this to 10.9 percent the interest is $12,062. The dealer will get most of this additional interest as a kickback from the bank.
In this case, the F&I manager was forced, due to our knowledge, to write the loan at the subvented 3.9 percent which results in total interest being paid of only $4,091. And the dealer only received a flat fee from Honda Finance for the loan not the several thousand it would have received had its F&I manager been able to pull the dealer reserve scam.
As can be seen from the numbers, there is great motivation for the F&I manager to not disclose the manufacturer's captive finance company's subvented rates.
I had a dealer tell me 9 out of 10 people walking thru the door haven't done their homework and don't know what the actual dealer cost is. I did do my homework and he says we normally send you away but my sale would put them over 10 sales for the month and that he would get a higher commission once he sells 10 cars so he took my low offer, works for me...
No one really knows the dealer's actual costs until the vehicle is sold. There are many incentives from the manufacturer, some not known until after the vehicle is sold.
They do send informed buyers down the road. I had 3/4 dealers refuse to give me pricing when I presented and on paper deal I wanted them to beat.
It’s all about timing and inventory levels.
I heard the CX 90 has motor problems
Transmission and fit & finish issues. Watch Savagegeese.
Every car/truck has its own problems!
the fact he didn't take the deposit made me so mad as a car salesman myself
She's so stoked!
Is there no penalty for paying a car off early in standard financing?
Usually no. You will need to read the financing section of the contract to see what it says. It will state on the contract if there is a penalty.
Dealer wants you to hold loan for 90 days so they don't get charged back their commission if you pay it off before 90 days.
Most have no prepayment penalty. Dealers will lie and say you have to wait 90 days, but forget that, you can do it the same week.
what do you charge for your services. I know several individuals that would consider hiring you.
I charge 1k on my services!
@@Delivrd Thank you. I will let some people know
i'm confused about the whole nitrogen tire thing... isn't the air we are breathing already like 80 percent nitrogen?.... are they really charging hundreds/thousands for "pure" nitrogen in the tires which is ABSOLUTELY MEANINGLESS?
you can stop at costco and get it for free
Technically, it isn't meaningless. Nitrogen is, from the perspective of the materials of your tires and wheels, completely inert. Oxygen is, well, OXYGEN. It will react (oxidize) with many of the materials in your wheels and tires. So the point of a nitrogen fill isn't for the "benefits" of nitrogen, it's so that there isn't any oxygen in there. Ambient air has @20% oxygen, a nitrogen filled tire has 0% oxygen.
As a PRACTICAL matter, the risk of any negative impact from any miniscule amount of oxidation that MAY occur in your tires or even wheels is somewhat less than the chance of you being struck by lighting while celebrating winning the MegaMillions BIG jackpot. Not impossible, but not really something to worry about.
@@johnsanford3596 sooo... IT IS meaningless.... you didn't have to type a single sentence... furthermore what happens the very first time i need to go to a gas station and add air to my tires.... i'm guessing NOT 100% nitrogen....
just admit, it's a complete worthless scam that provides zero value and apologize for forcing me to type this reply with your provocative horse shit
Are dealer dock fee and taxes considered add ons? Or just some random various stuff on the car.
A car dealer fee, regardless of what they call it, is a FAKE fee if it is included in the taxable amount. Essentially such fees are nothing more than part of the price. Dealers use the FAKE fee scheme to increase profits by confusing customers. Just what car dealers do.
Tax is not an add-on. Sales tax is imposed by the state and is not negotiable and must be paid.
The only things that are mandatory on a vehicle sale are freight and pre-delivery inspection to get the car to the dealership and ensure it's road worthy, and any regulatory charges that the government applies. For example, in Canada we have air tax (for air conditioning), a tire tax (covers recycling of the tires after their useful life), and a registration fee. You might also be paying a fee to register the loan/lien with the bank as well.
So everything is open for negotiating besides those standard fees. The price of the car itself, admin/doc fee's, things the dealer installs, nitrogen (my favourite), etching...is all free game. If they really want to keep nitrogen as a line item to look like they "won", tell them to take the $200 off the vehicle price. Just make sure you check all your numbers.
Then at the end with the final price is taxes which of course you have to pay.
@@Hardcopy2362 Freight is included in the MSRP and is negotiated as the price. There is no separate charge which should be paid for freight.
Pre-delivery is paid by the manufacturer. There is no reason anyone should pay a car dealer for pre-delivery work.
A DOC fee is a junk fee. Pure profit for the dealer. The only mandatory fees are title, state sales tax, registration and inspection fees.
@@josephkelleher8820 The sad thing is so many of these TH-cam gurus suggest those doc fees are OK. As you note they are not.
The minor cost to document a sale is a dealer cost of business. As such those costs are included in the selling price. The selling price includes all dealer costs plus dealer profit.
An inspection fee is only mandatory if it is a state required fee to be paid by the buyer. Otherwise, such a fee is a dealer cost of business included in the selling price.
Any fee which is included in the taxable amount is a fake fee, period.
Got my 2024 Mazda cx90 phev plus for 700 a month. Don’t personally think I got a great deal this time. I’ll be buying teslas from no on just to avoid the stupid negotiations.
700 a month for a Mazda is crazy
Wtf is tire nitrous? He mean Nitrogen? Useless add on lol
Costco offers it for free in there parking lot inflators lol
How do you get away with saying you live close to all these dealers? Fake numbers? IP phones? One day you're in california, the next you're in Florida, on the weekend you're in Illinois and Dallas... I mean whats the deal there?
What resource are you using for speech to text? Because it’s not working. The Internet is getting overloaded with text that does not match the speech on the screen. If you can’t handle rectifying those details, why trust you with other details? If deaf individuals can’t make sense of the text, what good is the text?
If she had a trade that not in numbers yet it’s by far not a done deal😢
Double digit interest rates....? No thanks. I went to buy a car recently, was told 4% interest and laughed at it. Double digits... that woman should not be buying a car.
Her credit must be poop imagine have a double digit interest rate on a vehicle.
I want to be a negotiator! Looking for employees?/partners. I’m a car salesman for ford.
Excellent Video Tom
Many thanks!
Can you please let us in on the negotiation with the first dealer where you got $4100 off to begin with? I think thats the piece everyone would be interested in
I can do that, so many people wanted to see how they ended!
@@Delivrd thank you! Appreciate the videos. Really helpful. If you do not mind, in case you have the first interaction recorded, can you post it on YT?
It will take more than 4,170 off to get a deal done on these overpriced vehicles
Dealers better wake up, market adjustments and add-ons are just stupid, you are forcing your customer to make sure they never return. Last dealer I went to had a stereo addon on the price sheet, 5 lines down same stereo add-on, ask about it, and they say that's the market adjustment. Too lazy to even try hiding the shenanigans.
No deal just milking the system with finances is just how that they make money.
I can appreciate the educated and shrewd buying approach with this channel but not the financing portions. Financing new cars is a horrible idea and a bonafide middle class trap.
I don't negotiate and i tell'em wat i give and it's excepted or rejected i don't give a fuck cuz they make their livin off us
Buying based on payment....nooooi
Dealership left me WHAT?
Really not 4,000 savings. Got to include his fee.
Sure, but my clients aren’t hiring me to save money. They are hiring me to save time energy and anxiety.
If you enjoy dealing with these people, you can. There’s a large segment of the population that don’t want all the hassles involved along with scams run by so many dealers.
I'm confused, so she had a 4100 discount plus subvented rate and she chose the closer option with the mark up?
I'm also confused about this.
Shipping the car from the far dealer was an additional 1600. That 2 percent markup on 58k will run you like 2500 over 5 years but she gets it next day
Shipping a vehicle always comes with some risk as well. Sometimes it's easier to cut your losses and inspect things before delivery than fight with a dealership about who caused that scuff or scratch. Just my personal opinion though. For an example I saw someone post on reddit recently that they bought a used car and had it shipped to them. Turns out it was a smokers vehicle and even though they asked before making the purchase, they basically have no recourse with the dealer.
@@Hardcopy2362 yeah I was thinking more on the cost of just flying out and driving back. He did said they were not too far from Arizona provided all that was true. Then again, that opens a whole other realm of difficulties.
Buying a new car without test driving it is NEVER a good idea.
Great you got a dealer to match, but would have loved to see the negotiation with the original dealer- how you got the $4100 off to begin with. 🤔
+1
I’ve done videos on how I start these conversation. I just wanted one finishing it so y’all saw that process. I can post the original.
Agreed. Being successful at getting that first 4100 is absolutely key here.
Knowing how to do that correctly without the dealer laughing in your face is the first step to getting another dealer to match if not beat it.
+1
He just keeps calling until he finds a dealer willing to do it. It is a numbers game.
Nice - beautiful car
It sure is!
Can you do a negotiation for me?
You can hire him, this is what he does!
First!!! Just subbed today!
Love your vids.
Welcome aboard!
Are you buying any of these cars you call in for or are you just wasting everyone’s time to expose dealerships?
We are negotiating for our clients
How is it fair to the dealership that gave you a written quote with the best price and you are going with the dealer that only matched it? You wouldn't have gotten the matched price had the other dealer not given you that quote. You owed it to first dealership to purchase their car since you said they are not that far away.
The first dealership is 4hrs away.
@@Delivrd in your video you said it was a thirty minute drive?
This right here is why we never unless under incredible circumstances entertain this type of buyer. It loses our money and even more importantly or time. The first dealer is the sucker we all know and love. The sales rep/ management team were weak
@@Adrian-mm8icwhen inventory levels are rapidly rising, the management team doesn’t give a shit about the sales people.
They care more about having a chance of getting any sale they can.
Covid years are over.
@AJourneyOfYourSoul Losing money on one deal is not my main complaint. It's the simple fact that the first dealer went through everything to give the sale count away. Commit to a number over the phone with a non-refundable deposit to secure the count with this nonsense or move on
No Mazda for me
Hey! I have a great contact for you for a Mazda in Georgia. Let me know if interested. I spoke to 6 different Mazdas and negotiated and they gave me an amazing discount that NO ONE would match. Let me know
Wow which dealership?
@@JasonAngWeiLung Hennessy Mazda in marrow ga
Are you in ga?
@@IAmJeka im not but what was the amazing discount you got?
Wow you played him like a fiddle
:)
sooo... all your clients buy these cars without test driving them first? I understand that theyre new... but still, cmon, always gotta test drive it to see if anythings wrong w it
Its a new car, IF there is anything wrong (which I have done a thousand deals this year and I haven't had a single mechanical thing with a car on any of those deals) they would be convered under warranty. But again this doesn't happen.