Ed’s sales skills are out of this world. He just told a story taught something and in the end sold me an extended warranty without me even realizing it
Oooooooooor you can ask for 50% off and threaten you'll take your "hard earned money" somewhere else, then storm out when they refuse. My mom tried that once and I was mentally scarred ever since
I've had people offer $15,000 for a new Chevy Cruze that stickers for $23,000 because a Silverado had $10,000 is rebates. "Uhh, I'll have to pass on your offer my customer." Customer: "I know your still making $4,000!" If you paid sticker I'd gross $905....
The sponsors needs to pay double. Ed is out here slipping sponsors and we don't even know it, that was borderline subliminal messaging! David Copperfield of cars.
Back in my day that used to be called neurolinguistic programming, or NLP. But if a guy is willing to shell out some secrets for me to get a deal while subvetrly shilling a product, i guess why not.
I'm a used car dealer and it's wild how some people will watch this and bring in a 320k mile Crown Victoria without a battery and 4 dry-rotted spare tires wanting $5k for it.
I would just kick the trade immediately. There just isn't going to be any spread, and its always going to be worth more to them than it is to you. Good luck!
Actually, I love Ed. I've been in the business for over 26 years. He is telling you 100% truth. And I am not afraid of someone being very informed. It actually makes my job much easier and the buyer has a quicker experience.
As a former car salesman, these videos are great. When I explained to my friends that car dealerships operate at the second lowest profit margin of any market in the US, they couldn't believe me.
That's not a tactic. A tactic implies that you are misleading or trying to get one over on the other party. If you do this and immediately pay off the loan so the dealership can't make money, this is a scummy tactic. This is a fair bargain if you execute the deal like Ed explains, not a "tactic"
Best advice ever, figure out what you want, email every dealership in the country with a flat offer, one of them will accept it. I bought a brand new Jeep Wrangler Rubicon back in 2013 for 10k cheaper than you could configure it on Jeeps website. The dealership that responded was just over 1000 miles away, they shipped me the Jeep for $500 after the paperwork was completed. Don't get emotional with dealerships, its a waste of time. However feel free to leave them a bad review on google, yelp, trustpilot, etc.
I have worked in auto sales for Toyota and Ford. This is a good video as it covers many things that are not well known. All that said - the best way to make sure you are getting a competitive price for a new car is to fax or email a request for pricing OUT THE DOOR on a particular vehicle on their website. Let it be known you are a price shopper and you are bidding their competition (do not name other dealers - just let me know you are doing a competitive price shopping analysis for this vehicle). Generally speaking you will get them to cut a VAST AMOUNT of the fat from the price on the FIRST QUOTE... something that might take you hours at the dealership in person, if they do at all. So now you have 3-4 competitive quotes... but you really don't want travel a long way to buy. It's okay to go back to your preferred dealer and let them know that you like their car but you will only buy if they match the price of another quote. In the end they usually will. EASY!!! No need to keep up with the rebates and holdback and incentives and all that. Just let the market do it's thing. Also I might add I do not think it pays to feel ultra-competitive as some buyers get a bit anal. What you want is a price that is competitive - its okay if they make some money too.
Lol as a 21 year old car salesmen, GM Mark of Excellence 2019, THIS IS COMPLETELY CORRECT. I would show my customers our invoices. Wed “lose our ass” on new cars but dang, finance makes it up.
As a GM car salesman myself we lost our ass on many cars. Chevy bolt selling at $12,000 off in total with the $4,000 dealer discount in it. Made zero money
@@OneManOnFire I remember that. But during Covid I was averaging 12k a copy in gross over 25 cars a month the whole summer.. the days of selling the shit on the lot for a loss are over. Gm sent us 150 SLT1 FWD Acadias in 2019 that we sold 2k under invoice
@@ericfan1223 150 Acadia! We barely stocked 150 Chevys and only 100 GMC mostly fully loaded. I could only imagine selling a car at sticker. It only happened a few times.
Ed, I really appreciate your insights. As someone who knows nothing about car buying or how the process works, it's nice to have you break it down in a very easy to understand way. Love your channel keep up the good work!
Good thing I watched your video. Got pre-approved for 1.9apr. Went to the dealer, we negotiated on the price, after I explained I had a bank approval, they said they worked with that bank, that they could do the paperwork there and it would be faster. Well we'll, they came back with a 3.4apr. Which I refused and told them they told us 1.9. We went back and forth for a long time and they kept refusing. Well long behold I called the bank and the dealer actually submitted an application canceling our original so the bank explained the sneakyness on what they did, the bank manager assured me they would honor the 1.9.... she called them and told them to change it to 1.9. Let's just say signing paperwork was so awkward and quiet 😆 🤣
Being Ed, I expected it to be cleanly worded and educational, but this was extremely well done and I learned way more about how dealers operate than I thought I would. Thank you again VINwiki
Just to be clear, I'm not throwing shade at Ed or any car dealers in specific. I'm speaking in general terms and your average used car sleeze bag. You know, the one guy who couldn't become a politician.
I worked for a new car dealership for 10 years. In all 3 departments; parts, service and sales. What Ed has explained here is 100% absolute facts. This is information that can be incredibly helpful to a buyer. Thank you for this Ed. When people ask me for advice from now on I'm just going to link this video!
Mr. Bolian!!!!! Finally!! Thank you for this Information, I take it all as great advice on the matters .... Again, Thanks man. I always enjoy the semi-off topic type stories and all informative content as such!!! Always a home run and a pleasure when you're "the guy in the chair" (-Ray Lafleur. TPB!). A++ production as well... Best always, Joe
I love your videos and your car stories Ed Bolian( Doug T & Rabbit). Thanks to your influence I recently bought an Audi S5 from Brisbane and due to Australian COVID restrictions I was forced to take a 5050km drive home to Adelaide instead of the normal 2200km, it was a blessing in disguise. I did the trip on my own in 4 days, that isn't setting any Ed Bolian style records but I didn't crash or get any speeding tickets and easily had the time of my life . I'm very thankful to you Ed for giving me the confidence to buy an Audi in the first place & the extra urge for a cross country trip.
I am a Finance Manager at a Car Dealership. This guy gets it. Many customers want the dealer to make NO MONEY. It can be a partnership if you work with us we will work with you. I would sell this guy a car anytime.
Thanks for this Ed. You probably don''t know remember my question but we did lease the 2019 Urus. Been very happy. I don't know what law of physics my wife would have to violate to flip it. Very, very confident in the safety. Con: my wife has a lesd foot but the mileage isn't close to what's advertised.
I remember when I bought my last car I’d already been approved a loan from my bank and when I went in I was curious what apr the dealer could offer and they came back to me with a loan from the same bank id gotten an approval from, but the apr was 3% higher. I showed them and they magically lowered it to match the apr my bank was offering me directly lol.
As someone who works in the car business, he is completely correct. What a lot of people don't account for is each dealership (hell, each employee at a dealership) providing a different level of customer service and convenience at each of these levels. They have to make money to keep the doors open, and not every place is trying to screw you at every corner. Some are, granted, but some aren't. If you treat a sales or finance or service person without being hostile, you'll likely have a better experience and pay less - just a personal note.
I will generally go in with questions I already have the answers to, and base my "allowed" profit on the deal on the answers I receive. Sounds petty, but I look at it like tipping the salesman for knowing his or her product. I recently bought a work truck and the salesman's first question was "are you sure a 3/4 ton is going to be necessary?" Followed by "let's go weigh your trailer so we have the exact numbers" I had already done that, but did it again. I was impressed by the fact that the salesman was willing to make sure I had the right tool for the job, and not just the most expensive truck they could finance me on. Product knowledge seems to be a secondary concern at some dealerships, so I will gladly reward it when I find it. Car sales is like anything else- if you don't like slimy salesman, don't buy from them. The only reason that the dealers employ that type is that the tactics work.
I've used #4 before. Manufacturer finance arm had a $500 rebate + huge kickback. Ended up getting roughly $2000 off total, paid all but payments to 6 months and paid it off at 6 months and a day. That car was bought new almost 2 years ago and the trade value is $1500 less than I paid.
Number 6, TIMING! Due to the pandemic I knew the dealers were hard up for sales. I got exactly what I wanted for my trade with almost no haggling. I got them to go down another $2k on the truck I was buying plus the extended warranty for half price from a supplier discount as my company supplies factory equipment to the mfg. I walked out with a minimal loan after my down payment. I bought the truck back in May. It's now September, the cheapest I have seen now is $8k more then I paid, all the way up to $11k more then I paid!
The chargeback game... nice tip... and complex enough that most wont use it and spoil that opportunity. One thing not mentioned directly is time of the year - if you are willing to wait until later in a model year, the push to stock the next model year generates a lot of that "trunk cash". I typically hit a dealer up in the summer and state the price I want and leave my contact information for them to call me when they can figure it out... usually one will .. might be the sales person on a bonus bubble, so cast a net and you probably get what you want is reasonable.
Ripping you on your trade-in is another pretty common way to make some quick money. They'll enter the wrong information on your trade (to their advantage) and show you a printout from KBB dealer trade-in book and hope you don't notice. Sometimes they could turn around and just take it to CarMax and make 20% on your trade with the kind of lowball offers a lot of dealers make.
A lot of time they are just sent to the auction to turn a tidy profit. If you're offered $1000-1500 on a car with less than 100k miles (barring extreme cases) they're trying to steal your trade to make money that way
@@liamaldous2624 dealers are mandated by law, people are pissed they can't purchase vehicles direct from manufacturer. Large dealer networks lobby politicians to keep it this way and it pisses people off because dealers only increase the cost of the vehicle. Dealers are a ripoff. Full stop.
@@ryanmanner2503 why do americans have so much issues with having to go to a dealer? because 1) most manufacturers have rules their official dealerships have to follow (as having a bad dealership is bad for them as well), and 2) you don't buy your coca cola straight from coca cola, do you? so why would you have to buy your car straight from the manufacturer? And the manufacturers have to have service stations etc anyway, or are you going to travel 5000km just to collect your new car? so why wouldn't you just buy your car at that same service station?
@@jarnedeprins3617 Having a bad dealer made be "bad" but when it's the only game in town you have no choice. And that's just one flaw in the dealership scheme. You think dealers are necessary when clearly the 70's & 80's showed us otherwise when people purchased non-US vehicles direct to get around nanny-BS. Online buying in general shows otherwise. In fact, being able to do the entire process online only to show up at the dealer to pick up your freshly delivered vehicle and sign a few documents shows them to not be necessary.
I recently walked away from a used Tacoma I was really interested in. I knew it was a one owner trade in and I figured they were trying to double their money on the asking price. When I asked for the best price (after my family buying 2 cars from them in the past) he came back with a discount off asking of only $300 lol . I got up to leave and then the sales manager stepped in and asked what it'd take for me to take it home and I said way better than what they just offered. So he came back this time after running my credit which should be very good enough to be around 3-4% at most. Yeah he knocked off $2000 from asking price BUT my interest was 7.25%. So he was trying to make it up on the back end. I walked. Still looking for a Tacoma
Worked at a GM Chrysler store for 10 years. A 2018 Equinox LT MSRP $30,000 had $1,100 in markup if we charged full sticker, but there was no one who could do that. We were fortunate to have GM Employees who saved thousands more than the public and we would make more and they saved more. We never marked up the rate because it was too easy for people to fact check us on and once you erode that trust chances of selling the vehicle we slim. Some banks and credit unions would pay us a flat 2% of the amount financed and it didn't cost the customer anything. I never really sold a lot of warranties because we were leasing 75% of our new vehicles. A factory extended service contract msrp might be $1,500 which means the cost was $750, but we always marked it up 50% to $1,125. Paint seal cost was $275 by the time we applied it and we charged $499 but I know of other dealers who charged $899 for the same thing and sold twice as much because reasons.
Working at a large DMS in the F&I form programming department has enabled me to gain a ton of knowledge on how dealers operate when a deal happens. The markups on back adds and service/warranty contracts is insane at some of these dealers.
@@FXIIBeaver oh yeah. The worst I've seen so far is a service contract on a brand new Jeep that cost the dealer $900 and they were retailing it for $5k. I about lost it when I saw that. Idk how often they sell it (probably almost never) but still.
Dent & ding plus windshield & the other things you mentioned are all covered by insurance in New Zealand. For Glass we have the full glass buy out option meaning all glass in the car is covered.
I use to be a BMW Service Manager and other than our finance manager our advisors made the most money for the dealership. I did act as an Advisor as well for certain customers, usually the "premium" or difficult customers.
I laughed in a sales person's face viciously when they first tried that on me... I mean full ha, ha ,ha... He was not happy with me... tried to go into the pitch and I stopped him with a warning it would get embarrassing...
Ed shared most without going into great details. Don't forget about how they can use profit spread money from the vehicle you're buying to show you more money for your trade-in. Negotiate the deal on the new one first, THEN drop your trade on them. They are almost forced to show you ACV, or actual cost value. I've seen ACV on a trade be $5. YES, $5 dollars. It was MAYBE a thousand dollar car, but they were ripping into the sales profit by showing the buyer $1500 (taking $1495 from the profit of the new car), and the buyer thinking he's getting a sweet deal. In reality, he left close to $1000 on the table.
Very true, recently seen some super high trade in offers for near junk cars just cause the dealership NEEDED MORE INVENTORY. Seen one guy walk in with a 2002 Ford Ranger Edge in SUPER poor condition and somehow got $2500 trade in eval
If enough people have bad enough experiences that people in general distrust your profession, the profession as a whole is doing something wrong. That doesn’t mean all dealers are bad, but the fact we have to discuss this means that dealers probably shouldn’t exist.
Great tips, it’s crazy how low the margins actually are sometimes. I see why dealers usually try and screw people on trade ins, that’s where big money can be made.
In Ed’s realm I’m sure the margins are wider, I’m selling Hondas with 5 others in a half hour drive, most new car deals we are giving away invoice less all incentives, often minus some hold back
Hi, I love this channel. The only problem I have is that every time Ed talks in a video I get lost becouse he talks so fast. Keep in mind English is not my first language.
“The sales department is usually the biggest client of the service department”... trust, the service department is the bane of my used car managers existence
Last time I bought a new car I told the guy selling all the warranty stuff before he started that I was gonna say no to everything no matter what. He shook my hand and said ok I won’t bother have a nice day. My salesman was surprised whenI came out so fast lol.
To me, the only good thing about buying from a dealer is inventory. It's tough to buy only private party, as i do, will really keep you looking for the right car when the stealership has several on the lot.
@ 4:30 honestly if that was mine, I'd have the roof painted that gray and paint the other side to match and leave it with the blue front clip and gray on the back ⅔. Something about that color color combo I kinda like.
Have a great weekend everyone. Thank you so much for watching.
hey ed, absolutly love your storys! c:
@@ojoface208 👃🏾lol
We appreciate your help and information Ed!
Yo no problem as long as you keep making free t.v shows I'll be here to click play. And occasionally hit like
Thanks Ed!
Ed’s sales skills are out of this world. He just told a story taught something and in the end sold me an extended warranty without me even realizing it
Ed enters the dealership. The salesman: Why am I hearing boss music?
This applies to rabbit too
* VinWiki intro plays *
meh hes easy. At least he know what hes talking about. Most dont and just look like a jackass.
@@djsonicc "And that's how you confuse a dealership so much they just sell the car at a loss." *WINwiki intro plays*
#4 will shock you! Just kidding, hopefully this is useful.
LoL
I was viewer number 504
craigpests channel I was viewer 666
DEALERS HATE HIM!
It's useful
Oooooooooor you can ask for 50% off and threaten you'll take your "hard earned money" somewhere else, then storm out when they refuse. My mom tried that once and I was mentally scarred ever since
Ah yes, the “Karen” technique...
You know sir, these cars are made by people with families who need to be paid, not elves. I can't give it to you.
That’s actually a nice tactic
Tyler Smith i need to eat too
I've had people offer $15,000 for a new Chevy Cruze that stickers for $23,000 because a Silverado had $10,000 is rebates. "Uhh, I'll have to pass on your offer my customer." Customer: "I know your still making $4,000!" If you paid sticker I'd gross $905....
The sponsors needs to pay double. Ed is out here slipping sponsors and we don't even know it, that was borderline subliminal messaging! David Copperfield of cars.
It was quite blatant, we knew it.
He literally made a whole video to plug them. PAY THE MAN!! Lol
@@btvbrndn They already have..
Back in my day that used to be called neurolinguistic programming, or NLP. But if a guy is willing to shell out some secrets for me to get a deal while subvetrly shilling a product, i guess why not.
@@bravobrk It's that smooth sexy voice, gets ya every time!
I'm a used car dealer and it's wild how some people will watch this and bring in a 320k mile Crown Victoria without a battery and 4 dry-rotted spare tires wanting $5k for it.
4 spares? Suuuuure lol
@@insanetaco98 I swear it had space saving spare tires on each corner.
That was what they were asking it for on Craigslist. Or I saw a perfect one with twelve hundred miles go for 10k at Barrett Jackson. lol
I would just kick the trade immediately. There just isn't going to be any spread, and its always going to be worth more to them than it is to you. Good luck!
@@arkautosales6111 Oh absolutely. Couldn't get the guy off the property fast enough.
car dealerships hate this guy!!
Actually, I love Ed. I've been in the business for over 26 years. He is telling you 100% truth. And I am not afraid of someone being very informed. It actually makes my job much easier and the buyer has a quicker experience.
@@jabber8217 im in sales too i gotta grab the next up
As a former car salesman, these videos are great. When I explained to my friends that car dealerships operate at the second lowest profit margin of any market in the US, they couldn't believe me.
Because they are a pointless middleman that doesn’t add any value.
People never understand that percent and dollars aren't the same thing. They just see "lots of dollars" and think that it must be a big margin.
I love that idea about offering to pay whatever interest they want. Great tactic.
Me too...I never even thought about. Great advice.
That's not a tactic. A tactic implies that you are misleading or trying to get one over on the other party. If you do this and immediately pay off the loan so the dealership can't make money, this is a scummy tactic. This is a fair bargain if you execute the deal like Ed explains, not a "tactic"
@@Vitaferox its a great tactic because you get what you want in the end. Don't get it twisted, we're all saying the same thing
Alex P I’m not sure you know what tactic means
Alex P 🤦♂️🤦♂️ tactic- an action or strategy carefully planned to achieve a specific end. Read a fucking dictionary bro....
Best advice ever, figure out what you want, email every dealership in the country with a flat offer, one of them will accept it. I bought a brand new Jeep Wrangler Rubicon back in 2013 for 10k cheaper than you could configure it on Jeeps website. The dealership that responded was just over 1000 miles away, they shipped me the Jeep for $500 after the paperwork was completed. Don't get emotional with dealerships, its a waste of time. However feel free to leave them a bad review on google, yelp, trustpilot, etc.
This is why ed's the boss here. Taught me more than all the school I've ever had in one video.
Lol you're school sucks.
@@frankovercrest2317 so does yours mate. Its "your" not "you're"
@@james-oj3bm And it's 'it's', not 'its'
@@karlnul very true.
What kind of f@#$ school teaches dealership financing because the industry is so messed up?
This is definitely much needed... I'll be damned if I get finessed in a car deal again 😂
I sold cars for 21 years and this is a great explanation.
Ed enunciates his words so well, you can listen to his videos on 1.25 or even 1.5 speed ... quite entertaining actually.
I just say "I'm still not sure" untill they come back with the price I want lol
I have worked in auto sales for Toyota and Ford. This is a good video as it covers many things that are not well known. All that said - the best way to make sure you are getting a competitive price for a new car is to fax or email a request for pricing OUT THE DOOR on a particular vehicle on their website. Let it be known you are a price shopper and you are bidding their competition (do not name other dealers - just let me know you are doing a competitive price shopping analysis for this vehicle). Generally speaking you will get them to cut a VAST AMOUNT of the fat from the price on the FIRST QUOTE... something that might take you hours at the dealership in person, if they do at all. So now you have 3-4 competitive quotes... but you really don't want travel a long way to buy. It's okay to go back to your preferred dealer and let them know that you like their car but you will only buy if they match the price of another quote. In the end they usually will. EASY!!! No need to keep up with the rebates and holdback and incentives and all that. Just let the market do it's thing. Also I might add I do not think it pays to feel ultra-competitive as some buyers get a bit anal. What you want is a price that is competitive - its okay if they make some money too.
Lol as a 21 year old car salesmen, GM Mark of Excellence 2019, THIS IS COMPLETELY CORRECT. I would show my customers our invoices. Wed “lose our ass” on new cars but dang, finance makes it up.
As a GM car salesman myself we lost our ass on many cars. Chevy bolt selling at $12,000 off in total with the $4,000 dealer discount in it. Made zero money
@@OneManOnFire I remember that. But during Covid I was averaging 12k a copy in gross over 25 cars a month the whole summer.. the days of selling the shit on the lot for a loss are over. Gm sent us 150 SLT1 FWD Acadias in 2019 that we sold 2k under invoice
@@ericfan1223 150 Acadia! We barely stocked 150 Chevys and only 100 GMC mostly fully loaded. I could only imagine selling a car at sticker. It only happened a few times.
@@OneManOnFire yeah man! The big stores are fun to work at, but I wish I was at a small one. We get flats
I am going to send this to every friend that asks me for advice about what to do when they go look at a car. Good stuff.
The biggest this is just use your eyes look at everything and push all the buttons.
That was the smoothest intro to an ad I’ve ever seen. Bravo Ed
Ed, I really appreciate your insights. As someone who knows nothing about car buying or how the process works, it's nice to have you break it down in a very easy to understand way. Love your channel keep up the good work!
I have this sneaking suspicion it takes longer for youtube to upload and process the video than it does for Ed to film himself in 1 take.
Good thing I watched your video. Got pre-approved for 1.9apr. Went to the dealer, we negotiated on the price, after I explained I had a bank approval, they said they worked with that bank, that they could do the paperwork there and it would be faster. Well we'll, they came back with a 3.4apr. Which I refused and told them they told us 1.9. We went back and forth for a long time and they kept refusing. Well long behold I called the bank and the dealer actually submitted an application canceling our original so the bank explained the sneakyness on what they did, the bank manager assured me they would honor the 1.9.... she called them and told them to change it to 1.9. Let's just say signing paperwork was so awkward and quiet 😆 🤣
That is the beat and smoothest ad placement I’ve ever seen.
Being Ed, I expected it to be cleanly worded and educational, but this was extremely well done and I learned way more about how dealers operate than I thought I would. Thank you again VINwiki
When do we get a part 2 where you discuss the 916 'dirty' ways dealers make money.
No wait needed - see Kevin Hunter’s channel
Just to be clear, I'm not throwing shade at Ed or any car dealers in specific. I'm speaking in general terms and your average used car sleeze bag. You know, the one guy who couldn't become a politician.
thanks for the info, I greatly appreciate it when you do these and financing videos. It's gonna help me get my dream cars!!
The way he added in Avalon King was smooth as silk. Ed is an absolute beast
I worked for a new car dealership for 10 years. In all 3 departments; parts, service and sales. What Ed has explained here is 100% absolute facts. This is information that can be incredibly helpful to a buyer. Thank you for this Ed. When people ask me for advice from now on I'm just going to link this video!
I've worked in sales at dealerships. There's so much of this I didn't know, and it all makes so much sense now. Thanks Ed.
Mr. Bolian!!!!! Finally!! Thank you for this Information, I take it all as great advice on the matters ....
Again, Thanks man. I always enjoy the semi-off topic type stories and all informative content as such!!! Always a home run and a pleasure when you're "the guy in the chair" (-Ray Lafleur. TPB!).
A++ production as well...
Best always,
Joe
I love your videos and your car stories Ed Bolian( Doug T & Rabbit). Thanks to your influence I recently bought an Audi S5 from Brisbane and due to Australian COVID restrictions I was forced to take a 5050km drive home to Adelaide instead of the normal 2200km, it was a blessing in disguise. I did the trip on my own in 4 days, that isn't setting any Ed Bolian style records but I didn't crash or get any speeding tickets and easily had the time of my life . I'm very thankful to you Ed for giving me the confidence to buy an Audi in the first place & the extra urge for a cross country trip.
Love the channel keep doing what your doing ed!!!
Seriously though, when is the TED Talk?
You mean, Ed talk?
@@joshuad1716 dammm
My family owns a Chevy dealership in glen Burnie MD... This video is spot on!! Ed always makes great video's!
This is real information. Amazing that someone is saying these things on TH-cam.
I am a Finance Manager at a Car Dealership. This guy gets it. Many customers want the dealer to make NO MONEY. It can be a partnership if you work with us we will work with you. I would sell this guy a car anytime.
Thanks for this Ed. You probably don''t know remember my question but we did lease the 2019 Urus. Been very happy. I don't know what law of physics my wife would have to violate to flip it. Very, very confident in the safety. Con: my wife has a lesd foot but the mileage isn't close to what's advertised.
I remember when I bought my last car I’d already been approved a loan from my bank and when I went in I was curious what apr the dealer could offer and they came back to me with a loan from the same bank id gotten an approval from, but the apr was 3% higher. I showed them and they magically lowered it to match the apr my bank was offering me directly lol.
They matched it because they can get money from the bank for referring you as a customer to the bank ;)
Always Be Closing! Haha love the seamless transition into selling a product
As someone who works in the car business, he is completely correct. What a lot of people don't account for is each dealership (hell, each employee at a dealership) providing a different level of customer service and convenience at each of these levels. They have to make money to keep the doors open, and not every place is trying to screw you at every corner. Some are, granted, but some aren't. If you treat a sales or finance or service person without being hostile, you'll likely have a better experience and pay less - just a personal note.
Ed owning my dream house with some dream cars living the life man.
Another great video Ed!
Been doing this since 16. Always great seeing the salesman/ finance people’s eyes get all huge when I pull this shit out on them.
Real MASTER dude I appreciate your time and knowledge!!!
I swear Ed is one of the most intelligent person on TH-cam
Triple net is also a commercial real estate term. Great video thanks for the info!!
Thanks for making this informative and helpful video
Jerry: Yeah, but I'm sayin', that TruCoat, you don't get it and you get oxidization problems. It'll cost you a heck of lot more'n five hundred--
"how much are you paying for your car, 30 grand? And you love how it looks... Right?..."
super insightful, great video Ed!
Wow! Thanks for all of the great info!!
I will generally go in with questions I already have the answers to, and base my "allowed" profit on the deal on the answers I receive. Sounds petty, but I look at it like tipping the salesman for knowing his or her product. I recently bought a work truck and the salesman's first question was "are you sure a 3/4 ton is going to be necessary?" Followed by "let's go weigh your trailer so we have the exact numbers" I had already done that, but did it again. I was impressed by the fact that the salesman was willing to make sure I had the right tool for the job, and not just the most expensive truck they could finance me on.
Product knowledge seems to be a secondary concern at some dealerships, so I will gladly reward it when I find it.
Car sales is like anything else- if you don't like slimy salesman, don't buy from them. The only reason that the dealers employ that type is that the tactics work.
Always great information, Ed. 👍🙂
I've used #4 before. Manufacturer finance arm had a $500 rebate + huge kickback. Ended up getting roughly $2000 off total, paid all but payments to 6 months and paid it off at 6 months and a day.
That car was bought new almost 2 years ago and the trade value is $1500 less than I paid.
Great job
Number 6, TIMING! Due to the pandemic I knew the dealers were hard up for sales. I got exactly what I wanted for my trade with almost no haggling. I got them to go down another $2k on the truck I was buying plus the extended warranty for half price from a supplier discount as my company supplies factory equipment to the mfg. I walked out with a minimal loan after my down payment. I bought the truck back in May. It's now September, the cheapest I have seen now is $8k more then I paid, all the way up to $11k more then I paid!
Last time I was this early, I had no idea I would be devoting 10% of my waking hours yesterday to watching a Rabbit video. Well worth it.
Ed dropping knowledge in this video.
I just started working at a nice dealership, it’s been amazing.
This is a timely video, since I’m sure some viewers will be out there scouting the Labor Day weekend car sales!!
These videos keep reminding me that I've got a Glassparency kit in my garage that I keep forgetting to actually install.
Mark S. lol same here 😂
I love the fact that Ed explained everything but I still distrust dealership and want to buy directly from the manufacturer even more.
The chargeback game... nice tip... and complex enough that most wont use it and spoil that opportunity.
One thing not mentioned directly is time of the year - if you are willing to wait until later in a model year, the push to stock the next model year generates a lot of that "trunk cash". I typically hit a dealer up in the summer and state the price I want and leave my contact information for them to call me when they can figure it out... usually one will
.. might be the sales person on a bonus bubble, so cast a net and you probably get what you want is reasonable.
I have had the intro song stuck in my head for about a week 😂
Sounds like the chorus of Gangnam Style!🤔
Ripping you on your trade-in is another pretty common way to make some quick money. They'll enter the wrong information on your trade (to their advantage) and show you a printout from KBB dealer trade-in book and hope you don't notice. Sometimes they could turn around and just take it to CarMax and make 20% on your trade with the kind of lowball offers a lot of dealers make.
A lot of time they are just sent to the auction to turn a tidy profit. If you're offered $1000-1500 on a car with less than 100k miles (barring extreme cases) they're trying to steal your trade to make money that way
1. Ripping off people
2. Ripping off people
3. Ripping off people
4. Ripping off people
5. Ripping off people
Rohan Malik you know car dealers job is to make money right? They have to make money some way
Makes the world go round...
They have people to pay and profit to make too, it's not malevolence.
@@liamaldous2624 dealers are mandated by law, people are pissed they can't purchase vehicles direct from manufacturer. Large dealer networks lobby politicians to keep it this way and it pisses people off because dealers only increase the cost of the vehicle. Dealers are a ripoff. Full stop.
@@ryanmanner2503 why do americans have so much issues with having to go to a dealer? because 1) most manufacturers have rules their official dealerships have to follow (as having a bad dealership is bad for them as well), and 2) you don't buy your coca cola straight from coca cola, do you? so why would you have to buy your car straight from the manufacturer? And the manufacturers have to have service stations etc anyway, or are you going to travel 5000km just to collect your new car? so why wouldn't you just buy your car at that same service station?
@@jarnedeprins3617 Having a bad dealer made be "bad" but when it's the only game in town you have no choice. And that's just one flaw in the dealership scheme. You think dealers are necessary when clearly the 70's & 80's showed us otherwise when people purchased non-US vehicles direct to get around nanny-BS. Online buying in general shows otherwise. In fact, being able to do the entire process online only to show up at the dealer to pick up your freshly delivered vehicle and sign a few documents shows them to not be necessary.
I recently walked away from a used Tacoma I was really interested in. I knew it was a one owner trade in and I figured they were trying to double their money on the asking price. When I asked for the best price (after my family buying 2 cars from them in the past) he came back with a discount off asking of only $300 lol . I got up to leave and then the sales manager stepped in and asked what it'd take for me to take it home and I said way better than what they just offered. So he came back this time after running my credit which should be very good enough to be around 3-4% at most. Yeah he knocked off $2000 from asking price BUT my interest was 7.25%. So he was trying to make it up on the back end. I walked. Still looking for a Tacoma
They probably sold it at asking cause people are dumb.
Negotiate price first and on it's own. Then how you'll pay.
Worked at a GM Chrysler store for 10 years. A 2018 Equinox LT MSRP $30,000 had $1,100 in markup if we charged full sticker, but there was no one who could do that. We were fortunate to have GM Employees who saved thousands more than the public and we would make more and they saved more. We never marked up the rate because it was too easy for people to fact check us on and once you erode that trust chances of selling the vehicle we slim. Some banks and credit unions would pay us a flat 2% of the amount financed and it didn't cost the customer anything. I never really sold a lot of warranties because we were leasing 75% of our new vehicles. A factory extended service contract msrp might be $1,500 which means the cost was $750, but we always marked it up 50% to $1,125. Paint seal cost was $275 by the time we applied it and we charged $499 but I know of other dealers who charged $899 for the same thing and sold twice as much because reasons.
Living in an urban area I can say my $1,000 wheel and tire package saved me about $2500. 5 tires and 2 wheels later well worth it.
Excellent job integrating your sponsor content into the story
My dad did that after 6 months he paid off whole balance.
This is very useful
When it comes to options, my first option is to not make any f'n payments!
Bolian is back!
Today Ed tells it how it is
Working at a large DMS in the F&I form programming department has enabled me to gain a ton of knowledge on how dealers operate when a deal happens. The markups on back adds and service/warranty contracts is insane at some of these dealers.
Oh?
@@FXIIBeaver oh what? Also, digging the Extremist profile pic 🤟
@@ChevySpeedAddict just curious about the insane markups. Thanks.
@@FXIIBeaver oh yeah. The worst I've seen so far is a service contract on a brand new Jeep that cost the dealer $900 and they were retailing it for $5k. I about lost it when I saw that. Idk how often they sell it (probably almost never) but still.
Outstanding information!
Dent & ding plus windshield & the other things you mentioned are all covered by insurance in New Zealand.
For Glass we have the full glass buy out option meaning all glass in the car is covered.
Were talking about USA here buddy obviously, take a walk
I use to be a BMW Service Manager and other than our finance manager our advisors made the most money for the dealership. I did act as an Advisor as well for certain customers, usually the "premium" or difficult customers.
Great information 👍🏻
Thank You very much, it is so informative.
I'm a scumbag dealer and I charge people for nitrogen in tires.
I laughed in a sales person's face viciously when they first tried that on me... I mean full ha, ha ,ha... He was not happy with me... tried to go into the pitch and I stopped him with a warning it would get embarrassing...
Awesome/ Very Informative
Ed shared most without going into great details.
Don't forget about how they can use profit spread money from the vehicle you're buying to show you more money for your trade-in.
Negotiate the deal on the new one first, THEN drop your trade on them. They are almost forced to show you ACV, or actual cost value. I've seen ACV on a trade be $5. YES, $5 dollars. It was MAYBE a thousand dollar car, but they were ripping into the sales profit by showing the buyer $1500 (taking $1495 from the profit of the new car), and the buyer thinking he's getting a sweet deal. In reality, he left close to $1000 on the table.
Very true, recently seen some super high trade in offers for near junk cars just cause the dealership NEEDED MORE INVENTORY.
Seen one guy walk in with a 2002 Ford Ranger Edge in SUPER poor condition and somehow got $2500 trade in eval
If enough people have bad enough experiences that people in general distrust your profession, the profession as a whole is doing something wrong. That doesn’t mean all dealers are bad, but the fact we have to discuss this means that dealers probably shouldn’t exist.
Great tips, it’s crazy how low the margins actually are sometimes. I see why dealers usually try and screw people on trade ins, that’s where big money can be made.
In Ed’s realm I’m sure the margins are wider, I’m selling Hondas with 5 others in a half hour drive, most new car deals we are giving away invoice less all incentives, often minus some hold back
Good video Ed!👍
It’s all good. Just buy the car you want and get the deal you’re looking for! Double the payment now and then and save thousands
Hi, I love this channel. The only problem I have is that every time Ed talks in a video I get lost becouse he talks so fast. Keep in mind English is not my first language.
I can listen to this guy for the whole day.
Thank you... great video! Forwarded to a friend who’s currently in the buying process.
“The sales department is usually the biggest client of the service department”... trust, the service department is the bane of my used car managers existence
Spot on.
A bit late but I like reading stories on r/askcarsales too. Helps out similarly to Ed
Thanks, my two most hated peoples were car salesmen and Human Resources. Now it’s Human Resources and car salesmen.
Last time I bought a new car I told the guy selling all the warranty stuff before he started that I was gonna say no to everything no matter what. He shook my hand and said ok I won’t bother have a nice day. My salesman was surprised whenI came out so fast lol.
To me, the only good thing about buying from a dealer is inventory. It's tough to buy only private party, as i do, will really keep you looking for the right car when the stealership has several on the lot.
As a closer, utilizing #4 has been invaluable as a last-ditch effort to hold some gross without losing the deal
My sister just became a dealer, she’s killing it. Making mad commission on fords and shit
@ 4:30 honestly if that was mine, I'd have the roof painted that gray and paint the other side to match and leave it with the blue front clip and gray on the back ⅔. Something about that color color combo I kinda like.
Awesome awesome video.