Never say never - I've financed a Ford and a Kia because each included a $2k rebate if financed through the manufacturers. I think many (most?) of those buyers just stick with those, but in each of my cases I refinanced through my credit union less than a month later and saved that $2k (and yes I checked first to make sure early payoff was permitted as part of the original financing).
When is this dishonest way of doing business going to ever stop? We don’t have to worry about getting ripped off when we go to the grocery store so why do we have to worry about it when we go to a car dealership. Manufactures please post your invoice price on the car and make it illegal to remove that. Dealers should be required to only be able to add a certain amount to the invoice price. Everything should be upfront otherwise they need to be going to jail for ripping people off
When you pay $3.859 for gas, but the sign says $3.85, you're getting ripped off. The grocery store places EVERYTHING on the shelves to trick you into buying things you really didn't plan on, rip off. Everyone is ripping us off
The only problem with that is discounts would then be just as illegal as price increases. Two years ago, you could negotiate 20% to 30% below MSRP on most vehicles. With the price controls you propose, people will be forced to pay higher prices.
@@iandeleon8132 - 2-plus years ago this was common. It is only recently that cars started selling for MSRP and over. Covid turned the world on its head. Things used to be much different.
@@billybeemus3929 No, I'm not just talking about the past couple of years. I'm speaking of the last 20 years I've bought cars for myself, 5 or 6 different cars. And not just me, friends and family as well. At most, MAYBE 10% off MSRP.
Never ever walk into a dealership if you are not prepared to walk out for any reason no matter how petty. The dealership is there for the sole purpose to fleece you for as much as they can.
One should never need a lawyer in a finance office. If you cant do basic math, or use a calculator, stay away from a finance office. If you don't know how much you are paying before stepping into the finance office, you already lost. The finance office is the place where you sign the final paperwork on the deal you already negotiated with the salesman. Its not the place where you let them dictate the price and terms and sell you extra crap
If you do make sure they can handle the dealer/your trade in and the finance section!🙄Don’t forget the warranty!!😮If there’s a recall you will need one because they will take FOREVER to fix it!! My P/U had an airbag recall that took a year!! Meanwhile this airbag could have exploded sending shrapnel into me!! Then you need a lawyer for medical injuries!!
We recently went into a dealership with a pre-approval letter with an interest rate and amount pre approved for and when we started to work on the deal suddenly they forgot about the pre-approval and tried giving us a way higher interest rate. Both my wife and I walked away from the deal. Funny thing is two hours later the sales manager calls and says we forgot to enter all the info from the pre-approval and suddenly they where willing to do the deal that worked for us. It's crazy how shady dealers can be just to try and make some more money.
Days after I signed the documents and drove away with the car, the dealer called to get me to sign more documents. I flat out told them "No. The deal is done.". Then hung up. They mailed a letter asking for the same thing. I ignored it. 10 years later, I still have the car.
I had a dealer let me walk. A week later he called and said he would sell me the car at the price I wanted. I told them that was the price for last Tuesday, if you want me back in the door you need to do way better.
I was a car salesman and it’s the managers that cause all the problems. I hated going back and forth between buyers and managers because I knew they were being shady. I was as honest as possible with buyers and never did the “my manager wants to talk to you before you leave” BS. You want a car you’re going to buy a car you don’t need to be talked into it.
I've always had good experiences with the salesman... it's as you said, the sales manager, and especially the finance manager who hits you up further after already being worked over. 🙄
Long story short... The last vehicle I bought I researched the value of it, looked at the "asking" price and then went to the dealership and looked the vehicle over. A salesman came out and we started to talk. I took the vehicle for a test drive and when I came back I told the salesman I did not want to haggle back and forth on the price. I gave him a price that was about $4,000 below asking price and told him to go to finance manager and tell him to give me his best price and I only wanted a one-time answer to the prices. The salesman came back out with a price that was 1/2 way between my price and the asking price. Meeting my price in the middle was exactly what I really was willing to pay and we made a deal and I bought the vehicle.
yes! One of the managers said something nasty about our salesman who was the only reason we were sticking around at that point and my nana said something very loudly to defend him. Poor dude... She called out the managers because he was the only reason we were staying.
That’s usually how it goes , we as sales people get all the shit when we’re really very respectable honest people just following orders from the higher ups we’re the lowest guy on the totem pole we have no say on pricing ? Trade? Additions or any of that but yet we’re looked at as scum of the earth
Back when I was 16, I got my first car from this one dealership in town. They sold us a car for 5,000 and then they had my parents go back and sign another contract for a lower price for 4,000. The dealer just said oh we got you a better deal save you 1,000 dollars. Fast forward a couple years later the owners and salesman all got indicted on fraud charges.
I bought a 3 year old travel trailer type RV last year. I found it online, researched the make and model first and then made contact with the dealership. I made an appointment to do the walk through. I mentioned that I had seen a similar private sell for a certain price and asked if they could get close to that. The salesman took the bait. He gave a number assuming he could make up the difference by jacking up the in-house financing interest rate and add ons like an extended warranty. I told him to write up the contract. I waited to tell them that I was paying cash until I had that contract in hand. They had to rewrite the contract omitting the financing and stick to the original price. I was silently elated, they were not. Not bad for a girl.
Read the contract. READ THE CONTRACT! I had a large dealer try and slip an extended warranty in on me in finance. I caught it and made her rewrite the contract. Meanwhile she was telling me I was a stupid businessman for not wanting the warranty. I responded the minute that the manufacturer became a non profit I would buy an extended warranty. I will not darken the door of that dealer or any dealership they own. I have literally bought over 40 new vehicles between business and personal, in the past 20 years, and that dealer was not one I even contacted.
😂 same … don’t be my sister. You don’t how livid I was when she told me she went to the Hyundai dealership alone and was about sign documents. 🤦🏽♂️ she didn’t even know what an APR was and they gave her a high one PLUS two warranties she didn’t need. Two. For a 2019 Veloster she has a $600+ payment. Idiot.
I had a finance guy try to withhold points because I wouldn’t buy the extended warranty. Little did he know that I already had pre-approval for a much lower interest rate from my insurance company with gap included. I signed the papers, drove off in the new vehicle to my insurance office, and had them cut a payoff check to the first lender. I’d have loved to have seen the look on the finance guy’s face when he got the chargeback for the immediate loan payoff.
@@germandelariva3754 Well, if I’d bought the warranty, he’d have given me 2.9% vs the 4.9% I got. I just paid the loan off early and financed with my insurance company. Where dealers make their $$$ is in the finance room selling warranties, gap insurance, service plans, and other high cost/low value items.
@@josephbarr511 do you mean you got gap with your insurance or you actually financed the car price with your insurance cause I have never heard of that.
That's actually illegal for a finance mgr to do. Reg Z or B, can't recall which one. They are never supposed to try and extort ppl by offering a better deal if someone buys products.
I have purchased 5 new Toyota's from the same salesman over 13 years. I recently tried dealing on a new Rav 4 with the same salesman. He offered me a low ball price in trade for our current Rav 4. I told him his offer was insulting. He came up $500 bucks and said it was the best he could do. I told him there are two other Toyota dealers within a 2 hour drive. He wouldn't budge. I told him he just lost a great repeat customer and I don't think he cared one bit. Supply and demand favors dealers in this current market. They have their entire new car inventory sold before the vehicles even arrive. But I believe that will change one day. His loss is someone else's gain.
Last week, I took my 20 year old granddaughter to our credit union for a pre-approval on a used car. She was approved for a $10000 loan at 2,7% interest. She had saved up $6000 and picked out a car for $14998 out the door and I thought it was an awesome deal. It pays to have an account at a local credit union and go to them first before you look for a used vehicle.
Just so u know, dealers beat credit unions every single time if we care to. It’s a good way to let us know u have one so u can get the beat rate but getting the loan through the dealer will always save u the most money at the end of the day. Cu scares people into not shopping the rate lol
@@hectorsanchez5818 so if I try to finance a car through the dealership and they offer me. 5% finance and a fcu offers me 2% how is that dealership beating the fcu?
@@djnohands3632 they can send it directly to thet credit union through a system called cudl, did they offer you 5% b fore u told them or after? Some credit unions have different tier levels so if your not a tier one customer dealer banks can’t beat credit unions. If your a 800 score they can match 1.9 if it’s available.
Just had a used car dealer ask me if I would be paying cash or financing a used car I was going on a test drive with. I told him nicely that I'd discuss finance if I was interested in the car. He just said "Oh, okay".
Don't forget to ask for a holdback as well. For US automakers pay dealers the "holdback" is 3% of MSRP. Mercedes pays 3%, Lexus is 2%, but Edmunds claims Lexus has no holdback. BMW, Japanese imports, etc., pay 2% quarterly to the dealership. You may negotiate to receive all of it, 50% or at least some of it. They'll act like they never heard of it. LOL! And purchase at the last day of the month because they might be short that month by a few more vehicles that they need to sell to get that end-of-month bonus from the manufacturer for reaching the contracted or agreed goal. It's an opportunity to get a great deal, they'd sell under list to get that end of month bonus.
Very important additional item. Walk out if finance manager covers up contract with another sheet of paper and demands you lean forward and sign without seeing the actual contract first. Happened twice to me over the years. The first time, they exchanged the contract for another and both times the interest rate was at least 2% higher than told approved by bank and was another bank on the covered contract. Don't be shy when you go in. Keep up the great work gentlemen, these are invaluable to us!
Yep. Two different dealerships. Negotiated terms both times and then they printed contract will the fill in the blank. Covered up finished contract with piece of paper first instance, second time they folded contract over on itself. Second time it happened I call state AG's office for attempted fraud. Would not do anything as I caught it before any harm.
@@jasonsprouse2803 Wow! What a sexiest remark. The 70's-80s are calling. "When can you bring your husband?" ect. Hello Mr Bundy, could you please come help me buy a car? CIAO!
Just today I was going to buy a car and the dealership first offered me $6000 less for a trade-in than anyplace else I could find online. Then when I offered to take the trade off the table and just buy the car outright (was going to pay cash and not finance), the dealership said I had to finance with them if I wasn't going to trade anything in. Since the manufacturer is offering 0% for well qualified buyers (and my credit score is somewhere between 840 and 850), I figured I would just finance it at the zero percent interest for a few months and then pay the loan off, but then the dealership said they weren't honoring the manufacturer financing and were doing their own financing. Said "no thanks" and passed on the offer.
@@fernandosan3964 Greenwood's Hubbard Chevrolet in Hubbard, OH. Was just looking to buy a Camaro for a fun, weekend toy, and since I don't need one (just want to get one), I can easily pass this up.
@@rwdplz1 I already called GM Customer Care and filed a complaint. I let them know that I was going to buy the car today, but thanks to this dealership experience I'm not sure if I even want a Camaro any more. I really don't think it will do any good, but I felt like I wanted to let the manufacturer know how their representatives are treating potential customers.
@@saviordream Bite back harder - put a false advertising complaint in with the state attorney general and your states dealer license agency -same thing happening at the other dealerships in your area because of competition amongst car dealerships to lure you to their lot and nobody filing complaints with the right agencies
I always write a check for a car. How do I proceed while negotiating. If I tell them directly, they will not be looking to gouge me in financing, and so they will probably high-ball me in the price negotiations. Can I just tell them that I want an Out-the-door price and that we will discuss financing later? Or....Should I simply negotiate whatever financing makes them happy and then pay it off with the bank immediately?
#1 issue for me (based on my sad experience) is the finance manager making a making a statement without putting it in writing. This was at a Toyota dealership in Mississippi. He told me and the wife "you will get a full refund of your car extended warranty if you never use it". Stupid us not getting it on the contract. Yes, he said this to both me and the wife who witnessed the statement. The dealership denied ever making the statement when we went to get the full refund. I only rate HR people worse than car finance managers.
Must be a Toyota dealer thing - same thing happened to me in Victoria, BC. My dislike, no rage, at car dealers keeps my running my old jalopy rather than repeating the experience.
@@erickflores01 forgive me if I'm misinformed, but doesn't the one/two party recording laws only apply to interpersonal conversations? I thought you had every right to record the event of signing a legally binding business contract?
I purchased a new Toyota Avalon years ago and during my negotiations (long story) the dealer threw in a extended warranty, two years later we sold the Avalon because my wife wanted a smaller car. After selling it I had read or heard a video that said if you sell you car prior to using the warranty you’ll get a full refund, so I called the dealer and they confirmed it and told me to come in two days later and they’d have the check, which the did.
I just had the exact situation of getting offered a lower interest rate if I opted for an extended warranty vs a much higher interest rate of I didn’t take it. It put me in a very uncomfortable position, especially since I flew in to buy the car. I ended up taking the warranty after some wheeling and dealing on the price, but it definitely left a bad taste in my mouth. I did read on my warranty paperwork that I have the ability to cancel it and receive a full refund within 60 days, so I’m trying to decide if I want to do that or not. It’s a ‘21 Honda Accord with 18,000 miles so part of me says it’s a Honda, I don’t need it, but then the other part says with all the electronic the car has it might be worth keeping. Either way, with a 800+ credit score, the last thing I thought I’d have to deal with in the finance department was a high interest rate, but he knew my situation of flying in to purchase the car so he took advantage. Lesson learned to hear the financing options BEFORE flying in next time.
Hopefully you canceled it. Cause you can always buy an extended warranty yourself and it'll be cheaper cause the dealer marks those up. Only benefit is you can add the one at the dealer into the financing.
Why did you not shop financing BEFORE going?? Sheesh that's makes NO SENSE! You said you flew somewhere specifically to buy a car and you were just arbitrarily going to leave the financing in the dealers hands??
@@UsernameUnkwn21 it was a very small loan (I put 80% cash down). I’d likely pay it off early too, so the higher interest rate really didn’t make that big of a difference, just to my pride.
I find it shocking that most people can't purchase a car with cash. Its the financing that buries most people and is where most people get snookered. Of course, I have found that dealers don't want to work with you if you can pay with cash. This is why I hate buying cars. Its a collosal waste of time.
The only thing they got me in '21 on was the interest rate on the loan and told me the reason it was higher than our pre-approval was because they were giving us the student rebate and we had to go with the higher interest rate and my wife's credit history "wasn't extensive enough". My wife is a GS-12 in the federal government, the qualifying graduation was for her graduate degree, and has fantastic credit. Jokes on them though. I paid off the vehicle almost immediately and they ate that.
I don't know your particular case, but If a new car dealership was offering a sub vented interest rate (lets say Toyota Financial offering 1.9% 60 months) Usually but not always Toyota Financial won't honor the 1.9% rate and the rebate combined.. These types of videos are dangerous and create FUD.. Do your research, do business with new car dealerships, and if their publicly traded even better.. These tactics in these videos are old school, a lot of finance offices have cameras in them to record the transaction.
@@iblocal2465 It was a Toyota dealership in the SE United States. If that were the case, they should have said that, but what you are saying is they lied to me. I believe the special financing rate was 0.9% at the time from Toyota. My loan was through SETF and not directly through Toyota. I didn't even ask for the special rate. All I know is that I was pre-approved with my wife for a full point (1%) lower on a loan and when I told them that, they came up with the reason I was told. The rate was even calculated with how much I knew I was going to finance. I am pretty sure they got a larger kick back from SETF for the rate I was given. In fact, I would bet money on it. I also don't believe that the tactics discussed on this channel are 'old school' and not used anymore. There are channels on YT for salesman that discuss how to maximize profits, etc.
GREAT ADVICE……around 11yrs ago I was about to sign paperwork and they told me the extended warranty was “mandatory” I slide the paperwork back to him and said “that’s not true, and btw I changed my mind, I don’t want the car anymore, I’m good” the finance guy got upset and said “really? You di need to buy the ext warranty You don’t want the car now? Wow, I didn’t saw that coming” I left the dealership in a heartbeat 🏃♀️
Learning your the term “buy rate” from you has earned you my subscription 💯 I love learning, as a woman going into the dealership alone can be intimidating but all this new knowledge has me feeling like super woman, thank you 😊
I had a finance manager at a Toyota dealership back in 2000 tell me that I should Finance the car rather than pay cash because I can put the money in the bank and earn interest on it.... 🥴 I looked over at my wife and said let's go and we walked out... after putting on our hokas
@Zonative I'm thinking about buying a car and this was my thinking to improve my credit, why is that a bad idea to let your money earn interest through investments? I have the cash but I was planning on doing this instead of paying all cash upfront. Is this not recommended?
That’s hilarious I don’t know about back in 2000 but nowadays most banks (at least the big commercial ones) just offer a 0.0010% interest rate for their savings account, might as well not even bother haha!
I bought a car yesterday. Everything in this video is true. Even the good dealerships will ask you these things but I believe the difference is that they will back off quicker than the bad ones. Unfortunately you are going to deal with this no matter what. It all depends on you and your responses. It’s their job to take as much money from you and it’s your job to save as much money from them. Remember they are not your friends. It’s nothing personal just business. Good luck.
About 6 months ago I was interested in test driving a 2022 Nissan Versa. After I put out information online I was instantly contacted by a dealer near me. After speaking with him he assured me he had 2 Versa SR's on the lot and I set up an appointment for the next day to come to the dealership. The next day I arrived there and was told by him the 2 Versa's were gone. One was sold and one was moved to be sold at a different location. BUT he said he can give me a great deal on a Sentra. After expressing my opinion of the bull***t that was taking place my wife and I strongly suggested the salesman kiss our asses, (yes both) and we proceeded to storm out of his establishment and refused to "give him a chance to explain." We both had smiles on our faces as we left while 3 salesmen with their mouths open watched us.
Buy Legalshield before you go into the dealership. When they present the contract to you, call a timeout. Tell them you want to have your attorney review it. And the attorneys will!
Just last week as I was about to leave a $500 (refundable) down payment and the dealer would locate the 23 RDX that I decided on. I had let him know early on during the test drive that I would not be interested in any vehicle that included an up-charge / market adjustment fee. They had several lines and I test drove several before zeroing in on the Acura. Spent 2 1/2 hrs there and the sales rep comes out of the finance office with the final figurers / paper work and before showing them to me stated that this vehicle has an adjustment fee but that they were not going to charge me 😂 I looked at the #'s to discover that they were allowing me $5K less for my trade than it was actually worth "as a trade." (I did my homework ahead of time). YES $5K so not even close. ha ha ha. I let him know that I considered it an insult and wished him a nice day. Can't help but wonder how many folks for this BS tactic. 🤬
Did that to a salesman years ago when he started out telling my husband and I about their destination fee and had to get the cars from somewhere and how costly that was on the dealership blah, blah, blah. We entertained ourselves listening to his lies and walked out after thanking him for his time blah, blah, blah. Could not help wondering what ridiculous lie he was going to tell next.
Last week I went to buy a second hand car and I knew how much I wanted to pay. The dealer wanted the window price but I was adamant, he told me he had 3 other people coming to see the car so I stood up. He then said he would waive the admin charges and I told him that I would never pay anyone admin charges for a used car, as that should be in the price. He asked me how much I was prepared to pay and I told him for the second time. He hummed and arred so I said, "Well if that's your answer." My terms were agreed and he asked for cash so I paid by debit card, and the car is outside my house now.
Ummm....so what part of admin charges did you fall for? It matters nothing about how they break it down ... if you paid $5.00 for a car they wanted $10 for, you did good, right! And then the dealer gives you a receipt saying you paid $4.50 for the car, and .50 cent in admin charges, do u give a shit? Of course not. Do u understand the game now?
@Chris R The way that you put it seemed to say that the charges are built into the price. The only thing in the UK that is built in is the tax, so you pay the price shown, unless you can negotiate. Industrial equipment may be shown without the tax, but it has to be clearly stated at the point of sale.
Auto dealerships are one of the shadiest businesses out there. How this has been allowed for so long is disgraceful. NO other industry is like it. At every point in the sales process, they do nothing more than scam, lie and cheat.
I feel very informed now that I have been watching all your videos. Question 🙋🏽♂️ being that car dealerships have little inventory and cars “in transit” with deposits on them already. How can I Negotiate a good deal when they have no shortage of buyers??? Any suggestions??
Let's just agree that 99.9% of dealerships are trying to screw the customer as much as they can! Due to this known fact, customers go into the process knowing that it will very likely be a stressful visit. Besides the customer getting frustrated and walking out, the automobile manufacturer is also being hurt by losing the sale because of the dealerships altering the msrp negatively affecting the number of vehicles ordered/built and sold. Just take this "power to manipulate pricing" away from the dealerships and let the manufacturers decide upon their bottom line/take it or leave it sale price for each vehicle! No discussion/bickering/arguing. Let the dealerships store/show/finalize sales, provide parts and services only. MHO
Here is a better idea How about you never set foot in the F&I office in the first place? Or we could take it a step further and never set foot into a stealership at all?
I bought a year old truck 10 years ago and the finance guy wanted me to sign up for extended warranty. I said why isn’t this truck solid? He commenced to draw a bid x on the document and said I would be sorry as that truck has 90 computers in it. This was 12 years ago and I’ve had no problems with this unit at 125k miles.
Another thing to watch out for in general: SOME car dealers will hold a "scratchoff ticket" contest, but they require you to fill out a form before they will tell you if you won - DON'T FILL OUT THAT FORM! At the least they they are collecting information to sell to other businesses, at worst it could lead to identity theft!
I had a finance guy give me a lower interest rate because I bought the extended warranty, but I knew I could cancel it. I did so a week later and kept the lower interest rate on the loan.
If they fleece you bad enough the first time, they don’t need you as a repeat customer. I actually heard a horse trainer brag about this. His family had to “pass the plate” to pay for his burial expense.
When I got out the Army in 1970 I had saved up $2,200. The car I wanted was $3,200. I couldn’t imagine borrowing $1,000 to buy a car. Solution - I imported directly from Germany a Volkswagen Beetle. By importing the car directly I saved $100 v the dealer, not an insignificant sum in 1970. I paid $1,700 for the car. I drove that Beetle 170,000 miles! I have only purchased new cars and I have always paid CASH. Imagine how much money I have saved by never paying interest on car loans. Happy trails 🤠.
Every time I be bought a new car, I’ve come away feeling like I got taken - sometimes blatantly. I wish there were advocates you could hire to advise and walk you through the process. It would be worth it to come away feeling good about the purchase!
Local dealer this afternoon. Advertise truck for 68,010 msrp on website. Ok I go look. Nice truck. Value my trade at 40,000. Ok np I owe 45,000. 5,000 negative equity I say I’ll pay it off by putting up 5,000. Then they say the truck monthly payment for 84 months is 1260. I said how so much. He said the truck is 78,000 plus your 5,000 brings it to 73,000. I said internet price is 68,000. Then I learn they have a 5k mark up they don’t disclose. Back and forth he says I can get you to 950 a month with 8K down at 60 month balloon payment. Where I’d owe 30,600 at the end of the 60 month term balloon payment. I walked off as it got to complicated with there numbers when I told them I’d be ok at 950 a month and my local credit union would give me there rate. Then they hit me with the. Oh well we only do commercial financing cause it’s a commercial truck. Your own financial institutions rate isn’t good cause we can’t give you the advertised price from the internet (68,000) plus the hidden 5K from dealer mark up they tried hiding
Be prepared to walk out and don't go back. I had that happen many times, with one dealer actually follow my car as I was driving away. His manager must have fired him I bet. Tell them you decline all the dealer fees and scam crap. I had one dealer ring up $1700 in ""fees" (dest fee. admin fee, dealer fee, origination fee, crap fee., etc. ) I decide to walk away after they said they could not eliminate any fees. I say bye bye. They lost a $35000 deal. It was for an Acura TLX.
I've walked out before . 1. The sales guy tacked on 2500 in charges. When I asked about getting rid of them he told me the charges were the law. When I called him out to show me the law he beat around the bush I walked out. 2nd. In finance office I told him finance the car and I will pay cash for the extended warranty on a use vehicle. He said it had to be financed with the bank by law. When I said fine was gonna leave cause I knew he was full of it. The dealer manager walked in told him just to do it. So then the finance guy still tried to argue with me. I called him a Lying peirce of crap. More choice words if you know what I mean while I was walking out of his office.
7:40 This can happen at the bank as well. Wife and I went through a Mortgage contract with the bank rep at Royal, thought it didn't flow well from one page to another. The rep just laughed and said it was typical legalize. We signed. Never did get our copy. Two years later, we sell the house, end the mortgage and find out the reason the contract didn't flow was because he left out a page about a "craw-back" we'd have to pay if we ended early. We lost all the benefits of changing the mortgage to them with the crawl-back. Will never deal with a bank again for a mortgage, we've saved up and will pay cash.
If you buy a vehicle from this point on here's your sign wait save your money and wait until all the dealerships start closing down it's coming real soon 😊
Young people should be required to take personal finance courses in high school, so they don't wander out into the big bad world totally clueless. And when it comes to purchasing all the add-ons a typical car dealership pushes, they should learn to research all the various items commonly offered prior to walking into a dealership to determine what, if any, add-ons they really want. Also get financing quotes from at least two or three sources before sitting down with the dealership F&I person. Dealerships manipulate the rate to the buyer, adding to the actual rate they have approved from the lender. You don't need to pay them extra, get the loan directly from the lender. The best approach is to do some homework up front, then walk into the dealership knowing how much you are willing to pay for the vehicle, and what add-ons you are willing to purchase from the dealership, if any. Then refuse to get into a negotiating game with the dealership personnel. JUST SAY NO, and be willing to stand up and walk out the door. There are lots of other places selling vehicles, and you don't have to deal with people you don't trust.
Um, the purposely don't teach them in high school because if they did the economy would collapse because no one would ever talk the dealers losy offers. Without those losy offers dealers would become insolvent and go out of business. Dealers exist only by double dealing the customer.
FM told me the only way i can get approved for a loan is to buy the extended warrenty. So i did for $2,500. He was laughing and rubbing his hands together when i left his office.
Question on the "lower your interest rate if you purchase "this" product" - if you were thinking to buy the product already but on the fence and Finance Manager says this, why is it a red flag? What would be a good response to this scenario? Can you respond, "Since you can get me that interest rate if I buy this product, isn't it correct that you can give me that same interest rate if I don't buy this product?"
Thanks for your help guys. I watched many of your posts and negotiated a deal a couple of hours ago. Your info was invaluable. I am curious about the MSRP vs. Invoice price. My old school days, we use to negotiate up from the Invoice price. These dealers want MSRP and above with their add-ons. Won’t go below MSRP.
I remember in 1990 I Managed a Dodge Dealership. We had the little D50 Pickup trucks. The Difference from MSRP to Invoice was $67.00. I never stocked another D50.
So many of these problems can be avoided if you just pay cash for the car. If you do not have the cash, then you cannot afford the car. Borrowing money for a car is the worst financial decision you can make.
@@jenhofmann do you know what credit score means? How much money you can borrow that you need to pay interest on. Interest is one of the worst things in this world.
You missed the most important one, check their payment calculation as I've seen them fudge numbers to increase the payment over what the interest rate actually calls for. When I called them on it I got the "oh I must have fat fingered a number" the payment on a less than $200 mo payment was $30 higher the amount and rate required. Use your own calculator and verify!
Change the laws requiring cars to be sold through dealers and run these crooks out of business forever. Vehicles should be sold directly from the manufacturer.
I don't agree to purchase any "extras" in the finance office. I've already made my deal as to what I want with the salesperson. When I walk into the finance office, what I've already agreed to with the salesperson is all I'm going to agree to with the finance crook, I mean, manager.
There are 100% banks and credit unions that require gap insurance. In states like New York, it’s illegal to make money on gap insurance, and they cap what you can charge for it. Only one I really disagree with here. Gotta say, you’re one of the more honest dealer-bashers out there.
The one thing any car buyer can be certain at every car dealer is the single most dangerous person they will encounter is always that smarmy F&I manager.
Just a quick question. When I bought my car at the dealership they ran my credit report with a bunch of banks lenders. They basically chose the lender for me. Do I have the right to ask them what the interest rate offered by each lender? Or should I just take their word that they are choosing the lowest interest rate for me. Which I did. Oh by the way I refused everything the finance manager tried to offer me and she started to get angry. I knew at that point I did the right thing. The only thing I was not sure of is the interest rate? Mine was 2.39% by the way. So I’m not stressing considering how it is now. I bought a 2020 Chevy Blazer Premier on Nov 2020 with 750+ FICO score.
You guys are so true and right about people not receiving copies or requesting copies of anything they sign and I like what she said specifically about one copy for the finance manager one copy for you if it doesn't go that way then get up and leave I don't know a lot thank you guys it's hard ball out there but that's the real world
you are SO right, the market is so tight right now that it is beyond jaw dropping what I’m encountering as I’ve been visiting dealerships. Thanks for these videos
depends, if you have great credit sometimes you can get even a better rate with the dealership. My buddy just got a 2022 Ram with 0% interest rate lol.
@@biggianthead17 I mean if the car is being sold at MSRP I don't see the problem. If they will only give you 0% and require you overpay a couple thousand them yeah screw that. That was not the case here though. He somehow got it under MSRP with 0%.
@@box3071 I mean he specifically asked for a extended warranty so your right haha. But you can't convince this dude not to buy one after one of his past cars was always in shop lol. I saw his entire bill of sale. Shit was a crazy good deal they must know the salesman like personally because it doesn't make sense to me
Just don't buy extra products from dealerships. They're never going to be in your favor. Buy the car, nothing else. Everything else is pure profit for the dealership at your expense.
I fell into this trap and I only can blame myself,the finance guy said we put this info on a memory stick so it’s faster,this is a big no,so this means you get to see everything when you get home and print it out.I’m so mad at myself for doing this.I will never forget and I will never go back to Beaver Toyota in St Augustine fl
@@larryaugust8205 Ehh buying it doesn't hurt especially if you got a 10 year. The only reason why Toyota is perceived as more reliable is their owners take care of them. The service department stays busy though, they are the main money maker for the dealership. The Toyota store I worked at did over a million per month if that tells you anything. A large portion was covered under service contracts. Manufacturer warranty only covers defects anyway
OK, so I'm lost two minutes in. "Front end product." "Back end product." Hey, we're not finance wizards. Can you explain in layman's terms, please? Bad start, I'm out.
Made appointment to test Ford Focus, any colour but white or black. Taken to white car, no keys, covered in snow, helped salesman clean off. Later in office finance manager was annoyed I would not say yes, came close to me and said - you will be back to buy that car in a nasty voice, I never did but went to next town 15 km away and purchased green Focus, financed myself with my work credit union, paid less and I had for 14 years with very few issues.
Good reminder: The car dealership should not be your only source of information. Investigate the local economic situation yourself by talking to a local banker first. Do some internet research on interest rates at local credit unions before you talk with the dealer in person.
For anyone wondering what the buy rate is, I have watched enough videos of theirs to answer my own question LOL. Buy rate is the interest rate that you are originally approved for, the “behind the scenes “rate that the car dealer can inflate to hide what you were actually approved for before they can profit off of it.
I imagine these extra “products” you are referring to are extended warranties…. You should really have addressed that so folks understand what these products are exactly - otherwise very good job. Thanks.
Dealerships have to rip you off. They need to keep the doors open and the lights on. Think about that huge payment every month for the next sixty months or more. Will you be able to keep your lights on and have a door to open? Think about it, before you sign your life away.
At this point everyone must be as knowledgeable as a dealership to beat the dealership A salesman told me "tell the salesman you're only going to deal with his manager, and tell the manager you will pay ONLY 3% over DEALER INVOICE"
Good stuff, but you need to define terms in every video because we are not watching them all. For example, I had to google "buy rate." I think you should have defined it in context.
I use to work for Ford Credit. NEVER get financing from a dealer. ALWAYS walk into a dealer with your financing approved from your bank.
Never say never - I've financed a Ford and a Kia because each included a $2k rebate if financed through the manufacturers. I think many (most?) of those buyers just stick with those, but in each of my cases I refinanced through my credit union less than a month later and saved that $2k (and yes I checked first to make sure early payoff was permitted as part of the original financing).
@@jeffh2777 So you're comparing it to a bad bank deal. Not the same issue.
When is this dishonest way of doing business going to ever stop? We don’t have to worry about getting ripped off when we go to the grocery store so why do we have to worry about it when we go to a car dealership. Manufactures please post your invoice price on the car and make it illegal to remove that. Dealers should be required to only be able to add a certain amount to the invoice price. Everything should be upfront otherwise they need to be going to jail for ripping people off
When you pay $3.859 for gas, but the sign says $3.85, you're getting ripped off.
The grocery store places EVERYTHING on the shelves to trick you into buying things you really didn't plan on, rip off.
Everyone is ripping us off
The only problem with that is discounts would then be just as illegal as price increases. Two years ago, you could negotiate 20% to 30% below MSRP on most vehicles. With the price controls you propose, people will be forced to pay higher prices.
@@billybeemus3929 wait, wait, wait…. So You’re saying on a $40,000 car, people are negotiating $8,000-$12,000 off??? Come on man, no way
@@iandeleon8132 - 2-plus years ago this was common. It is only recently that cars started selling for MSRP and over. Covid turned the world on its head. Things used to be much different.
@@billybeemus3929 No, I'm not just talking about the past couple of years. I'm speaking of the last 20 years I've bought cars for myself, 5 or 6 different cars. And not just me, friends and family as well. At most, MAYBE 10% off MSRP.
Never ever walk into a dealership if you are not prepared to walk out for any reason no matter how petty. The dealership is there for the sole purpose to fleece you for as much as they can.
1000%
H-Ho-How is this auto purchase process a thing? How is it allowed? What other purchase of a product has the same scam as auto dealership?
It would be nice to have a lawyer with us when going in the finance office!
One should never need a lawyer in a finance office. If you cant do basic math, or use a calculator, stay away from a finance office. If you don't know how much you are paying before stepping into the finance office, you already lost. The finance office is the place where you sign the final paperwork on the deal you already negotiated with the salesman. Its not the place where you let them dictate the price and terms and sell you extra crap
If you do make sure they can handle the dealer/your trade in and the finance section!🙄Don’t forget the warranty!!😮If there’s a recall you will need one because they will take
FOREVER to fix it!! My P/U had an airbag recall that took a year!!
Meanwhile this airbag could have exploded sending shrapnel into me!!
Then you need a lawyer for medical injuries!!
Rule of thumb she. Dealing with the finance office-don’t trust anything they tell you.
Why go into the finance office. If you need to borrow, get it from your bank
@@joedennehy386 because they are the ones who do the final paperwork whether you use their financing, pay cash, or outside financing
We recently went into a dealership with a pre-approval letter with an interest rate and amount pre approved for and when we started to work on the deal suddenly they forgot about the pre-approval and tried giving us a way higher interest rate. Both my wife and I walked away from the deal. Funny thing is two hours later the sales manager calls and says we forgot to enter all the info from the pre-approval and suddenly they where willing to do the deal that worked for us. It's crazy how shady dealers can be just to try and make some more money.
Days after I signed the documents and drove away with the car, the dealer called to get me to sign more documents. I flat out told them "No. The deal is done.". Then hung up.
They mailed a letter asking for the same thing. I ignored it.
10 years later, I still have the car.
I had a dealer let me walk. A week later he called and said he would sell me the car at the price I wanted. I told them that was the price for last Tuesday, if you want me back in the door you need to do way better.
@@rallyrobx7604yikes!
This happened to me also, I just walked out with them running saying it was a mistake.
I have another red flag. If you request a CarFax report and the dealership wants you to sign paperwork while you are waiting for the CarFax.
Spend the $20 buy your own. No wait straight to your phone and don’t have to worry about them changing a number in the vin to a similar car 💁🏻♂️
@@AW-kr1of I think the dealers pay a certain monthly price and they get unlimited CARFAX reports.
@@misplacedcajun2325 your point is? They'll still charge you for it.
States Attorneys need to step up and stop this bull crap that dealerships try to pull. It’s all crooked.
Agree
I was a car salesman and it’s the managers that cause all the problems. I hated going back and forth between buyers and managers because I knew they were being shady. I was as honest as possible with buyers and never did the “my manager wants to talk to you before you leave” BS. You want a car you’re going to buy a car you don’t need to be talked into it.
That's the impression I always got while buying a car. The salesman was often uncomfortably stuck in the middle.
I've always had good experiences with the salesman... it's as you said, the sales manager, and especially the finance manager who hits you up further after already being worked over. 🙄
Long story short... The last vehicle I bought I researched the value of it, looked at the "asking" price and then went to the dealership and looked the vehicle over. A salesman came out and we started to talk. I took the vehicle for a test drive and when I came back I told the salesman I did not want to haggle back and forth on the price. I gave him a price that was about $4,000 below asking price and told him to go to finance manager and tell him to give me his best price and I only wanted a one-time answer to the prices. The salesman came back out with a price that was 1/2 way between my price and the asking price. Meeting my price in the middle was exactly what I really was willing to pay and we made a deal and I bought the vehicle.
yes! One of the managers said something nasty about our salesman who was the only reason we were sticking around at that point and my nana said something very loudly to defend him. Poor dude... She called out the managers because he was the only reason we were staying.
That’s usually how it goes , we as sales people get all the shit when we’re really very respectable honest people just following orders from the higher ups we’re the lowest guy on the totem pole we have no say on pricing ? Trade? Additions or any of that but yet we’re looked at as scum of the earth
It’s a shame that you practically need a lawyer and mechanic to go with you to buy a car.
EXACTLY!
I'm currently looking for a newer car to purchase, & OF COURSE I take my mechanic friend with me! 😅☺️
😅@@cherrylicious2
It is so sad that dealership’s are ripping off customers of their hard earn dollars
Back when I was 16, I got my first car from this one dealership in town. They sold us a car for 5,000 and then they had my parents go back and sign another contract for a lower price for 4,000. The dealer just said oh we got you a better deal save you 1,000 dollars. Fast forward a couple years later the owners and salesman all got indicted on fraud charges.
Would this happen to have been in Oklahoma? Out of curiosity 😂
I bought a 3 year old travel trailer type RV last year. I found it online, researched the make and model first and then made contact with the dealership.
I made an appointment to do the walk through. I mentioned that I had seen a similar private sell for a certain price and asked if they could get close to that. The salesman took the bait. He gave a number assuming he could make up the difference by jacking up the in-house financing interest rate and add ons like an extended warranty.
I told him to write up the contract.
I waited to tell them that I was paying cash until I had that contract in hand. They had to rewrite the contract omitting the financing and stick to the original price.
I was silently elated, they were not.
Not bad for a girl.
Not bad, indeed. Proud of you.😊
This is basic car purchasing know-how that anyone could apply with an internet search. Your genitals are irrelevant.
@@4gma59 How did you contribute ?
@@BenState Why would I tell you how I contributed? 😁GFY
@@4gma59 because you're proud. either that or you dont understand the word
Read the contract. READ THE CONTRACT! I had a large dealer try and slip an extended warranty in on me in finance. I caught it and made her rewrite the contract. Meanwhile she was telling me I was a stupid businessman for not wanting the warranty. I responded the minute that the manufacturer became a non profit I would buy an extended warranty. I will not darken the door of that dealer or any dealership they own. I have literally bought over 40 new vehicles between business and personal, in the past 20 years, and that dealer was not one I even contacted.
Do we have to take a lawyer with us to go and buy a car, to avoid to be deceived?
Don't just wander into the dealership and say "OK yes I'll sign whatever it takes to get a car right now this afternoon".
Don't be my sister
😂 same … don’t be my sister. You don’t how livid I was when she told me she went to the Hyundai dealership alone and was about sign documents. 🤦🏽♂️ she didn’t even know what an APR was and they gave her a high one PLUS two warranties she didn’t need. Two. For a 2019 Veloster she has a $600+ payment. Idiot.
Was pops dishonest in his working years
You have convinced me to never buy a car through a Dealership, thanks
I had a finance guy try to withhold points because I wouldn’t buy the extended warranty. Little did he know that I already had pre-approval for a much lower interest rate from my insurance company with gap included. I signed the papers, drove off in the new vehicle to my insurance office, and had them cut a payoff check to the first lender. I’d have loved to have seen the look on the finance guy’s face when he got the chargeback for the immediate loan payoff.
Wait what are you talking about ?
@@germandelariva3754 Well, if I’d bought the warranty, he’d have given me 2.9% vs the 4.9% I got. I just paid the loan off early and financed with my insurance company. Where dealers make their $$$ is in the finance room selling warranties, gap insurance, service plans, and other high cost/low value items.
@@josephbarr511 do you mean you got gap with your insurance or you actually financed the car price with your insurance cause I have never heard of that.
@@germandelariva3754 I got gap insurance by financing through my insurance company.
That's actually illegal for a finance mgr to do. Reg Z or B, can't recall which one. They are never supposed to try and extort ppl by offering a better deal if someone buys products.
I have purchased 5 new Toyota's from the same salesman over 13 years. I recently tried dealing on a new Rav 4 with the same salesman. He offered me a low ball price in trade for our current Rav 4. I told him his offer was insulting. He came up $500 bucks and said it was the best he could do. I told him there are two other Toyota dealers within a 2 hour drive. He wouldn't budge. I told him he just lost a great repeat customer and I don't think he cared one bit. Supply and demand favors dealers in this current market. They have their entire new car inventory sold before the vehicles even arrive. But I believe that will change one day. His loss is someone else's gain.
It's starting to change.
People don’t really even know what customer service is anymore. So sad it will come back to bite them.
A: You bought 5 new toyotas
B: Bought a RAV 4.
Uninstall
More to be lost by dealer in service than in sales, hope you could say a complete goodbye! His loss!!
It has changed. They took advantage of people for a while there. It’s all over for them now.
Last week, I took my 20 year old granddaughter to our credit union for a pre-approval on a used car. She was approved for a $10000 loan at 2,7% interest. She had saved up $6000 and picked out a car for $14998 out the door and I thought it was an awesome deal. It pays to have an account at a local credit union and go to them first before you look for a used vehicle.
Just so u know, dealers beat credit unions every single time if we care to. It’s a good way to let us know u have one so u can get the beat rate but getting the loan through the dealer will always save u the most money at the end of the day. Cu scares people into not shopping the rate lol
@@hectorsanchez5818
I wouldn't say it scares them as much as them just not wanting to haggle with the finance manager at a dealer for a better rate.
@@hectorsanchez5818 so if I try to finance a car through the dealership and they offer me. 5% finance and a fcu offers me 2% how is that dealership beating the fcu?
@@djnohands3632 they can send it directly to thet credit union through a system called cudl, did they offer you 5% b fore u told them or after? Some credit unions have different tier levels so if your not a tier one customer dealer banks can’t beat credit unions. If your a 800 score they can match 1.9 if it’s available.
Does this also help with a new car?
Just had a used car dealer ask me if I would be paying cash or financing a used car I was going on a test drive with. I told him nicely that I'd discuss finance if I was interested in the car. He just said "Oh, okay".
Good answer. I immediately assume a dealer is a slime ball if they ask me that question right as I walk into the lot
Don't forget to ask for a holdback as well.
For US automakers pay dealers the "holdback" is 3% of MSRP. Mercedes pays 3%, Lexus is 2%, but Edmunds claims Lexus has no holdback. BMW, Japanese imports, etc., pay 2% quarterly to the dealership.
You may negotiate to receive all of it, 50% or at least some of it.
They'll act like they never heard of it. LOL!
And purchase at the last day of the month because they might be short that month by a few more vehicles that they need to sell to get that end-of-month bonus from the manufacturer for reaching the contracted or agreed goal.
It's an opportunity to get a great deal, they'd sell under list to get that end of month bonus.
Sure, asl for holdback. Just like you work for nothing, right. That's a low blow, just as slimy as a used car dealer.
@@jmackinjersey1
No, your wrong.
Very important additional item. Walk out if finance manager covers up contract with another sheet of paper and demands you lean forward and sign without seeing the actual contract first. Happened twice to me over the years. The first time, they exchanged the contract for another and both times the interest rate was at least 2% higher than told approved by bank and was another bank on the covered contract. Don't be shy when you go in. Keep up the great work gentlemen, these are invaluable to us!
Twice?
Yep. Two different dealerships. Negotiated terms both times and then they printed contract will the fill in the blank. Covered up finished contract with piece of paper first instance, second time they folded contract over on itself. Second time it happened I call state AG's office for attempted fraud. Would not do anything as I caught it before any harm.
@@Sal834 Still it seems to be a constant action. Conspiracy to commit fraud.
I will add, never go to buy a car from a dealer alone. I regret doing so. If you are a female, find a guy, any guy, to go with you.
@@jasonsprouse2803 Wow! What a sexiest remark. The 70's-80s are calling. "When can you bring your husband?" ect. Hello Mr Bundy, could you please come help me buy a car? CIAO!
Say no to coatings and any snake oil products typically sold in the finance department.
Just today I was going to buy a car and the dealership first offered me $6000 less for a trade-in than anyplace else I could find online. Then when I offered to take the trade off the table and just buy the car outright (was going to pay cash and not finance), the dealership said I had to finance with them if I wasn't going to trade anything in. Since the manufacturer is offering 0% for well qualified buyers (and my credit score is somewhere between 840 and 850), I figured I would just finance it at the zero percent interest for a few months and then pay the loan off, but then the dealership said they weren't honoring the manufacturer financing and were doing their own financing.
Said "no thanks" and passed on the offer.
What dealership was this?
@@fernandosan3964 Greenwood's Hubbard Chevrolet in Hubbard, OH. Was just looking to buy a Camaro for a fun, weekend toy, and since I don't need one (just want to get one), I can easily pass this up.
GM financing would LOVE to know they screwed them out of that money.
@@rwdplz1 I already called GM Customer Care and filed a complaint. I let them know that I was going to buy the car today, but thanks to this dealership experience I'm not sure if I even want a Camaro any more. I really don't think it will do any good, but I felt like I wanted to let the manufacturer know how their representatives are treating potential customers.
@@saviordream Bite back harder - put a false advertising complaint in with the state attorney general and your states dealer license agency -same thing happening at the other dealerships in your area because of competition amongst car dealerships to lure you to their lot and nobody filing complaints with the right agencies
Always get pre-approval and a not-to-exceed check from your preferred lender. Never use manufacturer or dealer financing.
I always write a check for a car. How do I proceed while negotiating. If I tell them directly, they will not be looking to gouge me in financing, and so they will probably high-ball me in the price negotiations. Can I just tell them that I want an Out-the-door price and that we will discuss financing later?
Or....Should I simply negotiate whatever financing makes them happy and then pay it off with the bank immediately?
Better yet, just don’t ever finance anything.
Fr
The finance manager has his job because he's the most successful crook in the dealership. He's outdone the sales mangers. 😬😬😬
#1 issue for me (based on my sad experience) is the finance manager making a making a statement without putting it in writing. This was at a Toyota dealership in Mississippi. He told me and the wife "you will get a full refund of your car extended warranty if you never use it". Stupid us not getting it on the contract. Yes, he said this to both me and the wife who witnessed the statement. The dealership denied ever making the statement when we went to get the full refund. I only rate HR people worse than car finance managers.
Must be a Toyota dealer thing - same thing happened to me in Victoria, BC. My dislike, no rage, at car dealers keeps my running my old jalopy rather than repeating the experience.
This happened to me too. I now record the conversation. Texas is a one party state so it’s fully legal. 👍
@@erickflores01 forgive me if I'm misinformed, but doesn't the one/two party recording laws only apply to interpersonal conversations? I thought you had every right to record the event of signing a legally binding business contract?
I purchased a new Toyota Avalon years ago and during my negotiations (long story) the dealer threw in a extended warranty, two years later we sold the Avalon because my wife wanted a smaller car. After selling it I had read or heard a video that said if you sell you car prior to using the warranty you’ll get a full refund, so I called the dealer and they confirmed it and told me to come in two days later and they’d have the check, which the did.
@@powdertrax9742 Wow. Wish I had bought my Highlander at your dealership.
I just had the exact situation of getting offered a lower interest rate if I opted for an extended warranty vs a much higher interest rate of I didn’t take it. It put me in a very uncomfortable position, especially since I flew in to buy the car. I ended up taking the warranty after some wheeling and dealing on the price, but it definitely left a bad taste in my mouth. I did read on my warranty paperwork that I have the ability to cancel it and receive a full refund within 60 days, so I’m trying to decide if I want to do that or not. It’s a ‘21 Honda Accord with 18,000 miles so part of me says it’s a Honda, I don’t need it, but then the other part says with all the electronic the car has it might be worth keeping. Either way, with a 800+ credit score, the last thing I thought I’d have to deal with in the finance department was a high interest rate, but he knew my situation of flying in to purchase the car so he took advantage. Lesson learned to hear the financing options BEFORE flying in next time.
Yes you can and should.
Hopefully you canceled it. Cause you can always buy an extended warranty yourself and it'll be cheaper cause the dealer marks those up. Only benefit is you can add the one at the dealer into the financing.
Why did you not shop financing BEFORE going?? Sheesh that's makes NO SENSE! You said you flew somewhere specifically to buy a car and you were just arbitrarily going to leave the financing in the dealers hands??
@@UsernameUnkwn21 it was a very small loan (I put 80% cash down). I’d likely pay it off early too, so the higher interest rate really didn’t make that big of a difference, just to my pride.
Is Carvana any good?
All this is easy. Don't buy a car until you saved enough to pay cash and never buy an products and you are golden.
I find it shocking that most people can't purchase a car with cash. Its the financing that buries most people and is where most people get snookered. Of course, I have found that dealers don't want to work with you if you can pay with cash. This is why I hate buying cars. Its a collosal waste of time.
When is the last time you had $10000 in your pocket??
The only thing they got me in '21 on was the interest rate on the loan and told me the reason it was higher than our pre-approval was because they were giving us the student rebate and we had to go with the higher interest rate and my wife's credit history "wasn't extensive enough". My wife is a GS-12 in the federal government, the qualifying graduation was for her graduate degree, and has fantastic credit. Jokes on them though. I paid off the vehicle almost immediately and they ate that.
I don't know your particular case, but If a new car dealership was offering a sub vented interest rate (lets say Toyota Financial offering 1.9% 60 months) Usually but not always Toyota Financial won't honor the 1.9% rate and the rebate combined.. These types of videos are dangerous and create FUD.. Do your research, do business with new car dealerships, and if their publicly traded even better.. These tactics in these videos are old school, a lot of finance offices have cameras in them to record the transaction.
@@iblocal2465 It was a Toyota dealership in the SE United States. If that were the case, they should have said that, but what you are saying is they lied to me. I believe the special financing rate was 0.9% at the time from Toyota. My loan was through SETF and not directly through Toyota. I didn't even ask for the special rate. All I know is that I was pre-approved with my wife for a full point (1%) lower on a loan and when I told them that, they came up with the reason I was told. The rate was even calculated with how much I knew I was going to finance. I am pretty sure they got a larger kick back from SETF for the rate I was given. In fact, I would bet money on it.
I also don't believe that the tactics discussed on this channel are 'old school' and not used anymore. There are channels on YT for salesman that discuss how to maximize profits, etc.
They didnt eat anything you fool , they got paid for the vehicle . You get the Rebate or the Subvented rate not both .
@@sarahann530 You could have left the name calling out, still make your point, and not look like a fool.
@@roguerebel2023 Calling a fool a fool is not name calling . It's a descriptive term you fool !
Your credit determines your rate. If you have ok or bad credit, the dealership will take control because you have little to no buying power.
You stay in control of the deal… not the dealer, those shoes you wore that day will also allow you walk out.
Unfortunately you practically need a Consumer Advocate when buying something as simple as a car.
GREAT ADVICE……around 11yrs ago I was about to sign paperwork and they told me the extended warranty was “mandatory” I slide the paperwork back to him and said “that’s not true, and btw I changed my mind, I don’t want the car anymore, I’m good” the finance guy got upset and said “really? You di need to buy the ext warranty You don’t want the car now? Wow, I didn’t saw that coming” I left the dealership in a heartbeat 🏃♀️
Learning your the term “buy rate” from you has earned you my subscription 💯 I love learning, as a woman going into the dealership alone can be intimidating but all this new knowledge has me feeling like super woman, thank you 😊
These vids are all good, but I especially enjoy the insider info that Ms Kimberly brings to the party
🙏 Thank you much!
…”Fitness = “Fittin’ these pizza in my mouth
NEVER finance a car at a dealership!
I had a finance manager at a Toyota dealership back in 2000 tell me that I should Finance the car rather than pay cash because I can put the money in the bank and earn interest on it.... 🥴
I looked over at my wife and said let's go and we walked out... after putting on our hokas
lmaooooooooo
@Zonative I'm thinking about buying a car and this was my thinking to improve my credit, why is that a bad idea to let your money earn interest through investments? I have the cash but I was planning on doing this instead of paying all cash upfront. Is this not recommended?
Good question @Master Chief
That’s hilarious I don’t know about back in 2000 but nowadays most banks (at least the big commercial ones) just offer a 0.0010% interest rate for their savings account, might as well not even bother haha!
@@BoldBrandFlakes
So true. I worked in banking in the early 90s. These rates are a slap in the face.
I bought a car yesterday. Everything in this video is true. Even the good dealerships will ask you these things but I believe the difference is that they will back off quicker than the bad ones. Unfortunately you are going to deal with this no matter what. It all depends on you and your responses. It’s their job to take as much money from you and it’s your job to save as much money from them. Remember they are not your friends. It’s nothing personal just business. Good luck.
All business only.
About 6 months ago I was interested in test driving a 2022 Nissan Versa. After I put out information online I was instantly contacted by a dealer near me. After speaking with him he assured me he had 2 Versa SR's on the lot and I set up an appointment for the next day to come to the dealership. The next day I arrived there and was told by him the 2 Versa's were gone. One was sold and one was moved to be sold at a different location. BUT he said he can give me a great deal on a Sentra. After expressing my opinion of the bull***t that was taking place my wife and I strongly suggested the salesman kiss our asses, (yes both) and we proceeded to storm out of his establishment and refused to "give him a chance to explain." We both had smiles on our faces as we left while 3 salesmen with their mouths open watched us.
Buy Legalshield before you go into the dealership. When they present the contract to you, call a timeout. Tell them you want to have your attorney review it. And the attorneys will!
Just last week as I was about to leave a $500 (refundable) down payment and the dealer would locate the 23 RDX that I decided on. I had let him know early on during the test drive that I would not be interested in any vehicle that included an up-charge / market adjustment fee. They had several lines and I test drove several before zeroing in on the Acura. Spent 2 1/2 hrs there and the sales rep comes out of the finance office with the final figurers / paper work and before showing them to me stated that this vehicle has an adjustment fee but that they were not going to charge me 😂 I looked at the #'s to discover that they were allowing me $5K less for my trade than it was actually worth "as a trade." (I did my homework ahead of time). YES $5K so not even close. ha ha ha. I let him know that I considered it an insult and wished him a nice day. Can't help but wonder how many folks for this BS tactic. 🤬
What’s with the leaving swiftly? I will stay there and bullshit and keep them from making a sale when I know I’m not gonna buy it.
Did that to a salesman years ago when he started out telling my husband and I about their destination fee and had to get the cars from somewhere and how costly that was on the dealership blah, blah, blah. We entertained ourselves listening to his lies and walked out after thanking him for his time blah, blah, blah. Could not help wondering what ridiculous lie he was going to tell next.
Last week I went to buy a second hand car and I knew how much I wanted to pay. The dealer wanted the window price but I was adamant, he told me he had 3 other people coming to see the car so I stood up. He then said he would waive the admin charges and I told him that I would never pay anyone admin charges for a used car, as that should be in the price. He asked me how much I was prepared to pay and I told him for the second time. He hummed and arred so I said, "Well if that's your answer." My terms were agreed and he asked for cash so I paid by debit card, and the car is outside my house now.
Lmao
Ummm....so what part of admin charges did you fall for? It matters nothing about how they break it down ... if you paid $5.00 for a car they wanted $10 for, you did good, right! And then the dealer gives you a receipt saying you paid $4.50 for the car, and .50 cent in admin charges, do u give a shit? Of course not. Do u understand the game now?
@Chris R The system in the UK is not the same as in the US, or don't you understand that?
@@colinp2238 Interesting, because what you described is exactly what happens in the US
@Chris R The way that you put it seemed to say that the charges are built into the price. The only thing in the UK that is built in is the tax, so you pay the price shown, unless you can negotiate. Industrial equipment may be shown without the tax, but it has to be clearly stated at the point of sale.
"The bank would prefer that you..."
"Then the bank can pay for it."
😂🤣😂🤣😂
Auto dealerships are one of the shadiest businesses out there. How this has been allowed for so long is disgraceful. NO other industry is like it. At every point in the sales process, they do nothing more than scam, lie and cheat.
I feel very informed now that I have been watching all your videos. Question 🙋🏽♂️ being that car dealerships have little inventory and cars “in transit” with deposits on them already. How can I Negotiate a good deal when they have no shortage of buyers??? Any suggestions??
Buy a car that isn’t the cool car. Or wait.
Let's just agree that 99.9% of dealerships are trying to screw the customer as much as they can! Due to this known fact, customers go into the process knowing that it will very likely be a stressful visit. Besides the customer getting frustrated and walking out, the automobile manufacturer is also being hurt by losing the sale because of the dealerships altering the msrp negatively affecting the number of vehicles ordered/built and sold. Just take this "power to manipulate pricing" away from the dealerships and let the manufacturers decide upon their bottom line/take it or leave it sale price for each vehicle! No discussion/bickering/arguing. Let the dealerships store/show/finalize sales, provide parts and services only. MHO
Also make it clear I don't have to have this purchase today . Trust your gut walk if needed
Here is a better idea
How about you never set foot in the F&I office in the first place?
Or we could take it a step further and never set foot into a stealership at all?
Why I go thru Carvana. Don’t speak to anyone. The price is the price
I bought a year old truck 10 years ago and the finance guy wanted me to sign up for extended warranty. I said why isn’t this truck solid? He commenced to draw a bid x on the document and said I would be sorry as that truck has 90 computers in it. This was 12 years ago and I’ve had no problems with this unit at 125k miles.
Another thing to watch out for in general: SOME car dealers will hold a "scratchoff ticket" contest, but they require you to fill out a form before they will tell you if you won - DON'T FILL OUT THAT FORM! At the least they they are collecting information to sell to other businesses, at worst it could lead to identity theft!
I had a finance guy give me a lower interest rate because I bought the extended warranty, but I knew I could cancel it. I did so a week later and kept the lower interest rate on the loan.
Why are people who shady? Why can’t they just be honest and actually care about the customer? Don’t they want the customers to be return customers?
Right, never understood this.
If they fleece you bad enough the first time, they don’t need you as a repeat customer. I actually heard a horse trainer brag about this. His family had to “pass the plate” to pay for his burial expense.
I'm 79. I'm reasonably sure that, when I was your age, the definition of "product" you are using in this video didn't even exist.
When I got out the Army in 1970 I had saved up $2,200. The car I wanted was $3,200. I couldn’t imagine borrowing $1,000 to buy a car. Solution - I imported directly from Germany a Volkswagen Beetle. By importing the car directly I saved $100 v the dealer, not an insignificant sum in 1970. I paid $1,700 for the car. I drove that Beetle 170,000 miles! I have only purchased new cars and I have always paid CASH. Imagine how much money I have saved by never paying interest on car loans. Happy trails 🤠.
Same here! Last time I financed Chevy was building Cavaliers paid off when I got back home. ! Yes saves lots of money.
Fun fact: dealer finance and big banks suck! Do yourself a favor and find a credit union 👍
Every time I be bought a new car, I’ve come away feeling like I got taken - sometimes blatantly. I wish there were advocates you could hire to advise and walk you through the process. It would be worth it to come away feeling good about the purchase!
Local dealer this afternoon. Advertise truck for 68,010 msrp on website. Ok I go look. Nice truck. Value my trade at 40,000. Ok np I owe 45,000. 5,000 negative equity I say I’ll pay it off by putting up 5,000. Then they say the truck monthly payment for 84 months is 1260. I said how so much. He said the truck is 78,000 plus your 5,000 brings it to 73,000. I said internet price is 68,000. Then I learn they have a 5k mark up they don’t disclose. Back and forth he says I can get you to 950 a month with 8K down at 60 month balloon payment. Where I’d owe 30,600 at the end of the 60 month term balloon payment. I walked off as it got to complicated with there numbers when I told them I’d be ok at 950 a month and my local credit union would give me there rate. Then they hit me with the. Oh well we only do commercial financing cause it’s a commercial truck. Your own financial institutions rate isn’t good cause we can’t give you the advertised price from the internet (68,000) plus the hidden 5K from dealer mark up they tried hiding
Be prepared to walk out and don't go back. I had that happen many times, with one dealer actually follow my car as I was driving away. His manager must have fired him I bet. Tell them you decline all the dealer fees and scam crap. I had one dealer ring up $1700 in ""fees" (dest fee. admin fee, dealer fee, origination fee, crap fee., etc. ) I decide to walk away after they said they could not eliminate any fees. I say bye bye. They lost a $35000 deal. It was for an Acura TLX.
I've walked out before . 1. The sales guy tacked on 2500 in charges. When I asked about getting rid of them he told me the charges were the law. When I called him out to show me the law he beat around the bush I walked out.
2nd. In finance office I told him finance the car and I will pay cash for the extended warranty on a use vehicle. He said it had to be financed with the bank by law. When I said fine was gonna leave cause I knew he was full of it. The dealer manager walked in told him just to do it. So then the finance guy still tried to argue with me. I called him a Lying peirce of crap. More choice words if you know what I mean while I was walking out of his office.
7:40 This can happen at the bank as well. Wife and I went through a Mortgage contract with the bank rep at Royal, thought it didn't flow well from one page to another. The rep just laughed and said it was typical legalize. We signed. Never did get our copy. Two years later, we sell the house, end the mortgage and find out the reason the contract didn't flow was because he left out a page about a "craw-back" we'd have to pay if we ended early. We lost all the benefits of changing the mortgage to them with the crawl-back. Will never deal with a bank again for a mortgage, we've saved up and will pay cash.
Deal with credit unions
If you buy a vehicle from this point on here's your sign wait save your money and wait until all the dealerships start closing down it's coming real soon 😊
Young people should be required to take personal finance courses in high school, so they don't wander out into the big bad world totally clueless. And when it comes to purchasing all the add-ons a typical car dealership pushes, they should learn to research all the various items commonly offered prior to walking into a dealership to determine what, if any, add-ons they really want. Also get financing quotes from at least two or three sources before sitting down with the dealership F&I person. Dealerships manipulate the rate to the buyer, adding to the actual rate they have approved from the lender. You don't need to pay them extra, get the loan directly from the lender. The best approach is to do some homework up front, then walk into the dealership knowing how much you are willing to pay for the vehicle, and what add-ons you are willing to purchase from the dealership, if any. Then refuse to get into a negotiating game with the dealership personnel. JUST SAY NO, and be willing to stand up and walk out the door. There are lots of other places selling vehicles, and you don't have to deal with people you don't trust.
I second this! I’m young and naive!
Um, the purposely don't teach them in high school because if they did the economy would collapse because no one would ever talk the dealers losy offers. Without those losy offers dealers would become insolvent and go out of business. Dealers exist only by double dealing the customer.
These states require personal finance courses in HS.
Alabama (existing)
*Florida (2027)
*Georgia (2025)
Iowa (existing)
*Michigan (2028)
Mississippi (existing)
Missouri (existing)
Nebraska (2024)
North Carolina (existing)
Ohio (2025)
Rhode Island (2024)
*South Carolina (TBD)
Tennessee (existing)
Utah (existing)
Virginia (existing)
@@newvillagefilmswhat is your source on this?
FM told me the only way i can get approved for a loan is to buy the extended warrenty. So i did for $2,500. He was laughing and rubbing his hands together when i left his office.
Question on the "lower your interest rate if you purchase "this" product" - if you were thinking to buy the product already but on the fence and Finance Manager says this, why is it a red flag? What would be a good response to this scenario? Can you respond, "Since you can get me that interest rate if I buy this product, isn't it correct that you can give me that same interest rate if I don't buy this product?"
3 places I HATE to go to:
The dentist
The hair salon
The car dealership, and that is why I buy from Carvana.
Thanks for your help guys. I watched many of your posts and negotiated a deal a couple of hours ago. Your info was invaluable. I am curious about the MSRP vs. Invoice price. My old school days, we use to negotiate up from the Invoice price. These dealers want MSRP and above with their add-ons. Won’t go below MSRP.
I remember in 1990 I Managed a Dodge Dealership. We had the little D50 Pickup trucks. The Difference from MSRP to Invoice was $67.00. I never stocked another D50.
So many of these problems can be avoided if you just pay cash for the car. If you do not have the cash, then you cannot afford the car. Borrowing money for a car is the worst financial decision you can make.
Incorrect. Your credit score is higher if you have a long-term loan history.
@@jenhofmann do you know what credit score means? How much money you can borrow that you need to pay interest on. Interest is one of the worst things in this world.
You missed the most important one, check their payment calculation as I've seen them fudge numbers to increase the payment over what the interest rate actually calls for. When I called them on it I got the "oh I must have fat fingered a number" the payment on a less than $200 mo payment was $30 higher the amount and rate required. Use your own calculator and verify!
6:21 Did the same…they said extended warranty comes by default and it’s their policy…#putmyhokasonandgo
All of these problems go away when I say "I've decided to just write you a check."
No,they will still yank unsuspecting people into the "finance room" and try sell add ons.
Change the laws requiring cars to be sold through dealers and run these crooks out of business forever. Vehicles should be sold directly from the manufacturer.
I got a Carvana ad on this lol
I don't agree to purchase any "extras" in the finance office. I've already made my deal as to what I want with the salesperson. When I walk into the finance office, what I've already agreed to with the salesperson is all I'm going to agree to with the finance crook, I mean, manager.
Very disgusting dealing with car dealerships...
There are 100% banks and credit unions that require gap insurance. In states like New York, it’s illegal to make money on gap insurance, and they cap what you can charge for it. Only one I really disagree with here. Gotta say, you’re one of the more honest dealer-bashers out there.
The one thing any car buyer can be certain at every car dealer is the single most dangerous person they will encounter is always that smarmy F&I manager.
Just a quick question. When I bought my car at the dealership they ran my credit report with a bunch of banks lenders. They basically chose the lender for me. Do I have the right to ask them what the interest rate offered by each lender? Or should I just take their word that they are choosing the lowest interest rate for me. Which I did. Oh by the way I refused everything the finance manager tried to offer me and she started to get angry. I knew at that point I did the right thing. The only thing I was not sure of is the interest rate? Mine was 2.39% by the way. So I’m not stressing considering how it is now. I bought a 2020 Chevy Blazer Premier on Nov 2020 with 750+ FICO score.
You guys are so true and right about people not receiving copies or requesting copies of anything they sign and I like what she said specifically about one copy for the finance manager one copy for you if it doesn't go that way then get up and leave I don't know a lot thank you guys it's hard ball out there but that's the real world
you are SO right, the market is so tight right now that it is beyond jaw dropping what I’m encountering as I’ve been visiting dealerships. Thanks for these videos
Wouldn't it be simpler to just use your oun bank that you trust for the loan?
depends, if you have great credit sometimes you can get even a better rate with the dealership. My buddy just got a 2022 Ram with 0% interest rate lol.
@@wolf0491 problem with 0% rates is that the dealer will not negotiate on the sale price... or won't go lower. Happens all the time.
@@biggianthead17 I mean if the car is being sold at MSRP I don't see the problem. If they will only give you 0% and require you overpay a couple thousand them yeah screw that. That was not the case here though. He somehow got it under MSRP with 0%.
@@wolf0491 I’m sure there’s something like extended warranty or accessories that aren’t necessary they threw on.
@@box3071 I mean he specifically asked for a extended warranty so your right haha. But you can't convince this dude not to buy one after one of his past cars was always in shop lol. I saw his entire bill of sale. Shit was a crazy good deal they must know the salesman like personally because it doesn't make sense to me
Just don't buy extra products from dealerships. They're never going to be in your favor. Buy the car, nothing else. Everything else is pure profit for the dealership at your expense.
I fell into this trap and I only can blame myself,the finance guy said we put this info on a memory stick so it’s faster,this is a big no,so this means you get to see everything when you get home and print it out.I’m so mad at myself for doing this.I will never forget and I will never go back to Beaver Toyota in St Augustine fl
What did you buy if you don't me asking?
A Toyota Highlander
@@larryaugust8205 Ehh buying it doesn't hurt especially if you got a 10 year. The only reason why Toyota is perceived as more reliable is their owners take care of them. The service department stays busy though, they are the main money maker for the dealership. The Toyota store I worked at did over a million per month if that tells you anything. A large portion was covered under service contracts. Manufacturer warranty only covers defects anyway
OK, so I'm lost two minutes in. "Front end product." "Back end product." Hey, we're not finance wizards. Can you explain in layman's terms, please? Bad start, I'm out.
Hey, you guys. You guys are very informative and hilarious. I appreciate you and your content. Thanks for sharing 🙂
Made appointment to test Ford Focus, any colour but white or black. Taken to white car, no keys, covered in snow, helped salesman clean off. Later in office finance manager was annoyed I would not say yes, came close to me and said - you will be back to buy that car in a nasty voice, I never did but went to next town 15 km away and purchased green Focus, financed myself with my work credit union, paid less and I had for 14 years with very few issues.
Good reminder: The car dealership should not be your only source of information. Investigate the local economic situation yourself by talking to a local banker first. Do some internet research on interest rates at local credit unions before you talk with the dealer in person.
Why is this all legal and why have states and the governments not cracked down on the B.S.
Can you please describe what the buy rate is?
For anyone wondering what the buy rate is, I have watched enough videos of theirs to answer my own question LOL. Buy rate is the interest rate that you are originally approved for, the “behind the scenes “rate that the car dealer can inflate to hide what you were actually approved for before they can profit off of it.
I imagine these extra “products” you are referring to are extended warranties…. You should really have addressed that so folks understand what these products are exactly - otherwise very good job. Thanks.
Dealerships have to rip you off. They need to keep the doors open and the lights on. Think about that huge payment every month for the next sixty months or more. Will you be able to keep your lights on and have a door to open? Think about it, before you sign your life away.
At this point everyone must be as knowledgeable as a dealership to beat the dealership
A salesman told me "tell the salesman you're only going to deal with his manager, and tell the manager you will pay ONLY 3% over DEALER INVOICE"
I always get preapproved from my CU first so I already know the terms before hand. You can also always refinance after you go through a dealership.
Just make sure that the dealership's contract does not have a pre-payment penalty clause.
Good stuff, but you need to define terms in every video because we are not watching them all. For example, I had to google "buy rate." I think you should have defined it in context.