Not only did Zach and I talk about dealer invoices... I even wrote a little something for those of you who don't want to look or listen to us (I don't blame you): yourautoadvocate.com/guides/dealer-invoice/
My stealership in the 90's used to show invoices to customers ,, not factory invoices but invoices from the parent of the dealership... They used all the same fonts and formats ,, only disclosure it wasn't factory was a line at very bottom or top which always seemed to be cut off by the copy machine. Funny ,, it was always 4-5% above the real one.
Great work guys. Learning more everyday. A couple of suggestions for your viewers. First, to make the buying process easier, ask the sales person / closer / finance manager to leave the office for 15 to 20 minutes while you look over the numbers. But beware, they are always listening. Pick up their desk phone and hang it up again or unplug it completely. You will be amazed to see how fast someone comes back into their office to see what the "technical" problem is. Also snap pictures of the documents to compare against the final numbers later. Additionally, take a picture of the VIN number of the vehicle that you actually test drive. They may have an identical vehicle that's been in the inventory longer and that's the one you will end up with in the final documents. That bait and switch actually happened to me when I was purchasing a car for my son in Portland Oregon. They denied the switch until I showed him the picture of the VIN number of the car we actually drove. We walked on that one. Have a great day.
CJ, In all my years I was never exposed to a dealership where they eavesdropped on customer conversations. That is not to say that there aren't dealerships out there that wouldn't do, I just never worked for one and I never would.
@@bootchumbley1766 There could have been a defect from the factory on the car you didn't drive. Even though you got to test drive a car that's the same year, model, trim, etc. the one they sell you might have an electrical problem or poorly assembled brakes or whatever. It's always good to test drive the exact car you will be buying.
I did an extensive amount of research on the car I wanted to purchase and found a nearby and (mostly) trusted dealership that I've worked with before. I negotiated what I considered to be a good price and the car is in very good condition (based on my non-mechanic review LOL). Then, I revisited all the websites I had used to research the car and found their prices to be about $900 more expensive (internet price, mind you). I suddenly got suspicious of the price I paid - was I being sold a crap car that had a much lower price because of some bad reason. Then I used the Edmunds TMV and it's like smack-dab in the range of what I ended up negotating down to. Thank GOD, lol. Thanks for the tip, guys! - No Longer Paranoid
Just found you guys today b/c I'm in the market for a new car. Not only do I love the valuable information, but its cool to see the relationship between father and son. Reminds me a lot of me and my dad.
Dr Mike .. If you were in the car business you would know that no dealer will show a customer an actual invoice. Were I the dealer where this "expert" worked I would fire him on the spot if he showed a customer an invoice. I am shocked and quite frankly embarrassed for them in spewing mis-information and half truths and just plain circuitous BS. Lots of in house auto industry jargon to obfuscate and a feeble attempt to validate their shtick. Example: Dealer advertising associations. The cost of the advertising association has nothing to do with the vehicle invoice, it is a simple advertising expense. No more, no less and has no influence on any particular car sale passed on to the customer. Full Disclosure.. In the car biz 14 years with manufacturers to include professionally teaching automotive management as an employee of high line Euro auto makers in the USA and Canada, plus 11 years retail.. Mazda/Honda dealer, SAAB/Volvo dealer and a Rolls, Bentley, Jag, Aston Martin, Lotus etc..dealer.. ad nauseum. This channel is a vaudeville act in my opinion. Comical at times ... but painful watching it thinking of the people who are sucking this up as anything approximating expertise or professionalism. My opinion. I have other thoughts on this.. for another time.
I had a dealer for my wife's jeep volunteer the invoice straight up. He said we don't haggle, it's 500 dollars over invoice and that's it. The dealer I use normally usually post the invoice price for everyone to see.
About 20 years ago I got invoice & MSRP prices on internet and offered $500 over invoice to order car as I wanted it. Deal was accepted immediately with no haggling and no finance BS.
@@akhere07 the dealers get additional factory incentives on specific vehicles, so they're probably making $1500-$2000 in addition to that $500 over dealer invoice pricing. But it all depends, it might be less than that $1500-$2000...it might be more.
General Motors (GM) "Pay 310 Line" on GM Invoice Sheet is a good Starting point. Dealer "Holdback"; "Advertising"; "Expenses" are numbers on the Dealer Invoice sheet
RE: USED CARS I heard market values for used cars went out the window since authorities like Kelly Blue Book were purchased by the same corporations that also deal in used cars. I'd love to see you address this in your video on used cars.
Love the Channel and all the things you guys are putting out. I used some of your tactics plus threw in my Disable Veteran to really get a good fair price for them to make a small profit. It took three different dealers to honor everything finally settling with one. Glad I watch your channel
Used car pricing, especially off lease pricing would be great. Dealers often are asking $10,000 above the vehicle buy out price. They claim that they are not making much money on the vehicle.
Another great video guys, really love the bantering back-n-forth between father and son. Yes, a video on used car pricing and how to negotiate a good price on a used and a CPO car at the dealership
I would like to see some content about how to buy the vehicle you want when it's out of state. I recently went through this process and walked away because I felt the dealer wasn't trust worthy. Love your content, I've learned a lot.
That makes me feel better. The dealer said they were losing 1,000 on a deal we're closing today. They were pushing to have me raise my price on the car, but if they are okay with moving the volume, I'm okay with signing a great deal!
Excellent content, as always, gentlemen. Makes me miss my father. Anyway, yes, content on used car negotiation, timing, CPO vs straight used, independent warranty companies vs CPO warranty. Yes Yes Yes - thank you.
@Victor Howard...Sorry for your loss of Father....when the relationship is good, it is a golden memory, and a strength to draw upon! Take care, and you are not alone. Thanks.
Y’all are the best! I’m doing my best to learn how to shop smartly for a 2021 Kia Sorento and trade my 2016 Hyundai Sonta. I will be adding this tip to my negotiations.
You guys are so informative and I just want to commend you on listening to your subscribers because I left a comment yesterday on how you didn’t talk about used cars in the subject of a fair initial offer and you mentioned that you realized you didn’t talk about used cars. Thanks again and I look forward to your video on used car initial offer
I bought a Honda in Huntington Beach after contacting the internet sales manager. I told him I would like to buy the car at invoice and he could keep the hold back. He said yes and actually gave us 200 below invoice and showed us the invoice on his Linix based computer. My buddy who used to sell cars recommended I try this with the dealership.
Pre-internet, Edmunds sold cars at invoice. I bought a Pontiac Sunbird through that program. I picked it up at a local dealer. (The same local dealer quoted $3200 higher than Edmunds.)
Great content guys and as a fifty-two year old man it’s great to see the relationship you all have and fun to see the nuances of your age difference play out especially in the politically correct time we live in. As someone who has always despised the whole car buying process you have encouraged me that it can be a mutually enjoyable process rather than feeling like I’m dealing with my ex-wife. Thanks
I enjoy every bit of content you produce. I am thinking about replacing my 2015 Chrysler 200C AWD, which I bought having 2,100 miles on its odometer over 4 years ago. I am learning which mistakes I made when purchasing the 200, and that is such an eye-opener.
Excellent on how to see invoice - but that is if the manager/salesperson has the honesty and integrity that your Dad Shefska has!!! Willing to share markups, show wholesale pricing, etc! Even Invoice may not be indicative of the real cost. Tjhere may have been dealer incentives, etc. You two are a loving crack-up together!!!
The last three new vehicles I bought at a Chevy dealership, I paid 13/5%, 18.8% and 16.6% below MSRP, respectively. There was no trade in and I paid cash. When I buy new farm equipment, including tractors, combines and implements, my dealer discounts the suggested John Deere retail price by 23% and then tacks on his dealer profit. Typically, he adds $5000 for a tractor or combine and $1000 to $1500 for an implement. I would never pay the listed or advertised price for new vehicles.
I worked with a former car salesman about 35 years ago, and his take was that the dealers didn't even know how much they paid for a vehicle until all the various factory discounts were accounted for, which might take several months into the next year.
Another hit by team Shefska!! Thanks for all the info you guys give. When I’m ready to buy I’m definitely going with Your Auto Advocates. Thanks. Team Rad!
alot of dealers are moving to 'no haggle pricing' where they won't negotiate the price - it just is what it is....how does that work, and are they better deals than trying to negotiate?
There's still haggling that goes on at the end. They want you to THINK you're getting a deal but in reality, you probably aren't getting the BEST deal possible. For example, in my last dealing a few weeks ago, I haggled at the end for an additional $600 off and basically got it. This bought the price of the car (not including taxes and fees) to actaully $200 below invoice. The dealer still made money on the car, and I got a good deal. But their "no haggle" price was still about $500 above invoice. So while they are cutting to chase a bit more, you still have to haggle a little to get a good deal. Always start out low, even below their "no haggle" price. Because I bet that half the people go "That's not a bad price" because they compare it to MSRP and see that it's, say, $2000 less than MSRP. MSRP price is a joke. I never pay attention to it. I'm concerned about invoice price and a "great price" given by sites like TrueCar and others.
when I was selling Ford cars the dealer I was with showed the invoice and hold back then showed the customer what we wanted to profit is with 2nd sticker and let the customer decide, funny when your upfront people still don't believe you.
Absolutely! We’ll include more tips on pricing and making offers on used cars in our upcoming videos. Stay tuned for more insights! If you have specific questions, feel free to ask.
used cars for sure. how to negotiate and does the invoice tactic apply to used cars ? i got the basics far as seeing competitors pricing and trying to get a price match and scare the dealers into thinking i will go to another dealer. but how should i determine the dollar amount to get the best deal on that used car ?
Thanks, learned a few things. Probably good to get the estimated invoice price from Edmunds first and then go to the dealer and ask for their invoice price, then do a comparison of the two.
If you have a trade in what steps would you suggest that one take to ensure that you don't give back all the discounts you've negotiated on the new car price when you have that trade in? And should you tell the dealer upfront that you have a trade-in up front or should you hold that info until later. I'm imaging that a Dealer would look at the trade-in as a way to pullback some of the discount's you've negotiated....so with that in mind....would it be a good tactic to negotiate the price of new car assuming the trade-in and then when you get the price of the new car tell the dealer that you've decided not to do the trade-in?
I’ve watched this program for about 5mos now, and for me, it’s a hit/miss. I narrowed my selection down to a Toyota/Honda/Subaru SUV, while the fees discussion has been helpful, I’ve found that many of these dealers have adopted a similar pricing strategy of Carmax. Salesmen are paid a salary and no commission. Soooo, their message is take it or leave it. I’m not seeing salesmen trembling in their shoes. Maybe pride before the fall, but these various strategies have not been terribly successful. Appreciate your effort. Thanks.
In the old days assume 10% on base vehicle. Depending on manufacturer 25-25% on all accessories. This has worked well for me on all Japanese vehicles. This was prior to all this "dealer markup" due to chip shortages. On American cars I believe it might be less on the base vehicle but then you get hammered with all the add ons.
What a consumer can see as dealer invoice is not “dealer invoice”. The dealer pays CONSIDERABLY less than what invoice is. Think about it if dealers are selling only a few hundred over invoice how would they stay in business? That huge car lot, all the cars on the lot they are making payments on, insurance, electricity, and all the staff that’s sitting around. I know 2 families that own dealerships and they both have multiple million dollar houses around the world. You can’t afford to live that way unless the profits are huge. Never ever feel bad for dealers. They won’t sell unless they are making money. They never lose money.
Jeff, I beg to differ. The invoice is the invoice but there are other ways that manufacturers help dealers make profit, such as hitting and surpassing monthly and quarterly sales objectives set by the manufacturer. Oh, and dealers make the bulk of their profit off of the parts and service departments, it is not just sales.
I do appreciate your videos and your response but I do need to disagree. Just do the math. No business can make such small margins and support physical locations, advertising, employees, utilities making a few hundred per car. It really shouldn’t be called “invoice” as that’s a farce. It should be called “intro price” or something else than invoice. Dealerships by far make the most profit on used cars. They totally control what they pay and what they sell a used car for. I agree on monthly bonuses, spiffs and incentivizing manufacturers will do to push the metal. BUT your argument on parts and service bringing in the bulk of dealership profit. We all know independent mechanics and the profits margins are small. The only way independents can stay competitive with dealerships is buying charging less and providing better service. I love it how many dealerships you’ll hear say that when you trade in a car to them that their service and or parts department charges the sales department what a outside customer pays for service or parts. Gimme a break they pay cost. Under the GM and owner the service/parts isn’t going to profit of sales department for anything. I’m sure they do report up different p&l for monthly performance metrics. In order of what department brings in the most profit it’s: Used cars, new cars, finance, service, parts. Now to give you the benefit of doubt you may not have seen what the dealership really pays for new cars as that might have been held close to the chest by the GM and or owners. Owners don’t make millions off service and parts. Do we all really believe that a mass produced Tahoe/Suburban cost manufacturers 60k to produce then dealers pay 65k and we as consumers pay $65,500?? That is not sustainable for any business. Let’s not fool ourselves.
@@jeffpalmer9542 Do you have any idea how much profit they make on parts and service? They charge the book value on the time of labor for any repair. If the book says 1.5hrs I'd bet they do it in .5 to1hr. Plus if their service rate is $120/hr they're probably making $50 to $90/hr in profit. Multiply that by 5 or 10 service bays x 8 hours[or 14hrs in labor by the book value] and that adds up to a lot of cash. Then they mark up the parts by up to 150%! For every vehicle they sell they'll make a minimum of $300/year on maintenance and warranty work. A dealer would have to be insane to tell his sales and finance staff not to sell anything if they don't make X amount in profit.His main motivation should be to move as many cars as they can out the door. Even if a dealer doesn't make any money on a sale I don't think he'll lose any sleep over it.
Yes! On the used car content. I don’t want to finance so I need to buy used. I have a healthy budget and know basically what I want but have no idea where to start. There aren’t many available in my area (and I live in one of the largest cities in the US) so in your content if you could cover finding a car and having it transported as well. Thanks!
Do you have a video that discusses the best time to buy a car based on the dealer meeting factory goals? Is it towards the end of the month, the end of the last month of a quarter, or the end of December? Which is the best?
I really like these guys and have gained confidence in dealing with auto dealerships when purchasing cars for the family. Did I miss something in this video? Where is it that explains “how to get dealer invoice”
definitely interested in used car negotiations , specially when you have a trade in. it's more complicated since you need to know about two vehicles in this scenario , you don't want to sell yours for cheap and you don't want to buy theirs high either.
Unless there are no additional consumer rebates and incentives .... this is in response to offering a few hundred over invoice.....keep in mind they have all sorts of incentives as u said beyond holdback from auto shows or lack there of during COVID for dealers to still be willing to take inventory. All related to new car buying
I would love to hear your guys discuss how to negotiate used car prices in the current market. I know carmageddon is upon us, but it seems used car prices still aren't quite at their lowest. I'm looking to purchase a pretty hot selling car right now, and they seem to be, "flying off the shelves," so to speak. I'm wondering if I should wait until Hertz unloads their fleet, or just try something to purchase at a good price right now. Also the car is a 2018+ mustang GT.
@@georgepetrillo7316 yes, picked it up around the time of my original post. Paid it off in about two years. So glad I got the deal that I did, before car prices went crazy high.
A couple questions: How do you know you are getting the true and total amount of dealer incentives available? Why are advertising costs (why are implied to,be reasonable for reimbursement) any different from other dealer costs like electricity or rent or property tax?
I noticed that too. Why was he so insistent that the customer should pay the dealer's cost to advertise? That's his agreement with the manufacturer and all the other dealers. I didn't sign up for that.
I've watched tons of car buying videos in the past few weeks, and I swear I've seen these guys (and everyone else) say NOT to pay advert fees since it's the cost of doing business. Dealers need to advertise to sell their product.
@@Funexpected maybe so but they really don't have to. People can discover their cars right there on the lot. I don't see myself paying a dealer to tell me about a car that he wants me to buy.
watched the whole video and was not told "How To Find the Dealer Invoice" ? Where can I find a source of not only Invoice on the car but on all options? Thank You
YEARS AGO I called dealers asking what % over invoice they would sell me a certain vehicle for then use there % quote at next dealer got my 05 honda element for 4 % over
How do you find out if the particular vehicle you want has: 1) Holdback. And what is that amount? 2) Any customer/factory-to-dealer incentives AND, what those incentives are?
In my area, no dealer will ever share their invoice price or discuss their holdbacks with customers. They consider that information as 100% private and feel that it's none of the customers' business how much the dealership is making on a sale. That is why I use an auto broker to buy my vehicles - because he buys 300+ cars every year, and the dealerships are willing to give him more information and better deals because they know he is going to help them sell a lot of cars and consistently meet their quotas. When a customer walks in off the street - dealers don't feel any obligation to "show you their cards" so to speak.
How do i contact a. Auto broker in my town of dallas texas. I dont have a computer. My cell is cheap Im on limited income. I never did know this about a auto broker. Im 74 yrs old. So i will always keep the phone number handy. I appreciate it. In the past yrs. Of car buying i felt like i never got a good deal at all. I never had the money to put down. I didnt have muc credit. I never had cash to buy a car new or used. Dealerships has always helped me get a car. But i paid the high price to. So i dont know anything about wheeling and dealing haggling etc. Ive even ask a few coworkers men to go with me to shop for a car. That was a joke to. The guys bragged about how much they new about car buying. That was a big mistake. It was very embarrassing. So i did know exactly the choice of vehicle and best engines etc. I ve also ask for walk out price with ttl. Etc. I still got a raw deal. I also walked out before. The price was over msrp. Im a mess. I dont know a good deal if i saw it. Cuz i just dont know. So i neef some help. What is all the incentatives discounts with no car washes to charge me for. No destination. Charges. What else is on this list to know of not to pay at all. How much under marp. Is a good deal. Besides thinking the price under would be 4000.00 under plus all incentives plus never ever to pay price that dealers. Will never tell us. That way after all that is deducted then i can say what will you sell me the car for. Only base price. This should be 1st question of course. So they did not tell me. So i walked out. Went to another place. Samething. So the third place. Samething. I had no choice. I was almost out of gas. I got a new small car with a full free tank of gas. My car payments was 100.00 cheaper. I was very grateful to get it. I had gas and something to eat at the jack in the box til payday came. I made minimum wage. I had insurance at work. I just lost my mom nov. 25th 1980. I was homeless. My brther helped me what he could with food. In may 1984 i got a 1984. Toyota tacoma pick up small one. I. Just had left eye surgery. I got a unemployment check of 74.00 every two weeks. I guess the salesman felt sorry. For me. Boy was i thankful to get the little pickup. I did warehouse work later. I stayed with my brother until i was well. This is a true story. I dont remember what i paid for the truck. So i guess i got a good deal after all. Thank you . the videos is super great. I. Enjoy the videos.
This may be a topic for a new video, but do you have opinions of “no haggle” car dealerships? Is it a trick to lure you in and scam you somewhere else like in add ons etc.
They just want you to think they are offering their lowest possible price so YOU don't haggle. Find out what the car is worth and selling for and shoot for that price or lower if you can. Don't let them tell you what you're gonna pay, you decide that.
Stores that are "one price, no haggle" are not necessarily guaranteeing you the lowest price, they are guaranteeing a fair market competitive price and cutting out the back and forth. They are creating an ease of doing business that you won't find elsewhere. It is not a trick and they are not trying to scam you, they are merely trying to make it easier for you.
Seems to me if you're considering going to place like this you could use that price as a simple haggling tool and get a better deal without too much effort at a more traditional dealership. I.e., "Autonation will sell me this car for $2500 off MSRP plus $X in fees, I'll buy the same car from you for $3500 off MSRP plus the same $X in fees." Still might not be the absolute lowest price, but it's a better price with minimal effort.
Id love to hear more about CPO’s and how to figure out a fair deal, especially when there’s a trade in value in the mix. How do I work the best deal in that scenario? Dealerships seem to put a large number on CPO. I prefer CPO’s, but don’t really think it’s worth what dealerships seem to think.
Please do the used car vid you discuss. The used car market on Jeep Jks seems all over the spectrum in price and obviously KBB is in cahoots. I saw a 2014 Sahara 130,000 miles for 17g. if you pay that much putting 15,000 miles a year on it you are over 220,000 miles by the time the note is paid.
Thanks for the information I find it useful.I have a question, say if you’re eligible for employee pricing do you have any additional pricing leverage that you can apply during negotiations or are you pretty much stuck with that employee price?
Whether or not that's a good price is dependent upon the vehicle, but the general idea of negotiating an "out the door" price instead of squabbling over this or that fee is certainly a good tactic.
What is the minimum a car dealer should make on vehicle sale knowing that it is not just the amount above or below the dealer invoice? Is $250 enough profit for a car dealership to feel comfortable with a sale?
CPO’d deal - Comparing a model with and without the CPO certification/warranty... Why a dealer tries to push “ well it cost me 2000 to get the certificate, so I have to charge that to you too... “
Great video. Only question is if you have dealer down to invoice which is 25k and you say hey let’s finalize deal at 27k but they start throwing in taxes, lot fees, packages (technology package) how do you deal with that? Again great video I love helping people with car buying because I hate how dishonest it has become
Please talk about the desirability of a recent model used car. Does it make economic sense when the bumper to bumper warranty has expired such as on a lease return, given the I've seen fees Auto repair shops are charging these days? My theory is that anything that you're going to save from depreciation is going to be eaten up by fuel pump brakes etc repairs especially on American cars that barely make it to 100,000. Also you might address the idea of buying a used electric car at a low enough price that you can afford to replace the battery.
What about all the extra fees? Does the website show the out-the-door cost, out-the-door minus taxes? Or just the quoted price without all the extra fees they tack on?
Don't be naive. The invoice doesn't show you any factory kickbacks they get. And your probably getting a crappy trade in price. Go jump in a shark tank...it's safer!
Not only did Zach and I talk about dealer invoices... I even wrote a little something for those of you who don't want to look or listen to us (I don't blame you): yourautoadvocate.com/guides/dealer-invoice/
My stealership in the 90's used to show invoices to customers ,, not factory invoices but invoices from the parent of the dealership... They used all the same fonts and formats ,, only disclosure it wasn't factory was a line at very bottom or top which always seemed to be cut off by the copy machine. Funny ,, it was always 4-5% above the real one.
MSRP and invoice prices are made up #s! Which is why there are holdbacks.
Anything to keep the #s a mystery and consumers overpaying.
@@briantracy1324 adiaà
How much are holdbacks in general and in the high range?
Kill the dealership. Send the car straight to me like Tesla!!!!!!!!
Great work guys. Learning more everyday. A couple of suggestions for your viewers. First, to make the buying process easier, ask the sales person / closer / finance manager to leave the office for 15 to 20 minutes while you look over the numbers. But beware, they are always listening. Pick up their desk phone and hang it up again or unplug it completely. You will be amazed to see how fast someone comes back into their office to see what the "technical" problem is. Also snap pictures of the documents to compare against the final numbers later. Additionally, take a picture of the VIN number of the vehicle that you actually test drive. They may have an identical vehicle that's been in the inventory longer and that's the one you will end up with in the final documents. That bait and switch actually happened to me when I was purchasing a car for my son in Portland Oregon. They denied the switch until I showed him the picture of the VIN number of the car we actually drove. We walked on that one. Have a great day.
CJ, In all my years I was never exposed to a dealership where they eavesdropped on customer conversations. That is not to say that there aren't dealerships out there that wouldn't do, I just never worked for one and I never would.
If it is an exact vehicle, who cares
@@bootchumbley1766 read what he typed real realllll slow
@@bootchumbley1766 There could have been a defect from the factory on the car you didn't drive. Even though you got to test drive a car that's the same year, model, trim, etc. the one they sell you might have an electrical problem or poorly assembled brakes or whatever. It's always good to test drive the exact car you will be buying.
I did an extensive amount of research on the car I wanted to purchase and found a nearby and (mostly) trusted dealership that I've worked with before. I negotiated what I considered to be a good price and the car is in very good condition (based on my non-mechanic review LOL). Then, I revisited all the websites I had used to research the car and found their prices to be about $900 more expensive (internet price, mind you). I suddenly got suspicious of the price I paid - was I being sold a crap car that had a much lower price because of some bad reason.
Then I used the Edmunds TMV and it's like smack-dab in the range of what I ended up negotating down to. Thank GOD, lol. Thanks for the tip, guys!
- No Longer Paranoid
Just found you guys today b/c I'm in the market for a new car. Not only do I love the valuable information, but its cool to see the relationship between father and son. Reminds me a lot of me and my dad.
I was in the car business for 13 years. 6 as a manager. I appreciate your openess and candor about the business.
Dr Mike .. If you were in the car business you would know that no dealer will show a customer an actual invoice.
Were I the dealer where this "expert" worked I would fire him on the spot if he showed a customer an invoice.
I am shocked and quite frankly embarrassed for them in spewing mis-information and half truths and just plain circuitous BS. Lots of in house auto industry jargon to obfuscate and a feeble attempt to validate their shtick.
Example: Dealer advertising associations. The cost of the advertising association has nothing to do with the vehicle invoice, it is a simple advertising expense. No more, no less and has no influence on any particular car sale passed on to the customer.
Full Disclosure.. In the car biz 14 years with manufacturers to include professionally teaching automotive management as an employee of high line Euro auto makers in the USA and Canada, plus 11 years retail.. Mazda/Honda dealer, SAAB/Volvo dealer and a Rolls, Bentley, Jag, Aston Martin, Lotus etc..dealer.. ad nauseum.
This channel is a vaudeville act in my opinion. Comical at times ... but painful watching it thinking of the people who are sucking this up as anything approximating expertise or professionalism. My opinion.
I have other thoughts on this.. for another time.
I was and we did on occasion. Often they would look it up on line and come in knowing the invoice price.
I had a dealer for my wife's jeep volunteer the invoice straight up. He said we don't haggle, it's 500 dollars over invoice and that's it. The dealer I use normally usually post the invoice price for everyone to see.
you think so? I bet not if so where do the get the cash to build the fancy buildings?
About 20 years ago I got invoice & MSRP prices on internet and offered $500 over invoice to order car as I wanted it. Deal was accepted immediately with no haggling and no finance BS.
So you are saying dealers profit is only $500 for a $30-40-50k car... isn't that too low for such a business and such a big item in modern world
@@akhere07 the dealers get additional factory incentives on specific vehicles, so they're probably making $1500-$2000 in addition to that $500 over dealer invoice pricing. But it all depends, it might be less than that $1500-$2000...it might be more.
@@akhere07they make more than that easily
@@GriffXJis this the holdback you are referring to?
@@racheli2598 I believe that's the term for it, yes
Please talk about used car prices! Thank you
Yes I agree, definitely would love to see a video on the best way to gauge a used car price.....
General Motors (GM) "Pay 310 Line" on GM Invoice Sheet is a good Starting point. Dealer "Holdback"; "Advertising"; "Expenses" are numbers on the Dealer Invoice sheet
RE: USED CARS
I heard market values for used cars went out the window since authorities like Kelly Blue Book were purchased by the same corporations that also deal in used cars. I'd love to see you address this in your video on used cars.
27k kkb value in 2018 accord at the same time Brand new 2020 is also 27k msrp. All the dealerships around me keep telling about kbb bs value.
@@tommydo961 True but now that new 27k accord is going for 35k easy or more so used is still cheaper but its all bs.
Love the Channel and all the things you guys are putting out. I used some of your tactics plus threw in my Disable Veteran to really get a good fair price for them to make a small profit. It took three different dealers to honor everything finally settling with one. Glad I watch your channel
Used car pricing, especially off lease pricing would be great. Dealers often are asking $10,000 above the vehicle buy out price. They claim that they are not making much money on the vehicle.
Another great video guys, really love the bantering back-n-forth between father and son. Yes, a video on used car pricing and how to negotiate a good price on a used and a CPO car at the dealership
CPO negotiation would be huge
CPO is a waste of money. They dont do anything special to the vehicles. You are essentially buying an extended warranty on it
I would like to see some content about how to buy the vehicle you want when it's out of state. I recently went through this process and walked away because I felt the dealer wasn't trust worthy. Love your content, I've learned a lot.
That makes me feel better. The dealer said they were losing 1,000 on a deal we're closing today. They were pushing to have me raise my price on the car, but if they are okay with moving the volume, I'm okay with signing a great deal!
Have you guys talked about how this stuff works when ORDERING a new car...?
You both are great and your chemistry is amazing. Thank you for all that you do to educate your audience on the car buying process.
Excellent content, as always, gentlemen. Makes me miss my father. Anyway, yes, content on used car negotiation, timing, CPO vs straight used, independent warranty companies vs CPO warranty. Yes Yes Yes - thank you.
@Victor Howard...Sorry for your loss of Father....when the relationship is good, it is a golden memory, and a strength to draw upon! Take care, and you are not alone. Thanks.
YES,YES CPO TOYOTA pricing tips since Cox Auto owns all the pricing sites and appears to inflate numbers!
Y’all are the best! I’m doing my best to learn how to shop smartly for a 2021 Kia Sorento and trade my 2016 Hyundai Sonta. I will be adding this tip to my negotiations.
Yes on more used car buying tactics. Very informative.
Hey Ray pretty nice to be working with your Son Lucky man Can see how much you guys are enjoying it. Thanks for the great information
A dream come true for the two of us. Lucky indeed.
You guys are so informative and I just want to commend you on listening to your subscribers because I left a comment yesterday on how you didn’t talk about used cars in the subject of a fair initial offer and you mentioned that you realized you didn’t talk about used cars. Thanks again and I look forward to your video on used car initial offer
I bought a Honda in Huntington Beach after contacting the internet sales manager. I told him I would like to buy the car at invoice and he could keep the hold back. He said yes and actually gave us 200 below invoice and showed us the invoice on his Linix based computer. My buddy who used to sell cars recommended I try this with the dealership.
I don't pay more than invoice out the door.
Thanks!
Pre-internet, Edmunds sold cars at invoice. I bought a Pontiac Sunbird through that program. I picked it up at a local dealer. (The same local dealer quoted $3200 higher than Edmunds.)
Great content guys and as a fifty-two year old man it’s great to see the relationship you all have and fun to see the nuances of your age difference play out especially in the politically correct time we live in. As someone who has always despised the whole car buying process you have encouraged me that it can be a mutually enjoyable process rather than feeling like I’m dealing with my ex-wife. Thanks
I enjoy every bit of content you produce. I am thinking about replacing my 2015 Chrysler 200C AWD, which I bought having 2,100 miles on its odometer over 4 years ago. I am learning which mistakes I made when purchasing the 200, and that is such an eye-opener.
I was and still are a fan of consumer reports. Their custom price guides are worth every penny for what few pennies they cost.
Excellent on how to see invoice - but that is if the manager/salesperson has the honesty and integrity that your Dad Shefska has!!! Willing to share markups, show wholesale pricing, etc! Even Invoice may not be indicative of the real cost. Tjhere may have been dealer incentives, etc.
You two are a loving crack-up together!!!
Exactly, please talk more about buying used vehicles
The last three new vehicles I bought at a Chevy dealership, I paid 13/5%, 18.8% and 16.6% below MSRP, respectively. There was no trade in and I paid cash. When I buy new farm equipment, including tractors, combines and implements, my dealer discounts the suggested John Deere retail price by 23% and then tacks on his dealer profit. Typically, he adds $5000 for a tractor or combine and $1000 to $1500 for an implement. I would never pay the listed or advertised price for new vehicles.
Hmmm
I worked with a former car salesman about 35 years ago, and his take was that the dealers didn't even know how much they paid for a vehicle until all the various factory discounts were accounted for, which might take several months into the next year.
Another hit by team Shefska!! Thanks for all the info you guys give. When I’m ready to buy I’m definitely going with Your Auto Advocates. Thanks. Team Rad!
alot of dealers are moving to 'no haggle pricing' where they won't negotiate the price - it just is what it is....how does that work, and are they better deals than trying to negotiate?
There's still haggling that goes on at the end. They want you to THINK you're getting a deal but in reality, you probably aren't getting the BEST deal possible. For example, in my last dealing a few weeks ago, I haggled at the end for an additional $600 off and basically got it. This bought the price of the car (not including taxes and fees) to actaully $200 below invoice. The dealer still made money on the car, and I got a good deal. But their "no haggle" price was still about $500 above invoice. So while they are cutting to chase a bit more, you still have to haggle a little to get a good deal. Always start out low, even below their "no haggle" price. Because I bet that half the people go "That's not a bad price" because they compare it to MSRP and see that it's, say, $2000 less than MSRP. MSRP price is a joke. I never pay attention to it. I'm concerned about invoice price and a "great price" given by sites like TrueCar and others.
Thank you all for the info. I'm looking at purchasing a new volvo xc60 and hate haggling but want to get the best deal. Knowledge is power.
Yes, PLEASE. Tell us more about how to get the best deal on a used car.
when I was selling Ford cars the dealer I was with showed the invoice and hold back then showed the customer what we wanted to profit is with 2nd sticker and let the customer decide, funny when your upfront people still don't believe you.
Great information. One question. How does a customer know what the available dealer incentives are for a particular car?
These series of videos are the best. Level and measured. Tons of information. Everyone should watch.
Yes Please!! More about pricing and making offers on used cars.
Absolutely! We’ll include more tips on pricing and making offers on used cars in our upcoming videos. Stay tuned for more insights! If you have specific questions, feel free to ask.
Great info..in negotiations on a car Im interested in right now..weeds out alot of BS...& lets the salesman & manager know you are not stupid
Hit kickbacks first, then move onto used/CPO please.
You guys are great. Love hearing from a reasonable (former) dealer and a current haggler.
used cars for sure. how to negotiate and does the invoice tactic apply to used cars ? i got the basics far as seeing competitors pricing and trying to get a price match and scare the dealers into thinking i will go to another dealer. but how should i determine the dollar amount to get the best deal on that used car ?
Thanks, learned a few things. Probably good to get the estimated invoice price from Edmunds first and then go to the dealer and ask for their invoice price, then do a comparison of the two.
I'd definitely love to see more about used car info gathering / negotiation please! I'm learning so much from these videos! Thanks!
Yes, very interested in hearing about how to negotiate the best deal on a used car.
I heard dealers have invoices specifically for customers. They are not the real invoice. How can I tell if it’s the real thing?
This information is useful but truly all you need to do is change the norm for salesman and they get messed up
4:50 GOLDEN!! Thank you. I will try this!
If you have a trade in what steps would you suggest that one take to ensure that you don't give back all the discounts you've negotiated on the new car price when you have that trade in? And should you tell the dealer upfront that you have a trade-in up front or should you hold that info until later. I'm imaging that a Dealer would look at the trade-in as a way to pullback some of the discount's you've negotiated....so with that in mind....would it be a good tactic to negotiate the price of new car assuming the trade-in and then when you get the price of the new car tell the dealer that you've decided not to do the trade-in?
I’ve watched this program for about 5mos now, and for me, it’s a hit/miss. I narrowed my selection down to a Toyota/Honda/Subaru SUV, while the fees discussion has been helpful, I’ve found that many of these dealers have adopted a similar pricing strategy of Carmax. Salesmen are paid a salary and no commission. Soooo, their message is take it or leave it. I’m not seeing salesmen trembling in their shoes. Maybe pride before the fall, but these various strategies have not been terribly successful. Appreciate your effort. Thanks.
In the old days assume 10% on base vehicle. Depending on manufacturer 25-25% on all accessories. This has worked well for me on all Japanese vehicles. This was prior to all this "dealer markup" due to chip shortages. On American cars I believe it might be less on the base vehicle but then you get hammered with all the add ons.
What a consumer can see as dealer invoice is not “dealer invoice”.
The dealer pays CONSIDERABLY less than what invoice is. Think about it if dealers are selling only a few hundred over invoice how would they stay in business? That huge car lot, all the cars on the lot they are making payments on, insurance, electricity, and all the staff that’s sitting around. I know 2 families that own dealerships and they both have multiple million dollar houses around the world. You can’t afford to live that way unless the profits are huge. Never ever feel bad for dealers. They won’t sell unless they are making money. They never lose money.
Jeff, I beg to differ. The invoice is the invoice but there are other ways that manufacturers help dealers make profit, such as hitting and surpassing monthly and quarterly sales objectives set by the manufacturer. Oh, and dealers make the bulk of their profit off of the parts and service departments, it is not just sales.
I do appreciate your videos and your response but I do need to disagree. Just do the math. No business can make such small margins and support physical locations, advertising, employees, utilities making a few hundred per car. It really shouldn’t be called “invoice” as that’s a farce. It should be called “intro price” or something else than invoice. Dealerships by far make the most profit on used cars. They totally control what they pay and what they sell a used car for. I agree on monthly bonuses, spiffs and incentivizing manufacturers will do to push the metal. BUT your argument on parts and service bringing in the bulk of dealership profit. We all know independent mechanics and the profits margins are small. The only way independents can stay competitive with dealerships is buying charging less and providing better service. I love it how many dealerships you’ll hear say that when you trade in a car to them that their service and or parts department charges the sales department what a outside customer pays for service or parts. Gimme a break they pay cost. Under the GM and owner the service/parts isn’t going to profit of sales department for anything. I’m sure they do report up different p&l for monthly performance metrics. In order of what department brings in the most profit it’s: Used cars, new cars, finance, service, parts.
Now to give you the benefit of doubt you may not have seen what the dealership really pays for new cars as that might have been held close to the chest by the GM and or owners. Owners don’t make millions off service and parts. Do we all really believe that a mass produced Tahoe/Suburban cost manufacturers 60k to produce then dealers pay 65k and we as consumers pay $65,500?? That is not sustainable for any business. Let’s not fool ourselves.
@@jeffpalmer9542 Do you have any idea how much profit they make on parts and service? They charge the book value on the time of labor for any repair. If the book says 1.5hrs I'd bet they do it in .5 to1hr. Plus if their service rate is $120/hr they're probably making $50 to $90/hr in profit. Multiply that by 5 or 10 service bays x 8 hours[or 14hrs in labor by the book value] and that adds up to a lot of cash. Then they mark up the parts by up to 150%! For every vehicle they sell they'll make a minimum of $300/year on maintenance and warranty work. A dealer would have to be insane to tell his sales and finance staff not to sell anything if they don't make X amount in profit.His main motivation should be to move as many cars as they can out the door. Even if a dealer doesn't make any money on a sale I don't think he'll lose any sleep over it.
You're correct. Dealer invoice means nothing.
what do you recommend when negotiating then? invoice, otd price etc?
Yes! On the used car content. I don’t want to finance so I need to buy used. I have a healthy budget and know basically what I want but have no idea where to start. There aren’t many available in my area (and I live in one of the largest cities in the US) so in your content if you could cover finding a car and having it transported as well. Thanks!
Do you have a video that discusses the best time to buy a car based on the dealer meeting factory goals? Is it towards the end of the month, the end of the last month of a quarter, or the end of December? Which is the best?
4 min in he talks briefly on it
If someone is getting an employee discount price is there room for additional negotiation on price or is that basically as good as you can get?
I really like these guys and have gained confidence in dealing with auto dealerships when purchasing cars for the family. Did I miss something in this video? Where is it that explains “how to get dealer invoice”
You dudes are awesome! Thanks for all the info
definitely interested in used car negotiations , specially when you have a trade in. it's more complicated since you need to know about two vehicles in this scenario , you don't want to sell yours for cheap and you don't want to buy theirs high either.
Unless there are no additional consumer rebates and incentives .... this is in response to offering a few hundred over invoice.....keep in mind they have all sorts of incentives as u said beyond holdback from auto shows or lack there of during COVID for dealers to still be willing to take inventory. All related to new car buying
I would love to hear your guys discuss how to negotiate used car prices in the current market. I know carmageddon is upon us, but it seems used car prices still aren't quite at their lowest. I'm looking to purchase a pretty hot selling car right now, and they seem to be, "flying off the shelves," so to speak. I'm wondering if I should wait until Hertz unloads their fleet, or just try something to purchase at a good price right now. Also the car is a 2018+ mustang GT.
Did you ever buy the 2018 Mustang GT?
@@georgepetrillo7316 yes, picked it up around the time of my original post. Paid it off in about two years. So glad I got the deal that I did, before car prices went crazy high.
A couple questions:
How do you know you are getting the true and total amount of dealer incentives available?
Why are advertising costs (why are implied to,be reasonable for reimbursement) any different from other dealer costs like electricity or rent or property tax?
I noticed that too. Why was he so insistent that the customer should pay the dealer's cost to advertise? That's his agreement with the manufacturer and all the other dealers. I didn't sign up for that.
I've watched tons of car buying videos in the past few weeks, and I swear I've seen these guys (and everyone else) say NOT to pay advert fees since it's the cost of doing business. Dealers need to advertise to sell their product.
@@Funexpected maybe so but they really don't have to. People can discover their cars right there on the lot. I don't see myself paying a dealer to tell me about a car that he wants me to buy.
I love watching you two.... big smile
watched the whole video and was not told "How To Find the Dealer Invoice" ? Where can I find a source of not only Invoice on the car but on all options? Thank You
@@CyberSkunk90 wrong. The dealership can alter the real numbers. So So wrong.
Thanks for saving me 18 minutes
Do you still work deals for customers? Cant find anything about that on the car edge site
We do not offer the concierge service at this time ... We can still help you! Caredge.com/plans
YEARS AGO I called dealers asking what % over invoice they would sell me a certain vehicle for
then use there % quote at next dealer
got my 05 honda element for 4 % over
How do you find out if the particular vehicle you want has:
1) Holdback. And what is that amount?
2) Any customer/factory-to-dealer incentives AND, what those incentives are?
Would it be possible for you to record the initial conversation you have with a dealer? Then maybe, make a video of you narrating the recording?
BIG thumbs up for the used car video!!!
In my area, no dealer will ever share their invoice price or discuss their holdbacks with customers. They consider that information as 100% private and feel that it's none of the customers' business how much the dealership is making on a sale. That is why I use an auto broker to buy my vehicles - because he buys 300+ cars every year, and the dealerships are willing to give him more information and better deals because they know he is going to help them sell a lot of cars and consistently meet their quotas. When a customer walks in off the street - dealers don't feel any obligation to "show you their cards" so to speak.
How do i contact a. Auto broker in my town of dallas texas. I dont have a computer. My cell is cheap
Im on limited income. I never did know this about a auto broker. Im 74 yrs old. So i will always keep the phone number handy. I appreciate it. In the past yrs. Of car buying i felt like i never got a good deal at all. I never had the money to put down. I didnt have muc credit. I never had cash to buy a car new or used. Dealerships has always helped me get a car. But i paid the high price to. So i dont know anything about wheeling and dealing haggling etc. Ive even ask a few coworkers men to go with me to shop for a car. That was a joke to. The guys bragged about how much they new about car buying. That was a big mistake. It was very embarrassing. So i did know exactly the choice of vehicle and best engines etc. I ve also ask for walk out price with ttl. Etc. I still got a raw deal. I also walked out before. The price was over msrp. Im a mess. I dont know a good deal if i saw it. Cuz i just dont know. So i neef some help. What is all the incentatives discounts with no car washes to charge me for. No destination. Charges. What else is on this list to know of not to pay at all. How much under marp. Is a good deal. Besides thinking the price under would be 4000.00 under plus all incentives plus never ever to pay price that dealers. Will never tell us. That way after all that is deducted then i can say what will you sell me the car for. Only base price. This should be 1st question of course. So they did not tell me. So i walked out. Went to another place. Samething. So the third place. Samething. I had no choice. I was almost out of gas. I got a new small car with a full free tank of gas. My car payments was 100.00 cheaper. I was very grateful to get it. I had gas and something to eat at the jack in the box til payday came. I made minimum wage. I had insurance at work. I just lost my mom nov. 25th 1980. I was homeless. My brther helped me what he could with food. In may 1984 i got a 1984. Toyota tacoma pick up small one. I. Just had left eye surgery. I got a unemployment check of 74.00 every two weeks. I guess the salesman felt sorry. For me. Boy was i thankful to get the little pickup. I did warehouse work later. I stayed with my brother until i was well. This is a true story. I dont remember what i paid for the truck. So i guess i got a good deal after all. Thank you . the videos is super great. I. Enjoy the videos.
Are you telling me there is a business that takes care of the whole car buying process for you??
This may be a topic for a new video, but do you have opinions of “no haggle” car dealerships? Is it a trick to lure you in and scam you somewhere else like in add ons etc.
They just want you to think they are offering their lowest possible price so YOU don't haggle. Find out what the car is worth and selling for and shoot for that price or lower if you can. Don't let them tell you what you're gonna pay, you decide that.
Stores that are "one price, no haggle" are not necessarily guaranteeing you the lowest price, they are guaranteeing a fair market competitive price and cutting out the back and forth. They are creating an ease of doing business that you won't find elsewhere. It is not a trick and they are not trying to scam you, they are merely trying to make it easier for you.
Seems to me if you're considering going to place like this you could use that price as a simple haggling tool and get a better deal without too much effort at a more traditional dealership. I.e., "Autonation will sell me this car for $2500 off MSRP plus $X in fees, I'll buy the same car from you for $3500 off MSRP plus the same $X in fees." Still might not be the absolute lowest price, but it's a better price with minimal effort.
Gents - well done on responding to points raised in previous video.
🤣🤣You guys are at times funny. Thanks for the valuable Info.
At my dealership we often volunteer the invoice information during price negotiations
Id love to hear more about CPO’s and how to figure out a fair deal, especially when there’s a trade in value in the mix. How do I work the best deal in that scenario? Dealerships seem to put a large number on CPO. I prefer CPO’s, but don’t really think it’s worth what dealerships seem to think.
Is it possible to get invoice info from a prospective build sheet for a factory order?
Please do the used car vid you discuss. The used car market on Jeep Jks seems all over the spectrum in price and obviously KBB is in cahoots. I saw a 2014 Sahara 130,000 miles for 17g. if you pay that much putting 15,000 miles a year on it you are over 220,000 miles by the time the note is paid.
Could you do a used car buying tactics video?
Thanks for the information I find it useful.I have a question, say if you’re eligible for employee pricing do you have any additional pricing leverage that you can apply during negotiations or are you pretty much stuck with that employee price?
Should you just try to pay the MSPR including every single possible thing like local tax and any fees? Seems like that gets you the 7% discount there.
Whether or not that's a good price is dependent upon the vehicle, but the general idea of negotiating an "out the door" price instead of squabbling over this or that fee is certainly a good tactic.
I am interested in videos about negotiating used car prices, also how to spot when a used car dealer is trying to sell you a lemon
What is the minimum a car dealer should make on vehicle sale knowing that it is not just the amount above or below the dealer invoice? Is $250 enough profit for a car dealership to feel comfortable with a sale?
How do we access your help in negotiating for us buying a new car. Thank you kindly. Love your video's.
Wish I watched this before I clicked all the way in true car website. Now I'm getting calls and emails every day.
CPO’d deal -
Comparing a model with and without the CPO certification/warranty...
Why a dealer tries to push “ well it cost me 2000 to get the certificate, so I have to charge that to you too... “
Would you buy a demo and if so how do you figure out if the dealer is giving you a good deal and there some type of formula to figure it out thanks
how do you get the invoice pricing at edmunds i could not find it. Just MSRP.
Would this technique of offering X amount above the invoice price work now (August 2021) that there's supply shortage?
Awesome content 👍 very educational information it always to see father and working together as a team God Bless 🙏 you both in your journey
I was in San Fran in 2017 too for the TN Titans game--our outcome wasn't the same as yours. :(
Great video and keep up the good work guys!
Great video. Only question is if you have dealer down to invoice which is 25k and you say hey let’s finalize deal at 27k but they start throwing in taxes, lot fees, packages (technology package) how do you deal with that? Again great video I love helping people with car buying because I hate how dishonest it has become
Short answer: walk out. Always keep in mind that they are not doing you any favors by selling you a vehicle. You're doing them a favor by buying it.
@@dunkone40 True. The pressure is on them. You can walk out and go elsewhere. Just watch them run after you...
Please talk about the desirability of a recent model used car. Does it make economic sense when the bumper to bumper warranty has expired such as on a lease return, given the I've seen fees Auto repair shops are charging these days? My theory is that anything that you're going to save from depreciation is going to be eaten up by fuel pump brakes etc repairs especially on American cars that barely make it to 100,000. Also you might address the idea of buying a used electric car at a low enough price that you can afford to replace the battery.
@CarEdge how about an episode on the COSTCO Pricing etc? and how that compares to other deals out there...
What about all the extra fees? Does the website show the out-the-door cost, out-the-door minus taxes? Or just the quoted price without all the extra fees they tack on?
Zach, when and if will the buying of a new car become somewhat normal, again, please look into the future, and advise me/thank you sir
Zach!!! Wow didn’t know you were in the 410. Love it. Love This channel
You guys are great! Thanks for sharing your knowledge.
probably one of the best pieces of advices
How do you know if they're telling the truth on the invoice price?
Don't be naive. The invoice doesn't show you any factory kickbacks they get. And your probably getting a crappy trade in price. Go jump in a shark tank...it's safer!