Questions to NEVER Answer When Buying a Car | How to Respond When a Car Dealer Says THIS
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- เผยแพร่เมื่อ 30 พ.ย. 2022
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What if we told you that there exists a "cheat sheet" that spells out everything important you need to say to the dealer/F&I manager when buying a car? Ray and Zach go over some of the info on the sheet, and break down why it's important for the process. - บันเทิง
I spoke eloquently like your dad at my local Kia dealer and was asked to leave. Not kidding. The salesman wanted no part of me.
I sold cars for 5 years for Subaru, VW, MINI, and BMW. This guy would be the most obnoxious person in the world to try and sell a car to. I appreciate the approach but literally 99% never talk like this, even the savvy customers. Most managers would exit the customer or just try to close the deal themselves, a salesperson will be rendered useless at this point. I’d handshake turn this guy in a heartbeat, huge pain in the &@? for a nothing loser deal with zero gross.
@@knottstilting It sounds like you're upset when an informed and educated customer arrives and doesn't play your game. Ray's suggestions are not rude or condescending, but empowering someone to take control of their purchase. You're a salesman who's job is to maximize profit off of me; you are not acting in my best interest.
sounds like @knottstilting had a long & successful 5 yr career selling cars 😂😂😂😂
@@maxbiker99 just know in the end the salesperson has your back against the wall because there aren't too many dealers in any given area and also because you're there in need of a new car.
He is totally right. Sure he's annoying to sell to. He's the least likely to get F'd by you. Hilarious. This guy is on point!!!!!!
If you’re going to trade in your car
ALWAYS ask for your car keys back when they’re done looking it over.
You want the power to walk out without a moments delay.
I had this happen with the first car I bought. They refused to give me my keys when I told them I didn’t want their car and kept bullying me. I got up and made a scene in front of several other buyers, threatened to call the police, and told everyone there I was being denied my keys to my property. I had two other women buyers walk out with me. Being a woman buyer, you have to be tough or they’ll run all over you. My latest deal went a whole lot smoother. 😂
Best thing to do is take an UBer/Lyft, or borrow a friends or family vehicle. Never let your potential trade-in get in the way of the first transaction, which is the purchase of the new vehicle.
Bought a $60,000 boat once and was paying w a check , sales guy said " we make 90% of our money on financing "....so I bought him a gift card for dinner for his honesty and politeness
I had a great conversation with a sales manager when I bought a car a couple of years ago. His elementary mistake was to invite me into to his office where behind him on the wall was a white board showing the dealerships sales targets and achievements for the week/month and quarter. I could see from that information that they were well behind their targets for the month and quarter and that they clearly needed to make a sale.So I just kept pushing him not only on the price of the car but also on what extras they would include in the deal. Just before signing the purchase form I then “remembered “ that my wife also wanted a couple of extras on the car and that if he couldn’t include them there and then I would have to go home and consult my wife. He obviously didn’t want me to leave without the sale so he just agreed. Probably one of the best deals I have ever done on a car.
Hi, just a thought -> maybe that "elementary mistake" was a master set up to make you leave that you got a nice offer ;) Dont underestimate people in business, especially if they make a living out of it... My first advice is that you should be ready and have a number in your mind and try to stick to it. My second advice is to try to have a fair estimate of what you are buying before talking about money. The most important thing is the respect your budget, get a safe/reliable car and got back home satisfied. Only my humble opinion - God bless y'all
That was a couple of years ago. Now they're playing hunger games with vehicles and homes.
@@amineben5946 Also, NEVER be afraid to walk out if they won't deal. I've had that problem with a huge new dealership in my city. I wanted my dream car, a VW GTI with a 6 speed manual. They had the one I wanted but they refused to cut a deal or negotiate. I wound up walking out the door.
What's funny is after struggling for an entire week, I wound up buying from a dealer several cities away. They wanted to get the car sold very badly so when I tried to walk, they dropped the price right at MSRP. Then I gently pointed out that it had several add-ons that were NOT on the Internet ad. The salesperson's boss just scratched them off the invoice with his pen! I got to the price I wanted, under MSRP. Just as the salesperson was talking about financing and rates, I was halfway ahead. I took out my checkbook and asked him what the price was with the tax and everything required. We did "close" the sale but I wrote out the amount for half and said that was my down payment. Then asked him what the finance rates would be. He balked and tried to stall but his boss overruled him and took the check. My monthly payment was a teensy bit high at $399 a month but it would be paid off in under 3 years. I guess he was hoping I'd be locked in for 5 years, which would have hit me hard with the interest rate. Makes me wonder how many customers before me paid over half the car's worth as a down payment to offset as much of the financing as possible. As I happily drove the car off the lot, I wondered if he or his boss suspected I already had most of the cash and could have put down a lot more on the down payment.
Salesman: "Everybody has a budget."
Me: "Everybody has an out-the-door price."
my budget is $10 a month
Yes, it's + TTL
An out-the-door price is a budget. So what's your budget?
Spot on about the "What's your monthly Budget?" question. Also, one of, if not the Biggest Profit Makers for the Dealership is that "Extended Warranty" crap. The "Finance Officer" will push that and push that.
The last vehicle I bought, I finally told the Salesman that my "Out The Door" Price was $45,000.00 for a vehicle with the Options and in the color I wanted. He came back and said "We found you this one for $48,950.00". I told him "I don't know where you come from but where I'm from, $48,950.00 DOESN'T sound like $45,000.00! Not to mention it's not the color I want and doesn't have the Options I want".
My "Problem" is I usually take my Wife with me and she's willing to take anything. I've told her over and over, "If it's not the vehicle you want, the color you want, and at the Price you want....then STAND UP AND WALK AWAY!". With the last vehicle, I got Fed up with the Dealership's games, walked out, and got in the car to leave. Our Friends had carried us over there and were SHOCKED when I walked out, they said they'd never seen anyone do that before, LOL!. The Salesman came out and tried to get me to come back in (yes, my Wife had stayed inside as if She owed it to him and couldn't leave) and I told him that wasn't gonna happen and as Far as I was concerned, I'd never buy another Vehicle from them. My Wife finally came out and We left. The Salesman ended up dealing with my Wife and after about a Month, he found a Vehicle pretty much like we wanted to start with.
Always Remember, wherever you go, that's not the only Dealership that sells Vehicles. DON'T BE AFRAID TO WALK OUT THE DOOR!
I had the exact situation. My wife barely moved too. I told I'm leaving her there she'll walk home. So, we got chid in car started driving away and they RAN after us gave us the deal at 8k LESS. The WHOLE day I played over and over the song the Gambler by Kenny Rogers.
Lol women
I’m currently sitting at a Toyota dealership in Northern Ca. They sent out a total of 5 salesmen to try and make a deal. They had a $15,000 dealer markup on a 2023 sequoia and were pi$$ed when I told them that none of the other Toyota dealerships within 100 miles had that high of a markup. We ended up getting one for $1000 under MSRP plus taxes/fees. What sealed the deal is that we told them our highest price. They said no, we got in our car and started driving away and the dude literally came running outside and said ok, we have a deal.
bullcrap
This sounds like Roseville Toyota.
I’ve done things like that. You’ll be surprised what they’ll do to make a sale. @@O-oo3uu
I admire this father/son relationship.
BFF for life.
Foreal. Goals af.
Come on... We all know they are Paul Teutul Sr. & Jr. behind the scenes. For sure chairs are flying across the office when cams are down.
lol j/k
my thoughts exactly so sweet
It's so cool to see the father/son relationship that they have. Not only that, but their advice is top notch.
Last 3 cars I've bought I havent set foot on the lot until I was ready to sign for the car. Everything done over email or the phone from home. Takes the whole negotiation out of their element and puts it into mine. Time isn't a factor, there's not "I need to talk to my manager" stuff, and I can be talking to 3 or 4 dealerships at the same time. It's just a much more pleasant experience.
I really appreciate your method, as it makes the most sense to me too.
How do you test drive or do you
I used the term "out the door cost" the other day, and the salesman laughed and shook his head. The game has changed boys and girls. 😂
@@user-vg1kz7yd2v Not really. If a salesman laughs at a customer, they should just walk out and go to the next dealer. The game hasn't changed, the salesman just lost a sale.
I've dealt with dealerships that immediately told me they would be unable to work with me when talking out the door price instead of payments. Those dealerships will never get me back as a customer. I also make sure to tell everyone I know to avoid them as well. I've dealt with dealerships that have zero problems negotiating the OTD price. These are the ones I will buy vehicles from and recommend to my friends and family.
In 45 years of buying cars, no one has EVER made one cent from me on the back end of a deal.....and never will.
I haven’t had to buy a car in a while and I’m worried I’ll go in, start by saying I want to know a breakdown of the OTD price, and just be told “sorry, we don’t discuss OTD price, we only talk monthly payments.”
What do I even say to that?
You say "Have a nice day" and go somewhere else.@@Alex-nh7cl
@@Alex-nh7cl”Okay,” and walk away without looking back. 😆
There certainly will be other dealers willing to negotiate.
@@Alex-nh7cl Seriously? You walk out bro. If they don't want to discuss the price, then they apparently don't want a sale.
Just today!
Dealer is selling a 2020 Santa Fe that is burning up in that dealership for the last 3 months. Tells me is 22k (advertised). I asked for the OTD price and it climbed to 28k. Been laughing for 1 hour straight!
😂🤣
What a scam. Now we know why a government agency has to step in to regulate these crooks.
i would do anything to have a father let alone a father like that you are truly blessed
Such a beat down to buy a car.
Great video! My dad sold cars for 30+ years and when he retired, his one piece of advice to me was to never pay extra for a processing fee. Demand the salesperson to work it into the total price or walk away. I've walked away twice out of 3 purchases.
You’re dad was spot on my dad retired from GM as manager of the dealer organization and told me the exact same thing he said it’s a bunch of BS
How would you know if you are being charged more it?
@@urneighbortotoro1580if I had to fancy a guess, you would have to request some kind of breakdown of the total out the door cost.
Pay "extra" for a processing fee or pay a processing fee?
When I bought my last new car in August 2019 - A KIA Optima EX with all of the features - my dealer quoted me an OTD price over the phone before I even walked in the door. I had called around to four different dealers and told each of them that I would not step foot on the lot unless they gave me an OTD price. Three dealers balked and the one the did not is where I went. When I got there I reconfirmed this was after all of the dealer features they added, extended warranties, dealer fees, license fees, taxes, etc. They did not have the color I wanted on the lot, but got it for me at no additional cost from another dealer. When it came time to the finance I knew I had the upper hand and when all was said and done paid cash. It was so satisfying walking in without being held hostage as I was not trading in my existing car.
Looking at new vehicles recently taught me one thing:. Go in with a printout of vehicles, options and price in mind and let them dance to meet it. Otherwise it's just bewildering if you don't.
An easy customer, yes please.
And by easy I mean that you already know all you want, I just need to bring it up to my director and we'll very rapidly have a yes or no and a signed deal
I've bought every car I've ever owned using a technique very similar to this. Anyone posting that they were asked to leave was either rude, or is really a dealer. First, it takes 3 trips, at least, to buy a car. Trip one, you're looking at cars, and you're not talking about money. At all. You're just test driving or looking at options. "I'm just looking around today, not talking about money". Trip two, you're shopping around for a price. Not finance, not trade, exactly as he says, but specifically that you're just looking for a price for the car, and you're not buying today. That you don't make big purchases like a car in one trip. They will pressure you to make a deal, and just give you one day prices, etc. But they'll give you a price. Then shop that price to places you don't want to buy it from. "I got a price of X for a X car, can you beat that price?" If it's a good price, some places won't match it. Then, finally, go where you want and buy the car. Finance it from your bank. Never from the dealer. Donate or sell your trade separately, unless you owe money on your car. If you owe money on your car? Keep driving it, you don't need to buy a car yet.
What I enjoy most is the love demonstrated between father and son on this channel. Hands down above and beyond the good instruction that is offered.
I love how they interact with each other,and the advice is priceless!!
This is why I only buy low mileage used cars from private parties. Private sellers aren’t usually savvy enough to rip you off and they’ve already taken the largest depreciation hit.
smart!
Nahhh private sellers are better because of their honesty.
When they ask you if you plan to trade your current vehicle in, and you wisely dodge the question, id also advise to be sure to not let them take your keys “to do a quick evaluation to speed things long just in case you decide to trade in ” and thus hold your vehicle hostage so that you can’t bail out the door when you want
2 things) some dealers will do this trick and it's the dumbest trick I've ever seen. 2) I do need to drive the trade to make sure there aren't issues for a quick trade in
"If I decide to buy your car at a reasonable price, I may consider letting you have this old car as my trade-in, added into the deposit amount, so we don't need to consider it until AFTER my deal is accepted by you and me both." THEY think they will definitely get a sale, and I am NOT considering them taking it because I might want to give it to a family member in need. SO I might add it in later, but do not give them the REAL KEYS.
used to be a dealer in Washington State that would hold the keys for hours until you signed the contract until several buyers called the police and newspaper charging the owners with Grand theft auto.
These are some very good to know tips. I think I lucked out on the salesman I spoke with for my new vehicle. They told me straight up when I ordered it, do not do any add ons. It's cheaper to wait till your vehicle is here from the factory and then decide if you want us, or someone else to do the add ons for your vehicle. Even told me that most of the time getting add ons to the vehicle from the dealership is almost double the cost of buying them elsewhere.
I bought a used car under their cost by using the otd price . The salesman balked at my offer and I got up and said I really dont need the car and then he said he would present it to the mgr and the mgr unbelievably approved it. I knew I had the edge because I saw their stat board on the wall and it was the end of the month and short 3 sales from their quota. The salesman later confirmed this and said my timing was perfect. That mgr wouldn't have got his bonus with out a few more sales. It was the last day of the month in Jan.
They used one term that will let the FM know you are very knowledgeable about financing that term being "Base Points" the term is used widely in banking and finance industries. There are 100 bp per 1% interest rate so 50bp is 1/2% interest
So in the video where they talk of the dealer rate needing to be at least a 1/4% lower than the pre-approved credit union rate.... that could also be said as the dealer rate would have to be at least 25 basis points lower than the pre-approved rate of....
It’s “basis points” not “base points.”
True. Spell check strikes again and I didn’t catch it. Sorry
If you really want to scare them use the term "Bips" which is commonly used in banking as short for Basis points.
My late Dad sold cars for years. He said to offer up the trade in and then reverse it and ask for the new car price without the trade to see what they are really offering without the tricks and BS.
You guys are great! Last month had to buy a car. Went to toyota with pre-approved loan, per your recommendation. They offered 0.1% less. I said no. They came off msrp! This was for a corolla, there were only 2 on the lot.
I’ve been in sales for 6 years and I still used your guide as a resource when I bought my car this week. Loved it!
Same! I run a sales business (brick and mortar) and use his advice for things outside of the car market.
Girl for real? What car did you get?
Did they respond well when you asked for the out the door price?
You single?
Dealer: I'll also need you to sign away your first born
Buyer: Only if you include the paint protection package.
I used to work in the Indirect Lending department (the department that handles loans that goes through dealers) and we did business in over 40 states. I knew how much dealers were allowed to mark up the extras (extended warranty, gap insurance and everything else) as well as the fact they didn't have to give you the lowest rate you qualified for and could actually increase the rate since they were paid a portion of the interest for sending us the loan (yes this is legal). When I went to buy my last car I told them where I worked and what I did and knew the process, rates and costs of everything. Since the vehicle had been on their lot for a while and I had been watching it for over a month I knew they wanted to sell it asap. After checking the vehicle over and such I spoke with the salesman and got the vehicle price set before anything else. After that they offered me a rate that was pretty low, well within what I expected. After that was settled it was off to the finance manager who tried to offer me all the extras at the typical steep markup which I turned down.
Thanks for a great video. It made me realize that car loans or leases are a big portion of the dealerships business. I had thought it was about selling cars, but looks like selling loans is more profitable.
New cars are not profitable, but used cars tend to be. It's no different than Best Buy selling a computer or a Playstation 5. They make zero off of the actual car (unless a sucker pays above MSRP), but the financing and product menu the finance manager puts in your face is their profit.
I love y'all's channel and the advice you give. The great thing is it agrees with the advice that Consumer Reports has been giving their subscribers for decades.
Bought a 2020 Toyota Tacoma 1 month ago for a great price because of this channel. Funniest part of the whole process was when I talked to the finance manager. He pulled out a menu and I said “oh the menu” he then asked how I knew what a menu was and I said “doesn’t matter 🤷🏽♂️” I declined all the extra stuff on the menu and the finance guys voice got shaky and you could tell he was PISSED!
Ha ha ha ...... good move. Made the finance guy sweat!
That’s a damn good resource. I’ll be sharing with my parents who aren’t as much of negotiators. Thank you Ray n Zach
First of all, Thank you. The work you do in educating the consumer is a treasure. I have used your resources to purchase four cars over the last year with various family members and with each negotiation I have been able to streamline the process. I follow the OTD advice up to the time I go sit with the F/I person. I get pre-approval from my CU and I do listen to the "offerings" . I have found that the buy-rate is less of a concern since I bring my own financing. We recently purchased a CX-50 with CU financing and the finance person didn't even bother to push the extras. He just said "I don't need to ask if you want any of these extras since you came prepared with your own financing, right?"
Great practical examples! Cool relationship with your pa, it's awesome he gets to help so many people. My dad taught me how to buy cars, but not this thoroughly :)
Wow! I've held off buying & came across you guys. Definitely welcome all the information specifically cuz I've always felt Car Salesmen think a woman coming into dealership w/o husband, BF or brother is easy money (profit). Your videos ensure I'll be well informed & ready to negotiate confidently.
Agreed. Still nervous but this gives me some confidence.
This was wholesome. I'm glad I found this channel. Thank you guys for all the great info.
I’m not even in the market for a car and I can’t stop watching these videos. You guys are amazing
This works great in a buyers market... however, last couple years dealers could go "we got 5 people lined up for this same car, go pound sand." Even with an 820 credit score, I was basically told take it or leave it.
Now cars are starting to roll in more to be more of an even market or even a buyers market, so these might work again.
This!!! I don’t know how many times I’ve been told basically exactly this even with money down
with that many people lined up they would raise their prices surely
@@jointgib many dealerships did have crazy mark ups for cars. Subaru decided to say "no we are sticking with MSRP" but many others marked cars up by like 5-10 grand and some marked them up like 20-30k for trucks.
@@jointgib I've known two people within the last 3 months that pre-ordered a car, and after waiting 3 and 6 months, they were told "Your vehicle is ready for pickup, but the market has changed and there's a market adjustment" one was $5,000 and one was $10,000. When they said, "Not paying that" the dealer said "If you don't pay the market adjustment, we'll have to take your order to the next in line" and both of them declined. One was an f150-lightning and I can't remember the other. Both dealers took the car to the next in line.
Dealers hate people with high credit scores bc the financing is much less lucrative.
It’s needing to use tactics like this to get a fair price that make me hate buying cars. But I am planning to replace my 2009 with 185,000 miles on it in the next few months and I so dread the experience. It almost makes me want to just keep driving my old car.
If what you have is reliable, keep it. What do you have, now? It might be capable of another 100,000 miles!
@@EMichaelBall it’s a Toyota Venza with the 3.5 V6. And I am keeping it sort of. I’m giving it to my daughter. I want an off road worthy 4 wheel drive.
@@dangreen2824 I always buy private party now because I've only had bad experiences with dealers.
@@dangreen2824 2010 Honda Civic here. Creeping up on 270k miles. You've got a few more years in that baby.
I'm planning to buy in fall when the used cars pile up again.
WOW completely flabbergasted; I wish I had seen your channel years ago. I'm planning on buying a car this summer and this video has been saved. Thanks guys, really awesome
Thank you for a great informational video. I would like to add a short story from my end of what we encountered at one of the VW dealerships when we were buying our VW Atlas. Before I begin I would like to say that this dealership being very busy in sales traffic was using some of the sleasiest tactics I've ever encountered. We first negotiated "out-the-door" price and current financing APR with a sales rep via email. When we came over they did two things: First, they raised the APR by 1% and when I showed them printed email stating that is not what we've been told, they said this person no longer works here and this is what they have now... Not a good start at all... Then when I mentioned that we have a preapproval from a credit union they came up with a second thing: They said that the OTD price given to us over email is valid ONLY if we go with their financing. If we use ours, the OTD price goes up by 2-3 grand! But they immediately followed by the statement that we can refinance to bring the APR down. We bought the vehicle in 2018 and they originally quoted us 5.4% over email and raised it to 6.4% in the dealership! They said that we can refinance after 3 months. That is NOT TRUE! You can refinance from day 1 after the purchase. The reason they said it (and unfortunately due to my ignorance I took it as a fact) is because the bank gives them their cut only if the client stays on the loan at least 3 months. Otherwise they get nothing! We ended up getting the vehicle refinanced and dropped the APR to 3.4% Then came the talk of the trade-in vehicle. We had an older VW Jetta that we checked (and printed it too) had a Kelly Blue Book value of $1200 at the time. They offered us $300! After long negotiations they raised it to $700 and said it was their final offer. To sweeten the deal they said they can throw in a couple of free tickets to some show nearby. What we later found out is that it was two tickets to the TimeShare presentation where they will use the worst sales tactics on you to make you buy some real-estate... We decided to leave and check how much we would get at CARMAX. CARMAX gave us $1200 right away! The moral here is ALWAYS check CARMAX and have a quote on hand BEFORE you step foot in the dealership. With all that said, this would be a dealership NOT to use to buy our vehicle but unfortunately our Jetta was breaking down and we needed a new vehicle quick and there was a big shortage of Atlases with the right color my wife wanted. Please learn from our experience and prepare accordingly. For the hosts of the show I would like to ask how do you deal when they say you have to go with their financing or they raise the price (besides just walking out the door)? Thank you!
This is gold. I love the editing on these videos. I think it's going to be a new catch phrasw," I'm just interested in the out the door price." It's going to become the new "I stayed at a Holiday inn Express last night."
Like you two, my Dad used to be in the car business. He had a pretty good handle on how to buy a car. He taught me what I could do to insure I'm getting a good deal when buying a car. This video echos what he taught me and gave me some new tips as well. Well done! Thank you for sharing this info.
My buddy is in the process of shopping for a used car. Love you guys!!! So good, thanks and I am funnelling all this info back to him!
what a nice connection between you andyour dad! keep helping out people - God bless ;)
I very rarely press the like button on videos. I pressed it on this one. I’ve watched lots of your videos and feel this one shows what I wanted to see as far as how to respond in certain situations with car salespersons and finance people. I’m learning from your channel, thanks. BTW I’m in the market for a 2023 tundra and only have two dealerships on the island of Hawaii where I live. When I do set out on my journey/mission I feel it’s not going to be easy with just two Toyota dealerships to work with. Thanks again for the work you put into this channel!
Love your channel guys. SO much useful information on a regular basis... and you're a great one-two punch as a father and son team. Thanks to both of you!
I love hearing a Car Sale manager or person saying "Cash is king", Yes it is. But never tell the dealership you are paying cash, that will sink any changes of getting a deal.
I’ve been watching a ton of videos; and this one is by far the best. Keep up the good work gentlemen 😉
We bought a car very recently in the last 2 months. The most interesting part about the financing was that the financing officer would not even give us the interest rate that we were qualified for until he went over all the extra coverages he was trying to sell including gap insurance, etc. I thought that was pretty bogus that he wouldn't even give us the interest rate until he went over the sales crap that he was trying to sell us as extras.
that is really dishonest and must be stopped.
@@digduck9463 He had a backward answer it was gonna save us(him) time if we went through those options 1st. COMPLETE BS
I would never walk in that dealership again. There should be a full disclosure walking through the process.
@@glenshepard6960 They had a full disclosure on everything, it's just the "order" that they gave us the information and was terrible
Possibly a new person handling your business. Each dealership is somewhat the same but there are exceptions
When I financed a car recently, the salesperson offered me all the "pre-paid maintenance" packages, just as you said with a menu. When I asked what the monthly payment was, he provided a number. I declined all the add-ons, and my payment was higher than he'd said it was. I was glad I'd declined whatever add-ons he was pushing. It just felt slimy to me. I will ABSOLUTELY use these tips the next time I'm in the market. THANK YOU for sharing such great insight.
I also had financing through my credit union with a given rate. They did the math, figured the total price, and lowered the price of the car to meet the same total money to me. The "rate" was higher, but the cost to me, in the end, was the same.
@@natecrombie ah, but if you paid more in principal, you could end up paying less, because it’s a lower principal amount. You just have to be sure to indicate that the extra is additional principal, not interest.
Love these guys! Thanks for the advice !
Last car I bought a car I had loan arranged before shopping. Could tell salesman not happy. I wouldn't tell him how much my loan was for until we settled on price. We bought low mileage used and decided not to spend what we were approved since we found what we wanted for less. Pushed us for all kinds of crap. My husband is very lay back and calm stood up, said forget the car, well their attitude changed fast. Drove away in our new car. Also I researched the two makes of cars we like first decided on reliability etc before going to dealer.
These are great points, but in reality when you show up at a car lot with 10% of the normal inventory... it puts the power back into the hands of the dealer. They will tell you the mark up over MSRP, and they will tell you the vehicle you are looking at will be sold before the end of the next weekend. And they are right! When inventories go back to "normal", these are great tactics to get a better deal on your vehicle.
Sadly accurate, I had my wife calling dealerships while I was working, easy instructions. Get their "on road" cost and then call the next dealership and see what they will offer, play them against each other. not one of them budged, they can't get inventory fast enough to fill their car yards. Instead I advised her to ask about extras, we got free weather shields so there's that at least.
Then don't buy. It's not worth paying extra into this market.
but what if you need a car? The used market is pumped up too… not a lot of great options at the moment
This was true. Used car prices are already coming down and inventories are piling up. No one is going to be buying new soon because they are too underwater on a car they bought in the last few years already. Dealers knew this would happen and are seeing the writing on the wall. It is already obvious that inventory is sitting on lots MUCH longer. All the forecasts for inventories are starting to show large overages in many brands.
In all the years I was in auto sales/management and working as a trainer I never comprehended just how woefully unprepared and uninformed folks were who came shopping for a car. Although, thanks to many information resources available to them ( including you guys.
..nice work, by the way ) they had no excuse for being low-hanging fruit. If they had taken a few hours to learn how dealers were always in search of additional profit centers, let alone the value of their trade in or a fair market price for the vehicle they were looking at, they could take charge of the deal.
How could any person of average intelligence not take one look at the presentation of the infamous 4 square close worksheet and not immediately grasp that was all just smoke and mirrors.
I can sincerely say that I never presented that close, and yet was always at or near the top of the sales board. Every month. For 20+ years. I'm not bragging...but I figured that, seeing how most prospects would rather visit a proctologist than chit chat with a salesman, simply being straight with folks just bowled them over.
Any industry that requires a customer to get a PhD in negotiations in order to not be violated is an industry that needs more regulations and oversight. I don't know what a 4 square close is and I don't want to know. But you're saying I need to know - so the four square close should be made illegal.
The 4 square close is a method for focusing on the " most important " factor on the prospects mind: price of car being sold, value of trade in, monthly payment, or down payment. It's not illegal, but its widespread use bespeaks the belief that prospects are fools who are easily distracted. Anyone could see that, just like any other purchase of anything already includes the math that leads to any quantity in the equation.
It is usually started by the salesperson, who makes a big cross on a piece of paper, and tries (sometimes for a long time....) to get the prospect to pick which ONE thing they are focused on.
Top tip: at the moment the piece of paper appears, start thinking hard about your next move....mine would be out the door.
A real horrible ordeal to sit through...
You guys are the best!!! there is no other that come close as I surf TH-cam or google. Love you guys!
I've always arranged my financing before going to a dealership to buy a new car. I already know what the car or truck I'm buying is worth and selling for in my region, so I already know the price I'm willing to pay. If I'm trading, I already know the value of my trade-in before I set foot on the dealership lot. I will also get up and leave any dealership if I'm not getting the deal I want. There are plenty of dealerships that will deal with you and there are lots and lots of the same cars and trucks for sale all the time, so never think you have to pay more than you are willing to because they are going to sell the last car or truck like that in the world.
OMG, the dealer responses in this thread are 100% the reason I will avoid stepping foot inside a dealership if at all possible. It's like they are cartoon villain versions of themselves and they have no idea that they are.
Auto dealers are just twisted in the head and have 0 self awareness. I just bought a brand new car a week ago, and had a super bad experience with the dealer.
They live in an alternate reality where they dont need to confront what parasites they are, and how much they are despised for their smug demeanor. My salesperson had a serious frat hire aura to him.
@@TheUltimateEel I'm sorry you had to deal with douchey car-bros, but congrats on getting through the process and getting a new car!
I recently needed to buy a used car. Bought a Honda from a Honda dealer. I literally found it that day and walked in to buy it, no preapprovals and no cash. The price I haggled was nice for what it was. I tried to ask if I could now arrange for financing, and they said "we can't accept outside financing". I think that's totally bogus. But I needed the car. So I bought it at ridiculous apr. Mileage was just too high for most banks to want to approve (I was getting declined letters for several weeks after the transaction - they tried MANY banks). Anywho, I got a loan against my 401k at lower % (which I am paying to myself, of course) and repaid the auto loan. The car was worth it in my circumstances. Oh, and I knew all these tricks despite never working at dealerships :) They just don't always work. Best advice is to not be too desperate for the vehicle, to be patient and willing to wait (willing to walk away). Make them earn YOUR business. Cars aren't moving and dealers are getting more and more desperate.
My approach when buying a new or used car from a dealership is simple. I don't intend to trade anything in. I don't care about interest rates, incentives, or anything like that. I want to know only three things -- how much down, how much a month, for how many months? Those three things determine how much of my money is going to go for buying this car. Price of the car doesn't matter. Finance rate doesn't matter. Trade-in allowance doesn't matter. How much down? How much a month? How many months? Once they commit to those three numbers, I don't allow any changes. Not a penny more a month. No balloon payment at the end. Nothing. Period. They change, I walk. The other thing I tell them up front is I'm going to compare the numbers they give me to what I can get from other dealers in the area for the same or similar car, including other makes. They have one opportunity to get my business. Only one. Sure, it's a struggle getting them to commit, but like they say here, I just keep going back to what I'm asking for -- how much down, how much a month, for how many months? That approach has worked well for me for more years than I care to mention.
My best results have come from asking if we can do things in order...
First I need to decide if I want the vehicle. And I don't want to be interrupted while making that decision. Next, I have to decide if I want to pay the asking price. And I don't want be interrupted making THAT decision. Then, and only then does it become not a waste of thought and time for me to decide how much per month I want to pay... which inevitably is all of it after the appropriate paperwork is signed.
But they don't need to know that before I even know if I want their vehicle at their price. They don't need to know anything in front of it's place in time, and you only surrender negotiation power by giving them info.
"How much are you looking to pay per month?"
"How could I possibly know that before knowing if I even want the car?"
"So you like the car... how much you looking to pay per month?"
"Well, I do like the car, but that doesn't mean I want this one because I don't know what you're selling it for..."
It doesn't very long to figure out that car salesman aren't trained to sell cars; they are trained to dominate potential customers by completely derailing the process of selling.
It's up to the customer as to whether that domination is allowed to happen or not. If you don't let it happen, sooner or later you will come across an actual salesman, someone who actually knows how to sell a car. And you can do real business with them.
Prior to that, you might run across a few guys who will blame you for wasting their time... while it was them insisting on dominating the entire transaction. You didn't waste their time; they insisted on wasting their own time. Not your fault it worked out that way... and absolutely don't pay those types for it! You'll only encourage future bad behavior. Give your money to the actually skilled salesperson, not to the one who saw you first and tried to run you over.
Thanks for the advice! I will bring the cheat sheets into the dealer. My memory is shot...🤣
Alot.of dealers stuck in the past with short supply over inflated prices ..now lots are filled and they are locked in sucking as much from customers ..went to one dealer a week ago ..filled to max lot ..care was 44k then dropped to 41k ..I offered 39k they declined ..but before we even talked same old trick they said ..we just had someone inquired on this car but we aren't trying to push u into a sale ..lol..I left without car ..car still sitting on lot lol
their loss and they are waiting for a sucker to buy at that price
Yup, there was a car I inquired about a year ago, still for sale at the dealer.....
serves them right
The recent video makes me laugh. Jeep/Chrysler/RAM is finally reaping what they sow with their awful dealers. New 2022 vehicles are still sitting some of these lots rotting away because they got too greedy after the pandemic shortages, and now hopefully many of the dealers will go out of business.
GREAT VIDEO! RIGHT TO THE POINT.....KNOWING WHAT TO SAY TO A CAR SALESMEN....😊😊
You guys are awesome! Love this type of content.❤
Great video and information. I recently had to take my 2010 Suburban into the Chevy dealer to have the airbag recall completed. I was amazed on how well I was treated and the recall quickly resolved. I usually perform my own routine maintenance and rely on a long trusted local shop to do my other repairs. Have times changed where dealers are becoming more customer friendly? I'm in the market for a new tow vehicle and I appreciate YAA's educational videos!
I also own a 2010 and have worked with the dealership service team for repairs. They are a lot nicer now than the early 2000s. Many times, labor is a bit cheaper than what my quotes are at the independent mechanic, I think either cause they know they have to be competitive or they are more efficient at getting the job done.
At this point they'll butter both of us up hoping we will visit them first when we decide its time for a new vehicle. I'm all for it! Yes, sweep me off my feet - you're going to lose all that equity when I'm willing to buy again.
Why would you tell the finance manager you'll finance with him if he can beat your financing by .25%?? Why not just tell him his offer has to beat yours.
I love y’all’s videos very informative.
I've been enjoying binge watching you're channel. Great fun...
I am so happy I found your channel. I have a Mach E I ordered arriving soon. My first big girl car purchase. My parents purchased my current car for college. I have to do this alone as I live across country. So nervous but I’ve been watching to build up my confidence for the big day. Thank you!
Your FIRST mistake is buying a MachE
Congrats on the Mach E. It's an awesome car.
Update please? :)
I love you guys! Amazing info. I have to go through the buying process soon :(
Thanks, great information! Almost like seeing the cards before they are dealt
Thank you for your insights. You have taught me well. I’ve been missing out on for many years it’s much appreciated!!
YAA is awesome and I love the father son team. What’s your opinion of Credit Union brokered deals via their pre-arranged pricing and finance terms. Basically, arriving at the terms, conditions, and price before showing up to the dealership and just picking up the new car?
This is the answer I need!
Would like to see a video on ordering a vehicle. With some vehicles being short in supply, having one ordered may be only option.
If you are pre-ordering, it is more challenging to cut a deal, since the car isn't on the lot, so it isn't costing them money. Might be beneficial to have a good downpayment and entertain their financing to entice them go below msrp.
These pointers are so awesome
You guys a awesome, I'll tell everyone I know thats buying a car about yall. Gives buyers confidence when buying a car
Love watching your videos, hope this helps some car buyers, but any half way savvy cat buyer already knows these things.
He’s helping young people, first-time car-buyers without their fathers and such.
Everybody starts out not being a savvy car buyer.
Good advice. If you're paying cash, there's no other option than to negotiate the final (OTD) price. A bank check, whether from your cash account or a loan from your bank, is the same to the dealer. So that's how I always play it. And I always just order the car from the factory to my specs, not buy off the lot. If I'm paying 40k+, I want exactly what I want. I don't mind waiting a few months. I would hate to be in the position of needing a car right away (e.g., current car is unusable), though.
Some people will advise you to not even discuss cash or outside financing at the dealer. They would advise you to take the loan at the dealer, wait like 1 or 2 payments, then pay it off using your outside financing or your cash. I ran into a situation buying my 2023 Nissan a couple of months ago, where the F&I guy refused to allow me to buy the car unless I used his financing. Since the car I was getting was the only one within driving distance of my house, I reluctantly agreed to finance with the dealer. In hindsight, If I didn't need to replace my total loss car, I would have done more research.
Don't tell them you are paying cash until all other details are worked out. Dealerships hate all cash deals because they make less so if they know upfront, they will not budge.
A certified check or a loan is NOT the same to a dealership, not at all.
@@nobodyimportant7804 In my case, for the Nissan I bought, the sales lady would not tell me the OTD price till I told her whether I wanted to pay cash or finance. I Hinted at down payment and she required a number prior to the OTD price was discussed. The reason why dealers don't want cash is 2 fold. 1st is that dealers get to keep a % back from the loan for writing the loan. 2nd is that dealers don't like to deal with taxes, fees, and regulations associated with handling over a certain amount of cash either in 1 day or in 1 transaction (or both).
@@matthewjbauer1990 1. Never buy a Nissan
2. You should have walked away.
3. Waiting a few months to pay off a loan costs interest and defeats the purpose of paying cash.
4. My last car deal was settled with a cashiers check, an ethical dealership will have no problem with it. Never buy from unethical dealerships. My old car kept breaking down, but I still waited months and ended up driving 170 miles to find an ethical Toyota dealership.
Never be afraid to walk and never return to that dealership.
@@nobodyimportant7804 Yes, I should have walked away. But, since I totaled my car (not my fault) and was in a rush to get a car, I didn't have time to order a car or go window shopping. I did my research and knew that as long as the OTD price on the loan was at the KBB/Edmunds/NADA, Auto Trader price, then I was good. I was within the OTD price range (including TTL) for what my car usually sells for (including sale prices) so I think I didn't get hammered too hard. I agreed to take the loan since I was paying flat MSRP no market adjustment fee and I got a free Cerakote, I'm getting 3 free synthetic oil changes, I got that free Pulse break light, and my car was registered in a VIN registry for free as well. I also got the premium floor mats included at no charge. They were going to charge me like $400 for the parcel shelf I had that removed.
Not loking for a car. But this vid was informative and I enjoyed the obvious love between father and son. It brought back a great memory I had with my dad. Thanks for that. Be well.
I need to take one of you guys with I’m planning to buy a new car and as a retired senior I’m terribly afraid I’m gonna be taken advantage of I have bought several cars before and I never thought about the out the door price simply because I wasn’t on budget I enjoyed your videos very much and I can’t remember everything you said thank you
When I’m asked what I want my monthly budget is , I tell them $0. I only care about the price not the monthly payment
Had a salesman suggest a ridiculous trade in amount for my trade and claiming my vehicle was going to "auction". My keys were right there on his desk and I grabbed them and said I guess we're not going to come to a deal here. He quickly changed his tone and gave me a fair trade amount. A week later I saw my vehicle on their used car inventory on line with a sales price nearly the same that I paid only about 5 years earlier.
I went to a dealer couple weeks ago and looked at a vehicle. I reluctantly let him appraise my 20 mustang GT premium for a trade in. My car was valued at 42K and trade in value was at 38k and he came back at me with 30k. I snatched my key and left. My car is in brand new condition and only had 15k miles on it for being over 2 years old.
@@BluRadoZ71 aren't almost all cars worth half the value after 5 years so in a few more years it will be $21k for trade the offer sounds about right. What was the new price. If trade is £38k why on earth is he offering $30k trade is already bad enough. Don't they usually just show you the Kelly blue book anyway the trade in is never a secret.
@@chrishart8548 no. My car was only 2 years old. Bluebook value was over 42k for my car and condition. Trade in value was around 38-39k. Offering 30k for my car was an insult. Sticker price brand new was 50ish k.
@@BluRadoZ71 that's taking the piss then. Just walking away is the best idea.
I am just very blunt and straight forward the 1st question I ask is what's your best OTD price on this vehicle and I guess I've been lucky I usually get that and then I can begin negotiations if I don't like the otd price
Giving a salesman your monthly budget does not have to be a bad thing it just gets the ball rolling in a cordial manner. What I am after is how much is that car going to cost me in 4 years after making my monthly payments and upkeep verses its resale. You want those 2 numbers to be as close to each other as possible! What do I care what I tell them? I just want those end numbers. Add-on, high interest rates will make those numbers spread way apart. The further apart the worse the deal!
Would having a HELOC be the same as a pre-approval when negotiating financing?
Also, in NJ, there's no penalty to pay off a loan early . . . so can one "bait" a dealer with the intention/willingness to take on some ridiculous loan (as long as OTDoor price is good) . . . and then pay off the balance in the first month?
Good one - like the practical domo. I however believe in Marko encouragement to pay for cash if you can but don't say until the very end and NOT before.
Nice video, and I understand most buy cars they can't afford and finance/lease w monthly payments, HOWEVER, one should not buy a car they can't afford and should have saved to pay cash for it.
Great show this info should help some shoppers, i noticed @2:09 -Out the door price -(after discounts) Big Caution --- this can result in the dealership applying discounts that you may not qualify for once you decide not to trade or finance which results in the otd they gave you raising by the amount of the discounts , this is how shaddy dealerships trick you into the dealership with a bait otd quote especially IF you did not mention you are paying cash/check and not trading- the perfect timing to tell them you are paying cash and not trading is when you have not invested anytime on them yet --
Any hitch in the negotiating process that you’re uncomfortable with, use the same shoes that you wore into the finance office to walk right out.
This is the reason I purchased my last two vehicles through a broker. He negotiated through fleet managers on price (below MSRP), found both on a ship in the Pacific, put my name on both, completed ALL paperwork, delivered them to me. My wife just sold the '98 Camry and I'm still driving the '02 4Runner. I'd rather have another root canal.
I had my credit union representative recommend a broker. First time I ever heard of this. May I ask how much a service like this costs? I am super interested.
Another great video and advice
Excellent info! 😀
This is where i panic at a dealership. Salesmen comes at you starts asking a hundred questions. I'm not good with words
Totally understandable .. I'd recommend practicing with a friend/family member or asking one to accompany you with the process. Sad how some dealers try and intimidate you .. because buying a vehicle should be fun! Also, if nothing else, go in there with ' I'll just focus on the OTD price ' and be ready to walk at any point! Never go in to a car dealership with the ' I'm buying a car TODAY ' attitude.. at least that's what has worked for me! If you don't know the answer to a question or get caught off guard, answer generically ' I haven't thought about that yet.. ' and then re-direct the conversation to another question like .. the OTD price or heck ask about a certain feature ( even if you know it's there.. this bid you time to think about the previous question that had you stumped) .. I ask silly questions and while the salesman is answering them, I'm formulating the next one in my mind all while contemplating what my real strategy / approach should be with this conversation.. Takes practice and at anytime you feel pressured.. make an excuse and walk out .. ' I need to back at work but let me think some more about this .. ' or something.. Hope that helps!! Sorry for the long rant lol
There is one simple word you should lean to use…… “No”
They practice their speech with every customer. You walk in every few years needing a car. There are dealers out there that will treat you decently. If it doesn't sound right or they are pushy the dealer will take all he can from you. Stay in control of the situation. I've alot of vehicles in my 74 years more vehicles than years old. I treat them the way they treat me. Always bought at holdback plus incentives until lately. Those days will come back. Soon
today i will be going into my local honda dealership. i've already set an appointment with a salesman and he even was willing to give me an OTD price over the phone, everything included except our county tax. i checked his reviews online and his reviews were top notch. i will be going in holding everything close to my chest and see how he treats me. hoping for a somewhat smooth sailing but not expecting it, just in case. will update here when i am back home!
You didn't update :(
@@bobjabri7503 he treated me fairly well, didn't push me to purchase or anything. he was pretty confused when i said i didn't want to test drive the vehicle. the price was just too high all things considered and he wouldn't budge at all on it. i ended up getting a better deal at another dealership for a model 1 year newer and less mileage.
wow this was a huge eye opener!
Appreciate you two!
In 5 decades of buying cars, I don’t remember being asked most of these questions….or maybe they did, but my response was so discouraging they didn’t press it. I’ve always been clear that the out the door price was my only concern, and when they run my credit they know I don’t need help with financing. I also have no problem walking out at any time, so I’m kinda a b@tch I guess 😅
Yup! I've complained about their rates being too high and they are like nobody gets lower! Then my credit is run, and story changes. But then my credit is over 800 so. I usually can just pay cash for a vehicle anyway by the time I buy. Though we have payments on one because we got 0% interest. I'll pay them in future dollars that are worth less and let my money I would have pulled out for it earn me money instead of them in the meantime. Car dealerships and credit card companies hate me.
It's good to be b@tch particularly when the Stealership is a lying b@tch. They are not your'e friend and you are not theirs. It's just a business transaction.
I would love these two to come into my dealership, and realize they don't need any tactics whatsoever to have an excellent, efficient experience. Yes, I'm going to make a profit. No, it won't be obscene. Yes, it is deserved.