I just paid off my 2015 Silverado. I am never getting in debt again. Having the extra money every month has changed everything. It literally felt like getting a $10k raise.
@@taco_23 you have to get gas anyway and registration is a requirement for every car regardless if its new or not. Same with insurance. Paying a little extra for significantly better coverage is absolutely worth it unless you have a beater you don't care about
24 years in the automotive industry and 18 years with dealerships ( michanic ) i have to say that you're the very first person i have ever sean/heard that's honest and upfront with people.. bravo sir, you have my respect. Without going too far into where i work lets say i will not buy a vehicle from my employer ( front line dealership )nor will i recommend them to anyone who askes. I WOULD buy one from you..
I wouldn't be able to sleep at night with car payments like that! I'm so happy and grateful for my 2008 Honda that I bought used 6 years ago and paid cash. I don't understand this country's obsession with new vehicles. They are just a means to an end. Great video as usual. Thanks!
@@sarahann530 being a 2016 a large chunk of depreciation was already paid by the original owner. Getting hit for depreciation AND interest makes it even worse.
@@BrianNC81 True but depreciation only hurts when you sell a vehicle and buying the correct new vehicle and keeping it for years works out better . You get the vehicle you want not somebody else's cast off .
@@sarahann530 keeping them as long as possible is probably the best decision to save $$. I'm driving a 15 yet old truck and plan on running it at least another 15 years. My car is a 11 year old BMW and has at least another 10 years left. It's amazing how long vehicles last when you take good care of them (and don't live in an area with road salt).
And will close 5 plants and take them over to a foreign country for cheap labor and still sell it to you for the same price as if Americans were putting it together.
So glad you showed this breakdown, not a lot of people show it.Last month i was looking hard into a new silveraldo. But I decided going in debt 50k for a half ton truck is stupid (thanks Dave Ramsey). For people with decent credit 670+ you can join a credit union and get a 60month loan for around 2.5% up to 84 for like 3.5.
Thanks for the Video @chevydude!! I just bought a 2020 Silverado LT 4x4 CrewCab Duramax for a great buy. 53,680 down to 44,300 72mos @3.83% = 463/mo (with 15,000 down) and no payments for 90 days! Thank you so much for your valuable information!
and he is right. I can see what the median income is in the US, I can see how many 40k trucks were sold in the US. Yes, some of the people have plenty of money........ but most of them are broke as a joke and will never retire. Me, I buy apartment houses and will be able to retire at 55. I drive an old Dodge Caravan....
Matt Younis Dave Ramsey taught me a lot and why I live in a house that paid for, I am thankful for him. I don’t have car payments or consumer debit only because of what I learned years ago
Yes. I noticed one thing while running a business and that is most millionaires and wealthy people are hidden . I work for this man that owns 5 wealthy businesses and he drives a 89 dodge van.
@@mystorymylife9998 My very broke friends have beautiful houses, cottages, boats and very fancy cars. They often goof on me for my choices. When you collect money, it can work for you while you sleep. When you collect possessions, you lose sleep thinking about how much work you have to do for them.
Looking at a 2019 Silverado, so this was great to see. Thanks for what you do. I worked at a small Chevy dealer in high school as a detailer and I remember all the talk from salesmen on how much they got out of XYZ customer. It's good to know not all salesmen are like that.
This is Chevy dudes best video. >Go into a dealership and find the car u like >let them try to Foursquare u> threaten to leave as soon as u see the paper, use the leverage to make the deal better
Love the honesty, but let's be honest the way the car companies are pricing new vehicles they all will be out of business 5 to 10 years. When your car payment is more then your house payment we all know which one will be paid first.
Clay Douglass YOU have a small mind. Lmfao $600 first car payment??? Don’t buy a car you obviously can’t afford. Payments are for bums, pay it off or stay in debt clown 🤡
Wow.. 54k for a full size truck. That is crazy. Vehicle prices are out of control. Seems like you can't get a nice new car for a decent price any more.
Never buy a new vehicle. Chevy has a crap warrenty so never buy it go with Mastertech. A 2 to 3yo truck with 25 to 45 grand on the odometer is anywhere from 15k to 20k cheaper. Sure you don't get those rebates, but who cares.
So I watched this 2 times before I bought a new Silverado, It helped a lot in calculating what the payment would be and knowing it helps . All I had to count on was hidden fee's and getting a fair trad in offer. If I got low balled on trade in the numbers would have been all jacked up and I let them know that up front and I got a fair but not great trade in offer
@@dedalliance1 I have bought both new and used vehicles in my life. I have never spent anywhere near as much on repairs as the difference in price. If you get something 3 to 4 years old it is on average half the price of a new vehicle. If it has 40k miles expect to buy tires in 10k miles and get a break job around the same time.
@@troy2478 it's confusing though saying a vehicle will lose half of its value in 4 years, because every person pays a different price on a new vehicle, and on a used one. For example, I bought my 2018 GMC for 41,150 with an msrp of 53k dollars, so it's already 20% off the msrp, so in 4 years is it going to lose another 50% or just another 30%? And when you go to sell it, if you sold it for 10% above average price, then did you really only lose 20% if you originally bought it for 20% off? and it's not really losing money, you're paying for the miles and wear and tear on the vehicle and the utility you got out of it. Because sure a used vehicle is cheaper, but it's also closer to death and will need replaced sooner. So it's a give and take, if you get a good deal whether used or new you'll turn out good.
@@dedalliance1 If one person pays $50k new and another pays $54k new is you get it in 4 year for between $25k and $27k I consider that half price even if it isn't exactly. My last vehicle I Bought was 4 year old, the original sticker was $32k it paid $13.5k that is a little less than half.
@@troy2478 Right but if the original buyer paid 20k instead of 32k msrp, and then sold it to you for 13.5k, you really only 'saved' 6.5k dollars versus just buying yourself a new vehicle. Is it worth saving that money to buy a vehicle you have no idea what was done to it or treated by the previous owner? It's a give and take.
When a vehicle exceeds a normal house payment and depreciates 20K a year, it qualifys as the worst rodding of your life. The sales tax is more than I put down on my first house which was back in the Carter insanity years. Now, it is vehicle prices. I think we will see some dealer networks start to fold in a few years. People are in so much debt they could never recover but they look like they are high on life until implosion at the first obstacle in life they encounter. Kids are raised in the US to expect everything and instant gratification.
I went to KBB do do this out of curiosity and did the INSTANT CASH OFFER as you said but it didn't give me a number for my car. It takes me through this questionnaire so that a dealer can contact you. I don't like that, I just want to be informed for knowledge purposes. I did learned something valuable from your video though. I learned that the less months you finance, the more you put down, the more it's worth vs if you do more months financing. Very interesting, never knew that or put it into numbers anyway. Great video man, it really gives us a "realistic " idea what we can afford.
You are not showing all the truth. You casually say $20 a month between payment amounts shouldn’t make an impact on a decision to purchase. I say it does. $20/month up front looks trivial and might get some poor sucker to buy but in your example, every $20 increase cost the buyer $1200 more on a 60 month loan in the long run. You are just playing 4 square in a different way.
And then the dealer makes one point or so off your loan boosting their profit even more. No need to wonder why they have big lots and nice buildings. You paid for it.
same here ...got 2 trucks and a van...500$ for a junkyard motor and a weekend in the garage and im back in business...no way im making payments like that.
See I would do 84 months if I could get a really low interest rate ONLY because I know I would be paying it off as early as possible by sending in extra towards the principal. But like he said in the video that's not likely to be the case. I have done this twice(not 84 months but send in extra) and paid off both vehicles in about 3.5 years if not sooner. Then again I never buy my cars with all the bells and whistles that jack up the price and I tend to keep my cars for as long as possible.
I financed at 84 months with a high interest rate before because I needed a vehicle and credit was shot from divorce. I sent in extra every month and paid off my debts. As soon as my credit went up I refinanced with my credit union. That 84 month loan was just to get the keys in my hand.
Alan I know it’s very difficult, I don’t have my license yet and preparing to get it in future and get an eventual car ad I have heard of people who get into a lot trouble and getting their credit score downgraded. So it is extremely dangerous.
@@CocoTaveras8975 I work for the largest subprime auto finance for chrylser. 80 percent of our loans are 72 months... If you can do 72 you can do 84... You score will only go down cause you missed some payments.
In you illustration a 1% difference in the loan isn't just $20ish, it's $20ish x 60 = $1200ish or $20ish x 72 = $1440ish over the life of the loan. It should be a factor and changes more that a little bit given the full picture rather than the partial one presented which only benefits the company.
He's talking about $20 on your monthly budget being a factor for buying a truck or not. Besides, he knows the majority of households don't even have a budget anyway.
I picked up my 2014 GMC Sierra Z71 Double Cab used 2 years ago with 40k miles for $23,000. The window sticker new was over $40,000. It has almost 60k miles on it now and value on kbb is still over $20k. That’s why I buy used, don’t take the huge hit in lost value when buying new.
Saving for 5 years tho. I mean ok if I'm saving for 5 yrs WHILE DRIVING a decent car I enjoy. You're saying to someone like me, well start saving for 5 years after your car is already 11 years old. No thanks. You're right but no thanks. I gotta save 600 a month for 60 months to get something I like. My problem in guess
@@JD-fx1np you are so right. The good news is by driving a shit car you save yourself some times in payments as you earn interest instead of paying it and only need to do it once in your life as going forward, you can still save the money for a next new car, while driving a new car today. So ya, no paint, no gain.👍 We all have our priority in life right?
2019 Ram 1500 level 2 V6 Etorque crew cab 4wd . 47k MSRP . 9k in rebates with only Friends and Family . 36 months lease . 0 money down 298$ a month on a 3 year lease with 10k miles per year .
This is why I've always bought used. Plus I just can't afford it plus a $800 mortgage and all the other bills. I also enjoy having a few extra bucks in my pocket vs trying to be a show off with a overpriced vehicle.
In 1967 my Dad bought a new Ford 3/4 ton pickup ( stripped) for $ 2600.00 ( 25% of his annual income ) So, today I'd have to earn about $170,000 to do a comparable deal ?
Exactly what I was thinking. The big picture matters just as much as the small one. But this mentality of "its only $20 a month" is very common. I just bought a truck last week and the dealer was like " hey, its only $18 more a month" . needless to say, I walked out and went somewhere else. And this guy doesnt show a dealer fee which im sure they charge around an additional $800.
This is exactly why the “4 square” sales tactic is so deceiving. Most people only focus on monthly payment and take no consideration on how they’re getting raked over the coals on either their trade, interest rate, etc. which will just place you in the middle of quicksand, if you’re not careful.
I'm not putting you down, I understand that new vehicles have to be sold in order for me to get my vehicle, but I only make 55k a year and that's why there's people that make more than me😁😁😁😁😁btw I have been in the business and I love the fact that you don't do the creepy underhanded things my bosses used to do. I hated doing that to customers. Probably why I couldn't hang.
I personally have no use for one. I don't own a farm, ranch, I don't own a welding rig, and don't pull a gooseneck trailer. Basically if you own a diesel and its not doing something that makes its payment for you, you're freaking stupid for owning.
@@johnduke136 I own them for the return value and the miles they can clock. Diesels hold value better then any gas engine truck after 10 years. 1 truck tows a 5th wheel for work purposes to which is why its switched out. The other is for when the other truck is gone away from the ranch for the other half of the year. Not that we tow that often as it is or that much but i could easily put both into hotshot if desired. The ranch truck is road legal. I keep it as its paid for and for the offroading/mud delt with. Also used by family when visiting or when a truck is required by someone. For a 1500, it sure tows a goosneck quite well i will say. I can honestly say after 5 years of ownership the 2018 will still retail for the high 50k mark where the 2017 will only fetch maybe 35k with the 250,000 or more miles . Just because it doesnt justify in your head doesnt mean everyone needs to contort to youre reality. I know someone that said that crap to my face too but called me much more than an idiot for owning so many large trucks. The catch is, they are backup plans. Noone ever has a backup plan for when times get tough. When times do, i have 2. 1 fails, he other keeps going.
Just bought a new GMC Acadia and the processing fee was $99.00 - your fee to high for one . Didn't use GM lender either ..about the payment on the interest rate of $20.00 multiples by 12 by 60 or 72 months does add up for an individual. Videos are great - thanks
What another great video Mike! I am a GM Salesman in Canada and your videos are always on point! You work has inspired me to create my own channel I can only help for the same success as you!! Keep up the great work!
@@cwhit42 Yeah, between the dealer bullshit FEES and LIES... you have the exorbitant car prices now... the market will eventually put them out of business. Worse people / entities in the world 1. Banks 2. Insurance companies 3. Car dealers.
But interest rate, you look at how much ur gonna end up paying once you’re finish. Not just “oh it’d just 20$ more this month” Na add it up towards the end, it’s a difference
Just curious as I work for a Toyota dealership. We use KBB ICO. Don't use a 4 square, we use a write up sheet. I would say all the packs, are not to rip the customers, but to rip the salesperson off their commission. My $500 pack comes off the left over profit, which I get paid on. $50 for fuel, even though we don't usually put fuel in used. $1200 for safety, smog and detail. In the end all those charges are designed to screw me out of a commission, not the customers out of over paying.
Scotty Kilmer is a lunatic shill, but he's right on that. I bought my last one on 2008 for 30K. Still have it and likely never buy a new one again. These prices are an outrage.
I have a 2010 silverado with barely 100k miles on it that just started having oil pressure issues. Bad lifters, engine sludging by design, VVT, total piece of shit engine. They ruined a perfectly good engine.
Dude , you are a rare bird , with that said , thanks for your honesty . Your dealership treated me very well , I feel as if everything you just shown was spot on , I now own a new style "19" RST Z-71 . I was very comfortable during my purchasing experience , and felt at ease looking at the figures as it was explained . Great video , keep up the great work .
Good info and understanding how car dealership like to charge what you don't need. Good straight up information for customers to use in purchasing a vehicle
I bought a 2011 Ford Fusion in auction $1200 after shipping and the body work it ended up costing $2400. I can't imagine paying that much money for a car. However, this guy is amazing for breaking it down for everyone. If only more car dealers and salesmen were honest like him.
Ben Kuhns Yep. Get a 3 or 4 year old vehicle for 60‰ of the new price and pay cash. And if one of Biff’s corrupt salesman colleagues insists on talking payments instead of total price, walk away.
The other way to do it, is refinance with a different bank after you get all the discounts, my bank is giving me a 4.5 interest rates. I had no trade in, but I did have $10k for a down payment. Sticker price was $39.999 for the 2019 RST, Z71, Silverado. With the 5.3.
i came in to a misson chevy dealeship and was told i my best offer was going to be to pay 747$ per month i said no ty and walked out the guy called me back 3 hrs. later and gave me 685 $ payment and i took that offer on a 2019 Silverado still a bit high but i love this truck im happy the guy called me back
DONT BUY A NEW TRUCK. In 2015 right after when the new model silverados came out in 2014 I really wanted one so I went to the dealership and the salesman tried to sell me a 45k$ brand new truck, I said hell now I couldn't afford that so he started looking for a lesser well equipped truck with the little doubt left cab and bare bones. I looked at their sister dealership 15 miles away and they had a used 2014 new model year with 22k crew cab 5.3 2wd for $30k. saved myself $15k. Buying a brand new vehicle is absolutely the worst idea you can possibly have. Buying slightly used will always save money. these vehicles literally depreciate the minute you drive them off the lot. I love my truck by the way. I only wish I would have bought a 4x4
@@Amir-ie2yz at the time I didn't see the point because I live in Florida and we dont have any snow and I dont ever go through mud. I have a bad ass Brute force 750 quad that has actually pulled my truck out of mud. If I buy another truck its going to be 4x4. major regret
Totally agree with not liking the GMF Down Payment Assist…my customer’s see it on TV advertising, ask for it as part of the write up, and then have to immediately re-finance due to GMF’s high rates.
I’m a cash buyer, but I also don’t buy new, just can’t take that depreciation. I’m curious though, is there any penalties or anything preventing a buyer from financing for the DPA then paying off in full on the first payment?
@@jonmacdonald7140 there are no pre-payment or early payoff penalties. 99.9% of my customers either write the check to pay it off in cash, or refinance at a much lower rate with their local bank or credit union.
I just bought a new 2020 v6 Camaro and I sold my 2009 v6 Mustang with 109k miles on it. I got two cash offer quotes from Kelly blue book and I will never try to sell a car to them again. First offer was $2900. Second offer was $2500. Then I sold it to Carmax for $4500. I made a down payment of 15k and did a 6 year loan with an interest rate just a little over 2%. I went ahead and got the extended Warranty that last the duration of my loan and still have a payment of about $275 a month. 😀 So far I love my new Camaro. 😀
Just bought a new 2019 Silverado 1500 custom for 25k and I'm beyond happy with it, I just needed a bigger vehicle for the family and this works perfect I'm not lifting 5k loads or anything like that just liked the truck and bargained with the dealer and won :D
After the 84 month scenario, $684x84 = $57k on a vehicle that was purchased at $45k. Lol, that’s $11k that could be one hell of a vacation or put into retirement.
Im no expert Im no rich dude. But here’s how I went about getting my used car financed. Not everyone can afford to just save up and pay cash for cars. If you can, more power to you. Don’t finance with the dealer. Go to a credit union, bank with them if possible. My interest rate was 2.2% No prepayment penalties I got a car about 3 K under what I was approved for. I made sure I was able to afford double the minimum payment. Never pay minimum payments. If you can’t pay double the monthly , re think your options. Im no expert. What do I know. But this was the smartest decision I made for myself. Payed off the car a year before the term was over.
There is nothing terrible about the 4 square. He's talking smack to sell you on the method his dealership uses which is actually designed to make you focus on payment. Notice how his sheet gives you 9 different payment choices, based on 60 months, 66 months and 72 months, then a payment based on those months with $0 down, $1,000 down, and $2,000 down? That is designed to make you more focused on the payments. No different than a 4 square. The only thing the 4 square doesn't show is what the tax, title, license & doc fee is, but that is included in the payment shown on the 4 square. The total breakdown that shows everything like his sheet does is shown on the reverse side of the 4 square sheet which is filled in once the customer is good with the purchase price, minus rebates (if any), the trade allowance (if there is a trade) and the payment. Its not designed to confuse anyone with anything. Having been in the car business myself for 16 years I have used both methods and I can tell you the method he uses showing you the 9 different payment options is by far the easiest way to confuse a customer and keep them focused on payments. That is designed to deflect their attention away from the selling price and the trade-in value. Like he did say which he is correct about, is that most buyers are mostly concerned with payment. If they are good with the payment they buy. If not, they don't buy. As for trade-in value, a good way to see if the dealer is really giving you the amount they are showing you for your trade and not playing games by showing you an over allowance is to tell the dealer you don't want to buy the car, but you will sell them your trade out right for the amount they are showing you for your trade. If the dealer is willing to buy your trade out right for that same price they showed you, then you'll know that is the actual cash value they are really paying you for your trade. If they balk by making any excuses that they won't buy your trade out right for that price then you know they were playing games by over allowing for your trade. Remember what he said here in the video about trade-ins? Prices are high at the auctions which is why they offer that $2,000 extra for trade-ins on top of the actual cash value. If that is true then the dealer would be more than willing to buy your trade-in out right for that price, unless they are over allowing for the trade. What is over allowing for a trade? That is where a dealer shows you more for your trade than what they are really putting into it. For example, if the actual cash value for your trade is $3,000 and the dealer shows you $4,000. How are they able to show you $4,000 if they are really only giving you $3,000? They are taking the extra $1,000 from the mark up they have in the vehicle you are buying. For example, if you are buying a $54,000 vehicle, there may be $4,500 in mark up between dealer invoice and MSRP. The dealer may show you a selling price of $52,000 after discounting the MSRP price, where the dealer still has $2,500 in mark up left. So they will take another $1,000 from that $2,500 left in mark up and add that to your trade value by showing you $4,000 for your trade instead of the actual $3,000 they are really paying you for it. The second biggest thing people get hung up on besides payment is the amount they are getting for their trade. This is why a lot of dealers show over allowances for trade-ins, which just basically means instead of showing you the real price they can sell you the vehicle out right for, they are holding back part of their mark-up so they can show you more for the trade. Most people get more hung up on their trade than they do on the selling price. Payment and trade value are the two biggest issues that most buyers get hung up on. Then down payment, then price. The 4 square actually has LESS confusion, not more, because its very basic and simple for everyone to understand. The complete breakdown is always given regardless of which method is used. Everyone has to pay the tax, title, lic & doc fee. The payment always includes that. The 4 square shows the all the important factors that are all subject to negotiation. MSRP and the Purchase Price which is the top left square. Down payment if any which is the bottom left square. Trade-in value which is the top right square, and payment which is the bottom right square. All for are all of the things subject to negotiation. The tax, title, lic & doc fee is not subject to negotiation. The tax will be based on the Purchase price minus trade-in value if any, then any rebates will be deducted from that total. The tax is calculated before any rebates are substracted. If you are trading a vehicle that trade value gets deducted first from the selling price before tax is calculated, which means you are saving sales tax based on your trade amount and that is a factor to consider when trading or selling out right. If your trade is worth a lot of money then 6% sales tax you save on that amount by trading in the vehicle may make it not worth the hassle of selling it yourself once you account for the sales tax amount. For example, if you your trade value was $25,000 and sales tax is 6% for your state, that would be $1,500 in sale tax you save by trading it in on the new vehicle. That means if you were to sell it out right yourself then you will need to get at least $26,500 for your vehicle just to break even on what you would get from the dealer by trading it in. You have decide if its worth the hassle to sell it yourself to try and get an extra $1,000 or $2,000 out of it once you account for the sales tax savings if you traded it in.
Trading in is easy, sure, but you’ll leave a couple thousand on the table. Example. Trade value for a minivan I had was $5000.....I sold it in 5 days for $9000 on Kijiji. Took the full $9 grand and put it down on the Vehicle I wanted. 🤷🏻♂️
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Thanks for clarifying I can not afford a brand new truck lol
Lots of us in the same boat. Hawt damm
I'll keep driving my 80s GM trucks. Zero credit for me and I'm too lazy to get any 😂
Are you looking for a mid size or full size
Same here lol
Vehicles have doubled to tripled just in my 30 years of buying cars. Our pay has not come anywhere near that.
I just paid off my 2015 Silverado. I am never getting in debt again. Having the extra money every month has changed everything. It literally felt like getting a $10k raise.
How much were you paying? And congrats!
Great lesson to learn, congratulations on both your ownership and realization!
Congrats. Once you taste that kind of freedom, you never want to go back.
Good luck on repairs
Yeah but your sitting in the seat of a newer truck. Without it you'd still want it.
Yes you made me realize I don’t want a new truck
At all lol
Think I'll walk. Don't forget full coverage insurance and yearly registration
That’s what I was thinking. I would imagine at least 200-300 extra a month on whatever your bill is now.
@@mystorymylife9998 full insurance on my dad's truck is $50 a month. I'm not kidding, only downside is $1000 deductibles.
Don't forget the gas every week
@@taco_23 you have to get gas anyway and registration is a requirement for every car regardless if its new or not. Same with insurance. Paying a little extra for significantly better coverage is absolutely worth it unless you have a beater you don't care about
24 years in the automotive industry and 18 years with dealerships ( michanic ) i have to say that you're the very first person i have ever sean/heard that's honest and upfront with people.. bravo sir, you have my respect. Without going too far into where i work lets say i will not buy a vehicle from my employer ( front line dealership )nor will i recommend them to anyone who askes. I WOULD buy one from you..
I wouldn't be able to sleep at night with car payments like that! I'm so happy and grateful for my 2008 Honda that I bought used 6 years ago and paid cash. I don't understand this country's obsession with new vehicles. They are just a means to an end. Great video as usual. Thanks!
My ride is a 2016 Honda Accord LX. Paid in full. I don't finance depreciating assets.
@@jvolstad But you have no problem paying cash for a depreciating asset
@@sarahann530 being a 2016 a large chunk of depreciation was already paid by the original owner. Getting hit for depreciation AND interest makes it even worse.
@@BrianNC81 True but depreciation only hurts when you sell a vehicle and buying the correct new vehicle and keeping it for years works out better . You get the vehicle you want not somebody else's cast off .
@@sarahann530 keeping them as long as possible is probably the best decision to save $$. I'm driving a 15 yet old truck and plan on running it at least another 15 years. My car is a 11 year old BMW and has at least another 10 years left. It's amazing how long vehicles last when you take good care of them (and don't live in an area with road salt).
2020 Silverado prices just in....2 legs, 1arm, 7, fingers....apply today for our outstanding sales!!!
You forgot to add the first born in there lol.
Ya also forgot to add in a left nut too!!
And will close 5 plants and take them over to a foreign country for cheap labor and still sell it to you for the same price as if Americans were putting it together.
It's not just Chevy though.
So glad you showed this breakdown, not a lot of people show it.Last month i was looking hard into a new silveraldo. But I decided going in debt 50k for a half ton truck is stupid (thanks Dave Ramsey). For people with decent credit 670+ you can join a credit union and get a 60month loan for around 2.5% up to 84 for like 3.5.
I was about to comment before you buy one look up dave ramsey lol.
I bought a 10 speed for 20 bucks 25 yrs ago. still running
Nice.
I’ll give you 25$ for it lol
Something tells me it was not a detroit product...
Well you bought at just the right time. Today it would cost me $75.00 just to tune up my bike, more than my car oil change.
20 bucks? 10 speed what? Tricycle? lol
Thanks for the Video @chevydude!! I just bought a 2020 Silverado LT 4x4 CrewCab Duramax for a great buy. 53,680 down to 44,300 72mos @3.83% = 463/mo (with 15,000 down) and no payments for 90 days! Thank you so much for your valuable information!
The best way to buy that truck is to wait until it's 2-3 years old less than 40K miles and you can get it for $20-25K less.
Even at that price it is too much.
@Wile E Coyote right, like your mother.
bravo, and buy it from Craigslist so you eliminate the dealer mark up
@Wile E Coyote And they said racism is dead and to get over it.
@@qtippz where is the racism I don't see it, its nonexistent
Thanks for reminding me why I will always buy 3 year old cars from.individuals who have already taken the beating on a depreciating asset.
Step one, finance thru GM at 6.7% to get additional rebates. Step two immediately refinance thru a credit union at 2.6% interest.
@Mike Gray it's at 2.74 now
@Mike Gray if you have shitty credit you're not getting that rate
@Mike Gray 1.99% all day around here.
I got 84mo at 3.5%. pay extra if I can to pay it down. Credit Unions rock
4-6% at the dealer, no thanks. I had 2.49% on my wifes car and 1.99% on my truck through our credit union.
$800/month for 60 months for a pickup truck? That’s freaking nuts.
Dave Ramsey would say run away now can’t pay cash can’t afford It
and he is right. I can see what the median income is in the US, I can see how many 40k trucks were sold in the US. Yes, some of the people have plenty of money........ but most of them are broke as a joke and will never retire. Me, I buy apartment houses and will be able to retire at 55. I drive an old Dodge Caravan....
Matt Younis Dave Ramsey taught me a lot and why I live in a house that paid for, I am thankful for him. I don’t have car payments or consumer debit only because of what I learned years ago
@Mike Gray excally took me way too long to figure that out😁
Yes. I noticed one thing while running a business and that is most millionaires and wealthy people are hidden . I work for this man that owns 5 wealthy businesses and he drives a 89 dodge van.
@@mystorymylife9998 My very broke friends have beautiful houses, cottages, boats and very fancy cars. They often goof on me for my choices. When you collect money, it can work for you while you sleep. When you collect possessions, you lose sleep thinking about how much work you have to do for them.
I can't help but stare at Kramer in the back ground.....Don't think a new silverado is in my budget but thanks for the advice.
Looking at a 2019 Silverado, so this was great to see. Thanks for what you do. I worked at a small Chevy dealer in high school as a detailer and I remember all the talk from salesmen on how much they got out of XYZ customer. It's good to know not all salesmen are like that.
Also make sure you can afford the full coverage insurance.
This is Chevy dudes best video. >Go into a dealership and find the car u like >let them try to Foursquare u> threaten to leave as soon as u see the paper, use the leverage to make the deal better
$700 car payment. Great way to stay poor.
And this is on an almost base truck…
Edit: the first example with a $39k MSRP vehicle
Buddy pick up trucks make u money. Its an asset not a liability
I have $1200 car payment and I’m living okay.
Gave thumbs up just because of the Kramer picture. If I buy a Chevy it will be a festivus for the rest of us!
And a free Manssiere!
@@nobhiker No, it's the BRO!!
I have the same Kramer poster in my office. Birds of a feather...
Love the honesty, but let's be honest the way the car companies are pricing new vehicles they all will be out of business 5 to 10 years. When your car payment is more then your house payment we all know which one will be paid first.
Unfortunately they want you to be behind.... Profits are in repo fees and late payment fees.
Clay Douglass YOU have a small mind. Lmfao $600 first car payment??? Don’t buy a car you obviously can’t afford. Payments are for bums, pay it off or stay in debt clown 🤡
Your optimistic! These prices I will start walking I refuse to spend more than a years income for 4 to 5 years use of a vehicle.
@@troyeager8877 Enjoy your walk
Wow.. 54k for a full size truck. That is crazy. Vehicle prices are out of control. Seems like you can't get a nice new car for a decent price any more.
Never buy a new vehicle. Chevy has a crap warrenty so never buy it go with Mastertech. A 2 to 3yo truck with 25 to 45 grand on the odometer is anywhere from 15k to 20k cheaper. Sure you don't get those rebates, but who cares.
They are also made from aluminum and are very expensive to fix body damage
Wym? A ford F250 can hit $90k
More people, more demand, more money.
In reality it’s actually a $45k truck that they marked way up so they could mark it down and pretend you’re getting a great deal lol
never buy a car on payments, get final price out door
So I watched this 2 times before I bought a new Silverado, It helped a lot in calculating what the payment would be and knowing it helps . All I had to count on was hidden fee's and getting a fair trad in offer. If I got low balled on trade in the numbers would have been all jacked up and I let them know that up front and I got a fair but not great trade in offer
Jesus Christ those monthly payments are insane. idk how y'all do it
George S super reliable that you get a new one every 3.5 years? I’ll keep my F150 pushing 200,000 miles with no issues so far.
@@AdventuresOutdoors some kid in a honda totals your new truck your out $20k
@@AdventuresOutdoors Why aren't you just leasing then?
Everyones got money nowadays. Except me. Not complaining life could definitely be far worse I'm thankful to have what I have.
@@AdventuresOutdoors dude if you're doing this every 3-4 years you should be leasing. You're throwing away your money.
I was in the market for a truck. After seeing those monthly prices I’ll probably get a used one
Just budget the same amount for repairs lol.
@@dedalliance1 I have bought both new and used vehicles in my life. I have never spent anywhere near as much on repairs as the difference in price. If you get something 3 to 4 years old it is on average half the price of a new vehicle. If it has 40k miles expect to buy tires in 10k miles and get a break job around the same time.
@@troy2478 it's confusing though saying a vehicle will lose half of its value in 4 years, because every person pays a different price on a new vehicle, and on a used one. For example, I bought my 2018 GMC for 41,150 with an msrp of 53k dollars, so it's already 20% off the msrp, so in 4 years is it going to lose another 50% or just another 30%? And when you go to sell it, if you sold it for 10% above average price, then did you really only lose 20% if you originally bought it for 20% off? and it's not really losing money, you're paying for the miles and wear and tear on the vehicle and the utility you got out of it. Because sure a used vehicle is cheaper, but it's also closer to death and will need replaced sooner. So it's a give and take, if you get a good deal whether used or new you'll turn out good.
@@dedalliance1 If one person pays $50k new and another pays $54k new is you get it in 4 year for between $25k and $27k I consider that half price even if it isn't exactly. My last vehicle I Bought was 4 year old, the original sticker was $32k it paid $13.5k that is a little less than half.
@@troy2478 Right but if the original buyer paid 20k instead of 32k msrp, and then sold it to you for 13.5k, you really only 'saved' 6.5k dollars versus just buying yourself a new vehicle. Is it worth saving that money to buy a vehicle you have no idea what was done to it or treated by the previous owner? It's a give and take.
When a vehicle exceeds a normal house payment and depreciates 20K a year, it qualifys as the worst rodding of your life. The sales tax is more than I put down on my first house which was back in the Carter insanity years. Now, it is vehicle prices. I think we will see some dealer networks start to fold in a few years. People are in so much debt they could never recover but they look like they are high on life until implosion at the first obstacle in life they encounter. Kids are raised in the US to expect everything and instant gratification.
Wow ! Most concise and honist car finance video I have ever seen.
I recommend non industry people watch this a couple times before buying.
I went to KBB do do this out of curiosity and did the INSTANT CASH OFFER as you said but it didn't give me a number for my car. It takes me through this questionnaire so that a dealer can contact you. I don't like that, I just want to be informed for knowledge purposes. I did learned something valuable from your video though. I learned that the less months you finance, the more you put down, the more it's worth vs if you do more months financing. Very interesting, never knew that or put it into numbers anyway. Great video man, it really gives us a "realistic " idea what we can afford.
You are not showing all the truth. You casually say $20 a month between payment amounts shouldn’t make an impact on a decision to purchase. I say it does. $20/month up front looks trivial and might get some poor sucker to buy but in your example, every $20 increase cost the buyer $1200 more on a 60 month loan in the long run. You are just playing 4 square in a different way.
Amen
Was thinking the same thing.
Amen to that. I said same thing
And then the dealer makes one point or so off your loan boosting their profit even more. No need to wonder why they have big lots and nice buildings. You paid for it.
I agree when dealers say that oh what is $20 different. I see $1200 or $1440.
Got a 95 c1500, engine blows up I'll buy a crate engine and install it for around the down payment price 😂
markryanplatypus 😂 👍🏽
same here ...got 2 trucks and a van...500$ for a junkyard motor and a weekend in the garage and im back in business...no way im making payments like that.
Yeah man, staying debt free is the way to be. Much less stress
@@markryanplatypus It took me MANY years to learn that valuable lesson. Debt free feels warm and safe.
Yes I also agree. How about how he shows you the dealer Jack's up the price to give you a 2k discount for owning a different car! Lol hilarious!!
I'll keep driving my 97 Silverado
The portrait of Kramer on your wall makes me trust you more.
Gitty up!
That's why I bought my truck 3 years old only pay 380 a month. There is no way in the world I would pay 700 in a truck payment.
84 months to finance a car. And no money down. Thats all you need to know about people's financial savvy. Crazy.
See I would do 84 months if I could get a really low interest rate ONLY because I know I would be paying it off as early as possible by sending in extra towards the principal. But like he said in the video that's not likely to be the case. I have done this twice(not 84 months but send in extra) and paid off both vehicles in about 3.5 years if not sooner. Then again I never buy my cars with all the bells and whistles that jack up the price and I tend to keep my cars for as long as possible.
I financed at 84 months with a high interest rate before because I needed a vehicle and credit was shot from divorce. I sent in extra every month and paid off my debts. As soon as my credit went up I refinanced with my credit union. That 84 month loan was just to get the keys in my hand.
I can't imagine financing a vehicle for 84 months.
Alan I know it’s very difficult, I don’t have my license yet and preparing to get it in future and get an eventual car ad I have heard of people who get into a lot trouble and getting their credit score downgraded. So it is extremely dangerous.
@@CocoTaveras8975 I work for the largest subprime auto finance for chrylser. 80 percent of our loans are 72 months... If you can do 72 you can do 84... You score will only go down cause you missed some payments.
@@Dom_Solo You pay 20% more in interest on a 20k loan if you choose 72 months vs 60. It is even higher if you go 84 months
Don't judge me.
Eventually, we will have 360-month car loans!
In you illustration a 1% difference in the loan isn't just $20ish, it's $20ish x 60 = $1200ish or $20ish x 72 = $1440ish over the life of the loan. It should be a factor and changes more that a little bit given the full picture rather than the partial one presented which only benefits the company.
@@Travelingmanvegas it's $2k more of what your trade is worth, not that they'll give you 2 grand for your trade... lmao, what a fucking idiot
$20 today are worth less than $20 in 5 or 6 years, so yeah, no big difference if you're getting a $40k truck
He's talking about $20 on your monthly budget being a factor for buying a truck or not. Besides, he knows the majority of households don't even have a budget anyway.
I picked up my 2014 GMC Sierra Z71 Double Cab used 2 years ago with 40k miles for $23,000. The window sticker new was over $40,000. It has almost 60k miles on it now and value on kbb is still over $20k. That’s why I buy used, don’t take the huge hit in lost value when buying new.
This is really scary that 72 months, very little down is the “most common”. Holy shit.
Forget the speakers you should give away a car 😋🤪lol
Financing car is crazy. Save up that 5 years of payment for 4 years and buy the car for cash. Patience people, patience!
sigor2011 “winning with money ain’t a sprint it’s a marathon, it’s a crockpot mentality”
Saving for 5 years tho. I mean ok if I'm saving for 5 yrs WHILE DRIVING a decent car I enjoy. You're saying to someone like me, well start saving for 5 years after your car is already 11 years old. No thanks. You're right but no thanks. I gotta save 600 a month for 60 months to get something I like. My problem in guess
@@JD-fx1np you are so right. The good news is by driving a shit car you save yourself some times in payments as you earn interest instead of paying it and only need to do it once in your life as going forward, you can still save the money for a next new car, while driving a new car today. So ya, no paint, no gain.👍 We all have our priority in life right?
By the time you save up for a new truck they will have doubled in price and you will be back at square one again lol
@@TJsVette go buy a new one then today, hurry before they sell out and price doubles, make dealer happy.
I appreciate the insight Chevy Dude. Scary numbers though.
2019 Ram 1500 level 2 V6 Etorque crew cab 4wd . 47k MSRP . 9k in rebates with only Friends and Family . 36 months lease . 0 money down 298$ a month on a 3 year lease with 10k miles per year .
This is why I've always bought used. Plus I just can't afford it plus a $800 mortgage and all the other bills. I also enjoy having a few extra bucks in my pocket vs trying to be a show off with a overpriced vehicle.
Thats NUTZ . My mortgage payment is $525 a month and that with taxes and insurance escrowed in. LOL
$844 a month out the door for me.
$525 a month!!!! What I pay would blow your mind. I'm from NJ highest taxed state in the country. I would kill for less than $1500
What would the truck payment be if financed for 30 years?
@@danielf2018 good point , Mr head lol is that your real name
@@american_chevy616 move to Missouri, LOL you MIGHT regret it.
I'm glad I own a Toyota Tacoma and no payments since 2012. It should last many more years. I have a positive equity of 23k.
Kind of getting crazy on price imho
Good model to go by. It'll be useful for when I go after a new Silverado Custom. Thanks, Mike.
In 1967 my Dad bought a new Ford 3/4 ton pickup ( stripped) for $ 2600.00 ( 25% of his annual income )
So, today I'd have to earn about $170,000 to do a comparable deal ?
Bill In 1974 I bought a 1/2 ton Chevrolet stripped model for $3250 and put 1000 down and paid it off in 18 months at $3.13 per hour with my job.
Just buy your Dads 67 , I hear old trucks are awesome and never die .
The problem is 20 bucks a month for 72 months is $1,440.
Exactly what I was thinking. The big picture matters just as much as the small one. But this mentality of "its only $20 a month" is very common. I just bought a truck last week and the dealer was like " hey, its only $18 more a month" . needless to say, I walked out and went somewhere else.
And this guy doesnt show a dealer fee which im sure they charge around an additional $800.
This is exactly why the “4 square” sales tactic is so deceiving. Most people only focus on monthly payment and take no consideration on how they’re getting raked over the coals on either their trade, interest rate, etc. which will just place you in the middle of quicksand, if you’re not careful.
That's why I buy 3yo used trucks. Low milage, and a WAY WAY WAY lower starting price.
I'm not putting you down, I understand that new vehicles have to be sold in order for me to get my vehicle, but I only make 55k a year and that's why there's people that make more than me😁😁😁😁😁btw I have been in the business and I love the fact that you don't do the creepy underhanded things my bosses used to do. I hated doing that to customers. Probably why I couldn't hang.
If you look around there are a lot of good deals on low mileage used Silverados out there
Only holds true for gasser trucks. Diesels, forget it. Just buy new as they are asking new price on 3-6 year old trucks.
I personally have no use for one. I don't own a farm, ranch, I don't own a welding rig, and don't pull a gooseneck trailer. Basically if you own a diesel and its not doing something that makes its payment for you, you're freaking stupid for owning.
@@johnduke136 I own them for the return value and the miles they can clock. Diesels hold value better then any gas engine truck after 10 years. 1 truck tows a 5th wheel for work purposes to which is why its switched out. The other is for when the other truck is gone away from the ranch for the other half of the year. Not that we tow that often as it is or that much but i could easily put both into hotshot if desired. The ranch truck is road legal. I keep it as its paid for and for the offroading/mud delt with. Also used by family when visiting or when a truck is required by someone. For a 1500, it sure tows a goosneck quite well i will say. I can honestly say after 5 years of ownership the 2018 will still retail for the high 50k mark where the 2017 will only fetch maybe 35k with the 250,000 or more miles .
Just because it doesnt justify in your head doesnt mean everyone needs to contort to youre reality. I know someone that said that crap to my face too but called me much more than an idiot for owning so many large trucks. The catch is, they are backup plans. Noone ever has a backup plan for when times get tough. When times do, i have 2. 1 fails, he other keeps going.
You have to figure maintenance, fuel, insurance and depreciation in addition to that monthly payment.
@gertgrtgrtgrt lmao!! GTFOH!! what type of investment gives you returns of 500%?
Just bought a new GMC Acadia and the processing fee was $99.00 - your fee to high for one . Didn't use GM lender either ..about the payment on the interest rate of
$20.00 multiples by 12 by 60 or 72 months does add up for an individual. Videos are great - thanks
What another great video Mike! I am a GM Salesman in Canada and your videos are always on point! You work has inspired me to create my own channel I can only help for the same success as you!! Keep up the great work!
New trucks have gotten ridiculous in price and taxes... Never buying new vehicle again....
Eh taxes are just based upon the price.
@@AcidDaBomb exactly !!
Absolutely...never again..people need to think about gas and insurance also.. add another 200 to 300 even more to that payment...
@@cwhit42 Yeah, between the dealer bullshit FEES and LIES... you have the exorbitant car prices now... the market will eventually put them out of business. Worse people / entities in the world 1. Banks 2. Insurance companies 3. Car dealers.
I don’t know why I watch this channel. I’ll never be dumb enough to spend this much money on a new vehicle
Bought a new F150 in 1990 for $13,500. lasted almost 20 years. These prices are insane. Never be able to afford a new truck now.
But interest rate, you look at how much ur gonna end up paying once you’re finish. Not just “oh it’d just 20$ more this month” Na add it up towards the end, it’s a difference
In my opinion you give the best advice for car buying.✌🏽
I pay less per month for 40acres of land.... hmmmm wonder what will be worth more in 12 years?? A rusted out Chevy or 40ty acres of land...... 🤔🤔🤔🤔
What's your yearly property tax on that?
🙄🙄 we get it, no one's Care's
Which one makes you more money though ? Work trucks pay for themselves
@@dylanstrahan9180 well let's see... ,,,, Since I wrote this post I recently sold the land and paid my house off. Best regards.
@@2cents186 sorry, I just saw this. It was $90.00 per year.
I was looking to get a new truck end of year....not anymore lol
What this tells me is that I’ll never buy a new truck.
Just curious as I work for a Toyota dealership. We use KBB ICO. Don't use a 4 square, we use a write up sheet.
I would say all the packs, are not to rip the customers, but to rip the salesperson off their commission.
My $500 pack comes off the left over profit, which I get paid on. $50 for fuel, even though we don't usually put fuel in used. $1200 for safety, smog and detail.
In the end all those charges are designed to screw me out of a commission, not the customers out of over paying.
Go to your credit union/bank and get your loan. You will know your credit score the interest rate and payment amount. NOW YOU HAVE THE POWER !
In other words, sell a kidney and a finger to buy a new Silverado. Maybe throw in an eyeball if you want to get the limited edition. 🤷🏻♂️
May as well throw in your second eyeball so you don't see the price you still have to pay after your kidney and finger isn't enough.
Herman Wooster 😂😂
Welcome to Kentucky where you truck payment is double your mortgage
Don’t forget the registration where once a year you pay your mortgage payment to the state to even drive the truck.
Lmao it’s a shame
Bro I'll take that over California 😂
Scotty Kilmer would laugh someone to death for paying even 35k for a new Silverado.
Rev up your engines
@merced256
Haha ikr cheap Chinese made junk.
Scotty Kilmer is the man!
Scotty Kilmer is a lunatic shill, but he's right on that. I bought my last one on 2008 for 30K. Still have it and likely never buy a new one again. These prices are an outrage.
I have a 2010 silverado with barely 100k miles on it that just started having oil pressure issues. Bad lifters, engine sludging by design, VVT, total piece of shit engine.
They ruined a perfectly good engine.
Dude , you are a rare bird , with that said , thanks for your honesty . Your dealership treated me very well , I feel as if everything you just shown was spot on , I now own a new style "19" RST Z-71 . I was very comfortable during my purchasing experience , and felt at ease looking at the figures as it was explained . Great video , keep up the great work .
So you paid $50k+ for a new truck?
Nope , stickered out at $ 48,780 , priced down to $ 36,330 , Put some cash down , came out happier than l expected.
Good info and understanding how car dealership like to charge what you don't need. Good straight up information for customers to use in purchasing a vehicle
You lost me at "to be honest with you"
😂😂😂😂😂😂
Cost of vehicles or monthly payments=TDM. (To Damn Much)
Forget conquest or down payment assistance. I just want the Kramer painting thrown in.
I bought a 2011 Ford Fusion in auction $1200 after shipping and the body work it ended up costing $2400. I can't imagine paying that much money for a car. However, this guy is amazing for breaking it down for everyone. If only more car dealers and salesmen were honest like him.
I watched your video a lot I finally managed to go and buy a new family car. Your video helped me a lot
Guess I will never own a new truck at those prices. My trucks nicknamed Rusty but Trusty. Lol
Sadly yes interest does change everything. Forget the banks!
Forget auto loans. Never again will I borrow money for a depreciating object. Buy what you can afford in cash.
Ben Kuhns Yep. Get a 3 or 4 year old vehicle for 60‰ of the new price and pay cash. And if one of Biff’s corrupt salesman colleagues insists on talking payments instead of total price, walk away.
The other way to do it, is refinance with a different bank after you get all the discounts, my bank is giving me a 4.5 interest rates. I had no trade in, but I did have $10k for a down payment.
Sticker price was $39.999 for the 2019 RST, Z71, Silverado. With the 5.3.
I really wish Chevy had more cars i like or you would have a sale because I really like you bro you are one of the few salesman who are good guy
i came in to a misson chevy dealeship and was told i my best offer was going to be to pay 747$ per month i said no ty and walked out the guy called me back 3 hrs. later and gave me 685 $ payment and i took that offer on a 2019 Silverado still a bit high but i love this truck im happy the guy called me back
DONT BUY A NEW TRUCK. In 2015 right after when the new model silverados came out in 2014 I really wanted one so I went to the dealership and the salesman tried to sell me a 45k$ brand new truck, I said hell now I couldn't afford that so he started looking for a lesser well equipped truck with the little doubt left cab and bare bones. I looked at their sister dealership 15 miles away and they had a used 2014 new model year with 22k crew cab 5.3 2wd for $30k. saved myself $15k. Buying a brand new vehicle is absolutely the worst idea you can possibly have. Buying slightly used will always save money. these vehicles literally depreciate the minute you drive them off the lot. I love my truck by the way. I only wish I would have bought a 4x4
James Cundiff I really don’t see why buy a truck without 4x4
@@Amir-ie2yz at the time I didn't see the point because I live in Florida and we dont have any snow and I dont ever go through mud. I have a bad ass Brute force 750 quad that has actually pulled my truck out of mud. If I buy another truck its going to be 4x4. major regret
Totally agree with not liking the GMF Down Payment Assist…my customer’s see it on TV advertising, ask for it as part of the write up, and then have to immediately re-finance due to GMF’s high rates.
I’m a cash buyer, but I also don’t buy new, just can’t take that depreciation. I’m curious though, is there any penalties or anything preventing a buyer from financing for the DPA then paying off in full on the first payment?
@@jonmacdonald7140 there are no pre-payment or early payoff penalties. 99.9% of my customers either write the check to pay it off in cash, or refinance at a much lower rate with their local bank or credit union.
Amazed can still find folks willing to buy new from dealer. So much negative equity driving off lot.
I just bought a new 2020 v6 Camaro and I sold my 2009 v6 Mustang with 109k miles on it.
I got two cash offer quotes from Kelly blue book and I will never try to sell a car to them again.
First offer was $2900.
Second offer was $2500.
Then I sold it to Carmax for $4500.
I made a down payment of 15k and did a 6 year loan with an interest rate just a little over 2%.
I went ahead and got the extended Warranty that last the duration of my loan and still have a payment of about $275 a month. 😀
So far I love my new Camaro. 😀
Just bought a new 2019 Silverado 1500 custom for 25k and I'm beyond happy with it, I just needed a bigger vehicle for the family and this works perfect I'm not lifting 5k loads or anything like that just liked the truck and bargained with the dealer and won :D
After the 84 month scenario, $684x84 = $57k on a vehicle that was purchased at $45k. Lol, that’s $11k that could be one hell of a vacation or put into retirement.
Or some amazing upgrades for an older model.
Yes but how do u know ur going to be alive when u retire
Youre getting screwed no matter what. Dealers always make a fool of buyers.
zepole87
Did you not realize you were a fool before you bought a car ?
Amen!
Just keep your clunker, save up cash, then walk in the dealership knowing you're the boss!
Im no expert Im no rich dude. But here’s how I went about getting my used car financed.
Not everyone can afford to just save up and pay cash for cars. If you can, more power to you.
Don’t finance with the dealer. Go to a credit union, bank with them if possible. My interest rate was 2.2%
No prepayment penalties
I got a car about 3 K under what I was approved for.
I made sure I was able to afford double the minimum payment. Never pay minimum payments. If you can’t pay double the monthly , re think your options.
Im no expert. What do I know. But this was the smartest decision I made for myself. Payed off the car a year before the term was over.
I love your channel...... You make everything seem pretty clear when he talk about it but I love that picture frame of Karmer from Seinfeld
I was wondering if you would talk about the 4 square and how terrible it is
There is nothing terrible about the 4 square. He's talking smack to sell you on the method his dealership uses which is actually designed to make you focus on payment. Notice how his sheet gives you 9 different payment choices, based on 60 months, 66 months and 72 months, then a payment based on those months with $0 down, $1,000 down, and $2,000 down? That is designed to make you more focused on the payments. No different than a 4 square. The only thing the 4 square doesn't show is what the tax, title, license & doc fee is, but that is included in the payment shown on the 4 square. The total breakdown that shows everything like his sheet does is shown on the reverse side of the 4 square sheet which is filled in once the customer is good with the purchase price, minus rebates (if any), the trade allowance (if there is a trade) and the payment. Its not designed to confuse anyone with anything. Having been in the car business myself for 16 years I have used both methods and I can tell you the method he uses showing you the 9 different payment options is by far the easiest way to confuse a customer and keep them focused on payments. That is designed to deflect their attention away from the selling price and the trade-in value. Like he did say which he is correct about, is that most buyers are mostly concerned with payment. If they are good with the payment they buy. If not, they don't buy. As for trade-in value, a good way to see if the dealer is really giving you the amount they are showing you for your trade and not playing games by showing you an over allowance is to tell the dealer you don't want to buy the car, but you will sell them your trade out right for the amount they are showing you for your trade. If the dealer is willing to buy your trade out right for that same price they showed you, then you'll know that is the actual cash value they are really paying you for your trade. If they balk by making any excuses that they won't buy your trade out right for that price then you know they were playing games by over allowing for your trade. Remember what he said here in the video about trade-ins? Prices are high at the auctions which is why they offer that $2,000 extra for trade-ins on top of the actual cash value. If that is true then the dealer would be more than willing to buy your trade-in out right for that price, unless they are over allowing for the trade. What is over allowing for a trade? That is where a dealer shows you more for your trade than what they are really putting into it. For example, if the actual cash value for your trade is $3,000 and the dealer shows you $4,000. How are they able to show you $4,000 if they are really only giving you $3,000? They are taking the extra $1,000 from the mark up they have in the vehicle you are buying. For example, if you are buying a $54,000 vehicle, there may be $4,500 in mark up between dealer invoice and MSRP. The dealer may show you a selling price of $52,000 after discounting the MSRP price, where the dealer still has $2,500 in mark up left. So they will take another $1,000 from that $2,500 left in mark up and add that to your trade value by showing you $4,000 for your trade instead of the actual $3,000 they are really paying you for it. The second biggest thing people get hung up on besides payment is the amount they are getting for their trade. This is why a lot of dealers show over allowances for trade-ins, which just basically means instead of showing you the real price they can sell you the vehicle out right for, they are holding back part of their mark-up so they can show you more for the trade. Most people get more hung up on their trade than they do on the selling price. Payment and trade value are the two biggest issues that most buyers get hung up on. Then down payment, then price. The 4 square actually has LESS confusion, not more, because its very basic and simple for everyone to understand. The complete breakdown is always given regardless of which method is used. Everyone has to pay the tax, title, lic & doc fee. The payment always includes that. The 4 square shows the all the important factors that are all subject to negotiation. MSRP and the Purchase Price which is the top left square. Down payment if any which is the bottom left square. Trade-in value which is the top right square, and payment which is the bottom right square. All for are all of the things subject to negotiation. The tax, title, lic & doc fee is not subject to negotiation. The tax will be based on the Purchase price minus trade-in value if any, then any rebates will be deducted from that total. The tax is calculated before any rebates are substracted. If you are trading a vehicle that trade value gets deducted first from the selling price before tax is calculated, which means you are saving sales tax based on your trade amount and that is a factor to consider when trading or selling out right. If your trade is worth a lot of money then 6% sales tax you save on that amount by trading in the vehicle may make it not worth the hassle of selling it yourself once you account for the sales tax amount. For example, if you your trade value was $25,000 and sales tax is 6% for your state, that would be $1,500 in sale tax you save by trading it in on the new vehicle. That means if you were to sell it out right yourself then you will need to get at least $26,500 for your vehicle just to break even on what you would get from the dealer by trading it in. You have decide if its worth the hassle to sell it yourself to try and get an extra $1,000 or $2,000 out of it once you account for the sales tax savings if you traded it in.
@@johnlyn1 4 square is a bunch of bullshit.I was taught it 30 years ago when I started in car business.
The 4 square is the only thing at a car dealer that is square.
@@tommytruth7595 Whole goal is to get the customer to say yes to anything then they try to get in your wallet
Buy only what u can afford.
Not everyone can get that 60 k 80k 100k Vehicle
Then u wonder why u upside down when trading in for the next new ride
That monthly payment is a house payment lol
I like your honesty ... don't like sales people who think your stupid great video keep I'm up
Trading in is easy, sure, but you’ll leave a couple thousand on the table. Example. Trade value for a minivan I had was $5000.....I sold it in 5 days for $9000 on Kijiji. Took the full $9 grand and put it down on the Vehicle I wanted. 🤷🏻♂️
Great Advice wish more would watch this do to was very helpful.
Very.
Thank you for that, now you have to add on the price of insurance.
And poor fuel economy, and depreciation, and lost opportunity cost on the cash
Damn. This makes me wish I had just bought a cheaper, cash vehicle than being stuck with payments for 5 years 😩
Keep your head up, at least you didn't do the 7yr option.
Yeah same lol
Great comments and better information.
Keep it up.
Hello from San Antonio Texas.