Good observation or relay from where you got that idea. Accurate. All of life conundrums ripoffs and unfair practices to whatever level goes back to the dual citizenship International bankers
It's a system. This is why modern BMW and many MBZ are not feasible to own today outside of warranty - they're painful complicated and designed that way to keep your balls in the dealers vice. It's well engineered to be utter trash in the long run but buttery smooth before the warranty blows out.
@@BillFrazier Good luck w/ that...Inside of 5yrs you'll need a new battery pack...Cost is 2-3× the value of the car by then, plus disposal fee...There goes savings on gas...could of bought a 10yr old beater & done as good...at 32mpg...
@@noobmeetspro9738 Interest is applied every payment. say the loan is 10k for 1 year to make the math easy. youd think OK 10000/12 months is $833.34. so if I pay that 12 times I give you back your 10k no sweat. however you have to lose something for not having 10k upfront and needing the loan. This is called the interest rate and is calculate on how risky the loan is to the person with the money. If you have bad credit then the rate is higher meaning the loan COST more. What do I mean by cost? well the 10k you borrowed went to the dealership and you got the car, but how does the loan company make money? They just lent you money and then got it back. They apply an interest rate of say 5% to your loan. That means that you will actually end up paying $875 a month, an extra 41 bucks, for a total loan value of 10500. that extra 500 was the 'cost' of the loan. And basically for each payment you make you basically are eating up a month's chunk of the loan value and a month's chunk of the interest profit the loan will receive. That is why it is advisable to pay in cash or payoff the loan as early as possible to reduce this number. The bigger the loan amount, the longer the loan term, and the higher the interest rate, the more money the loan will cost you in the end. I am in the middle of a 4 year 12k loan that has about 10500 left to go. On the website it says I can payoff the whole loan with 10661. Why is it higher than what is left on the loan? Because technically you don't actually pay the interest off while making payments. You only do a small percentage,so if I wanted to stop making payments and pay the whole thing off, they want me to pay all the interest I've accrued. Kinda shocking but yes my loan is already gonna cost me 150ish and started at 12k and is now at 10.5k. If I wait full term I'm sure it'll cost me around 1000 or so extra but plan to pay it off early. Hope this helps. You can only escape credit card interest by making payments btw. The interest I explained above is for loans only
FIRST car purchase. fantastic experience. no dicking around. they honestly worked to get me out the door with the car with no shenannigans. Second Car purchase. Nightmare. seemed to go smoothly till I realized they over charged me almost $4000 for the car. I agreed to pay book value for the car (used 2016 Leaf) but they claimed it was an SL when it was actually an SV. (the cars are not badged) ie they lied to my face. I asked about the missing leather seats. (SL I thought came with leather standard) they said it was an option. I was ok with this since I don't like leather I prefer Cloth) SO they robbed me for $4k. fuck that place.
My girlfriend (at the time) and I went to a local Honda dealership looking for a used car for her. I knew that they had a bad rep, but never dealt with them, or any dealership at that before. I told them her budget was $10,000. They showed us a fairly new model Nissan Altima, let us test drive it, then told us it was $10,500. He explained that the payments would be $270 for 72 months. Left us sitting there for about an hour while he supposedly talked to his sales manager about bringing the price down, came back and tried to muscle her into signing the lease. I told her not to do it, pulled out my calculator and did the math right in front of the salesman. I could see the panic in his face. They tried to sell us a $19,500 car and lie to our faces that it was 10,500. I asked him if the interest rate was 100% or if they were just lying. He tried to affirm that it was still only $10,500. I told them that I appreciate them wasting our time and we left. Shadiest shit I’ve ever seen.
Me too. At any time I have bought a new car I work out what I want to pay. Maybe a trade maybe not, but i never borrow from a dealer. I just say two things. 1, Do they want to sell me the (chosen) vehicle. And 2, If yes I then tell them what I will pay, gross. from then on I DON"T budge. They will run to and fro working themselves to a frazzle. Two things will happen. Either they will say can't do that and the body language will tell you to move on. Or if they start farting around, you've got them. May take a while, for when they finally ask what you will pay, viz, an attempt to come up to their new suggested price, you just politely and quietly repeat the same price that you have already quoted, probably for the umpteenth time ,viz. the first offer made at the start. What ever addon's or takeoff's there may be financially, none of my concern. BUT you must be prepared to walk. - Ever played poker?? - Oh, I find I usually win. But you need to make a realistic offer in the first place. I will endeavor to slide in a little comment at some stage,- It's better you make a dollar profit than no sale at all. Not true but they will get the drift.
The end result is, you still don't have the vehicle you need and your time is wasted. What's next, do the same thing over again at the the next dealership and pat yourself on the back for still not having a vehicle in your driveway at the end of the day? The point is, if you listen closely to what's stated in the video, it fails to explain how to get to a point where a car can can be bought outright, without financing, and at the price you want to pay.
I bought my truck last year. The dealership tried to charge me 800 dollars for filing fees and I refused. They said “well that’s what we charge everyone”. It was a deal breaker for me until they lowered it to 400. It’s the simple principle.
@@RedondoBeach2 Actually he did, right at the beginning of the video. A simple statement of no, I won't talk payment or financing, until we have reached an agreed price, and then I will only speak to the finance guy about that information. The salesman does not need to know about your real particulars regarding your credit worthiness or available cash down. That is for the Finance office, after an agreed price has been negotiated. And negotiation is where the price you want to pay is settled upon. Much of this will come from the "Desk", which is managed by the sales manager or a dedicated Desk Man/woman. Once an agreed price is reached, lots of shaking hands etc by the salesman. Then you go back to the finance office, where they will try and completely restructure the deal and sell you additional products like "paint protection" or sound proofing under the car, or extended warranties and the list goes on and on. And since they are also going to try and convert you to a payment plan instead of the original agreed to price, this is one of the ways they make extra profit. Paint protection for instance, is in the several hundreds of dollars, for a basic "wax job" back in the detail shop. What a scam! Sound proofing on most cars these days, is added at the factory. What are they going to do in a dealership? Spray on tar on the bottom of the car and usually make a helluva mess with it. Fore go the added cost. Extended warranties.... well that one is on you. It depends on the car, the reliability of the brand and the model, and pay very close extra attention to what is really covered in that warranty. If the car has a decent warranty on it, and a good track record... do you plan to take the. car out and abuse the hell out of it? Those are questions you will have to answer for yourself, but I'm sure he has probably made a vid on whether or not you should purchase extended warranties. Bob
Or you could get a private seller like i ran into yesterday. It was a well priced, high mileage Pilot with "just a sensor light on." Went to look, on test drive he said "Sensor causing a stutter at 25 then it runs fine". Well, as I accelerate onto highway right at 25 BOOM, his "flutter" was a slam. I now notice the green gear selector "D" was flashing. OK, so the guy didn't look too smart but he HAD to know the thing was missing 3rd and 4th gear (it was running 3300 rpm @ 60mph). This is just a story to show, sometimes dealing with a dealer isn't always a bad deal because USUALLY they have at least a small warranty. BTW, a "new" Pilot tranny is $3500 making the "good deal" unacceptable.
XaZa A friend’s neighbor sold cars all the time. He was really a neighborhood car dealer. Just sold them one at a time and not from a lot. You’re not always getting someone’s old car that they didn’t want to trade in.
I went through a scenario similar to the one presented, "I'm not talking financing until the deal is done and I talk to the finance person," and then basically said I was paying cash when we finalized a price and what I was or was not paying for. The finance guy balked and by the time I got up and was out of the showroom and halfway to my car his manager was running out to me. I waved him off and went to the second dealer on my list. Was at the second dealer for 15 minutes, essentially followed your script, or at least one like it, got my options, got my price, wrote a check at the end, and had the vehicle delivered the next day. And used the interest and fees I did not pay and took my family on vacation.
I'd have first asked the guy chasing you if he's willing to knock another few grand off the price for wasting your time. Could've gotten an even better deal.
When I bought my car we had to negotiate for nearly an hour, when we finally settled on the price, they wanted to draw up the financing papers and then I said I was paying cash for the previously negotiated price. The tone changed immediately, they were so mad and rude after that.
u know, my cousin did that at a mercedes dealer, negotiated for a price he wanted, and in the end took it cash pay. The issue is whenever he went in for his service intervals, they would add a scratch, in the door jams, on the door, roof, undercarriage, just trying to expose rust spots
Silver Lightning Remix For the love of God, if you buy a car from a crooked dealer and manage to stick it to them on the final sale price, you should never, EVER take it back there for service! They've already shown you how they feel about you. That's a bit like insulting a rude chef right before you order your meal. You've just guaranteed he's going to spit in your food.
@@babybirdhome I couldn't really say much to my cousin. But I'll say in instance I had this issue. long before my dad bought my brother's 2017 corolla le silver paint. He did negotiate the price of the car, got 2k less, and 0% apr, but came time to do oil change, took the car to dealer, they scratched the door panel, didn't notice as it was passenger door and only brother drives. The blunder they did is when I took it for its 4th oil change, they hard scratched the mirror, like in the sun i thought it was cracked. I spoke to manager he said "you probably have jealous neighbors" I spoke to head quarter (usa based) they yelled at dealer, and closed that location only to open 5 miles away, same ppl. just so their reputation isnt tarnished. Now, fun fact, when I went to buy my car (2020 Corolla SE ) at Naperville Toyota, the guy who worked there, used to work at Thomas toyota. it turns out he quit bcs 1, that dealer profit was equal to its loss, 2 they bought accidental cars (like fire damage or salvaged), refurbish it, overwrite title, assign new vin number, and sell the car at new car price. I checked my brother's corolla vin, 4 other cars (2 came from this dealer) have the exact same Vin number. Now as for Naperville dealer. Though I can get free oil change (bought the car July 20, 2019, as of today has almost 13k miles) I changed the oil myself at 3k mile intervals. and went with Mobile 1 oil as they are the only ones with 0w-16. The day I had to take it to the dealer due to fuel pump noise (thought it was engine as noise happened cold start below 30 degrees) it was normal, I took the car in, it was nice and shiny, I detail my car as well, washed it the day before, vacuumed it, applied a Hybrid ceramic coat (like car was MIRROR shiny). Had to leave the car overnight (was mid Jan) came next day, they change fuel pump and car was filthy on outside, salt everywhere, on body,on roof (idek how tf that happened) which pissed me off as I returned their Loaner Rav4 in the condition I got it, clean, salt free. so ye, for every car I now buy from dealer, I'm doing maintaining em myself to the extent that I know (brakes, oil, coolant, radiator, calipers, rotation, wipers, the basics, I do plan on going to UTI when i have the time so I can do stuff like engine rebuilds and all that) tl:dr I bottom line don't trust dealer even on service intervals on warranty simply bcs the fear of scratches and rust slapping my car after the incident with my cousin and my brother 2017 corolla
"Don't be afraid to walk..." I have closed more deals by standing up, thanking them for their time, & heading for the door. Funny, how I never reach it.
Gordon Welch ; You either don't know how the real world works, or you're a salesman. You would walk away from a bad deal yourself, so don't criticize me for doing the same. No respect for trolls.
@@vgordonw The longer you sit there and talk to them the more the salesman knows you are interested. It decreases their incentive to lower the price. If you start to walk they know they need to do something to get you back. By staying there you admit you are fine with the deal as is.
Here is the biggest tip for negotiating. Become perfectly ok with awkward energy/pauses/silence in the room. The reason most people are not any good at it s because they are 1. Too agreeable or 2. Cannot stand a pause in the conversation or tense energy between them and the guy that just spent the last 30 minutes pretending to be your friend.
Last time I bought a car: Dealer: And there will be a 500 dollar window etching fee. Me: Let me see that. (Looks at paper) It says here it's optional. Dealer: Yes, but they already did the etching. Me: So it's not optional. Dealer: It is optional but we already did it. Me: So it's optional, just not optional for me? (At this point he noticed I was going to put up a fight) Dealer: Tell you what sir. I can't retract the 500 Dollar window etching fee because it's already been etched, so I'll reduced the sale price 500 for you. Me: That would be excellent thank you. Dealer: No problem. I have your loan forms right here. Me: Oh. That's okay. I'm paying in cash. (Dealer looks at me like I just told him his kids died)
This exact thing happened to me with my first car. There were a couple "extras" that were added right at the end and they initially told me they couldn't remove the fees because the work had already been done. I stuck to the original price and they took the fees off.
I had the exact same story a couple years ago when my wife got her new car. Similar window tint thing, ours was 600 bucks. And we paid cash with the guy dead inside face
Internet buying from a dealer is a similar scam. You search and find the exact vehicle you want and send a notice to them that you're coming to see the car. You show up and all sorts of dealer accessories are added. Undercoating, Floor mats, Roof racks,
@@lenoretalon9958 Lithium-Ion battery fires are no laughing matter but honestly a Tesla has less hazardous materials in it than your standard internal combustion car. Think about it an internal combustion motor has 5-6 quarts of oil, a gallon or two of antifreeze, 10 quarts or more of transmission fluid, power steering fluid, freon, brake fluid, a lead acid battery, and on top of all that 20+ gallons of gasoline. A Tesla has what? Freon, maybe some heavy gear oil or grease, break fluid, and batteries. I looked up the emergency response guide for the tesla model 3 and their main concern seemed to be how to disable the high voltage system for first responder safety. No Hazmat team required. I am personally not a huge fan of EVs but your info seems to be wrong. I have also received OSHA 40 Hour HAZWOPER training (literally hazmat team training) and not the online version, i am talking dressing out in SCBA packs and full level A bubble suits. I see no reason why a specialized response would be needed other than maybe some training to local firefighters on how to disable the high voltage system.
My dad owns a dealership and he enjoys cash buyers, he understands that they have money and can go somewhere else. He will give them thousands off the vehicle for paying cash.
I feel like this is mostly an american thing. In parts of the world things are more amd more set up that paying cash is either simply not accepted, or that you somehow feel wrong or dirty for doing so. Ngl but ik and umderstand the pitfalls of a potential cashless society, but have been considering also its advantages and ways tp navigate around it fpr some years now.
@@idealicfool Not quite so. Paying in "cash" simply means that you will pay everything in one transaction, no financing at all. There is no problem to buy a car like that in Europe, at least that I know of. You simply make a bank transfer and done (obviously you will not walk around with 40K EUR / USD in a suitcase, it is kinda logical they won't accept that). My colleague has just bought a new Volvo and that's exactly how she paid for it. (36K EUR)
Steve Ramey the name and credibility is worth far more to him, he just wants to help others while still making money, he figures if he loses out on some money it’s alright because there aren’t any bad reviews then
Learn about cars and it becomes incredibly easy to buy one, from anyone. Find a car you like and research everything about it; problems, pricing, availability, resale value, etc. Information that will give you leverage when buying a car. Also study the different packages available for your car, a lot of dealers will try to sell you a lower end spec vehicle to make more money. When I went to buy my car, they first pulled around a lower end version of what I wanted, so i played around with them, wasted their time, then told them I wanted the one I came there for, a fully loaded spec. Which was listed at the exact same price as the lower end one... lol. Dealers make money screwing people, there is no way around it.
its hell for the person that doesn't do his or her homework, cause the salesman has already done his homework and waiting for u to pull up on their car lot, so don't be a dummy and do your home work, unless u like getting ripped off.
EDD W. Tips on buying a car (it’s not worse ) banks have your back they won’t let them sell a car that’s over priced because when you can’t afford it or decide it’s not worth it they take the hit not the dealer . Have good or strong credit .stay away from mom and pop used car lots there animals and finally go on autotraders, cars.com or carguru and compare prices. Finally remember that salespeople are just people that have more exposure in the car world but the just people and if they are dick request someone els and make sure they get no commission (if you don’t like the terms of a deal I promise that there will be a car with the same miles somewhere near at a reputable dealer just got visit and re negotiate price with the web tools above )
Thank you for this post. I recently went to a used car dealership here close to my house. I was shopping for a car for my son and this would be his first car and also a graduation gift. I was set on getting him a honda civic since they are cheap, good on gas and cheap to fix when you do manage somehow to break it. Anyhow we went there and seen the perfect little honda sitting on the lot with $2400 on the window. The salesman gave us a walk around. We test drove it and decided this was the one. Now we are at the table. I asked if I could get the car for $2000 he countered with $2200. Deal. Now comes the finance guy asking me to fill out credit forms. I pull the cash out of my pocket and he says "we don't make cash deals we only finance. I was blown away and was getting ready to walk out but I asked what the finance charges would be. After we were done adding it all up it was "only $48 a week" (turns out it was a buy here pay here place) I looked at the term and I was purchasing a service agreement which they did in house(also required). and the loan would be for 3 years. I Was going to pay $7488 for a $2200 car that I had cash for that day. What a sham! I just got up and walked out.
Nothing seems shady here. They're a place of business and sell cars however they want which is their business model. You saw the numbers, did the math and realized it wasn't the deal for you. So what? It's not like they lied to you, they presented you an option and it wasn't for you. No big deal.
@@Durva360 What you're trying to imply really isn't an honest question. Every service and every product has a margin that's retained by the previous party in the economic food chain that eventually delivered that car to the dealership. Same can be said about nearly any product or service - that's how any profit is generated. Compared to the food you may buy or other products you may pull off the shelf at consumer-fixed prices, a car's sale price is variable. Now if you were directing that question to a representative of 'Big Pharma' in the US, I think your inquiry could be justified. The price of most of medication in the US market is completely inflated for the same products that are sold elsewhere in the world, despite coming from the very same distributors. Just my 2¢.
@@mike34744 my best friend used to sell cars and did great. I asked him one day why he stopped and changed careers. He said "because I can't sleep at night because I have to screw people. You have to, to be a car salesman. Old people, widows, whoever. I can't do it anymore" .
Stood my ground, Told the salesman up front, AFTER he told me what his BEST offer was, exactly what I was willing to pay. Absolutely no Higher. Negotiated what I felt was a "fair" price in a car. Approx $5K off the sticker. Salesman let slip (?) there was an additional $1k rebate if I was to financed it through their finance company. So now I was $6K off the sticker. Accepted it for the longest loan term available. Took the car home. The first business day called the finance company and inquired as to the pay off amount on the loan. I immediately wrote them a check for the payoff amount. Sometimes it's advantageous to finance "smartly" and still pay cash for the vehicle. Maybe got a good deal or not but I was happy and felt good.
Did something similar with a $3000 mower. Tractor supply offered %10 off purchase with new credit card sign up. Signed, bought, trailered it that day. Paid off before the 1st month with no interest and $300 off the shelf price.
Nothing is free my friend. You should know the interest rates before you go in because if they sell you a loan for over market rate they will get a rebate back from the lender, which you’ll pay for in the end. Also, make sure there is NO prepayment penalty.
Buying a car is so stressful to me, I wish dealerships weren’t so greedy. Buying a car is supposed to be a fun and exciting experience, especially if you are doing it for the first time.
The dealerships are not greedy, its certain sales staff. i have had multiple people of the same family and many repeat customers just because i give them what they are looking for in a vehicle with the best experience i can give. kinda upsetting you think its all of us
I go in the dealership I tell them I have excellent credit and a good down payment I can go anywhere. I always end up partially dealing with the manager. I also find out what the last day of the dealerships month is because some places get extra bonuses if they sell a certain amount of cars and a lot of time they are 1 or 2 cars away from reaching there bonus and will sell the car the lowest.
And this is one of the reasons why I purchased a Tesla. No middle man to deal with. When you buy a Tesla you’re buying directly from the manufacturer. The price they advertise is the price you pay. I financed directly through my credit union got 1.89% rate. They even delivered the car to my home. I’ve owned the car for a little over a year now, driven 28k miles, and haven’t spent a penny on maintenance. They do not require oil changes (no oil), don’t have spark plugs, timing belts, etc. less moving parts translates to little to no maintenance. Test drove the car on three different occasions before finalizing my decision to buy, didn’t feel any pressure to buy from sales staff. Absolutely the best purchasing experience I’ve had and absolutely the best car I’ve ever owned, and I’ve owned many throughout my lifetime. Speak to any Tesla owner and you will hear nothing but good things. Oh, and notice how, unlike other companies, they don’t spend a penny on advertisements. All their sales are through word of mouth and reputation.
Yep. We got tired of them giving us a bad deal, so ignorantly we asked “what’s the price if we pay in cash?” Things went from bad to worse. Wish I had seen this video a week ago. Would have saved me 6 hours.
I can't wait for Amazon, Costco, etc. to put the dealerships out of business... all the games you have to play just to buy a product are ridiculous. Just list your price like virtually all other products.
The only industry that I can think of with worse predatory practices is the medical field. At least with a car you have a rough, ballpark figure so you have a decent idea of what you're getting into. When you get a prescription, procedure, examination or whatever done, you never know what it's going to cost until the bill comes in the mail or if your insurance will cover it or not until well after the fact.
Dargonhuman the predators are the insurance companies. They are willing to take your $500-$1000 a month, yet not cover anything but a routine check up once a year. The fees are flat and unchanging coming from the clinic, what your insurances covers, changes week to week.
Fake Bill Burr Or when you're weighing your payment options because you actually have payment options. There are times where I could pay cash for something where I finance anyway. It depends on the opportunity costs. If you can do something with your own money to make money, or make the same money using someone else's money, make it with someone else's money and use yours for something better than buying a car.
Yo Pappy I work in car sales and I try my best to be honest and treat people like I want to be treated. But I hate people who just come in and be rude to me for no reason cause they believe we as car sales people are below a customer class. That’s bullshit and people suck
@@jeffkuykendall3189 Yes mean people suck. But keep in mind, treat others as you want to be treated. Also please forgive the people that were rude to you. Carrying around the hurt can't be good for sales!
It's actually worse than saying browsing. Browsing implies they _might_ have a future fiance sale if they show themselves well. Cash is they're screwed no matter what. edit: typo
No, "I'm paying cash" is a way of telling the dealer they're dealing with someone who they don't have to work out financing miracles to make a sale for. It's more like jumping into the ocean surrounded by sharks, but slashing your wrists first. All that does is chum the water and tell them they have a fool they can part from their money and not have to worry about where it's going to come from.
I'm still looking for that used car with 150k miles on it that was "driven exclusively to church and grocery store by an old lady" without transmission damage and tuning.
@@Mic_Glow you missed my 2002 E320. I sold it in December with 60,000 miles. and 18 year old car with 60,000 miles, garage kept. driven very lightly by my wife. it was a peach.
I am actually one of the few honest car salesmen in the industry. I am also a ASE certified mechanic. I work at a very small dealership so I do the buying, selling and repairs. I am 100% honest with my customers. But 99.9% of the car business (repair or sales) are fricking snakey crooks!!!
According to the Reserve Bank's website, coins are legal tender for payment of amounts which are limited as follows: Not exceeding $5 if any combination of 5c, 10c, 20c and 50c coins are offered; and not exceeding 10 times the face value of the coin if $1 or $2 coins are offered
I actually love when the dealers come at you hard. They are usually the ones that are harder to negotiate with, but I smell their desperation, and they will usually go lower on the price.
Makes it a bit more satisfactory when you end up getting everything you wanted too...and then you finish them off with your own financing or cash at the end.
My wife and I actually notice that too when buying our truck in 2015 lol. We just about got up and walked out of our negotiation and the dealer ended up just accepting our offer lol. We saved thousands.
We use Car Gurus, that way we get the best price, get a premium authorization from our credit union, go in test the cars on our list, and say "no" to extras. So far it's been a much happier experience!
NOTICE TO VIEWERS: Many of you have asked about luxury or premium car dealers. Should you expect something similar from them? Lexus, Mercedes, BMW, just to name a few (there are many more). While it's true that similar things can happen, luxury car dealers have a relatively clean process as compared to a typical used car dealership. Just by the virtue of the buyers they see, mostly influential people with money, they already know they are dealing with a person who is savvy with money. You don't try to blow smoke up the tail pipe of highly qualified buyers and stay in business very long, especially when that's 100% of your business. So I would suggest to simply be aware as you already are, do your homework, and you can largely expect a nice buying experience at a luxury car dealership. Some of the customer service I've seen there is "off the hook" amazing. Feel free to comment below if your experience at any luxury car dealership was different.
You have a very enjoyable, clear and supportive way of explaining things. I can confirm, Mercedes dealership, for anything, will be a day you will remember fondly.. I would warn, they will try the whole "it's only 2.5%" in the selling a loan to you. You might think, I could just bank the price of this car in a mutual fund paying 5%, and this loan is now a no interest loan. But you won't do that. You won't want this loan any more than 2 months after you take it out. The thrill is gone. The hot woman who gave you the instructions on the Blue Tooth radio and the GPS is not returning your calls. Just say "NO" to car payments. Spend for today, consume for today, and buy Gold, real estate, even stock shares on credit. But not cars.
@@BrisLS1 That's funny, I got that whole "why not finance the car and use your money for investments instead" thing. I told the guy that I'd never had any luck with investing before and that probably wasn't going to change any time soon. He was a nice guy, though. Low-key approach, even though it was a Mazda dealer not a luxe car dealer.
I've bought 4 BMW at different dealers over the years and (in Canada anyway) have noticed a huge schizm between dealerships. Smaller cities with less volume tend to be very, very good. Larger ones in cities where they sell more units, or higher value units, tend to fall back on "common" dealership tactics. I've shopped Audi and Mercedes as well and they don't seem as bad as Bimmer. Maybe it's just the ones around me but my 540 is probably my last...
My husband researched our car and decided how much he wanted to pay for it (private or dealer out the door). We ended up at a dealer--it took about three hours of back and forth to get the car we wanted at the price my husband was willing to pay. I sat quietly and watched the back and forth haggling, the getting up to reconsider, and the absolute magic of seeing the dealer concede and sell us the car for the exact price, to the penny, that we were willing to pay. It was amazing to watch.
They tried to charge me that cash fee and I laughed in the salesman’s face. My wife and I got up and I said I will buy another car. His attitude changed very quickly.
In the U.K., a regular con at the end of the sale is when the salesman says “Oh yeh, and there’s the admin fee of £100”. They tell you it’s because they have to do checks on the car to make sure there is no outstanding finance on it and that it has not been stolen or involved in a crash. It will only cost around £5 to check yourself but the question you should ask is - “Are you saying you have taken in a car and you don’t know about these things yet”. The “admin fee” is just a nice little bonus for the salesman if he can get away with it.
I got that once. I had done the check myself and when he pulled this one I showed him the printout. He was adamant it was a “fixed cost” and I told him well I’m not fixed to this chair ..
Depends on the sales guy you are talking to honestly lol. Pompous customers say shit like that to me and I arm bar them. Its ALWAYS a cost deal,I'm not making more than $50, which I dont need, just like the prick customers,holier than thou, attitude. So I'll let him walk and restart the whole process over somewhere else. I work for me, not the dealership, just like customers dont care if i get paid, i don't care if my dealer gets paid off my sale, they make a grip everywhere else. So I'll kick people out that act like I should be kissing their feet because they came to my deal to try to steal a car. Makes my job easier, less stressful and ensure I have repeat customers that I actually want to see and enjoy talking to.
@@danteb925 interesting. I've walked away from plenty of entitled salesman like you. I like to be treated like a pretty entitled queen when I'm buying a new car. I guess that's why I only buy luxury brands now. They know their customers and pamper me like a bitch as I throw money at their faces. You sound like a kia or Toyota salesman.
@@constantlyjohno You mean lease luxury cars, because you're cheap and care what people think of you, lol. Know your worth, dealing with a snobby cockbite that will yield little to zero profit is a bad use of my time and I sure as shit dont need their business lol.
@@danteb925 sounds like you're in the wrong business buddy! If I could see you right now I'd throw a wad of cash at you and then buy a car from you anyway just to make you take that $50 commission. I mean, don't tell me you'd refuse to sell me a car??
@@constantlyjohno Hmm, seems like I'm in the right. Keeps me from having to deal with idiots, less stress, more money. Seems like I'm winning on all sides chief. The amount of time it would take me to tell you to kick rocks isnt even worth the commission bud lol.
I almost didn't watch this video. The title and thumbnail were so click-bait that I didn't think this advice would be real. But here I am, and glad I watched it right to the end. Understanding the history is a very helpful component of understanding why the business models have adjusted
My wife's car recently died, and I've been frustrated with the thought of having to deal with the car buying experience again. You videos were just recommended to me! Thank you for the tips! That's a new sub from me!
@UCwI6DdQsEjo_8dghbB3OZYQ I think car salesmen act that way because they have a lot more opportunities to trick someone into a bad deal and they know it.
@mike A NOT true- the cars are not evened owned by the dealership, just loaned on paper.. Many more where that one came from. You can get "invoice" less all the "holdback" and they still make 2500 on each sale.
@mike A It's not about what they make on a car, it's about number of units sold for the month. That's why the best time to try and buy a car, is the last week of the month. They're trying to move those cars. How do I know this? 30+ years working at car dealerships. The end of the month is hell for sales,service,parts,etc. Everything is about the numbers for the month. Period.
jamie5303 Actually my salesman at the Mazda dealership was quite good, finance guy was no worse than I expected. That dealership lost me on service after the sale. I guess overall Mazda has some of the lowest rated dealerships of all the major brands, which is a shame because they make some of my favorite machines
@@RedThunder0000 That's what I did last time. Made sure I had an entire day to lolligag around at a Honda certified used dealer in Delaware. I went outside, test drove it home, leisurely lunch at McDonald's, went back, chatted some more with salesman. It was a slow, fall beautiful weekday. I had previously noticed the car was on the lot a long time, probably because it was an Accord with a stick shift. We just sat around and chatted about everything *but* the car most of the time, especially the Beatles. This was 2010. He already knew I was paying cash. In the end I got about $3,000 knocked off the car's price and ended up paying less than I would have paid for a same age Civic with stick that sat right next to it! I preferred a Civic, but I wasn't going to turn down a bigger, cheaper, same age car with lower mileage. TIME IS YOUR FRIEND.
@@blue22inthe412 This is also true. Customers often fatigue themselves into buying something over a few hundred dollars that they end up liking a whole lot less than they thought over another car, OR you drive and look at so many cars over a long period of time that you can't even remember what the 1st car was like (which also ties into buyer's remorse like above). People: you have the internet. USE it. Find the car that best suits your needs online through reviews and videos. Narrow it down to like 3. Drive them all. Be willing to bounce to another dealer of the same brand if you encounter "THAT GUY" salesperson. Every similar class of vehicle is priced similarly, and that's not by coincidence. Find the combo of the car you like most/salesperson you feel most comfortable with and smartly work the deal. BE REALISTIC. Markups these days are no longer what they were, especially on used cars, although the virus is changing that some right now. It's YOUR money, YOU earned it. Spend it wisely, but don't pass up a great deal on what you want either to squeeze a couple hundo more when you're already winning and you know it.
I bought a car from a dealer many years ago and the financing just wasn’t coming through for some clerical reason, kept taking time, so I got fed up and told the salesman I’m just going to come over with a check for it. He had been so cool but turned very hostile all of a sudden. Told me I was lying there was no way I could just get a check that fast etc etc. Threatened to sell it from under me. I told him I have a signed offer and I’m coming over now and the car better be ready. I showed up and left with the car. I was so confused. Years later I ran into an old coworker who had gone into sales and was a sales manager at a dealership. I told her the story and she said yup, not surprised. It’s because you came with cash. I was like what? She said financing is where we make our money. We can make over a thousand bucks on a car with financing. Cash deal? Maybe 100 bucks. Maybe. I was blown away, but it sure changed the way I talk to salesman ever since.
Ka wi it sucks their are so many salesmen that do this, thank got our model doesn’t treat them this way. The salesman doesn’t get an incentive for customer financing but the dealership does get an incentive, it’s like a finders fee most of the time for writing the loan for a bank and as long as they make usually 6 payments, they get their incentive. So another trick when paying cash is to finance and when you get your first payment pay it off, but make sure to check the contract to make sure this is allowed because some banks do not allow this, also even tho I have never heard of this, make sure their are no finance charges.
When I bought my Ford Superduty, I did exactly what you said, except that I took out a 24 month loan, then paid the entire balance on the first payment..... 2.6 percent with no prepayment penalty.
I have done the same by getting the bad interest loan from the dealer to get the good price then made one payment and paid it off. I acted like I was poor and couldn't afford it even though I had money in my bank.
So if paying in cash is such a fight (and a bad deal) meaning you can get a better deal financing.... what's wrong with agreeing to finance (at any rate that gives you the best price) And then once your first car payment bill comes in, you just write a check to pay it all off?
I used cash for my last used car purchase. I walked in and said , " I would like to buy this car, I have X amount and its all I have . I've got 5 other yards to look today and don't have time to waste." I have never seen a personality on a person change so quickly. I got the car but in the end he basically said , "take the car and f@#k off' Even though I knew I got a great deal, this experience didn't make me particularly happy. It was a pretty shitty thing to go through.
I kinda did the same. I didn't say cash or credit. The company wanted $7,500 for a 2009 pickup truck. I said, "Well, I've got $3,500, and can get my hands on another $2,000." The guy says, "Ok, hang on a minute...." Goes inside. Comes back out and says, "Ok, we can do that." When I came back with the cash, they even dropped it another $500. So, I bought the truck I wanted for $2500 less than they had on the sticker. They said they had had it for a while and just wanted to sell it. You should have seen the owner's eyes as he watched me counting out the hundred dollar bills. Acted like he didn't care, but he did. This was a small used-car dealership in a medium-sized town/small city. So, results may vary....
@@afterhours39 , Just a few months ago I bought a 2009 honda pilot 4wd from a small private dealer on consignment. It was listed for $11,900k. it took about 20 minutes of negotiating, but I got it for $11,250 with their own 3 month 3000 mile warranty, up from a 3 week 300 mile warranty. It wasnt fantastic, but hey, they did it. I know for a fact that it could have sold for their list price. It wasnt a gouge, it was fair. But I had cash then and there.
That salesman and the dealership he works for should be put on full blast on the internet. Call me old fashioned, I think he should have been invited to come on down and get what he really DESERVED. Is that a threat? Gee F around and find out. I can appreciate you taking the high road though.
While it may not help a whole heck of a lot, some loan banks (I know ally auto does this) you can choose to pay more than what you agreed on each month to finish paying the car off sooner.
@@skimo274 be sure your loan is written to achieve that. My last car loan, the extra payments I made credited only to the next payment not off the principle bal. When I found out that I was 12 payments ahead but didn't reduce the loan balance I was mad. [Ha] I'm not sure those types of loans still exist. It made the bank a lot of money. Even paying the loan off early had a $3K Penalty. The next time I got a loan from the credit union before I chose a car. Now. I pay cash.
I purchased a new car about a year ago (I'm in Australia). I went to one local Mazda dealership and worked out exactly what car and options I wanted. I asked the dealer for his best "on road/out the door" price on that particular car, he asked how I would pay. I said "we can work that out later." I informed him that he would need to present his best price as I would be visiting other Mazda dealerships before purchasing. He actually came back with a great price, I thanked him for his time - went home and called the other 12 or so Mazda dealerships within about a 75km radius. I told them exactly what car I was after and for them to make their best offer as I would be shopping around. (Some dealerships were rude and said they would only deal face to face, I said thanks for their time and hung up). Once I had obtained the 3 lowest prices, I then phoned back and forth between those 3 dealerships seeing who was prepared to beat the current lowest offer. I eventually arrived at the lowest price. (From memory the original sale price was around $40k however the car i wanted was on sale at that time for $35k, I ended up paying $31.5k for my car out the door. The whole process took me about 2 days to go and view the car and make all the phone calls etc. I recommend buying this way as you can simply inform the first dealer that you are only hunting for prices. You can also hang up on the dealers you phone if they are being rude or pushy. I went in to sign the paperwork the next day and told them I was paying cash - they didn't seem to mind. Picked up my car a few days later.
One of my high school teacher used to work at a car dealership and he literally told us the exact same thing. Another he taught us was get the salesman to write their offer down and go to another dealer, inform them this was the offer given, then theyll make a better offer and get them write that down and keep going back n forth till your at a number your comfy with.
yea this seems like the best way to do it imo. always tell the first seller that you are shopping around for the best price and will get back to them once you compare with other sellers
I'd recommend going to an auction instead actually. You'll find that's where a big portion of cars come from and end up being tidied up ready to be put on a forecourt with the checks of course. I paid £1,425 for a 2010 Astra J with 67k miles on it, when on a forecourt it would expect to be average at £3,000. Do keep in mind you also allow yourself some money to put into the car yourself :)
@@southernkatrina8161 Yeah they said they would have to fill out a form if a actually handed them a heap of cash. I did the "cash payment" via bank transfer.
As long as there isn't an early payment penalty, take out the loan.. and pay it off in month #1. You get a better deal on the car, and a boost to your credit score too.
Paying off early drops your score. Making on time payments raises it. It makes no sense to me but that's how it is. My score dropped 27 points when I paid off my student loans in a big lump sum. I never recommend borrowing money, unless it's a mortgage. Definitely not for a car that drops like a rock in value.
Paying off early does not drop your score, but it won't raise your score either. If you keep your car for at least 2 years and then pay it off you will see a score bump, wait 3 years, a little bigger. In 2015 I bought 3 cars. Waited a year and refinanced all of them, my score jumped a few points when I showed 3 vehicles that were paid off. Then 2 years later I paid off one car. I only have 1 car I am still paying for, which will be paid off in October. The reason I did this was because when I became disabled I lost everything and my credit went down. When I got my mikitary disability and back pay, I had no credit. I had to rebuild. I had no GOOD credit history. Now it shows I have paid off 5 cars, and making payments on 1 so far. Plus I have 3 credit cards. I am trying to buy a house and want a credit score that will get me a good rate. I lost my house when I became ill. My score is now 742, and once this car is paid off it will go up. I want to get over 750 before I buy a house, so my rate will be good. 2021 I will be able to finally buy a house again. Been a long road, but I have been patient
@@michaelsutterlin6178 www.nerdwallet.com/blog/finance/credit-score-pay-debt/ Like I said, mine dropped 27 points. That's because I closed multiple accounts since I had many separate loans. Anytime you close an account, like a credit card for instance, your score takes a hit. Close many at once and you take a big hit.
@@michaelsutterlin6178 paying off too early DOES drop your score. I was told getting the loan was a hard credit pull so that dropped my score. I paid it off too early - 3 months of payments then I managed to sell a couple things to pay off my loan - and my credit score stayed low because 3 months of payments wasn't long enough to establish a payment history
Did just that last year. Got great rate after salesman conferred with financial manager. Made deal, saw paperwork with processing fee of $300,told them I’d pay today but no fee. They said no I got up and told them to keep it and they didn’t believe me. They then asked “today”? Got cert check and they had to make sure I wasn’t a drug dealer and held up for about an hour. Not as easy as it seems.
That's exactly what my sister and brother in law did. They are rich, cheap weasels.They argued for the best deal they possibly could get for a good 1-2 hours. After they agreed on the price, the salesman was ready to arrange financing the vehicle. My brother in law said cash. The dealers make a lot of money on the financing. Later, when my sister told me the story, she says, if they don't shake hands with you, after the dead is complete, you know you made a good deal.
works fairly similar with motorcycle dealerships. I bought a 2019 Harley-Davidson Road King Special last May. Yes, I paid in cash but I left that out until the total cost was negotiated and agreed upon. A very unlikely recommendation but I thank TH-cam for it. Great video and great advice
@jeremy Permenter thats great! didn't they try to subtly find out if you were a cash buyer before agreeing the negotiations? They never hinted or just wanted to check just incase so they didn't screw themselves over? Or did they literally assume you were a finance buyer all the way
@@demonraptor1 They could easily say said discount is if you finance. Which that kind of discount is advertised all the time. So if you choose to say cash instead, they remove the discount. No quote or anything is signed until they know the payment method.
A friend of mine was a GM of a dealership, gave me $500 for a trade-in that the dealership valued at $1 (as a favor). He sold me the car at the price the dealership bought it at, $3k off the sticker price. They lost almost 4 grand on the sale, and when I asked him why, he said "corporate gives us bonuses for having the most sales in the state, but they don't look at the profit on individual sales." And then I knew I had just walked into a shark tank as buddies with the biggest shark. I really had no idea how tf any of it worked till then.
This is only on new cars and usually they have separate money the GM gives them for them to close a deal. The GM usually gives these discounts to their close friends or family, even people that come and buy a lot of vehicles frequently.
Sorry bro. You dont know form 8300 very well or how dealers handle them. Paying a dealer with two cashiers checks at 8k each will get you a 8300. Looking shady buying a 6k hond civic cash will get you a 8300. The dealer doesnt even have to tell you its being filed until after the fact. A wire transfer, however is not considered cash and doesnt warrant a 8300. Over 10k or not. You technically arent buying a car with "cash" if you do an EFT or wire transfer like you mentioned in your vid. Or if you have a single money order/personal check/cashiers check for over 10k. There are absolutely ways to walk into a dealership with 50k in actual cash and walk out with a car, legally, with no 8300, but the structuring laws and fines are pretty harsh if you dont know what the fuck you a doing, like the guy in this vid. If you have 30-50k in cash, you have a CPA. Talk to them about cash transactions and dont listen to piss poor advice from grease balls on youtube. Here's the link to the IRS page discussing when/where/how dealerships can or are obligated to file a 8300 www.irs.gov/businesses/small-businesses-self-employed/report-of-cash-payments-over-10000-received-in-a-trade-or-business-motor-vehicle-dealership-qas
When I was buying my second car, I went around to some used car dealerships and all of them immediately asked me how I'm paying. When I said cash they said they don't deal in cash and showed me the door. It was hard to even find a used car place that would take my cash! That was about 10 years ago. Since then I bought my next car from family.
Says the Federal Government that issues the currency, no less. Form 8300 probably makes you a mark for future law enforcement targeting for "civil asset forfeiture".
I work at a dealership cash doesn’t matter to me unless your credit is awful I try and do my best to get you what you’re looking for asking how your paying is kind of important to know what I should and shouldn’t show you this guy is looking at it from the worst POV possible then again I work at a private dealer not a place like Toyota or Honda so I can work with prices a little more than they can
@@iamthefuss934 not really, that's a dumb way of doing it actually. It infers whether you're going to _watch_ it if your personality signature (as determined by yt algorithm) is known to have watched it.
Great video. I spent 1 month as a salesman for a dealership selling used vehicles. It was the worst job I was ever in. Not only was it extremely stressful having upper managers at your throat constantly to sell sell sell but always knowingly doing the exact things said in this business was just down wrong and demoralizing. As soon as I got outside the office on the lot with customers I leveled with them and told them I was on their side. Granted I did not make very much money and left lol.
@@brianandlynphilippines legit megachurches make half a million dollars a week
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It’s really quite simple, if u don’t like the deal walk away...there’s plenty of other dealers out there with plenty of inventory...if they get pushy I walk out...but then again i never fall in love with a car...
They want to put you into debt in case you don't pay, fall behind, being repossessed, and then for new 2020 cars, insurance is automatically needed. If someone can't afford it all, no business...
@@RobertMorgan : That's actually what they told me to do. It might be a good idea just to keep credit up. But it seemed so convoluted. I ended up buying an almost new used truck from a small potatoes used dealer - for actual cash money.
@@RobertMorgan A lot of car loans have precomputed interest built in. So if one day, you decide take out a 3 year loan with precomputed interest and pay it off the next day, you would have to pay off the principle plus 3 years of interest.
The Fitness Life Have you ever actually read the fine print on any 0% financing offers when buying a car? Nobody loans you money for free. With 0% interest, they've just rolled all the interest up at the front of the loan so you've paid the full amount even if you pay the loan off the next day. The dealer/bank ALWAYS wins when you do 0% financing. You're nearly always better off financing with a good low interest loan if you have the credit to qualify for one than if you take a 0% loan. I would STRONGLY encourage you to actually read through all the terms on a 0% car loan.
Last week went to a Toyota dealership, I made the mistake of mentioning $12,000 down payment m. When I asked the estimated financing of the rest. They gave me a long list of fees, extended warranty, huge car registration fee, something with a weird name $2,000, tire fee, etc. So, basically my $12,000 almost disappeared in front of my eyes in that list. I told the salesperson, let me take this paperwork to think about it. It’s sad, we want to buy a new car and we have to deal with these crooks that are willing to rob you legally and with a nice smile.
You'd be so proud. I walked out of 5 local dealerships with this method. I said no to all the unnecessary made up fees and refused to be redirected and psychologically corralled into their agenda. I finally found a great car and got it well below market value. It's been almost 2 months since I bought my car and I'm still getting phone calls from those other dealerships. I have answered every phone call and I ask to speak to the manager. I make it a point to tell them that I already bought a car from a dealer that didn't try to scam me. I then tell them that they had better rethink their tactics because more and more people like me are educating themselves and will no longer tolerate their ruthless BS. Thank you for your straight forward advise and for cracking open those dirty little dealership secrets.
Clueless Blamer I was in sales for 6 years and yes there is some nasty stuff going on behind the scenes at some dealerships...on the flip side, there’s many that are attentive and caring-they understand that the best way to do business is my establishing a long-term trusting relationship. A life long car-buying customer who services their vehicle with you is a much better approach to longevity and customer satisfaction.
Well, like any industry, those with knowledge are always tempted to take advantage of those that don't have it. Not all succumb to the temptation, but it's always there.
That’s why I’ve walked away from many dealerships. Their loss on a 70,000$ truck. The great part is I found one with 10,000 miles on it for almost half the price.
@@ninjamaster3453 that's because trucks and SUVs are the only segment "growing". Recent reports, Recent like a year ago, have come out that the especially sharp decrease in sedan sales in the last 3 years and the ballooning of the used car market is due to potential buyers waiting for electric vehicles. The sales, growth, and adoption curves of ICE and EV vehicles match black and white and Color TVs and ICE vehicles and pre motor transport options.
That's because they don't make as much as you think of a $70,000 truck. The manufacturers bend the dealerships over just as bad these days. The discounts they put on them is because the companies give them that difference, not because they always have that as profits.
@@ninjamaster3453 They aren't... Mark up is only 1%-2%. The manufacturing plants have been bending dealerships over like crazy. This is why cash is no longer king because it's too hard to make money without financing. I sold brand new trucks until 2019, and we got paid 25% profit per a unit, although after rebates and such, we would only be paid $200 off a $74000 Denali after rebates.
I always buy new. I don't buy a car for resale value. I buy new because its what I want. Don't care if it's worthless when I'm done with it. It's funny how most of you think you're smarter than everyone else. You're not.
@@kent266 Buddy: I have a great avocado grove in Alaska..You can impress your vapid, egotistical, materialistic "friends" and your millennial, brain dead children with this purchase! I'll provide 35% financing also!
I buy new because I can get exactly what I want and that means not overpaying for features like a sunroof. I want reliable transportation for 80,000+ miles: I don't want to shop for a car every five years. Most drivers are stupid and abuse cars by overrevving them and driving through holes. I also fix every paint scratch or torn boots. My car gets regular maintenance. I doubt if my "luxury" costs me more than a couple hundred dollars/year on the balance.
Instead of making a car payment, just put that much into a savings account. Buy pre-owned. Rinse repeat, save thousands over you life of car purchases.
@Ray Finkle This is what I did 20 years ago and I don’t see why it would be different today: I found it very easy to get the lowest possible price by listing out _exactly_ what I wanted and faxing that request to the closest 20 dealerships that I would be willing to drive to to pick the car up from and let them duke it out amongst each other to offer me the lowest price to get my business. After I was offered the lowest price I could get (which I knew was no BS, because I knew how much the dealership had bought the car for from my research), I walked in for a very quick stress-free business exchange with my checkbook to pay in cash, and the dealer that got my business was so impressed with what I did, he asked me where I learned this technique... he admitted to me that they made _zero profit with my business,_ but sold the car anyways to me to unload the vehicle off the lot, as towards the end of the month it looks better for their bottom line the more cars they move, and it makes room for new stock. They were fine with not turning a profit here and there for that reason. At that point I had no problem sharing - I had bought a paper kit full of EXCELLENT research and instructions of what exactly to do off the internet, which was mailed to me and called “The Fax Attack.” No joke, the dealership folks were extremely impressed. I didn’t have to go in to do haggle with anyone or experience that stress. The price was already set in stone before I walked in and yes they knew I was going to pay in cash before making an offer to me. As long as your flexible to go drive far to get your new baby to widen the amount of dealerships to make this technique work, I don’t see how you too won’t be able to walk away with not giving them a dime of profit if you pay in cash. Luckily for me, the winning dealership turned our to only be a 30 minute drive. :) P.S. the company/business for the fax attack is still around - I just looked it up. :) It’s called “Fighting Chance.” Just google this “fighting chance fax attack james bragg.” I promise you the packet he sends you is well worth the money. It looks like he charges way less these days too, compared to when I bought the customized package. I don’t think you need to pay in cash to use his technique, btw. Just read his website and you’ll see.
This is a golden video. I've experienced with exactly what Kevin has described, while I did not pay cash, I was ripped off big time on the finance, no matter how low the number you have on the out of door price, they will make you focus on the monthly payment number. Once that's done, take the monthly number and times how many months you are gonna pay, you will realize you are paying at least $3000 more than the original out of door price after interests being deducted. It is because they raised the original price without telling you. If you point that out, they will tell you " I thought you were ok with the monthly payment. I thought that's whats most important for you, bluh bluh bluh". And they try to make you feel guilty, and make you feel like you are dishonest and shameless. Well, remember it's your money, and they are only there to take yours. Never feel bad about protecting yourself. Many car salesmen are manipulating narcissists, especially the "good" ones. Make sure you do some math before signing anything. And always be prepared to take off, and be prepared to visit multiple car dealerships multiple times. It'll be worth it for saving $3000-$5000 dollars. Also, I am done buying brand new cars from dealers. I purchased my last two cars from private owners who had their cars less than a year. Get some good inspection mechanics to look at. You'll save at least $5000, sometimes even $10000 by getting a practically new car.
Never purchased a new car in my life. I always buy second hand Toyotas. If you buy them with just over 100K, they will run at least another 150K plus or minus. And I live in the rest belt. Southern states will obviously get the higher mileage. I purchased an 89' pickup 4x4 and drove it for 14 years. I paid $4200 for it with 69K on it. I still sold it for $1200 in the end. The only reason I parted with it was because it had a bad cylinder. Camrys are another great second hand investment. I have also driven 2 of them for many years with very little mechanical maintenance. Most expensive cost was replacing the timing belt. Other than that it was just mufflers, brakes, plugs, or a starter. All easy fixes which I do myself.
Hey Kevin, just thought I would let you know that after 5 years of persistence I have finally reached my goal. As of Jan. 2021 here in Utah my bill will be law. The bill will help protect and inform consumers so they can make an informed decision before they sign the contract. It makes it so the contract can't be used as a game of hide and seek, and a way to generate "profits". I'm hoping that the other states will follow Utah's lead so this can go nationwide. Keep up the good work Kevin. Dave
David Johnson : I'm also in Utah. Please provide a link so I can read this bill you are talking about. I haven't heard of it, and I want to see what it's all about. Thanks.
@@TrailTrackers You haven't heard anything about it because it doesn't go into effect until Jan. 2021. Here is the Email I received from Senator Escamilla updating me on the bill.
Luz Escamilla Tue, Feb 25, 9:16 AM (4 days ago) to me, Andrea, Jon David, Just wanted to give you an update on the issue we discussed during the summer. I was able to get the language on the vehicle service warranty added to the annual insurance amendments bill that Rep. Dunnigan and Senator Bramble run every year (1st Sub HB 37 le.utah.gov/~2020/bills/hbillint/HB0037S01.pdf ) This bill contains language related to the Insurance Department you can find the language related to the issue we discussed in page 77 starting in line 2352, this is a consensus bill agreed by the stakeholders so I don’t foresee any problems with the bill passing. I will have my intern keep you informed as it moves in the process. If you have any questions please let me know, below I have added the language specific to the issues we discussed but you can find the entire bill in the link provided above. Thank you for your time and dedication to advocate on this important consumer protection issue, 2351 (4) If prior approval of repair work is required[, a service] under a home protection 2352 service contract or a vehicle service contract, the contract shall conspicuously state the 2353 procedure for obtaining prior approval and for making a claim, including: 2354 (a) a toll free telephone number for claim service; and 2355 (b) a procedure for obtaining reimbursement for emergency repairs performed outside 2356 of normal business hours. 2357 (5) A preexisting condition clause in a service contract shall specifically state which 2358 preexisting condition is excluded from coverage. 2359 (6) (a) Except as provided in Subsection (6)(c), a service contract shall state the 2360 conditions upon which the use of a nonmanufacturers' part is allowed. 2361 2362 federal 2363 2364 2365 2366 2367 requirements of Subsections (3)(d) and (g), (4), (5), and (6). The department may make rules 2368 in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement 2369 the application of this section to a vehicle protection product warranty. 2370 (8) (a) As used in this Subsection (8), "conspicuous statement" means a disclosure that: 2371 (i) appears in all-caps, bold, and 14-point font; and 2372 (ii) provides a space to be initialed by the consumer: 2373 (A) immediately below the printed disclosure; and 2374 (B) at or before the time the consumer purchases the vehicle protection product. 2375 (b) (i) A vehicle protection product warranty shall contain a conspicuous statement in 2376 substantially the following form: "Purchase of this product is optional and is not required in 2377 order to finance, lease, or purchase a motor vehicle." 2378 (ii) Beginning January 1, 2021, a service contract shall contain a conspicuous statement 2379 in substantially the following form: "Purchase of this product is optional and is not required in 2380 order to finance, lease, or purchase a motor vehicle."
David, good to hear from you again! Would you send me a copy of the bill you mentioned? I'd make the trip down to cover the passage of the bill! Email to info@thehomeworkguy.com
Yup cause they make their money off of finance percentages and extras. Too bad for them they can’t make a ton of money off a cash buyer. If their attitude sucks I walk away, let them do all the work they want your money. Nobody is doing you a favor selling you something. People have forgotten that very basic rule that the seller is the one that has to do the work to get your money, not the other way around.
Jon Wong I think you are talking out of your ass, Wong. Many dealers have specific fees such as dealer fees that are already built into the price of the car. They will find a way to make their profit somehow, even if it is only 500 dollars on a car.
When I got my first car, I took out a car loan through a credit union. I went to the Ford car dealership with my mother, I got a certified pre-owed car for $1000 less than it was listed (I didn't know much about haggling or cars and neither did my mom), IDK how much people usually get off of cars when they negotiate, but I was pretty proud of myself getting $1000 off. I know I probably still got screwed over, but I was proud of myself nonetheless. lol
@@AquarianSoulTimeTraveler Well how are you going to get it repaired, or parts for it? Tesla won't sell parts unless you are a dealer but they don't have dealerships to do so.....
@@AquarianSoulTimeTraveler Teslas are the Apple products of the car world, they monopolise on their own parts. They make it impossible for the common man to get parts by making it to where only dealerships can get them, which is stated their are no dealerships, I can't remember the terminology Tesla uses but their stores aren't dealerships which is why you sometimes see them in malls. Anyway, also there aren't really any mechanics who can work on Teslas so taking it in for maintenance or to fix an issue is virtually impossible. Tesla literally wants you to buy a brand new vehicle when your vehicle has a problem.
Buying a car is horrifying. Got ripped off. Then the company sold our car note and filled bankruptcy. They took us for all they could and valued the car way higher than it was worth. We were on the hook and they got protections. NorthStar Dodge in Tx. And magically a new dealership popped right up. Rumor has it, that the same guys own it under a new company name. My son is going to need a car soon. I definitely need to check out more of your videos. Thank you!
Or you can go ahead with the finance, but make sure there is a " no penalty" for paying off early and just pay the vehicle off the next month in full.....I've done this before.😏
This is the correct way to buy cash. If you say youre cash up front, they will try to hike the price. Because otherwise hey get less from the deal. Be sure to try and get a signature on the desired cost. Many will pull the "if I can get this deal for you sign here to say you'll commit to it" or something. You respond with, "I'll sign after they (sales manager) do" or something like that. Go to finance. Don't buy extras, everything's marked up and the protection packages might be installed/applied by high schoolers on drugs (YMMV). Sign. Then pay it off right there. Notes: once you sign, the dealer's already made most of their money. Banks kick back to the dealer for sending them people to make loans to. Dealers are like advertising firms for large bank loans. The only one you'll be "shorting," in most cases, is the bank, who wants you ideally to make as many interest-only payments as they can get you to make, so the principal is never paid off and they can perpetually charge interest on the perpetual principal. The actual payment/interest is set with the intent to make it take longer than it reasonably should, according to your income/credit score. (Car loan interest rates are artificially high to draw out the time you're stuck with it--unless you don't do what you're told. Fun fact, commissions for salesmen are anywhere between 1-3% of the net which can be as low as 500 or as high as 5,000. (Those are nets, so 1-3% of those) There is no middleground in car sales. You are either a rockstar or a wet noodle. Source: Was a wet noodle. Saw the scam for what it really was and couldn't bring myself to be complicit in the broken system that 100% is rigged against the buyer. All dealers are the same, and ones that go on about how honest they are, can have the most scummy employees of them all.
Just make sure no prepayment penalties. We did the same with our Kia and saved $2500. Paid it off on 2nd payment. DakotaKid - A prepayment penalty should be easy to see in the paperwork. Look at the amount financed then you calculate out the number of months times payment amount to get your full cost of the vehicle. Then read the terms of the loan, if there is nothing on a prepayment or mandatory number of payments, you should be good to go. Then casually ask the finance guy, "is there anything in here that would penalize me for putting 25 or 50 bucks a month extra to pay it off a little early?" Or, "I have a settlement/lawsuit going. "IF" I win, will there be a penalty if I put a chunk down towards the car?" Don't mention "payoff". This should keep his guard down because MOST people won't do that.
@@TH-cam_stole_my_handle The way around that is pay the bulk amount one month, then leave enough to pay on the next payment!!! I've done that for homes also
Never heard of this man before. Popped up on my TH-cam feed. Purchased a lot of cars, this is the real deal on how to fairly control the car buying process. I subscribed to the channel. Good info, especially if on the property.
after watching this, I may just keep buying my vehicles from other owners, so far I have been able to get a truck for 800, and then a car for 1850, only issues was that shortly after buying them I found some hiding problems that needed fixing, but they were issues I don't even think the owners knew about, of course having some mechanical training and tools helps a lot, also aftermarket parts are generally cheap depending on the vehicle
Justin Peyton wow, that’s interesting then. Google blinker fluid. The guy has millions of subs and does excellent auto repair vids. Our April fools day he did an entire spoof video on changing blinker fluid. That’s where I thought you got that from. My bad. It was just a joke anyway-th-cam.com/video/E6GsXhBb10k/w-d-xo.html
Had a friend who worked for a high end car brand that's three letters long. He said pretty much the same thing, they get no extras on a cash sale, finance gets them an x %cut, so all the extra bits you buy, he gets a pocket full, an when you don't pay cash, they also get a nice pocket full. I find that going with the "im not after a set car, but a set price" kinda tactic, an never be afraid to just walk out, plenty of other dealerships desperate for you're money/finance.
This man has been blessed by the TH-cam algorithm
lol, i was thinking that.
Its something thats actually useful, wow TH-cam
underrated comment
We have all been
He made his own success. Video description is keyword-stuffed.
A car is merely the "vehicle" for selling you a loan!
I see what you did there
Shut up Nostradumbass.
GOTDAMIT !!! 😵
Good observation or relay from where you got that idea. Accurate.
All of life conundrums ripoffs and unfair practices to whatever level goes back to the dual citizenship International bankers
Yes
TLDR: Dealerships are in the debt business, not the car business.
thank you
Not all heroes wear capes.
That's why dealerships need to be abolished.
@@pyarepiyush so you want them to sell you the car without any profit?
@@Duffman294 I wanna pay for a car what it's worth. XD
Looking forward to when I can buy online from the factory.
A friend of mine was a ‘Finance Manager’ for a dealership and he always says ‘We didn’t sell cars, we sold car loans’
Three biggest crooks:
1. Politicians
2. Car dealers
3. Credit Bureaus
You forgot health insurance and banks. They kinda go on top of all these.
Politicians and Credit Bureaus are redundant. The politicians work for the credit bureaus.
Credit bureaus?! That makes no sense. Your credit is completely up to you to manage.
Forgot mechanics
Cops. You forgot cops.
I’ve learned car dealerships aren’t there to sell cars. They also sell cars. The bread and butter is selling financing and repairs/maintenance
It's a system. This is why modern BMW and many MBZ are not feasible to own today outside of warranty - they're painful complicated and designed that way to keep your balls in the dealers vice. It's well engineered to be utter trash in the long run but buttery smooth before the warranty blows out.
Also, selling extended warranties and gap insurance. That's big money for them
That's exactly why I bought an Electric car and I bought it online with Carvana. I solved both problems you mentioned withOUT a dealer, too.
Bonix Deep Yep that too
@@BillFrazier Good luck w/ that...Inside of 5yrs you'll need a new battery pack...Cost is 2-3× the value of the car by then, plus disposal fee...There goes savings on gas...could of bought a 10yr old beater & done as good...at 32mpg...
"Not an investment, it's an expense" solid truth bomb right there. Thank you for that
KBBF3 Same is true for homes.
What other purchase in life amounts to essentially taking a ten dollar bill and setting it on fire every day ?
BonnieBlue2A except houses gain value
BonnieBlue2A for those that don’t know how to turn their house into an asset, yeah.
@@BonnieBlue2A Is that why the home I bought in 2004 for 90K I just sold for 200K??
They don’t want cash cause then you’re not paying 3x the original price in interest over 72 months.
is the interest only if you miss payments? or no, kinda confused on interest tbh
NoobMeetsPro interest is what happens when u take a loan for something you can’t afford so you end up paying more money than what it’s worth
@@noobmeetspro9738 interest is always accruing. Whether you pay late or on time doesn't matter
If your interest rates are so high that you pay 3x the original price over 72 months your credit score must suck dick.
@@noobmeetspro9738 Interest is applied every payment. say the loan is 10k for 1 year to make the math easy. youd think OK 10000/12 months is $833.34. so if I pay that 12 times I give you back your 10k no sweat. however you have to lose something for not having 10k upfront and needing the loan. This is called the interest rate and is calculate on how risky the loan is to the person with the money. If you have bad credit then the rate is higher meaning the loan COST more. What do I mean by cost? well the 10k you borrowed went to the dealership and you got the car, but how does the loan company make money? They just lent you money and then got it back. They apply an interest rate of say 5% to your loan. That means that you will actually end up paying $875 a month, an extra 41 bucks, for a total loan value of 10500. that extra 500 was the 'cost' of the loan. And basically for each payment you make you basically are eating up a month's chunk of the loan value and a month's chunk of the interest profit the loan will receive. That is why it is advisable to pay in cash or payoff the loan as early as possible to reduce this number. The bigger the loan amount, the longer the loan term, and the higher the interest rate, the more money the loan will cost you in the end. I am in the middle of a 4 year 12k loan that has about 10500 left to go. On the website it says I can payoff the whole loan with 10661. Why is it higher than what is left on the loan? Because technically you don't actually pay the interest off while making payments. You only do a small percentage,so if I wanted to stop making payments and pay the whole thing off, they want me to pay all the interest I've accrued. Kinda shocking but yes my loan is already gonna cost me 150ish and started at 12k and is now at 10.5k. If I wait full term I'm sure it'll cost me around 1000 or so extra but plan to pay it off early. Hope this helps. You can only escape credit card interest by making payments btw. The interest I explained above is for loans only
I like this a lot: as car enthusiasts, we love cars and car people, but we HATE the dealership experience.
FIRST car purchase. fantastic experience. no dicking around. they honestly worked to get me out the door with the car with no shenannigans.
Second Car purchase. Nightmare. seemed to go smoothly till I realized they over charged me almost $4000 for the car. I agreed to pay book value for the car (used 2016 Leaf) but they claimed it was an SL when it was actually an SV. (the cars are not badged) ie they lied to my face. I asked about the missing leather seats. (SL I thought came with leather standard) they said it was an option. I was ok with this since I don't like leather I prefer Cloth)
SO they robbed me for $4k. fuck that place.
My girlfriend (at the time) and I went to a local Honda dealership looking for a used car for her. I knew that they had a bad rep, but never dealt with them, or any dealership at that before. I told them her budget was $10,000. They showed us a fairly new model Nissan Altima, let us test drive it, then told us it was $10,500. He explained that the payments would be $270 for 72 months. Left us sitting there for about an hour while he supposedly talked to his sales manager about bringing the price down, came back and tried to muscle her into signing the lease.
I told her not to do it, pulled out my calculator and did the math right in front of the salesman. I could see the panic in his face. They tried to sell us a $19,500 car and lie to our faces that it was 10,500. I asked him if the interest rate was 100% or if they were just lying. He tried to affirm that it was still only $10,500. I told them that I appreciate them wasting our time and we left.
Shadiest shit I’ve ever seen.
That’s why you buy online
Well yeah, buying the actual car is the final boss battle for us. Most salesmen could care less about our hobby, but they love our wallets!!!!
If a dealer tried to charge me a fee for paying cash, I'd stand up and walk out.
Me too. At any time I have bought a new car I work out what I want to pay. Maybe a trade maybe not, but i never borrow from a dealer. I just say two things. 1, Do they want to sell me the (chosen) vehicle. And 2, If yes I then tell them what I will pay, gross. from then on I DON"T budge. They will run to and fro working themselves to a frazzle. Two things will happen. Either they will say can't do that and the body language will tell you to move on. Or if they start farting around, you've got them. May take a while, for when they finally ask what you will pay, viz, an attempt to come up to their new suggested price, you just politely and quietly repeat the same price that you have already quoted, probably for the umpteenth time ,viz. the first offer made at the start.
What ever addon's or takeoff's there may be financially, none of my concern. BUT you must be prepared to walk. - Ever played poker?? - Oh, I find I usually win. But you need to make a realistic offer in the first place. I will endeavor to slide in a little comment at some stage,- It's better you make a dollar profit than no sale at all. Not true but they will get the drift.
After I laughed I did walk out and laughed some more.
The end result is, you still don't have the vehicle you need and your time is wasted. What's next, do the same thing over again at the the next dealership and pat yourself on the back for still not having a vehicle in your driveway at the end of the day? The point is, if you listen closely to what's stated in the video, it fails to explain how to get to a point where a car can can be bought outright, without financing, and at the price you want to pay.
I bought my truck last year. The dealership tried to charge me 800 dollars for filing fees and I refused. They said “well that’s what we charge everyone”. It was a deal breaker for me until they lowered it to 400. It’s the simple principle.
@@RedondoBeach2 Actually he did, right at the beginning of the video. A simple statement of no, I won't talk payment or financing, until we have reached an agreed price, and then I will only speak to the finance guy about that information. The salesman does not need to know about your real particulars regarding your credit worthiness or available cash down. That is for the Finance office, after an agreed price has been negotiated. And negotiation is where the price you want to pay is settled upon. Much of this will come from the "Desk", which is managed by the sales manager or a dedicated Desk Man/woman. Once an agreed price is reached, lots of shaking hands etc by the salesman. Then you go back to the finance office, where they will try and completely restructure the deal and sell you additional products like "paint protection" or sound proofing under the car, or extended warranties and the list goes on and on. And since they are also going to try and convert you to a payment plan instead of the original agreed to price, this is one of the ways they make extra profit. Paint protection for instance, is in the several hundreds of dollars, for a basic "wax job" back in the detail shop. What a scam! Sound proofing on most cars these days, is added at the factory. What are they going to do in a dealership? Spray on tar on the bottom of the car and usually make a helluva mess with it. Fore go the added cost. Extended warranties.... well that one is on you. It depends on the car, the reliability of the brand and the model, and pay very close extra attention to what is really covered in that warranty. If the car has a decent warranty on it, and a good track record... do you plan to take the. car out and abuse the hell out of it? Those are questions you will have to answer for yourself, but I'm sure he has probably made a vid on whether or not you should purchase extended warranties. Bob
This is why I love dealing with private sellers.
- "I'm asking $5000."
- "Will you take $4800?"
- "Yes."
- (hands over the money) "Here you go."
Done.
Exactly. Dealerships are scum. Their shitty reputation is well earned. Buy private, bring your mechanic.
@@TheBarroomHero321 Do a carfax.. Professional scammers pose as regular Joe's and roll back odometers with computer
Or you could get a private seller like i ran into yesterday. It was a well priced, high mileage Pilot with "just a sensor light on." Went to look, on test drive he said "Sensor causing a stutter at 25 then it runs fine". Well, as I accelerate onto highway right at 25 BOOM, his "flutter" was a slam. I now notice the green gear selector "D" was flashing. OK, so the guy didn't look too smart but he HAD to know the thing was missing 3rd and 4th gear (it was running 3300 rpm @ 60mph). This is just a story to show, sometimes dealing with a dealer isn't always a bad deal because USUALLY they have at least a small warranty. BTW, a "new" Pilot tranny is $3500 making the "good deal" unacceptable.
Yeah and then they’re like “how much you want me to write the sales price as on the title” 😂 it’s the American way
XaZa A friend’s neighbor sold cars all the time. He was really a neighborhood car dealer. Just sold them one at a time and not from a lot. You’re not always getting someone’s old car that they didn’t want to trade in.
I went through a scenario similar to the one presented, "I'm not talking financing until the deal is done and I talk to the finance person," and then basically said I was paying cash when we finalized a price and what I was or was not paying for. The finance guy balked and by the time I got up and was out of the showroom and halfway to my car his manager was running out to me. I waved him off and went to the second dealer on my list. Was at the second dealer for 15 minutes, essentially followed your script, or at least one like it, got my options, got my price, wrote a check at the end, and had the vehicle delivered the next day. And used the interest and fees I did not pay and took my family on vacation.
what exactly did you save on?
I'd have first asked the guy chasing you if he's willing to knock another few grand off the price for wasting your time. Could've gotten an even better deal.
@@qwaurk985 Did that on the next cars. Essentially had them eat the tax and document and delivery fees.
I’m 21 years old and these are the important things schools don’t teach you! Appreciate you Kevin 🙏🏽
@Rob Gonz bet you're fun at parties.
Rob Gonz why you gotta be ignorant for
Same
Rob Gonz they should teach kids about this instead of fake gods and bs like that
@Rob Gonz probably because almost everyone in life has to buy a car? Ask yourself what is school supposed to be for? Oh yeah, prepair you for life.
When I bought my car we had to negotiate for nearly an hour, when we finally settled on the price, they wanted to draw up the financing papers and then I said I was paying cash for the previously negotiated price. The tone changed immediately, they were so mad and rude after that.
Lmaooo
u know, my cousin did that at a mercedes dealer, negotiated for a price he wanted, and in the end took it cash pay. The issue is whenever he went in for his service intervals, they would add a scratch, in the door jams, on the door, roof, undercarriage, just trying to expose rust spots
Silver Lightning Remix For the love of God, if you buy a car from a crooked dealer and manage to stick it to them on the final sale price, you should never, EVER take it back there for service! They've already shown you how they feel about you. That's a bit like insulting a rude chef right before you order your meal. You've just guaranteed he's going to spit in your food.
@@babybirdhome I couldn't really say much to my cousin. But I'll say in instance I had this issue. long before my dad bought my brother's 2017 corolla le silver paint. He did negotiate the price of the car, got 2k less, and 0% apr, but came time to do oil change, took the car to dealer, they scratched the door panel, didn't notice as it was passenger door and only brother drives. The blunder they did is when I took it for its 4th oil change, they hard scratched the mirror, like in the sun i thought it was cracked. I spoke to manager he said "you probably have jealous neighbors" I spoke to head quarter (usa based) they yelled at dealer, and closed that location only to open 5 miles away, same ppl. just so their reputation isnt tarnished. Now, fun fact, when I went to buy my car (2020 Corolla SE ) at Naperville Toyota, the guy who worked there, used to work at Thomas toyota. it turns out he quit bcs 1, that dealer profit was equal to its loss, 2 they bought accidental cars (like fire damage or salvaged), refurbish it, overwrite title, assign new vin number, and sell the car at new car price. I checked my brother's corolla vin, 4 other cars (2 came from this dealer) have the exact same Vin number. Now as for Naperville dealer. Though I can get free oil change (bought the car July 20, 2019, as of today has almost 13k miles) I changed the oil myself at 3k mile intervals. and went with Mobile 1 oil as they are the only ones with 0w-16. The day I had to take it to the dealer due to fuel pump noise (thought it was engine as noise happened cold start below 30 degrees) it was normal, I took the car in, it was nice and shiny, I detail my car as well, washed it the day before, vacuumed it, applied a Hybrid ceramic coat (like car was MIRROR shiny). Had to leave the car overnight (was mid Jan) came next day, they change fuel pump and car was filthy on outside, salt everywhere, on body,on roof (idek how tf that happened) which pissed me off as I returned their Loaner Rav4 in the condition I got it, clean, salt free. so ye, for every car I now buy from dealer, I'm doing maintaining em myself to the extent that I know (brakes, oil, coolant, radiator, calipers, rotation, wipers, the basics, I do plan on going to UTI when i have the time so I can do stuff like engine rebuilds and all that)
tl:dr I bottom line don't trust dealer even on service intervals on warranty simply bcs the fear of scratches and rust slapping my car after the incident with my cousin and my brother 2017 corolla
Glad my used car dealer is a nice guy.
"Don't be afraid to walk..."
I have closed more deals by standing up, thanking them for their time, & heading for the door.
Funny, how I never reach it.
bS ...chicken shit move. No respect for that move.
@@vgordonw aww are you upset that you payed extra for not standing up for yourself
Gordon Welch ;
You either don't know how the real world works, or you're a salesman.
You would walk away from a bad deal yourself, so don't criticize me for doing the same.
No respect for trolls.
Gordon Welch is a sales rep who gets bullied because he can’t make any sales 😂
@@vgordonw The longer you sit there and talk to them the more the salesman knows you are interested. It decreases their incentive to lower the price. If you start to walk they know they need to do something to get you back. By staying there you admit you are fine with the deal as is.
Here is the biggest tip for negotiating. Become perfectly ok with awkward energy/pauses/silence in the room. The reason most people are not any good at it s because they are 1. Too agreeable or 2. Cannot stand a pause in the conversation or tense energy between them and the guy that just spent the last 30 minutes pretending to be your friend.
Realllllly good tip. As with any debate like conversation, stand your ground and be firm
I've been practicing being awkward all my life.
Also, try to seduce the salesperson by wiggling your eyebrows and languidly stretching your arms
Thank you
I'm naturally awkward to do negotiations with (I have a habit of looking at the other party like they're a total moron.)
Last time I bought a car:
Dealer: And there will be a 500 dollar window etching fee.
Me: Let me see that. (Looks at paper) It says here it's optional.
Dealer: Yes, but they already did the etching.
Me: So it's not optional.
Dealer: It is optional but we already did it.
Me: So it's optional, just not optional for me?
(At this point he noticed I was going to put up a fight)
Dealer: Tell you what sir. I can't retract the 500 Dollar window etching fee because it's already been etched, so I'll reduced the sale price 500 for you.
Me: That would be excellent thank you.
Dealer: No problem. I have your loan forms right here.
Me: Oh. That's okay. I'm paying in cash.
(Dealer looks at me like I just told him his kids died)
😂
This exact thing happened to me with my first car. There were a couple "extras" that were added right at the end and they initially told me they couldn't remove the fees because the work had already been done. I stuck to the original price and they took the fees off.
My local police department will do the VIN etching for free.
I had the exact same story a couple years ago when my wife got her new car. Similar window tint thing, ours was 600 bucks. And we paid cash with the guy dead inside face
Internet buying from a dealer is a similar scam. You search and find the exact vehicle you want and send a notice to them that you're coming to see the car. You show up and all sorts of dealer accessories are added. Undercoating, Floor mats, Roof racks,
And people wonder why dealers are so scared of Tesla’s “buy the car online and everyone pays the same price” approach.
Rhynri If a Tesla is in a crash the hazmat team has to be called. Dangerous car. No one sane would sell it with such liabilities
@@lenoretalon9958 That's both false and also irrelevant to the point about pricing.
@@lenoretalon9958 mmmmm...... yea........ suuuuure......
@@lenoretalon9958 Lithium-Ion battery fires are no laughing matter but honestly a Tesla has less hazardous materials in it than your standard internal combustion car. Think about it an internal combustion motor has 5-6 quarts of oil, a gallon or two of antifreeze, 10 quarts or more of transmission fluid, power steering fluid, freon, brake fluid, a lead acid battery, and on top of all that 20+ gallons of gasoline. A Tesla has what? Freon, maybe some heavy gear oil or grease, break fluid, and batteries. I looked up the emergency response guide for the tesla model 3 and their main concern seemed to be how to disable the high voltage system for first responder safety. No Hazmat team required. I am personally not a huge fan of EVs but your info seems to be wrong. I have also received OSHA 40 Hour HAZWOPER training (literally hazmat team training) and not the online version, i am talking dressing out in SCBA packs and full level A bubble suits. I see no reason why a specialized response would be needed other than maybe some training to local firefighters on how to disable the high voltage system.
@@treyt6474 hey guys I found the troglodyte
My dad owns a dealership and he enjoys cash buyers, he understands that they have money and can go somewhere else. He will give them thousands off the vehicle for paying cash.
I feel like this is mostly an american thing. In parts of the world things are more amd more set up that paying cash is either simply not accepted, or that you somehow feel wrong or dirty for doing so. Ngl but ik and umderstand the pitfalls of a potential cashless society, but have been considering also its advantages and ways tp navigate around it fpr some years now.
Your Dad sounds honest. Dealers get a kickback from the bank on financing.
thats why i prefer family owned/smaller dealerships for this very reason
@@idealicfool Not quite so. Paying in "cash" simply means that you will pay everything in one transaction, no financing at all. There is no problem to buy a car like that in Europe, at least that I know of. You simply make a bank transfer and done (obviously you will not walk around with 40K EUR / USD in a suitcase, it is kinda logical they won't accept that). My colleague has just bought a new Volvo and that's exactly how she paid for it. (36K EUR)
Steve Ramey the name and credibility is worth far more to him, he just wants to help others while still making money, he figures if he loses out on some money it’s alright because there aren’t any bad reviews then
I guess nothing's changed. Buying a car is still hell on earth. Only even worse now.
I had the absolute WORST experience when I went. The salesman was a creep and made me not even want to buy a car.
Learn about cars and it becomes incredibly easy to buy one, from anyone. Find a car you like and research everything about it; problems, pricing, availability, resale value, etc. Information that will give you leverage when buying a car. Also study the different packages available for your car, a lot of dealers will try to sell you a lower end spec vehicle to make more money. When I went to buy my car, they first pulled around a lower end version of what I wanted, so i played around with them, wasted their time, then told them I wanted the one I came there for, a fully loaded spec. Which was listed at the exact same price as the lower end one... lol. Dealers make money screwing people, there is no way around it.
its hell for the person that doesn't do his or her homework, cause the salesman has already done his homework and waiting for u to pull up on their car lot, so don't be a dummy and do your home work, unless u like getting ripped off.
I'm saving for a Tesla I can order online then rent it out as a taxi.
EDD W. Tips on buying a car (it’s not worse ) banks have your back they won’t let them sell a car that’s over priced because when you can’t afford it or decide it’s not worth it they take the hit not the dealer . Have good or strong credit .stay away from mom and pop used car lots there animals and finally go on autotraders, cars.com or carguru and compare prices. Finally remember that salespeople are just people that have more exposure in the car world but the just people and if they are dick request someone els and make sure they get no commission (if you don’t like the terms of a deal I promise that there will be a car with the same miles somewhere near at a reputable dealer just got visit and re negotiate price with the web tools above )
Thank you for this post. I recently went to a used car dealership here close to my house. I was shopping for a car for my son and this would be his first car and also a graduation gift. I was set on getting him a honda civic since they are cheap, good on gas and cheap to fix when you do manage somehow to break it. Anyhow we went there and seen the perfect little honda sitting on the lot with $2400 on the window. The salesman gave us a walk around. We test drove it and decided this was the one. Now we are at the table. I asked if I could get the car for $2000 he countered with $2200. Deal. Now comes the finance guy asking me to fill out credit forms. I pull the cash out of my pocket and he says "we don't make cash deals we only finance. I was blown away and was getting ready to walk out but I asked what the finance charges would be. After we were done adding it all up it was "only $48 a week" (turns out it was a buy here pay here place) I looked at the term and I was purchasing a service agreement which they did in house(also required). and the loan would be for 3 years. I Was going to pay $7488 for a $2200 car that I had cash for that day. What a sham! I just got up and walked out.
That is insane. Some ppl never learn how to use a calculator.
Wow
WOW!.Talk about thieves!.That is why car salesmen get a bad rap.
Nothing seems shady here. They're a place of business and sell cars however they want which is their business model. You saw the numbers, did the math and realized it wasn't the deal for you. So what? It's not like they lied to you, they presented you an option and it wasn't for you. No big deal.
I’m a car salesman watching this video and it’s pretty accurate lmao
How does it feel knowing you take advantage of people?
Let’s give him credit for being honest about it.
@@Durva360 What you're trying to imply really isn't an honest question. Every service and every product has a margin that's retained by the previous party in the economic food chain that eventually delivered that car to the dealership. Same can be said about nearly any product or service - that's how any profit is generated. Compared to the food you may buy or other products you may pull off the shelf at consumer-fixed prices, a car's sale price is variable.
Now if you were directing that question to a representative of 'Big Pharma' in the US, I think your inquiry could be justified. The price of most of medication in the US market is completely inflated for the same products that are sold elsewhere in the world, despite coming from the very same distributors. Just my 2¢.
Mr Durva that’s a pretty ignorant statement. How is selling something taking advantage of them? You should apologize.
@@mike34744 my best friend used to sell cars and did great. I asked him one day why he stopped and changed careers. He said "because I can't sleep at night because I have to screw people. You have to, to be a car salesman. Old people, widows, whoever. I can't do it anymore" .
Stood my ground, Told the salesman up front, AFTER he told me what his BEST offer was, exactly what I was willing to pay. Absolutely no Higher. Negotiated what I felt was a "fair" price in a car. Approx $5K off the sticker. Salesman let slip (?) there was an additional $1k rebate if I was to financed it through their finance company. So now I was $6K off the sticker. Accepted it for the longest loan term available. Took the car home. The first business day called the finance company and inquired as to the pay off amount on the loan. I immediately wrote them a check for the payoff amount. Sometimes it's advantageous to finance "smartly" and still pay cash for the vehicle. Maybe got a good deal or not but I was happy and felt good.
Did something similar with a $3000 mower. Tractor supply offered %10 off purchase with new credit card sign up. Signed, bought, trailered it that day. Paid off before the 1st month with no interest and $300 off the shelf price.
Ha, ha, ha!!! I love it! Smart!!!
Nothing is free my friend.
You should know the interest rates before you go in because if they sell you a loan for over market rate they will get a rebate back from the lender, which you’ll pay for in the end. Also, make sure there is NO prepayment penalty.
It doesn't work that way. In order to keep the rebate, you would have had to finance the vehicle for at least 90 days.
Sounds good but you had to have affected your credit score. First thebding from the request, then the ding for length of credit history.
Buying a car is so stressful to me, I wish dealerships weren’t so greedy. Buying a car is supposed to be a fun and exciting experience, especially if you are doing it for the first time.
The dealerships are not greedy, its certain sales staff. i have had multiple people of the same family and many repeat customers just because i give them what they are looking for in a vehicle with the best experience i can give. kinda upsetting you think its all of us
It is all of you. Ive dealt with multiple dealerships and its always the same thing. Its like dealing with mechanics
I go in the dealership I tell them I have excellent credit and a good down payment I can go anywhere. I always end up partially dealing with the manager. I also find out what the last day of the dealerships month is because some places get extra bonuses if they sell a certain amount of cars and a lot of time they are 1 or 2 cars away from reaching there bonus and will sell the car the lowest.
And this is one of the reasons why I purchased a Tesla. No middle man to deal with. When you buy a Tesla you’re buying directly from the manufacturer. The price they advertise is the price you pay. I financed directly through my credit union got 1.89% rate. They even delivered the car to my home. I’ve owned the car for a little over a year now, driven 28k miles, and haven’t spent a penny on maintenance. They do not require oil changes (no oil), don’t have spark plugs, timing belts, etc. less moving parts translates to little to no maintenance. Test drove the car on three different occasions before finalizing my decision to buy, didn’t feel any pressure to buy from sales staff. Absolutely the best purchasing experience I’ve had and absolutely the best car I’ve ever owned, and I’ve owned many throughout my lifetime. Speak to any Tesla owner and you will hear nothing but good things. Oh, and notice how, unlike other companies, they don’t spend a penny on advertisements. All their sales are through word of mouth and reputation.
I totally agree. It keeps me up at night with anxiety.
Yep. We got tired of them giving us a bad deal, so ignorantly we asked “what’s the price if we pay in cash?” Things went from bad to worse. Wish I had seen this video a week ago. Would have saved me 6 hours.
I walk into the dealer and say “hi I’m paying in pennies”
like mr beast did....
in a frontloader?:)
Pennies are only legal tender up to 20 cents. After that point, it is their decision whether or not to accept that payment.
Yoda me: walk Into the door and I say sir I’m paying in penis’s.
@@Egilhelmson since when
I can't wait for Amazon, Costco, etc. to put the dealerships out of business... all the games you have to play just to buy a product are ridiculous. Just list your price like virtually all other products.
The only industry that I can think of with worse predatory practices is the medical field. At least with a car you have a rough, ballpark figure so you have a decent idea of what you're getting into.
When you get a prescription, procedure, examination or whatever done, you never know what it's going to cost until the bill comes in the mail or if your insurance will cover it or not until well after the fact.
Are you telling me they don’t list prices on their vehicles and that you can’t buy them for the price they advertise?
Not gonna happen. Not in the us anyway. Dealers are protected by laws that allow only them to sell new vehicles.
Agreed. I don't think I'll ever buy a car at a dealership. Because I don't want to have to put up with all their crap.
Dargonhuman the predators are the insurance companies. They are willing to take your $500-$1000 a month, yet not cover anything but a routine check up once a year. The fees are flat and unchanging coming from the clinic, what your insurances covers, changes week to week.
To reference the top comment. He has been blessed with the TH-cam algorithm again.
yup, just seen it on my homepage. good watch.
Algorithm. The word is algorithm.
@@mariokarter13 I have been shunned by the spell check...
Word.
Buying my wife’s car the sales guy couldn’t believe I wanted to see total price, payment, and interest rate all at the same time.
just part of their game
I'm surprised you wasted your money financing a new car
@@RandomAnonn where did he say he was financing the car? The video said you should ask about the rates anyway.
@@Spyblox007 because the only way there is an interest rate is when you need to borrow money.
Fake Bill Burr Or when you're weighing your payment options because you actually have payment options. There are times where I could pay cash for something where I finance anyway. It depends on the opportunity costs. If you can do something with your own money to make money, or make the same money using someone else's money, make it with someone else's money and use yours for something better than buying a car.
When you're dealing with ppl who are tryin to lie and cheat you, I have no problem treating them the same.
@Abdel Halim Mustafa i have a "1 fault rule" they can step wrong one time, and anymore than that and i just walk out of the door.
Most new car dealers are not trying lie and cheat anyone. Their bread and butter is repeat business.
@@gregkramer5588 Many old timers still think that buying under invoice is a good deal. that is the repeat suckers they love.
Yo Pappy I work in car sales and I try my best to be honest and treat people like I want to be treated. But I hate people who just come in and be rude to me for no reason cause they believe we as car sales people are below a customer class. That’s bullshit and people suck
@@jeffkuykendall3189 Yes mean people suck. But keep in mind, treat others as you want to be treated. Also please forgive the people that were rude to you. Carrying around the hurt can't be good for sales!
So saying "I"m paying in cash" is a better way of telling the salesman "I'm just browsing".
Im sure they'd be happy to charge you extra
It's actually worse than saying browsing. Browsing implies they _might_ have a future fiance sale if they show themselves well. Cash is they're screwed no matter what.
edit: typo
Tnb Spotter, did you watch the video?
No, "I'm paying cash" is a way of telling the dealer they're dealing with someone who they don't have to work out financing miracles to make a sale for. It's more like jumping into the ocean surrounded by sharks, but slashing your wrists first. All that does is chum the water and tell them they have a fool they can part from their money and not have to worry about where it's going to come from.
@@sparky772 that's not true cash buyers just tend to not pay as much and they don't buy warranties or matinence plans.
I'm 51, and I'm still waiting to find those "good" and "respectful" car salesmen and women.
I'm still looking for that used car with 150k miles on it that was "driven exclusively to church and grocery store by an old lady" without transmission damage and tuning.
@@Mic_Glow Yeah, my first truck was one of those. It really was single owner, I but don't know what the hell they did to it....
Craig those good ones lost their jobs long ago
@@Mic_Glow you missed my 2002 E320. I sold it in December with 60,000 miles. and 18 year old car with 60,000 miles, garage kept. driven very lightly by my wife. it was a peach.
I am actually one of the few honest car salesmen in the industry. I am also a ASE certified mechanic. I work at a very small dealership so I do the buying, selling and repairs. I am 100% honest with my customers. But 99.9% of the car business (repair or sales) are fricking snakey crooks!!!
I usually let them know I’m paying in “Coins”
😂😂😂
Y'all take Bitcoin?
According to the Reserve Bank's website, coins are legal tender for payment of amounts which are limited as follows: Not exceeding $5 if any combination of 5c, 10c, 20c and 50c coins are offered; and not exceeding 10 times the face value of the coin if $1 or $2 coins are offered
@@847MicRoss The reserve Bank of Australia you mean? I don’t know of any restrictions in the US.
@@frakturfreak There is.
I actually love when the dealers come at you hard. They are usually the ones that are harder to negotiate with, but I smell their desperation, and they will usually go lower on the price.
Makes it a bit more satisfactory when you end up getting everything you wanted too...and then you finish them off with your own financing or cash at the end.
the aggressive ones are the ones whom arent making their sales quota and need to make a sale to get paid (dealers are comission based).
My wife and I actually notice that too when buying our truck in 2015 lol. We just about got up and walked out of our negotiation and the dealer ended up just accepting our offer lol. We saved thousands.
We use Car Gurus, that way we get the best price, get a premium authorization from our credit union, go in test the cars on our list, and say "no" to extras. So far it's been a much happier experience!
@@j.s.3414 That is key to getting the deal you choose! Car Gurus helped us big time too. 😉
NOTICE TO VIEWERS: Many of you have asked about luxury or premium car dealers. Should you expect something similar from them? Lexus, Mercedes, BMW, just to name a few (there are many more). While it's true that similar things can happen, luxury car dealers have a relatively clean process as compared to a typical used car dealership. Just by the virtue of the buyers they see, mostly influential people with money, they already know they are dealing with a person who is savvy with money. You don't try to blow smoke up the tail pipe of highly qualified buyers and stay in business very long, especially when that's 100% of your business. So I would suggest to simply be aware as you already are, do your homework, and you can largely expect a nice buying experience at a luxury car dealership. Some of the customer service I've seen there is "off the hook" amazing. Feel free to comment below if your experience at any luxury car dealership was different.
You have a very enjoyable, clear and supportive way of explaining things. I can confirm, Mercedes dealership, for anything, will be a day you will remember fondly.. I would warn, they will try the whole "it's only 2.5%" in the selling a loan to you. You might think, I could just bank the price of this car in a mutual fund paying 5%, and this loan is now a no interest loan. But you won't do that. You won't want this loan any more than 2 months after you take it out. The thrill is gone. The hot woman who gave you the instructions on the Blue Tooth radio and the GPS is not returning your calls. Just say "NO" to car payments. Spend for today, consume for today, and buy Gold, real estate, even stock shares on credit. But not cars.
@@BrisLS1 That's funny, I got that whole "why not finance the car and use your money for investments instead" thing. I told the guy that I'd never had any luck with investing before and that probably wasn't going to change any time soon. He was a nice guy, though. Low-key approach, even though it was a Mazda dealer not a luxe car dealer.
Can vouch. Buying both my Audi’s was night and day better then buying a toyota.
@@beardedbarnstormer9577 yet how much longer would a Toyota have lasted.
I've bought 4 BMW at different dealers over the years and (in Canada anyway) have noticed a huge schizm between dealerships. Smaller cities with less volume tend to be very, very good. Larger ones in cities where they sell more units, or higher value units, tend to fall back on "common" dealership tactics. I've shopped Audi and Mercedes as well and they don't seem as bad as Bimmer. Maybe it's just the ones around me but my 540 is probably my last...
My husband researched our car and decided how much he wanted to pay for it (private or dealer out the door). We ended up at a dealer--it took about three hours of back and forth to get the car we wanted at the price my husband was willing to pay. I sat quietly and watched the back and forth haggling, the getting up to reconsider, and the absolute magic of seeing the dealer concede and sell us the car for the exact price, to the penny, that we were willing to pay. It was amazing to watch.
They tried to charge me that cash fee and I laughed in the salesman’s face. My wife and I got up and I said I will buy another car. His attitude changed very quickly.
And if his attitude did not change somehow.. used car owners are always happy to accept cash after all.
Thanks for the image of you laughing in a salesperson's face.
I loled
In the U.K., a regular con at the end of the sale is when the salesman says “Oh yeh, and there’s the admin fee of £100”. They tell you it’s because they have to do checks on the car to make sure there is no outstanding finance on it and that it has not been stolen or involved in a crash. It will only cost around £5 to check yourself but the question you should ask is - “Are you saying you have taken in a car and you don’t know about these things yet”. The “admin fee” is just a nice little bonus for the salesman if he can get away with it.
I got that once. I had done the check myself and when he pulled this one I showed him the printout. He was adamant it was a “fixed cost” and I told him well I’m not fixed to this chair ..
CarFax :D
Rule #1 about negotiations: “Who needs whom more?”
Depends on the sales guy you are talking to honestly lol. Pompous customers say shit like that to me and I arm bar them. Its ALWAYS a cost deal,I'm not making more than $50, which I dont need, just like the prick customers,holier than thou, attitude. So I'll let him walk and restart the whole process over somewhere else.
I work for me, not the dealership, just like customers dont care if i get paid, i don't care if my dealer gets paid off my sale, they make a grip everywhere else. So I'll kick people out that act like I should be kissing their feet because they came to my deal to try to steal a car.
Makes my job easier, less stressful and ensure I have repeat customers that I actually want to see and enjoy talking to.
@@danteb925 interesting. I've walked away from plenty of entitled salesman like you. I like to be treated like a pretty entitled queen when I'm buying a new car. I guess that's why I only buy luxury brands now. They know their customers and pamper me like a bitch as I throw money at their faces. You sound like a kia or Toyota salesman.
@@constantlyjohno You mean lease luxury cars, because you're cheap and care what people think of you, lol.
Know your worth, dealing with a snobby cockbite that will yield little to zero profit is a bad use of my time and I sure as shit dont need their business lol.
@@danteb925 sounds like you're in the wrong business buddy! If I could see you right now I'd throw a wad of cash at you and then buy a car from you anyway just to make you take that $50 commission. I mean, don't tell me you'd refuse to sell me a car??
@@constantlyjohno Hmm, seems like I'm in the right. Keeps me from having to deal with idiots, less stress, more money. Seems like I'm winning on all sides chief.
The amount of time it would take me to tell you to kick rocks isnt even worth the commission bud lol.
I almost didn't watch this video. The title and thumbnail were so click-bait that I didn't think this advice would be real.
But here I am, and glad I watched it right to the end. Understanding the history is a very helpful component of understanding why the business models have adjusted
My wife's car recently died, and I've been frustrated with the thought of having to deal with the car buying experience again. You videos were just recommended to me! Thank you for the tips! That's a new sub from me!
Cashing in on that life insurance eh?
Alessandro Moretti wifes CAR
Go ebay bro. I've bought three cars in the last 12 years from ebay. Never going back to dealers.
Your phone is listening to you.
@UCwI6DdQsEjo_8dghbB3OZYQ I think car salesmen act that way because they have a lot more opportunities to trick someone into a bad deal and they know it.
The most important thing you can do at a dealership is walk. Walk from every deal. They'll call you up at home later that day
@mike A untrue. They can't turn away willing buyer's. Some profit is better than none.
@mike A NOT true- the cars are not evened owned by the dealership, just loaned on paper.. Many more where that one came from. You can get "invoice" less all the "holdback" and they still make 2500 on each sale.
@mike A It's not about what they make on a car, it's about number of units sold for the month. That's why the best time to try and buy a car, is the last week of the month. They're trying to move those cars. How do I know this? 30+ years working at car dealerships. The end of the month is hell for sales,service,parts,etc. Everything is about the numbers for the month. Period.
@mike A ...Your comment is already edited and still says "$25 years of experience" way to go
@@voiceofreality9741 Yea maybe on a NEW car but not for used cars they usually get those from dealer auctions...
I learned that last year when I bought my Mazda all the dealers treated me like crap.
@Robert R I had the same experience with Mazda last year.
jamie5303 Actually my salesman at the Mazda dealership was quite good, finance guy was no worse than I expected. That dealership lost me on service after the sale. I guess overall Mazda has some of the lowest rated dealerships of all the major brands, which is a shame because they make some of my favorite machines
@@brucemorris3830 Mazda is a major brand?
Bruce Morris 9
Bruce Morris We own two Mazdas and I agree they hold up real well.
Gotta love how debt is now America's #1 product.
And debt is the precursor to slavery.
This is the way to beat them. Just realize you’ll walk out of 20 dealerships before you find the one that’ll actually let you do this.
TouchéPadre they usually have great donuts and coffee though so you can make a day of it
no it isnt your wasting your time going to 20 dealers lol also. learn to negotiate.
This is one of the great points of the video. Don't let shady dealers get away due to laziness
@@RedThunder0000 That's what I did last time. Made sure I had an entire day to lolligag around at a Honda certified used dealer in Delaware. I went outside, test drove it home, leisurely lunch at McDonald's, went back, chatted some more with salesman. It was a slow, fall beautiful weekday. I had previously noticed the car was on the lot a long time, probably because it was an Accord with a stick shift. We just sat around and chatted about everything *but* the car most of the time, especially the Beatles. This was 2010. He already knew I was paying cash. In the end I got about $3,000 knocked off the car's price and ended up paying less than I would have paid for a same age Civic with stick that sat right next to it! I preferred a Civic, but I wasn't going to turn down a bigger, cheaper, same age car with lower mileage. TIME IS YOUR FRIEND.
@@blue22inthe412 This is also true. Customers often fatigue themselves into buying something over a few hundred dollars that they end up liking a whole lot less than they thought over another car, OR you drive and look at so many cars over a long period of time that you can't even remember what the 1st car was like (which also ties into buyer's remorse like above).
People: you have the internet. USE it. Find the car that best suits your needs online through reviews and videos. Narrow it down to like 3. Drive them all. Be willing to bounce to another dealer of the same brand if you encounter "THAT GUY" salesperson. Every similar class of vehicle is priced similarly, and that's not by coincidence. Find the combo of the car you like most/salesperson you feel most comfortable with and smartly work the deal. BE REALISTIC. Markups these days are no longer what they were, especially on used cars, although the virus is changing that some right now.
It's YOUR money, YOU earned it. Spend it wisely, but don't pass up a great deal on what you want either to squeeze a couple hundo more when you're already winning and you know it.
I bought a car from a dealer many years ago and the financing just wasn’t coming through for some clerical reason, kept taking time, so I got fed up and told the salesman I’m just going to come over with a check for it. He had been so cool but turned very hostile all of a sudden. Told me I was lying there was no way I could just get a check that fast etc etc. Threatened to sell it from under me. I told him I have a signed offer and I’m coming over now and the car better be ready. I showed up and left with the car. I was so confused. Years later I ran into an old coworker who had gone into sales and was a sales manager at a dealership. I told her the story and she said yup, not surprised. It’s because you came with cash. I was like what? She said financing is where we make our money. We can make over a thousand bucks on a car with financing. Cash deal? Maybe 100 bucks. Maybe. I was blown away, but it sure changed the way I talk to salesman ever since.
Ka wi it sucks their are so many salesmen that do this, thank got our model doesn’t treat them this way. The salesman doesn’t get an incentive for customer financing but the dealership does get an incentive, it’s like a finders fee most of the time for writing the loan for a bank and as long as they make usually 6 payments, they get their incentive. So another trick when paying cash is to finance and when you get your first payment pay it off, but make sure to check the contract to make sure this is allowed because some banks do not allow this, also even tho I have never heard of this, make sure their are no finance charges.
When I bought my Ford Superduty, I did exactly what you said, except that I took out a 24 month loan, then paid the entire balance on the first payment..... 2.6 percent with no prepayment penalty.
Super Dave prepayment penalty what’s that?
Kera Atkins some places will charge you a fee if you pay off your loan early.
I have done the same by getting the bad interest loan from the dealer to get the good price then made one payment and paid it off. I acted like I was poor and couldn't afford it even though I had money in my bank.
So if paying in cash is such a fight (and a bad deal) meaning you can get a better deal financing.... what's wrong with agreeing to finance (at any rate that gives you the best price) And then once your first car payment bill comes in, you just write a check to pay it all off?
@AGStros
That’s what I explained in my original comment!
Re-read it.
I used cash for my last used car purchase. I walked in and said , " I would like to buy this car, I have X amount and its all I have . I've got 5 other yards to look today and don't have time to waste."
I have never seen a personality on a person change so quickly. I got the car but in the end he basically said , "take the car and f@#k off' Even though I knew I got a great deal,
this experience didn't make me particularly happy. It was a pretty shitty thing to go through.
What a pathetic world that man has created against man.
I kinda did the same. I didn't say cash or credit. The company wanted $7,500 for a 2009 pickup truck. I said, "Well, I've got $3,500, and can get my hands on another $2,000." The guy says, "Ok, hang on a minute...." Goes inside. Comes back out and says, "Ok, we can do that." When I came back with the cash, they even dropped it another $500. So, I bought the truck I wanted for $2500 less than they had on the sticker. They said they had had it for a while and just wanted to sell it. You should have seen the owner's eyes as he watched me counting out the hundred dollar bills. Acted like he didn't care, but he did. This was a small used-car dealership in a medium-sized town/small city. So, results may vary....
@@afterhours39 ,
Just a few months ago I bought a 2009 honda pilot 4wd from a small private dealer on consignment. It was listed for $11,900k. it took about 20 minutes of negotiating, but I got it for $11,250 with their own 3 month 3000 mile warranty, up from a 3 week 300 mile warranty. It wasnt fantastic, but hey, they did it.
I know for a fact that it could have sold for their list price. It wasnt a gouge, it was fair. But I had cash then and there.
That salesman and the dealership he works for should be put on full blast on the internet. Call me old fashioned, I think he should have been invited to come on down and get what he really DESERVED. Is that a threat? Gee F around and find out. I can appreciate you taking the high road though.
Sounds fun to me
I wish I'd seen this 3 weeks ago. They definitely got me with those hidden fees. Increased my loan term and upped their profits by 8k.
Dam man. That money you could have invested or used for any future repairs and gas
While it may not help a whole heck of a lot, some loan banks (I know ally auto does this) you can choose to pay more than what you agreed on each month to finish paying the car off sooner.
Yeah im making double oayments and every dollar i pay above 466.00 per month is interest free. Im going to pay 850 per month and get it done fast.
@@skimo274 be sure your loan is written to achieve that. My last car loan, the extra payments I made credited only to the next payment not off the principle bal. When I found out that I was 12 payments ahead but didn't reduce the loan balance I was mad. [Ha] I'm not sure those types of loans still exist. It made the bank a lot of money. Even paying the loan off early had a $3K Penalty.
The next time I got a loan from the credit union before I chose a car. Now. I pay cash.
@@brrjohnson8131 WOW thanks for the heads up. That happened to me on my home loan but I never thought it could apply to an Auto Loan.
I purchased a new car about a year ago (I'm in Australia). I went to one local Mazda dealership and worked out exactly what car and options I wanted.
I asked the dealer for his best "on road/out the door" price on that particular car, he asked how I would pay. I said "we can work that out later."
I informed him that he would need to present his best price as I would be visiting other Mazda dealerships before purchasing.
He actually came back with a great price, I thanked him for his time - went home and called the other 12 or so Mazda dealerships within about a 75km radius.
I told them exactly what car I was after and for them to make their best offer as I would be shopping around. (Some dealerships were rude and said they would only deal face to face, I said thanks for their time and hung up).
Once I had obtained the 3 lowest prices, I then phoned back and forth between those 3 dealerships seeing who was prepared to beat the current lowest offer.
I eventually arrived at the lowest price. (From memory the original sale price was around $40k however the car i wanted was on sale at that time for $35k, I ended up paying $31.5k for my car out the door.
The whole process took me about 2 days to go and view the car and make all the phone calls etc.
I recommend buying this way as you can simply inform the first dealer that you are only hunting for prices. You can also hang up on the dealers you phone if they are being rude or pushy.
I went in to sign the paperwork the next day and told them I was paying cash - they didn't seem to mind. Picked up my car a few days later.
Good tactic.
Problem is, those Sales People also need to feed their kids, pay rent and bargain just like you would.
They're human too.
One of my high school teacher used to work at a car dealership and he literally told us the exact same thing. Another he taught us was get the salesman to write their offer down and go to another dealer, inform them this was the offer given, then theyll make a better offer and get them write that down and keep going back n forth till your at a number your comfy with.
yea this seems like the best way to do it imo. always tell the first seller that you are shopping around for the best price and will get back to them once you compare with other sellers
I'd recommend going to an auction instead actually. You'll find that's where a big portion of cars come from and end up being tidied up ready to be put on a forecourt with the checks of course. I paid £1,425 for a 2010 Astra J with 67k miles on it, when on a forecourt it would expect to be average at £3,000.
Do keep in mind you also allow yourself some money to put into the car yourself :)
@@southernkatrina8161
Yeah they said they would have to fill out a form if a actually handed them a heap of cash. I did the "cash payment" via bank transfer.
As long as there isn't an early payment penalty, take out the loan.. and pay it off in month #1.
You get a better deal on the car, and a boost to your credit score too.
Paying off early drops your score. Making on time payments raises it. It makes no sense to me but that's how it is. My score dropped 27 points when I paid off my student loans in a big lump sum. I never recommend borrowing money, unless it's a mortgage. Definitely not for a car that drops like a rock in value.
Paying off early does not drop your score, but it won't raise your score either. If you keep your car for at least 2 years and then pay it off you will see a score bump, wait 3 years, a little bigger. In 2015 I bought 3 cars. Waited a year and refinanced all of them, my score jumped a few points when I showed 3 vehicles that were paid off. Then 2 years later I paid off one car. I only have 1 car I am still paying for, which will be paid off in October. The reason I did this was because when I became disabled I lost everything and my credit went down. When I got my mikitary disability and back pay, I had no credit. I had to rebuild. I had no GOOD credit history. Now it shows I have paid off 5 cars, and making payments on 1 so far. Plus I have 3 credit cards. I am trying to buy a house and want a credit score that will get me a good rate. I lost my house when I became ill. My score is now 742, and once this car is paid off it will go up. I want to get over 750 before I buy a house, so my rate will be good. 2021 I will be able to finally buy a house again. Been a long road, but I have been patient
@@michaelsutterlin6178 www.nerdwallet.com/blog/finance/credit-score-pay-debt/
Like I said, mine dropped 27 points. That's because I closed multiple accounts since I had many separate loans. Anytime you close an account, like a credit card for instance, your score takes a hit. Close many at once and you take a big hit.
@@michaelsutterlin6178 Thanks for the insight and good luck to you.
@@michaelsutterlin6178 paying off too early DOES drop your score. I was told getting the loan was a hard credit pull so that dropped my score. I paid it off too early - 3 months of payments then I managed to sell a couple things to pay off my loan - and my credit score stayed low because 3 months of payments wasn't long enough to establish a payment history
my mother always told me "never volunteer information" and this could never be more applicable
Play the game. Talk in terms of finance and get the best deal you can, then stroke a cheque at the 11th hour.
I did that once. Thank goodness.
Did just that last year. Got great rate after salesman conferred with financial manager. Made deal, saw paperwork with processing fee of $300,told them I’d pay today but no fee. They said no I got up and told them to keep it and they didn’t believe me. They then asked “today”? Got cert check and they had to make sure I wasn’t a drug dealer and held up for about an hour. Not as easy as it seems.
Spelled check
@Barry Boppins Car Max is a no haggle place.
That's exactly what my sister and brother in law did. They are rich, cheap weasels.They argued for the best deal they possibly could get for a good 1-2 hours. After they agreed on the price, the salesman was ready to arrange financing the vehicle. My brother in law said cash. The dealers make a lot of money on the financing. Later, when my sister told me the story, she says, if they don't shake hands with you, after the dead is complete, you know you made a good deal.
works fairly similar with motorcycle dealerships. I bought a 2019 Harley-Davidson Road King Special last May. Yes, I paid in cash but I left that out until the total cost was negotiated and agreed upon. A very unlikely recommendation but I thank TH-cam for it. Great video and great advice
Why would it be different? Still a dealership selling you a vehicle. Nice flex though
Okie b00mer
@jeremy Permenter thats great! didn't they try to subtly find out if you were a cash buyer before agreeing the negotiations? They never hinted or just wanted to check just incase so they didn't screw themselves over? Or did they literally assume you were a finance buyer all the way
@@ohasis8331 ok boomer
@@demonraptor1 They could easily say said discount is if you finance. Which that kind of discount is advertised all the time. So if you choose to say cash instead, they remove the discount. No quote or anything is signed until they know the payment method.
I got up and walked out of a deal in process because they kept adding fees and wouldn't budge on the cost. So I left...
S A it is funny that they think they have the only cars for sale, uhh goodbye sketchy dealer!
I did that and they followed me to the parking lot, still trying to get me back.
@@cuzz63 that's crazy. Did they cave and give you a better deal?
@@SA-gf7uf yes they did. I also talked them way down on the warranty then didnt buy it.
@@cuzz63 wow, absolute mad man
The last car I bought I paid cash !
700 bucks ! Seven years later still going strong.
haha nice i have a 1000$ 1981 celica that has last me 5 years but really i put more into it from maintenance...like 5kish
A friend of mine was a GM of a dealership, gave me $500 for a trade-in that the dealership valued at $1 (as a favor). He sold me the car at the price the dealership bought it at, $3k off the sticker price. They lost almost 4 grand on the sale, and when I asked him why, he said "corporate gives us bonuses for having the most sales in the state, but they don't look at the profit on individual sales."
And then I knew I had just walked into a shark tank as buddies with the biggest shark. I really had no idea how tf any of it worked till then.
This is only on new cars and usually they have separate money the GM gives them for them to close a deal. The GM usually gives these discounts to their close friends or family, even people that come and buy a lot of vehicles frequently.
@@FamiliaDeltoro it was actually a used Honda at a Toyota dealership!
@@LonnyH Used cars come with sticker prices?
@Stormy D. I guess you didn't see the "? mark" at the end of my comment meant to clearly denote sarcasm.
Sorry bro. You dont know form 8300 very well or how dealers handle them. Paying a dealer with two cashiers checks at 8k each will get you a 8300. Looking shady buying a 6k hond civic cash will get you a 8300. The dealer doesnt even have to tell you its being filed until after the fact. A wire transfer, however is not considered cash and doesnt warrant a 8300. Over 10k or not. You technically arent buying a car with "cash" if you do an EFT or wire transfer like you mentioned in your vid. Or if you have a single money order/personal check/cashiers check for over 10k. There are absolutely ways to walk into a dealership with 50k in actual cash and walk out with a car, legally, with no 8300, but the structuring laws and fines are pretty harsh if you dont know what the fuck you a doing, like the guy in this vid. If you have 30-50k in cash, you have a CPA. Talk to them about cash transactions and dont listen to piss poor advice from grease balls on youtube. Here's the link to the IRS page discussing when/where/how dealerships can or are obligated to file a 8300
www.irs.gov/businesses/small-businesses-self-employed/report-of-cash-payments-over-10000-received-in-a-trade-or-business-motor-vehicle-dealership-qas
Hank Hill always pays sticker price “NOT A DOLLAR MORE!”
I loved that episode, he seriously thought that he was getting a killer deal in reality he was just getting screwed 🤣🤣
Hank got screwed by same dealer time and time again, lol
Hot4 Teacherz 5 cars lol
yep
Times have changed. I was a used car dealer in the mid70's and cash was the motivator
When I was buying my second car, I went around to some used car dealerships and all of them immediately asked me how I'm paying. When I said cash they said they don't deal in cash and showed me the door. It was hard to even find a used car place that would take my cash! That was about 10 years ago. Since then I bought my next car from family.
2020: you have money? You can’t pay for that
Says the Federal Government that issues the currency, no less. Form 8300 probably makes you a mark for future law enforcement targeting for "civil asset forfeiture".
@@Acoustic_Theory Time for a new currency
@@joleezanes5938 government's are already working on the cashless society. Tracking your every move is their specialty.
@@th3guyb3hindu98 indeed it is and do you watch acfau?
@@th3guyb3hindu98 Thanks for being awake
Just like my dad taught me, that said Cash is still king for private sales!
To paraphrase an old joke about lawyers...
The trouble with car dealers is that 99% of them do things that makes the rest of them look bad!
Brilliant..!!! I'm going to use that one...
Same goes for general contractors.
@KEENAN LAD Sigh. The way he heard the joke originally, it was about lawyers. He reworded it to imply the same thing about car dealers.
@KEENAN LAD he paraphrased it
@KEENAN LAD How is babby formed?
Charging a fee to pay with completely legal tender kinda sounds illegal
Its not as there is no law stating a business must accept cash as a form of payment. I'm not saying it's right to either
You might be right( i’m not sure), but either way it makes the government money so they’d never do anything about it
How to buy a car.
Step 1: Don't go to a dealership.
Exactly. Always leave the middle man out
I work at a dealership cash doesn’t matter to me unless your credit is awful I try and do my best to get you what you’re looking for asking how your paying is kind of important to know what I should and shouldn’t show you this guy is looking at it from the worst POV possible then again I work at a private dealer not a place like Toyota or Honda so I can work with prices a little more than they can
lexXx1005 is it a good idea to buy a car at the end of the month of March? Ty
@@ShabaaUkelele go straight to the factory!
@@JasonPopan I did 😉
TH-cam: "Hey fam, in the market for a new car?"
Me: "Well no, b-"
TH-cam: "GREAT! Watch this!"
i don't even drive and i watched this ... for some reasons
It’s because you’ve watched a video involving cars recently. The algorithm isn’t like yu fucks think.
I'm always in the market for a car. I really want a project car but I haven't found the perfect one yet.
@@iamthefuss934 not really, that's a dumb way of doing it actually. It infers whether you're going to _watch_ it if your personality signature (as determined by yt algorithm) is known to have watched it.
This video is cursed. After watching it the engine in my jeep blew and I had to go out and buy a new car anyway.
Hey Kevin!!
YOU ROCK!! Your advice is " PRICELESS" and you speak CLEARLY AND SLOWLY SO THAT EVERYONE CAN UNDERSTAND YOU!!
BRAVO BRAVO.....ENCORE!!!!!!
Great video. I spent 1 month as a salesman for a dealership selling used vehicles. It was the worst job I was ever in. Not only was it extremely stressful having upper managers at your throat constantly to sell sell sell but always knowingly doing the exact things said in this business was just down wrong and demoralizing. As soon as I got outside the office on the lot with customers I leveled with them and told them I was on their side. Granted I did not make very much money and left lol.
God its ridiculous that you have to do all this to give someone some money
*God answers*, "Money be da Devil's Department, don't go puttin' my name on that BS!"
@@brianandlynphilippines legit megachurches make half a million dollars a week
It’s really quite simple, if u don’t like the deal walk away...there’s plenty of other dealers out there with plenty of inventory...if they get pushy I walk out...but then again i never fall in love with a car...
@@ca9inec0mic58 megachurches are about money for the pastor and his wife.
They want to put you into debt in case you don't pay, fall behind, being repossessed, and then for new 2020 cars, insurance is automatically needed. If someone can't afford it all, no business...
I had a guy say, "Oh, you think you'll get a discount for cash. A lot of old people think that way."
How to deal with that person: have them lower the total to make the deal on the loan, then pay it in full the next day
@@RobertMorgan : That's actually what they told me to do. It might be a good idea just to keep credit up. But it seemed so convoluted. I ended up buying an almost new used truck from a small potatoes used dealer - for actual cash money.
@@RobertMorgan A lot of car loans have precomputed interest built in. So if one day, you decide take out a 3 year loan with precomputed interest and pay it off the next day, you would have to pay off the principle plus 3 years of interest.
Just negotiate the best price you can, without telling them how you’ll pay. Bust out the cash only after you have the price in writing.
If u can, just buy it straight up. Much cleaner, faster, therefore better for a deal.
I’m gonna walk in and scream “I’m planning to finance” next time
LOL this comment is golden
Lol you still pay more than the cars worth when you finance illness you get a 0% interest rate.
@Maya Goodwin worst are people who say i can afford 300 month they will get a car that could get for 250
JR How about “I.... DECLARE.... BANKRUPTCYYYYYYYYYY!!!!!
The Fitness Life Have you ever actually read the fine print on any 0% financing offers when buying a car? Nobody loans you money for free. With 0% interest, they've just rolled all the interest up at the front of the loan so you've paid the full amount even if you pay the loan off the next day. The dealer/bank ALWAYS wins when you do 0% financing. You're nearly always better off financing with a good low interest loan if you have the credit to qualify for one than if you take a 0% loan.
I would STRONGLY encourage you to actually read through all the terms on a 0% car loan.
Last week went to a Toyota dealership, I made the mistake of mentioning $12,000 down payment m. When I asked the estimated financing of the rest. They gave me a long list of fees, extended warranty, huge car registration fee, something with a weird name $2,000, tire fee, etc. So, basically my $12,000 almost disappeared in front of my eyes in that list. I told the salesperson, let me take this paperwork to think about it.
It’s sad, we want to buy a new car and we have to deal with these crooks that are willing to rob you legally and with a nice smile.
You'd be so proud. I walked out of 5 local dealerships with this method. I said no to all the unnecessary made up fees and refused to be redirected and psychologically corralled into their agenda. I finally found a great car and got it well below market value. It's been almost 2 months since I bought my car and I'm still getting phone calls from those other dealerships. I have answered every phone call and I ask to speak to the manager. I make it a point to tell them that I already bought a car from a dealer that didn't try to scam me. I then tell them that they had better rethink their tactics because more and more people like me are educating themselves and will no longer tolerate their ruthless BS. Thank you for your straight forward advise and for cracking open those dirty little dealership secrets.
kimberly vanderpool then what happened after u woke up
@@upgradednigga LoL
I hate customers like you lmao
You can just imagine how corrupt the hidden side of automotive sales is if this is whats just on the surface.
Clueless Blamer I was in sales for 6 years and yes there is some nasty stuff going on behind the scenes at some dealerships...on the flip side, there’s many that are attentive and caring-they understand that the best way to do business is my establishing a long-term trusting relationship. A life long car-buying customer who services their vehicle with you is a much better approach to longevity and customer satisfaction.
Well, like any industry, those with knowledge are always tempted to take advantage of those that don't have it. Not all succumb to the temptation, but it's always there.
That’s why I’ve walked away from many dealerships. Their loss on a 70,000$ truck. The great part is I found one with 10,000 miles on it for almost half the price.
I still cant stomach writing a check for a new truck these days. Mark ups on them are insane.
@@ninjamaster3453 that's because trucks and SUVs are the only segment "growing". Recent reports, Recent like a year ago, have come out that the especially sharp decrease in sedan sales in the last 3 years and the ballooning of the used car market is due to potential buyers waiting for electric vehicles.
The sales, growth, and adoption curves of ICE and EV vehicles match black and white and Color TVs and ICE vehicles and pre motor transport options.
Scotty Kilmer thanks you. Never buy a new car!
That's because they don't make as much as you think of a $70,000 truck. The manufacturers bend the dealerships over just as bad these days. The discounts they put on them is because the companies give them that difference, not because they always have that as profits.
@@ninjamaster3453 They aren't... Mark up is only 1%-2%. The manufacturing plants have been bending dealerships over like crazy. This is why cash is no longer king because it's too hard to make money without financing. I sold brand new trucks until 2019, and we got paid 25% profit per a unit, although after rebates and such, we would only be paid $200 off a $74000 Denali after rebates.
My little brother when he bought his first car, the first thing he says is "I have $2000 cash to spend. What's the best car I can get with that?"
Ouch
Salesman: Yes! Yes! Yes! *YES!*
buying a $2000 car vs. a later model vehicle is two different worlds. and i've had my best experiences buying budget cars from private parties.
Is he driving a grocery buggie with a $75000 loan attached to it now?
They gave him a $1000 car for $2000.
Buying a new car makes no sense for 99% of people.
@tony baloney Exactly!!
@DrogbaLegend Key word here is "sense" in that those extra 29% have none!
I always buy new. I don't buy a car for resale value. I buy new because its what I want. Don't care if it's worthless when I'm done with it. It's funny how most of you think you're smarter than everyone else. You're not.
@@kent266 Buddy: I have a great avocado grove in Alaska..You can impress your vapid, egotistical, materialistic "friends" and your millennial, brain dead children with this purchase! I'll provide 35% financing also!
I buy new because I can get exactly what I want and that means not overpaying for features like a sunroof. I want reliable transportation for 80,000+ miles: I don't want to shop for a car every five years. Most drivers are stupid and abuse cars by overrevving them and driving through holes. I also fix every paint scratch or torn boots. My car gets regular maintenance. I doubt if my "luxury" costs me more than a couple hundred dollars/year on the balance.
I can’t wait to use what I’ve learned from this video when I never end up being in a position to buy a brand new vehicle in cash.
Fo sho.
Laces out 🤙
Instead of making a car payment, just put that much into a savings account. Buy pre-owned. Rinse repeat, save thousands over you life of car purchases.
@@notosure2148 or use that money for mods or repairs.
Brand new? Make sure its at least 5 years old so ur not paying for depreciation
@Ray Finkle
This is what I did 20 years ago and I don’t see why it would be different today:
I found it very easy to get the lowest possible price by listing out _exactly_ what I wanted and faxing that request to the closest 20 dealerships that I would be willing to drive to to pick the car up from and let them duke it out amongst each other to offer me the lowest price to get my business.
After I was offered the lowest price I could get (which I knew was no BS, because I knew how much the dealership had bought the car for from my research), I walked in for a very quick stress-free business exchange with my checkbook to pay in cash, and the dealer that got my business was so impressed with what I did, he asked me where I learned this technique... he admitted to me that they made _zero profit with my business,_ but sold the car anyways to me to unload the vehicle off the lot, as towards the end of the month it looks better for their bottom line the more cars they move, and it makes room for new stock. They were fine with not turning a profit here and there for that reason.
At that point I had no problem sharing - I had bought a paper kit full of EXCELLENT research and instructions of what exactly to do off the internet, which was mailed to me and called “The Fax Attack.” No joke, the dealership folks were extremely impressed. I didn’t have to go in to do haggle with anyone or experience that stress. The price was already set in stone before I walked in and yes they knew I was going to pay in cash before making an offer to me.
As long as your flexible to go drive far to get your new baby to widen the amount of dealerships to make this technique work, I don’t see how you too won’t be able to walk away with not giving them a dime of profit if you pay in cash. Luckily for me, the winning dealership turned our to only be a 30 minute drive. :)
P.S. the company/business for the fax attack is still around - I just looked it up. :)
It’s called “Fighting Chance.” Just google this “fighting chance fax attack james bragg.” I promise you the packet he sends you is well worth the money. It looks like he charges way less these days too, compared to when I bought the customized package. I don’t think you need to pay in cash to use his technique, btw. Just read his website and you’ll see.
I'm not sure how this video came up in my recommendations, but I'm hoping to buy a new car soon with cash, so thanks! Great information!
Go ahead and try this bullshit and see what happens!
@@OutlawChevy2 there's still plenty of idiots to go around, don't be butthurt
Right? I'm not even close to a car guy! However it was a good and informative watch.
Get the loan if it helps you get a better deal. Then pay it off with the first payment. (I didn't watch the video, this is what I did)
Car salesmen are all evil.
This is a golden video. I've experienced with exactly what Kevin has described, while I did not pay cash, I was ripped off big time on the finance, no matter how low the number you have on the out of door price, they will make you focus on the monthly payment number. Once that's done, take the monthly number and times how many months you are gonna pay, you will realize you are paying at least $3000 more than the original out of door price after interests being deducted. It is because they raised the original price without telling you. If you point that out, they will tell you " I thought you were ok with the monthly payment. I thought that's whats most important for you, bluh bluh bluh". And they try to make you feel guilty, and make you feel like you are dishonest and shameless. Well, remember it's your money, and they are only there to take yours. Never feel bad about protecting yourself. Many car salesmen are manipulating narcissists, especially the "good" ones. Make sure you do some math before signing anything. And always be prepared to take off, and be prepared to visit multiple car dealerships multiple times. It'll be worth it for saving $3000-$5000 dollars. Also, I am done buying brand new cars from dealers. I purchased my last two cars from private owners who had their cars less than a year. Get some good inspection mechanics to look at. You'll save at least $5000, sometimes even $10000 by getting a practically new car.
Never purchased a new car in my life. I always buy second hand Toyotas. If you buy them with just over 100K, they will run at least another 150K plus or minus. And I live in the rest belt. Southern states will obviously get the higher mileage. I purchased an 89' pickup 4x4 and drove it for 14 years. I paid $4200 for it with 69K on it. I still sold it for $1200 in the end. The only reason I parted with it was because it had a bad cylinder. Camrys are another great second hand investment. I have also driven 2 of them for many years with very little mechanical maintenance. Most expensive cost was replacing the timing belt. Other than that it was just mufflers, brakes, plugs, or a starter. All easy fixes which I do myself.
They say, Most Millionaires drive Old Toyotas..🤔
Hey Kevin, just thought I would let you know that after 5 years of persistence I have finally reached my goal.
As of Jan. 2021 here in Utah my bill will be law. The bill will help protect and inform consumers so they can make an informed decision before they sign the contract. It makes it so the contract can't be used as a game of hide and seek, and a way to generate "profits".
I'm hoping that the other states will follow Utah's lead so this can go nationwide.
Keep up the good work Kevin.
Dave
David Johnson : I'm also in Utah. Please provide a link so I can read this bill you are talking about. I haven't heard of it, and I want to see what it's all about. Thanks.
Congrats on getting your bill into law!
@@TrailTrackers You haven't heard anything about it because it doesn't go into effect until Jan. 2021.
Here is the Email I received from Senator Escamilla updating me on the bill.
Luz Escamilla
Tue, Feb 25, 9:16 AM (4 days ago)
to me, Andrea, Jon
David,
Just wanted to give you an update on the issue we discussed during the summer. I was able to get the language on the vehicle service warranty added to the annual insurance amendments bill that Rep. Dunnigan and Senator Bramble run every year (1st Sub HB 37 le.utah.gov/~2020/bills/hbillint/HB0037S01.pdf )
This bill contains language related to the Insurance Department you can find the language related to the issue we discussed in page 77 starting in line 2352, this is a consensus bill agreed by the stakeholders so I don’t foresee any problems with the bill passing. I will have my intern keep you informed as it moves in the process.
If you have any questions please let me know, below I have added the language specific to the issues we discussed but you can find the entire bill in the link provided above.
Thank you for your time and dedication to advocate on this important consumer protection issue,
2351 (4) If prior approval of repair work is required[, a service] under a home protection
2352 service contract or a vehicle service contract, the contract shall conspicuously state the
2353 procedure for obtaining prior approval and for making a claim, including:
2354 (a) a toll free telephone number for claim service; and
2355 (b) a procedure for obtaining reimbursement for emergency repairs performed outside
2356 of normal business hours.
2357 (5) A preexisting condition clause in a service contract shall specifically state which
2358 preexisting condition is excluded from coverage.
2359 (6) (a) Except as provided in Subsection (6)(c), a service contract shall state the
2360 conditions upon which the use of a nonmanufacturers' part is allowed.
2361
2362 federal 2363
2364
2365
2366
2367 requirements of Subsections (3)(d) and (g), (4), (5), and (6). The department may make rules
2368 in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement
2369 the application of this section to a vehicle protection product warranty.
2370 (8) (a) As used in this Subsection (8), "conspicuous statement" means a disclosure that:
2371 (i) appears in all-caps, bold, and 14-point font; and
2372 (ii) provides a space to be initialed by the consumer:
2373 (A) immediately below the printed disclosure; and
2374 (B) at or before the time the consumer purchases the vehicle protection product.
2375 (b) (i) A vehicle protection product warranty shall contain a conspicuous statement in
2376 substantially the following form: "Purchase of this product is optional and is not required in
2377 order to finance, lease, or purchase a motor vehicle."
2378 (ii) Beginning January 1, 2021, a service contract shall contain a conspicuous statement
2379 in substantially the following form: "Purchase of this product is optional and is not required in
2380 order to finance, lease, or purchase a motor vehicle."
Hope this happens nationally
David, good to hear from you again! Would you send me a copy of the bill you mentioned? I'd make the trip down to cover the passage of the bill! Email to info@thehomeworkguy.com
Last cars I bought off a lot ended up with very angry dealers, talk about anger management! And yes, I ended up paying cash.
Yup cause they make their money off of finance percentages and extras.
Too bad for them they can’t make a ton of money off a cash buyer. If their attitude sucks I walk away, let them do all the work they want your money. Nobody is doing you a favor selling you something.
People have forgotten that very basic rule that the seller is the one that has to do the work to get your money, not the other way around.
3% over 6 years was a joke. I won.
@@z352kdaf8324 Low interest rates are reconfigured in the pricing.
bunning63 You paid cash for a depreciating asset? Congratulations dummy, but the joke is on you!
Jon Wong I think you are talking out of your ass, Wong. Many dealers have specific fees such as dealer fees that are already built into the price of the car. They will find a way to make their profit somehow, even if it is only 500 dollars on a car.
When I got my first car, I took out a car loan through a credit union. I went to the Ford car dealership with my mother, I got a certified pre-owed car for $1000 less than it was listed (I didn't know much about haggling or cars and neither did my mom), IDK how much people usually get off of cars when they negotiate, but I was pretty proud of myself getting $1000 off. I know I probably still got screwed over, but I was proud of myself nonetheless. lol
The only person that doesn't "like" this video is someone selling cars. Outstanding video !
First mistake: going to buy a car at a dealership
TheFalseKingslayer broke ass
Elite anus punch 😂🤣
Elite anus punch at least he’s not a dumb ass
Elite anus punch paying monthly payments for a car is idiotic lol..
Elite anus punch ok money waster
Priceless video close: "I didn't make that reputation for you. You 'EARNED' it yourself."
I'll just buy a Tesla... Fuck dealership's!
Ken Wells good vid
@@AquarianSoulTimeTraveler Well how are you going to get it repaired, or parts for it? Tesla won't sell parts unless you are a dealer but they don't have dealerships to do so.....
I'm surprised congress did as well as telemarketers.
@@AquarianSoulTimeTraveler Teslas are the Apple products of the car world, they monopolise on their own parts. They make it impossible for the common man to get parts by making it to where only dealerships can get them, which is stated their are no dealerships, I can't remember the terminology Tesla uses but their stores aren't dealerships which is why you sometimes see them in malls. Anyway, also there aren't really any mechanics who can work on Teslas so taking it in for maintenance or to fix an issue is virtually impossible. Tesla literally wants you to buy a brand new vehicle when your vehicle has a problem.
Buying a car is horrifying. Got ripped off. Then the company sold our car note and filled bankruptcy. They took us for all they could and valued the car way higher than it was worth. We were on the hook and they got protections. NorthStar Dodge in Tx. And magically a new dealership popped right up. Rumor has it, that the same guys own it under a new company name. My son is going to need a car soon. I definitely need to check out more of your videos. Thank you!
Or you can go ahead with the finance, but make sure there is a " no penalty" for paying off early and just pay the vehicle off the next month in full.....I've done this before.😏
I was wondering about this and thought this would be the way to go. Just pay off the amount.
Yeah my parents had good enough credit for no interest with Toyota
I did that for my s class
Why's there a penalty paying in full early? They still get their money lol
@@antonioskontonasakis they get a whole lot less money if you pay off early because you're not paying interest over the years.
Why is it whenever I go to a car dealership and talk to a salesman, I feel like I need a shower after five minutes?
I watched 50 seconds of the video and got the same experience.
Because you probably really did need one
How True...
You’re not going into the right dealerships
Now you know why. I. Used to absolutely hate having to buy a car.
I always negotiated the sticker price with financing and then I say I change my mind I want to pay cash.
Shut up
Correct
This is the correct way to buy cash. If you say youre cash up front, they will try to hike the price. Because otherwise hey get less from the deal.
Be sure to try and get a signature on the desired cost. Many will pull the "if I can get this deal for you sign here to say you'll commit to it" or something. You respond with, "I'll sign after they (sales manager) do" or something like that.
Go to finance. Don't buy extras, everything's marked up and the protection packages might be installed/applied by high schoolers on drugs (YMMV). Sign. Then pay it off right there.
Notes: once you sign, the dealer's already made most of their money. Banks kick back to the dealer for sending them people to make loans to. Dealers are like advertising firms for large bank loans. The only one you'll be "shorting," in most cases, is the bank, who wants you ideally to make as many interest-only payments as they can get you to make, so the principal is never paid off and they can perpetually charge interest on the perpetual principal.
The actual payment/interest is set with the intent to make it take longer than it reasonably should, according to your income/credit score. (Car loan interest rates are artificially high to draw out the time you're stuck with it--unless you don't do what you're told.
Fun fact, commissions for salesmen are anywhere between 1-3% of the net which can be as low as 500 or as high as 5,000. (Those are nets, so 1-3% of those) There is no middleground in car sales. You are either a rockstar or a wet noodle.
Source: Was a wet noodle. Saw the scam for what it really was and couldn't bring myself to be complicit in the broken system that 100% is rigged against the buyer. All dealers are the same, and ones that go on about how honest they are, can have the most scummy employees of them all.
I plan on buying my next car in cash. This video has taught me A LOT that I never would have expected. You've earned yourself a subscriber.
I got $3000 off my car for using Hyundai Motor Financing. Paid it off when the first bill came.
Some loan agreements penalize you for paying ahead of time.
Good for you......
Just make sure no prepayment penalties. We did the same with our Kia and saved $2500. Paid it off on 2nd payment. DakotaKid - A prepayment penalty should be easy to see in the paperwork. Look at the amount financed then you calculate out the number of months times payment amount to get your full cost of the vehicle. Then read the terms of the loan, if there is nothing on a prepayment or mandatory number of payments, you should be good to go. Then casually ask the finance guy, "is there anything in here that would penalize me for putting 25 or 50 bucks a month extra to pay it off a little early?" Or, "I have a settlement/lawsuit going. "IF" I win, will there be a penalty if I put a chunk down towards the car?" Don't mention "payoff". This should keep his guard down because MOST people won't do that.
Christian Fernandez y
@@TH-cam_stole_my_handle The way around that is pay the bulk amount one month, then leave enough to pay on the next payment!!! I've done that for homes also
I've watched a lot of car finance videos and this is one of the best.
Never heard of this man before.
Popped up on my TH-cam feed. Purchased a lot of cars, this is the real deal on how to fairly control the car buying process. I subscribed to the channel.
Good info, especially if on the property.
after watching this, I may just keep buying my vehicles from other owners, so far I have been able to get a truck for 800, and then a car for 1850, only issues was that shortly after buying them I found some hiding problems that needed fixing, but they were issues I don't even think the owners knew about, of course having some mechanical training and tools helps a lot, also aftermarket parts are generally cheap depending on the vehicle
after market parts are cheaper because they are crap that lasts half as long as OEM if that.
I’m not even in the market for a new car but I watched the whole video 🤣
Same! Ima save this for when I'm ready to buy, I'll have this to referrence
Just got my car totalled and swore I would not buy a new car and drive in this state no more...
YAYYY!!
Dude Im mostly blind and cant even get a license and I did too
Same! haha I watched it because I was trying to figure out how i got soooo screwed when I bought my car! 😭
🔴❇️❇️Car dealers be like “ $500 blinker fluid warranty fee “
Justin Peyton someone watches Chris Fix....
samlol23 who?
samlol23 never heard of chris fix , Iv never watched this guy but it popped up on my feed , oddly bc I don’t watch this kind of content either
Justin Peyton wow, that’s interesting then. Google blinker fluid. The guy has millions of subs and does excellent auto repair vids. Our April fools day he did an entire spoof video on changing blinker fluid. That’s where I thought you got that from. My bad. It was just a joke anyway-th-cam.com/video/E6GsXhBb10k/w-d-xo.html
I remember when blinkers were an optional add on just like headlamps.
I liked this. I got a reduction in out the door price “in lieu of financing” when dealership was offering 0% 36 month
Had a friend who worked for a high end car brand that's three letters long. He said pretty much the same thing, they get no extras on a cash sale, finance gets them an x %cut, so all the extra bits you buy, he gets a pocket full, an when you don't pay cash, they also get a nice pocket full.
I find that going with the "im not after a set car, but a set price" kinda tactic, an never be afraid to just walk out, plenty of other dealerships desperate for you're money/finance.