No, the takeaway is to relax, stop over-thinking the process so much, & take a few minutes to read what you are signing before you agree to a purchase.
@@ChevyDude I always read all the paperwork. I have had salesmen tell me that almost nobody reads it. I always tell them "I read every paper before I sign anything."
Financing through the dealer is ok, if you have checked around and know what terms you can get from your credit union. Sometimes the dealer financing deal is better than you can get elsewhere.
The only things that I would pay for when buying a car: 1. Base price + DPH 2. Factory installed options & accessories 3. Taxes & other gov fees (Basically, factory sticker + required gov fees) Things that I would not pay for: 1: Dealer adjustment fees aka mark-ups 2. Dealer installed add-ons & accessories 3. Warranties, insurance, service products (Basically, any fees made by the dealer)
And make sure you only pay for the doc fee once. I had a dealer try to charge me a $400 doc fee 3 separate times. Getting through that nonsense took forever.
Just took delivery of a new car (2024 Buick Envision) on Jan. 2. During negotiations I literally laughed out loud when the salesman pulled out a four-square worksheet. "Thought those went away in the 1990's", I said. After that the games ended. Even escaped the business office unscathed when they realized I couldn't be scammed.
Congrats on 500,000. Really enjoy your videos. I always buy from the same dealer, same sales person. Never have had a problem. When I go in, everyone knows me by name and always say hi Earl. Makes me feel good.
$421 for 72 months on $24k is ridiculous to begin with. Insane that average car payments are around 750 for new, and 530 for used. I'm a proud member of the no car payment gang on my 21 silverado 1500 lt crew cab.
The best way to handle it, is to tell the salesman within the first 5 minutes that your out the door price can be no greater than X. The floor guy will always agree to it, but when you get to the finance dept., that's when the real BS starts. They'll put the screws to you trying to get you to sign off on profit padding add-ons and services. They too need to be told that your final price is not to be exceeded or you'll walk.
The typical contract by the company, "LAW", has a pre-payment penalty in which the full amount of the interest for the full term of the loan is charged even if the loan is paid off early. Read your contract carefully.
No no no. I guarantee i would see the difference from the add on garbage from the buyers order. you are correct about 99.5% of customers would just sign the finance contract and not realize the front end bs but I'm in the half percent that can easily Navigate the mound of paperwork
This is why Car Edge is worth it. Let them negotiate the price, and you won't be scammed. Mike's is an exception, but most dealerships are always looking to rip you off somehow. No wonder consumers are looking to buy directly from manufacturers.
First, I would scan for the word arbitration in the paperwork. Second I would ask for a soft copy of the paperwork and ask ChatGPT "Is there anything in this car sale document that would be unfavorable to a consumer?"
Thanks for goin over this information mike and i enjoyed the video alot and it was very informative and this is why i like ur channel u always gove great information and great advice and show everyone how to watch put for scams from dealerships. And i wish there was more people qnd more dealers like u out there but theres not ur one of a kind and seem like an awesome person. If i loved there i would come see you for a car. Anyways thanks for sharing keep up the great work much love to ya mike have a good one take care god bless and I will see ya on the next one
Another big potential scam area is the 'trade in'. Many dealerships will overvalue the car so make it look like you got a good, but inflate the deal. elsewhere. Make sure the per month payment is with the best and lowest interest rates you can get. Too often they will play with your credit score, that push loans with lenders that give them the best commission. Could you do an episode about trade in pricing by you and by many dealers.
Much as most commenters come here to say they would never fall for anything, a trade in video would just be filled with people saying to never trade and sell the car yourself.
Does your dealership also disclose to the customer the buy rate of the loan, and how many points you're making on the customers loan since you guys are super transparent? Wish we had dealerships like yours out here and not all these salespeople peddling bs.
No, we don’t. And we won’t. Just like when you go to Walmart or the grocery store, you don’t ask them the cost of the products you’re buying. The same goes for the other 99.999999999% of products that consumers purchase-they don’t stress over the cost. What truly matters is whether it’s affordable and if there’s value in it.
I tell them "I don't want any of that stuff. I am not going to pay for it. You can take it off or leave it on, I don't care. But I'm not paying for it."
My dealer gave a me a sheet that shows the numbers when I ordered my car with everything broke out and I'll be carrying that in with me when the deal is completed. Only thing not on that sheet is the title/license fee from the state of Illinois. Won't be easy to hid anything as I know exactly what the number should be when I walk in the door.
I did on my last truck I'm like I gotta drive back across the state and go to work. Just say I gotta be out, by 2pm, to pick up kids/go to work/dr visit/etc, or I walk. It took me less than 2 hours for every thing, including test drive.. Quickest ever.
Hi Chevy Dude! Love the videos! I have an 05 Silverado however, it's only RWD. Do you have a good truck/suv in mind that is good quality and will last me another 20years that is AWD or 4WD on demand? I keep my vehicles long time, just tired of being stuck on heavy snow days. I honor your feedback. Budget is 60k or less. I live in St. Louis, MO so personal property tax is also a concern yearly.
We must be very unusual car buyers.[*] We have never even looked at the down payment or payments. Never. I always told the salesman "The payment will be whatever it is, I don't sweat it." Also, "This (lowball) price is what I am offering you for this car." [*] Trick statement. I KNOW that we are very unusual buyers.
Doesn’t every new car come with a contract from manufacturer? That contract usually says on first page, added options costs are voluntary. Gap insurance is a total rip off, most auto insurance companies will include gap in your current auto insurance policy.💯
I had a Chevy dealer try to add an "advertising fee" to the paperwork. He said, "All the dealers pool their TV ads." I said, "Well I didn't see any TV ads, and I'm not going to pay for your advertising. Do you want me to pay for your light bill, too?"
Very good info. My family owned dealerships, and I worked in car sales a long time ago. I told the sales guy as much when I was looking at a Honda. I showed them my hand. They still tried these stunts. I walked out, and blocked their phone numbers. You have to assume everyone in this industry is trying to scam you.
@ The only place that I know of (and this was 20 years ago) that didn’t scam was Carmax. They just didn’t have great prices and were too eager to repaint cars.
The issue that I see here if you can be out there with the salesman and you say hey, I want the out the door price, right? Then once we agree on that, I fill out the credit application, etc. right they run my credit but then I go in and talk to the finance guy just like you just said and now I’m looking at anywhere from a two to 4000 $ difference that I did not agree on with the salesperson out at the desk inside the dealership there.. so that time when this happens and I assume it’s gonna happen they’ve already run my credit report so for me to get up and walk away at that point which is what I would do now my credits already gone down. I don’t know what percentage every time someone checks it and then I’m gonna have to go to some other dealership that may lie to me the same wayhow do you get around that?
Not true. Your score does not go down for a credit check. Be smart and get your own financing from a credit union or bank before you even go to the dealer.
3 points on a hard check (none on soft) but that is a temp move and if you pull your credit multiple times in 30 days you only get that 3 pt penalty for the first one.
@@mikenonya6382 Only if it is a soft check a hard check does but only once in a month and if you got a check from a bank prior then you are right it would not for that only for when the bank did unless they do a soft.
@@ChevyDudeYou may be right, but my personal experience is much better buying private. I haven’t bought a car from a dealer in over 10 years and I’m not sure if I ever will again.
This is true.If you are buying right from a private seller you get a much better idea on how the vehicle was or was not taken care of.Yes there are scams but if you check the vin (in more than one location) and title you should be okay.Also just dealing with the person you will have a pretty good idea of what kind of a person they are.I have bought over 170 vehicles this way.
It's way more work not to get scammed by a private seller. If you can handle a private seller and all the fraud they may try to pull, a dealer transaction should be a cakewalk
We hit 500k on this channel last week. Thank you all. Please Subscribe if you haven't!
Get the OTD and pre-approval before entering the parking lot.
So the takeaway here is to never finance through the dealership and triple check the paperwork! Thanks for that advice.
The ONLY takeaway is READ BEFORE YOU SIGN. 99.9999% of people DON’T.
No, the takeaway is to relax, stop over-thinking the process so much, & take a few minutes to read what you are signing before you agree to a purchase.
@@ChevyDude I always read all the paperwork. I have had salesmen tell me that almost nobody reads it. I always tell them "I read every paper before I sign anything."
Financing through the dealer is ok, if you have checked around and know what terms you can get from your credit union. Sometimes the dealer financing deal is better than you can get elsewhere.
What if the dealer actually offers better financing?
Mama always said if someone is impatient while you look over a contract, dont do business with them.
Especially if when you point out a problem it then takes then 30-60 min to fix it but they want you to sign in 30-60 seconds.
The only things that I would pay for when buying a car:
1. Base price + DPH
2. Factory installed options & accessories
3. Taxes & other gov fees
(Basically, factory sticker + required gov fees)
Things that I would not pay for:
1: Dealer adjustment fees aka mark-ups
2. Dealer installed add-ons & accessories
3. Warranties, insurance, service products
(Basically, any fees made by the dealer)
And make sure you only pay for the doc fee once. I had a dealer try to charge me a $400 doc fee 3 separate times. Getting through that nonsense took forever.
Thank you Chevy dude for saving me from dealership scam a couple years ago. It's great to be an informed buyer.
Thank you for going over this information. I like your channel. You always give good information and advice.
Just took delivery of a new car (2024 Buick Envision) on Jan. 2. During negotiations I literally laughed out loud when the salesman pulled out a four-square worksheet. "Thought those went away in the 1990's", I said. After that the games ended. Even escaped the business office unscathed when they realized I couldn't be scammed.
We had a check arrive in the mail from a two year old deal. The finance guy was changing deals after people had left. He went to prison.
Congrats on 500,000. Really enjoy your videos. I always buy from the same dealer, same sales person. Never have had a problem. When I go in, everyone knows me by name and always say hi Earl. Makes me feel good.
$421 for 72 months on $24k is ridiculous to begin with. Insane that average car payments are around 750 for new, and 530 for used. I'm a proud member of the no car payment gang on my 21 silverado 1500 lt crew cab.
Thanks, Mike! Other dealerships and car salespeople must really love you!😂
The best way to handle it, is to tell the salesman within the first 5 minutes that your out the door price can be no greater than X. The floor guy will always agree to it, but when you get to the finance dept., that's when the real BS starts. They'll put the screws to you trying to get you to sign off on profit padding add-ons and services. They too need to be told that your final price is not to be exceeded or you'll walk.
The typical contract by the company, "LAW", has a pre-payment penalty in which the full amount of the interest for the full term of the loan is charged even if the loan is paid off early. Read your contract carefully.
Thanks Mike for the very educational videos you upload. If/when I buy another vehicle I’ll be better prepared!
Very Informative
No no no. I guarantee i would see the difference from the add on garbage from the buyers order. you are correct about 99.5% of customers would just sign the finance contract and not realize the front end bs but I'm in the half percent that can easily Navigate the mound of paperwork
This is why Car Edge is worth it. Let them negotiate the price, and you won't be scammed. Mike's is an exception, but most dealerships are always looking to rip you off somehow. No wonder consumers are looking to buy directly from manufacturers.
First, I would scan for the word arbitration in the paperwork. Second I would ask for a soft copy of the paperwork and ask ChatGPT "Is there anything in this car sale document that would be unfavorable to a consumer?"
Thanks for goin over this information mike and i enjoyed the video alot and it was very informative and this is why i like ur channel u always gove great information and great advice and show everyone how to watch put for scams from dealerships. And i wish there was more people qnd more dealers like u out there but theres not ur one of a kind and seem like an awesome person. If i loved there i would come see you for a car. Anyways thanks for sharing keep up the great work much love to ya mike have a good one take care god bless and I will see ya on the next one
Another big potential scam area is the 'trade in'. Many dealerships will overvalue the car so make it look like you got a good, but inflate the deal. elsewhere.
Make sure the per month payment is with the best and lowest interest rates you can get. Too often they will play with your credit score, that push loans with lenders that give them the best commission.
Could you do an episode about trade in pricing by you and by many dealers.
Much as most commenters come here to say they would never fall for anything, a trade in video would just be filled with people saying to never trade and sell the car yourself.
Good morning Chevy Dude,,,,,,,Yeee Yeee
Does your dealership also disclose to the customer the buy rate of the loan, and how many points you're making on the customers loan since you guys are super transparent? Wish we had dealerships like yours out here and not all these salespeople peddling bs.
No, we don’t. And we won’t. Just like when you go to Walmart or the grocery store, you don’t ask them the cost of the products you’re buying. The same goes for the other 99.999999999% of products that consumers purchase-they don’t stress over the cost. What truly matters is whether it’s affordable and if there’s value in it.
But what if i dont want all of that extra stuff that they installed?
I tell them "I don't want any of that stuff. I am not going to pay for it. You can take it off or leave it on, I don't care. But I'm not paying for it."
This is why people don't go to dealers anymore. If you buy from home you can spend all the time you need to look over the documents before you sign
It figures the one you have to watch. Is the one that looks like tax form for wages.
Smart man, resells higher end models that fetch higher returns. Gets a couple low end models to bring in the customer and possibly sell higher end?
Chevy dude
What do you think about buying from CarMax? Or do you have a video on that already?
My dealer gave a me a sheet that shows the numbers when I ordered my car with everything broke out and I'll be carrying that in with me when the deal is completed. Only thing not on that sheet is the title/license fee from the state of Illinois. Won't be easy to hid anything as I know exactly what the number should be when I walk in the door.
Is there anyway I could get them to fax or email these documents to me so I can review them at home at my leisure?
Of course. If they refuse to do it it's a sign you shouldn't be doing business with them.
Saw a 4 square in 2012.
Honestly. It’s annoying You need to pack a lunch bring a tent blankets pillows. They keep you there for 2 days
I did on my last truck
I'm like I gotta drive back across the state and go to work.
Just say I gotta be out, by 2pm, to pick up kids/go to work/dr visit/etc, or I walk.
It took me less than 2 hours for every thing, including test drive..
Quickest ever.
@ for real 🤣🤣🤣🤣🤣
It gives you anxiety
Only if you let them...problem is most people are too nice, afraid of seeming rude if you push back against their time-wasting tactics.
Hi Chevy Dude! Love the videos! I have an 05 Silverado however, it's only RWD. Do you have a good truck/suv in mind that is good quality and will last me another 20years that is AWD or 4WD on demand? I keep my vehicles long time, just tired of being stuck on heavy snow days. I honor your feedback. Budget is 60k or less. I live in St. Louis, MO so personal property tax is also a concern yearly.
We must be very unusual car buyers.[*] We have never even looked at the down payment or payments. Never. I always told the salesman "The payment will be whatever it is, I don't sweat it." Also, "This (lowball) price is what I am offering you for this car."
[*] Trick statement. I KNOW that we are very unusual buyers.
Doesn’t every new car come with a contract from manufacturer? That contract usually says on first page, added options costs are voluntary. Gap insurance is a total rip off, most auto insurance companies will include gap in your current auto insurance policy.💯
Thank you
Soooo...about that "dealer fee"....
I had a Chevy dealer try to add an "advertising fee" to the paperwork. He said, "All the dealers pool their TV ads." I said, "Well I didn't see any TV ads, and I'm not going to pay for your advertising. Do you want me to pay for your light bill, too?"
The car market is crashing you just don't know
Why do they require power of attorney, even without a trade in? How to refuse that?
Very good info. My family owned dealerships, and I worked in car sales a long time ago. I told the sales guy as much when I was looking at a Honda. I showed them my hand. They still tried these stunts. I walked out, and blocked their phone numbers. You have to assume everyone in this industry is trying to scam you.
Because they are!
@ The only place that I know of (and this was 20 years ago) that didn’t scam was Carmax. They just didn’t have great prices and were too eager to repaint cars.
The #1 way is dont go to any dealership.
There’s 100 X more scams on the private market.
The issue that I see here if you can be out there with the salesman and you say hey, I want the out the door price, right? Then once we agree on that, I fill out the credit application, etc. right they run my credit but then I go in and talk to the finance guy just like you just said and now I’m looking at anywhere from a two to 4000 $ difference that I did not agree on with the salesperson out at the desk inside the dealership there.. so that time when this happens and I assume it’s gonna happen they’ve already run my credit report so for me to get up and walk away at that point which is what I would do now my credits already gone down. I don’t know what percentage every time someone checks it and then I’m gonna have to go to some other dealership that may lie to me the same wayhow do you get around that?
Not true. Your score does not go down for a credit check. Be smart and get your own financing from a credit union or bank before you even go to the dealer.
I’ll do a video on this over on the Mikes Car Store TH-cam Channel.
If you run your credit report at multiple places it counts as one hit on your credit
3 points on a hard check (none on soft) but that is a temp move and if you pull your credit multiple times in 30 days you only get that 3 pt penalty for the first one.
@@mikenonya6382 Only if it is a soft check a hard check does but only once in a month and if you got a check from a bank prior then you are right it would not for that only for when the bank did unless they do a soft.
OTD price and your own finances..cash for keys..
#1 way? don't buy from a dealer, buy private party. no 8 minute video needed.
There are 100x more scams on the private market that cost you WAY more money than any dealer.
Maybe you should add a couple things lol
GAP means you over charged your customer simple no questions
What about if you are blind and can't read the numbers, will they print them in braille 🤷♂️😎
If you have to finance your vehicle you cannot afford it.
The number 1 way to avoid dealer scams is to not do business with them. Buy from private sellers.
There are 100x more scams on the private market than any car dealership will do to you
@@ChevyDudeYou may be right, but my personal experience is much better buying private. I haven’t bought a car from a dealer in over 10 years and I’m not sure if I ever will again.
This is true.If you are buying right from a private seller you get a much better idea on how the vehicle was or was not taken care of.Yes there are scams but if you check the vin (in more than one location) and title you should be okay.Also just dealing with the person you will have a pretty good idea of what kind of a person they are.I have bought over 170 vehicles this way.
It's way more work not to get scammed by a private seller. If you can handle a private seller and all the fraud they may try to pull, a dealer transaction should be a cakewalk
What if you want a new car?
Thanks!
The finance manager wasn't happy cause I paid cash.
They never are. Cash buyers are their worst customers.
@@ChevyDude how so? We usually buy with cash.