5 Things Car Dealers DON'T WANT YOU TO KNOW
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- เผยแพร่เมื่อ 30 มิ.ย. 2024
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Ray and Zach outline the 5 things that car dealers don't want you to know going into a car deal, because it means less profit for them and less of a chance to take advantage of you. You absolutely SHOULD know these things, however, and that's where we come in! - บันเทิง
#1 advice for buyers is Always be prepared to walk away.
Amen.
That has worked for me numerous times. I would also add, go to the dealership you are less likely to buy from first so you can gather pricing and more importantly, practice your new skill of walking out on a deal. It is empowering. And don't talk car color or accept their water or coffee. That's a psychological ploy to play into your emotions.
Well I'd hope so🤣 you walked into a dealership, not a prison. Sounds common sense to me. If you are unable to walk away, under the influence of a salesperson, you are pathetic and need to start thinking for yourself
I always walk in assuming I’m walking out shortly after. I don’t get married to the idea of the car especially if I have one already.
The new car high wears off every time!
I wish I had that option in the past, but I was always in a bind when it came to buying cars. However I'm hoping things are finally going to change. I plan on buying a new car before my car is on its last leg.
I followed Ray’s advice and requested OTD price from 5 different dealers starting Monday morning. Each dealer tried several times to get me to come in to their lot but I held firm on working via text. 4 of the 5 dealers ended up sending OTD pricing by end of the day. I went in to 1 of the dealers on Tuesday morning and made an offer a bit less than the OTD price and it was accepted. I obtained pre-approval from a credit union already and told dealer I would listen if they wanted to make an offer for financing. Best buying experience ever! BTW, 1 dealer refused to submit an OTD price, none of the dealers were happy with this approach. lol
I suppose they weren't happy and you had no back slapping handshaking, but oh well you saved on your pocketbook, those people are not your friends anyhow, if you have made a worse deal for yourself and a great deal for them and when you go in there to get the oil changed and walk into sales room they ignore you like the plague knowing you're not going to buy a car anytime soon so they're not your friends, hurt their feelings who cares right
It's not like you're inviting them over for dinner. Remain fair, firm, and fearless. They'll come around to your way of thinking.
What do you mean when you said you ask them for a deal on financing? Do you mean like get them to lower the overall price? Or just on the interest rate?
You tell them what you want! Or Walk!🧤
Just came across this channel a week ago and I'm glad I did. Went to buy a car a year ago and had a terrible experience. It was at a Lexus dealership and I kept asking for an out the door price and the salesman would not give it to me. He kept saying "you haven't even told me if you're going to be paying cash or financing." I told him it didn't matter and neither would have any influence on the out the door price. We went back and forth for about 10 minutes. His finance manager then came out and was repeating the same stupid mesage to me. I stood up and thanked them both for wasting my time after about 20 more minutes then walked right out.
Here's a small tip for determining how long a used car has been on a dealer's lot. If the used car is pictured on the dealer website. Look closely at the surroundings. If snow is pictured but it's summertime or there's leaves on the trees but it's the middle of winter then you know the car has been hanging around for awhile. As a former loan officer, I used that strategy to great effect for our members to negotiate for a little better deal.
So the salesman brings me back to his desk while the finance guy is doing his thing and hands me a piece of paper that I was to sign stating I'd be willing to accept a 9.9% interest rate. "Oh He!! no", I said. This was in 2021 when rates were super low and my credit score was in the 800s. I told him my local credit union was financing @ 3.9%. I ended up with 3.25%. This has me wondering if the dealership was going to tack on more than a little bit extra.
I sold cars part time for 5 years at Carmax. It really was a stress free environment because Carmax really meant "No Haggle" pricing. The only dealer fee was a $99 processing fee. I only had one person say they weren't going to pay that and my manager actually waived it. I don't know how car salesmen at "traditional" car places sleep at night, knowing all the slimey, underhanded, shady things they do to customers in the name of profit.
I like the no haggling but unfortunately carmax markups are insane
@@phillipwatsonx And they’re hurting now because of it.
I’m looking into getting a new car here soon as my 17 year old PT Cruiser is on her last limbs (I’ve had her since high school) 😂 It’ll be my first time purchasing a car and all of these videos have been immensely helpful, especially as a young woman who doesn’t know jack about not only cars but purchasing a new car as well. You guys are so wonderful to help us out with these tips and an understanding of all the steps, do’s and do not’s, how to prepare going into a dealership, etc. Thank you!
Ask around and try not to buy from a dealer. Also never have a car payment. If you can't buy it cash don't buy, save some first. I often pay $5k or less and the truck i drive i have had for 5 years and paid $4,500. It has 270,000 miles and yes it has some issues but I wouldn't trade a $300 payment for 5 years for the piece of mind i have.
So much great advice here!
I’ll add one more; the more flexible you are the harder it is to not give you a great deal.
I started buying cars from a GM dealer back in 2000. I walked up to the first salesman and said “what I’m looking for is the most vehicle for the least price! You know, those that are coming 90 day ripe. Boy that sales manager hated me!
Now you have to then be smart enough to say to yourself I need an Expedition and he’s showing me a Prism, well then you need to move on!
CarEdge is a breath of fresh air with all the dealer shenanigans I've encountered over the years. Knowledge is leverage and having insider information to push back with is invaluable. Keep up the great work!
Loving this channel and the nice succinct points you cover. I've been thinking about getting a new car, but my first dealership experience was when i was young and stupid and ended up in a car that was too expensive for me at the time. I'm also kind of a people pleaser, so having this information in hoping will help me have more leverage not to just go along with everything the dealer wants.
I love you guys! Really appreciate all your knowledge! In the last 3 months I have purchased 2 different cars and have blown away the sales and finance teams with my knowledge 🤣
whenever I am thinking of buying a car either new or used I do research using all search engines then when I get a reasonable price, I negotiate online if they refuse, go to the next one , then when deal is finalized make sure its documented by having them email you the agreed OTD , that's when you actually go to the dealership and pick up the vehicle
The Caredge trade in tool was over 10K lower then the offers most dealerships had already been calling and offering me. As well has way below the KBB trade in value and cash.
I went to a Philly area Genesis dealer last year who was still using a 4 square and was hell bent on monthly payments. I asked multiple times for an out the door price. It took a couple hours and a walk out to get an itemized out the door price. Normally, I wouldn't have wasted that much time, but there was an inventory shortage and it was the exact vehicle my niece wanted. Genesis GV70 is a beautiful vehicle, I may get 1 for myself!
Very helpful, thank you for sharing your knowledge.
I wish you guys were around when I bought my last car in 2010. Thanks for all the useful info!
I am 23 years old and you guys have taught me a lot. I am thankful for caredge
Cash is king. You have the money and many options of what to buy and from whom. They have a vehicle they don't want and obviously no buyer or it would have sold already. Be prepared to walk, usually by saying "I'll think about it" or "i'll check out some other prices first" is always a good non confrontational way to leave and keep them on the hook.
You can take odd dealership add-ons like Gap Insurance and Extended Warranty. After buying the car, look at your contracts to see how many days you have to do so.
Liked. EASILY one of your best videos. Super informative.
I think I’m ready to trade in and buy in the next week and I’m so anxious about going to dealerships, I wish it wasn’t such an unpleasant experience :/
How did it go?
Really enjoy the videos. Just a small customer experience request for your site... Please be upfront about features that require a subscription. Being asked to create a login, enter vehicle info, to only then be told an upgrade is required does not create trust. You only get one chance to make a first impression.
Thank you for the feedback. I hear you loud and clear. - Zach
Great info as I can't stand going to the dealership and waiting for 3 to 4 hours, negotiating,,, it SUCKS! Thanks guys :)
I remember back in 2008 I was pre approved by my bank for a car loan of 4%. One dealership said that’s a good rate and come on in. I went to another dealership and they said they offer 12% financing. I told them I was pre approved and they said they like to use their corporate finance at 12%. I said good bye to them and went back to the previous dealership who was happy to work with my bank.
I just tell them that yes, I will finance it, but the monthly payment amount is irrelevant because I will just treat it as I do credit cards. I never pay the minimum. I always try to pay it off early. So the payment they want to talk about is unimportant. That's a conversation for the finance office, not the sales floor.
Great channel, love all the great advice. Did I miss something? How do you find out how long a car has been on the lot?
1) MSRP already has 1-3k profit built in for the dealer.
Fortunately here in Oklahoma, when you register a vehicle, that’s when you pay whatever taxes and registration fees are paid. They are not paid at the dealer. We are getting ready to do a trade at a Kia dealer on Friday, and after watching many of your videos, I have ammunition. It’s all written down, calculations done, even what our trade in is worth based upon 6 different sites like Edmund’s, NADA, KBB, etc. I know what I’m willing to pay for the vehicle and I know how much they will need to give for trade. And this time, I am going to ride that finance manager tough. I’m planning on telling the sales rep, finance manager, sales manager how much time they have to complete the deal. If they resist anything, we are walking out the door we came in.
And the results. Two weeks ago I was communicating with a salesman at one of the Kia dealers here in my city.
After I had selected a model from the website and downloaded/printed the paperwork, I noticed the fine print on the bottom of the page. They had displayed a “ discount” of $2000, but the fine print stated that in every vehicle sold there was a “ value added product” of $1995, so reality was it was a $5.00 discount. When he wouldn’t budge I cancelled our meeting, got an appointment at the other Kia dealer because they had the same vehicle at the same price. The next morning, I get a call from the owner of the first dealership asking if we would come in the next day and meet directly with him. So we did. I had all the figures of what we would offer on the new one and what I wanted for trade of our vehicle. I also said we aren’t paying that $1995 add on because they couldn’t explain exactly what it is.
He looked at my paper, walked away for 10 minutes and came back with only a $1000 discount and accepted my trade at what I was asking. We shook hands, the salesman took over the paperwork stuff, and then I said I’m a veteran, which knocked off another $300 ( I had brought my DD214). In the finance office, the manager really tried to get us to finance, but we refused. Once I told him no finance we would pay the difference, he went ahead with the document signing, and we handed him a check, he handed us the keys. We drove off the lot with a brand new 2024 Kia Sportage SX. I’m happy, wife has a new SUV, it fits in our garage along with my pickup and no car payments!
Hi Ray and Zach
I hope you guys come back again to NY next year , maybe a different dealership (Mazda,Honda,Toyota)
I am going to be getting a (new to me) “used” car soon, and I’m taking you guys with me 😉!!!
I worked as a car inspector and got taught ways to find out if vehicles have had replaced parts due to previous repairs etc… what could I mention to them during finding any of those repairs? Would I have luck lowering the price even more?
Unfortunately, out the door price does not mean very much with some dealers. After negotiating the TOTAL PRICE at Dan Cummins CDJR dealership in Kentucky, they asked for a deposit to order my Jeep. After receiving my deposit, the next morning, my Jeep went up $3000.00 dollars per Lindsey at the dealership. Documentation and deposit no longer mean anything with some dealers.
Dealt with the same dealership. Mine was a TRX. Talked all the details and at the end when they sent me the paperwork they added a market adjustment. They’re the worst
Very true . Dealerships will not budge on OTD price- most anyway. I get no response at all or they go deaf all of a sudden 😂 so if they want there 563 days on the lot new 22s so be it, they deserve to go under. These dealerships think 2,000 off 22s is a real big deal 😅 YEAH STICK THEM WHERE THE SUN DOESN'T SHINE IDIOTS!!! PLUS TERRIBLE INTEREST RATES TOO! Keep what I have till I'm like the FLINTSTONES CARS 😂
@@angelarubright8729yeah, they don't think we'll suffer a little to get a good deal. They have been ripping us off for years. I'll get sled dogs if I have to😂
Do not buy a jeep they are horrible
I went to car edge and got 3 actual cash offers for my vehicle. I used those to get $3,000 more for my vehicle when I traded it in. Thanks, guys!!!
I should have said: the amount the offered for my car at first was $14,000. After showing them my emails for cash offers, the amount they offered me for my car went up to $17,000
Does asking for the Buy Rate apply to used cars as well?
If I use the dealer financing at time of sale and immediately get financed elsewhere and pay off loan before first pmt.is due, does the dealer lose the profit?
While taxes aren't negotiable you should check their math. Had a dealer recently "miscalculate" taxes. Also, remember whenever the price changes the tax will change.
Can you negotiate from an autonation “no haggle” dealership? I’ve had no luck in the past few years from autonation branded dealers
These guys are the best !
Thank you
Is the buy rate something one needs to know if they are using manufacturing financing like using Honda Financial when purchasing a Honda vehicle?
They always ask you questions trying to get you to say yes. I always find a way to phrase it as no or avoid the question. Drives them crazy lol
How do you get around these dealer “packages” some are around 3K on top of MSRP. Also Florida allows extremely high doc fees some are 2K. Thanks for any advice ..
Ask for them to itemize the fees
I'm taking notes, but wouldn't it be nice to have Ray in a mason jar and open it when walking into the dealership, poof Genie Ray.
Video on tips when building a new car??? Building a new car and got to pick out all the basics but im sure there is fee or something when the car is ready?? Thx
I am interested in purchasing a car that I usually don’t hear you talk about. If I signed up for help with navigating a purchase of a used or possibly new BMW X6, would that be something your team can help with?
On your website it shows there's a lot of cars on their lot and the msrp. But then when I check inventory and call dealer if they have it they say they have no cars on the lot. For example the 2024 sienna no dealer within 500 miles have it but 1 dealer. Is that really true or are they hiding the car?
Does the warranty on a new car start the date that the vehicle is sold or the date that the year was manufactured?
How do you get the best deal on a vehicle you ordered from the manufacturer?
Does buy rate have anything when financing thru the dealer? Say Ford with Ford Credit?? Directly from the manufacturer if you qualify?
I have been searching for cars online but cannot find the ‘days on lot’
How would I find this info
If you’re financing in house with a special apr. Is the buy rate to the dealer lower or is the special apr the rate the dealer is getting the loan for?
Is it true that I can only get a manufacture rebate if I use their lending, even though they was going to use Wells-Fargo? I was pre approved through another bank far less.
WAOOOOOOOW. BUY RATE. I DID NOT KNOW THAT. THANK YOU
Went to buy a car yesterday. I had a quote I got online. They told me that was a mistake but they'll honor it. I asked for nothing extra. They said they would take the packages off, They left and came back like 5 times. So another person comes in talking really fast shows me the last offer. It's a $1000 more than I want to pay. I'm looking at the paper trying to figure out what is weird about the numbers, After I told them no and left I was looking at the paper and it has a package on it for almost 700.00 it just had a different name.
Good work walking away
never buy and do sit down. Sit down puts them control. You pulled up there poker table they are also dealing cards and making rules. Walk away they will call back only bought cars on phone. I sit down doing test drive 2 minutes max
AND WHAT IS THIS BULLS**T? Prices may change daily based on market conditions and accessories or options added by our accessory specialists. We reserve the right to make changes without notice and are not responsible for typographical or software errors. Photo may not represent the actual vehicle. APR available on approved credit. Advertised price excludes tax, registration, security deposit, drive away permit $8.25, title fee of $20.00 for Nevada residents, dealer doc fee of $499.50, and out of state processing fee of $495.00 applied to vehicles purchased outside of the state of Nevada.
do not buy right now is where need be it is bad time. Figure out how much loose buying. Maybe get cheapest Honda. Go into it like I am not going loose money. Jeeos use to not go down when $17k new ir Tacomas but those times long gone.
great video,
Do you still have to ask for the buy rate even tho you finance thru your own credit union?
I’m a 53 year old woman, and I’m about to go buy a new car by myself for the first time next week. I’ve had such agita about it, but your videos are teaching me so much! Thanks a million!
What is your advice when it comes to vehicles that are not in your current state
I love when you guys cut your looooong conversations up into nice, succinct, topic-focused clips. Keep them coming, I'll watch your channel a lot more!
The last time I went into a dealership with a pre-approval rate, they actually beat that rate by a bit.
The most valuable video that I even seen
What do you suggest if you want to buy a vehicle out right= paid in full= no financing?? New & or used vehicle?? 😉
They have a video on paying cash, how to go about it, and basically advising not to even say that until OTD price has been agreed on. Also, they end up saying to go ahead with the loan, but pay it off in 7-10 days, in effect, paying cash.
I'm afraid to go to a dealer. I wouldn't stand a chance.
Me too! It sucks
Very informative. S21
Ive been asking recently for an OTD price snd many dealers just say: oh we don't discuss prices or fees over the phone you have to come to the dealer to discuss any price I'm tired of their bs!
Is prequalified from credit card bogus? It was a soft check and I have pre-qualification but not pre approval since I didn’t let them do a hard inquiry?
I had a local dealership call me directly offering to buy my SUV and get me into a new (same SUV) that I had purchased from them 3 years ago…I directly asked them what the ACV of used comps were for my vehicle and they never answered and tried to change the conversation. They never have called back either.
I want to see a Vid on what if you are prepared to go All Cash.
I was wondering at what Dealership did you and Zack work.
How do you find the info for days on lot? I haven't seen that on any of the dealer websites and I can't seem to find it via a simple Google search??
Good question. I'd like to know how as well, a free way to figure that out.
@@Godot1337 Some dalers on their website have it listed as "DIS" i believe that stands for Days in service.
Make a video about leasing I know it’s not popular so to speak lol but would be interesting
Yes!
CN you negotiate dealer fee?
Im very curious about these Cash Offer Trade-in Groups -- do they collude...err collaborate via some third party data aggregator? I'd be cautious about this unless I know how these people are, how they are compensated (by the dealers?) and what mechanism are they using to generate offers.
Federal government cracking down on car dealer junk fees
I have seen the feds are requiring out the door price upfront. Cannot have 4000.00 price cannot be added unless customer request effective July, 2024.
Sounds like past few years some career politicians or their family members got screwed from this. Funny how fast they change things when they become an victim. Heard that is also depending on what state. But hoping its all 50 states.
I have two practices I haven't heard you guys cover, would love to hear your thoughts on them:
1. When you don't need to finance, offer the sales team to still do financing and pay off the loan quickly thereafter (of course make sure there's no pre-payment penalty). I did this myself and that made the seller take an additional $1500 off the price, under the condition that I promised to keep the loan for 60 days (that was their threshold to make it count as selling the loan).
2. This I haven't tried yet, and could be more controversial. Instead of negotiating the trade-in value, make the seller believe that you agreed to their first offer (and that they will make a couple of thousand in the trade), move on to negotiate other parts, and when if comes to closing just tell them that you will pay the trade-in value instead.
pre payment wow lol
I've wondered about that option, but what did you pay for finance charges for the 60 days vs. the $1,500 discount?
What about paying for the shipping cost
How do you confirm if they're telling the truth when you ask them about the buy rate? They could easily lie about it. Are there any documentations that we can cross reference to what they are actually telling us to make sure theyre telling the truth?
sadly car edge said it didnt have any available offers on my 2022 supra
When sales people see an old, retired guy like me, do they assume I'm paying cash. (I am.) Because I've talked to several dealerships so far, and none of them have asked me what kind of monthly payment I can afford.
What is a dealer Administration fee consists of?
Does anyone know a Canadian equivalent to the car edge sell feature?
Do you guys have an app for the phone? Your service would greatly benefit someone if you could check how long a vehicle has been sitting on the lot at the dealership! In other words, the cars you look at online are usually gone or hidden somewhere, and seeing that information in real-time would make it easier to focus on a particular vehicle that was in stock!
Nissan called and wanted my 2021 Rogue and said they have 0 for 60. When I got there and negotiated on a 2023 exactly the same as mine. They said I was underwater $2k and owed all my remaining 6 lease payments. OTD price on $35 SV Rogue $45k!!! I said give me my keys. They came back with $43k but 2% now so price actually didn’t change! Give me my key I’m heading to anyone other than this dealer
When car buying always take both sets of your keys..you can leave any time you want.. an stop back in later for the other set...
Whoooo! Snappy crisp delivery, great improvement in production values! Great job, guys!
I'm paying for a vehicle now. I didn't know anything about asking that question. If I refinance with someone else. Do I cut out what the dealership is making off me no??
What is the average discount off msrp for the 2024 Corolla se in DFW texas?
Yes. I’m lookin for the same thing in the same area
Dfw dealers are very greasy. Be careful
$0.00
Dealerships don’t want to sell to me but I want a car :(
Have a question.. What do you guys think about when buying from a dealer with a A & Z plan I believe with its called. Is there any other things I need to be aware of? P.S I hit a deer.
Sell your trade on your own. The dealer will try to make up the difference on your trade.
@SingleStacked not trading.
Can they just lye about buy rate and days on market? Can either of these be looked up online to check them?
They won’t tell you the buy rate.
How do you negociate a model like a Corolla Cross that is in VERY HIGH demand with a wait time of like 1 year???
Buy a different car
A better way of traid in value is to look up what your car is selling for. The dealer, like a pawn shop, will give you a wholesale value. And, sell it yourself.
Hey Ray
Trying to find a bank that will finance a car just about impossible & if you do the bank much highre
7:27 Question: They might say, "Oh, this car has only been here on our lot for about 30 days...(when in reality, it's been there for 130 days) Is there any way to verify Days-on-Lot?
They said in the video you could check days on the lot for any vehicle on the website.
They said in the video you could check days on the lot for any vehicle on their website.
What do you think about telling them that you have a pre-approval but NOT telling them the rate? You might be approved a 5.9% and they got a buy rate of 3.9%? They can match or beat your 5.9%. Instead, tell them you've got the pre-approval and bring your best price. Would they be more likely to go closer to the buy rate if they don't know your pre-approved rate? Especially if they run your credit app and see that you have a very high credit score and are an excellent credit risk?
dude..dont become a car salesman..if the dealer wont tell you their OTD price..wont give you their bottom line rate on finance...WHY are you still talking to him?
if this helps, I bought my car in 2019. I was 19 and got a pre approval from a credit union, I think the rate was 6-8%. I went to the dealer and they were giving me an absurd rate(19 year old buying a mustang). When they seen I was approved already they gave me 4.25%
"No Haggle Price"....I see this more and more. It gives the dealer an "out" for negotiating with a crafty customer who knows the game. They claim this is THE lowest they will go on the price of a car.. In other words, they will not bend on the price one single bit.
How do you know the dealer is giving you their actual Buy Rate?
Local finance guy here. Buy rate is irrelevant when it's brand new because it's manufactory rate. Whatever the rate is exp toyta credit is. As long as ur a tier 1 or 0 u will get it. That's why it's approved credit. If it's used cpo can get similar rates maybe 2 points higher but it's still lower than 3rd party. But if u purchase from a used rate if u ask for the buy rate they will just send u to a bank that is only 1 rate but it gives them a flat. Typically these rates are higher than ever so work the payment down if u know the final number, they will give up rate to close the deal but don't tell u
They just don't mention out the door prices since they would rather you pay interest on a loan. Maybe the lenders are more responsible for that than dealers really.
When you (or they) ask about accidents, does it matter how big or small the repair was? I would think salvage is a bigger problem for valuation.
Yes! Definitely matters
can you ask for the buy rate and will they and are they mandated to answer?
You should always ask for the buy rate, and if they will not provide it you can be certain that smarmy F&I manager has bumped the buy rate. That is the time to walk away. Chances are the F&I manager will relent as the last thing he or she wants is to see a viable buyer walk away and then they will need to answer to the sales staff.
Thanks@@jerrylundegaard2592