I guess that depends on what dealership you go to. Mine would rather sell it to a customer but if we can get more at an auction than your offer; it makes sense to take it to auction... some people just don't know how to negotiate and talk themselves out of a good deal
@@Lifechanging99999 It's my observation Toyotas don't depreciate much until they are much older. Last time I bought a Tundra I had a choice between a 3-4yr old truck with interior stains and 50k and a brand new truck from the same dealership only 1-2k difference in price. To me, its not worth the gamble to buy someone else's issues for only 1k less.
@@genoaoak They get sold from dealer to dealer or end up in some rental company to fleet company. There are cars that will never see their 1st ownership in the hands of an everyday citizen looking for a new car.
@@AmandaHugenkiss2915 No it's irrelevant. It just shows how corrupt the system & depraved humans are really. That's why I even death I celebrate the day this whole thing is destroyed. The system of taking advantage while bailing these companies out I don't support. They can make less cars which will make them a bit more affordable by cutting production cost.
Yup 1000% true, the price can easily go up anywhere 1-5k more than what u thought u would be paying. A close friend of mine husband is the finance guy at a chevy dealership and she told that he has taken advantage of folks numerous times, especially those with crap credit or young ones
Statement is technically false, the highest trained salesman is the sales manager. They typically train in finance before they're able to become managers. But in a way you're right...
All these people that think these salesman are giving you the bad deals Lmao 😂 its the finance managers😂 The salesman is just the shitty middle guy who gets a commision😂😂
Our dealership also owned 5 other dealerships. Our aging vehicles would be rotated between our lots to refresh the lot inventory. Sometime it just needed a fresh city, a fresh salesperson, and a fresh market. We rarely had aging models. We were also paid extra for the older model so there was motive to move them.
This must be why everyone tells me that my vehicle was an absolute steal. With none of this knowledge I went to a GMC dealership in November of 2019 and had my eyes on a Sierra 1500 they labeled as "new" but had ~2000 miles, as it was a courtesy vehicle the dealership used. I felt the label of new was accurate as the vehicle was immaculate. It stickered for $52k and they wanted $44k, I offered them $37k and they refused. I walked away and went fishing, that night the dealership called me and told me they'd do $37k and I went in the next day and got the truck! I now think this must have been one of those vehicles that the dealership was desperate to get rid of and im so thankful it came into my possession, I love it!
@@frankm5019 I had a number in mind, my opinion, of 37k, they refused, I went fishing, they called back and accepted. Therefore what I viewed as a good deal came to fruition
@@StephanFournier1 That's how to buy a car. I bought mine the same way. If they don't take my price, I'm out the door. They're always another car down the street.
I got a new 2003 Silverado 18 years ago. It wasn’t fancy, wasn’t 4wheel drive. They just couldn’t sell it. The 2004s were coming in and they wanted it gone. We got it at a good price and it still runs like new. It has under 99,000 miles at the moment. Love that thing! Looked at some new ones and nearly fainted at the prices they are today.
I'm confused as to how some popular designs "sell out" 🤔. Either the car makers are limiting the production or people have more $$$ available then they say. Tesla trucks, Ford Broncos, GM hummers(electric vehicle).
@@DavidLLambertmobile That Tesla truck is perfect for this violent society we live in where random shots are going though people's vehicles on the highway, at a stop light, just sad.
I used to work at an auction and I’ve seen brand new 2019 cars sell cheap. There was a 2019 Hyundai Elantra with around 900 miles on it sell for 8900. I’ve also seen Aston martins sell for around 30,000 with less that 5 k miles. It’s insane how cheap cars actually go for. But like he said you need to be a dealer.
Years ago, got into fender bender, needed new bumper, hood, side, I looked into getting the parts myself and getting a body shop to paint them, at that time a new hood, unpainted cost 600-700 dollars, a friend of mine worked for a guy that had dealer or body shop number from a buddy of his, he went to get me the parts with what a dealer or body shop would pay for, my hood cost like 120 dollars, I don’t know how you loose money owning a body shop with those margins
That's actually how I ended up getting a good deal before. I shopped around for months and kept seeing the same car at the local Ford dealership. The salesman who was a cool guy realized I was an actual buyer and got the car reduced about $3,500. The Mustang was really nice EXCEPT for the graphics package and striping, It looked hideous. The salesman told me that it happens sometimes that Ford would do bizarre exterior/interior color combos or add random things like graphics onto a car for better or worse. He told me A LOT of people would look at it but just couldn't get past the exterior and if I'm interested that he'll go to battle for me. I got a great deal and I ended up taking the car to a local tint and performance shop. They were able to safely remove the graphics for a few hundred dollars. WIN!!!
I'm glad to see that this model of buying cars is on it's way out. Dealing with car salesman is one of the worst experiences an individual could go through in life that will make most people question their faith in humanity.
@@tonycj7860 Tesla is direct sale. They already tried to spend and probably still spending millions of dollars discrediting Tesla, but obviously it's not working. If legacy auto manufacturers want to be more competitive or at this point, survive.. they're gonna have to adopt to Tesla's model. Not just direct sales either, but vertical integration of in-house parts manufacturing as well.. and not to mention $0 on advertising. In the near future we'll see a fight between Legacy auto manufacturers vs. Auto dealer. I think the question is how deep the pockets are for both parties to spend on lobbyist in getting the laws amended or sustained.. but I think we already know what the outcome of that fight will be.. if it does happen.
I would love to be able to buy a car direct from the manufacturer, but the dealership model as we know it now is going nowhere fast. Tesla is a nonfactor when you consider that the other 99.5% of new cars sold are from major manufactures using the dealership model.
@@emilemilio3344 as much as I'd like to agree with you, I don't see the dealership system going away anytime soon. There is strong opposition in many areas. Just as an example, Texas did not allow Tesla to sell directly to consumers. They had to setup a dealership network. I haven't looked into the specifics, it's likely a hybrid. But the point I'm making is that the dealership network isn't going away soon.
i just cant see the idea of EVERY car on the lot being sold. I have been to Auto Auction houses, and have never seen a car with say, 500 miles on it. Manufacturer does not SELL all these new cars to a dealer lot. Some...will not sell and be last years model. Even then, the car could be a crap model that just won't sell, and a Dealer isnt about to take a bunch of losses. The Dealer is expected to sell EVERY car he gets? Nope. Defies logic. At some point...said Manufacturer must take the unsold car. It would be more logical that these unsold cars are "Sold" again to Dealers with the newest model upgrades. (i.e. new bumper design, new tail light cluster, etc...but SAME car..it's STILL new!)
I think it must be counterintuitive that every car will be sold. However, they are. I was in the car business for 40 years and owned five new car dealerships before I retired. Never seen a car that eventually didn’t sell and I have never seen a situation where a dealer was given the option to send it back. Ever! What I have seen is in an unusual situation, Such as a major recall with a shortage of available parts to make a repair, the manufactures have offered extra carrying cost assistance until the problem was squared away. But in every case, the car was eventually fixed and then sold. The manufacture may also offer extra incentives including extend the manufactures warranty to make the purchase more palatable to the consumer but, the car gets sold. There is no such thing as storage yards where new cars that didn’t sell are stored at least in the United States.
@@andrewdixon3538 Didnt imply that there were storage yards of new cars sitting around. It would make sense to me at least...for the manufacturer...to take back some unsold cars, and to simply revamp them and badge them as a new year model, and try it again. The car is still new, simply a new model year bumper, etc. Nothing wrong with that at all. I dont see how a dealer can carry all that inventory of unsold vehicles. Will the manufacturer send him new model year cars when the olds ones are clogging up the lot? I have simply NEVER seen an auto auction with new, unsold dealer cars. Maybe I have missed something? The money, as we know...is in the Dealer repair shop anyway.
@@TheOnememphisdude VIN numbers are difficult (and presumably illegal) to change. Price will drop until a buyer willing to overlook the unpopular attributes comes along.
In 1996 I bought a 2 year old left-over Chevy conversion van for $10,000 less than sticker price. It had never been owned. It sat at the dealer's lot for 2 years and never sold. I had just given birth to triplets and needed a bigger vehicle to accommodate the triplets (and their stroller), my older son, husband and me. It was perfect! We just happened upon it and bought it right away!
As sales drop the car dealers raise their prices and call it "inflation." It is lack of sales volume. Ace hardware does the same thing. When the economy dumped in 2008, new car prices doubled and volume was cut in half. So they raised the prices more and sold 4 door Cadillac pickup trucks, and racing SUV's and other stupid things that they could pretend was running up the price of vehicles. Their business model is based on "mass production," when they can't sell cars they don't change the business model to one that works.
I'm in the process of looking for a car, and I've found the YAA videos to be both entertaining and enlightening. Zack, Ray, Lauren, Kim - all are great characters and play their parts quite well, and have taught me a lot. Thank you for sharing your knowledge!
I went to a Ford dealer in small town Oregon as a sales consultant teaching sales to their crew. I asked the dealer what they needed sold most. They said they had new cars having birthdays. In one week I sold three new cars that where one year on the lot. Almost without exception it's sales people's inability to do the job they were hired to do. They read magazines play video games or watch TH-cam. One of the sales was from the service department customer waiting for oil change. One was an old couple walking their dog. Dealers train your people and hold them accountable for their time!!
Just bought a brand new 18 model with 49 miles. Never titled, almost 3 years old. Saved 20k and got a true lifetime drive train warranty as long as I own it.
We had a Pontiac/Buick dealership in our county (small town locale) that still had new 1959 Vauxhalls in 1967 and new German-built Opels in 1995,the dust was so thick that when they were finally sold they used brooms to sweep them off before even attempting to run them through their mechanical car wash !
Thank you . There are so few people out there that can really help you when it comes to cars . I have been taken more than once . In fact I hate buying cars . It should be something that brings a person great joy but not me . Thank you again from TN .
I hauled cars for many years (Found a better driving gig with 1/10th the work and the same pay!) both new, secondary out of auction yards and "POV's" and what you infer about the secondary market is very true. Most people have no idea how large the volume that a major ADESA or Mannheim lot will go through in a month. Having said that, there is certainly a massive backlog right now, but that will pass, just as it did in 2008/09. Nicely done video. Succinct, accurate and to the point. Kept my interest. Well done, sir. Well done indeed.
Thank you for being so transparent. I wish dealers were this forthcoming with this information. A few weeks ago I declined to purchase a used Cadillac because the OTD price we got had the vehicle priced $3k higher than when we first looked at the car. They also added about $6k in additional fees (like "closing cost") on top of the markup. We asked that the price be reduced to what we discussed on the test drive. They wouldn't budge on the price. We walked away. The car has been in their inventory for 60 days now. The price is still not moving so I'm wondering if this is one of those dealers that holds onto cars forever while waiting for the perfect buyer that's willing to pay their price. They do market based pricing but what is that even worth if in the end they don't have any buyers for that car? The car isn't getting any younger so the value will continue to drop while it sits on their lot and they refuse to lower the price by any means.
That was some of the best car buying advice I have heard. These days I lease. I call four or more dealerships the day before the end of the month. I tell them the model and features that I need. I tell them that I will make the purchase tomorrow at the dealership with the best offer. I tell them that I am hoping to find the car matching the description that has been on their lot the longest. I make it clear that the purchase will be made the next day and that the dealership with the best price is making a sale tomorrow. Somebody is going to make the sale, so there is always one or two dealerships that aggressively seek to be the low price leader. Somebody needs to make a sale and I work hard to find them.
@@angelgjr1999 this is why you buy slightly used car. A car right off the lot will depreciate massively in just a few years. If you want a brand new 2020 car, wait until 2023 and buy that car for way less.
@@angelgjr1999 How do you think a dealership makes profit on a lease? What you pay will need to pay for the depreciation as well as earn them a profit.
Lol. You think the end of the calendar month is the day we dealers use as the “End of the Month”? ...heh. Let me reassure you, you didn’t get the best deal you could have. Here’s a little secret - we know you, as the consumer think that little gem is true.
I bought a used new Escort at a great price because someone had ordered then purchased it then returned it! The lady ordered it with manual Transmission and couldn’t deal with it! So she brought it back! It was a small family car with a stick seems no one wanted it except for me! Great car had it 10 years and passed it through the kids then to my SI and she had it for 4 years before she was run into and the car was totaled! She loved that car as well!
If a person is willing to not be obsessed with a car's aesthetics, there are some great deals to be had with a new car purchase. Years ago a co-worker of mine needed a economy car for commuting purposes, and found an unsold Nissan sedan that had been sitting on the dealer's lot for over 16 months; where the guy bought the car at a 40 percent discount. That compact Nissan sedan's paint job was a metallic lilac color, which could have been a compelling reason why the car went unsold for over a year. The guy that bought the car didn't care about what the color of the paint was, he was satisfied with the dollars savings he got with a new car purchase.
i buy buick park avenues and town cars for a charity.....there is a 40k mile nice 2004 at my local dealer...i know they got it for 2k......listed for 12.5 k........its been there 3 yrs and they still won't discount it.
I liked the days when you went to the dealer and ordered a car. You needed cash up front. The banks gave good interest deals. You outfitted the car the way you wanted it, full tilt or bare bones.then you waited with keen anticipation for about 6 weeks , while they built your car. It was brand new and made for you.
@@michaelr.williams8176 When I would tell this to my customers, their reaction was to laugh because it was obvious that it was a joke. Most people have a sense of humor.
While this is not always true generally speaking a top shelf dealer pays the manufacturer about 1/3 of the retail price to purchase it. Also. A large dealer doesn't always pay for the car up front. The manufacturer will "front" the car to them and when it sells they pay for it. I know . I worked for a dealer with about a 2000 car inventory and they didn't pay Chevy for some and were shut down over night. That's the facts.
I had opposite experience a few years ago. Called local dealer about a pickup they had in ad, and asked if they still had the truck. I was told yes it's still there. So next day I show up and ask about truck, salesman pulls it around to showroom. Right away I know truck has been used, bed is scuffed, oil running down engine cover, etc. I asked if this was same truck? Was told yes, the owner has been using it all summer. I guess so, there was about 6K miles on odometer. Not a deal killer, but they wanted new price and wouldn't budge. After I quit laughing I drove to another dealer and bough same truck for thousands less. Brand new! I guess dealers really think their customers are idiots, and maybe some are. New subscriber by the way. Thanks for all the info you provide. Keep it coming.
I went through this with a motorcycle dealer a few years back. "No, even though that bike is 3 years old, we'll keep it until it sells. No discounts." Must be the grandson of the owner running the place.
Some do this, but it is really the exception. Tying up your line of credit and paying inventory taxes and interest to keep stock around for years and years is just utterly stupid.
Thank you for this advice. We recently bought a Subaru Legacy and by asking for the oldest car they had with the color and options we wanted we got an extra $500 off the price.
In 1992 I was living in in Toledo Ohio , Bi-State Ford on Alexis Rd.had a brand new 1987 Ford E150 black conversion van that sat on the lot so long it was so faded you couldn’t read the window sticker and yet they still wouldn’t negotiate a deal on it !!!😂
I bought a 2019 Accord Touring in August of 2019. The sticker was $39,800 it took me 2 months over playing dealers against each other local and out of state dealers. Ended up getting the car for $31,600. Never go in there and act super excited they see right through that...
@@richfarfugnuven6308 I'm in real estate. It's not the same....you don't have to sell homes the way cars are sold my friend. In real estate - at least nowadays; the client gets approved at say $500K; they look for a home at or below that number and then we move forward. What they decide to do is totally within those numbers. No hidden bull shit going on, no pushy gimmicks. Unlike walking into a car dealership where you literally know you're gonna get raped unless you're savvy about your money and how things work. It's not the same.
@@taharqa332 sure. Then why did we have the massive bottom drop out of the real estate market in 2009? Was it because real estate agents pushed people into houses they could not afford and then banks approved them for way more house than they could afford? Hmmm, I kinda remember all of that happening and now it's happened again. Watch the bottom fall out next year.
Research cars that you like. Just like going to the grocery store hungry, never go to a car dealer when you need wheels---you will pay a lot more if you *need* a car. Always go before the need. Have walk away power and walk away if the deal is not right. Don't let the dealer wear you down by keeping you waiting so you have spent time and feel committed.
how about a video on " how do u know you have a good deal" yes dealers have to make $$ but every car I've ever bought at the end as I drive off the lot I feel I got the short end
Ray, I have to share a story with you that I bet you can relate to. Way back in 1983, I was working for a dealership, and this was in the early days of ordering new cars by computer, which we had very little knowledge of. So one day, we see the car carrier pull in, and all the salesmen burst out laughing. On the back was a 2 door Malibu, with a 2 tone paint in light blue on the bottom, and white. Worse, it had a burgundy vinyl top on it! Obviously we had hit the wrong keys in ordering, but it got worse! Once off the truck, we realized we had ordered a stripped down car, and when I jumped in to move it, realized we had ordered it with a 3 on the tree transmission!! Now I'm sure you remember we were in a recession back then and we were getting only a limited number of cars, so this dog was going to be a hard one to move. It sat on the lot for about 6 months, with most customers who stopped to look at walking away laughing. One day I see an older couple pull in in their 4 door citation, which I'm sure you remember as one of Chevrolets ugliest cars ever produced. They pulled over and were looking at the Malibu. To spare the salesmen from being laughed at, I said I would take them. As I walked out to greet them, I glanced in their Citation and noticed it was a striped down car with a manual transmission, probably the only one ever made! When I greeted them, the man was in awe, and told me they had looked everywhere, and hadn't found a car like this. I resisted the urge to tell him he never would again! After a short test drive, they wanted to purchase it. I reluctantly asked if they were going to trade the Citation (please gawd no) and he said no, it took too long to find that car, and they weren't letting it go. After a slight negotiation, they bought the car for almost full price! It just goes to show that each customer has their own idea of the perfect car, so don't prejudge them. Forty years later that customer is still in my head!
this is a great lil sit down you do here sir. straight to the point and no b.s. on the other side of this you also need to be careful f dealers doing the switch-aroo when you purchase a brand new unit and they switch it for a pre owned lemon. im off the grid in a now custom travel trailer and when i bought it the guy knownly give me a lemon model that wsa out back. about 2 months into ownership i came across my photos of the day before taking delivery, the decal pattern outside was completly differnt, the unit they "took" for prep was taken out back and i was sold this contraption. the only thing that saved both of us is my plan from the minute i walked into this is to gut it and restyle it like its the mid 80's. be care ful everyone.stay safe and take care
I worked for a ford dealer that would have a lot of inventory at the end of the model year. If a car entered the negative range and it was not going to sell there would be a meeting about these cars and after the meeting a bunch of these cars would be loaded up. Then they are taken to a registered scrap yard and the Taxation people would be there recording serial numbers and the dealer was credited with the price as a tax write off.
friend of mine was a Dodge Dealer for years. When he passed his kids sold out his aged inventory of new and used cars. Some of them were 20 years old with no miles. Of course he used his own money to buy them from Dodge so he had no bank to hound him
@Peter Brown as a salesmen i love an educated buyer. Its those who don't do their own research that end up thinking everything is a scam and end up never buying a car. I'm a straight shooter type of salesmen, educated buyers make it easy. As I always say "numbers don't lie" and thats what it all comes down too in the end for both the dealer and the buyer
Another way to find out how long a dealer has had a car for is to look at the state inspection sticker on the windshield. In the state I live in the date is printed right on it. Easy way to get a ballpark estimate when the car landed on the lot.
In NJ, the inspection sticker isn't on the car until sold. Case in point, my 2016 Elantra (leased) had no inspection sticker, and I drove without one for over a month. I didn't even realize it until after taking a picture of my new car, and realizing that windshield didn't have the state inspection sticker. I drove to the dealership after work and they put one on. Good thing I was never stopped by the cops beforehand.
Yep. My car got its inspection sticker when it was delivered. Six months later, it had a total of 19 miles on the odometer when I took it on a test drive. I got a good deal because they wanted it gone.
I have an RV channel and sometimes get the same question. My answer is the same, I have never seen it happen. But the difference is that I have heard of a van waiting a year unless it was for demonstration purposes.
I'm from the UK and the guy who bought my house worked for British Leyland, they has fields of Morris Marinas that dealers didn't want. Employee's were offered them at a knock down prices that included a new hose and other perishable items kit. This to cover them having been standing for years in the open. He asked me to haul it back for him, I was not allowed into the lot, so he towed it out the gate with his MGB. Back home we did a fluids change, stripped out the brakes and rebuilt them, put 20 miles on the clock on a private road. He registered, taxed and insured the car, drove the thing fore 7 years, only having tyres/brake and service items. They were horrible cars but this one did what it needed to do and it came at about 60% of new car price.
All new car prices have been adjusted to compensate for vehicles that did not sell... Simple math, if I have 100 donuts to sell, and I only sell 90 , the price has been factored in the 90 I sold. There are never no losses.. Especially in the car buisness.. Just look at these car dealerships, big beautiful buildings just like the casinos in Vegas paid for by the big profits, not the LOSSES...
tom talley I’ve nerve driven up to car car dealer and had a guy run at me trying to service my current car . 100% of the time they run up to me to sell me a new one . That’s odd behavior for some one that doesn’t even really make any money on it !
Last year I got my first job to help pay for my University at a dealer. I porter cars and I remember when this one sports car came in at June. Fast forward and it's currently still sitting. The only person who moves it is me to wash it up every few weeks. In this example the car in question has a manual transmission and none of the interested customers know how to drive it (I've watched plenty stall and stall again trying to get the thing out of the lot). The ones that can drive stick don't want to pay the large price that we are still asking. Yikes. At this point as a sales manager I would either dealer trade or auction the thing. Not worth keeping.
Funny story about a customer I had maybe five years ago. Young guy in his mid 20s. He had a year old Taurus SHO. When I did the appraisal and called for payoff I found he was $18000 upside down. Well there was nothing we could do for him. Banks will not carry that kind of negative equity. About a month later he stops back in and said, someone had broken into his car and torched it. We all knew exactly what happened to that car. I was not interested in doing business with him then.
Once you have been buying cars for 30 to 40 years then you can have an opinion. thats valid. You have NEVER bought a car. All you have is one daddy gave you. Not valid.
@@FYMASMD His car has lasted him 8 years. How he got the car ceases to matter. He may drive it another 12 years or more even depending how how he much and how he drives. Regardless when he got his car you only had 22 to 32 years of buying cars. Not as impressive sounding eh? By the way how many cars have you bought?
I remember back around 2003 when the gas prices went super high ,,, I worked in a ford dealership,,, we had a hard time selling the v10 gasoline engines,,, it got to the point that the dealership offered a 2,000 bonus to sell those things!! 🤣🤣 it was hard,, cause of the gas issue!!! ⛽
We had a local dealer who owned several new car lots. He always paid cash for his new cars. I once saw a "new" F-150 that was about 2 model years behind. Since he wasn't paying interest he didn't have to steeply discount his vehicles that didn't sell quickly. I understand that's very unusual for dealers not to finance their inventory.
Lilibeth Doherty Honestly I don't remember that. It could have been a regional program, or quite possibly it could have been a dealer promotion. Either way it proves that no car ever goes unsold, as we like to say, there is an ass for every seat.
I worked at a radio station with 7 sister stations in a small market. All 8 stations came together in 2003 to give away a "new Daewoo Nubira". The car was a 2002 model. Looking back, that was probably an unsold new car. Maybe the sales & promotion departments worked out a trade to get the car in exchange for advertising time and promotional mentions.
Think those same cars will remain unsold ten years from now? Twenty? They won't go unsold, they just haven't been sold...yet. Not unlike the frequent drunk driver that has never killed anyone. ..yet...
Right, they're unsold 'til they're sold. Walk into a grocery store. Nothing on the shelves but unsold groceries. Looking for a house? I'd recommend looking at unsold ones. Need a doctor appointment? Check if they have any unsold future time slots, although unsold past time slots might be cheaper. I'm a big Tom Petty fan - know where I can get some unsold tickets? Unsold cars ain't like unsold Petty tickets, they just drop the price OR wait 'til someone buys 'em. I sold cars for 30 years. Had a customer come in with a 4 year old Cadillac he bought new 1 year earlier with 10k miles on it. Jaw dropped when we told him the value was the same as one bought 4 years ago with 10k miles. It could be a decent deal if you wanna keep it forever, not otherwise.
As a former auto Finance Director and "car guy", I knew what you are talking about. In July 2020 I wanted a new Chrysler 300 and so I searched for new 2019. Using the different internet resources: Autotrader, KBB, CarFax, CarGurus, etc, I searched for about a week. Called around made offers and finally found a brand new 2019 with only 107 miles on it at a small dealership in Texas (with exactly the color and features I wanted.) MSRP was $34K and I ended up getting it for just under $21K + tax, title & license. Being patient and searching around ABSOLUTELY paid off for me!
I wish they still made Oldsmobile 88. These were some of the best cars GM ever made the Oldsmobile 88 and 98 with the Buick 231CID 3800 Series engines. I thank that was the down fall of GM when they discintined the Oldsmobile 88 and 98 after 1999 and when with junk like the Northstar V-8. I know someone that swapped the Northstar V-8 out of his 1999 DeVIlle and put in the Supercharged Buick 231 3800 Seines III and it bolted right up
Don Feeback I’ve seen those same videos where they searched and found 3 year old vehicles that were never titled. A special order flatbed work truck comes to mind. I’m predicting a lot of C7 Corvettes will be sitting around a bit, thanks to the C8.
Back in 2013, I attended an auction of a Chevrolet dealership in NE Nebraska. I say several cars, including a 1984 Chevrolet Chevette with 285 miles that was never sold and parked out in a field. What a complete waste. It does happen. I also saw a small lot full of Daewoo Lanos and Nabiras that remained unsold when the brand was suspended. The dealer was a multi-brand group in Chicagoland that did not want to sell a product that could not be properly serviced.
I met someone in passing that worked at a new car dealership as a driver he picked up and dropped of customers for dealership repairs and transporting both new and used cars to other dealerships where there was a demand for it. The new cars were usually a paperwork deal where the manufacturer simply reassigned it from x to y dealership and there might be a swap for a different vehicle or there might be a small fee for delivery to the other dealership
2014 was a hot hot year for Dodge avenger sales. It had 4000 rebate---and chrysler credit bought anyone who could breath and could ut 1500 cash down payment---. I finance as many Avengers to low credit buyers that I could get.
All the time I see dealers here advertising a year older car and want MORE than the newer year. Not since the covid rush but yea. I had to laugh about a used car here on a lot tho. This was when things were slow during the shutdown. 2017 model S 75d, 45k miles. New costs $69k at the time. More range, faster, etc etc etc. Listed at 59k. Someone I know went and offered them 47k, they turned it down. They sent it to auction 5 times before it finally sold. They let it go for 33k. They would rather take 33k at the auction than give someone a deal on the lot. The carfax was full of service records tho because they would let it cook in the sun and kill the battery over and over.
I worked at dealers in the 70's as a kid. At a Caddy dealer taking care of new cars off the truck and inventory for a couple months. In 1976 had an ugly 75 Eldorodo had to take care of once every other week. I assume it sold. They had a couple left over Oldsmobiles too. Worked in District office for Subaru before going to work in another career.
Your One Smart Guy!👍 Is The Golden Rule When Looking At A New Car To Buy To Always Knock Off At Least $2000 Off The Sticker Price? Or Should U Knock Off More $ BigDave From Chi-Town! (Chicago!)
I also feel that some new cars that sit for a while suddenly just get sold to fleets like car rental companies or even become loaner cars for said dealership
We would add pinstripes & a set of custom wheels - park it inside the lobby ...... and it would be gone in a week at the original asking price - because we would convince the buyers that the upgrades were no extra cost to them.... works with motorcycles too.
In 87 my father bought an brand new 86 ford taurus from the a dealership for a significant discount. Funny thing was the only difference with the 86 and 86 were the headlights and taillights.
I once bought a Nissan Altima that was 1 year old but still brand new at the dealership. And 3 months later I traded it in for something else because the car sucked!
May be why an entire shipload burned this year. Guess who the insurance companies will raise their rates to to pay for the ship & cars they had to compensate Nissan for?
Hoinyack Yates The seats were unbearably uncomfortable . The car literally had no bells and whistles. Also, the sales guy told me that the car had side airbags but it really did not. This was back in 2008. I bought a 2007 Altima.
LOL. Like a car salesman is that "honest" that he'll give you a GREAT deal on a supposed oldest new car in the inventory. He/she will still try to get the maximum price on top of the highest commission.
Actually, I wouldn't give a damn what we sold that oldest car for. All I wanted to do is sell it at whatever cost because the bonus money attached to that car was far greater than some mini deal on a fresh car.
I always brought a new truck (Ford) from a dealer with a Fleet Manager, he gives you one price, you buy or don't buy, and have your own financing. You deal with a sale person, it's takes 4 hours to buy a new car, and you get tired of saying, I'm not paying that. And he say I'll go talk to my boss, and I say no, I'll talk to your boss.
I worked at a dealer that used the push/pull idea. As part of the car pack, either new or used, there was x amount of dollars that was allocated for the oldest vehicle which would benefit by lowering the cost of money in that vehicle.
The last week of 2019 I bought two 2019 Chevy silverados for my business. The sticker price was 46K on each. I bought two of them for 33K apiece. I knew, in a week these will be seen as a year old. They want them off the lot. I made the offer and told the salesman. Do the thing where you go talk to the manager but when you come back say one of two words. Yes or No. He was gone about a half hour came back and all he said was yes.
🤔I preferred Spins from the manufacturer no spoon fed favorites.SPIFFS implies multiple bonuses on multiple automobiles, we’re talking about one vehicle here. Usually a high mileage demo driven by a Sales Mangler, Managing Partner, GM, Head of Finance, Ownership and their family members.
@@paulspearman8072 Spiffs were great back in the day. Sometimes they'd be potentially worth $2000. Towards the end of my time though they would only be $150-250. That's nice but not like it was. The money was also on the card immediately.
Tom Board I don’t know what on the card means🤷🏾♂️ I do know manufacturers cash didn’t count against your draw😉 Dealers always takes $’s from Sales Manglers and Finance folks and they could get fired for making too much money 🤔...and then sales drop and they wanna blame everyone else. They’re the decision maker that fucks up the chemistry between the sales floor, sales management, finance dept, detail shop and service.
I’ve also seen dealerships “trade” between themselves. I had a very specific set of requirements for a new Jeep Wrangler. It had to be a specific color that was rare and also it was the last year of it. I had options I was adamant about. My salesman found a dealer a few hundred miles away and traded one they had in stock for the one I wanted. Best Jeep I’ve ever had so far.
Happens all the time. They place their orders from the manufacturer based on (somewhat) educated guesses about what will be popular in their particular market. But they can't order every possible feature/option/color combination. So when a customer comes in with a specific set of requirements, they'll try to find it at another dealership and either buy it from that dealership or trade something out of their own stock for it. Happens every day.
they would rather auction a car at a loss than sell to you at a loss says a lot
its the irs rules
@Obilwe wufuh Mubufu Oulou lmao
I guess that depends on what dealership you go to. Mine would rather sell it to a customer but if we can get more at an auction than your offer; it makes sense to take it to auction... some people just don't know how to negotiate and talk themselves out of a good deal
@Obilwe wufuh Mubufu Oulou true about coke but used cars they get jack up crazy
They don't want to set any precedents.
I only buy certified used cars. 20-30 K miles, still has factory warranty, and someone else ate the depreciation.
Genius
lol. you obviously don't own any toyotas.
You buy cars as a financial investment?
@@jeremynelson8496 why do you mention Toyotas? I did what the OP speaks of with a Camry.
@@Lifechanging99999 It's my observation Toyotas don't depreciate much until they are much older. Last time I bought a Tundra I had a choice between a 3-4yr old truck with interior stains and 50k and a brand new truck from the same dealership only 1-2k difference in price. To me, its not worth the gamble to buy someone else's issues for only 1k less.
The mere fact 1000s upon 1000s of new cars go unsold every year. Is further proof cars are way overpriced & overproduced.
They get sold.
@@genoaoak They get sold from dealer to dealer or end up in some rental company to fleet company. There are cars that will never see their 1st ownership in the hands of an everyday citizen looking for a new car.
@@Wormanatti that's irrelevant, some entity somewhere owns them be it a fleet or an individual.
Wormanatti thank the auto unions for the high prices. Unions increase the price of everything they touch. 🧐
@@AmandaHugenkiss2915 No it's irrelevant. It just shows how corrupt the system & depraved humans are really. That's why I even death I celebrate the day this whole thing is destroyed. The system of taking advantage while bailing these companies out I don't support. They can make less cars which will make them a bit more affordable by cutting production cost.
The most highly trained salesman in the dealership IS the finance guy. If its a hot girl, be extra on guard!
yup the finance guy is the one who rips you off big time
This.
Yup 1000% true, the price can easily go up anywhere 1-5k more than what u thought u would be paying. A close friend of mine husband is the finance guy at a chevy dealership and she told that he has taken advantage of folks numerous times, especially those with crap credit or young ones
Statement is technically false, the highest trained salesman is the sales manager. They typically train in finance before they're able to become managers. But in a way you're right...
All these people that think these salesman are giving you the bad deals
Lmao 😂 its the finance managers😂
The salesman is just the shitty middle guy who gets a commision😂😂
Our dealership also owned 5 other dealerships. Our aging vehicles would be rotated between our lots to refresh the lot inventory. Sometime it just needed a fresh city, a fresh salesperson, and a fresh market. We rarely had aging models. We were also paid extra for the older model so there was motive to move them.
I had a friend in the business who told me “there’s an ass for every seat.”
And a fucking
Yup. Classic car line
Spot on😂😂
And that's true of essentially every business. When that reality no longer holds, you no longer have a business.
Tricia Elaine
And a penis for every vagina
This must be why everyone tells me that my vehicle was an absolute steal. With none of this knowledge I went to a GMC dealership in November of 2019 and had my eyes on a Sierra 1500 they labeled as "new" but had ~2000 miles, as it was a courtesy vehicle the dealership used. I felt the label of new was accurate as the vehicle was immaculate. It stickered for $52k and they wanted $44k, I offered them $37k and they refused. I walked away and went fishing, that night the dealership called me and told me they'd do $37k and I went in the next day and got the truck! I now think this must have been one of those vehicles that the dealership was desperate to get rid of and im so thankful it came into my possession, I love it!
@@frankm5019 sure is if it’s fully loaded and only has 2k miles and stickers for 52k
@@frankm5019 I had a number in mind, my opinion, of 37k, they refused, I went fishing, they called back and accepted. Therefore what I viewed as a good deal came to fruition
@@StephanFournier1 That's how to buy a car. I bought mine the same way. If they don't take my price, I'm out the door. They're always another car down the street.
I got a new 2003 Silverado 18 years ago. It wasn’t fancy, wasn’t 4wheel drive. They just couldn’t sell it. The 2004s were coming in and they wanted it gone. We got it at a good price and it still runs like new. It has under 99,000 miles at the moment. Love that thing! Looked at some new ones and nearly fainted at the prices they are today.
@@melindaunknown6411 I have an 03 Silverado..144,000 and still strong. Love the cat eye year models
I'm a long haul trucker I'm seeing new cars stored everywhere people are waking up buying a new car in this economy is insane.
I'm confused as to how some popular designs "sell out" 🤔. Either the car makers are limiting the production or people have more $$$ available then they say. Tesla trucks, Ford Broncos, GM hummers(electric vehicle).
@@DavidLLambertmobile That Tesla truck is perfect for this violent society we live in where random shots are going though people's vehicles on the highway, at a stop light, just sad.
Bill Bersch Just keep your head below the window.
@@elvism684 The bullets pierce through the modern cars body. Stainless Tesla Truck prevents it.
Bill Bersch Stainless steel in the mil thickness as used on a body panel is not a ballistic material and can be pierced.
I used to work at an auction and I’ve seen brand new 2019 cars sell cheap. There was a 2019 Hyundai Elantra with around 900 miles on it sell for 8900. I’ve also seen Aston martins sell for around 30,000 with less that 5 k miles. It’s insane how cheap cars actually go for. But like he said you need to be a dealer.
The Elantra was probably a Framer. 5 months ago? Either fire sale or Framer.
Years ago, got into fender bender, needed new bumper, hood, side, I looked into getting the parts myself and getting a body shop to paint them, at that time a new hood, unpainted cost 600-700 dollars, a friend of mine worked for a guy that had dealer or body shop number from a buddy of his, he went to get me the parts with what a dealer or body shop would pay for, my hood cost like 120 dollars, I don’t know how you loose money owning a body shop with those margins
@@marianchicago4002 Supplies, rent, employees, utilities and insurance just to name a few.
Where do u find these car auctions?
ya im surprised they go for so cheap as well with so many dealers there
That's actually how I ended up getting a good deal before. I shopped around for months and kept seeing the same car at the local Ford dealership. The salesman who was a cool guy realized I was an actual buyer and got the car reduced about $3,500. The Mustang was really nice EXCEPT for the graphics package and striping, It looked hideous. The salesman told me that it happens sometimes that Ford would do bizarre exterior/interior color combos or add random things like graphics onto a car for better or worse.
He told me A LOT of people would look at it but just couldn't get past the exterior and if I'm interested that he'll go to battle for me. I got a great deal and I ended up taking the car to a local tint and performance shop. They were able to safely remove the graphics for a few hundred dollars. WIN!!!
I'm glad to see that this model of buying cars is on it's way out. Dealing with car salesman is one of the worst experiences an individual could go through in life that will make most people question their faith in humanity.
What other way is replacing it? Besides Tesla, every other manufacturer still requires you to go through a dealership.
@@tonycj7860 Tesla is direct sale. They already tried to spend and probably still spending millions of dollars discrediting Tesla, but obviously it's not working. If legacy auto manufacturers want to be more competitive or at this point, survive.. they're gonna have to adopt to Tesla's model. Not just direct sales either, but vertical integration of in-house parts manufacturing as well.. and not to mention $0 on advertising.
In the near future we'll see a fight between Legacy auto manufacturers vs. Auto dealer.
I think the question is how deep the pockets are for both parties to spend on lobbyist in getting the laws amended or sustained.. but I think we already know what the outcome of that fight will be.. if it does happen.
I would love to be able to buy a car direct from the manufacturer, but the dealership model as we know it now is going nowhere fast. Tesla is a nonfactor when you consider that the other 99.5% of new cars sold are from major manufactures using the dealership model.
@@emilemilio3344 as much as I'd like to agree with you, I don't see the dealership system going away anytime soon. There is strong opposition in many areas. Just as an example, Texas did not allow Tesla to sell directly to consumers. They had to setup a dealership network. I haven't looked into the specifics, it's likely a hybrid. But the point I'm making is that the dealership network isn't going away soon.
I avoid that by getting my cars in the private used car market. Works out well for me.
Your Auto Advice: No such thing as a unsold car.
COVID-19: Hold my Beer.
i just cant see the idea of EVERY car on the lot being sold. I have been to Auto Auction houses, and have never seen a car with say, 500 miles on it. Manufacturer does not SELL all these new cars to a dealer lot. Some...will not sell and be last years model. Even then, the car could be a crap model that just won't sell, and a Dealer isnt about to take a bunch of losses. The Dealer is expected to sell EVERY car he gets? Nope. Defies logic. At some point...said Manufacturer must take the unsold car. It would be more logical that these unsold cars are "Sold" again to Dealers with the newest model upgrades. (i.e. new bumper design, new tail light cluster, etc...but SAME car..it's STILL new!)
h3rD r3dUc3r Play no words. Lol. Unsold to the consumer. There’s been plenty !
I think it must be counterintuitive that every car will be sold. However, they are. I was in the car business for 40 years and owned five new car dealerships before I retired. Never seen a car that eventually didn’t sell and I have never seen a situation where a dealer was given the option to send it back. Ever! What I have seen is in an unusual situation, Such as a major recall with a shortage of available parts to make a repair, the manufactures have offered extra carrying cost assistance until the problem was squared away. But in every case, the car was eventually fixed and then sold. The manufacture may also offer extra incentives including extend the manufactures warranty to make the purchase more palatable to the consumer but, the car gets sold. There is no such thing as storage yards where new cars that didn’t sell are stored at least in the United States.
@@andrewdixon3538 Didnt imply that there were storage yards of new cars sitting around. It would make sense to me at least...for the manufacturer...to take back some unsold cars, and to simply revamp them and badge them as a new year model, and try it again. The car is still new, simply a new model year bumper, etc. Nothing wrong with that at all. I dont see how a dealer can carry all that inventory of unsold vehicles. Will the manufacturer send him new model year cars when the olds ones are clogging up the lot? I have simply NEVER seen an auto auction with new, unsold dealer cars. Maybe I have missed something? The money, as we know...is in the Dealer repair shop anyway.
@@TheOnememphisdude VIN numbers are difficult (and presumably illegal) to change. Price will drop until a buyer willing to overlook the unpopular attributes comes along.
In 1996 I bought a 2 year old left-over Chevy conversion van for $10,000 less than sticker price. It had never been owned. It sat at the dealer's lot for 2 years and never sold. I had just given birth to triplets and needed a bigger vehicle to accommodate the triplets (and their stroller), my older son, husband and me. It was perfect! We just happened upon it and bought it right away!
There isn’t a vehicle on the road that’s technically worth more than $30k, prices are just stupid
Exactly and ppl be eating up all that debt
there are women's purses for $30,000 , value is what someone is willing to pay.
As sales drop the car dealers raise their prices and call it "inflation." It is lack of sales volume. Ace hardware does the same thing. When the economy dumped in 2008, new car prices doubled and volume was cut in half. So they raised the prices more and sold 4 door Cadillac pickup trucks, and racing SUV's and other stupid things that they could pretend was running up the price of vehicles. Their business model is based on "mass production," when they can't sell cars they don't change the business model to one that works.
No. There are some exotics that contain more than $30k in just raw materials. Carbon fiber, kevlar and magnesium are expensive.
Aaron Britt but what I don’t get is y ppl would purchase those things on a depreciating asset lmao
I'm in the process of looking for a car, and I've found the YAA videos to be both entertaining and enlightening. Zack, Ray, Lauren, Kim - all are great characters and play their parts quite well, and have taught me a lot.
Thank you for sharing your knowledge!
I went to a Ford dealer in small town Oregon as a sales consultant teaching sales to their crew. I asked the dealer what they needed sold most. They said they had new cars having birthdays. In one week I sold three new cars that where one year on the lot. Almost without exception it's sales people's inability to do the job they were hired to do. They read magazines play video games or watch TH-cam. One of the sales was from the service department customer waiting for oil change. One was an old couple walking their dog. Dealers train your people and hold them accountable for their time!!
You should check out Grant Cardone’s sales course
I've been to a three day seminar. He has some great sales technique but is a horrible person.
I think he goes by different names in different radio spots.
Just bought a brand new 18 model with 49 miles. Never titled, almost 3 years old. Saved 20k and got a true lifetime drive train warranty as long as I own it.
Kia stinger?
@@twizack22 I don't have a clue what a kia stinger is.
Now go see what it's really worth.
@@twizack22 Its a Smartcar😂
Hybrid?
Wow I haven't seen Richard Dryfuss in anything in years!
Hahahaha
Lmao
No its not, its Duddy Kravitz apprentice car dealer...
I know right, and now he's a TH-camr. A lot of celebrities are coming on here.😔😂😅
😂 ahhaha
We had a Pontiac/Buick dealership in our county (small town locale) that still had new 1959 Vauxhalls in 1967 and new German-built Opels in 1995,the dust was so thick that when they were finally sold they used brooms to sweep them off before even attempting to run them through their mechanical car wash !
Thank you . There are so few people out there that can really help you when it comes to cars . I have been taken more than once . In fact I hate buying cars . It should be something that brings a person great joy but not me . Thank you again from TN .
I hauled cars for many years (Found a better driving gig with 1/10th the work and the same pay!) both new, secondary out of auction yards and "POV's" and what you infer about the secondary market is very true. Most people have no idea how large the volume that a major ADESA or Mannheim lot will go through in a month. Having said that, there is certainly a massive backlog right now, but that will pass, just as it did in 2008/09. Nicely done video. Succinct, accurate and to the point. Kept my interest. Well done, sir. Well done indeed.
Thank you, sir!
What is your better gig?
Thank you for being so transparent. I wish dealers were this forthcoming with this information. A few weeks ago I declined to purchase a used Cadillac because the OTD price we got had the vehicle priced $3k higher than when we first looked at the car. They also added about $6k in additional fees (like "closing cost") on top of the markup. We asked that the price be reduced to what we discussed on the test drive. They wouldn't budge on the price. We walked away. The car has been in their inventory for 60 days now. The price is still not moving so I'm wondering if this is one of those dealers that holds onto cars forever while waiting for the perfect buyer that's willing to pay their price. They do market based pricing but what is that even worth if in the end they don't have any buyers for that car? The car isn't getting any younger so the value will continue to drop while it sits on their lot and they refuse to lower the price by any means.
There's a sucker born every minute...PT BARNUM
There's an ass for every seat.
That was some of the best car buying advice I have heard. These days I lease. I call four or more dealerships the day before the end of the month. I tell them the model and features that I need. I tell them that I will make the purchase tomorrow at the dealership with the best offer. I tell them that I am hoping to find the car matching the description that has been on their lot the longest. I make it clear that the purchase will be made the next day and that the dealership with the best price is making a sale tomorrow. Somebody is going to make the sale, so there is always one or two dealerships that aggressively seek to be the low price leader. Somebody needs to make a sale and I work hard to find them.
Agreed. At this point,it’s literally more affordable to lease. New cars are expensive and depreciate very fast. Not worth it.
@@angelgjr1999 this is why you buy slightly used car. A car right off the lot will depreciate massively in just a few years. If you want a brand new 2020 car, wait until 2023 and buy that car for way less.
@@angelgjr1999 How do you think a dealership makes profit on a lease? What you pay will need to pay for the depreciation as well as earn them a profit.
Lol. You think the end of the calendar month is the day we dealers use as the “End of the Month”? ...heh. Let me reassure you, you didn’t get the best deal you could have. Here’s a little secret - we know you, as the consumer think that little gem is true.
@@NorthernChev when would you recommend to shop?
I bought a used new Escort at a great price because someone had ordered then purchased it then returned it! The lady ordered it with manual Transmission and couldn’t deal with it! So she brought it back! It was a small family car with a stick seems no one wanted it except for me! Great car had it 10 years and passed it through the kids then to my SI and she had it for 4 years before she was run into and the car was totaled! She loved that car as well!
If a person is willing to not be obsessed with a car's aesthetics, there are some great deals to be had with a new car purchase.
Years ago a co-worker of mine needed a economy car for commuting purposes, and found an unsold Nissan sedan that had been sitting on the dealer's lot for over 16 months; where the guy bought the car at a 40 percent discount. That compact Nissan sedan's paint job was a metallic lilac color, which could have been a compelling reason why the car went unsold for over a year. The guy that bought the car didn't care about what the color of the paint was, he was satisfied with the dollars savings he got with a new car purchase.
Car dealerships: Will that be with or without vaseline?
It’s slightly cheaper without vaseline but I wouldn’t advice it.
Jay did you get serviced at the dealership. Its appearent you were shy and just took it like a man. DRY. OHHH THAT FICTION.
i buy buick park avenues and town cars for a charity.....there is a 40k mile nice 2004 at my local dealer...i know they got it for 2k......listed for 12.5 k........its been there 3 yrs and they still won't discount it.
Bend Over ... Their is a seat for every a$$ and a A$$ for every seat !
without, that's the way I like it, uh huh!
I liked the days when you went to the dealer and ordered a car. You needed cash up front. The banks gave good interest deals. You outfitted the car the way you wanted it, full tilt or bare bones.then you waited with keen anticipation for about 6 weeks , while they built your car. It was brand new and made for you.
I sold cars for 28 months. We used to tell our customers we lost money on every car, but we made that up with volume.
@@michaelr.williams8176 When I would tell this to my customers, their reaction was to laugh because it was obvious that it was a joke. Most people have a sense of humor.
While this is not always true generally speaking a top shelf dealer pays the manufacturer about 1/3 of the retail price to purchase it. Also. A large dealer doesn't always pay for the car up front. The manufacturer will "front" the car to them and when it sells they pay for it. I know . I worked for a dealer with about a 2000 car inventory and they didn't pay Chevy for some and were shut down over night. That's the facts.
I had opposite experience a few years ago. Called local dealer about a pickup they had in ad, and asked if they still had the truck. I was told yes it's still there. So next day I show up and ask about truck, salesman pulls it around to showroom. Right away I know truck has been used, bed is scuffed, oil running down engine cover, etc. I asked if this was same truck? Was told yes, the owner has been using it all summer. I guess so, there was about 6K miles on odometer. Not a deal killer, but they wanted new price and wouldn't budge. After I quit laughing I drove to another dealer and bough same truck for thousands less. Brand new! I guess dealers really think their customers are idiots, and maybe some are. New subscriber by the way. Thanks for all the info you provide. Keep it coming.
I went through this with a motorcycle dealer a few years back. "No, even though that bike is 3 years old, we'll keep it until it sells. No discounts."
Must be the grandson of the owner running the place.
Some do this, but it is really the exception. Tying up your line of credit and paying inventory taxes and interest to keep stock around for years and years is just utterly stupid.
Thank you for this advice. We recently bought a Subaru Legacy and by asking for the oldest car they had with the color and options we wanted we got an extra $500 off the price.
Just $500?..
😂@@vicshrily
Well what do you know, there’s an honest car salesman after all. Thanks for sharing this information. 👍🏼👍🏼
In 1992 I was living in in Toledo Ohio , Bi-State Ford on Alexis Rd.had a brand new 1987 Ford E150 black conversion van that sat on the lot so long it was so faded you couldn’t read the window sticker and yet they still wouldn’t negotiate a deal on it !!!😂
I bought a 2019 Accord Touring in August of 2019. The sticker was $39,800 it took me 2 months over playing dealers against each other local and out of state dealers. Ended up getting the car for $31,600. Never go in there and act super excited they see right through that...
I could listen to your stories all day, reminds me of my father.
I am in the car business, this gentleman sounds legit and sincere.
andyscarcorner I am in drug business and I agree
I stayed in a holiday inn express, I concur
Yeah, but you're in the car business. We can't believe a word you say.
We can trust andy, he is in the car business.
The "Modern" Auto Industry...Second only to the Government in Corruption..
Also real estate agents...
Government is not corrupt, we the people are hypocritical and vote those folks in. Like the folks in office now mitch and friends
@@richfarfugnuven6308 I'm in real estate. It's not the same....you don't have to sell homes the way cars are sold my friend. In real estate - at least nowadays; the client gets approved at say $500K; they look for a home at or below that number and then we move forward. What they decide to do is totally within those numbers. No hidden bull shit going on, no pushy gimmicks. Unlike walking into a car dealership where you literally know you're gonna get raped unless you're savvy about your money and how things work. It's not the same.
@@taharqa332 sure. Then why did we have the massive bottom drop out of the real estate market in 2009? Was it because real estate agents pushed people into houses they could not afford and then banks approved them for way more house than they could afford? Hmmm, I kinda remember all of that happening and now it's happened again. Watch the bottom fall out next year.
Research cars that you like. Just like going to the grocery store hungry, never go to a car dealer when you need wheels---you will pay a lot more if you *need* a car. Always go before the need. Have walk away power and walk away if the deal is not right. Don't let the dealer wear you down by keeping you waiting so you have spent time and feel committed.
Invaluable knowledge. Most ppl are not aware of the "oldest, new car strategy". I will definitely ask when purchasing. Thank you so much.
how about a video on " how do u know you have a good deal" yes dealers have to make $$ but every car I've ever bought at the end as I drive off the lot I feel I got the short end
Ray, I have to share a story with you that I bet you can relate to. Way back in 1983, I was working for a dealership, and this was in the early days of ordering new cars by computer, which we had very little knowledge of. So one day, we see the car carrier pull in, and all the salesmen burst out laughing. On the back was a 2 door Malibu, with a 2 tone paint in light blue on the bottom, and white. Worse, it had a burgundy vinyl top on it! Obviously we had hit the wrong keys in ordering, but it got worse! Once off the truck, we realized we had ordered a stripped down car, and when I jumped in to move it, realized we had ordered it with a 3 on the tree transmission!! Now I'm sure you remember we were in a recession back then and we were getting only a limited number of cars, so this dog was going to be a hard one to move. It sat on the lot for about 6 months, with most customers who stopped to look at walking away laughing. One day I see an older couple pull in in their 4 door citation, which I'm sure you remember as one of Chevrolets ugliest cars ever produced. They pulled over and were looking at the Malibu. To spare the salesmen from being laughed at, I said I would take them. As I walked out to greet them, I glanced in their Citation and noticed it was a striped down car with a manual transmission, probably the only one ever made! When I greeted them, the man was in awe, and told me they had looked everywhere, and hadn't found a car like this. I resisted the urge to tell him he never would again! After a short test drive, they wanted to purchase it. I reluctantly asked if they were going to trade the Citation (please gawd no) and he said no, it took too long to find that car, and they weren't letting it go. After a slight negotiation, they bought the car for almost full price! It just goes to show that each customer has their own idea of the perfect car, so don't prejudge them. Forty years later that customer is still in my head!
I liked this story. Beauty is in the eye of the beholder.
this is a great lil sit down you do here sir. straight to the point and no b.s. on the other side of this you also need to be careful f dealers doing the switch-aroo when you purchase a brand new unit and they switch it for a pre owned lemon. im off the grid in a now custom travel trailer and when i bought it the guy knownly give me a lemon model that wsa out back. about 2 months into ownership i came across my photos of the day before taking delivery, the decal pattern outside was completly differnt, the unit they "took" for prep was taken out back and i was sold this contraption. the only thing that saved both of us is my plan from the minute i walked into this is to gut it and restyle it like its the mid 80's. be care ful everyone.stay safe and take care
I worked for a ford dealer that would have a lot of inventory at the end of the model year. If a car entered the negative range and it was not going to sell there would be a meeting about these cars and after the meeting a bunch of these cars would be loaded up. Then they are taken to a registered scrap yard and the Taxation people would be there recording serial numbers and the dealer was credited with the price as a tax write off.
friend of mine was a Dodge Dealer for years. When he passed his kids sold out his aged inventory of new and used cars. Some of them were 20 years old with no miles. Of course he used his own money to buy them from Dodge so he had no bank to hound him
Something tells me to trust this guy but his salesman title won't let me.
I get that same creepy feeling. Can't help myself.
I'll put it this way, watch a channel on TH-cam called, the Scotty Kilmer Channel IF YOU VALUE YOUR HARD EARNED DOLLARS.
There's a salesman called Chevy Dude that tells you what you need to stay away from and what to do when buying a car.
@Peter Brown as a salesmen i love an educated buyer. Its those who don't do their own research that end up thinking everything is a scam and end up never buying a car. I'm a straight shooter type of salesmen, educated buyers make it easy. As I always say "numbers don't lie" and thats what it all comes down too in the end for both the dealer and the buyer
@@invaderzim1265 Yes really good channel also car salesmen always fear a good honest mechanic
Dealers also sell new cars at auction to get their allocations up for next year.
Another way to find out how long a dealer has had a car for is to look at the state inspection sticker on the windshield. In the state I live in the date is printed right on it. Easy way to get a ballpark estimate when the car landed on the lot.
In NJ, the inspection sticker isn't on the car until sold. Case in point, my 2016 Elantra (leased) had no inspection sticker, and I drove without one for over a month. I didn't even realize it until after taking a picture of my new car, and realizing that windshield didn't have the state inspection sticker. I drove to the dealership after work and they put one on. Good thing I was never stopped by the cops beforehand.
Yep. My car got its inspection sticker when it was delivered. Six months later, it had a total of 19 miles on the odometer when I took it on a test drive. I got a good deal because they wanted it gone.
I have an RV channel and sometimes get the same question. My answer is the same, I have never seen it happen. But the difference is that I have heard of a van waiting a year unless it was for demonstration purposes.
I'm from the UK and the guy who bought my house worked for British Leyland, they has fields of Morris Marinas that dealers didn't want. Employee's were offered them at a knock down prices that included a new hose and other perishable items kit. This to cover them having been standing for years in the open.
He asked me to haul it back for him, I was not allowed into the lot, so he towed it out the gate with his MGB. Back home we did a fluids change, stripped out the brakes and rebuilt them, put 20 miles on the clock on a private road. He registered, taxed and insured the car, drove the thing fore 7 years, only having tyres/brake and service items.
They were horrible cars but this one did what it needed to do and it came at about 60% of new car price.
Every seat has an ass.. that's what they taught me when I started.. lol.
Good information..👍
Thank you for sharing your 40+ years experience with us !!!!
All new car prices have been adjusted to compensate for vehicles that did not sell... Simple math, if I have 100 donuts to sell, and I only sell 90 , the price has been factored in the 90 I sold. There are never no losses.. Especially in the car buisness.. Just look at these car dealerships, big beautiful buildings just like the casinos in Vegas paid for by the big profits, not the LOSSES...
Dealers make a killing on service and repairs. That’s where their profit lies. Don’t make much on new car sales.
And they keep extending monthly payments- 10 year car notes - because they don’t want to drop the prices
tom talley I’ve nerve driven up to car car dealer and had a guy run at me trying to service my current car . 100% of the time they run up to me to sell me a new one . That’s odd behavior for some one that doesn’t even really make any money on it !
True- I never could figure out why they need a Taj Mahal to sell cars when a tent would do!
Driven by many of those that are now closed so it’s not always true
Last year I got my first job to help pay for my University at a dealer. I porter cars and I remember when this one sports car came in at June. Fast forward and it's currently still sitting. The only person who moves it is me to wash it up every few weeks. In this example the car in question has a manual transmission and none of the interested customers know how to drive it (I've watched plenty stall and stall again trying to get the thing out of the lot). The ones that can drive stick don't want to pay the large price that we are still asking. Yikes. At this point as a sales manager I would either dealer trade or auction the thing. Not worth keeping.
Funny story about a customer I had maybe five years ago. Young guy in his mid 20s. He had a year old Taurus SHO. When I did the appraisal and called for payoff I found he was $18000 upside down. Well there was nothing we could do for him. Banks will not carry that kind of negative equity. About a month later he stops back in and said, someone had broken into his car and torched it. We all knew exactly what happened to that car. I was not interested in doing business with him then.
Your idea of giving a higher commission on the oldest cars was genius. Well done !
No it is not. The car should have been sold long ago.
"I can't do the math real quick". And then he does. Does this sound like a car salesman or what?
It sounds like a guy who has done car math for 43+ years... sorry.
Especially since his math bites the big one, 12x 120=1440 not 1800. Just sayin'
@Akadaker ok then, I'm getting more dottery all the time. I thought he said 120 and did some compound finance math. Sorry for the snap judgement
How many car salesmen does it take to change a lightbulb? ( Let me get my calculator out and I think you’ll be pleasantly surprised.)
His lips were MOVING.
Lol I've never had a new car I was given a 4,000 dollar Mazda 3 when I turned 18 and I still drive it to this day (I'm 26)
@@Taco_Lover. its a 2004 with over 220k miles lol I think the warranty is over 😅
@@wreckemtech165 yeah, that's what we call a Moon Shot. You may not make it back alive.
Once you have been buying cars for 30 to 40 years then you can have an opinion. thats valid. You have NEVER bought a car. All you have is one daddy gave you. Not valid.
Beautiful story.
@@FYMASMD His car has lasted him 8 years. How he got the car ceases to matter. He may drive it another 12 years or more even depending how how he much and how he drives. Regardless when he got his car you only had 22 to 32 years of buying cars. Not as impressive sounding eh? By the way how many cars have you bought?
I remember back around 2003 when the gas prices went super high ,,, I worked in a ford dealership,,, we had a hard time selling the v10 gasoline engines,,, it got to the point that the dealership offered a 2,000 bonus to sell those things!! 🤣🤣 it was hard,, cause of the gas issue!!! ⛽
We'll give you a petrol P-card valid for 2 years!
We had a local dealer who owned several new car lots. He always paid cash for his new cars. I once saw a "new" F-150 that was about 2 model years behind. Since he wasn't paying interest he didn't have to steeply discount his vehicles that didn't sell quickly. I understand that's very unusual for dealers not to finance their inventory.
Dude, great lighting, background, sound level, and informative tube! Great job!
Throttle Junkie don't forget the cup!!
In 1998 Kia was desperate to get to get rid of their sephia's the dealer had a buy one get one free special!
Lilibeth Doherty Honestly I don't remember that. It could have been a regional program, or quite possibly it could have been a dealer promotion. Either way it proves that no car ever goes unsold, as we like to say, there is an ass for every seat.
I remember this. You can google old ads from kia for this
I’d rather go to the dentist.
shepherdsknoll8 🤣🤣
😁
😁
shepherdsknoll8 In a New or Used Car 😂🚗
LMAO!!! I hate dentists but not as much as a car salesman.
I've never low balled a car I purchased, but I have to say this is an honest way for anyone that wants to shake on a fair deal.
I ALWAYS low ball my offers to the dealers
I worked at a radio station with 7 sister stations in a small market. All 8 stations came together in 2003 to give away a "new Daewoo Nubira". The car was a 2002 model. Looking back, that was probably an unsold new car. Maybe the sales & promotion departments worked out a trade to get the car in exchange for advertising time and promotional mentions.
Andrew, I think you are spot on. Stay safe and thanks for sharing. Ray
I bought a two year old leftover promaster with 5 miles on the odometer the dealer forgot about on an off site lot. Saved $17k ! 😂
and it was worth even less
Of course it is but $27k is better than $40k.
@@bigkid757 still too much!!!
First time watching your videos. Best piece of information for cars that i have ever heard. Thank you. Im actually car shopping at the moment
There are over 160 cars listed right now as “New” that are 2015 or 2016 models. Some cars do go unsold.
Listed where?
Think those same cars will remain unsold ten years from now? Twenty? They won't go unsold, they just haven't been sold...yet. Not unlike the frequent drunk driver that has never killed anyone. ..yet...
They will eventually sell. And you need to check the date of the source you got that from.
sensors have screwed up by now and the tires have dry rotted. no safe to drive.
Right, they're unsold 'til they're sold. Walk into a grocery store. Nothing on the shelves but unsold groceries. Looking for a house? I'd recommend looking at unsold ones. Need a doctor appointment? Check if they have any unsold future time slots, although unsold past time slots might be cheaper. I'm a big Tom Petty fan - know where I can get some unsold tickets? Unsold cars ain't like unsold Petty tickets, they just drop the price OR wait 'til someone buys 'em. I sold cars for 30 years. Had a customer come in with a 4 year old Cadillac he bought new 1 year earlier with 10k miles on it. Jaw dropped when we told him the value was the same as one bought 4 years ago with 10k miles. It could be a decent deal if you wanna keep it forever, not otherwise.
As a former auto Finance Director and "car guy", I knew what you are talking about. In July 2020 I wanted a new Chrysler 300 and so I searched for new 2019. Using the different internet resources: Autotrader, KBB, CarFax, CarGurus, etc, I searched for about a week. Called around made offers and finally found a brand new 2019 with only 107 miles on it at a small dealership in Texas (with exactly the color and features I wanted.) MSRP was $34K and I ended up getting it for just under $21K + tax, title & license. Being patient and searching around ABSOLUTELY paid off for me!
Ben thanks so much for sharing your story. I do appreciate it. Stay safe and thanks for watching, Ray
I wish they still made Oldsmobile 88. These were some of the best cars GM ever made the Oldsmobile 88 and 98 with the Buick 231CID 3800 Series engines. I thank that was the down fall of GM when they discintined the Oldsmobile 88 and 98 after 1999 and when with junk like the Northstar V-8. I know someone that swapped the Northstar V-8 out of his 1999 DeVIlle and put in the Supercharged Buick 231 3800 Seines III and it bolted right up
me and the dealer were about 1k off. now he says my trade in ,which he valued at 7.5k , has dropped. And he won't deal. to bad for him I say
That's the take away. CLOSE.
Leave your number and call me when you want to make the deal.
Drive it like you stole it, and leave the burnt hulk on his driveway
I have seen many videos that have new unsold cars sitting on huge car lots all over the world. How can you say there are no cars that can't be sold?
Don Feeback I’ve seen those same videos where they searched and found 3 year old vehicles that were never titled. A special order flatbed work truck comes to mind. I’m predicting a lot of C7 Corvettes will be sitting around a bit, thanks to the C8.
They'll get sold. Even if it has to be below cost, better to lose 10% than 100%. They certainly dont go to the junkyard.
You should explain “Holdback”! Domestic and Import.
3-5% of MSRP
@@Anon1mous : Domestic 3% and Imports 5%?
Back in 2013, I attended an auction of a Chevrolet dealership in NE Nebraska. I say several cars, including a 1984 Chevrolet Chevette with 285 miles that was never sold and parked out in a field. What a complete waste. It does happen. I also saw a small lot full of Daewoo Lanos and Nabiras that remained unsold when the brand was suspended. The dealer was a multi-brand group in Chicagoland that did not want to sell a product that could not be properly serviced.
I met someone in passing that worked at a new car dealership as a driver he picked up and dropped of customers for dealership repairs and transporting both new and used cars to other dealerships where there was a demand for it. The new cars were usually a paperwork deal where the manufacturer simply reassigned it from x to y dealership and there might be a swap for a different vehicle or there might be a small fee for delivery to the other dealership
2014 Dodge Avengers went unsold and I believe there still may be some on some lots out there.
2014 was a hot hot year for Dodge avenger sales. It had 4000 rebate---and chrysler credit bought anyone who could breath and could ut 1500 cash down payment---. I finance as many Avengers to low credit buyers that I could get.
perfect! Im shopping for a new truck this fall and know exactly what to ask for now.
Great! I'm glad we could help. Don't hesitate to get in touch if there are specific questions you have moving forward!
Pay higher commissions to get rid of older cars first? WOW! Genius!!
All the time I see dealers here advertising a year older car and want MORE than the newer year. Not since the covid rush but yea. I had to laugh about a used car here on a lot tho. This was when things were slow during the shutdown. 2017 model S 75d, 45k miles. New costs $69k at the time. More range, faster, etc etc etc. Listed at 59k. Someone I know went and offered them 47k, they turned it down. They sent it to auction 5 times before it finally sold. They let it go for 33k. They would rather take 33k at the auction than give someone a deal on the lot. The carfax was full of service records tho because they would let it cook in the sun and kill the battery over and over.
I worked at dealers in the 70's as a kid. At a Caddy dealer taking care of new cars off the truck and inventory for a couple months. In 1976 had an ugly 75 Eldorodo had to take care of once every other week. I assume it sold. They had a couple left over Oldsmobiles too. Worked in District office for Subaru before going to work in another career.
Great video. This is the first I heard this. It makes sense. We appreciate it!! 🖐🖐👍
Your One Smart Guy!👍
Is The Golden Rule When
Looking At A New Car To Buy
To Always Knock Off At Least
$2000 Off The Sticker Price?
Or Should U Knock Off More $
BigDave From Chi-Town! (Chicago!)
*You're
The more expensive the vehicle the bigger the markups. On a cheap car that might sell for $15,000 there might be only a $1000 markup.
I also feel that some new cars that sit for a while suddenly just get sold to fleets like car rental companies or even become loaner cars for said dealership
We would add pinstripes & a set of custom wheels - park it inside the lobby ...... and it would be gone in a week at the original asking price - because we would convince the buyers that the upgrades were no extra cost to them.... works with motorcycles too.
Dealers do not want to set a precedence by selling cars at a low price to normal people.
Thank you! What's the oldest new car you have?
As the old saying goes, for every seat there's a arse to fill it.
Never owned a new car.... Never been screwed. Thank you.
they are junk
You can get screwed on the purchase of a used car too...tens of thousands have.
@@a.jennings4664 Maybe YOU but not me...
12/2007, I bought a NEW 2005 Chrysler ONLINE with msrp of $28,890 for $15,490. PA to FL delivery was $490. Still driving it...
In 87 my father bought an brand new 86 ford taurus from the a dealership for a significant discount. Funny thing was the only difference with the 86 and 86 were the headlights and taillights.
This is awesome 👏 Iv sold plenty of cars 🚗 and understand this video 😁 it’s good
I once bought a Nissan Altima that was 1 year old but still brand new at the dealership. And 3 months later I traded it in for something else because the car sucked!
lol
@Hoinyack Yates Let me take a guess..if it's 2009 or newer, CVT transmission. 2000 to 2007 -08 have problems with head gaskets.
May be why an entire shipload burned this year. Guess who the insurance companies will raise their rates to to pay for the ship & cars they had to compensate Nissan for?
Hoinyack Yates The seats were unbearably uncomfortable . The car literally had no bells and whistles. Also, the sales guy told me that the car had side airbags but it really did not. This was back in 2008. I bought a 2007 Altima.
LOL. Like a car salesman is that "honest" that he'll give you a GREAT deal on a supposed oldest new car in the inventory. He/she will still try to get the maximum price on top of the highest commission.
Actually, I wouldn't give a damn what we sold that oldest car for. All I wanted to do is sell it at whatever cost because the bonus money attached to that car was far greater than some mini deal on a fresh car.
I always brought a new truck (Ford) from a dealer with a Fleet Manager, he gives you one price, you buy or don't buy, and have your own financing. You deal with a sale person, it's takes 4 hours to buy a new car, and you get tired of saying, I'm not paying that. And he say I'll go talk to my boss, and I say no, I'll talk to your boss.
I worked at a dealer that used the push/pull idea. As part of the car pack, either new or used, there was x amount of dollars that was allocated for the oldest vehicle which would benefit by lowering the cost of money in that vehicle.
The last week of 2019 I bought two 2019 Chevy silverados for my business. The sticker price was 46K on each. I bought two of them for 33K apiece. I knew, in a week these will be seen as a year old. They want them off the lot. I made the offer and told the salesman. Do the thing where you go talk to the manager but when you come back say one of two words. Yes or No. He was gone about a half hour came back and all he said was yes.
I will remember this if I am ever again in a position to buy a new car. Thank you.
Slap a bonus on it at the Monday morning sales meeting and it’s gone by Saturday 7:00pm! For sure😘
The term is SPIFFS.
Yup....that car has a target on it's back and they almost always go. Why take a $150 mini when you can get a $500 flat.
🤔I preferred Spins from the manufacturer no spoon fed favorites.SPIFFS implies multiple bonuses on multiple automobiles, we’re talking about one vehicle here. Usually a high mileage demo driven by a Sales Mangler, Managing Partner, GM, Head of Finance, Ownership and their family members.
@@paulspearman8072 Spiffs were great back in the day. Sometimes they'd be potentially worth $2000. Towards the end of my time though they would only be $150-250. That's nice but not like it was. The money was also on the card immediately.
Tom Board I don’t know what on the card means🤷🏾♂️ I do know manufacturers cash didn’t count against your draw😉 Dealers always takes $’s from Sales Manglers and Finance folks and they could get fired for making too much money 🤔...and then sales drop and they wanna blame everyone else. They’re the decision maker that fucks up the chemistry between the sales floor, sales management, finance dept, detail shop and service.
And all this time I thought it was the Car Fairy....well, I seem to have magical thinking every time I go to the dealership...
I’ve also seen dealerships “trade” between themselves. I had a very specific set of requirements for a new Jeep Wrangler. It had to be a specific color that was rare and also it was the last year of it. I had options I was adamant about. My salesman found a dealer a few hundred miles away and traded one they had in stock for the one I wanted. Best Jeep I’ve ever had so far.
Happens all the time. They place their orders from the manufacturer based on (somewhat) educated guesses about what will be popular in their particular market. But they can't order every possible feature/option/color combination. So when a customer comes in with a specific set of requirements, they'll try to find it at another dealership and either buy it from that dealership or trade something out of their own stock for it. Happens every day.
Absolutely I worked for a company that did the body work/recondition on Manheim Auction cars.