Scotty Kilmer should make an appearance on these types of calls. Caller: I want to buy a used Mercedes. Dave: How much is it? Can you afford it? Scotty: That car is an endless money pit.
Scotty: RELIABILITY. Dave: Financial Sensibility. Dave gives financial advice while appreciating different types of automobiles. Scotty on the other hand shuns every car aside from a couple of Toyota and Lexus models and doesn't think life's worth living.
If you're broke you shouldn't even be focused on what kind of car you get, just focus on basic transportation. Everyone is too wrapped up into what kind of car they have when they should be worried about putting some money in the bank.
Sensible Mind u need to be focussed on what type vehicle u need a buy if u need a vehicle esp if U want to buy a used car. U want to buy something that last not just by how many times someone used it because of the brand /model. Because some even though passes inspection but still can break down months after purchase.
Our last 3 cars were used Toyota Corolla's ...reliability, and great on gas. We drive them til the wheels fall off. Yup, be humble. We know everyone is buying SuV's and large trucks, but we are content with used 4 door sedans. That way we can put money in 401k and our savings.
Right! I was just surprised at how patient he was with her. I would like to know what time of day it was, what day of the week it was that she called? Hmm
I'm a car salesman and if you listen to what most sites say about not telling the sales guy about paying cash or other things honestly your just going to cause yourself much MUCH more headaches. What Dave is saying is actually really good just be upfront and honest with them. Know what it's worth and give a price you want to pay and don't budge. Go to at least two dealerships and let them know that the dealership who gives you the price you want to pay first will earn your business. Older in stock vehicles have more wiggle room. Vehicles they took on trade probably have more wiggle room on them.
Linear regression models are a great way to value a vehicle. Take a particular make, model, trim, year, etc to standardize and use miles as the x variable and cost as the y variable. What you do is research local dealerships for that car, see how many miles the car has and how much they’re selling it for, use that to create a regression model. Try to get at least 10 dat points. You’ll get a formula resembling y=mx+b, where x is the number of miles. If you find that car at a dealership, you can plug the number of miles into that formula and it will estimate how much the car is worth. Keep in mind that you need to pay attention to the R^2 value. If it is less than 0.7, the model might not be strong. However, if you only input data for the same make, model, trim, year, no previous wrecks, etc, then miles will likely explain 70-90% of the variation and give you a reliable estimate.
There is a perfect time of the year to buy a car. Try December. Sales are slow through the holidays and dealers are more willing to actually take a loss than having to carry that old inventory into the new year. The last week in December is perfect. Do not wait until after the first of the year. That is when dealers are looking at their busiest time, tax season.
And don't buy extended warranty get a good mechanical inspection at a garage of your choice or have a mechanical Uncle or friend go with you when you buy the car. That extra $300-$200 will be your peace of mind
sidharth chand Why? I bought a warranty for $800 and within 6 months my AC went out (used car) they replaced everything. $2000 job for $800, I'll take it
Most vehicles will go well past 100,000 miles with very few problems. Extended warranties are normally a waste of money. If it bothers you not having a warranty then don't buy an overpriced one at the dealership. You can save 2/3 by buying one from outside sources.
Kelly Blue Book is a GUIDE. Banks loan money based on NADA Retail. NADA Retail is typically NOT a baseline for a vehicle. You're looking for a market price. The only "Book" that buys a vehicle is a check book. Do NOT swear by websites. If you use KBB to buy a vehicle you will lose, every time. PLEASE DO NOT SUPPORT AUTO BROKERS. THEY WILL NOT SAVE YOU MONEY. (You are paying for convenience, not a great price)
@@elmateo77 I have been in business for more than 15 years and I am by the book and I have many repeat customers, if I have to say so myself. I am and have been doing something right. Look up the percentage of private businesses that make it for 15 years plus. I do what I say I am going to do honestly!
You've saved 30,000$ and the first thing you want to do is buy a truck that's going to depreciate every year?! Buy an 08-09 and walk out with the other 15,000 in your pocket!
Finance it and build credit . . . man, everyone here should be doubled over laughing after reading that. Hey everyone, this guy still thinks building credit is a GOOD thing! Bought any WHOLE LIFE insurance lately, Stormtrooper?
lovethemflowers Agree good credit I think is BS, I have good credit and never get any great discounts for it...maybe my auto insurance. I have a cc but not because I want to build good credit
Find a good mechanic prior to purchasing a used vehicle and have them inspect it! Do not trust certified vehicles; once you buy it, it’s yours with all known and unknown faults. Many learn this the hard way!
I remember when I purchased my preowned 13 toyota tundra. I went to several different dealerships and every time I brought up the fact I was paying cash every salesmen and floor manager always told me cash is no longer king. It makes sense, loans make them way more money. Sometimes cashs only leverage is the fact that you are serious about buying the car outright without having to go through hoops and hurdles to get a loan with them.
We got a steal of a deal at a dealership with cash a you years ago. It depends on how desperate they are to get sales and how long the car has been on the lot. The deal we found came from a business that was wholesaling commercial vehicles to other dealerships. They randomly got a minivan in their stock, And they didn't know what to do with it. We came in, waved cash in their face, and paid thousands less than it was worth to relieve them of this vehicle they didn't know what to do with. Depends on the situation and how desperate the dealers are to make a sale.
Cash is no longer king? Yeah, not to them, but who are we looking out for here, them, or ourselves?? My response to those salesmen and floor manager would be, "It STILL is from MY perspective!
if a dealership doesnt want to take cash from you, and your deep into negotiating...simply stand up...and begin to walk out. Nothing feels better to me than wasting someone (on commission) else's time.
It is true. Walking in with cash isn't going to get you a discount every time. They make their money off financing more than the price tag on the vehicle.
My buddy from college used to be a Ford salesman and told me he always bought his new cars at the invoice price, what Dave is calling wholesale. He said that the manufacturer offers the salesmen bonuses for every X number of cars they sell. So, even if they make no commission, they are sometimes willing to sell the car at no gain. He claimed you’d have to drive to a few dealerships before one would bite, but there’s always a salesman who is a car or two short of his numbers and is willing to make that bonus in 15 minutes.
I wish I would’ve found Dave back in April before getting a car loan. I guess making mistakes is what makes you look for help. Currently working on step 2.
One tip if you have the cash to buy outright, instead of doing so buy it on finance and then pay the finance off in full before the month is up. Dealer can sell the car cheaper because he gets commission from the finance sale, and you can pay it off and not pay any interest on the loan. Just watch out for early settlement fees, make sure there isn't a penalty.
working shlub yeah that sounds about right. My brother used to be a car salesman, and had to meet a quota every month, and every I think 5th of the month, he'd give anyone interested a descent discount just to meet the quota.
If you show up 15 minutes until closing you won't get waited on in a lot of places. We don't get paid by the hour and we work too many hours to stay late for what an average commission is nowadays. If you can't get customers during your working hours you need to make more phone calls.
@Miggz 1Bay Usually takes longer than 30 mins to buy a car. If you show up that close to closing time you're not buying a car. I bought a Jeep yesterday and it took about 5 hours. And I said no about 6 times and went to McDonald's in the middle of it.
I knew a guy who worked at a car dealership. He said that they didn't like it when people paid cash because it meant that they wouldn't make any commission on the sale of the car's financing, also known as "making money on the back end."
One other thing to consider when buying used is that a lot of repair places, will when they are not busy let you take one of their people for a few and go have them check out the car you are looking at for wear tear and potential issues.
Certified Pre-Owned (CPO) is sometimes another gimmick to get more money out of people. I worked at a huge dealership as a lot attendant, and I observed the guys in the used lot section, do what appeared to be a five minute inspection and label a car as a CPO. I personally drove that car to move it on the lot, and it was gross (scratches, dents interior had issues, key fob was sticky etc.) inside and out. There were much nicer non-CPO cars on the lot. So don't let the eye candy fool you. This is not to say this is true for every CPO car. If you are still not sure about a used car, take it to a trusted mechanic and spend the $50-100 to have them look it over. I would feel better about spending a $100 to know that i saved myself from a $1000 repair bill buying a bad car.
It is just a way to break the ice & start a conversation. People do it all the time asking " hey, how are you doing", when in reality they don't even care what the answer is.
I agree with all this, but I think you should take more time and go to other dealerships and let them know you're interested in another one, but are willing to change if they can beat the price. Do this a few times until the car sales people stop taking significant money off the price.
And Craigslist is not even the only website you can go on. There are other websites where people post cars for sale. ChrisFix talks about some options. His channel is amazing.
@@michaelh5055mechanics have fancy scan tools. It will report engine and transmission problems. Body control module reports other problems. ABS and TRACtion control problems. They know what certain noises mean. Clacking of valves, roaring of wheel bearings, noises during shifts, weak no reverse may indicate a worn out transmission. -Scotty Kilmer
If it's a truck and it doesn't have mud under it you probably found yourself a good one. Believe it or not some people buy trucks and never take them off the pavement. That is the kind of used truck you want.
usually an older retired gentleman that wanted a nice truck. Have bought several awesome low mileage trucks that were 4 years old and like brand new. They are out there!
Thank you for explaining this! I've never truly known what I'm doing but this is a step by step how to get a deal. Now I'm not afraid to buy a used car.
Pretty good advice, but I think it applies more for regular people cars only. If you spent 50k on a used Aston Martin you'd definitely want the warranty to pay for any potential problems. High price cars always have high price repairs even if the price you paid for the entire car was cheap.
If you're having to spend 2k into fixing a car worth 3k you're probably going to be looking at spending more money down the road or you can find that car that's at the same condition as your 3k with 2k repairs for less than 5k.
Thank you so much Dave Ramsey! You've enlightened me when it comes to buying a used car compare to a brand new one. God bless you and wishing more success to your show!
Walking into any dealer and saying, “look, its a done deal and I will write you a check right now for that car over there but you’re asking too much for it” will immediately get a reaction of “NO” because dealerships don’t accept personal checks on the spot and let you drive away.
Fatlind Bytyqi car dealers that are illegally selling cars posing as private owners. They have a license to buy cars at auction, but can’t sell more than three cars legally. They try to avoid regulations but in real dealers.
Fatlind Bytyqi curb stoners are dishonest dealers that pose as private individuals. They are licensed to buy at auctions, but are not licensed like a real used car dealership.
@@wldktz1 Yeah, so many scumbags posing as the car's "owner". Disgraceful. I always ask "I'm interested in the car you have for sale online". Most of these curb stoners say "Which car?," "I have two posted," etc. I just hang up. That's a dead give-away that they're dealers. Lol.
So I know this is 7 years old and we’re still in a super seller’s market… some signs saying prices on used cars going down but… I wonder how dealerships are responding to the check on the table thing right now? Like I’d REALLY wanna do that but curious if anyone here has done it in the last couple months?
Buy a 20k used toyota tundra and put the $10k in a separate savings account. Toyota tundra is a great truck. At 100k miles they are barely getting started.
Justin Russell They are great trucks I just sold mine. Mechanically they are close to perfect. Toyota’s downfall is rust and rot. The Tacoma and Tundras especially are known for rust and rot even if you take care of them especially in the salt belt states. If this is not an issue then you’re golden probably best truck to own....
I've always bought trucks with about 80k to 150k miles, from individuals. While it's not a scientific sample I've never had any major problems and got years of service from these vehicles. I research the make and model to see how it's type has held up over the years. I avoid 4 wheel drive and don't care about light body damage or if the bells and whistles are still working.
umm when you use them for your business they are !! ex . trucks for hauling or luxury cars for real estate agents driving clients to different showings
A lot of the house priced limited edition cars are sound investments. If you are willing to spend 1 million dollars in 2014 to buy a Ferrari Laferrari they are now worth 4 million
Definitely don't want to tell them you're paying cash, new or used. They will always drop the price and get you in the financing if that's what it takes to close. Let them go through their whole 4 square, this much down, this much a month BS if that gets you to where you need to be. The biggest thing about buying a used car specifically, is patience. Find what you want for the right price. Also with Carfax and the like, there is no need to avoid private sellers. Just try to find a one owner garaged vehicle that was owned by someone at least 30. Check the nooks around the trunk really well. Detailers can make just about any car look garaged these days. If you care more about your purchase than the person did about cleaning, then you should be alright.
Seasonally, the only time not to buy a vehicle is buying a convertible before summer and buying a four-wheel drive vehicle for the winter. Best to wait until after the season is over.
On top of the comprehensive limited warranty coverage, they include seven-year/100,000-mile powertrain limited warranty coverage with every Ford Certified Pre-Owned vehicle.* It covers the engine, transmission and more: Transferable to future owners at no extra cost The big + for certified pre-owned is extra PT warranty, instead of the standard 5yr/60,000m PT . Certification is not free, so you will pay a few hundred more, WORTH IT !
Take it to an independent body shop and have them look it over for prior collision work. Pay them for their time and have reassurance the thing is not pieced back together.
m ph late response, but the carfax can also tell you that without you having to go through the effort of seeing a mechanic. Even if carfax isn't perfect, i believe it's good enough
10 yrs in the car biz. Never buy from a dealer Period. Do your research , buy from a private seller with cash. And hold the money on you hand as you make a low offer and put the money in your pocket as you walk away saying there are several others in this price range. Lemme think about it. Actual stacks of bills in front of someones face moves mountains. If they wont move on price , say well , nobody has bought it at this price , so far maybe a bird in the hand........ Im right here with money
All dealers are there to make money. All dealers will never, ever sell below what they purchased a vehicle for. Ever. If they do, do you think they would be in business long?
Sometime dealers sell lower than they paid. If they can get the money on the front end or they made more money on another vehicle and they need to move that unit to roll over thier investment. sometimes losses are gains.
They will for a car that nobody is buying because it ends up costing them money to keep it on the lot. That's why I buy old cars from dealers because I can get them really cheap and usually work has already been put into it.
I got lucky on my 2015 RDX (basically brand new as in, no registered owner). Haggled for about 2 hours and made a cash deal. They then physically messed up the vehicle on the day I was supposed to pick it up and I snapped. They then offered me another RDX, same model but 10k less KM on it (~7,000 km). Haggled more, and they ended up bringing the price down $7,000 and threw in 3 free oil changes.
in order to negotiate prices you have to be willing to walk away. Whoever is the most willing to loose the deal all together is the one with the power.
@@mcopeland05 Job, relationship, purchasing anything - makes no difference - be willing to walk away and not look back if you're not getting what you want or deserve.
I'm trying to save enough for the car I want new and get it wrapped to protect the finish and rust proof the bottom then never get another car in my life.
I did that with my last vehicle, found it on internet searches. Had signed up for sites to contact me. I went and spent some quality time at a place like AutoMax who knew I wouldn't be buying but helped me decide on the vehicle. I'm sure this is in hopes I couldn't find locally and they'd source. I knew all about the vehicle, it was a trade in at another brand dealer. I called another dealer w/ same brand and asked for a review of the vehicle which they checked over the phone....Lexus keeps good records. Selling dealer had it 4 months. I drove to another town where that car isn't so popular and they were having a hard time selling it. Then I looked closer and added in the things they had to fix. He gave me a price and then added what it would be if I financed it as if he was giving me a good deal and assuming I would (I was dressed down). I said I'd write a check for the original amount and said I'd wait the two hours for the repair items. The manager tried to talk me out of deal and financing taking all my savings......blah, blah, blah. Where I live there is a wait list on rental cars at Enterprise, they come certified, same as a dealer, worth checking. I think they also buy. It really pays to do your homework, took me about a month to find the car an hour away.
I used to be into this old used car mentality until mechanical problems. Buy a fairly new car you can manage save yourself the money of buying parts and mechanic labor cost
Dave advises this to get people out of a mountain of debt.Then gradually get better cars as time goes by.But,your car should never be more than 1/2 your annual income.
Never pay MSRP price because it is marked up. Do a true car check to find out what a good price is. Yes dealers want to make money in the beginning of the month they may be less willing to deal and so the end of the month is a better time to negotiate. Also buying at the end of a year is great way to get a better deal because the dealer may want to get rid of it to make room for the newer year cars to come in. Most customers need to understand that salesman and sales managers are master negotiators so they know what they are doing so be prepared u r entering their boxing ring. The bottom line is they are their to make a profit just like any business. If you do not like the negotiating process do not be afraid to leave ok but most sales personnel will want u to not leave and go get their manager and keep u their longer to test your patience. Last, they will let u take it home for a night in hopes u will fall in love with it and be willing to put more money down and be more flexible with your payments. Salesmen are not your friends they are there to make money and their are good ones out there.
KBB seems to be really good if you are buying from an individual, but I agree all car lots and finance institutions will use NADA. KBB is based on similar sales in your area. so they even include the ones that look like they drove through a crowd of hammer wielding clowns, while NADA just takes a general depreciation of the value based on mileage and other factors that will devalue a vehicle.
Im a mechanic so now i look at vehicles as a drivetrain shell. Im about to buy a lemon car for 2000 because its extremely clean, i have the money for a remanufactured engine and or transmission or could tear down and rebuild the engine and transmission because its reliable and simple. it does not matter to mechanics if the parts exceed value because the value is in the miles it travels and if thw added mileage on the drivetrain shell can be used to make money and incorporate the fuel costs and there you go. you can calculate the rwpair, miles to be driven and i used to hot shot drive so you can turn the added mileage on the drivetrain shell to a return on investment actually. at the end i can sell it for a small recouperation. basically thats a bonus of being a mechanic.
It's funny that he says he wouldn't want a car that had been a rental. If you go to a dealership, there is a very high chance that you are getting formal rental cars. Once they hit a certain mileage point, they typically sell them to dealerships. I know this because my husband worked at a dealership and because I worked at a credit union where we worked with rental car companies and dealerships for financing. We have had several vehicles that had instant equity in them from state auctions. They are very meticulous about getting all repairs done/regular and required maintenance. Other good deals have come from dealerships and private party, but we always knew who had driven them before us. We are very picky about previous owners. He's right that you have to be willing to walk away from a deal to get the best deal.
The Construction Guys Office You are right. When I sold cars the dealership got the rentals for a good price and had a high markup. Dealerships make money off rentals and that is why I tell people to always ask to see the invoice and let them know that you are serious about buying. Negotiate a price that is fair for the dealer to make its money and you don't get ripped off.
I live in central Florida, rental car capital of the US - I wouldn't buy a rental from here. Disney trips generally are short cycle, much mixed driving (some highway, some stop and go) and many cars get romped on by the tourists. I just rented a 2018 Camry with 11k miles on it plated from VA that smelled like B.O. when the interior got hot. You just never know who is driving these things...
I understand where Dave comes from and his reasoning, but the one thing I feel he leaves out of the equation is enjoyment. What's the point of going to work every day if you can't splurge on a few luxuries? We have a comfortable life with a few bills, but we bought a $55,000 car at 0% interest. Every single morning I look forward to driving it to work. It gives me immense pleasure. Yes, I have debt, but it gave me so much happiness. If I fall over dead tomorrow, at least I had an enjoyable life.
@@phannypack3951 And I will live my life enjoying myself and my new cars. What does it matter? I may not be a millionaire, but what good does it do to save for the future if you get sick and die at 40? You scrimp and live without any extras, but never reap the rewards.
Don't tread on me True. So why not buy a nice car that you’d enjoy driving (granted that you are financially equipped )in between living well and dying?
I would go about it slightly different I would never tell them I am paying cash, the dealer makes 1000 plus on bank reserve I would lead them to think I could be financing it , maybe buying the warranty they make money on this also and then the dealer might not try and get all his profit on the sale. Have an independant shop inspect it before signing a binding contract and be prepared to walk away if your conditions are not met. Be careful on private sales and always look up the service history or previous owner and check that information if you can. Otherwise buy a new car and shop the internet dont buy rust proofing and warranty you can do that after the sale on a new vehicle .
First thing you want to do when buying a used car is check the DIP STICK to the oil in the motor have a napkin with you first pull out the DIP STICK and wipe it clean then actually look at the DIP STICK it's self if the DIP STICK is nice and shinny from one end to the other than you will know if the oil was changed on time ....... NOW if you see the DIP STICK with burnt brown marks up and down the DIP STICK even in the middle of the DIP STICK......... Then shut the hood and RUN!!! This means that they NEVER changed the oil on time I hope THIS helps all of you
@@dchawk81 lol just trying to help but yes very funny I probably just warned every used car dealership to make sure they replace all of there burnt dipsticks
Right? The reason why you dont say your paying with cash is because they will go up on the price to make up for the difference in interest that they won't get from financing.
If you want a steal definitely go try finding an individual I found my girl a 2009 toyata Camry with 90,000 miles on it for 6,200 good engine, good tires, we just did all the fluids and fixed the water pump and added new breaks and it’s runs smooth plus my uncle is a mechanic and checked out the car too if the car was somewhat taken care of especially a Honda or Toyota that’s the way to go
This is inaccurate information he is giving her. Dealerships make more money on used cars than new. I was in the car business and I could give her better advice. What she needs to do is ask the dealership to see the invoice for what they own it for and negotiate from there to prevent the back and forth and allow the dealer to make money and get a good deal as well. The dealership is not going to lose money because you saw a price on Kelly Blue Book which is not even looking at the car to see things that may cause the car to be worth less.
For used cars, I would do my research first to see if a particular car you're looking at is a good choice because usually, the cheapest car is not always a good choice. Kelly Blue Book and Consumer Reports are always good sources. Also, unless you have the income to actually afford it or willing to invest in it, avoid buying European cars as used because of high maintenance and the reliability on many European cars are questionable.
Factory certified does have to meet certain criteria to be able to have the tag. The only “certified” that means anything are factory certified ie Toyota certified, Honda certified etc they have to meet certain and usually strict cosmetic and mechanical criteria and come with a factory backed warranty. IMO more money than it’s worth but it does actually carry some weight to it. Dealer certified is a joke.
I have an 06 Camry that's at 130k miles and it's had 0 mechanical problems. The only advantage to newer cars is aesthetics/features/performance and safety, which is a pretty big deal in my opinion. Newer cars have incredible safety features
I use to work at ADESA auto auction which is where quite a few used cars come from now days to dealrt "Certified pre-owned " is just a sticker, there was no special inspection or maintenance that was done, the vehicle would come in get detailed by individuals of questionable green card status THEN the STICKER CERTIFIED PRE-OWNED (of course it is used) then inspected for dents and dings which was then annotated on paper for the auctioneer driven over and parked until auction day.
I know this video is 4 yrs old but, Do not buy the eco boost. My cousin has one & said it gets no better mileage than the v8 but has more stuff to break ( turbo, etc ) buy the v8.
Ask if it comes with an owner's manual? In Canada: ask if it comes with a block heater, those are add-ons, some don't come with block heaters which are necessary in Canada.
Dealerships make more money on used vehicles than new vehicles. The information regarding this provided is inaccurate. The reason being is the dealer can buy from auction for cheap where as new cars dealerships will have to price the vehicle close the to MSRP (of course it will be on the higher end). Dealerships also make a commission on financing and would prefer rather than cash.
Certified used? Scotty Kilmer a mechanic with 50 years experience (also on TH-cam) says that term means absolutely nothing. Before you buy any used vehicle get it checked out by an independent mechanic.
Hamilton Asseiro lol I just watched that video and his example of “certified used” was a 15yo Celica... the only thing “certified” about that is that it is USED. To laypeople “certified” used means less than 5yrs old, less than 60k and still eligible for factory warranty and close to new car finance terms. As for all the other fluff(ie 1 owner, 300pt inspection, no accidents, etc) I agree with him that you can never trust a dealer as far you can throw them. The certified used I’m trying to buy is essentially a new car without all the depreciation the moment you drive it off the lot(but still more to go as any car that you actually drive is gonna depreciate). His example was a car that was already at max depreciation and comparing what you’d pay on Craigslist($900) to a new car dealer($6500).
Dave's advice is solid. What's not believable, or maybe just a waste of time, is him going to buy a vehicle himself. And wasting precious time talking to somebody. When you have that much money, you have people doing that for you. When you have that much money, you don't waste time, which is precious, on haggling or doing some things yourself. You can't buy more time.
I am a huge fan of Dave and what he teaches. These are some quite good principles to live by. I do work in auto sales and the idea of a 2k car that would be worth buying is about 15 years out of date.
SAAN27 2-3k the first year or two? Sure. Any used vehicle at that price will definitely need repairs. 2-3k every year? Haha, not if the vehicle is taken care of after the initial repairs. If you're paying 2-3k per year just on repairs, then you have either 1). bought a "lemon"/an extremely unreliable vehicle or 2). you are abusing the vehicle and using it for things it wasn't designed to do....
I paid $2500 for an ‘06 Chevy at an auction. That was four years ago. Still no major repairs and a few months ago I started doing Lyft/Uber with it LOL in two months, I made all my money back and can still use it for rideshare for six more months Lyft and 2 1/2 years with Uber. I love our neighborhood auto auctions!
I bought a 93 f150 with the legendary durable inline 6 for $1000 nice body, good interior and all I wanted. Bad engine and tranny threw a new tranny (3ry warranty) and rebuilt the engine myself for $600. Probably spent around $3600~$4000 including new tires, front end, brakes, fluids, rear end, interior, creature comforts. It's been a few years already I haven't spent a dime on anything major only regular maintenance. It has already paid of its self many times over.
I bought 3 beaters and each broke down within 6 months. 1st one (Ford ka 2001 250.000 KMs) in 4 months , 2nd one (Toyota starlet 1998, 150.000 KMs) in 5 months and 3rd (Peugot 206 silver 2003, 250.000 KMs) in 1 month. Granted, the 1st and 2nd I didn't know how to inspect cars and I didn't know the guy selling it. But 3rd was from a "well known, reliable dealer" + I had it being checked out by an independent mechanic. And the cars were all below 2K euro. Each 3 cars' engine broke down with costs going well above the purchase value. I don't want a fancy car, just want a car that runs and takes me from A to B... but doing the math, currently leasing is cheaper per month for me then buying used cars. Am I doing something wrong? Do I need to buy in a different price range, try different mechanics or am I just very unlucky? I don't want to lease since dave says its most expensive but if a car breaks down in a lease, I don't have to fix it up.
You're buying cars with too many miles on it. Look at the manual. After 100k miles what ever that is in km, there are some major maintenance things that need to be attended to. Id be buying used with somewhere between 50k to 70k miles.
You can generally tell if the car has actual "highway miles" because it will be high mileage for it's age. If it has on averaged 10k-15k a year, it don't have that many highway miles. If it was driven >20k miles a year, then it most likely has highway miles, as long as it wasn't used as a courier car.
Why not buy a used vehicle from an individual? Take it to a trusted mechanic and make sure it is in good condition, then compare that to a Dealer price of a comparable vehicle. Most of the time you can save a few hundred to a couple thousand...
"if is FORD, you don't have to worry about:" I laughed my as$ on that one hahaha! First, mistake you made that buying a Ford. That is a bad financial decision.
Me too! I laughed at my friend when she bought a used Ford truck. She's had it less than a year and it's broke down twice. We have a 1997 Chevy Astro van with 220,000 miles on it. We've had it for 7 years and it hasn't broke down once.
Tried to work a dealership down with cash and they didn’t bat an eye. They didn’t care so don’t be surprised if they don’t negotiate on that aspect. Smaller dealerships may like the cash buy.
Not true! Here in Colorado they have a Jeep dealership and have had this 08 Escalade black Awd. They now had it for like 2 Years now, but the Car most def needs work, new tires, wheels, New Side mirrors Left and right, Left Tail Light Broke, and needs new windshield And they last owner said Trans is going out, and needs 2 motor Mounts. I know the guy who traded it in.... They gave him $16k for it with 152k on it. I don't understand why they just keeping it in they back lot soooo Long! THEY STEADY POSTING IT ON CL, and never have a price last time i went up there they said $15,000- $16,000 I said gtfoh you are not going to sale this Lac, if you was a Whole Seller would of been bought it from you guys... Dealerships make BANK! Idk why they wont just fix it and idk why they still keep it in they back lot, Link of it right here if you think im Lying! denver.craigslist.org/ctd/5682770164.html
Cam Mims You kinda prove his other point tho. Don't get wedded to a particular car. That dealer is obviously not moving on that one. You won't always get the deal you think YOU should. Move on to the next truck.
Buy at auction. Paid $3500 for my Crown Vic ex cop car. Had 64k miles on it...now has over 100k and I've only changed the fluids and front brakes/rotors. Paid cash for the car. It's not sexy by any means but I don't have a 500 per month car payment either.
An important thing he mentions is "Don't get married to a particular vehicle". They're like buses: Another one comes along every half hour.
lol
I waited years for my bus. I wanted a rare manual transmission and wouldn't buy new. Patience paid off for me.
Just like women. 😂😂😂
@_ David _ Nissan leaf
Yes. Even if you want a particular model, there's usually plenty out there of them.
Scotty Kilmer should make an appearance on these types of calls.
Caller: I want to buy a used Mercedes.
Dave: How much is it? Can you afford it?
Scotty: That car is an endless money pit.
Definitely
Scotty Ramsay
Scotty: RELIABILITY. Dave: Financial Sensibility.
Dave gives financial advice while appreciating different types of automobiles. Scotty on the other hand shuns every car aside from a couple of Toyota and Lexus models and doesn't think life's worth living.
Scotty probably would recommend a 94 celica 😂
If you're broke you shouldn't even be focused on what kind of car you get, just focus on basic transportation. Everyone is too wrapped up into what kind of car they have when they should be worried about putting some money in the bank.
Duane, Thanks for commenting and watching this video! Don't forget to subscribe! th-cam.com/users/DaveRamseyShow
If u buy some cars because they cheap, u ll end up spending more on troubles later
not bad advice but not applicable in her case.
Sensible Mind u need to be focussed on what type vehicle u need a buy if u need a vehicle esp if U want to buy a used car. U want to buy something that last not just by how many times someone used it because of the brand /model. Because some even though passes inspection but still can break down months after purchase.
Our last 3 cars were used Toyota Corolla's ...reliability, and great on gas. We drive them til the wheels fall off. Yup, be humble. We know everyone is buying SuV's and large trucks, but we are content with used 4 door sedans. That way we can put money in 401k and our savings.
walk in like you know what's going on and you not here to waste time. never let you guard down, don't get friendly, act like you don't like the truck
Think this must be the record for the highest number of questions asked in one call.
there is nothing wrong with milking as much information as possible.
@@RPE-Official Well, she said "One more question" not "One last question". LOL!
I can't believe he did not cut her off earier in the call and end it.
"um, just one more question..."
Right! I was just surprised at how patient he was with her. I would like to know what time of day it was, what day of the week it was that she called? Hmm
I'm a car salesman and if you listen to what most sites say about not telling the sales guy about paying cash or other things honestly your just going to cause yourself much MUCH more headaches. What Dave is saying is actually really good just be upfront and honest with them. Know what it's worth and give a price you want to pay and don't budge. Go to at least two dealerships and let them know that the dealership who gives you the price you want to pay first will earn your business. Older in stock vehicles have more wiggle room. Vehicles they took on trade probably have more wiggle room on them.
Dave is so wrong on this. Car dealer ships make all their money on used cars
Linear regression models are a great way to value a vehicle. Take a particular make, model, trim, year, etc to standardize and use miles as the x variable and cost as the y variable. What you do is research local dealerships for that car, see how many miles the car has and how much they’re selling it for, use that to create a regression model. Try to get at least 10 dat points. You’ll get a formula resembling y=mx+b, where x is the number of miles. If you find that car at a dealership, you can plug the number of miles into that formula and it will estimate how much the car is worth. Keep in mind that you need to pay attention to the R^2 value. If it is less than 0.7, the model might not be strong. However, if you only input data for the same make, model, trim, year, no previous wrecks, etc, then miles will likely explain 70-90% of the variation and give you a reliable estimate.
"certified" pre-owned is just an excuse for the dealer to charge more
amen brother
100%
Yes
...justifiably if the "certified" part is executed properly...
certified, i believe it’s used you don’t have to prove it 😂
There is a perfect time of the year to buy a car. Try December. Sales are slow through the holidays and dealers are more willing to actually take a loss than having to carry that old inventory into the new year. The last week in December is perfect. Do not wait until after the first of the year. That is when dealers are looking at their busiest time, tax season.
Cody Cole for a used car no. Did that once and March rolls around and find out that the AC isn’t working. I did fix it though.
Only applies for new cars being sold during their first year, not for used cars.
Cody Cole tax refund remorse.....smh
Actually car sales are hottest during that time. It's holiday season, Cody Dufus.
@@cashboy7406 somewhere around end of Aug? When the next years models are coming out...
And don't buy extended warranty get a good mechanical inspection at a garage of your choice or have a mechanical Uncle or friend go with you when you buy the car. That extra $300-$200 will be your peace of mind
sidharth chand Why? I bought a warranty for $800 and within 6 months my AC went out (used car) they replaced everything. $2000 job for $800, I'll take it
With today's complex engines and technology, always buy an extended warranty.
Most vehicles will go well past 100,000 miles with very few problems. Extended warranties are normally a waste of money. If it bothers you not having a warranty then don't buy an overpriced one at the dealership. You can save 2/3 by buying one from outside sources.
@@gcab1000 u still paid 800 after the purchase or 800 was the original purchase for the warranty?
@@MiguelMaxMusic Cost of the warranty was $800, cost of fixing my AC was $0.00.
Kelly Blue Book is a GUIDE. Banks loan money based on NADA Retail. NADA Retail is typically NOT a baseline for a vehicle. You're looking for a market price. The only "Book" that buys a vehicle is a check book. Do NOT swear by websites. If you use KBB to buy a vehicle you will lose, every time. PLEASE DO NOT SUPPORT AUTO BROKERS. THEY WILL NOT SAVE YOU MONEY. (You are paying for convenience, not a great price)
I am an Auto Broker and I promise you I save them money.
Nathan Hays NADA is the baseline that insurance companies use to replace totaled vehicles
@@MrJM-zr1hk That sounds like something an auto broker would say...
@@elmateo77 I have been in business for more than 15 years and I am by the book and I have many repeat customers, if I have to say so myself. I am and have been doing something right. Look up the percentage of private businesses that make it for 15 years plus. I do what I say I am going to do honestly!
@@MrJM-zr1hk good for you man, glad there's at least 1 of you
You've saved 30,000$ and the first thing you want to do is buy a truck that's going to depreciate every year?! Buy an 08-09 and walk out with the other 15,000 in your pocket!
Finance it and build credit . . . man, everyone here should be doubled over laughing after reading that. Hey everyone, this guy still thinks building credit is a GOOD thing! Bought any WHOLE LIFE insurance lately, Stormtrooper?
lovethemflowers Agree good credit I think is BS, I have good credit and never get any great discounts for it...maybe my auto insurance. I have a cc but not because I want to build good credit
Storm Trooper Here is the thing as long as you show your pretty much debt free and have steady good income you will get a good interest rate
If she wants new car smell she can buy perfume which I am selling for 5.99
Ali Sakran she said she saved 30k FOR a car. not just saved all together
Certified pre-owned usually means an extended warranty on the vehicle raising the cost a couple grand.
Find a good mechanic prior to purchasing a used vehicle and have them inspect it!
Do not trust certified vehicles; once you buy it, it’s yours with all known and unknown faults. Many learn this the hard way!
How about a pre purchase inspection by bringing to dealership or a mechanic shop??
I remember when I purchased my preowned 13 toyota tundra. I went to several different dealerships and every time I brought up the fact I was paying cash every salesmen and floor manager always told me cash is no longer king. It makes sense, loans make them way more money. Sometimes cashs only leverage is the fact that you are serious about buying the car outright without having to go through hoops and hurdles to get a loan with them.
Dealers make points on every car loan they sucker buyers into, either prime, subprime, or whatever...Cash doesnt help the dealership credit out.
We got a steal of a deal at a dealership with cash a you years ago. It depends on how desperate they are to get sales and how long the car has been on the lot. The deal we found came from a business that was wholesaling commercial vehicles to other dealerships. They randomly got a minivan in their stock, And they didn't know what to do with it. We came in, waved cash in their face, and paid thousands less than it was worth to relieve them of this vehicle they didn't know what to do with. Depends on the situation and how desperate the dealers are to make a sale.
Cash is no longer king? Yeah, not to them, but who are we looking out for here, them, or ourselves?? My response to those salesmen and floor manager would be, "It STILL is from MY perspective!
if a dealership doesnt want to take cash from you, and your deep into negotiating...simply stand up...and begin to walk out. Nothing feels better to me than wasting someone (on commission) else's time.
It is true. Walking in with cash isn't going to get you a discount every time. They make their money off financing more than the price tag on the vehicle.
My buddy from college used to be a Ford salesman and told me he always bought his new cars at the invoice price, what Dave is calling wholesale. He said that the manufacturer offers the salesmen bonuses for every X number of cars they sell. So, even if they make no commission, they are sometimes willing to sell the car at no gain. He claimed you’d have to drive to a few dealerships before one would bite, but there’s always a salesman who is a car or two short of his numbers and is willing to make that bonus in 15 minutes.
May I ask you how to find out the invoice price?
I wish I would’ve found Dave back in April before getting a car loan. I guess making mistakes is what makes you look for help. Currently working on step 2.
1994 toyota celica
its the only vehicle you'll ever need
iiisaac Scotty, go do your own videos, don't interrupt Daves....
iiisaac are you Scotty? Rev your engine up? Lol
LOL.....exactly!! 😂✌
REV UP YOUR ENGINES! 🤣
Yes... we love Scotty Kilmer. lol
One tip if you have the cash to buy outright, instead of doing so buy it on finance and then pay the finance off in full before the month is up. Dealer can sell the car cheaper because he gets commission from the finance sale, and you can pay it off and not pay any interest on the loan. Just watch out for early settlement fees, make sure there isn't a penalty.
always buy a car at the end of the day..the salesman want to close the deal and go home. they dont get paid by the hour.
working shlub yeah that sounds about right. My brother used to be a car salesman, and had to meet a quota every month, and every I think 5th of the month, he'd give anyone interested a descent discount just to meet the quota.
If you show up 15 minutes until closing you won't get waited on in a lot of places. We don't get paid by the hour and we work too many hours to stay late for what an average commission is nowadays. If you can't get customers during your working hours you need to make more phone calls.
@Miggz 1Bay Also, that's not about being lazy, it's about having self-respect.
@@jonmorton8792 People that show up to buy a car 30 minutes before closing are usually heavily lacking in such.
@Miggz 1Bay Usually takes longer than 30 mins to buy a car. If you show up that close to closing time you're not buying a car.
I bought a Jeep yesterday and it took about 5 hours. And I said no about 6 times and went to McDonald's in the middle of it.
I knew a guy who worked at a car dealership. He said that they didn't like it when people paid cash because it meant that they wouldn't make any commission on the sale of the car's financing, also known as "making money on the back end."
One other thing to consider when buying used is that a lot of repair places, will when they are not busy let you take one of their people for a few and go have them check out the car you are looking at for wear tear and potential issues.
Certified Pre-Owned (CPO) is sometimes another gimmick to get more money out of people. I worked at a huge dealership as a lot attendant, and I observed the guys in the used lot section, do what appeared to be a five minute inspection and label a car as a CPO. I personally drove that car to move it on the lot, and it was gross (scratches, dents interior had issues, key fob was sticky etc.) inside and out. There were much nicer non-CPO cars on the lot. So don't let the eye candy fool you. This is not to say this is true for every CPO car. If you are still not sure about a used car, take it to a trusted mechanic and spend the $50-100 to have them look it over. I would feel better about spending a $100 to know that i saved myself from a $1000 repair bill buying a bad car.
Every dealership is different. Try going to a professional one with quality people.
@@cashboy7406 if you find one, let everyone else know. They aren't real.
This is more common that people think. CPO cars are often on the lot within 30 minutes of trade in. Great advice on getting the car inspected.
Never understood why people bother asking Dave how he's doing.
So they can hear him say "Better than I deserve!"
Because Dave clearly values respect and it's respectful to ask someone how they're doing
It is just a way to break the ice & start a conversation. People do it all the time asking " hey, how are you doing", when in reality they don't even care what the answer is.
That's what I say now when people ask me how I'm doing, I reply "better than I deserve" after watching Dave ramsey videos
...perfunctory politeness...
I agree with all this, but I think you should take more time and go to other dealerships and let them know you're interested in another one, but are willing to change if they can beat the price. Do this a few times until the car sales people stop taking significant money off the price.
VEE-HICKLE! Love you, Dave :)
Watching Dave Ramsey? Can't you just photoshop a new car into existence?
I hear it so much I thought that's his your say it lol jk but I hear it all the time and it's sound better
Car dealerships ALWAYS ripped you off!
Stealership
Than where can u get a car from??
And Craigslist is not even the only website you can go on. There are other websites where people post cars for sale. ChrisFix talks about some options. His channel is amazing.
@@naturallyray3646Facebook or Craigslist.
ALWAYS HAVE A MECHANIC CHECK IT FIRST. NOT THE DEALER'S MECHANIC.
Exactly how do you do that??? Call a mechanic to meet you at the dealership???
@@KourttneyL Ask the dealer to let you take it to the mechanic. If he says no run away and never go back there.
An independent mechanic won't be much help unless the problem is very obvious.
@@michaelh5055mechanics have fancy scan tools. It will report engine and transmission problems. Body control module reports other problems. ABS and TRACtion control problems. They know what certain noises mean. Clacking of valves, roaring of wheel bearings, noises during shifts, weak no reverse may indicate a worn out transmission.
-Scotty Kilmer
Or avoid all these issues by getting a car that is certified pre-owned by the manufacturer.
If it's a truck and it doesn't have mud under it you probably found yourself a good one. Believe it or not some people buy trucks and never take them off the pavement. That is the kind of used truck you want.
Kyle Law
usually an older retired gentleman that wanted a nice truck. Have bought several awesome low mileage trucks that were 4 years old and like brand new. They are out there!
Thank you for explaining this! I've never truly known what I'm doing but this is a step by step how to get a deal. Now I'm not afraid to buy a used car.
Pretty good advice, but I think it applies more for regular people cars only. If you spent 50k on a used Aston Martin you'd definitely want the warranty to pay for any potential problems. High price cars always have high price repairs even if the price you paid for the entire car was cheap.
i figure i save up 5k buy a 3k car on CL and put the 2k on repairs and call it a day
MrMike95624 good tip. I will do this too
Airport Cinderella same!!!!
If you're having to spend 2k into fixing a car worth 3k you're probably going to be looking at spending more money down the road or you can find that car that's at the same condition as your 3k with 2k repairs for less than 5k.
WhT happens when you buy a 3000 car and it ends up being 4500 on repair?
Or just get a toyota. Ez.
end of the month is always better if buying a new car. Dealers get bonuses each month if they sell a certain number of units.
Thank you so much Dave Ramsey! You've enlightened me when it comes to buying a used car compare to a brand new one.
God bless you and wishing more success to your show!
Walking into any dealer and saying, “look, its a done deal and I will write you a check right now for that car over there but you’re asking too much for it” will immediately get a reaction of “NO” because dealerships don’t accept personal checks on the spot and let you drive away.
Exactly, that's why I always buy vehicles with a briefcase full of cash.
Well, he's Dave ramsey... It's a lil bit different, and he built a relationship with that dealer
Ford=
Fix
Or
Repair
Daily
i don’t think he means a literal check, the same way most ppl don’t mean actual cash when they say “in cash”…
Boy what I could do with 30k right now.
I can live two years on 30K .. ..
What?
@@barbusie5217 i cant live 2 years on 5k. Cause I live with my parents
Buy cash from a private seller. Don't have to play games with private sellers. The 'certified pre-owned' business is a scam.
Cory Williams curb stoners? What is that
Fatlind Bytyqi car dealers that are illegally selling cars posing as private owners. They have a license to buy cars at auction, but can’t sell more than three cars legally. They try to avoid regulations but in real dealers.
Fatlind Bytyqi curb stoners are dishonest dealers that pose as private individuals. They are licensed to buy at auctions, but are not licensed like a real used car dealership.
@@wldktz1 Yeah, so many scumbags posing as the car's "owner". Disgraceful. I always ask "I'm interested in the car you have for sale online". Most of these curb stoners say "Which car?," "I have two posted," etc. I just hang up. That's a dead give-away that they're dealers. Lol.
So I know this is 7 years old and we’re still in a super seller’s market… some signs saying prices on used cars going down but… I wonder how dealerships are responding to the check on the table thing right now? Like I’d REALLY wanna do that but curious if anyone here has done it in the last couple months?
Buy a 20k used toyota tundra and put the $10k in a separate savings account. Toyota tundra is a great truck. At 100k miles they are barely getting started.
Lol for 20k a tundra will have nearly 100k miles on it and be 7 years old.
Jay Smith u right they hold their prices
You mean hold 10k for fuel and repairs. Tundras are gas guzzling pigs and they have engine problems galore.
Justin Russell They are great trucks I just sold mine. Mechanically they are close to perfect. Toyota’s downfall is rust and rot. The Tacoma and Tundras especially are known for rust and rot even if you take care of them especially in the salt belt states. If this is not an issue then you’re golden probably best truck to own....
I've always bought trucks with about 80k to 150k miles, from individuals. While it's not a scientific sample I've never had any major problems and got years of service from these vehicles. I research the make and model to see how it's type has held up over the years. I avoid 4 wheel drive and don't care about light body damage or if the bells and whistles are still working.
Cars are not investments.
Unless your doing uber or something then yes
Still no. It will not go up in value. On the contrary, using it for ridesharing will make the resale value plummet even faster.
umm when you use them for your business they are !! ex . trucks for hauling or luxury cars for real estate agents driving clients to different showings
Unless it’s collectible☝🏼There r few of those out there!Keep your eyes open and make some money folks!
A lot of the house priced limited edition cars are sound investments. If you are willing to spend 1 million dollars in 2014 to buy a Ferrari Laferrari they are now worth 4 million
Definitely don't want to tell them you're paying cash, new or used. They will always drop the price and get you in the financing if that's what it takes to close. Let them go through their whole 4 square, this much down, this much a month BS if that gets you to where you need to be. The biggest thing about buying a used car specifically, is patience. Find what you want for the right price. Also with Carfax and the like, there is no need to avoid private sellers. Just try to find a one owner garaged vehicle that was owned by someone at least 30. Check the nooks around the trunk really well. Detailers can make just about any car look garaged these days. If you care more about your purchase than the person did about cleaning, then you should be alright.
Seasonally, the only time not to buy a vehicle is buying a convertible before summer and buying a four-wheel drive vehicle for the winter. Best to wait until after the season is over.
On top of the comprehensive limited warranty coverage, they include seven-year/100,000-mile powertrain limited warranty coverage with every Ford Certified Pre-Owned vehicle.* It covers the engine, transmission and more:
Transferable to future owners at no extra cost The big + for certified pre-owned is extra PT warranty, instead of the standard 5yr/60,000m PT . Certification is not free, so you will pay a few hundred more, WORTH IT !
Take it to an independent body shop and have them look it over for prior collision work. Pay them for their time and have reassurance the thing is not pieced back together.
m ph late response, but the carfax can also tell you that without you having to go through the effort of seeing a mechanic. Even if carfax isn't perfect, i believe it's good enough
10 yrs in the car biz. Never buy from a dealer
Period. Do your research , buy from a private seller with cash. And hold the money on you hand as you make a low offer and put the money in your pocket as you walk away saying there are several others in this price range. Lemme think about it. Actual stacks of bills in front of someones face moves mountains. If they wont move on price , say well , nobody has bought it at this price , so far maybe a bird in the hand........ Im right here with money
All dealers are there to make money. All dealers will never, ever sell below what they purchased a vehicle for. Ever. If they do, do you think they would be in business long?
Sometime dealers sell lower than they paid. If they can get the money on the front end or they made more money on another vehicle and they need to move that unit to roll over thier investment. sometimes losses are gains.
They will for a car that nobody is buying because it ends up costing them money to keep it on the lot. That's why I buy old cars from dealers because I can get them really cheap and usually work has already been put into it.
I got lucky on my 2015 RDX (basically brand new as in, no registered owner). Haggled for about 2 hours and made a cash deal. They then physically messed up the vehicle on the day I was supposed to pick it up and I snapped. They then offered me another RDX, same model but 10k less KM on it (~7,000 km). Haggled more, and they ended up bringing the price down $7,000 and threw in 3 free oil changes.
How do you haggle, can you plzz explain becasue I want to learn
in order to negotiate prices you have to be willing to walk away. Whoever is the most willing to loose the deal all together is the one with the power.
@@mcopeland05 Job, relationship, purchasing anything - makes no difference - be willing to walk away and not look back if you're not getting what you want or deserve.
I'm trying to save enough for the car I want new and get it wrapped to protect the finish and rust proof the bottom then never get another car in my life.
Hadn't thought of that. Thanks for the idea. You're a great citizen.
I did that with my last vehicle, found it on internet searches. Had signed up for sites to contact me. I went and spent some quality time at a place like AutoMax who knew I wouldn't be buying but helped me decide on the vehicle. I'm sure this is in hopes I couldn't find locally and they'd source. I knew all about the vehicle, it was a trade in at another brand dealer. I called another dealer w/ same brand and asked for a review of the vehicle which they checked over the phone....Lexus keeps good records. Selling dealer had it 4 months. I drove to another town where that car isn't so popular and they were having a hard time selling it. Then I looked closer and added in the things they had to fix. He gave me a price and then added what it would be if I financed it as if he was giving me a good deal and assuming I would (I was dressed down). I said I'd write a check for the original amount and said I'd wait the two hours for the repair items. The manager tried to talk me out of deal and financing taking all my savings......blah, blah, blah. Where I live there is a wait list on rental cars at Enterprise, they come certified, same as a dealer, worth checking. I think they also buy. It really pays to do your homework, took me about a month to find the car an hour away.
I used to be into this old used car mentality until mechanical problems. Buy a fairly new car you can manage save yourself the money of buying parts and mechanic labor cost
Dave advises this to get people out of a mountain of debt.Then gradually get better cars as time goes by.But,your car should never be more than 1/2 your annual income.
Never pay MSRP price because it is marked up. Do a true car check to find out what a good price is. Yes dealers want to make money in the beginning of the month they may be less willing to deal and so the end of the month is a better time to negotiate. Also buying at the end of a year is great way to get a better deal because the dealer may want to get rid of it to make room for the newer year cars to come in. Most customers need to understand that salesman and sales managers are master negotiators so they know what they are doing so be prepared u r entering their boxing ring. The bottom line is they are their to make a profit just like any business. If you do not like the negotiating process do not be afraid to leave ok but most sales personnel will want u to not leave and go get their manager and keep u their longer to test your patience. Last, they will let u take it home for a night in hopes u will fall in love with it and be willing to put more money down and be more flexible with your payments. Salesmen are not your friends they are there to make money and their are good ones out there.
Kelly Blue Book isn't accurate typically, it's a decent point of reference, but NADA is Beyer for accuracy
KBB seems to be really good if you are buying from an individual, but I agree all car lots and finance institutions will use NADA. KBB is based on similar sales in your area. so they even include the ones that look like they drove through a crowd of hammer wielding clowns, while NADA just takes a general depreciation of the value based on mileage and other factors that will devalue a vehicle.
NADA IS WHAT THE BANKS USE TO PROTECT THERE ASSET. IF YOUR A USED CAR BUYER YOU ANT TO GO BY WHAT KBB SAYS.
Im a mechanic so now i look at vehicles as a drivetrain shell. Im about to buy a lemon car for 2000 because its extremely clean, i have the money for a remanufactured engine and or transmission or could tear down and rebuild the engine and transmission because its reliable and simple. it does not matter to mechanics if the parts exceed value because the value is in the miles it travels and if thw added mileage on the drivetrain shell can be used to make money and incorporate the fuel costs and there you go. you can calculate the rwpair, miles to be driven and i used to hot shot drive so you can turn the added mileage on the drivetrain shell to a return on investment actually. at the end i can sell it for a small recouperation. basically thats a bonus of being a mechanic.
It's funny that he says he wouldn't want a car that had been a rental. If you go to a dealership, there is a very high chance that you are getting formal rental cars. Once they hit a certain mileage point, they typically sell them to dealerships. I know this because my husband worked at a dealership and because I worked at a credit union where we worked with rental car companies and dealerships for financing. We have had several vehicles that had instant equity in them from state auctions. They are very meticulous about getting all repairs done/regular and required maintenance. Other good deals have come from dealerships and private party, but we always knew who had driven them before us. We are very picky about previous owners. He's right that you have to be willing to walk away from a deal to get the best deal.
The Construction Guys Office Nothing wrong with a former rental, most have highway miles that's less stress on car and most are well maintained.
The Construction Guys Office You are right. When I sold cars the dealership got the rentals for a good price and had a high markup. Dealerships make money off rentals and that is why I tell people to always ask to see the invoice and let them know that you are serious about buying. Negotiate a price that is fair for the dealer to make its money and you don't get ripped off.
I live in central Florida, rental car capital of the US - I wouldn't buy a rental from here. Disney trips generally are short cycle, much mixed driving (some highway, some stop and go) and many cars get romped on by the tourists. I just rented a 2018 Camry with 11k miles on it plated from VA that smelled like B.O. when the interior got hot. You just never know who is driving these things...
Buy a manual trans car. Unlikely that would be a rental.
I understand where Dave comes from and his reasoning, but the one thing I feel he leaves out of the equation is enjoyment. What's the point of going to work every day if you can't splurge on a few luxuries? We have a comfortable life with a few bills, but we bought a $55,000 car at 0% interest. Every single morning I look forward to driving it to work. It gives me immense pleasure. Yes, I have debt, but it gave me so much happiness. If I fall over dead tomorrow, at least I had an enjoyable life.
You pay yourBill's. People like us can buy cars. He only means people who are not fiscally responsible cant buy a car.
@@phannypack3951 And I will live my life enjoying myself and my new cars. What does it matter? I may not be a millionaire, but what good does it do to save for the future if you get sick and die at 40? You scrimp and live without any extras, but never reap the rewards.
@@kdw75 if you eat well, drink lots of water and get plenty of sleep...
*you will still die anyway*
Don't tread on me True. So why not buy a nice car that you’d enjoy driving (granted that you are financially equipped )in between living well and dying?
@@kdw75 Then you get old with no money, and want other people to support you and complain about how unfair society is.
I’m indian from punjab love to watch u explaining how to be financially free
Not mentioned: Insist on getting the used car inspected by a independent mechanic prior to purchase. Expect firm resistance from the dealer on this.
Truth
His faith in Ford though! My friends dad bought F-150 brand new 2 years ago, the transmission failed on him.
CPO isn't really worth it... If a car has it, great, but imo, it shouldn't be a requirement when looking for a used vehicle
"Better than I deserve." I love it!
Certified Pre-Owned: I can certify that this car has been owned before. 🤣
small used car dealerships LOVE cash. that cash up front mentioning works. at a franchised dealership it doesn't really work
I would go about it slightly different I would never tell them I am paying cash, the dealer makes 1000 plus on bank reserve I would lead them to think I could be financing it , maybe buying the warranty they make money on this also and then the dealer might not try and get all his profit on the sale. Have an independant shop inspect it before signing a binding contract and be prepared to walk away if your conditions are not met. Be careful on private sales and always look up the service history or previous owner and check that information if you can. Otherwise buy a new car and shop the internet dont buy rust proofing and warranty you can do that after the sale on a new vehicle .
Dont use kbb. Use nada it's a more realistic value for the car.
Tried to buy a 3 year old vehicle at a dealership with 30k miles on it and they would only give me about 4K less than buying a new current model
First thing you want to do when buying a used car is check the DIP STICK to the oil in the motor have a napkin with you first pull out the DIP STICK and wipe it clean then actually look at the DIP STICK it's self if the DIP STICK is nice and shinny from one end to the other than you will know if the oil was changed on time ....... NOW if you see the DIP STICK with burnt brown marks up and down the DIP STICK even in the middle of the DIP STICK......... Then shut the hood and RUN!!! This means that they NEVER changed the oil on time I hope THIS helps all of you
First thing a seller wants to do is buy a new dipstick.
😂
@@dchawk81 lol just trying to help but yes very funny I probably just warned every used car dealership to make sure they replace all of there burnt dipsticks
5:50 lol 😆 😆 do you know some people leasing cars don't even change oil the whole leasing term ? . Fleet cars better than leased ones sometimes
Ramsey, you are really good on getting people off debt.. And please keep doing that.. Stay away from how to buy used/new cars 😅
Right? The reason why you dont say your paying with cash is because they will go up on the price to make up for the difference in interest that they won't get from financing.
Any advice?
If you want a steal definitely go try finding an individual I found my girl a 2009 toyata Camry with 90,000 miles on it for 6,200 good engine, good tires, we just did all the fluids and fixed the water pump and added new breaks and it’s runs smooth plus my uncle is a mechanic and checked out the car too if the car was somewhat taken care of especially a Honda or Toyota that’s the way to go
This is inaccurate information he is giving her. Dealerships make more money on used cars than new. I was in the car business and I could give her better advice. What she needs to do is ask the dealership to see the invoice for what they own it for and negotiate from there to prevent the back and forth and allow the dealer to make money and get a good deal as well. The dealership is not going to lose money because you saw a price on Kelly Blue Book which is not even looking at the car to see things that may cause the car to be worth less.
I hope she didn't purchase based on this information he is giving her because she may get ripped off
For used cars, I would do my research first to see if a particular car you're looking at is a good choice because usually, the cheapest car is not always a good choice. Kelly Blue Book and Consumer Reports are always good sources. Also, unless you have the income to actually afford it or willing to invest in it, avoid buying European cars as used because of high maintenance and the reliability on many European cars are questionable.
Someone needs to tell this lady "certified pre-owned" doesn't mean anything.
Jimmy Bob
Certified pre owned means the dealer looked at the car and said
"yup, that's a used car"
Factory certified does have to meet certain criteria to be able to have the tag. The only “certified” that means anything are factory certified ie Toyota certified, Honda certified etc they have to meet certain and usually strict cosmetic and mechanical criteria and come with a factory backed warranty. IMO more money than it’s worth but it does actually carry some weight to it. Dealer certified is a joke.
If your worried about mechanical issues, run a vin check and have a good mechanic check it out
Toyota Corolla or Camry from early 2000’s
Jon Smith FACTS
I'm still driving my 2002 Toyota Celica, I've only had to change oil and tires and it's still a beautiful car
Bulletproof car
I have an 06 Camry that's at 130k miles and it's had 0 mechanical problems. The only advantage to newer cars is aesthetics/features/performance and safety, which is a pretty big deal in my opinion. Newer cars have incredible safety features
Nick J usually a local mechanic can fix it for free if it’s minor....
I use to work at ADESA auto auction which is where quite a few used cars come from now days to dealrt "Certified pre-owned " is just a sticker, there was no special inspection or maintenance that was done, the vehicle would come in get detailed by individuals of questionable green card status THEN the STICKER CERTIFIED PRE-OWNED (of course it is used) then inspected for dents and dings which was then annotated on paper for the auctioneer driven over and parked until auction day.
By the way, don’t buy extended warranties!!
That’s a Golden Nugget.
wrong,,extended warranties sold by the factory, not third party, are worth their weight in gold if you are driving a German car like Mercedes or BMW.
Best truck we ever bought was a rental car in Hawaii one year old. Drove the tires off and it cost 25 K less than same truck new.
buy a car for 10,000$ and invest the other 20,000$ that could even double.
davontae Graves what do you invest in?
You don't get a good truck for 10k. If you got it, spend the 30 and be happy.
Too boring, too responsible for most people
@@dchawk81 10k gets you a 15 year old 400k km diesel thats covered in rust.
@@Xachremos "Patina"
I know this video is 4 yrs old but, Do not buy the eco boost. My cousin has one & said it gets no better mileage than the v8 but has more stuff to break ( turbo, etc ) buy the v8.
You know what your certified warranty should be? Your savings account!!!
Ask if it comes with an owner's manual? In Canada: ask if it comes with a block heater, those are add-ons, some don't come with block heaters which are necessary in Canada.
Dave is being dumb here, if it's a Ford and a year old, it's not necessarily any good. Fords can be spotty for reliability
Dealerships make more money on used vehicles than new vehicles. The information regarding this provided is inaccurate. The reason being is the dealer can buy from auction for cheap where as new cars dealerships will have to price the vehicle close the to MSRP (of course it will be on the higher end). Dealerships also make a commission on financing and would prefer rather than cash.
Certified used? Scotty Kilmer a mechanic with 50 years experience (also on TH-cam) says that term means absolutely nothing. Before you buy any used vehicle get it checked out by an independent mechanic.
Hamilton Asseiro lol I just watched that video and his example of “certified used” was a 15yo Celica... the only thing “certified” about that is that it is USED. To laypeople “certified” used means less than 5yrs old, less than 60k and still eligible for factory warranty and close to new car finance terms. As for all the other fluff(ie 1 owner, 300pt inspection, no accidents, etc) I agree with him that you can never trust a dealer as far you can throw them.
The certified used I’m trying to buy is essentially a new car without all the depreciation the moment you drive it off the lot(but still more to go as any car that you actually drive is gonna depreciate). His example was a car that was already at max depreciation and comparing what you’d pay on Craigslist($900) to a new car dealer($6500).
Dave's advice is solid.
What's not believable, or maybe just a waste of time, is him going to buy a vehicle himself. And wasting precious time talking to somebody.
When you have that much money, you have people doing that for you.
When you have that much money, you don't waste time, which is precious, on haggling or doing some things yourself.
You can't buy more time.
One it's fun to and two he knows cars and thats the true story when he bought his raptor
I am a huge fan of Dave and what he teaches. These are some quite good principles to live by. I do work in auto sales and the idea of a 2k car that would be worth buying is about 15 years out of date.
Lynn Waldrop after they pay the 2K they will be paying 2-3k a year for repairs LOL
SAAN27 2-3k the first year or two? Sure. Any used vehicle at that price will definitely need repairs. 2-3k every year? Haha, not if the vehicle is taken care of after the initial repairs. If you're paying 2-3k per year just on repairs, then you have either 1). bought a "lemon"/an extremely unreliable vehicle or 2). you are abusing the vehicle and using it for things it wasn't designed to do....
I paid $2500 for an ‘06 Chevy at an auction. That was four years ago. Still no major repairs and a few months ago I started doing Lyft/Uber with it LOL in two months, I made all my money back and can still use it for rideshare for six more months Lyft and 2 1/2 years with Uber. I love our neighborhood auto auctions!
@@shockawha9 uber doesnt let u taxi with car more than 10 yo you're lying
5:20 I heard vee hickle but what about war -a-nee!
I brought an Avalon 2006 for $6000 two years ago. With over 75000 miles, no major problems over $200 so far. Will keep it until the engine dies.
Buy reconstructed car with cash, put 100k miles on it, get rid of it, then get another reconstructed car. Save money, build wealth.
Paul OregonUSA Reconstructed? Like salvaged?
I mean get in cheap and get out cheap. It works with most brands.
I bought a 93 f150 with the legendary durable inline 6 for $1000 nice body, good interior and all I wanted. Bad engine and tranny threw a new tranny (3ry warranty) and rebuilt the engine myself for $600. Probably spent around $3600~$4000 including new tires, front end, brakes, fluids, rear end, interior, creature comforts. It's been a few years already I haven't spent a dime on anything major only regular maintenance. It has already paid of its self many times over.
I bought 3 beaters and each broke down within 6 months. 1st one (Ford ka 2001 250.000 KMs) in 4 months , 2nd one (Toyota starlet 1998, 150.000 KMs) in 5 months and 3rd (Peugot 206 silver 2003, 250.000 KMs) in 1 month. Granted, the 1st and 2nd I didn't know how to inspect cars and I didn't know the guy selling it. But 3rd was from a "well known, reliable dealer" + I had it being checked out by an independent mechanic. And the cars were all below 2K euro. Each 3 cars' engine broke down with costs going well above the purchase value. I don't want a fancy car, just want a car that runs and takes me from A to B... but doing the math, currently leasing is cheaper per month for me then buying used cars. Am I doing something wrong? Do I need to buy in a different price range, try different mechanics or am I just very unlucky? I don't want to lease since dave says its most expensive but if a car breaks down in a lease, I don't have to fix it up.
You're buying cars with too many miles on it. Look at the manual. After 100k miles what ever that is in km, there are some major maintenance things that need to be attended to. Id be buying used with somewhere between 50k to 70k miles.
@@catdragonrose2155 Alright thanks for the tip! 50k-70k highway miles ? Im saving up for a higher price range.
@@Sc0rpic0m what ever the odometer says is what i go by. Never heard of someone using highway miles only to track total mileage.
@@catdragonrose2155 ur so true... dealerships love calling them highway miles... 🤔seriously, show me the proof of that.
You can generally tell if the car has actual "highway miles" because it will be high mileage for it's age. If it has on averaged 10k-15k a year, it don't have that many highway miles. If it was driven >20k miles a year, then it most likely has highway miles, as long as it wasn't used as a courier car.
Why not buy a used vehicle from an individual? Take it to a trusted mechanic and make sure it is in good condition, then compare that to a Dealer price of a comparable vehicle. Most of the time you can save a few hundred to a couple thousand...
I bought a leased truck. It's been great. I stole it, too.
those least options are designed so you can keep coming back and back and back forever.
Never ever tell a Dealer you are paying cash every car dealer tells you not to do that.
"if is FORD, you don't have to worry about:" I laughed my as$ on that one hahaha! First, mistake you made that buying a Ford. That is a bad financial decision.
A bad financial decision is falling in love with one brand of vehicle....
Me too! I laughed at my friend when she bought a used Ford truck. She's had it less than a year and it's broke down twice. We have a 1997 Chevy Astro van with 220,000 miles on it. We've had it for 7 years and it hasn't broke down once.
First on race day!
Depends on how well it was taken care of.
Batu Ventures my 2016 Ford F-150 has 190,000 miles with the 3.5 v6 ecoboost engine. I love it.
Tried to work a dealership down with cash and they didn’t bat an eye. They didn’t care so don’t be surprised if they don’t negotiate on that aspect. Smaller dealerships may like the cash buy.
Something tells me she’s going to get talked into leasing a brand new truck
Or you can buy an older car for like 5k or 6k save thousands and drive that car until you can afford a nicer newer car just my personal opinion
Not true! Here in Colorado they have a Jeep dealership and have had this 08 Escalade black Awd. They now had it for like 2 Years now, but the Car most def needs work, new tires, wheels, New Side mirrors Left and right, Left Tail Light Broke, and needs new windshield And they last owner said Trans is going out, and needs 2 motor Mounts. I know the guy who traded it in.... They gave him $16k for it with 152k on it. I don't understand why they just keeping it in they back lot soooo Long! THEY STEADY POSTING IT ON CL, and never have a price last time i went up there they said $15,000- $16,000 I said gtfoh you are not going to sale this Lac, if you was a Whole Seller would of been bought it from you guys... Dealerships make BANK! Idk why they wont just fix it and idk why they still keep it in they back lot, Link of it right here if you think im Lying!
denver.craigslist.org/ctd/5682770164.html
Cam Mims You kinda prove his other point tho. Don't get wedded to a particular car. That dealer is obviously not moving on that one. You won't always get the deal you think YOU should. Move on to the next truck.
They're keeping it as a lesson. Make an example out of the salesman who made that bad deal. It's still there "lest we all forget."
😁
A vehicle on the lot that long is known as "lot rot". Stay away.
Buy at auction. Paid $3500 for my Crown Vic ex cop car. Had 64k miles on it...now has over 100k and I've only changed the fluids and front brakes/rotors. Paid cash for the car. It's not sexy by any means but I don't have a 500 per month car payment either.