A buddy of mine who is a car salesman told me the best days are towards the end of the month when they need to make their quotas, even better on a rainy day when there's less traffic in the showroom.
I always buy at the end of the month end of the quarter, and I usually try to make it the end of the year as well. They have quotas. Doing this has landed me some incredible deals.
I got completely fleeced the first time I bought a car. But bought one recently and as a knowledgeable buyer I could sense many dealers getting upset with certain questions I asked or wanting to pay cash instead of financing. Buyers have to be willing to walk away and take business elsewhere. There are some solid dealerships out there.
I went to the bank to pre-pay a loan, and they ended up adding a few hundred dollars in fees. Since it was a simple interest loan I told them that I would pay the loan off except one dollar. I told them they could then spend the next six months sending me a statement until the end of the loan term. Immediately the manager at the bank decided to waive the pre-payment penalty. Keep that in mind if you ever go to Pay off a loan early.
48 months is plenty. Like you said, 84 or 96 months and you've already bought your next car. Dealers , Car companies advertise monthly payments , but they'll never tell you the price of the vehicle which is really wrong but legal. You're very well spoken and clear. Our kids today need to see videos like yours. Take care.
Love you guys. Used many of your strategies at a dealer and the manager came out and basically asked me to leave. 🤣 Went to another dealer and they were 100% transparent and earned my business.
Thank you for coming back to making informational videos like this. I'll be really honest - I've been getting exhausted with the sensationalized video titles and clickbait thumbnails over the past year or so. When y'all started out, the info was content focused and actionable. More recently, everything's a -pocalypse. This is the kind of content that built my trust in you, and I'd love for there to be more of it.
I don’t disagree but I sympathize with these guys- I’m not sure they have a choice if they want to grab a click from a new viewer. Don’t hate the players, hate the game.
I've gotten a little fed up with the clickbait thumbnails too. "Its Over!" etc. Stick to the good information, and coaching, and helpful tips, and leave the silly clickbait stuff for others.
Over the course of my life I’ve used that knowledge to my advantage when I’ve bought my cars. The satisfaction you get when the sales manager gives you a dirty look as the salesman explains that the tricks aren’t working is priceless…. One of your most powerful tools is simply getting up and leaving the dealership when they are playing price tricks. One of my best transactions took over a month to complete due to me knowing the numbers, their situation in the economy at that time, and how hardheaded I can be…. Walked out of the dealership with a 0 APR at the exact price I wanted… (Oct 2001). Have patience and do your due diligence
@mikeydude750 Read it carefully, everything he said applies more now if anything, other than the interest rate. The economy is in the shitter, cars aren’t selling, people are defaulting on their loans and handing keys back, it’s a buyer’s market now. Dealers have too many cars in their inventories because nobody is buying. The most important negotiation tool is the ability to walk away, if you make it clear that there are other dealers that have the same car and you don’t need THAT specific car, they’ll be far more likely to negotiate. All of his tips still apply, don’t discount advice just because it’s old, sales tactics don’t really change much.
All that you said is true. I sold cars for years and sales tactics STILL haven't changed. Only the prices have changed....cars are much more expensive! Do your homework.
And that’s how they get you. Research take a check with your set price and bring it to the table and have them talk to or bring the sales manager to the table. Worst case scenario they tell you no and best case scenario you get your deal at the price you set. I’ve done this a couple times, you’ll get denied but it saves you your valuable time from going back and forth at the dealer for hours and hours
The best advice I seem to be getting is, know what the car you want is really worth, know how much you can spend, demand the out the door price, and be willing to walk away if the out the door isn't in line with the first two items. Then you can go in confident and know what to expect. If the car is a fair price and in my budget I'll buy it. If it isn't then I'll take my business elsewhere. And it's perfectly fine to shake the salesman's hand, thank him for his time, and walk away without a car.
I'm sure you've bought by now, but remember for the future this is a business. They need to make money too, and they will, you just want to try to keep as much of yours as you can.
They really do hate it. Drives them up the wall. I bought a car a couple months ago and did everything I learned from these videos and they were very frustrated
My mom told me when I was a youngster that integrity is the only thing someone can't take from you. Ray thank you for your full disclosure and utmost integrity sir.
@@jp3047 - He robbed people for 43 years. Him telling you how to bypass the BS is now profitable for him and doesn't hurt him since he retired. Great to get the tips but let's not act like he's Saint Ray doing this out of the kindness of his heart. He's using TH-cam as a 'vehicle' to advertise his website and make ad money. Nothing more, nothing less.
Another good bit of advice I got years ago from a former car salesman, is never negotiate face to face w/ a salesman. You're at a disadvantage by playing on their home court. Find the vehicle you want, go home, call the lot and ask for the used or new car manager depending on intent of purchase. Offer them an 'out the door' price. They'll take it or counter. If they won't play ball.....walk away. Don't get married to a vehicle. This works especially well if you can find sites that list how long car has been on lot and you can point that out. Obviously the longer they've had, the more incentive they have to move it 'over the curb'. I got a smoking deal on a mint VW Sportwagon this way. (it helped that wagons are not popular in the US)
I sold cars for almost 30 years. During that time I also did manage the F& I office. This gentleman in this video is pretty much shooting it straight. When getting a price, work the deal with and without your trade. The price will be much more accurate. Shop at least 3 dealers for the best prices. Never commit to your salesperson whether or not you will finance the car. Do Not, Never buy a car on line.
Thanks for the tips. At the end of your comment you mention not to purchase a vehicle online, is there a specific reason to why and what if the car you looking to purchase is out of state
Thanks Ray. Having a pre-approved loan and rate in your back pocket is a pretty liberating experience. I sit down in the F&I office knowing I "don't need their money" (no rush to buy) and put the dealer/F&I in the position of beating the rate I already have in pocket. That's a big help and a great idea.
Best thing I ever did. The dealer told me I couldn't get a better rate anywhere. I pulled out the check from my bank and he was so shocked he couldn't say anything.
Love this! I did this exactly how you said and got a fantastic price with only 1 BS markup that I negotiated down. Got a great rate and terms for the loan. Even traded in my failing Kia Sportage for more than anticipated. All thanks to your info.
Thanks Ray, I watched a lot of your videos before buying my 2022. Boosted my confidence 100% in getting the best deal in a bad car buying climate. As a woman I feel we get taken advantage of at dealerships.
I bought a used car today and shaved off 4.35% interest and over $5700 between interest and price taken off the car! Leverage the buy rate of the loan!! The sales manager wanted me to give me a rate of 9.99% for 60mos. I knew at my local credit union I could get it at 5.70% but he wanted it financed at the dealership so he knocked it down to 5.64%. Amazing video!!
I've been at Car Dealerships who flatly will NOT tell you the cost of the Car. They will just ask - _What can you pay?_ or - _can you afford $300/month._ But the cost and the details were always missing.
I appreciate this channel SO much. I started a career in auto financing and the training was scattered so listening to your videos is helping fill in the gaps and better teach me. Thank you!!!
This is a perfect step by step on how to do this . I learned these methods by having a friend who sells cars show me. This is a better breakdown on how to do . Great job Ray ! Great stuff !
Lots of great information there I’m going through the vehicle buying process right now I’ve already had to walk out of two dealerships because they wouldn’t disclose all their hidden charges They were very aggressive Thanks
Just bought a used car today and i used basically this and kevin hunters approaches and i got a sick price. Been monitoring this car for 2+ years nationwide and finally snagged a deal well below kbb and every other price ive ever come across in 2 years. Gm was pissed so ik i fought tooth and nail. Its worth it folks! Its your money. And dont buy what you cant pay off within a year!
I love your channel! My son had to buy a car recently, so I shared this video (and others) with him. Sadly, he was in Chicago and I coudln't be there with him. The car was a 2017 Kia Forte, listed for $10,897, which was comparatively low for the market. The dealership told him the price was actually $14k for the car, because they had "service fees" that they had to recoup. the salesperson then held up the car fax to show him what had been reconditioned/repaird. WTH? I've never seen a dealer add those fees ONTO the price of the car? I'm sure they saw a young man walk in, and did their worst. He bought the car for $11,500--much to my chagrin. The dealer still insisted that they HAD to add those fees. SMH....slimiest deal I've ever heard of. Sadly, my son wouldn't get up and leave.
Really good information for most new car buyers. The one part that I feel that is important is to do all of your homework before you walk out of your door. A few hours spent on the internet will at least put you on a better footing with a dealership with some knowledge. In my case and an F150 I bought this spring was the MSRP of the vehicle and the approximate actual dealership cost. As I was paying cash, it was easier but I did set a max total out of pocket and in doing that I actually bought the truck for about $3K less then that amount. Homework first!!!!
I bought my first car in 1992. I’ve owned a dozen cars in my lifetime and it took me several transactions and a great deal of money to learn the lessons that Ray has laid out here in just a few minutes. Vehicles are a commodities business. Unless you are buying something unique or rare, chances are there is another dealership in your town selling that same car with all the same features. You like a car? Fine. Make sure you like the deal for the car, too. Do not trust those who work at the dealership. They want your money. You have to be a strong advocate for yourself to avoid being taken advantage of. You do not know what a good deal is until you have shopped around to other dealerships.
As a first time car buyer these videos are my go to!! Thank you for the work you are doing here!!! This has been so helpful! I feel like I have more control when it comes to car shopping!
Thank you for sharing your knowledge with us. We are not buying a new car till we get with you all. We've done everything wrong in the past. Not ever again. Thank you both!
Another tip in regard to “before you go” call your insurance carrier so you know what it will cost to insure for full coverage. Weird how folks forget that one. Early payment penalty. If they put an early payment penalty on you. Say Adios. My bother just did that very thing and they immediately dropped that provision.
I concentrated on the out the door price in order to keep it simple and not fall for the shell game. My old car went to Carvana. Didn't get top dollar from Carvana, but it is a stress free sale. So I pounded the dealer on the OTD price, had them remove most of the added on dealer crap, and arrived at the final down to the penny cost. All good.
Depends on the difference with tax. A trade-in reduces your vehicle tax, but you have to play taxes on any money earned on selling your car. If selling your car nets you more then yes, if the net differences after taxes doesn’t make sense then trade it in.
@@Yakomoemany homeowners do to when buying new windows. Not all but many do and probably for good reason, a lot of those companies will fleece you. After 30 years in that business I’ve heard them all.
I have followed the info from your videos and I definitely saved a lot of money, and feel like a got a better deal. Also the dealer remained pleasant, but I know he was frustrated, and the GM of the place absolutely hates me. Especially because I smiled the whole time.
Thanks to Car Edge, i went into the dealer back in April to buy my new Hyundai Santa Cruz armed with all the tools and confidence i needed to make sure i got the deal i wanted. Thankfully Hyundai was running a 0% interest promo so i dodnt have to worry about APR, but i did make sure i saw the OTD price before even negotiating. I saw some dealer added fees which i immedialty had them removez and finally was able to get my car for 1k less than MSRP along with working them uo from a lowball offer on my trade-in by pulling up similar vehicles, with higher mileage than minez that they were seling at their dealership for alot more. So thank you Car Edge!
Sorry to say this but $1000. Less than MSRP is nothing, they still ripped you off. I know, I worked as a Car Salesman while I went to College and I know all their tricks.
I shop around for an MDX so i got numbers from 2 stealerships, i told the other one that the price i was getting was lower and so the monthly payment on a lease (less than 4% apr) they said we’ll match it, i go in and they start trying to pull shady moves to make me pay more monthly. I walked away, hopefully my experience can help you, always get 2-3 quotes for the same car, that will give you leverage, specially on this tumultuous time for the car industry 👋🏻
You two are always so informative. Thank you so much for all you do. I will feel much better going into a dealership in the next few months. I hate buying a vehicle. Thanks again and keep it up.
I appreciate this channel SO much. I started a career in auto financing and the training was scattered so listening to your videos is helping fill in the gaps and better teach me. Thank you!!!
Good video... I did the same as you for almost 30 years...Every sales-related job in the dealership when it was a straight commission position and you still got a "demo"
These are awesome tips, I would say required material before you buy. The tenor of the negotiations changes drastically when you start dealing in OTD numbers. It's like the term "OTD" makes them realize they're not dealing with a dummy. Also, in my experience the dealer will always try to beat the APR on your pre-approved loan, so it's to your benefit to get this done before you walk into a dealership.
If you want to be in power of the negotiation. Best advice research what your dmv fees are and taxes and add it, next if you’re set on a specific car do research on the best price you can get (google is your friend), once it’s all set and done if you have the cash get a cashiers check or if you’re getting a loan look for banks who’ll give you your set price on the car and take the check with you and tell the salesperson that is your purchase price and the check is ready and to run it by their sales manager. You’ll get denied but there’s dealers who will take it. Cash/check is king and they won’t hassle looking for loans. The more firm you stay on your price the better deal you’ll get
GREAT ADVICE. The dealer will almost never disclose buy rate as in that situation the finance manager is operating as a loan officer. for clarification< ANYTIME YOU GET A LOAN THERE IS A BUY RATE AND A SELL RATE> Bank loan officers do the same thing and that is how they make money.
More useful than the "Buy Rate" is the customer needs to shop around and know what rate they can obtain on their own. They should start at their personal bank and a few others. Credit Unions typically offer better rates. I have had dealers offer better rates than my credit union when they hear I'm going to obtain my own financing.
@@Officialx_Sy I would think a couple years so they personally know your banking history, regular deposits, no bad checks, etc. Obviously your credit score which indicates a longer history of creditworthiness. A pre-approval would also be very dependent on the vehicle, such as new (never titled), out the door price and how much cash you're putting down.
Good info for buying a common auto. It can take time and be exhausting. Sometimes one wants a rare car and ya gotta pounce to get it (ahead of other buyers due to supply and demand) and most of this goes out the window. Those are fun transactions.
Hahahaha I paid 70k for my truck a month ago. Carvana offered $63,400. Pretty decent Caredge offered $34,600. They must just be running a regular old scam over there lol.
Love your channel! My wife and I have watched a lot of your videos and even rewatched a few! This one like the others does not disappoint! Thank you for doing what you do!
Unfortunately the thrill of buying a new car can end quickly when negotiating on your trade-in. There is a difference between making a profit and trying to screw people over. Its extremely short sighted. You better know the value of your car and be ready to walk out the door if you sense they are trying to take advantage of you. I walked in the dealership ready to make a purchase and did my homework. Had my title, car emptied, both keys ready to hand over with a great credit score and they still tried to screw me. I was offered 7300 on a trade-in that Blueblooked for nearly 11K. I laughed at the guy and told him id rather let it rot then give it away. I was able to get them up to 10K but only after they were certain I was about to leave. It left a bad taste even though I like the car.
For a variety of reasons, I am so grateful to be a Canadian. It is against Canadian law to charge MORE than MSRP. I bought a new 2024 CR-V last month, over the phone, for MSRP. Paid cash. NO added "dealer features". A lovely experience. What a nightmare the U.S. new car buying experience must be.
I’m in the US, I’ve never paid MSRP for a vehicle, ever. I’ve always paid less, every single time. Not to mention, MSRP in Canada is generally higher than the same exact vehicle in the US. I’m grateful to be American.
As a car salesman, service advisor and mechanic, this attitude has always stumped me. It’s not that you know these things but that you expect to control a sale where you want to buy something from me thinking I “have” to do business with you. I have left so many people setting at the table while I walk away and sell or service another customer, I’ve become known for it.
I'll add one thing. Don't disclose you are paying cash or you have a loan pre-approved until you agree on a price. Despite what popular opinion is, dealers don't like cash deals BECAUSE they make up some of that profit in the F&I office. They want you to finance through them. Get your out-the-door price finalized before you tell them you have cash or financing already secured. Also, tell them NOT to "shotgun" your application to multiple banks. THIS results in multiple inquiries on your credit report. I worked at many dealers in my 10 years in the business. This is a common practice for them to get the best buy rate. This is also why getting pre-approved before you go to the dealer is useful.
Extremely informative video! As much as I wouldn’t want anybody to have to go to Washington DC, as consumers we could use a lot more content like this. Thank you for posting!
Thank you so much for the info that I always keep on watching your videos because of my plan to buy a new car. I will always be in need of your advice and hope to talk to you when time comes to buy one.
Before 2020 when money was still free you’d be correct, but with interest rates up and the average new car price through the roof those same leases you could get for 400$ are now 700$ with 5000 down.
Yep, found that out yesterday. When he showed me the lease rate I was like nope and walked away. Ended up shopping around online and found the car I was looking for used and bought it.
If I understand correctly, are you saying the out the door price is the price of the vehicle and dealer fees and taxes? Then after thats established, you would have to add on finance fees and any add-ons you purchase such as warranties, which would then be figured in step number three?
Thanks for the info. I’m deciphering information from your videos to educate myself on how to negotiate a vehicle that I ordered with a trade. Hopefully I can get ahead of this build date is Monday, December 18. 2023.
Just found you guys and your information is great! Thank you so much for the education. I’m the kind of person who buys a car and keeps it forever. Had my Subaru Outback for 20 years and loved it. Finally had to get a new one during Covid and got an ok deal on an Impreza because no Crosstreks were available. Have had the Impreza for 3 years and really would prefer the height of the Crosstrek. Looks like more inventory is available. Any suggestions on best way to get one? Thanks a million. And I’m binge watching your videos before I step foot into the dealership.
Great video! I wish i knew this in 2020 before i got my car from the dealer.They got me big time on the financing but i refinanced about 2 years later and now i'm really happy.
One interesting thing I noticed the other day when doing the payment calculator was that the 60 month monthly rate was cheaper than the 72 percent rate, due to the higher interest rates. It's crazy to thing that it's cheaper and faster to pay a car off in 60 months compared to 72 months nowadays.
Finance companies don't want to baby your loan forever, they want to get rid of you as quickly as possible so the incentive is to encourage you to take the shorter loan by offering a cheaper rate. That's the way it's always been. Based on your last statement, I don't think you understand the concept of compounding interest. Everything will be cheaper the faster you pay it off if it's borrowed money. The bank owns most of your possession until you get to the point in the loan where your payments go more toward the principle cost, and less toward the interest, and that usually doesn't occur until almost the very end of the loan term.
Just bought a 2024 Yukon following your lessons. OTD price was my mantra from the time we walked in the door. Had the information on my trade and they matched Carvana. But, when I asked for their contracts on the F&I stuff, I was told they didn't have that information, so I walked on all of that crap. One was a $600 five year oil change package. Sounds good? Nope. I checked and the Yukon needs an oil change every 7k miles or one year. I'm retired and live in Florida. I drive 4k miles a year. Waste of money if I took that deal. Thanks for giving us great information for the car buying experience. For once, I left without feeling like I'd been screwed.
If asked to buy from the finance guy the paint protection package,id go to a separate reputable shop that does that,the PPF AND CERAMIC COATING,they pushed us making us work faster to get the car out quicker for the customer,for us to apply the ceramic coating
I just bought a new vehicle and told the sales person if add ons like paint protection and such were brought up the deal was over and I was leaving. Well guess what, they just couldn’t control themselves and I bought the same car down the road.
glad they have to provide all these infos in eu as standard and have to answer that when asked, except buy/sell rate which is mostly regulated from the ezb
Can't see the value of my car on your website because I can't select Al as a state. AR is as high up as I can see. AL is behind the top part of your screen.
This advice might help most car buyers, but some of us don’t fit the mold. My current car is 24 years old, so trade in value is nonexistent. Since I haven’t bought a car in such a long time, I have cash on hand for a new one when I decide to get one. So financing is a nonissue. So how do I get the best deal under these circumstances?
More please! Been having very bad luck with cars past month BUT have made some amazingly good decisions and saved many thousands thanks to u guys since, thank u!!👍🙌💪
Went to your car edge sell site and highest offer was 3k less than my lowest offer from a dealer and half as much as I could sell it for PP. Way to go.
Some auto manufacturers are offering attractive finance rates (i.e.) 2.9 or 3.9% on a 60 month contract. If the dealer tells you that they can't give you the max Trade ACV because you are already getting the lower rate from the Mfg. is that a bunch of B.S. ? I would think that one has nothing to do with the other?
Bought the new 2024 rav4. I had make them discounted about 7 thousand dollars from their bs markups and had them throw the convienece package and accessories for free.
What if I do not want to trade in a vehicle and I want to pay in full instead of finance? We have saved up enough to use savings to buy a car outright. Would the "out the door price" still apply?
Hi. Love your video's. I have a question. Does CarEdge supply the buyer with a Car fax report? The reason I'm asking is because, I saw a vehicle in a Honda dealer in Yonker, NY which on CarEdge did not mentioned anything about the vehicle being in an accident. Please let me know. Thank you.
What's the best way to pay with cash if you want to avoid the finance dance? Just up front, I'm paying cash so give me your best price we talk or walk based on that? Or negotiate best price then say paying cash? Negotiate with financing then just go pay it off in one lump sum?
We had this exact problem. At the dealership we came to a price and shook hands and when it came time to paperwork we said we would pay cash in full and they all stepped back saying the agreed price is only if we took their financing. If we wanted to pay full on the spot it was going to be $1000 more / penalty. It was awful. I said if I go buy a tv that’s advertised as $800 and I have $800 on me Best Buy can’t turn around and say oh it’s $850 since you are not using our financing?
When you ask if there is a prepayment penalty on the loan, how do you know if what they tell you is accurate? Is it written on the contract? Is it going to be in the fine print?
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A buddy of mine who is a car salesman told me the best days are towards the end of the month when they need to make their quotas, even better on a rainy day when there's less traffic in the showroom.
I went to a dealer over the weekend and OMG they must of been starving because they were sooooo pushy. I won't go back there.
Why does out the door price matter if you’re just gonna finance and the total price of car with financing will be wildly different?
I always buy at the end of the month end of the quarter, and I usually try to make it the end of the year as well. They have quotas. Doing this has landed me some incredible deals.
I got completely fleeced the first time I bought a car. But bought one recently and as a knowledgeable buyer I could sense many dealers getting upset with certain questions I asked or wanting to pay cash instead of financing. Buyers have to be willing to walk away and take business elsewhere. There are some solid dealerships out there.
I went to the bank to pre-pay a loan, and they ended up adding a few hundred dollars in fees. Since it was a simple interest loan I told them that I would pay the loan off except one dollar. I told them they could then spend the next six months sending me a statement until the end of the loan term. Immediately the manager at the bank decided to waive the pre-payment penalty. Keep that in mind if you ever go to Pay off a loan early.
Love this
Slick Rick. 🤣
Thank you!
Lmbo that’s very cunning, thanks for that tip!
48 months is plenty. Like you said, 84 or 96 months and you've already bought your next car. Dealers , Car companies advertise monthly payments , but they'll never tell you the price of the vehicle which is really wrong but legal. You're very well spoken and clear. Our kids today need to see videos like yours. Take care.
Most cars are way too experience now to only go 48 months.
Love you guys. Used many of your strategies at a dealer and the manager came out and basically asked me to leave. 🤣 Went to another dealer and they were 100% transparent and earned my business.
Did you go to Gotcha Motors? 😂
Thank you for coming back to making informational videos like this. I'll be really honest - I've been getting exhausted with the sensationalized video titles and clickbait thumbnails over the past year or so. When y'all started out, the info was content focused and actionable. More recently, everything's a -pocalypse. This is the kind of content that built my trust in you, and I'd love for there to be more of it.
Plus one. Dealer hating clickbaits with no new info
I don’t disagree but I sympathize with these guys- I’m not sure they have a choice if they want to grab a click from a new viewer. Don’t hate the players, hate the game.
I've gotten a little fed up with the clickbait thumbnails too. "Its Over!" etc. Stick to the good information, and coaching, and helpful tips, and leave the silly clickbait stuff for others.
I feel like the other people specific videos, like viewing actual deals and breaking it all down, is a lot more effective and enjoyable
Could not have said it better. Seems like that’s all I see on this app these days is click bait titles and non tangible advice.
Over the course of my life I’ve used that knowledge to my advantage when I’ve bought my cars. The satisfaction you get when the sales manager gives you a dirty look as the salesman explains that the tricks aren’t working is priceless…. One of your most powerful tools is simply getting up and leaving the dealership when they are playing price tricks. One of my best transactions took over a month to complete due to me knowing the numbers, their situation in the economy at that time, and how hardheaded I can be…. Walked out of the dealership with a 0 APR at the exact price I wanted… (Oct 2001). Have patience and do your due diligence
LOL, YEA OK.
are you seriously saying that advice from 22 years ago is still applicable now? lmao
@mikeydude750 Read it carefully, everything he said applies more now if anything, other than the interest rate. The economy is in the shitter, cars aren’t selling, people are defaulting on their loans and handing keys back, it’s a buyer’s market now. Dealers have too many cars in their inventories because nobody is buying. The most important negotiation tool is the ability to walk away, if you make it clear that there are other dealers that have the same car and you don’t need THAT specific car, they’ll be far more likely to negotiate. All of his tips still apply, don’t discount advice just because it’s old, sales tactics don’t really change much.
All that you said is true. I sold cars for years and sales tactics STILL haven't changed. Only the prices have changed....cars are much more expensive! Do your homework.
Trying to buy a car is giving me so much anxiety. It makes me feel noxious that dealers want to rip me off. Thanks so much for all the information.
And that’s how they get you. Research take a check with your set price and bring it to the table and have them talk to or bring the sales manager to the table. Worst case scenario they tell you no and best case scenario you get your deal at the price you set. I’ve done this a couple times, you’ll get denied but it saves you your valuable time from going back and forth at the dealer for hours and hours
The best advice I seem to be getting is, know what the car you want is really worth, know how much you can spend, demand the out the door price, and be willing to walk away if the out the door isn't in line with the first two items. Then you can go in confident and know what to expect. If the car is a fair price and in my budget I'll buy it. If it isn't then I'll take my business elsewhere. And it's perfectly fine to shake the salesman's hand, thank him for his time, and walk away without a car.
I'm sure you've bought by now, but remember for the future this is a business. They need to make money too, and they will, you just want to try to keep as much of yours as you can.
Why do you think so many Tesla's are sold.
Nauseous*
They really do hate it. Drives them up the wall. I bought a car a couple months ago and did everything I learned from these videos and they were very frustrated
I can’t wait to do this myself. The idea tickles me
Did it help you get a better deal? Or was the salesman just frustrated.
@@TraderDan58if they were frustrated then it worked.
😂 I'm glad you frustrated them. I will do the same soon 😁
Did the same thing beginning of October! My salesman was sweating! He asked me why I cared about the OTD price 🫣
My mom told me when I was a youngster that integrity is the only thing someone can't take from you. Ray thank you for your full disclosure and utmost integrity sir.
Don’t thank him too much, he did this that shady shit for 43 years
You are correct it is pretty shady shit and I commend him for disclosing all of the foolish dealership games
@@jp3047 - He robbed people for 43 years. Him telling you how to bypass the BS is now profitable for him and doesn't hurt him since he retired. Great to get the tips but let's not act like he's Saint Ray doing this out of the kindness of his heart. He's using TH-cam as a 'vehicle' to advertise his website and make ad money. Nothing more, nothing less.
Another good bit of advice I got years ago from a former car salesman, is never negotiate face to face w/ a salesman. You're at a disadvantage by playing on their home court. Find the vehicle you want, go home, call the lot and ask for the used or new car manager depending on intent of purchase. Offer them an 'out the door' price. They'll take it or counter. If they won't play ball.....walk away. Don't get married to a vehicle. This works especially well if you can find sites that list how long car has been on lot and you can point that out. Obviously the longer they've had, the more incentive they have to move it 'over the curb'. I got a smoking deal on a mint VW Sportwagon this way. (it helped that wagons are not popular in the US)
Get it in writing in fax or maybe email after the verbal. I learned that the hard way. Needs to be in writing
Yeah they often BS people to get them in the door. Sometimes they don't even have the car anymore and tell you they do
You haven't even driven it then over the phone.
I sold cars for almost 30 years. During that time I also did manage the F& I office. This gentleman in this video is pretty much shooting it straight. When getting a price, work the deal with and without your trade. The price will be much more accurate. Shop at least 3 dealers for the best prices. Never commit to your salesperson whether or not you will finance the car. Do Not, Never buy a car on line.
Wdym on the line?
Thanks for the tips. At the end of your comment you mention not to purchase a vehicle online, is there a specific reason to why and what if the car you looking to purchase is out of state
@@E-Baby1988 Buying a car on line is buying blind. I personally like to see, inspect and drive the car. This practice will eliminate a myriad of sins.
Thanks Ray. Having a pre-approved loan and rate in your back pocket is a pretty liberating experience. I sit down in the F&I office knowing I "don't need their money" (no rush to buy) and put the dealer/F&I in the position of beating the rate I already have in pocket. That's a big help and a great idea.
Best thing I ever did. The dealer told me I couldn't get a better rate anywhere. I pulled out the check from my bank and he was so shocked he couldn't say anything.
I have paid cash for my last 3 cars, so I don't need financing, fortunately.
@@someguy7805 same here!
@@moondog3056 that is awesome!
Love this! I did this exactly how you said and got a fantastic price with only 1 BS markup that I negotiated down. Got a great rate and terms for the loan. Even traded in my failing Kia Sportage for more than anticipated. All thanks to your info.
Thanks Ray, I watched a lot of your videos before buying my 2022. Boosted my confidence 100% in getting the best deal in a bad car buying climate. As a woman I feel we get taken advantage of at dealerships.
I bought a used car today and shaved off 4.35% interest and over $5700 between interest and price taken off the car! Leverage the buy rate of the loan!! The sales manager wanted me to give me a rate of 9.99% for 60mos. I knew at my local credit union I could get it at 5.70% but he wanted it financed at the dealership so he knocked it down to 5.64%. Amazing video!!
I've been at Car Dealerships who flatly will NOT tell you the cost of the Car. They will just ask - _What can you pay?_ or - _can you afford $300/month._ But the cost and the details were always missing.
Run for the door!
Yep just say good bye and leave
The dry erase board is very helpful. Seeing what your saying really helps. Thanks.
I agree.
I appreciate this channel SO much. I started a career in auto financing and the training was scattered so listening to your videos is helping fill in the gaps and better teach me. Thank you!!!
This is a perfect step by step on how to do this . I learned these methods by having a friend who sells cars show me. This is a better breakdown on how to do . Great job Ray ! Great stuff !
I hate buying a car. There's too much the dealer can do to you to get over on you. It is frustrating.
Lots of great information there
I’m going through the vehicle buying process right now I’ve already had to walk out of two dealerships because they wouldn’t disclose all their hidden charges
They were very aggressive
Thanks
Just bought a used car today and i used basically this and kevin hunters approaches and i got a sick price. Been monitoring this car for 2+ years nationwide and finally snagged a deal well below kbb and every other price ive ever come across in 2 years. Gm was pissed so ik i fought tooth and nail. Its worth it folks! Its your money. And dont buy what you cant pay off within a year!
@seismicwhale5371 I *wish* I could pay odd a can in a year. Unfortunately, I'm on SSDI, so survival is paramount.
*ARRRGH* PAY OFF A CAR IN A YEAR. Darn tablet!
I love your channel! My son had to buy a car recently, so I shared this video (and others) with him. Sadly, he was in Chicago and I coudln't be there with him. The car was a 2017 Kia Forte, listed for $10,897, which was comparatively low for the market. The dealership told him the price was actually $14k for the car, because they had "service fees" that they had to recoup. the salesperson then held up the car fax to show him what had been reconditioned/repaird. WTH? I've never seen a dealer add those fees ONTO the price of the car? I'm sure they saw a young man walk in, and did their worst. He bought the car for $11,500--much to my chagrin. The dealer still insisted that they HAD to add those fees. SMH....slimiest deal I've ever heard of. Sadly, my son wouldn't get up and leave.
He can report that dealer to the Illinois Department of Financial and Professional Regulation (IDFPR).
Really good information for most new car buyers. The one part that I feel that is important is to do all of your homework before you walk out of your door. A few hours spent on the internet will at least put you on a better footing with a dealership with some knowledge. In my case and an F150 I bought this spring was the MSRP of the vehicle and the approximate actual dealership cost. As I was paying cash, it was easier but I did set a max total out of pocket and in doing that I actually bought the truck for about $3K less then that amount. Homework first!!!!
I bought my first car in 1992. I’ve owned a dozen cars in my lifetime and it took me several transactions and a great deal of money to learn the lessons that Ray has laid out here in just a few minutes. Vehicles are a commodities business. Unless you are buying something unique or rare, chances are there is another dealership in your town selling that same car with all the same features. You like a car? Fine. Make sure you like the deal for the car, too. Do not trust those who work at the dealership. They want your money. You have to be a strong advocate for yourself to avoid being taken advantage of. You do not know what a good deal is until you have shopped around to other dealerships.
As a first time car buyer these videos are my go to!! Thank you for the work you are doing here!!! This has been so helpful! I feel like I have more control when it comes to car shopping!
Thank you for sharing your knowledge with us. We are not buying a new car till we get with you all. We've done everything wrong in the past. Not ever again. Thank you both!
Another tip in regard to “before you go” call your insurance carrier so you know what it will cost to insure for full coverage. Weird how folks forget that one.
Early payment penalty. If they put an early payment penalty on you. Say Adios. My bother just did that very thing and they immediately dropped that provision.
I concentrated on the out the door price in order to keep it simple and not fall for the shell game. My old car went to Carvana. Didn't get top dollar from Carvana, but it is a stress free sale. So I pounded the dealer on the OTD price, had them remove most of the added on dealer crap, and arrived at the final down to the penny cost. All good.
Sir…. You have NO IDEA how helpful this is. You are a great teacher 🍎
The more, the merrier! Keep these informative videos coming. We all need to be prepared when we step into the dealer’s showroom !
DO NOT trade anything in. sell it yourself. dealers are liars, period.
not liars... better-educated car business people.
@@erniesteele3164 did your daughter marry one of these scumbag dealers? you certainly are giving the crooks love.
Depends on the difference with tax. A trade-in reduces your vehicle tax, but you have to play taxes on any money earned on selling your car. If selling your car nets you more then yes, if the net differences after taxes doesn’t make sense then trade it in.
And everyone car salesman knows buyers are liars. I haven't sold a car in 30 years but every person who bought a car lied to me
@@Yakomoemany homeowners do to when buying new windows. Not all but many do and probably for good reason, a lot of those companies will fleece you. After 30 years in that business I’ve heard them all.
I have followed the info from your videos and I definitely saved a lot of money, and feel like a got a better deal. Also the dealer remained pleasant, but I know he was frustrated, and the GM of the place absolutely hates me. Especially because I smiled the whole time.
Thanks to Car Edge, i went into the dealer back in April to buy my new Hyundai Santa Cruz armed with all the tools and confidence i needed to make sure i got the deal i wanted. Thankfully Hyundai was running a 0% interest promo so i dodnt have to worry about APR, but i did make sure i saw the OTD price before even negotiating. I saw some dealer added fees which i immedialty had them removez and finally was able to get my car for 1k less than MSRP along with working them uo from a lowball offer on my trade-in by pulling up similar vehicles, with higher mileage than minez that they were seling at their dealership for alot more. So thank you Car Edge!
Sorry to say this but $1000. Less than MSRP is nothing, they still ripped you off. I know, I worked as a Car Salesman while I went to College and I know all their tricks.
I shop around for an MDX so i got numbers from 2 stealerships, i told the other one that the price i was getting was lower and so the monthly payment on a lease (less than 4% apr) they said we’ll match it, i go in and they start trying to pull shady moves to make me pay more monthly. I walked away, hopefully my experience can help you, always get 2-3 quotes for the same car, that will give you leverage, specially on this tumultuous time for the car industry 👋🏻
You two are always so informative. Thank you so much for all you do. I will feel much better going into a dealership in the next few months. I hate buying a vehicle. Thanks again and keep it up.
I appreciate this channel SO much. I started a career in auto financing and the training was scattered so listening to your videos is helping fill in the gaps and better teach me. Thank you!!!
Good video... I did the same as you for almost 30 years...Every sales-related job in the dealership when it was a straight commission position and you still got a "demo"
Remember: We are fifth graders who never graduated, so we need to see these contents over and over, and over!!!😂😂 Thank you!! Very helpful!!
Probably the best CarEdge video- short, concise, valuable info. Thanks, Ray.
Thanks so much! We're glad you found the video valuable and concise. Ray appreciates your support and kind words! Stay tuned for more helpful content.
Out the Door Price.. in the UK it's called 'On the Road' price
Very well constructed and well delivered presentation.
These are awesome tips, I would say required material before you buy. The tenor of the negotiations changes drastically when you start dealing in OTD numbers. It's like the term "OTD" makes them realize they're not dealing with a dummy. Also, in my experience the dealer will always try to beat the APR on your pre-approved loan, so it's to your benefit to get this done before you walk into a dealership.
If you want to be in power of the negotiation. Best advice research what your dmv fees are and taxes and add it, next if you’re set on a specific car do research on the best price you can get (google is your friend), once it’s all set and done if you have the cash get a cashiers check or if you’re getting a loan look for banks who’ll give you your set price on the car and take the check with you and tell the salesperson that is your purchase price and the check is ready and to run it by their sales manager. You’ll get denied but there’s dealers who will take it. Cash/check is king and they won’t hassle looking for loans. The more firm you stay on your price the better deal you’ll get
Thanks! Yes, more videos like these (shorter length).
Excellent, short and to the point. Thank you!
GREAT ADVICE. The dealer will almost never disclose buy rate as in that situation the finance manager is operating as a loan officer. for clarification< ANYTIME YOU GET A LOAN THERE IS A BUY RATE AND A SELL RATE> Bank loan officers do the same thing and that is how they make money.
I agree with you and Ray said that the buyer can never get the same rate as an individual going straight to the bank.... that's not true.
More useful than the "Buy Rate" is the customer needs to shop around and know what rate they can obtain on their own. They should start at their personal bank and a few others. Credit Unions typically offer better rates. I have had dealers offer better rates than my credit union when they hear I'm going to obtain my own financing.
How long would u technically have to be with a credit union to get pre approval and ratings?
@@Officialx_Sy
I would think a couple years so they personally know your banking history, regular deposits, no bad checks, etc. Obviously your credit score which indicates a longer history of creditworthiness. A pre-approval would also be very dependent on the vehicle, such as new (never titled), out the door price and how much cash you're putting down.
Good info for buying a common auto. It can take time and be exhausting.
Sometimes one wants a rare car and ya gotta pounce to get it (ahead of other buyers due to supply and demand) and most of this goes out the window. Those are fun transactions.
Keep them coming. Helpful and informative. Thanks.
Thanks Ray, actional information is always helpful.
WARNING ⚠️⚠️⚠️ ... Have your son do research on the engine. There is a massive recall on MOST KIA and Hyundai engines.
I like videos that are short and to the point.
Hahahaha
I paid 70k for my truck a month ago.
Carvana offered $63,400. Pretty decent
Caredge offered $34,600. They must just be running a regular old scam over there lol.
This was extremely informative thanks so much!! Especially with car buying experience being like it is currently
You guys are the BEST!! Thanks, yes very helpful...
Love your channel! My wife and I have watched a lot of your videos and even rewatched a few! This one like the others does not disappoint! Thank you for doing what you do!
Unfortunately the thrill of buying a new car can end quickly when negotiating on your trade-in. There is a difference between making a profit and trying to screw people over. Its extremely short sighted. You better know the value of your car and be ready to walk out the door if you sense they are trying to take advantage of you. I walked in the dealership ready to make a purchase and did my homework. Had my title, car emptied, both keys ready to hand over with a great credit score and they still tried to screw me. I was offered 7300 on a trade-in that Blueblooked for nearly 11K. I laughed at the guy and told him id rather let it rot then give it away. I was able to get them up to 10K but only after they were certain I was about to leave. It left a bad taste even though I like the car.
For a variety of reasons, I am so grateful to be a Canadian. It is against Canadian law to charge MORE than MSRP. I bought a new 2024 CR-V last month, over the phone, for MSRP. Paid cash. NO added "dealer features". A lovely experience. What a nightmare the U.S. new car buying experience must be.
I’m in the US, I’ve never paid MSRP for a vehicle, ever.
I’ve always paid less, every single time.
Not to mention, MSRP in Canada is generally higher than the same exact vehicle in the US.
I’m grateful to be American.
hoser, eh?
Thank you Ray for this excellent educational video. "Words of gold" for us consumers. Carry On Sir! This is timeless information.
As a car salesman, service advisor and mechanic, this attitude has always stumped me. It’s not that you know these things but that you expect to control a sale where you want to buy something from me thinking I “have” to do business with you. I have left so many people setting at the table while I walk away and sell or service another customer, I’ve become known for it.
That's your right too, pal.
Cool story bro.
Asshole
I'll add one thing. Don't disclose you are paying cash or you have a loan pre-approved until you agree on a price. Despite what popular opinion is, dealers don't like cash deals BECAUSE they make up some of that profit in the F&I office. They want you to finance through them. Get your out-the-door price finalized before you tell them you have cash or financing already secured.
Also, tell them NOT to "shotgun" your application to multiple banks. THIS results in multiple inquiries on your credit report. I worked at many dealers in my 10 years in the business. This is a common practice for them to get the best buy rate. This is also why getting pre-approved before you go to the dealer is useful.
Extremely informative video! As much as I wouldn’t want anybody to have to go to Washington DC, as consumers we could use a lot more content like this. Thank you for posting!
Thank you so much for the info that I always keep on watching your videos because of my plan to buy a new car. I will always be in need of your advice and hope to talk to you when time comes to buy one.
Great delivery and important useful information packed into this short video. Thanks.
Before 2020 when money was still free you’d be correct, but with interest rates up and the average new car price through the roof those same leases you could get for 400$ are now 700$ with 5000 down.
Yep, found that out yesterday. When he showed me the lease rate I was like nope and walked away. Ended up shopping around online and found the car I was looking for used and bought it.
If I understand correctly, are you saying the out the door price is the price of the vehicle and dealer fees and taxes? Then after thats established, you would have to add on finance fees and any add-ons you purchase such as warranties, which would then be figured in step number three?
Outstanding & concise information. Keep up the great work!!
Thanks for the info. I’m deciphering information from your videos to educate myself on how to negotiate a vehicle that I ordered with a trade. Hopefully I can get ahead of this build date is Monday, December 18. 2023.
Just found you guys and your information is great! Thank you so much for the education. I’m the kind of person who buys a car and keeps it forever. Had my Subaru Outback for 20 years and loved it. Finally had to get a new one during Covid and got an ok deal on an Impreza because no Crosstreks were available. Have had the Impreza for 3 years and really would prefer the height of the Crosstrek. Looks like more inventory is available. Any suggestions on best way to get one? Thanks a million. And I’m binge watching your videos before I step foot into the dealership.
This was a much better and more useful video than we’ve had in quite awhile.
Great video! I wish i knew this in 2020 before i got my car from the dealer.They got me big time on the financing but i refinanced about 2 years later and now i'm really happy.
The most info packed into one video yall have made.
I’ve been on a CarEdge videos binge lately. Gotta make sure im prepared before i purchase a vehicle next month lol
One interesting thing I noticed the other day when doing the payment calculator was that the 60 month monthly rate was cheaper than the 72 percent rate, due to the higher interest rates. It's crazy to thing that it's cheaper and faster to pay a car off in 60 months compared to 72 months nowadays.
Finance companies don't want to baby your loan forever, they want to get rid of you as quickly as possible so the incentive is to encourage you to take the shorter loan by offering a cheaper rate. That's the way it's always been. Based on your last statement, I don't think you understand the concept of compounding interest. Everything will be cheaper the faster you pay it off if it's borrowed money. The bank owns most of your possession until you get to the point in the loan where your payments go more toward the principle cost, and less toward the interest, and that usually doesn't occur until almost the very end of the loan term.
Just bought a 2024 Yukon following your lessons. OTD price was my mantra from the time we walked in the door. Had the information on my trade and they matched Carvana. But, when I asked for their contracts on the F&I stuff, I was told they didn't have that information, so I walked on all of that crap. One was a $600 five year oil change package. Sounds good? Nope. I checked and the Yukon needs an oil change every 7k miles or one year. I'm retired and live in Florida. I drive 4k miles a year. Waste of money if I took that deal. Thanks for giving us great information for the car buying experience. For once, I left without feeling like I'd been screwed.
Great info, I used this same info on my last purchase...tks
If asked to buy from the finance guy the paint protection package,id go to a separate reputable shop that does that,the PPF AND CERAMIC COATING,they pushed us making us work faster to get the car out quicker for the customer,for us to apply the ceramic coating
Ray, I avoid 100% of the extreme frustration dealing with Stealerships. Just leased my 2nd Tesla. Loved the experience.
Yeah, for most is sure is but it makes more sense on these disposable EV death traps.@TheRealCatof
@TheRealCatofnot if you buy the car at the end of your lease
@TheRealCatof Not everyone likes cats.
@TheRealCatof You mean like financing it, paying more every month and being underwater after the term? Yeah, that`s some smart advice.
I just bought a new vehicle and told the sales person if add ons like paint protection and such were brought up the deal was over and I was leaving. Well guess what, they just couldn’t control themselves and I bought the same car down the road.
I used to sell cars and man you are apot on , everything you said is helpful to those who do not know.
glad they have to provide all these infos in eu as standard and have to answer that when asked, except buy/sell rate which is mostly regulated from the ezb
Thanks for the video very informative and needed for me to go out and buy a car
Very helpful. thanks. The more you write on the board the better.
Can't see the value of my car on your website because I can't select Al as a state. AR is as high up as I can see. AL is behind the top part of your screen.
This advice might help most car buyers, but some of us don’t fit the mold. My current car is 24 years old, so trade in value is nonexistent. Since I haven’t bought a car in such a long time, I have cash on hand for a new one when I decide to get one. So financing is a nonissue. So how do I get the best deal under these circumstances?
Thanks Ray. I 'm going to trade my car in very shortly. Quite honestly, I would rather get a root canal. This information will help a lot.
This is great information: quick and concise!
More please! Been having very bad luck with cars past month BUT have made some amazingly good decisions and saved many thousands thanks to u guys since, thank u!!👍🙌💪
Very informative video. Thanks a lot and please keep creating more insightful videos like this.
Thank you so much for your feedback! We’re glad you found the video informative. We’ll definitely keep creating more insightful content like this.
Went to your car edge sell site and highest offer was 3k less than my lowest offer from a dealer and half as much as I could sell it for PP. Way to go.
Some auto manufacturers are offering attractive finance rates (i.e.) 2.9 or 3.9% on a 60 month contract. If the dealer tells you that they can't give you the max Trade ACV because you are already getting the lower rate from the Mfg. is that a bunch of B.S. ? I would think that one has nothing to do with the other?
This video is super helpful. Thank you so much
Bought the new 2024 rav4. I had make them discounted about 7 thousand dollars from their bs markups and had them throw the convienece package and accessories for free.
Awesome to the point advice
What if I do not want to trade in a vehicle and I want to pay in full instead of finance? We have saved up enough to use savings to buy a car outright. Would the "out the door price" still apply?
Hi.
Love your video's.
I have a question. Does CarEdge supply the buyer with a Car fax report?
The reason I'm asking is because, I saw a vehicle in a Honda dealer in Yonker, NY which on CarEdge did not mentioned anything about the vehicle being in an accident. Please let me know. Thank you.
What's the best way to pay with cash if you want to avoid the finance dance? Just up front, I'm paying cash so give me your best price we talk or walk based on that? Or negotiate best price then say paying cash? Negotiate with financing then just go pay it off in one lump sum?
We had this exact problem. At the dealership we came to a price and shook hands and when it came time to paperwork we said we would pay cash in full and they all stepped back saying the agreed price is only if we took their financing. If we wanted to pay full on the spot it was going to be $1000 more / penalty. It was awful. I said if I go buy a tv that’s advertised as $800 and I have $800 on me Best Buy can’t turn around and say oh it’s $850 since you are not using our financing?
Thank you sir. I hope all this also works in Canada. Some of your terminologies are slightly different from Canadian.
When you ask if there is a prepayment penalty on the loan, how do you know if what they tell you is accurate? Is it written on the contract? Is it going to be in the fine print?