I've been buying and selling cars, motorcycles, etc for over 40 years, and everything you say in this video is spot on. Great advice for anyone looking to buy a car. And a good refresher course too for those already in the know!
Fantastic video. I had a horrible experience when a Cadillac dealership insisted I purchase paint and leather protector to be able to qualify for the lower interest rate. I really couldn't believe what I was hearing, so I left them an appropriate rating with General Motors. It's no wonder, the dealership called me back to try to make things "right".
You where never that important to a dealer and your car buying every 10 years holds zero weight with any new car franchise. Sorry to bust your delusional thoughts
Thank you Ari I walked out on 3 dealerships when they started planning the games. Bingo no car in stock we would have to move 6 cars to get yours out. Very powerful game they play. You gave me power to get up and walk out.
I work at a car dealership and I don’t mind telling someone where a car is located. However, what happens is a loyal customer that wants to buy it from us will ask where it’s located, I’ll tell them, and then they call that dealer and ask questions. Or they go online and see if I’m giving them a good deal. I’m not a commissionable salesperson, so generally I am giving them the best deal that I can without selling the car below invoice. They realize I am giving them a good deal and it doesn’t make sense for them to drive from CT to NJ to buy it there. They give me a deposit and I call the other dealer and arrange a swap. The other dealer tells me “we can’t swap that car because we have a customer that called here interested in it”. Now they aren’t going to NJ to get it, they aren’t getting it from me, and the other dealer is holding a car because they think that the person who asked for a great deal was a serious buyer. Rather than go through all of that just find a reputable dealership and find someone that you can trust, preferably someone who doesn’t solely work off commission.
I used to be under the impression cash was king at a dealership, since they don’t have to qualify you for a loan. It’s apparently better not to mention this when negotiating since this removes one potential source of revenue for the dealer. I have noticed that dealers add on unwanted profit enhancing features such as plastic trim pieces, special coatings etc. I spoke to internet salesman and he told me that’s the only way they sell the cars. Very frustrating trying to make a deal when these dealer add ones are forced upon you. Anyway, great tips Ari, thank you.
if you pay cash the Financing employee hates you even more cause their commission is now basically nothing for putting together the paperwork for delivery. but, cash deals are still less than 10% or 5% on average so they will get by...
Thanks for the info. I usually go to the dealership for oil changes and tire rotations because the price is basically the same as the 3rd party place around the corner. Also, because they are the only ones that can accurately check for and apply software updates (tcm, pcm, infotainment systems etc) on the car from the manufacturer. And all records are in the dealers/ manufacturers database.
I usually go to the dealer for service until I watched the tec drain my oil but not change my filter. The dealership tries to sell you services you don’t need and now I wonder what they do while you are not watching I will take my car to a trusted service technician from now on.
Get a personal loan from your credit union..buy your car cash and pay your credit union back. It’s always cheaper to deal with the bank than dealing with the dealer
Very true. I went this route on my last car purchase and it was by far the better choice. They wanted me to sign a 12.6% interest loan through one of their lenders. I took out a loan through my credit union instead at 4.7% and paid them the negotiated price outright. Dealershits have no respect for customers and will look for any opportunity to steal our money.
cooljamie76 You are giving false information, a auto loan has A MUCH lower interest rate than a personal loan. How do I know, I had both from my credit union. Auto loan 3% personal loan 11%. The lowest they have is 2% Auto, and 8% personal. I had 730 Experian. If anything the proper way to do it, is to get pre approved for the auto loan amount of the vehicle you want first, from your credit union. Then go to the dealership and negotiate the price, and tell them they don’t need your social because, I already have my finance company ready, we just need to agree on the price of the vehicle. or else I will take my check somewhere else, period.
I sold car for 2 years and found most buyers have NO IDEA or process on how to buy a car. This guy is right on. If you'll buy car from any dealership please do your homework before walking in, will save you lots of money.
I was told by a dealership they would be the first to get the car I was looking for. I knew this wasn't true since I had already been to another dealership and they had the car in transit. If they aren't honest right off the bat, that's one less dealership I have to deal with
Subscribed! Good info. I once had a customer who was the GM at a dealership. I told him about the less than friendly negotiation I had on a truck I bought at another dealer. He laughed and told me if they don't get mad at you then you paid too much for the vehicle. That has seemed to be good advice over the years. You're not there to make friends, you're there to by a vehicle.
When I was young and dumb I almost got buried in a 2008 Lexus ES 350! The salesman filled my head with all these promises and showed me so many numbers I got lost! Anyway long story short my interest rate was 17% and my monthly payments was 487$ a month for 4yrs!!! Luckily the bank that was financing the deal canceled it because the car was to old and "some how" the year of the car was mistaken for a 2010, when I was adding the car to my insurance my agent told me the VIN I gave her was to a 2008 not a 2010!! Thank God I got out of that scam smh!!!
Just saw this vid and had to like. I just had a rough experience checking out a used car only yesterday, drove 2 hours to dealer ship and called before hand advising I have a pre approved loan from my CU, they said it's np and come in. I test drove the car and was ready to seal the deal when the finance manager swooped in and said they can't sell me my car with my own financing. He said I had to through it to them and advised my APR was 3.74 which is a bit high for my 825 credit but all the same. He advised the APR will rise to 5.99% but all I have to do is refinance with my own CU to get back at my 3.74, I walked. I drove home with a sour taste in my mouth, felt really sketch. He also only dropped that bomb on me after I declined on their extended warrranty and gap insurance..
Don't trust anyone. Buy used and have the vehicle inspected before purchase. I recommend everyone purchase an OBD2 scan tool. Do your research and make sure the vehicle you want is a reliable vehicle, and isn't a beast to work on. Don't buy luxury vehicles unless you're rich. Pay in cash. Stay away from the Stealerships! Btw, learn how to do basic maintenance yourself and I hope you know an honest mechanic. Peace
Sick M4. Please keep these videos coming. Good editing and unique content. The subs will grow eventually and the views will too, this is all timeless advice.
I just started this video, but you can see how dealerships change their tune, sometimes for the worse, when you mention you already have financing from your bank. Always check your local bank, or even better a credit union. I had one dealer barely move on the price of the car when I mentioned I had financing approved from my credit union. The salesman even admitted they probably couldn't beat that credit union(largest in my state.) They wouldn't budge on the price and when he came back with a new price sheet showing a lower price(written in pen, not printed out like the previous sheet) I walked. He was trying to get me to sign a price sheet to take to my bank showing a higher price at the bottom instead of the slightly better price I kept pushing for. I walked. I had another dealer say "when buyers don't use our financing, we add $2,000 to the price." *Adding $2000 to the price can be a good thing if the car is perfect and what you want. Just like those TV commercials that say $3000 off or so much percent APR. Sometimes the APR deal is better, sometimes the $3000 off is better.* Another instance when I bought a used Honda that was in really great shape from a dealer that had negative recent reviews, but some of the reviews mentioned the car they bought. I went there to test drive an early 2000's (W210)Mercedes E300. It was a piece of junk that needed a lot of work before it could be a reliabe a daily driver. This used car dealer seemed to LOVE selling used luxury cars that were not 100% daily driver ready. So after test driving the Mercedes, I saw a Honda Accord. It was years newer, low mileage for the age and in great shape. I test drove it, took it to my local mechanic and agreed to buy the car. We settled on a price and then next day I came back with a certified check for the price. The dealer tried to add a document fee(we had no paper work from the first visit I made, just a verbal price agreement). I couldn't afford the car with the doc fee, but I told him I'd give him $100 more and leave him a glowing review. He let me take the car right then and there. I just had to come in with $50 for a doc fee(down from his $250) within a week and he'd give me the title. It was worth saving $200 just to give a good review when in reality I was just happy to get a reliable car. It was over the state line so I paid taxes at my DOT when I registered the car.
That most likely would not change things. There would still be sales people. There would need to be delivery sites. There would likely not be competition which would most likely result in higher prices for those who understand how to negotiate with a dealer.
The last tip makes since to me now. I bought a new $70,000 truck last year and had to wait many hours to get the deal signed by the finance manager..... side note: I have almost perfect credit 825 FICO, so it wasn't that..... I gave a poor review of the service on that aspect only and had the dealership calling me regarding it BUT they never offered anything in exchange for a better score so I stuck with the poor evaluation. I couldn't have been an easier sell..... Made an appointment to drive the truck, agreed on the advertised sale price (it was a good deal when comparing 3 different states) and said OK, Lets do this and the quicker the better. 5 hours later. :(
I can’t do car payments. I haven’t had one in over 13 years with that being said. Yes I’ve had the same car for that long period of a time and it runs well. Paid for it in cash.
Bought a used car from a dealership with cash years back. The guy went to get the financing paperwork and I told him I was paying with cash. He was not happy. Immediate attitude. He became a real prick when I refused to pay $800 in fees.
Excited to see a local channel like yours is growing. Great tips btw. I will take the tips with your Audi q3 video at Audi Brookline and try to negotiate while ordering a new q3 prestige even when no one seem to have any q3 on the lot at the moment. Definitely will report back here and let you know it went.
Randomly stumbled upon your channel man. Great first impression. Straight to the point, unlike a lot of TH-cam guys who go through a whole life story before they start the actual subject of the video 6-7 minutes in. You earned another subscriber. 👍
Just bought two new VWs. Dealer begged for all 10s in the survey. Now I know why! Live in MA bought in NH. Wanted to pay cash for both but ended up financing them to get 1k rebate each. Again, now I know why they pushed it! I don’t care, will pay them off right away. Thanks for this advice!
My 2012 Nissan Frontier V6 4X4 SV King Cab was a 3 year lease then I bought it out afterwards. ($28k in total) I haven't had a car payment in going on 8 years with fee oil changes (every 4k miles) & @ appox. $40.00 per oil change that = $1210.00 in oil changes so far. It's super rare to find a dealership that includes that in their car buying/leasing experience. but as far as I'm concerned, it works for me. I'm in outside sales & I get the oil changed approx every 5-6 weeks.
Good advice. Also know what type of car loan you're getting. There are generally two types, Pre-computed or Simple Interest. The big banks usually only offer pre-computed. Never, ever get a pre-computed loan. With this type of loan the interest for the entire term of the loan is added to the beginning balance. Means if you try to pay early or refinance, there will always be a pre-payment penalty. You'll be told that there's no pre-payment penalty, but there is, it's hidden. For example, say your loan is $40,000 for 4 yrs, the interest for the entire term of that loan would be about $3000 if your rate is 3.5%. They'll add that $3k to the loan balance on day 1. So, from day 1 you owe $43k, not $40k. Say on day 2 you win the lottery and decide to pay off that loan. The bank will say, "great we'll give you a discount of $1000, so if you pay in full today you owe only $42K, not $43K." That extra $2k is your hidden "pre-payment" penalty.
My son tried to buy a new honda from a local so cal dealer ...he went for a test drive told the salesperson what model etc...no return call...he went to 2 others and same thing ended up driving an hr to get the car he wanted at a price he wanted ..just had to pass 5 other dealers who knew the kid knew how to buy a car..he got money and dont mind spending on things he likes.
Excellent information. Most dealers make VERY little on what the buyer thinks is the battle they go to the mats on, the new car sale. Dealers make a mint on warranty work, service, and used car sales. And as he said, but I want to amplify, is that the leasing and financing is where a dealer makes everything. Think you won when they sell you the car for $500 over cost? Well, the financing makes them thousands. No wonder they’re smiling when you think you did so great
Ari what if you Finance your Used car its under warranty you notice rear tire has slight slant to it. Do you have some alingment shop check it out then go back to dealer if theres a problem found before warranty expires and can you legally void deal at that point.
I really like the video and all the tips! I was in the car business, and you’re right on almost everything. But not to say you are wrong in all states, but in most, the vehicle cannot be canceled once the vehicle is REGISTERED. Does not matter If you drove it yet. Dealers have dealer plates, and they’re not considered registered when a dealer owns it. But once the car is registered to you, there’s nothing you can do but trade the vehicle in. Now, people saying, “the car looses 5k as soon as you drive it off the lot”, is also false. First of all the reason people think that way is due to the fact they are paying sticker or over invoice. That means that even sitting brand new in a showroom with no miles, it’s worth whatever the invoice minus hold back (dealer discount) is. For example, say the sticker is $34,000 and invoice was $28,700, a dealer would have additional hold back (usually $500-$1,000) of $700. That means the vehicle is worth $28,000 as far as worth is concerned. So if you pay $30,000 for the vehicle, once it’s REGISTERED, you’d of lost around $2,000 if you tried to bring the car back. If you payed sticker on this car, you’d of lost around $6,000. Now that’s of course if you got rid of it immediately. I mean you’d loose a little selling back to the dealer, but if you made a great deal, you could easily break even. On my last car for example, the dealer lost $1,672 just to sell me the car. It was the last day of the year, but still, I always pay under invoice. So if I sold it today, I’d make around $3,000, most people don’t know what the invoice prices are. So, in short lol, you do not have to drive the car off the lot to lose money! But, if you know what you’re doing, you don’t have too!
M Rob no, dealers don’t have to tell you what invoice is, or holdback, or any dealer incentives from the manufacturer. However, you can find it online for most vehicles. There is so much more to it than just price. Lots of times people think dealers are trying to rip you off. But that’s not always the case. Let’s say you have a car with a $30,000 MSRP, it’s not a special or limited car so invoice is not gonna be as far spread as the original comment showed. Let’s say Invoice is $28,750. Holdback is about 2.5% or about $720. You would think the dealer can sell it at invoice and still make $720 in profit, but that’s not the case. The dealer probably floor plans with the manufacturer. The car has been sitting on the lot for 4 months and we have to pay floor plan interest on it for all of that time. Let’s conservatively estimate the interest at about $120 for the 4 months. You’re now at $600 in profit. We have to prep it because it comes covered in stickers and has no plate brackets. Shop costs are $75. You’re now at $525. We have to detail it which costs another $75 and you’re now at $450. We have to fill it with gas for about $50. You’re at $400. Gotta pay a commission to the salesperson. Let’s say that’s probably $100 depending on what his minimum commission is. You’re at $300. Management gets a bonus off of the sale. Let’s just estimate that at $100 for the car. You’re now at a profit of $200. Were probably gonna give you an oil change for free on it. That’s $40. Now we are at $160 in profit. The lead originated online so the BDC rep gets $50 for setting your appointment and you buying the car. We’re at $110. At that point you better hope that the manufacturer has some sort of stair step program, and that you meet it, because at $110 in profit how are you making payroll and keeping the lights on? Absolutely dealers don’t need to mark up a car by $8,000. And some of them do. But a lot of times people start arguing because they want their payment to be $50 cheaper. That translates into lowering the price by about $2,000. Where in the figures that I just described do you come up with $2,000? And when you say no, the customer goes online and roasts you on 8 different review sites and makes it seem like you tried to rip them off. Car dealerships are a business just like any other. You have to anticipate that they are gonna make some profit.
Question, I agree with you on points 1 through 6. But how does #7 help a customer get a better deal? If you get a survey is because you bought the car, you shouldn’t buy a car if you’re not happy with the service you received. Keep going with your videos! A lot of good information is provided, I’m a big fan! 😄
Good job. The interest rate detail is some of the best info to save money. I’ve negotiated a purch price then told them I wouldn’t buy unless I got the wicked low interest rate I wanted. Picked the best one I found online at the time.
@@josezaragoza3188 You're paying premium for something that is free and is of no appreciable benefit? Send some of that money to me. I'm running low on cookies.
Congratulations Ari. Question, the typical discounts and incentives dealerships offer say that in order to qualify for them you must finance through them. So if I get preapproved from my credit union and the dealership can't or don't want to match it, am I out of luck in getting some of the discounts or is that negotiable too?
if this is possible...finance through the dealer...then get the credit union check and pay off the dealer financing...you got the incentives and are using the credit union
@@chadjones6313 I looked into this. You get financing through the dealership. Then you apply for a personal loan at your credit union and use that to pay off the auto loan and take advantage of the lower interest rate.
I bought mine at the dealer a few days ago. I have 90 days insurance from them free, and If they steal my car within first 5 years . I get 5k back from them . Half of what I payed. They filled up my tank and detailed my car . Not bad. I payed cash
The number 1 thing they don’t want you to know is actually the “buy rate” money factor on a lease. They hate it when they can’t markup the MF without you knowing. Also the doc fees can’t be negotiated in some states for some dealers.
Frank LaBarca the buy rate is essentially the minimum interest rate that the banks will allow them to charge. They are free to increase the rate above the “buy rate” value all they want and they don’t even have to tell you they are doing that. You want to get them to give you the “buy rate”. Check the edmunds forums for the current buy rate for your particular vehicle. Here is a video I did that explains the basics of leasing. th-cam.com/video/lFrVUOJVS3M/w-d-xo.html
I don't buy new. I buy low mileage recommended vehicles using consumer reports and other helpful websites and have a competent mechanic check the vehicle out. I get my own financing by shopping around. I wouldn't go in a dealership if I just needed directions.
No sense to buy a used car if you can buy a new car at the same price. Factory rebates on new cars plus a 0% rate can lower the price of a new car to used car prices. If you have excellent credit this is possible on many cars
John, we paid less for our new (close out model) 2018 Toyota than I could find for a low mileage used one. Plus we know the history and have the full warranty. But yes, definitely do research before buying any vehicle today.
A detail that is never mentioned is the padding into the new car invoice that is reimbursed to the dealership at regular intervals, these pads are hidden to the salesman so that his commission is exempt from the added profit !
WOW!!!!! Excellent tips Ari. Good stuff. Its almost like your throwing yourself under the bus when you give us these tips. Thanks again. Keep the videos coming.
Jennifer, as long as you can do all the credit pulls within a 2 week span, the bureaus group them into a "car buying" pull where they realize you needed to pull because you're shopping. I believe you can research this a bit further online on Google as well..
Best option is finance through a credit union. I don't know where you live but publix federal credit union is one of the best. No harsh credit pull. A score 580-600 with no credit history or any sort can give you a 20k. Best rates and payment options, and comes with perks and ur own personal line of credit where u get money back after each payment.
Nice informative video! My last car got better price if I financed the car. Asked me to not payoff for so many months. Right. I paid it off in the second month of owning the car.
This is always the best way to the best price. If you ask how much is the price if I finance, and how soon can I payoff? A lot of dealers will be honest and say 60-90 days.. Some banks have an actual minimum open duration though Robert like 90 days.
After buying a new car at a dealership. I received a "confidential" survey. Most of my scores were between 5-6. The salesperson called me and started yelling at me, "Why did you give me low scores. The finance person and I lost $10,000 in bonuses." I told the salesperson that you got what you wanted and I got what I wanted. It was a "fair deal, not a great deal."
Sometime obtaining the loan from the dealership may not be such bad idea. Make no mistake, shop and compare the rates with major banks/credit unions before the “wheel and deal” process though! Dealing with high volume dealership(s) may help the process in negotiating for that great (or fair) deal. Recently took delivery of my brand new financed (G 30) BMW 540i xDrive with M Sport package+, along with other great options/packages. Basically, negotiated only out-the-door price and display “take it or leave it” attitude and ready to walk out of the showroom if you sense there is/are shenanigans during the negotiation. Furthermore, negotiate towards end of every quarter (March, June, September and December). BTW, my finance rate was under 2% during the manufacture promo. And....remember, selling luxury vehicles have higher profit margin for most of the dealerships.
Petie definitely agree with you here. You've got to be aware of the rest of the market when making these decisions at the table for sure. Dealership has access to the best rates too, just a matter of them not being molested when sold to you.
Stock availability is based mainly on if the dealership is family owned or corporate. Good idea for people to have at least some sort of pre-approval with a long term bank or credit union. The Doc fee isn't necessarily negotiable, dealerships can get sued if they charge different amounts to different people. Best advice I can offer is buy a car you know you can afford, have a set payment range in mind and dont forget to consider future maintenance cost (regardless of where you go).
You have to be a car salesman. Doc fees are negotiable! Who’s going to bring legal action? States req doc fee but don’t set prices. Doc fees range from 75.00 to 400.00. Up to you how bad you want to be screwed. Tell them the deal is off and watch how fast that doc fee comes down.
@@lanif740 an example being after hurricane Katrina, it was a bad idea to buy a used car in Texas for a long time because there was a good chance it was a car ruined by the storm surge and flooding. The salt water corrosion alone...
Another trick, if you have cash, is to not reveal that fact and let the dealer presume you will be financing through them. Hen asked be evasive. Look, they eat, sleep and live this stuff, so it going to be difficult to pull of, but if they are confident your plan to finance through them, the price will likely be lower since they will make $$$ on the interest rate. Heaven knows there is little profit in just selling the car. This trick worked for me although there were some unhappy faces when I pulled out a checkbook.
The dealership we bought our last car from had very incompetent mechanics. All the way up to the service manager. Beware of dealership service departments.
Buyer controls the dynamics of a car purchase Do your homework before shopping for a car Shop, shop, shop Never buy the first day you look at a potential car tell the dealer it’s a cash purchase If you feel pressure walk out NOT everything is negotiable If you’re not happy with the signed contract, who’s fault is that ?
Wow thank you for the tips, I had a feeling about a few of these things you mentioned were going on. Good to get an inside scoop, I did great at my last negotiation thanks to you and another TH-camr recommendations. I'll keep getting more smarter with your help for my next visit
Absolutley a Great video direct and to the point.With all the research I did on my new 2018 Tundra I was told the Doc fee was non negotiable. I got it for about $900 under invoice,but I think I could have Negotiated the Doc Fee of $299
The dealer lied to you. As long as you can show receipts to demonstrate oil changes were done at correct intervals (whether you have them done at a dealership or jiffy lube or DIY), the warranty is still good.
Good video. For bmws I usually order to spec so I never care about what’s in stock. Also if you go to the forums, you can find out the interest rate or money factor bmw is charging for that month without markup.
in general, little to no negotiation room when the buyers custom order the vehicle to their spec. Most dealerships like it b/c of higher profit margin. I guess having the right spec in the vehicle is your priority.
Thanks. Been thru just about every point you made at the last Ford dealership I visited. Interesting about the survey and what weight it carry's. Will use that against them next time I buy and see if that softens up the hard sell on everything. Car buying used to be fun but not now as seems all dealerships are playing off the same playbook now. It is much worse than it used to be.
When I bought my last car (2015 Infiniti Q50S), when I took delivery and got home (50 miles) I noticed that there were little bits of the sticky that held the plastic protection sheet that covered the body panels. I got the survey and I gave them 10 out of 10 on EVERY category but "make ready" and I gave them an 8 out of 10 on the paint. It wasn't but a couple of hours and I got a phone call BITCHING me out. "Why didn't you bring it back and let us wash it? "That's 50 miles away!" I said, it should have been right when I picked it up. "You should have given us a chance to make it right!" NO, I said, "that's what surveys are for." Really pissed me off, and ruined an other wise great buying experience.
TexasScout Noneofyourbusiness: what people don’t realize is that the survey is unfair to the salesperson, the survey is reflected solely on the salesperson. Unfortunately there are questions about everything else regarding your experience but the salesperson should not have to suffer because of someone else...
diesel6916; Lol, I understand your point but if the sales person worked daggone hard to provide the client with great customer service than for a little piece of plastic from the manufacturer’s plant that was overlooked and/or missed by the parties involved (including the client) so for someone looking for absolute perfection is in my opinion somewhat petty... granted, the salesperson should have explained to the client the dynamics of survey would’ve helped him.
hello dude Thanks for an informative video One local dealer in my town is famous for having a magic points system that rewards you every time you take the car to the dealership for any type of service in the first five years of ownership. If you collect XX number of magic points, you get a discount on your next purchase of a new car. It is debatable whether you would save more by taking your car to an independent mechanic rather than saving money on your next vehicle.
I think one of the very biggest things all dealers will do is to bend over backwards to keep customers away from their mechanics. You think I'm kidding? Stop a dealership mechanic out in the parking lot going to or coming from lunch and try to ask him ANY QUESTION AT ALL about a car's engine, transmission, or computer and see what happens. He will not even stop long enough to tell you the time. I am convinced if his thieving bosses spot any mechanic chatting with a customer, he may be in danger of losing his job. I'll always remember driving my brand new car out of the dealership only to come right back to the salesman with a question about how to set my very confusing car computer/navigation/cell phone gizzmo. He had no clue but told me to sit in the waiting room while he would get a mechanic out to my car to set it up for me. After 5 mins he came back and said the mechanic would get out there in a couple of minutes as he was just cleaning up after his last job. I told the salesman I would wait out in the car so I could watch the mechanic set it up so I would know how to do it myself. OMG ... The young salesman turned blue. He started with ..."uhh, sorry, we can't do that!" "This tech is actually a genius who is super smart!" "Believe it or not, as good as he is, he actually is anti-social and cannot deal socially with people" "That's a trait that many super-smart people have." "If he knew you were in the car waiting for him ... he is so anti-social and painfully shy, he wouldn't come out." "So please trust me on that!" "Stay in here with me while this poor guy sets it up for you ... I'll check in 5 more minutes, and I'm sure he'll be done." Sure enough, in 5 minutes the job was done. I never did see the anti-social genius who fixed the problem. The last I heard, he was still hiding in the dark recesses of the shop!
Need advice... I had put something down on a vehicle and driven it off of the dealership lot a week ago. About three days into having possession of the car, I found a place on a window where someone carved into the window (from the INSIDE). The striking thing is that it is in the same place where one of the monroney stickers was. (This is supposed to be a brand new car. It had 89 miles on it.) I've contacted the dealership since then and was told by the General Manager that he'll call back. Thanks for the help.
That’s because it’s true. The CSI scoring system is horrible. The dealer has to maintain a high score ex: 96.1. If they don’t they are penalized by the manufacturer.
It's anything less then a 9 and they say 10 to try and make it clear because it is not just important it's financial suicide to let surveys fail. Please believe me when I say that we never forget a bad survey. When the manufacturer calls or sends a survey and they say the dealer will never know what they have to say and I promise on the life of my grandson that we know 100% of what's said with in a minute. From moment we get that poor score were looking to have the opportunity to cancel you as a service customer. We'll never see value in you again and given a chance we'll purposely try and mess up your day. Respect the sales person right away and value there time and they will bend backwards to help you. With a great survey to follow with all of that you'll be recognized when you walk into either sales or service and treated extra special. The old scum bags of the car business are either in wheel chairs or dead. Give the new generation of sales people the respect my deserve
One thing I've learned after looking for a used car under 10k: avoid dealerships. Dealer fees will have you spending an extra thousand dollars more. A lot of them are dishonest about their prices. They advertise a good price online to lure you in. When they actually go there to negotiate a financing plan, they pull all these random fees out of their ass and the cost of the car ends up double what what they advertised. I swear used car dealers are the shadiest business practices, at least here in the US. Best thing to do is buy from Craigslist and check the Carfax.
@Peter Wilson Agree! Yea dealerships have some BS fees! But at the end of the day, a car salesman don't really make that much by the hour, most comes from sales.. So they are going to try and milk what they can get, but as far as getting a reliable car, with 100,000 warranty, its up to the buyer on how the overall outcome will be.. Down payment, credit, paying more monthly to get it payed faster.
@Peter Wilson The dealership often dosnt make any improvements to the car, even certified pre owned cars can have continual issues. The dealer is no protection here at all. Also they definitely (LOL) dont have a realistic view. Any KBB will tell you dealer price is higher. Its because of over head the dealership has to have (building, paper work, people, processing etc.). A person selling a car just has to sell a car, so its usually 2-3 thousand less.
Just came across your channel very informative. I'm considering buying a used truck just a few years old. I'm getting pre-approved financing outside the dealership and I'm going to ask them to email me a complete cash worksheet for the break down on the vehicle - price, taxes, fees and any other rebates that might be available. My question is should I go into the dealership and act like I'm a cash buyer and then show them the financing?
Can't negotiate doc fee In some states. Texas minimum is $150. And # 5 is bad advice. If you signed the contract the car is yours, only dealer and finance company can back out at that point.
Increasing the "everything is negotiable" line is not true. The market is changing largely due to internet pricing which forces dealers to put their actual bottom dollar up to avoid being undercut by competing dealers. A lot of people are still getting coached in this old school car buying methodology only to be set up for frustrating purchase experiences as they go up and down dealer rows only to find out they will not be getting more discounts on already discounted internet prices. Generally speaking if you have put a deposit down to hold a car you're not getting it back, nor should you. If the dealer has to take the vehicle out of inventory they are being denied the opportunity to sell the vehicle to someone else. It's fine to change your mind, but it's more than fair that the dealer recoup a fee for you holding up their inventory.
Quick note about dealers that offer refunds. Typically they can take a couple weeks to process, and there is a very good chance if you traded in a vehicle it will have already been sold at the dealer auction.
I have found that dealers ALWAYS call you and ask how you liked their service BEFORE they send you the performance survey. If you had ANY problem at all with their service, YOU AINT GETTING THE SURVEY! I'd like to know if there is any way to give them a negative survey if they've screwed you over, as some dealers have a habit of doing?
You will get ther survey no matter what when you buy a new GM vehicle. That survey is sent from the manufacturing company. At the end of the day they have to report yoir information and the vehicle you purchased andnit has to match with the contract. If they dont report it then they get no credit for it. The dealershop doesnt have a say on to send your survey or not. The reason they call you to make sure you were happy with your service is so they can work out any potential negative marks that may be coming their way.
@@mplilhommie16 I'm not talking about BUYING a GM or BUYING ANY CAR AT ALL! I'm only talking about a survey after having a SERVICE DONE! It's happened enough times to me to know that there are things a dealer can do to make sure a dissatisfied customer NEVER gets the supposed "survey"!
@@conradb7200 Yeah, those surveys are sent from GM as well. I work at a dealership and the only way around that is if they take your email out of the system before the end of the day when your service gets reported. The surveys there are also sent at random. You may or may not get one. If they call you the next day after you had service then they have no way of stopping that survey coming to your house or email.
@@mplilhommie16 Thanks. I'll need to pay closer attention the next time I get a service survey ... even though I now make it my business to avoid dealerships like the plague. I don't even go to them for my oil changes on my new cars (3 different brands). NOW no more mysterious problems prop-up within days of service. I change my oil every 10,000 mi using synthetic oil (all three cars) NO SERVICE PROBLEMS AT ALL ... ALL CARS RUN LIKE NEW😁 Last time at the dealership the story was "You need new brakes and rotors on the front ... You would be strongly advised to let us change them." BUT MY CAR STOPS GOOD ... MY BRAKES ARE GOOD! "the thickness gage says you are already in the danger zone ... You only have about 10% of wear left on the pads." BUT THEY ARE STILL GOOD? "Yes, but for only another 100 or 200 miles ... if that!" SO THAT MEANS MU ROTORS ARE STILL GOOD ... CAN I USE THE SAME ROTORS? "No! Anytime we change the brakes, we must also change the rotors!" P.S. that was 2,200 miles ago! Brakes still going strong! That dealership will not see ME again! And when I do get them changed (independent mechanic) I WILL NOT CHANGE THE ROTORS UNLESS THEY ARE DAMAGED!
Virtually every new car dealer will employ the dealer reserve scam. This is when, as noted in the video, the F&I guy or gal contacts one or more of their finance sources. Those sources will return with an interest rate, the buy rate. Dealer F&I sales people (they are always the dealer's top sales people) are allowed to bump this rate, often by 2-3 percent. So a 3 percent buy rate is presented to the buyer at 5 or 6 percent. The F&I person is not required to disclose this. So, be smart, always demand (not ask) the F&I person reveal the buy rate. If they refuse you can be certain they have bumped the rate. In such as case, just say no thanks and walk out. This happened to me a year or so ago while helping my child by a new Honda. The dealer offered 4.5 percent. The CU offered 2.6 percent. The F&I guy refused stating 4.5 percent was what the dealer was offering. I said OK and got up to leave. Before I could exit the office the guy asked me to wait a bit. He left and came back a few minutes later and offered 2.5 percent. Those dealer fees, whether they are called document or dealer, are ALWAYS fake fees. There is no legal or other basis for those fees. In Maryland, dealers are required to clearly state the fees are not required by law. Dealers sell at a price. Price includes ALL dealer costs including the minor costs associated with documents. Think about it, all those documents are completed while the customer is sitting in the F&I office. The only remaining costs for the dealer is to transmit the documents to the DMV, usually by a lot boy on a daily basis for all the previous day sales. Does that really cost the dealer hundreds of dollars? Of course not. The best way to combat these fees is, after negotiating, to reduce the price or increase the trade value by the amount of the fee. Last year I purchased a new car. The dealer had a $299 fee which it attempted to add to the negotiated price. I refused. The dealer increased the trade value we had agreed upon by $299. Some dealers will actually print the fee on the sales contract and they will state they are required to charge the fee to everyone. Deceptive at best. What they are actually saying is their attorneys require them to show the fee on every contract to avoid being sued for disparate treatment.
(I stopped and will finish)... Ari u the man! 👍. (I subscribed!) I was thinking ur in a non descript place hiding from current car dealers ...wanting, to NOT have u shoot this vid! ...chain link fence gate... fast car ready to go! Awesome info! I learned a lot!
A Benz dealer informed me that in order to keep the new car warranty in effect they must confirm the charging system is functioning correctly, every 12 months. This can only be done with a Benz service computer. I bought the car anyway and sold 12 months later. The POS burned a qt. every 500 mi. Dealer said it was normal because its a high performance engine.
@@chadjones6313 Neglected to mention I was referring to the new SLK350, when it was first released. Oil consumption was a common complaint. First and last Benz ever.
Miguel Maldonado they can laugh all they want. I’m a mechanic by trade but don’t work on cars. I keep my cars for 12-15 years in great condition. The dealers usually get trade in cars between 5-7 years old. So when I roll in with a perfectly running15 year old car and take advantage of the kind of deals where they give guaranteed trade in I’m the one laughing. I got over a decade out of a vehicle and they have to give me the trade in money that they usually give for 5-7 year old cars. Last time I did it the salesman almost cried😄 got a $4500 trade in on a 14 year old truck.
@ihategooglespooks Always remember, most car sales staff will not be selling cars at that dealership you saw them at in a few months. Sadly, for most, it is the worst job you can have. In my opinion, very few make a living at it and are only there until they can find a vocation that is more advantageous.
After reading every response I'm humored by you all. Sales people aren't paid enough to listen to anyone's bullshit stories. 33yrs in the car business and I can tell you with 100% certainty that every guest I ever had to deal with lied to me almost within seconds after shaking there hands. Do sales reps laugh at there guests behind there backs ? Without a doubt !! Do the guests deserve it ? almost all the time. !! Stop listening to your cohorts and act like a guest that is acting and treating the sales rep with respect
I put a deposit down on a car and before I picked up, I cancelled. However, on the contract I forced them to write in that deposit is 100% refundable if contract is cancelled. They even tried then to not return but, upon realizing they signed it, they gave it back. Neveer give a deposit unless it's refundable if you cancel before driving away.
I've been buying and selling cars, motorcycles, etc for over 40 years, and everything you say in this video is spot on.
Great advice for anyone looking to buy a car. And a good refresher course too for those already in the know!
Imagine if manufacturers sold directly to the customer. I bet the cost of cars would go down 5 grand
And your car's performance would also "go down" when you had to take it to a back-yard mechanic
for repairs and service ...😂
THEGAMINGHELP101 TESLA
@@conradb7200 I've literally never gotten any car I've had serviced at the dealership. It's a rip-off. Just have a competent mechanic.
Ford is going to do
That with the new Mustang Mach E
Overheads will be too costly to handle for manufacturers, the dealerships are the middlemen.
This is exactly the kind of conversation that should happen in the alleyway of an industrial park
LOL
Most times I leave the dealership I feel like I'm leaving an alleyway and I'm walking funny
Jim Williams 😂
@@jimwilliams4532 LOL
Fantastic video. I had a horrible experience when a Cadillac dealership insisted I purchase paint and leather protector to be able to qualify for the lower interest rate. I really couldn't believe what I was hearing, so I left them an appropriate rating with General Motors. It's no wonder, the dealership called me back to try to make things "right".
You where never that important to a dealer and your car buying every 10 years holds zero weight with any new car franchise. Sorry to bust your delusional thoughts
Thank you Ari I walked out on 3 dealerships when they started planning the games. Bingo no car in stock we would have to move 6 cars to get yours out. Very powerful game they play. You gave me power to get up and walk out.
I work at a car dealership and I don’t mind telling someone where a car is located. However, what happens is a loyal customer that wants to buy it from us will ask where it’s located, I’ll tell them, and then they call that dealer and ask questions. Or they go online and see if I’m giving them a good deal. I’m not a commissionable salesperson, so generally I am giving them the best deal that I can without selling the car below invoice. They realize I am giving them a good deal and it doesn’t make sense for them to drive from CT to NJ to buy it there. They give me a deposit and I call the other dealer and arrange a swap. The other dealer tells me “we can’t swap that car because we have a customer that called here interested in it”. Now they aren’t going to NJ to get it, they aren’t getting it from me, and the other dealer is holding a car because they think that the person who asked for a great deal was a serious buyer.
Rather than go through all of that just find a reputable dealership and find someone that you can trust, preferably someone who doesn’t solely work off commission.
I used to be under the impression cash was king at a dealership, since they don’t have to qualify you for a loan. It’s apparently better not to mention this when negotiating since this removes one potential source of revenue for the dealer. I have noticed that dealers add on unwanted profit enhancing features such as plastic trim pieces, special coatings etc. I spoke to internet salesman and he told me that’s the only way they sell the cars. Very frustrating trying to make a deal when these dealer add ones are forced upon you. Anyway, great tips Ari, thank you.
Thank you Stuart. Your input is greatly appreciated btw :)
if you pay cash the Financing employee hates you even more cause their commission is now basically nothing for putting together the paperwork for delivery. but, cash deals are still less than 10% or 5% on average so they will get by...
Thanks for the info. I usually go to the dealership for oil changes and tire rotations because the price is basically the same as the 3rd party place around the corner. Also, because they are the only ones that can accurately check for and apply software updates (tcm, pcm, infotainment systems etc) on the car from the manufacturer. And all records are in the dealers/ manufacturers database.
I usually go to the dealer for service until I watched the tec drain my oil but not change my filter. The dealership tries to sell you services you don’t need and now I wonder what they do while you are not watching I will take my car to a trusted service technician from now on.
Get a personal loan from your credit union..buy your car cash and pay your credit union back. It’s always cheaper to deal with the bank than dealing with the dealer
Very true. I went this route on my last car purchase and it was by far the better choice. They wanted me to sign a 12.6% interest loan through one of their lenders. I took out a loan through my credit union instead at 4.7% and paid them the negotiated price outright. Dealershits have no respect for customers and will look for any opportunity to steal our money.
I would say an auto loan with your credit union just becuase the rates that I've seen are even cheaper as auto loans than the personal loans...right?
My used car loan is 2.9%, I hammered that credit manager. The first loan rate was 5.9% with a 820 credit score, almost left.
Then it aint cash idiot
cooljamie76 You are giving false information, a auto loan has A MUCH lower interest rate than a personal loan. How do I know, I had both from my credit union. Auto loan 3% personal loan 11%. The lowest they have is 2% Auto, and 8% personal. I had 730 Experian.
If anything the proper way to do it, is to get pre approved for the auto loan amount of the vehicle you want first, from your credit union. Then go to the dealership and negotiate the price, and tell them they don’t need your social because, I already have my finance company ready, we just need to agree on the price of the vehicle. or else I will take my check somewhere else, period.
Very nice! Thank You!
I would like to add! Never let the dealer know that you need a vehicle right now or they will never cut you any slack!
@ihategooglespooks And I would never pay a doc fee that is over $100. It should not even be that much!
Everything said I this video is true! Former manufacturer certified internet sales manger here!
Cheers brother!
I sold car for 2 years and found most buyers have NO IDEA or process on how to buy a car. This guy is right on. If you'll buy car from any dealership please do your homework before walking in, will save you lots of money.
I was told by a dealership they would be the first to get the car I was looking for. I knew this wasn't true since I had already been to another dealership and they had the car in transit. If they aren't honest right off the bat, that's one less dealership I have to deal with
Subscribed! Good info. I once had a customer who was the GM at a dealership. I told him about the less than friendly negotiation I had on a truck I bought at another dealer. He laughed and told me if they don't get mad at you then you paid too much for the vehicle. That has seemed to be good advice over the years. You're not there to make friends, you're there to by a vehicle.
When I was young and dumb I almost got buried in a 2008 Lexus ES 350! The salesman filled my head with all these promises and showed me so many numbers I got lost! Anyway long story short my interest rate was 17% and my monthly payments was 487$ a month for 4yrs!!! Luckily the bank that was financing the deal canceled it because the car was to old and "some how" the year of the car was mistaken for a 2010, when I was adding the car to my insurance my agent told me the VIN I gave her was to a 2008 not a 2010!! Thank God I got out of that scam smh!!!
Just saw this vid and had to like. I just had a rough experience checking out a used car only yesterday, drove 2 hours to dealer ship and called before hand advising I have a pre approved loan from my CU, they said it's np and come in. I test drove the car and was ready to seal the deal when the finance manager swooped in and said they can't sell me my car with my own financing. He said I had to through it to them and advised my APR was 3.74 which is a bit high for my 825 credit but all the same. He advised the APR will rise to 5.99% but all I have to do is refinance with my own CU to get back at my 3.74, I walked. I drove home with a sour taste in my mouth, felt really sketch. He also only dropped that bomb on me after I declined on their extended warrranty and gap insurance..
Don't trust anyone. Buy used and have the vehicle inspected before purchase. I recommend everyone purchase an OBD2 scan tool. Do your research and make sure the vehicle you want is a reliable vehicle, and isn't a beast to work on. Don't buy luxury vehicles unless you're rich. Pay in cash. Stay away from the Stealerships! Btw, learn how to do basic maintenance yourself and I hope you know an honest mechanic. Peace
Big Dummy smartest comment I’ve read
Should say "don't buy GERMAN luxury cars". Nothing wrong with Lexus!
RIGHT ON
@@michaellindsey31 I always buy used and use my own financing. So much easier that way.
Big Dummy buying new luxury cars are so stupid anyway
Working for Lexus and bmw I can tell you, surveys are a HUGE deal
Sick M4.
Please keep these videos coming. Good editing and unique content. The subs will grow eventually and the views will too, this is all timeless advice.
Thank you brother!
I just started this video, but you can see how dealerships change their tune, sometimes for the worse, when you mention you already have financing from your bank. Always check your local bank, or even better a credit union.
I had one dealer barely move on the price of the car when I mentioned I had financing approved from my credit union. The salesman even admitted they probably couldn't beat that credit union(largest in my state.) They wouldn't budge on the price and when he came back with a new price sheet showing a lower price(written in pen, not printed out like the previous sheet) I walked. He was trying to get me to sign a price sheet to take to my bank showing a higher price at the bottom instead of the slightly better price I kept pushing for. I walked.
I had another dealer say "when buyers don't use our financing, we add $2,000 to the price." *Adding $2000 to the price can be a good thing if the car is perfect and what you want. Just like those TV commercials that say $3000 off or so much percent APR. Sometimes the APR deal is better, sometimes the $3000 off is better.*
Another instance when I bought a used Honda that was in really great shape from a dealer that had negative recent reviews, but some of the reviews mentioned the car they bought. I went there to test drive an early 2000's (W210)Mercedes E300. It was a piece of junk that needed a lot of work before it could be a reliabe a daily driver. This used car dealer seemed to LOVE selling used luxury cars that were not 100% daily driver ready. So after test driving the Mercedes, I saw a Honda Accord. It was years newer, low mileage for the age and in great shape. I test drove it, took it to my local mechanic and agreed to buy the car. We settled on a price and then next day I came back with a certified check for the price. The dealer tried to add a document fee(we had no paper work from the first visit I made, just a verbal price agreement). I couldn't afford the car with the doc fee, but I told him I'd give him $100 more and leave him a glowing review. He let me take the car right then and there. I just had to come in with $50 for a doc fee(down from his $250) within a week and he'd give me the title. It was worth saving $200 just to give a good review when in reality I was just happy to get a reliable car. It was over the state line so I paid taxes at my DOT when I registered the car.
I wish we could buy cars directly from manufacture.
Tell Congress. Their the ones who passed the bill on how cars are sold to the public. It's a ripoff
That most likely would not change things. There would still be sales people. There would need to be delivery sites. There would likely not be competition which would most likely result in higher prices for those who understand how to negotiate with a dealer.
I wish you could do both. Some dealerships have great add on.
Ben Hayat you can. Buy a Tesla
You don't even buy your shirts directly from the manufacturer
The last tip makes since to me now. I bought a new $70,000 truck last year and had to wait many hours to get the deal signed by the finance manager..... side note: I have almost perfect credit 825 FICO, so it wasn't that..... I gave a poor review of the service on that aspect only and had the dealership calling me regarding it BUT they never offered anything in exchange for a better score so I stuck with the poor evaluation. I couldn't have been an easier sell..... Made an appointment to drive the truck, agreed on the advertised sale price (it was a good deal when comparing 3 different states) and said OK, Lets do this and the quicker the better. 5 hours later. :(
I can’t do car payments. I haven’t had one in over 13 years with that being said. Yes I’ve had the same car for that long period of a time and it runs well. Paid for it in cash.
Bought a used car from a dealership with cash years back. The guy went to get the financing paperwork and I told him I was paying with cash. He was not happy. Immediate attitude. He became a real prick when I refused to pay $800 in fees.
yeah he was pissed because you took away his money makers lmao good job man.
An absolutely brilliant, practical piece. I learned so much... and I have been studying this kind of thing for a few years. Consider me subscribed!
I'm so happy Frank :) Thank you, and welcome!
Excited to see a local channel like yours is growing. Great tips btw. I will take the tips with your Audi q3 video at Audi Brookline and try to negotiate while ordering a new q3 prestige even when no one seem to have any q3 on the lot at the moment. Definitely will report back here and let you know it went.
This guy, the wolf of car meets
LOL!
Randomly stumbled upon your channel man.
Great first impression. Straight to the point, unlike a lot of TH-cam guys who go through a whole life story before they start the actual subject of the video 6-7 minutes in. You earned another subscriber. 👍
I work in car sales and this is all true. Lol this business is brutal.
hahah .. Cheers Brian :)
yeah, I hate them all so they hate me too... I wish I could go to best buy and buy a car off the shelf Lol
Brian B. Not all of this is true.
Yes. Not all of this is true.
@@Ed-lz4jv You can...Carvana
Just bought two new VWs. Dealer begged for all 10s in the survey. Now I know why! Live in MA bought in NH. Wanted to pay cash for both but ended up financing them to get 1k rebate each. Again, now I know why they pushed it! I don’t care, will pay them off right away. Thanks for this advice!
This is one of the best video I have seen on your channel. Thank you for the info
Thank you for watching brother!
My 2012 Nissan Frontier V6 4X4 SV King Cab was a 3 year lease then I bought it out afterwards. ($28k in total) I haven't had a car payment in going on 8 years with fee oil changes (every 4k miles) & @ appox. $40.00 per oil change that = $1210.00 in oil changes so far. It's super rare to find a dealership that includes that in their car buying/leasing experience. but as far as I'm concerned, it works for me. I'm in outside sales & I get the oil changed approx every 5-6 weeks.
i like how he says "consider subscribing" instead of demanding it like most youtubers/
:) Thank you
Good advice. Also know what type of car loan you're getting. There are generally two types, Pre-computed or Simple Interest. The big banks usually only offer pre-computed. Never, ever get a pre-computed loan. With this type of loan the interest for the entire term of the loan is added to the beginning balance. Means if you try to pay early or refinance, there will always be a pre-payment penalty. You'll be told that there's no pre-payment penalty, but there is, it's hidden. For example, say your loan is $40,000 for 4 yrs, the interest for the entire term of that loan would be about $3000 if your rate is 3.5%. They'll add that $3k to the loan balance on day 1. So, from day 1 you owe $43k, not $40k. Say on day 2 you win the lottery and decide to pay off that loan. The bank will say, "great we'll give you a discount of $1000, so if you pay in full today you owe only $42K, not $43K." That extra $2k is your hidden "pre-payment" penalty.
Crazy how your channel is growing , been here a while now. Keep up the awesome videos
Thank you very much Christian :))
My son tried to buy a new honda from a local so cal dealer ...he went for a test drive told the salesperson what model etc...no return call...he went to 2 others and same thing ended up driving an hr to get the car he wanted at a price he wanted ..just had to pass 5 other dealers who knew the kid knew how to buy a car..he got money and dont mind spending on things he likes.
Excellent information. Most dealers make VERY little on what the buyer thinks is the battle they go to the mats on, the new car sale. Dealers make a mint on warranty work, service, and used car sales. And as he said, but I want to amplify, is that the leasing and financing is where a dealer makes everything. Think you won when they sell you the car for $500 over cost? Well, the financing makes them thousands. No wonder they’re smiling when you think you did so great
Thank you, and I agree 100% !
Ari what if you Finance your Used
car its under warranty you notice rear tire has slight slant to it. Do you have some alingment
shop check it out then go back
to dealer if theres a problem found
before warranty expires and can you legally void deal at that point.
I really like the video and all the tips! I was in the car business, and you’re right on almost everything. But not to say you are wrong in all states, but in most, the vehicle cannot be canceled once the vehicle is REGISTERED. Does not matter If you drove it yet.
Dealers have dealer plates, and they’re not considered registered when a dealer owns it. But once the car is registered to you, there’s nothing you can do but trade the vehicle in.
Now, people saying, “the car looses 5k as soon as you drive it off the lot”, is also false. First of all the reason people think that way is due to the fact they are paying sticker or over invoice. That means that even sitting brand new in a showroom with no miles, it’s worth whatever the invoice minus hold back (dealer discount) is. For example, say the sticker is $34,000 and invoice was $28,700, a dealer would have additional hold back (usually $500-$1,000) of $700. That means the vehicle is worth $28,000 as far as worth is concerned. So if you pay $30,000 for the vehicle, once it’s REGISTERED, you’d of lost around $2,000 if you tried to bring the car back. If you payed sticker on this car, you’d of lost around $6,000. Now that’s of course if you got rid of it immediately. I mean you’d loose a little selling back to the dealer, but if you made a great deal, you could easily break even.
On my last car for example, the dealer lost $1,672 just to sell me the car. It was the last day of the year, but still, I always pay under invoice. So if I sold it today, I’d make around $3,000, most people don’t know what the invoice prices are.
So, in short lol, you do not have to drive the car off the lot to lose money! But, if you know what you’re doing, you don’t have too!
Paul Grebauski How does one find out what the invoice price actually is? Does the dealership have to give you this information if asked?
M Rob no, dealers don’t have to tell you what invoice is, or holdback, or any dealer incentives from the manufacturer. However, you can find it online for most vehicles.
There is so much more to it than just price. Lots of times people think dealers are trying to rip you off. But that’s not always the case.
Let’s say you have a car with a $30,000 MSRP, it’s not a special or limited car so invoice is not gonna be as far spread as the original comment showed. Let’s say Invoice is $28,750. Holdback is about 2.5% or about $720. You would think the dealer can sell it at invoice and still make $720 in profit, but that’s not the case.
The dealer probably floor plans with the manufacturer. The car has been sitting on the lot for 4 months and we have to pay floor plan interest on it for all of that time. Let’s conservatively estimate the interest at about $120 for the 4 months. You’re now at $600 in profit. We have to prep it because it comes covered in stickers and has no plate brackets. Shop costs are $75. You’re now at $525. We have to detail it which costs another $75 and you’re now at $450. We have to fill it with gas for about $50. You’re at $400. Gotta pay a commission to the salesperson. Let’s say that’s probably $100 depending on what his minimum commission is. You’re at $300. Management gets a bonus off of the sale. Let’s just estimate that at $100 for the car. You’re now at a profit of $200. Were probably gonna give you an oil change for free on it. That’s $40. Now we are at $160 in profit. The lead originated online so the BDC rep gets $50 for setting your appointment and you buying the car. We’re at $110.
At that point you better hope that the manufacturer has some sort of stair step program, and that you meet it, because at $110 in profit how are you making payroll and keeping the lights on?
Absolutely dealers don’t need to mark up a car by $8,000. And some of them do. But a lot of times people start arguing because they want their payment to be $50 cheaper. That translates into lowering the price by about $2,000. Where in the figures that I just described do you come up with $2,000? And when you say no, the customer goes online and roasts you on 8 different review sites and makes it seem like you tried to rip them off.
Car dealerships are a business just like any other. You have to anticipate that they are gonna make some profit.
I love it! Thanks for sharing the wisdom, Ari.
Thank you too for watching and listening to me John :)
Question, I agree with you on points 1 through 6. But how does #7 help a customer get a better deal? If you get a survey is because you bought the car, you shouldn’t buy a car if you’re not happy with the service you received. Keep going with your videos! A lot of good information is provided, I’m a big fan! 😄
I like how you said:”consider subscribing”
and PLEASE :)
Good job. The interest rate detail is some of the best info to save money. I’ve negotiated a purch price then told them I wouldn’t buy unless I got the wicked low interest rate I wanted. Picked the best one I found online at the time.
Nitrogen in tires is such a scam. The air is almost 80% nitrogen anyway.
I pay premium for this service. Its great
@@josezaragoza3188 You're paying premium for something that is free and is of no appreciable benefit? Send some of that money to me. I'm running low on cookies.
Don't you mean that nitrogen is 73% oxygen? So why get nitro? But your correct and is a scam just like bottle water.
70% of air is nitrogen.
@@eddiesaninocencio6635 78 percent of the air we all breathe is Nitrogen.
I've been watching a T O N of helpful hint videos for a months and this is thee most HELPFUL! Thank you
My pleasure!!
Congratulations Ari. Question, the typical discounts and incentives dealerships offer say that in order to qualify for them you must finance through them. So if I get preapproved from my credit union and the dealership can't or don't want to match it, am I out of luck in getting some of the discounts or is that negotiable too?
if this is possible...finance through the dealer...then get the credit union check and pay off the dealer financing...you got the incentives and are using the credit union
Brad Pittiful if you finance through the dealer how are you getting a check from your credit union?
@@chadjones6313 I looked into this. You get financing through the dealership. Then you apply for a personal loan at your credit union and use that to pay off the auto loan and take advantage of the lower interest rate.
S. James oh wow I learn something new everyday. I keep that in mind.
you apply to both...get dealer financing and once you get the car pay it off with the credit union financing and then pay them every month
Great video thanks for the info all the thumbs down are bad dealers. Respect brother
Yeah, the stealership is selling financing not cars.
BIG money maker..
@@negotiationguides For sure ...
So they are not allowed to make money???? why don't you ask them what their hourly insurance cost is, you will literally shit your pants.
glenn da .....that is the cost of bizzzz.
@@gabrielladots5990 Not my bizz LOL
Useful information and it was concise. That's sadly a rare thing for car channels on TH-cam. Good job. 👍
Very helpful please do a video on lease ends procedures and options.
For sure Marco!
I bought mine at the dealer a few days ago. I have 90 days insurance from them free, and If they steal my car within first 5 years . I get 5k back from them . Half of what I payed. They filled up my tank and detailed my car . Not bad. I payed cash
The number 1 thing they don’t want you to know is actually the “buy rate” money factor on a lease. They hate it when they can’t markup the MF without you knowing.
Also the doc fees can’t be negotiated in some states for some dealers.
That's when you tell them to take the doc fee out of the total price of the vehicle...loophole.
Mpgxsvcd can you explain more on the “buy rate”? I’m looking to get into a TLX A-Spec soon
Frank LaBarca the buy rate is essentially the minimum interest rate that the banks will allow them to charge. They are free to increase the rate above the “buy rate” value all they want and they don’t even have to tell you they are doing that.
You want to get them to give you the “buy rate”. Check the edmunds forums for the current buy rate for your particular vehicle.
Here is a video I did that explains the basics of leasing.
th-cam.com/video/lFrVUOJVS3M/w-d-xo.html
Excellent guiding advise here ! Clear and concise warnings about some of the many ways car dealers
make money, when selling you a new car.
I don't buy new. I buy low mileage recommended vehicles using consumer reports and other helpful websites and have a competent mechanic check the vehicle out. I get my own financing by shopping around. I wouldn't go in a dealership if I just needed directions.
No sense to buy a used car if you can buy a new car at the same price. Factory rebates on new cars plus a 0% rate can lower the price of a new car to used car prices. If you have excellent credit this is possible on many cars
@@yeppers7225 try getting a new BMW at a used (pre-owned) price. 😂
David Hudson that’s one reason I did not buy a BMW.
John, we paid less for our new (close out model) 2018 Toyota than I could find for a low mileage used one. Plus we know the history and have the full warranty. But yes, definitely do research before buying any vehicle today.
A detail that is never mentioned is the padding into the new car invoice that is reimbursed to the dealership at regular intervals, these pads are hidden to the salesman so that his commission is exempt from the added profit !
WOW!!!!! Excellent tips Ari. Good stuff. Its almost like your throwing yourself under the bus when you give us these tips. Thanks again. Keep the videos coming.
What if you’re not happy with the interest rate? Going somewhere else- running your credit again ? Will your score decrease?
Jennifer, as long as you can do all the credit pulls within a 2 week span, the bureaus group them into a "car buying" pull where they realize you needed to pull because you're shopping. I believe you can research this a bit further online on Google as well..
Best option is finance through a credit union. I don't know where you live but publix federal credit union is one of the best. No harsh credit pull. A score 580-600 with no credit history or any sort can give you a 20k. Best rates and payment options, and comes with perks and ur own personal line of credit where u get money back after each payment.
I knew everything until #7. I never thought about the effects of the survey. Good stuff, thanks!
Nice informative video! My last car got better price if I financed the car. Asked me to not payoff for so many months. Right. I paid it off in the second month of owning the car.
This is always the best way to the best price. If you ask how much is the price if I finance, and how soon can I payoff? A lot of dealers will be honest and say 60-90 days.. Some banks have an actual minimum open duration though Robert like 90 days.
After buying a new car at a dealership. I received a "confidential" survey.
Most of my scores were between 5-6. The salesperson called me and started
yelling at me, "Why did you give me low scores. The finance person and
I lost $10,000 in bonuses." I told the salesperson that you got what you wanted
and I got what I wanted. It was a "fair deal, not a great deal."
Sometime obtaining the loan from the dealership may not be such bad idea. Make no mistake, shop and compare the rates with major banks/credit unions before the “wheel and deal” process though! Dealing with high volume dealership(s) may help the process in negotiating for that great (or fair) deal. Recently took delivery of my brand new financed (G 30) BMW 540i xDrive with M Sport package+, along with other great options/packages. Basically, negotiated only out-the-door price and display “take it or leave it” attitude and ready to walk out of the showroom if you sense there is/are shenanigans during the negotiation. Furthermore, negotiate towards end of every quarter (March, June, September and December). BTW, my finance rate was under 2% during the manufacture promo. And....remember, selling luxury vehicles have higher profit margin for most of the dealerships.
Petie definitely agree with you here. You've got to be aware of the rest of the market when making these decisions at the table for sure. Dealership has access to the best rates too, just a matter of them not being molested when sold to you.
Stock availability is based mainly on if the dealership is family owned or corporate. Good idea for people to have at least some sort of pre-approval with a long term bank or credit union. The Doc fee isn't necessarily negotiable, dealerships can get sued if they charge different amounts to different people. Best advice I can offer is buy a car you know you can afford, have a set payment range in mind and dont forget to consider future maintenance cost (regardless of where you go).
You have to be a car salesman. Doc fees are negotiable! Who’s going to bring legal action? States req doc fee but don’t set prices. Doc fees range from 75.00 to 400.00. Up to you how bad you want to be screwed. Tell them the deal is off and watch how fast that doc fee comes down.
Ari ....Congratulations on your 7k Subs....Thank you for all the great videos & tips... wishing you reach 7 million subs soon...
Thank you very much Jo ❤️
@@negotiationguides You are welcome !
Your great Ari!
Enjoy listening & learning from you👌🏼
It's ironic you mentioned CarMax as they've been busted a few times for selling flooded cars.
He was mentioning the return policy
I got a flood car from them, it was supposedly all checked out per their 20 something point inspection checklist. They are shady AF
I work at carmax and that's wrong
Charlotte Lmbt whats a flooded car?
@@lanif740 an example being after hurricane Katrina, it was a bad idea to buy a used car in Texas for a long time because there was a good chance it was a car ruined by the storm surge and flooding. The salt water corrosion alone...
Another trick, if you have cash, is to not reveal that fact and let the dealer presume you will be financing through them. Hen asked be evasive. Look, they eat, sleep and live this stuff, so it going to be difficult to pull of, but if they are confident your plan to finance through them, the price will likely be lower since they will make $$$ on the interest rate. Heaven knows there is little profit in just selling the car. This trick worked for me although there were some unhappy faces when I pulled out a checkbook.
The dealership we bought our last car from had very incompetent mechanics. All the way up to the service manager. Beware of dealership service departments.
Beware of the dealer service department? Yeah ok.
Finally an honest person.......you rock 👍🏾
Buyer controls the dynamics of a car purchase
Do your homework before shopping for a car
Shop, shop, shop
Never buy the first day you look at a potential car
tell the dealer it’s a cash purchase
If you feel pressure walk out
NOT everything is negotiable
If you’re not happy with the signed contract, who’s fault is that ?
Thank you for the straight forward and informative video, lots of good advice here. Complete honesty!
Great information thank you for the service! Have a great year
Wow thank you for the tips, I had a feeling about a few of these things you mentioned were going on. Good to get an inside scoop, I did great at my last negotiation thanks to you and another TH-camr recommendations. I'll keep getting more smarter with your help for my next visit
Awesome info. dude!!! You just earned yourself another sub!!!
MY MAN! Thank you Mark :) happy you enjoy the content!
Absolutley a Great video direct and to the point.With all the research I did on my new 2018 Tundra I was told the Doc fee was non negotiable. I got it for about $900 under invoice,but I think I could have Negotiated the Doc Fee of $299
Great Video Ari! I was told once by a dealer if I did my own oil changes I would void my warranty. Is this true?
Thanks.
No way! I have a video about this as well !
you have to save all receipts and keep documentation
The dealer lied to you. As long as you can show receipts to demonstrate oil changes were done at correct intervals (whether you have them done at a dealership or jiffy lube or DIY), the warranty is still good.
Good video. For bmws I usually order to spec so I never care about what’s in stock. Also if you go to the forums, you can find out the interest rate or money factor bmw is charging for that month without markup.
in general, little to no negotiation room when the buyers custom order the vehicle to their spec. Most dealerships like it b/c of higher profit margin. I guess having the right spec in the vehicle is your priority.
My man! Congrats on the 7K+ subs! I'm back from Cabo and missed these videos man!
Thank you V!!! Congrats BTW :)
Thank you! I’m in the market for a new car. This information will be helpful.
Just subscribed, great information even for a seasoned buyer!
Thank you very much :)) I'm happy it was helpful to you!
Thanks. Been thru just about every point you made at the last Ford dealership I visited. Interesting about the survey and what weight it carry's. Will use that against them next time I buy and see if that softens up the hard sell on everything. Car buying used to be fun but not now as seems all dealerships are playing off the same playbook now. It is much worse than it used to be.
When I bought my last car (2015 Infiniti Q50S), when I took delivery and got home (50 miles) I noticed that there were little bits of the sticky that held the plastic protection sheet that covered the body panels. I got the survey and I gave them 10 out of 10 on EVERY category but "make ready" and I gave them an 8 out of 10 on the paint. It wasn't but a couple of hours and I got a phone call BITCHING me out. "Why didn't you bring it back and let us wash it? "That's 50 miles away!" I said, it should have been right when I picked it up. "You should have given us a chance to make it right!" NO, I said, "that's what surveys are for." Really pissed me off, and ruined an other wise great buying experience.
Kind of a dick move. Not gonna lie.
TexasScout Noneofyourbusiness: what people don’t realize is that the survey is unfair to the salesperson, the survey is reflected solely on the salesperson. Unfortunately there are questions about everything else regarding your experience but the salesperson should not have to suffer because of someone else...
@@nathanield.gamble4009 Right. That could cost the salesperson thousands in the big picture.
@@nathanield.gamble4009 then the salesperson should inspect what kids in the prep bay are doing
diesel6916; Lol, I understand your point but if the sales person worked daggone hard to provide the client with great customer service than for a little piece of plastic from the manufacturer’s plant that was overlooked and/or missed by the parties involved (including the client) so for someone looking for absolute perfection is in my opinion somewhat petty... granted, the salesperson should have explained to the client the dynamics of survey would’ve helped him.
hello dude Thanks for an informative video
One local dealer in my town is famous for having a magic points system that rewards you every time you take the car to the dealership for any type of service in the first five years of ownership. If you collect XX number of magic points, you get a discount on your next purchase of a new car.
It is debatable whether you would save more by taking your car to an independent mechanic rather than saving money on your next vehicle.
I think one of the very biggest things all dealers will do is to bend over backwards to keep customers away from their mechanics.
You think I'm kidding? Stop a dealership mechanic out in the parking lot going to or coming from lunch and try to ask him ANY QUESTION AT ALL about a car's engine, transmission, or computer and see what happens. He will not even stop long enough to tell you the time.
I am convinced if his thieving bosses spot any mechanic chatting with a customer, he may be in danger of losing his job.
I'll always remember driving my brand new car out of the dealership only to come right back to the salesman with a question about how to set my very confusing car computer/navigation/cell phone gizzmo.
He had no clue but told me to sit in the waiting room while he would get a mechanic out to my car to set it up for me. After 5 mins he came back and said the mechanic would get out there in a couple of minutes as he was just cleaning up after his last job.
I told the salesman I would wait out in the car so I could watch the mechanic set it up so I would know how to do it myself.
OMG ... The young salesman turned blue.
He started with ..."uhh, sorry, we can't do that!" "This tech is actually a genius who is super smart!" "Believe it or not, as good as he is, he actually is anti-social and cannot deal socially with people" "That's a trait that many super-smart people have."
"If he knew you were in the car waiting for him ... he is so anti-social and painfully shy, he wouldn't come out."
"So please trust me on that!" "Stay in here with me while this poor guy sets it up for you ... I'll check in 5 more minutes, and I'm sure he'll be done."
Sure enough, in 5 minutes the job was done. I never did see the anti-social genius who fixed the problem. The last I heard, he was still hiding in the dark recesses of the shop!
The only one 2nd2 zip
Need advice... I had put something down on a vehicle and driven it off of the dealership lot a week ago. About three days into having possession of the car, I found a place on a window where someone carved into the window (from the INSIDE). The striking thing is that it is in the same place where one of the monroney stickers was. (This is supposed to be a brand new car. It had 89 miles on it.) I've contacted the dealership since then and was told by the General Manager that he'll call back. Thanks for the help.
The Honda dealership is deal with told me anything less than a 10 on a survey question is essentially a zero.
Hah! Taking proactive measures i guess...
I had a dealership do the survey for me once. Ha
That’s because it’s true. The CSI scoring system is horrible. The dealer has to maintain a high score ex: 96.1. If they don’t they are penalized by the manufacturer.
Yeah, I got that too when I bought my civic 4 years ago. He told me if I couldn't give all 10's please don't even fill it out.
It's anything less then a 9 and they say 10 to try and make it clear because it is not just important it's financial suicide to let surveys fail. Please believe me when I say that we never forget a bad survey. When the manufacturer calls or sends a survey and they say the dealer will never know what they have to say and I promise on the life of my grandson that we know 100% of what's said with in a minute. From moment we get that poor score were looking to have the opportunity to cancel you as a service customer. We'll never see value in you again and given a chance we'll purposely try and mess up your day. Respect the sales person right away and value there time and they will bend backwards to help you. With a great survey to follow with all of that you'll be recognized when you walk into either sales or service and treated extra special. The old scum bags of the car business are either in wheel chairs or dead. Give the new generation of sales people the respect my deserve
Loved your video thanks for the info - I’m wanting to buy a 2023 - I’m from Worcester/Cape cod but now live in Florida
One thing I've learned after looking for a used car under 10k: avoid dealerships. Dealer fees will have you spending an extra thousand dollars more. A lot of them are dishonest about their prices. They advertise a good price online to lure you in. When they actually go there to negotiate a financing plan, they pull all these random fees out of their ass and the cost of the car ends up double what what they advertised. I swear used car dealers are the shadiest business practices, at least here in the US. Best thing to do is buy from Craigslist and check the Carfax.
Buy from Facebook marketplace and check the Carfax.
Show less
So you suggest to but a car under 10k from private seller?
Stormy D. “Condition of their wife”? The fuck is that supposed to mean? 😂😂
Absolutely horrible advice.
Exactly!!!
In the state of MA. They can bump your interest by 3. Points. So if u r at the 2.5. U can pay 5.5 apr
The biggest thing a dealership doesn’t want you to know is that you should not be buying a car from a dealership😂
Ha!!
@Peter Wilson How true! And you can never go back to gripe a problem with a private seller.
@Peter Wilson Agree! Yea dealerships have some BS fees! But at the end of the day, a car salesman don't really make that much by the hour, most comes from sales.. So they are going to try and milk what they can get, but as far as getting a reliable car, with 100,000 warranty, its up to the buyer on how the overall outcome will be.. Down payment, credit, paying more monthly to get it payed faster.
@Peter Wilson The dealership often dosnt make any improvements to the car, even certified pre owned cars can have continual issues. The dealer is no protection here at all. Also they definitely (LOL) dont have a realistic view. Any KBB will tell you dealer price is higher. Its because of over head the dealership has to have (building, paper work, people, processing etc.). A person selling a car just has to sell a car, so its usually 2-3 thousand less.
@Peter Wilson I'm guessing you work for a dealership.
Just came across your channel very informative. I'm considering buying a used truck just a few years old. I'm getting pre-approved financing outside the dealership and I'm going to ask them to email me a complete cash worksheet for the break down on the vehicle - price, taxes, fees and any other rebates that might be available. My question is should I go into the dealership and act like I'm a cash buyer and then show them the financing?
Yes as it will be the same difference for them. It won't make a difference.
Can't negotiate doc fee In some states. Texas minimum is $150. And # 5 is bad advice. If you signed the contract the car is yours, only dealer and finance company can back out at that point.
Right, so I said subtract it from the bottom line.
Great job man! Very informative video. I don't know why you don't have over one million subscribers
I don't know either!!!! lol
Increasing the "everything is negotiable" line is not true. The market is changing largely due to internet pricing which forces dealers to put their actual bottom dollar up to avoid being undercut by competing dealers. A lot of people are still getting coached in this old school car buying methodology only to be set up for frustrating purchase experiences as they go up and down dealer rows only to find out they will not be getting more discounts on already discounted internet prices.
Generally speaking if you have put a deposit down to hold a car you're not getting it back, nor should you. If the dealer has to take the vehicle out of inventory they are being denied the opportunity to sell the vehicle to someone else. It's fine to change your mind, but it's more than fair that the dealer recoup a fee for you holding up their inventory.
John Doe where's your dealership located?
I couldn’t agree more. Margins are so slim and everything is back end now
Quick note about dealers that offer refunds. Typically they can take a couple weeks to process, and there is a very good chance if you traded in a vehicle it will have already been sold at the dealer auction.
Thank you DJ!
I have found that dealers ALWAYS call you and ask how you liked their service BEFORE they send you the performance survey.
If you had ANY problem at all with their service, YOU AINT GETTING THE SURVEY!
I'd like to know if there is any way to give them a negative survey if they've screwed you over, as some dealers have a habit of doing?
conrad b just lie and tell them they did great and then bite them in the ass with the survey
You will get ther survey no matter what when you buy a new GM vehicle. That survey is sent from the manufacturing company. At the end of the day they have to report yoir information and the vehicle you purchased andnit has to match with the contract. If they dont report it then they get no credit for it. The dealershop doesnt have a say on to send your survey or not. The reason they call you to make sure you were happy with your service is so they can work out any potential negative marks that may be coming their way.
@@mplilhommie16 I'm not talking about BUYING a GM or BUYING ANY CAR AT ALL!
I'm only talking about a survey after having a SERVICE DONE!
It's happened enough times to me to know that there are things a dealer can
do to make sure a dissatisfied customer NEVER gets the supposed "survey"!
@@conradb7200 Yeah, those surveys are sent from GM as well. I work at a dealership and the only way around that is if they take your email out of the system before the end of the day when your service gets reported. The surveys there are also sent at random. You may or may not get one. If they call you the next day after you had service then they have no way of stopping that survey coming to your house or email.
@@mplilhommie16 Thanks. I'll need to pay closer attention the next time I get a service survey ... even though I now make it my business to avoid dealerships like the plague.
I don't even go to them for my oil changes on my new cars (3 different brands). NOW no more mysterious problems prop-up within days of service.
I change my oil every 10,000 mi using synthetic oil (all three cars) NO SERVICE PROBLEMS AT ALL ... ALL CARS RUN LIKE NEW😁
Last time at the dealership the story was "You need new brakes and rotors on the front ... You would be strongly advised to let us change them."
BUT MY CAR STOPS GOOD ... MY BRAKES ARE GOOD!
"the thickness gage says you are already in the danger zone ... You only have about 10% of wear left on the pads."
BUT THEY ARE STILL GOOD?
"Yes, but for only another 100 or 200 miles ... if that!"
SO THAT MEANS MU ROTORS ARE STILL GOOD ... CAN I USE THE SAME ROTORS?
"No! Anytime we change the brakes, we must also change the rotors!"
P.S. that was 2,200 miles ago! Brakes still going strong! That dealership will not see ME again!
And when I do get them changed (independent mechanic) I WILL NOT CHANGE THE ROTORS UNLESS THEY ARE DAMAGED!
Virtually every new car dealer will employ the dealer reserve scam. This is when, as noted in the video, the F&I guy or gal contacts one or more of their finance sources. Those sources will return with an interest rate, the buy rate. Dealer F&I sales people (they are always the dealer's top sales people) are allowed to bump this rate, often by 2-3 percent. So a 3 percent buy rate is presented to the buyer at 5 or 6 percent. The F&I person is not required to disclose this.
So, be smart, always demand (not ask) the F&I person reveal the buy rate. If they refuse you can be certain they have bumped the rate. In such as case, just say no thanks and walk out.
This happened to me a year or so ago while helping my child by a new Honda. The dealer offered 4.5 percent. The CU offered 2.6 percent. The F&I guy refused stating 4.5 percent was what the dealer was offering. I said OK and got up to leave. Before I could exit the office the guy asked me to wait a bit. He left and came back a few minutes later and offered 2.5 percent.
Those dealer fees, whether they are called document or dealer, are ALWAYS fake fees. There is no legal or other basis for those fees. In Maryland, dealers are required to clearly state the fees are not required by law.
Dealers sell at a price. Price includes ALL dealer costs including the minor costs associated with documents. Think about it, all those documents are completed while the customer is sitting in the F&I office. The only remaining costs for the dealer is to transmit the documents to the DMV, usually by a lot boy on a daily basis for all the previous day sales. Does that really cost the dealer hundreds of dollars? Of course not.
The best way to combat these fees is, after negotiating, to reduce the price or increase the trade value by the amount of the fee. Last year I purchased a new car. The dealer had a $299 fee which it attempted to add to the negotiated price. I refused. The dealer increased the trade value we had agreed upon by $299.
Some dealers will actually print the fee on the sales contract and they will state they are required to charge the fee to everyone. Deceptive at best. What they are actually saying is their attorneys require them to show the fee on every contract to avoid being sued for disparate treatment.
Congrats on the 7k, Ari. Well deserved.
Thank you John!!!!
(I stopped and will finish)... Ari u the man! 👍. (I subscribed!)
I was thinking ur in a non descript place hiding from current car dealers ...wanting, to NOT have u shoot this vid! ...chain link fence gate... fast car ready to go!
Awesome info! I learned a lot!
Even though you finance at the dealership, 6 months later you can always refinance anyway. So don't think you're ever stuck with the rates.
A Benz dealer informed me that in order to keep the new car warranty in effect they must confirm the charging system is functioning correctly, every 12 months. This can only be done with a Benz service computer. I bought the car anyway and sold 12 months later. The POS burned a qt. every 500 mi. Dealer said it was normal because its a high performance engine.
Rick yes same with my Audi q7 it burns a ridiculous amount of oil
@@chadjones6313 Neglected to mention I was referring to the new SLK350, when it was first released. Oil consumption was a common complaint. First and last Benz ever.
I use to detail at a used lot. #8 they brag and laugh at you when they take your money and used car. Seen it
Miguel Maldonado they can laugh all they want. I’m a mechanic by trade but don’t work on cars. I keep my cars for 12-15 years in great condition. The dealers usually get trade in cars between 5-7 years old. So when I roll in with a perfectly running15 year old car and take advantage of the kind of deals where they give guaranteed trade in I’m the one laughing. I got over a decade out of a vehicle and they have to give me the trade in money that they usually give for 5-7 year old cars. Last time I did it the salesman almost cried😄 got a $4500 trade in on a 14 year old truck.
@ihategooglespooks Always remember, most car sales staff will not be selling cars at that dealership you saw them at in a few months. Sadly, for most, it is the worst job you can have. In my opinion, very few make a living at it and are only there until they can find a vocation that is more advantageous.
joedell71 yeah sure you did. They just charged you an extra $4k for the car you bought. You idiot.
One time I upper cut a salesperson but he dodge it and punched me. He laughed at me
After reading every response I'm humored by you all. Sales people aren't paid enough to listen to anyone's bullshit stories. 33yrs in the car business and I can tell you with 100% certainty that every guest I ever had to deal with lied to me almost within seconds after shaking there hands. Do sales reps laugh at there guests behind there backs ? Without a doubt !! Do the guests deserve it ? almost all the time. !! Stop listening to your cohorts and act like a guest that is acting and treating the sales rep with respect
I put a deposit down on a car and before I picked up, I cancelled. However, on the contract I forced them to write in that deposit is 100% refundable if contract is cancelled. They even tried then to not return but, upon realizing they signed it, they gave it back. Neveer give a deposit unless it's refundable if you cancel before driving away.