I absolutely hate car dealerships, I live in Lakeland Florida and there’s a independent dealer that’s been in business over 50 yrs. You will get a car or especially a truck $5000 off what a dealership charges. Paperwork is 20 min and out the door. He does not sell new but can get new if you like. I’m picking up a 2017 F-250 Powerstroke xlt premium with 23000 miles for $41500. He doesn’t talk in circles and confusion. Straight to the point. Your channel is great really enjoy it. Love the father son interaction.
My strategy for used car is always 1. find a car I am interested. 2. tell the salesman exactly how much I wish to pay for the car , a number I believe is fair. 3. If they say no, simply walk away, and look for the next car. I may not get a deal the first time but eventually I always get a car I like with a fair price I set. No need to waste too much time negotiating, if the dealer doesn’t like your offer, it is possible someone in the market highly likely going to pay more for the car. Just walk away, let that someone get it instead.
@@markrocka8718 Yes! Deny GAP insurance it just puts more money in their pocket during financing the sale price, which is damaging your wallet. Depending on the state you can demand for doc fees to be waived.
Always walk away. I enjoy them begging me not to leave. I had one tell me and the wife they had a girl they would send to the school to pick up our kids, LOL
"Dealerships thinking their inventory is like fine wine; aging improves it" That nugget of wisdom made me subscribe😊 You're too funny Ray! Love your videos!
What’s your thoughts about buying a used RAV4 rental car if it’s from a Toyota dealership? Should I take it to a different Toyota dealership to get a PPI? 19:59
Great videos. I really enjoy watching them. Just purchased an SUV with my daughter using you insight and methods. Saved 4,000.00 on a 2018 Toyota RAV 4. Went and looked at them at 4 dealerships. 2 didn’t have any in her color she wanted. The third had one that was dirty and had small interior parts broken. The fourth is a data driven store and I managed to get another 900.00 off the price. We had cash down and no trade in and did not purchase any extras. The came with the balance of the bumper to bumper warranty plus the 5 year hundred thousand mile power train warranty. You guys are great . Keep the videos coming.
I appreciate your no-bull approach to the car buying business. I have always felt that I was getting screwed when I went to any dealership and did not believe a thing they told me. I have walked out of many negotiations. Of course, I check KBB before I go--every time. On my last purchase, I ended up paying the registration for more than one year because in California-at that time--the dealers did not have to register the car they way all of us sheep must. Ray comes across as a guy who is telling it like it is.
I can ,, they're monetized YT videos keeps em afloat ,, they really haven't brought anything to the table for a educated car enthusiast with a modest amount of financial wisdom
Market based is exactly what I must be dealing with now. They will not budge on the price. Well, not more than $500. And it's been sitting there for 2.5 months.
Yep, I found a PRIMO car and they wouldn't budge a bit. But they wanted to add LOJACK, $890 DOC fee and some other fee for $399 plus taxes! The price was $18,500. It has sat for 3 weeks and they just bumped it up to $19,000.
For full disclosure, I haven't dealt with a used car salesperson since maybe 1995 so what appeared shocking to me could be what most would consider 'normal'. First impression: place - an HGreg facility, they operate in Florida - look filthy inside and out in almost every way imaginable. Customer parking was crowded and I feared for my car's integrity because parking spaces were so narrow. Inside, it looked like a crowded sports bar, only the screen had HGreg propaganda running. I had an appointment for test-driving 2 cars but, since I had test driven the exact same brand and model at another dealership I told them that all I wanted was to see/inspect them and then, possibly discuss terms of purchase. They told us to find the cars in their parking lot - there were hundreds of cars there - vaguely suggesting one area were we were likely to find the vehicles. After 10-15 minutes of walking in a 90F heat we found one and it looked Okay but we never find the second one. Some employee told us to look elsewhere in the lot but 10 minutes later, no success. We liked the one we found enough so we decided to talk with a salesperson. Oh, the sticker price on the car was more than $4000 higher than we saw online but we had a printout of the online price so we didn't worry about that. The salesperson we were given forced us to listen through some BS talk about how special HGreg was because unlike other used car dealers, they were not negotiating prices so we were so lucky to be there. When asked about the online price vs on-car-window price discrepancy he told us that they will 'honor' the Internet price so I suspect that if you just walked in and liked the car, you'd be paying the extra $4000 if you were to buy it because price was not negotiable. To cut the BS short because the bad vibes were almost unbearable, I asked the used car salesman to print us a contract with real dollar figures on it so we can decide whether we were going to buy the car or not. So the contract included: - a $400 BS electronic filing fee - a $980 BS make-dealer-happy ripoff fee (sorry don't remember how they called that) - a $500 made up title, tags and registration fee and he couldn't explain why it was $500 and not $400 or $600. By comparison, Carmax fees for a similar car were $27 for electronic filing, $400 make-Carmax-happy and $402 for title and registration. Carvana's, from where we eventually bought our car were $0 for filing, $0 for making Carvana happy fee and about $300 broken down into precise amounts for Title, Registration and License Plate. I told the used car salesman that I would agree to pay those 'fees' if he lowered the car's price by a similar amount. When he asked why he should do that and I told him that the 'fees' were absurd he told me that that was my opinion and they were not going to touch them. So we left and, as I stated above, we bought a similar car listed at a similar price from Carvana. And 'saved' over $1500-2000 in HGreg's bogus ripoff fees. I hope that not all used car dealers are like HGreg but then, I will probably never know because it's unlikely that I will ever again attempt to deal with such people and businesses. And I believe that we only scratched the surface of potential customer ripoffs here. We were going to pay cash so had no need for financing, had no trade-in and didn't care about a service plan because the vehicle we wanted to buy had some 2 years worth of manufacturer warranty left. But I can only try to imagine the many ways these people would financially abuse a customer who did need financing, did plan to trade in their old car and did want to purchase some post-sale support. Mind is boggled.
Two things: I recently made an appointment with a sales person at a dealership for a used vehicle I liked. The price had been reduced online and that caught my interest. When we started talking numbers, they used a higher price than what was online and when I went to check the website, they had raised the price by 2k. I'm ok with the one price dealership as long as it includes a legitimate 2 or 3 year warranty. The finance manager at a dealership is going to try to sell it to me anyway so at least I feel i'm getting something for the higher price.
Next time print it off, and when they refuse to honor it ask if they'd like to be reported to the State Regulators (whoever it is in your state) and to Better Business Bureau, bad YELP, GOOGLE, etc review just for icing.
My uncle took his clean title 2002 corvette Z06 with 44xxx miles as a trade in and stealership offered 7,000 👊. And I'll give you 900 for that 6000 car. But they're "insulted" when the customer tries to get a few bucks off. This is why people hate STEALERSHIPS!!!
So the used wholesale market at auctions is down for the past quarter and it continues to decline, That means that there are currently alot of cars sitting for months at the dealership that with no buyers. Furthermore, Hertz is soon to file for bankruptcy and they recently canceled thousands of car orders for this year from differentmanufacturers; all their used cars will soon flood the market which will cause an enormous oversupply... which means extremely lower prices for you. If your looking to buy a used car, wait a couple of months. Your $15,000 car will go for $11,000 your 12,000 for $9000.. and so on. There are hundreds of dealerships that in the brink of collapse and they will be able to give a sweet deal to survive, dont settle for the ones that just want to give $700-$1000 discount bs. and dont even think to trade in your used car during this time, you will l get $0 to 20% at most for your used car, they are already saturated with inventory.
Thank you for the information I'm currently looking for a vehicle and it stressful I hope I can find a dealer that will be honest and B.S around I just wish I could have someone go with me that would know when the dealer is bullshiting
Michael Viglianco because the money they pumping into people pocket, people have lots of money right now and used car price are jack up af. Fucking inflation.
@@tommydo961 Yup, the original comment isn't true at all. Car sales are booming and cars are flying off the lot with dealers making good profits. Here in Canada people got over $10,000 in government handouts because of COVID and they actually noticed the rate of car sales and finances for cars increased lol. Car sales will never crash, it's a daily commodity people want and need new cars to keep going in life. Dealership crashes were predicted but never happened.
You two guys are fantastic and I appreciate your efforts. Your channel is great and your DAD is a genius in his own way. I can listen to wisdom all day long and he has the "swagger" to go with the humor, knowledge, and experience. He's a person to be respected and you guys deserve all that you receive. Thank you and thank you again. I'll keep watching more videos, very entertaining and educational in so many different ways.
Your channel is incredibly instructive...! I bought my third car and felt I had more knowledge of what I was doing than ever because of you guys. I ended up with I price I was happy with and felt the dealer respected me much more. Thanks a lot, I’m from Quebec
Our one price dealers, have a hell of a lot of fluff in the final sale, over and beyond the set price. Same car, down to the color. Fluff dealer $32k car OTD 39.5k Old school $35k car OTD 37.6k. So again dealer trained to take advantage of buyer even when car has a set price!
On my last car (used CPO) I really wanted to buy a certain car from a one-price dealership. The only problem was that their market price was a fair amount higher than every other car on the local market, including the one I ended up buying which was a year newer, had 10K less miles and more options. I guess they thought their wine was better!
Usually it takes about $1500 to certify a vehicle usually it will come with a 2/24000 mile bumper to bumper warranty or something like that and those vehicles have been through some sort of an 112 point inspection on the car maybe that was the reason it was more expensive.
I bought my 2017 Mustang in August of 2017 from a very small used car dealership. There was no finance dept and no service dept. His model was to buy cars at auction that would sell quickly. The car still had some time left on the manufacturer's warranty. He didn't try to sell me a warranty and there was no pressure to buy. The price was fair. Yes hubby and I did research on prices for this type of car. I had the option to pay cash or by credit card. By paying cash I received an additional discount as the dealer saved the credit card fee on his end and passed it on to me. And yes I asked if a cash deal would reduce the price. The car was almost exactly what I wanted. The only thing that it was missing was blind spot monitoring. The only other Mustang EcoBoost premium with the features that I wanted that was available within a reasonable distance would have cost me $14,000 more as it was a new car. So I opted to go used with a car that had 26,000 miles. Nothing in life is perfect but I've really enjoyed this car. Would I like blind spot monitoring? Yes but that's all that I miss. Hubby and I test drove the car on Friday and returned on Saturday to buy the car. The dealership was a two man show and there was never any pressure. Btw, I'm just across the Potomac River from you in N VA. I really enjoy your videos!
This gentleman has an incredible resemblance to Michael Mckean, in projection and appearance. * This video is gold, very well explained. It is so true, most dealers are data driven, that is the price, not a penny less. Let me add to what he said, WHAT MAKES YOU SO SPECIAL? He is wrong for him to ask that, the dealership made consumers FEEL special.
Yeah, he kind of went through that discussion pretty quickly like we should all just accept it. If they kept that up for the year, that would be a huge profit (over 800% yearly if my figures are correct).
The thing that might make that person “so damn special” is the fact that that individual is there at the moment ready and willing to pay for the car.. as opposed to the next that may come along say a week or a month later.. 🤔 Great video and info none-the-less! Thanks guys!!
I have successfully negotiated a price discount at CarMax -- but it was for a car that had been on their lot more then 60 (or was it 90 days). I vaguely remember a conversation with one of their mgrs. -- they incrementally mark down prices by a certain % after it has gone unsold for a certain number of days.
Would love to see a video on buying a used truck in 2024 what mileage is good, what otd price is fair for both and when because I keep hearing prices are coming down but I've yet to see that. Thank you and keep up the great work!
That "what makes you so special" tactic might work on some people. I would just walk away because I would feel insulted somehow i.e. the customer is always right or at least shouldn't be spoken to in that tone. Informative video. Thx
The customer is definitely NOT always right. BUT, the customer is always just that, "THE CUSTOMER". As such, the customer is important and necessary and deserves respect. It is a 2-way street and I have missed out on deals simply for being a corn-hole.
@@mulljacob Worse, Ag Inputs, Retail. I sell stuff people need rather than what they want. You always get beat up more by someone who needs what you are servicing.
@@PaulSchneider-bp2ic That's a question I don't know the answer to. Its kind of like not knowing your own phone number. Ag (agriculture) Inputs is what ever it takes to grow a crop. Seed, nutrients and crop protection products mostly...coupled with service.
Winter ... during a snowstorm, best time to walk into the showroom or office depending on dealership. Over 50 years of buying used, it sure is a customer advantage. Best months would be January or February. Stocks may be lower during those months, but definitely is right time for very good discounts.
The "fine wine" method has been a Chasity Belt for dealers selling the P71 Crown Vics and the Mercury Grand Marquise of 1995 thru 2011 years. This year 2000 thru 2011 Lincoln Continentals have become moated. For old men wanting big doors to get in/out it's a sell your body parts to afford a purchase price. THANKS! I know more now than I did before I saw the video.
You bring up a point that inspires a question. When a dealership wholesales a car to another dealership, does that show as another owner on the Carfax report?
Hey thanks for all the good info We waited to buy . Prices went up a bit . So we just bought 2017 highlander XLE .the original out the door price was 38.000 we got it for 31 out the door . Pre owned certified . We used all your info . To purchase our car . Thank you .
at 17:56 , Ray you hit the nail on the head, it's not that I want to be more special than the other buyer, It's that i have complete mistrust and feel that I am overpaying for this depreciating liability ( knowing full well that it is already dropping in value exponentially anyway, unless I can get it for less than what the dealer paid), so the only way to convince me that i am not is to show me the price they paid and decide how much more over that i am willing to pay. I believe that the company is for-profit and is responsible t the stockholders to make that profit, so I'll agree to pay a small markup, maybe 5-10%, because i also know ( and this is sad but caveat emptor) they will gouge someone that does not watch and take the dad and kid show. BTW, i laugh when they say "no hassle pricing" and try to make people feel good, because i hear " hey sucker, we are sticking to you with no lube and you have no chance to get a good deal. LOL. Keep up the good work. I love Ray's evolution from these earlier videos where he seem to be a stick to the business, don't smile to now having the one liners and roasting his son on the air. Build my trust in them . ( hey , wait a minute, is that some old school car dealer tactic to get my trust? lol)
Hey are you planning on doing a video on how to navigate used or new car purchases in this volatile market. Are there deals to be had? Should we buy now or wait a few months? Will lease returns, repos, and rental car bankruptcy drive prices lower? Thanks in advance!
My initial offer is always 1/2 asking & that includes their doc fees / TL ,, I havent purchased 1 Vehicle with this strategy - and I never negotiate , I walk out and get in my paid off beater & roll on
This is fantastic content, I’m always going to want money off, it’s showing willingness to work with me, if you don’t move at all then I’m not buying your car it’s that simple, I don’t care what their model is. Your videos are awesome, so much good information!
I have a question: If you do have a customer that comes in and wants to pay the sticker price for a car, but it has special incentives like rebates or other price reductions, do you ever feel obligated to mention that to the customer or do you ‘go with the flow’ ?
I recently noticed where a couple dealers were selling a car and when you looked at the history of how they were discounting the vehicle you would see several deductions in price, but then you would also see where they added back into that price, and then start the discounting from this new price again. Sure seems like they're game playing by doing that to me especially when you can clearly see the car has been on the dealers lot for 80 or sometimes more days. I would think they would eventually realize that it's simply better to turn those dollars period.
Haha! "Fine Wine Policy". That was AWESOME. Dealt with a couple of dealerships in Abilene, Tx who had that thought process... ... surprise...I didn't buy a thing from them.
I could be wrong here, but from my perspective, if you can get ahold of the original Sticker on the vehicle that helps. Take that amount, and subtract 20% off the top of the vehicle. Then also, subtract $1000.00 for ever 10K miles on the vehicle. This give you an amount that the dealership paid for the vehicle. Is that a valid process in your estimation?
Love your wisdom and willingness to help potential buyers become more savvy. Future video suggestion: How do you know "when it's time" to take the plunge and trade-in? What are the most common reasons (and most ridiculous reasons) you have heard for people wanting to trade-in/purchase a new/used vehicle? I became curious about this after watching the "needs assessment" video on your webpage. Thanks!!
I love your channel! I have binged watch just about all your videos in 3 days!!! On a different topic. What would be a good tactic to negotiate a lease on a new suv that is selling on average at MSRP or higher? If that is not too specific would you do a video on that? Thanks for giving us more confidence when stepping into a dealership.
Love your info.but you frequently talk about higher end cars. Would you help out an old lady who's in the market for a new car at the lower end of the market say a Toyota Corolla. I imagine there's probably a wider margin for negotiation on higher cost cars so what about the parameters on the lower end ? Thank you.
We do not price negotiate on any other commodity except car. Just curious as to how it all started only for cars way back when. Now if we do not negotiate the price down, we walk away with the feeling that we over paid.
thanks you guys, useful and very quick output too :) you guys rock. so identifying what kind of dealer you are working with seems to be the main idea here. If you don't mind diving into that topic and how to find dealer types based on their revenue model , it'll be great. Also could you talk about trade in values. it seems like in most cases when you bring your trade in to a dealer you lose more money vs if you sold the car privately and walked in with cash.
I get the $1200 to $2000 profit the poor dealer is making when they sell it at market price. What about the profit they make in the trade in for that car????
The trade in is like playing craps, they are gambling. The dealer is gambling that the reconditioning costs won't be more than normal, and that someone will want to buy it within their 60 to 90 used car sales policy, there are no guarantees of that expected future profit actually being realized. We all have hopes and dreams, some come true and some don't and that is exactly what the trade in represents, a hope and a dream.
I would hazard to guess that the offs are better than a crap shoot. As far as conditioning costs, I recently traded in a car in the morning and it was on the lot that same afternoon
Your Auto Advocate I had an appraisal done at CarMax and waited for the dealer to make an offer on my trade in. They were 3k off and they wouldn’t match CarMax. They asked me to go sell the car at CarMax and return with a check.
We have all traded in cars and the dealer never wants to give you what your car is worth on a trade in. They easily mark a car they paid 25 k for on a trade to 31k
This is really great information, but my question is, why should I care about making a "fair" offer? If I focus on what's fair, I'm going to get raked over the coals. Dealers have no intention of giving "fair" deals.
Would love your take on Covid affecting used prices. Dealerships where I am have started to lower prices a bit 10-15%. I like negotiating, and will feel ripped off if I buy now and a drastic price decline happens in a few months. Thinking of pursuing a private sale where their time waiting vs cash now is more in my favour.
Please do some research on the particular vehicle you want. Assuming that you need to get a big discount to buy something is a wrong mindset, especially with many more things being market based pricing or wait for things to mellow down.
Thank you for posting all of your videos lately. As a consumer, I have limited access to information in regards to purchasing cars. But, in the last 21 years I have owned approximately 33 cars. I typically trade in my cars every 6-12 months. I have owned a fairly equal mix of new and preowned cars. Over the last few years, I have encountered more difficulty negotiating than ever before. Whether it’s a lease or a purchase. New or used. For someone who likes to experience a lot of cars, what is the best way to do so in the future? I would like to continue to buy and sell cars frequently, but dealers don’t really care if I’m coming back in six months. They just care about the profits at the time of sale. Obviously I cannot go to auction, but the only way that I can buy and sell cars every 6 to 12 months is to obtain a decent deal where I can be as close to whole sale on my next purchase and as close to retail on my trade. Are my days of frequent car purchasing over? Or do I just have to pay through the nose now? I am accustomed to losing about $3000-$4000 (not including. payments) every year on cars that are typically between $20,000 and $50,000. But not the $8,000-10,000 that I’ve been seeing in the last 3 years. Am I just picking the wrong cars? Thanks so much!
Sunny Day I didn’t know you could do that. I could see that working on a new car. Maybe even with a prepaid lease. What about used cars? I would get more for my money with as 2-4 year old car. The main reason I switch often is to experience different cars. Not just to get into a different car. Thanks!
Why will dealers that have reached their 90 days selling period rather sell wholesale at auction, rather than lower their price to a retail client who's is offering above wholesale, but below full retail on their vehicle? It seems as if they really despise the retail client, which makes no sense.
Brian, perhaps the customer's offer is less than the anticipated price that the dealer could get at the auction, which from experience is often times the case.
Your Auto Advocate I’ll have to disagree on this one. Speaking from experience I’ve offered higher than wholesale but lower than retail on numerous occasions I’ve gone back to check the dealer on what happened to the vehicle and 9 times out of 10 they have for whatever reason sold the vehicle at auctions or wholesale for less than what I’ve offered dealers simply don’t like to give deals
@@casmithosoicy32 I think there is pride and greed combined with a fear of a precedent. News of good deals travels fast. It is not as though you can have customers sign NDAs (non-disclosure agreements). If you have to do it for one, you would have to do it for all. Therefore, they will take the loss on the one in the hopes that they can find another who will pay closer to the sticker price. In this economy, these salespeople and sales managers are hungry and literally salivating at the possibility of making a higher deal. As they have the family pictures on their desk, they have constant reminders that the end justifies the means. One of the sales managers even brought church into the equation to justify the unethical sales practices of one of his salespeople. It is a new world where we have to be extra careful of not overpaying.
I understand dealers have to make money and I have no problem paying a couple of thousand above the wholesale value of the car but a lot of dealers are asking 5 to 7 grand above wholesale. How accurate are the posted wholesale values on sights like Kelly Blue Book?
I don't think so much "what makes you special" to get a better price. Consumers (myself included) have been trained to believe that purchasing a car requires negotiation; that the list price is never the real price. And generally people just don't want to feel get ripped off (even more so than actually getting ripped off), whether they're right or not. While it might help in the purchase process, it's generally not front of mind for most consumers to understand the nuances of a particular industry's business model. And it seems like this particular industry is pretty complicated and constantly changing.
My question is, how do you determine the fair market value without using Kelly Blue Book? I've heard that KBB is heavily influenced by the auto industry to inflate used car prices, which is why I'm asking. Also, what tips do you have for negotiating with private owners?
I have always used the Nada book value bc that is what my insurance (geico) uses.. you can call your insurance and ask them good chance they are using Nada
I've been trying to buy a car that has a $12,999 sticker price for $12k (taxes &fees included). The dealer won't go lower than $12,500 plus taxes & fees. I'm really hoping they will give me a deal by June...🤞🏽
17:00 the problem with 1 Price stores is that when their “$100” margins is always met with their quota of vehicles, they stretch the 1 Price even more. I,e, if everyone overpays, they’ll continue to overpay.
I have a question the dealer had a car for the amount of like $ 13567.99 they had the picture online for that price but when we went to look at it they told us about that price and there was a new one car dealer sales person and he told us about the price so when we went to buy the car the manager said it cost $19,999.00. why does this happen. He told us that the new sales person made a mistake but then we saw it online for that price of 13 k. Do this happen often?
What is the best process to come up with an initial offer in a used vehicle negotiation with a dealer? Should it be based off of trade in value, private party or dealer retail? So far my research is showing they are asking about 5k over trade in value.
You make it sound easy but I’m 65 years old and disabled. Don’t have he stamina for hours in a dealership and the let me speak to my manager tactic. Want a slightly used car low mileage that has already took a depreciation hit for a reasonable price.
I almost bought a2011 expedition lxt for 16,981 but they are forcing me to buy the LoJack for $895 so plus tax and license and other fees $23,000 total but my wife noticed some rusts on the tailgate and hood painted but swollen and tires are bald still original so we offered $18,000 they countered $20,000 ,they let us walked away the car has been in the market for 24 days,Why do you think they let us go?Also I live 90 miles away and they let us go,seems their lot is full and not moving or selling.
I am currently in contact with a Ford dealer that has had the car ( a 32K miles, 2016 Sonic LT hatchback,1.4L turbo w/6 spd m.t.) for 243 daz and has not marked it down even once (Car Gurus).To make matters worse, the sales person will NOT give me an "out the door price".I just decided to quite contacting them until I get both Covid shots. Then I will drive the 120 miles to Rolla, Mo and make an offer. It might be a dry run, but at least I will either own the 2016 Sonic or be free to look else where. I will subscribe and thank you for any enlightenment! RGR in Kansas City, MO.
Need a car rn and looking to figure out what the dealers are actually needing to make a profit and what is extra. Got a 2007 car that's kind of rare, not extremely desirable, 150k miles, lived in up in the rust belt over half of its life. Dealer keeps saying it's lived down south for most of its life. It also came up here at 60k miles... He had nothing to say when I said that's over half of its life. The car looks good but they tend to rust underneath, get modded, but I want a stock car and it doesn't have factory wheels. They want 14800 but if it's rusty like it should be for being up north that long I think 10k is a fair deal but I understand they gotta make a profit. I think 11500 would be the most I'd go if it doesn't sell before. It's only been there for a month and a half though so I can't use that as leverage.
BUT.....I don't imagine dealerships give the market based price to the individual who traded the used car for a new one. So even if they are asking market price they are likely making a substantial profit.
Is there any benefit to purchasing cars from rental companies? Ie avis, enterprise etc? Also how does the current information you Just shared apply to those companies?
I appreciate the channel most of all Father and Son duo. Teach how to fish, legacy. good job pops. My question is regarding accidents on the car and multiple owners. For accidents with clean title vs salvage. What is a your rue of thumb on these when it comes to price and if you should even consider buying. With multile owners, is that a sign the vehicle was not good? I am looking at Ford Focus ST 2018. Differfence of advertised $16k, 1 accident, 2 owners with 28.5K miles vs adverrtised $24K, 2 accidents, 2 owners with 28k miles. $8k different in price. Thanks
Because some people always want to get a better deal than everyone else and there's nothing wrong with that. That's not about being entitled, it is his hard earned money.
Great videos. I'm so glad TH-cam "suggested' them. You might have covered this before, but I wasn't able to search it. What are you top used car online search sites? Edmund's was mentioned and True car. What's your favorite?
what makes me so damn special is that I am here right now with cash ready to buy this car and nobody else is. That is how I would answer that question.
What gets me is that I have no way of knowing how much extra is being tacked on to the deal at a one price dealer.. because we dont know what they paid for the used vehicle. So still quite uneasy about it.
Have been listening to your videos for the last 3 days and wow did my eyes get opened wide.I have been out on a fishing boat in the bering sea for 3 months.my wife is having engine issues with our 2013 ford escape with 112000 miles.the dealer says we need a new motor but cant tell us what exactly is wrong.I had her take it to a second shop and they said they couldn't find a problem.i told my wife tell them to keep it and drive it,2 weeks the no power issue came up.my question is what can I expect to get for it as is.been watching your videos so I'm better informed for my next putchase
Good video! So if CarGurus has a car listed as Fair or Good price (not above averaged or High), is that considered a market value dealer price? I would lowball them regardless and see what happens, but I have time on my side.
I went to a fine wine dealership last year. According to car guru, the used car i was looking at had been sitting on the lot 260 days. When I went to test drive, the battery was dead lol. The price was good according to the website, but I figured I could get more. I made what I thought was a fair offer ($700 below asking price). They politely told me to have a nice day. I guess the nail in my coffin (by watching your videos) was the fact that I told them I had my own financing. Anyway, I enjoy watching your videos. They are very informative, so keep them coming!
Hey Team Shefska! Lol! I really appreciate this video. It confirms my experiences in most dealerships recently. I would love to hear an update on Ray’s intuition around timing to purchase a used truck.
You seem very reasoned. Thanks. Car prices are still too high, that is, less valuable than many other more urgent and important family needs, but you have bounded the retail buying experience Thanks
Lifted trucks! Do a video on specialty trucks, and custom vehicle pricing, negotiation and trades cause let's face it, neither are selling at the moment! Subscriber since the beginning. #TeamShefska
They’re not taking a loss in most cases, bigger dealer groups will just rotate inventory between their different store. They have internal auctions where they don’t really loose money.
I've seen dealers with cars that have "birthdays"! It's so true. There are all kinds of store policies and so many badly run ones. Like everything else l suppose. My least favorite are those that require store generated financing.
Corporate philosophy. BMW is aggressively seeking sales volume and Audi is taking a much more conservative approach towards growth. It really is as simple as that.
This is an outstanding video, but the market is favoring buyers right now. There is substantially more product than consumers willing to buy a big ticket item like a vehicle. This should shift and alter the market dynamics. However, many Dealerships in the Northeast are holding on to pricing from 2 months ago. It’s very confusing, but unsurprising. I still believe that there are huge markups in trade-in, especially when a customer is trading in a vehicle with negative equity. It’s hard to believe that dealerships have not taken advantage of that to leverage a lower trade in value and artificially create margin on “what they paid” which is not disclosed. I agree that it’s a business, but there comes a time when a sale is far more beneficial then the margin you lose...
I saw today that Spanish banker Santander has agreed to a big fine for sub-prime car loans. Made me think of your show on pending damage to the car market. But the agreement blocked repos on those loans, a new wrinkle.
I absolutely hate car dealerships, I live in Lakeland Florida and there’s a independent dealer that’s been in business over 50 yrs. You will get a car or especially a truck $5000 off what a dealership charges. Paperwork is 20 min and out the door. He does not sell new but can get new if you like. I’m picking up a 2017 F-250 Powerstroke xlt premium with 23000 miles for $41500. He doesn’t talk in circles and confusion. Straight to the point. Your channel is great really enjoy it. Love the father son interaction.
doug hyland I’m in Florida and looking for a Toyota 4Runner. What’s this guys number or website?
L w sorry just saw this, the dealers name is Lovering Auto Sales. Talk to Brant Lovering, the dealer is in Lakeland
You're that dealership owner, aren't you? And this is an ad
My strategy for used car is always 1. find a car I am interested. 2. tell the salesman exactly how much I wish to pay for the car , a number I believe is fair. 3. If they say no, simply walk away, and look for the next car. I may not get a deal the first time but eventually I always get a car I like with a fair price I set. No need to waste too much time negotiating, if the dealer doesn’t like your offer, it is possible someone in the market highly likely going to pay more for the car. Just walk away, let that someone get it instead.
Great advice.
Awesome words thank you
Exactly. I’ve used this technique my whole life and I’ve never been upside down on a car loan. No need for GAP insurance.
@@markrocka8718 Yes! Deny GAP insurance it just puts more money in their pocket during financing the sale price, which is damaging your wallet. Depending on the state you can demand for doc fees to be waived.
Always walk away. I enjoy them begging me not to leave. I had one tell me and the wife they had a girl they would send to the school to pick up our kids, LOL
"Dealerships thinking their inventory is like fine wine; aging improves it" That nugget of wisdom made me subscribe😊 You're too funny Ray! Love your videos!
What’s your thoughts about buying a used RAV4 rental car if it’s from a Toyota dealership? Should I take it to a different Toyota dealership to get a PPI?
19:59
Great videos. I really enjoy watching them. Just purchased an SUV with my daughter using you insight and methods. Saved 4,000.00 on a 2018 Toyota RAV 4. Went and looked at them at 4 dealerships. 2 didn’t have any in her color she wanted. The third had one that was dirty and had small interior parts broken. The fourth is a data driven store and I managed to get another 900.00 off the price. We had cash down and no trade in and did not purchase any extras. The came with the balance of the bumper to bumper warranty plus the 5 year hundred thousand mile power train warranty. You guys are great . Keep the videos coming.
Wouldn't mind having someone like your dad during the car buying process. 👌
Good thing you can hire him lol
Crotch Banister He doesn’t sell cars. He helps people get the best price. Hence the name and business of Your Auto Advocate.
I appreciate your no-bull approach to the car buying business. I have always felt that I was getting screwed when I went to any dealership and did not believe a thing they told me. I have walked out of many negotiations. Of course, I check KBB before I go--every time. On my last purchase, I ended up paying the registration for more than one year because in California-at that time--the dealers did not have to register the car they way all of us sheep must.
Ray comes across as a guy who is telling it like it is.
love you guys , so glad you say used and not that ridiculous " pre owned '
I can ,, they're monetized YT videos keeps em afloat ,, they really haven't brought anything to the table for a educated car enthusiast with a modest amount of financial wisdom
love the business model explanation of used cars, it helps to see the big picture to know how to tackle a negotiation strategy.
Market based is exactly what I must be dealing with now. They will not budge on the price. Well, not more than $500. And it's been sitting there for 2.5 months.
Yep, I found a PRIMO car and they wouldn't budge a bit. But they wanted to add LOJACK, $890 DOC fee and some other fee for $399 plus taxes! The price was $18,500. It has sat for 3 weeks and they just bumped it up to $19,000.
For full disclosure, I haven't dealt with a used car salesperson since maybe 1995 so what appeared shocking to me could be what most would consider 'normal'.
First impression: place - an HGreg facility, they operate in Florida - look filthy inside and out in almost every way imaginable. Customer parking was crowded and I feared for my car's integrity because parking spaces were so narrow.
Inside, it looked like a crowded sports bar, only the screen had HGreg propaganda running.
I had an appointment for test-driving 2 cars but, since I had test driven the exact same brand and model at another dealership I told them that all I wanted was to see/inspect them and then, possibly discuss terms of purchase. They told us to find the cars in their parking lot - there were hundreds of cars there - vaguely suggesting one area were we were likely to find the vehicles. After 10-15 minutes of walking in a 90F heat we found one and it looked Okay but we never find the second one. Some employee told us to look elsewhere in the lot but 10 minutes later, no success. We liked the one we found enough so we decided to talk with a salesperson.
Oh, the sticker price on the car was more than $4000 higher than we saw online but we had a printout of the online price so we didn't worry about that.
The salesperson we were given forced us to listen through some BS talk about how special HGreg was because unlike other used car dealers, they were not negotiating prices so we were so lucky to be there. When asked about the online price vs on-car-window price discrepancy he told us that they will 'honor' the Internet price so I suspect that if you just walked in and liked the car, you'd be paying the extra $4000 if you were to buy it because price was not negotiable.
To cut the BS short because the bad vibes were almost unbearable, I asked the used car salesman to print us a contract with real dollar figures on it so we can decide whether we were going to buy the car or not.
So the contract included:
- a $400 BS electronic filing fee
- a $980 BS make-dealer-happy ripoff fee (sorry don't remember how they called that)
- a $500 made up title, tags and registration fee and he couldn't explain why it was $500 and not $400 or $600.
By comparison, Carmax fees for a similar car were $27 for electronic filing, $400 make-Carmax-happy and $402 for title and registration. Carvana's, from where we eventually bought our car were $0 for filing, $0 for making Carvana happy fee and about $300 broken down into precise amounts for Title, Registration and License Plate.
I told the used car salesman that I would agree to pay those 'fees' if he lowered the car's price by a similar amount. When he asked why he should do that and I told him that the 'fees' were absurd he told me that that was my opinion and they were not going to touch them.
So we left and, as I stated above, we bought a similar car listed at a similar price from Carvana. And 'saved' over $1500-2000 in HGreg's bogus ripoff fees.
I hope that not all used car dealers are like HGreg but then, I will probably never know because it's unlikely that I will ever again attempt to deal with such people and businesses. And I believe that we only scratched the surface of potential customer ripoffs here. We were going to pay cash so had no need for financing, had no trade-in and didn't care about a service plan because the vehicle we wanted to buy had some 2 years worth of manufacturer warranty left. But I can only try to imagine the many ways these people would financially abuse a customer who did need financing, did plan to trade in their old car and did want to purchase some post-sale support. Mind is boggled.
Two things: I recently made an appointment with a sales person at a dealership for a used vehicle I liked. The price had been reduced online and that caught my interest. When we started talking numbers, they used a higher price than what was online and when I went to check the website, they had raised the price by 2k.
I'm ok with the one price dealership as long as it includes a legitimate 2 or 3 year warranty. The finance manager at a dealership is going to try to sell it to me anyway so at least I feel i'm getting something for the higher price.
Next time print it off, and when they refuse to honor it ask if they'd like to be reported to the State Regulators (whoever it is in your state) and to Better Business Bureau, bad YELP, GOOGLE, etc review just for icing.
My uncle took his clean title 2002 corvette Z06 with 44xxx miles as a trade in and stealership offered 7,000 👊. And I'll give you 900 for that 6000 car. But they're "insulted" when the customer tries to get a few bucks off. This is why people hate STEALERSHIPS!!!
Great videos, especially about not telling them you are paying cash. My dad would wear his worst clothes and shoes with holes to go car shopping. 😂😂😂
So the used wholesale market at auctions is down for the past quarter and it continues to decline, That means that there are currently alot of cars sitting for months at the dealership that with no buyers. Furthermore, Hertz is soon to file for bankruptcy and they recently canceled thousands of car orders for this year from differentmanufacturers; all their used cars will soon flood the market which will cause an enormous oversupply... which means extremely lower prices for you.
If your looking to buy a used car, wait a couple of months. Your $15,000 car will go for $11,000 your 12,000 for $9000.. and so on. There are hundreds of dealerships that in the brink of collapse and they will be able to give a sweet deal to survive, dont settle for the ones that just want to give $700-$1000 discount bs. and dont even think to trade in your used car during this time, you will l get $0 to 20% at most for your used car, they are already saturated with inventory.
Thank you for the information I'm currently looking for a vehicle and it stressful I hope I can find a dealer that will be honest and B.S around I just wish I could have someone go with me that would know when the dealer is bullshiting
Boy were you super wrong
I read this commonly but its not like that at all. Used car lots are bare and I cant get to the them before they get sold.
Michael Viglianco because the money they pumping into people pocket, people have lots of money right now and used car price are jack up af. Fucking inflation.
@@tommydo961 Yup, the original comment isn't true at all. Car sales are booming and cars are flying off the lot with dealers making good profits. Here in Canada people got over $10,000 in government handouts because of COVID and they actually noticed the rate of car sales and finances for cars increased lol. Car sales will never crash, it's a daily commodity people want and need new cars to keep going in life. Dealership crashes were predicted but never happened.
You two guys are fantastic and I appreciate your efforts. Your channel is great and your DAD is a genius in his own way. I can listen to wisdom all day long and he has the "swagger" to go with the humor, knowledge, and experience. He's a person to be respected and you guys deserve all that you receive. Thank you and thank you again. I'll keep watching more videos, very entertaining and educational in so many different ways.
Llll
Pploolpllllllllllllolll
Plopp😊plllooo I’ll lol ok ok llllllllpllllll
Your channel is incredibly instructive...! I bought my third car and felt I had more knowledge of what I was doing than ever because of you guys. I ended up with I price I was happy with and felt the dealer respected me much more. Thanks a lot, I’m from Quebec
I love your videos! I have a question: How can you tell if a dealership is "Old School" or "One Price"?
Our one price dealers, have a hell of a lot of fluff in the final sale, over and beyond the set price. Same car, down to the color. Fluff dealer $32k car OTD 39.5k
Old school $35k car OTD 37.6k. So again dealer trained to take advantage of buyer even when car has a set price!
On my last car (used CPO) I really wanted to buy a certain car from a one-price dealership. The only problem was that their market price was a fair amount higher than every other car on the local market, including the one I ended up buying which was a year newer, had 10K less miles and more options. I guess they thought their wine was better!
Wow! It was great that you've shopped around
Usually it takes about $1500 to certify a vehicle usually it will come with a 2/24000 mile bumper to bumper warranty or something like that and those vehicles have been through some sort of an 112 point inspection on the car maybe that was the reason it was more expensive.
I bought my 2017 Mustang in August of 2017 from a very small used car dealership. There was no finance dept and no service dept. His model was to buy cars at auction that would sell quickly. The car still had some time left on the manufacturer's warranty. He didn't try to sell me a warranty and there was no pressure to buy. The price was fair. Yes hubby and I did research on prices for this type of car. I had the option to pay cash or by credit card. By paying cash I received an additional discount as the dealer saved the credit card fee on his end and passed it on to me. And yes I asked if a cash deal would reduce the price. The car was almost exactly what I wanted. The only thing that it was missing was blind spot monitoring. The only other Mustang EcoBoost premium with the features that I wanted that was available within a reasonable distance would have cost me $14,000 more as it was a new car. So I opted to go used with a car that had 26,000 miles. Nothing in life is perfect but I've really enjoyed this car. Would I like blind spot monitoring? Yes but that's all that I miss. Hubby and I test drove the car on Friday and returned on Saturday to buy the car. The dealership was a two man show and there was never any pressure. Btw, I'm just across the Potomac River from you in N VA. I really enjoy your videos!
This gentleman has an incredible resemblance to Michael Mckean, in projection and appearance.
*
This video is gold, very well explained.
It is so true, most dealers are data driven, that is the price, not a penny less.
Let me add to what he said, WHAT MAKES YOU SO SPECIAL?
He is wrong for him to ask that, the dealership made consumers FEEL special.
A $1500 profit on a $25,000 vehicle is a 6% return. If that is in 10 days that is a dang good return.
Yeah, he kind of went through that discussion pretty quickly like we should all just accept it. If they kept that up for the year, that would be a huge profit (over 800% yearly if my figures are correct).
I cannot tell you guys how awesome and educational your videos have been! Thank you!
Patrick is dropping gold nuggets! What a polished professional salesman!
The profit of a used vehicle is not in the selling of the vehicle. It’s in the purchase of the used vehicle.
The thing that might make that person “so damn special” is the fact that that individual is there at the moment ready and willing to pay for the car.. as opposed to the next that may come along say a week or a month later.. 🤔
Great video and info none-the-less! Thanks guys!!
I have successfully negotiated a price discount at CarMax -- but it was for a car that had been on their lot more then 60 (or was it 90 days). I vaguely remember a conversation with one of their mgrs. -- they incrementally mark down prices by a certain % after it has gone unsold for a certain number of days.
Great video. Video suggestion, the fees that they charge on used cars versus the fees on new cars. Thanks
Walid bahhur yes
Would love to see a video on buying a used truck in 2024 what mileage is good, what otd price is fair for both and when because I keep hearing prices are coming down but I've yet to see that. Thank you and keep up the great work!
Great review. I've learned a lot. I'm saving up right now for my dream car. THE INFINITI Q70L. I plan to have it in 2 years from now.
Top 20 vehicle to stay away from..Unreliable & very costly
Did you get it?
That "what makes you so special" tactic might work on some people. I would just walk away because I would feel insulted somehow i.e. the customer is always right or at least shouldn't be spoken to in that tone. Informative video. Thx
The customer is definitely NOT always right. BUT, the customer is always just that, "THE CUSTOMER". As such, the customer is important and necessary and deserves respect. It is a 2-way street and I have missed out on deals simply for being a corn-hole.
@@matthewaxtell Do you sell cars? lol
@@mulljacob Worse, Ag Inputs, Retail. I sell stuff people need rather than what they want. You always get beat up more by someone who needs what you are servicing.
@@matthewaxtell what should I google to learn about Ag Inputs?
@@PaulSchneider-bp2ic That's a question I don't know the answer to. Its kind of like not knowing your own phone number. Ag (agriculture) Inputs is what ever it takes to grow a crop. Seed, nutrients and crop protection products mostly...coupled with service.
Great Video! I'm just waiting for the best time to purchase USED.
Winter ... during a snowstorm, best time to walk into the showroom or office depending on dealership. Over 50 years of buying used, it sure is a customer advantage. Best months would be January or February. Stocks may be lower during those months, but definitely is right time for very good discounts.
The younger man asked some really good questions. Thanks for the video.
The "fine wine" method has been a Chasity Belt for dealers selling the P71 Crown Vics and the Mercury Grand Marquise of 1995 thru 2011 years. This year 2000 thru 2011 Lincoln Continentals have become moated. For old men wanting big doors to get in/out it's a sell your body parts to afford a purchase price. THANKS! I know more now than I did before I saw the video.
Y’all listen to this man he knows his stuff!!
You bring up a point that inspires a question. When a dealership wholesales a car to another dealership, does that show as another owner on the Carfax report?
Hey thanks for all the good info
We waited to buy . Prices went up a bit . So we just bought 2017 highlander XLE .the original out the door price was
38.000 we got it for 31 out the door . Pre owned certified . We used all your info . To purchase our car . Thank you .
Damn nice deal. I want a 2016 Chevy Cruz. They are asking 10,750. Do you think I could get them down to 9500?
at 17:56 , Ray you hit the nail on the head, it's not that I want to be more special than the other buyer, It's that i have complete mistrust and feel that I am overpaying for this depreciating liability ( knowing full well that it is already dropping in value exponentially anyway, unless I can get it for less than what the dealer paid), so the only way to convince me that i am not is to show me the price they paid and decide how much more over that i am willing to pay. I believe that the company is for-profit and is responsible t the stockholders to make that profit, so I'll agree to pay a small markup, maybe 5-10%, because i also know ( and this is sad but caveat emptor) they will gouge someone that does not watch and take the dad and kid show. BTW, i laugh when they say "no hassle pricing" and try to make people feel good, because i hear " hey sucker, we are sticking to you with no lube and you have no chance to get a good deal. LOL. Keep up the good work. I love Ray's evolution from these earlier videos where he seem to be a stick to the business, don't smile to now having the one liners and roasting his son on the air. Build my trust in them . ( hey , wait a minute, is that some old school car dealer tactic to get my trust? lol)
Hey are you planning on doing a video on how to navigate used or new car purchases in this volatile market. Are there deals to be had? Should we buy now or wait a few months? Will lease returns, repos, and rental car bankruptcy drive prices lower? Thanks in advance!
My initial offer is always 1/2 asking & that includes their doc fees / TL ,, I havent purchased 1 Vehicle with this strategy - and I never negotiate , I walk out and get in my paid off beater & roll on
This is fantastic content, I’m always going to want money off, it’s showing willingness to work with me, if you don’t move at all then I’m not buying your car it’s that simple, I don’t care what their model is. Your videos are awesome, so much good information!
I have a question: If you do have a customer that comes in and wants to pay the sticker price for a car, but it has special incentives like rebates or other price reductions, do you ever feel obligated to mention that to the customer or do you ‘go with the flow’ ?
I recently noticed where a couple dealers were selling a car and when you looked at the history of how they were discounting the vehicle you would see several deductions in price, but then you would also see where they added back into that price, and then start the discounting from this new price again. Sure seems like they're game playing by doing that to me especially when you can clearly see the car has been on the dealers lot for 80 or sometimes more days. I would think they would eventually realize that it's simply better to turn those dollars period.
Haha!
"Fine Wine Policy".
That was AWESOME.
Dealt with a couple of dealerships in Abilene, Tx who had that thought process...
... surprise...I didn't buy a thing from them.
I could be wrong here, but from my perspective, if you can get ahold of the original Sticker on the vehicle that helps. Take that amount, and subtract 20% off the top of the vehicle. Then also, subtract $1000.00 for ever 10K miles on the vehicle. This give you an amount that the dealership paid for the vehicle. Is that a valid process in your estimation?
Love your wisdom and willingness to help potential buyers become more savvy. Future video suggestion: How do you know "when it's time" to take the plunge and trade-in? What are the most common reasons (and most ridiculous reasons) you have heard for people wanting to trade-in/purchase a new/used vehicle? I became curious about this after watching the "needs assessment" video on your webpage. Thanks!!
I love your channel! I have binged watch just about all your videos in 3 days!!!
On a different topic. What would be a good tactic to negotiate a lease on a new suv that is selling on average at MSRP or higher? If that is not too specific would you do a video on that? Thanks for giving us more confidence when stepping into a dealership.
Love your info.but you frequently talk about higher end cars. Would you help out an old lady who's in the market for a new car at the lower end of the market say a Toyota Corolla. I imagine there's probably a wider margin for negotiation on higher cost cars so what about the parameters on the lower end ? Thank you.
We do not price negotiate on any other commodity except car. Just curious as to how it all started only for cars way back when. Now if we do not negotiate the price down, we walk away with the feeling that we over paid.
thanks you guys, useful and very quick output too :) you guys rock. so identifying what kind of dealer you are working with seems to be the main idea here. If you don't mind diving into that topic and how to find dealer types based on their revenue model , it'll be great. Also could you talk about trade in values. it seems like in most cases when you bring your trade in to a dealer you lose more money vs if you sold the car privately and walked in with cash.
Happy to help! Thanks for watching!
Almost always better to sell privately and buy privately for that matter!
I get the $1200 to $2000 profit the poor dealer is making when they sell it at market price. What about the profit they make in the trade in for that car????
The trade in is like playing craps, they are gambling. The dealer is gambling that the reconditioning costs won't be more than normal, and that someone will want to buy it within their 60 to 90 used car sales policy, there are no guarantees of that expected future profit actually being realized. We all have hopes and dreams, some come true and some don't and that is exactly what the trade in represents, a hope and a dream.
I would hazard to guess that the offs are better than a crap shoot. As far as conditioning costs, I recently traded in a car in the morning and it was on the lot that same afternoon
@@CarEdge What percentage of trades would you say end up on the dealers lot? Aren't the vast majority either sold to wholesalers or sent to auction?
Your Auto Advocate I had an appraisal done at CarMax and waited for the dealer to make an offer on my trade in. They were 3k off and they wouldn’t match CarMax. They asked me to go sell the car at CarMax and return with a check.
They rather sale it to the another dealership at the same price they got it for instead of make a profit? Smh.
We have all traded in cars and the dealer never wants to give you what your car is worth on a trade in. They easily mark a car they paid 25 k for on a trade to 31k
This is really great information, but my question is, why should I care about making a "fair" offer? If I focus on what's fair, I'm going to get raked over the coals. Dealers have no intention of giving "fair" deals.
If paying cash for a used car at a dealership when is the best time to disclose it and does the dealer prefer not to deal with someone offering cash?
Would love your take on Covid affecting used prices. Dealerships where I am have started to lower prices a bit 10-15%. I like negotiating, and will feel ripped off if I buy now and a drastic price decline happens in a few months. Thinking of pursuing a private sale where their time waiting vs cash now is more in my favour.
+1 - This is important!!
Please do some research on the particular vehicle you want. Assuming that you need to get a big discount to buy something is a wrong mindset, especially with many more things being market based pricing or wait for things to mellow down.
Great info guys 👏🏻👏🏻👍👍 I say this is one the most informative video among other great videos you have done. THANK YOU 🙏
Thank you for posting all of your videos lately. As a consumer, I have limited access to information in regards to purchasing cars. But, in the last 21 years I have owned approximately 33 cars. I typically trade in my cars every 6-12 months. I have owned a fairly equal mix of new and preowned cars. Over the last few years, I have encountered more difficulty negotiating than ever before. Whether it’s a lease or a purchase. New or used. For someone who likes to experience a lot of cars, what is the best way to do so in the future? I would like to continue to buy and sell cars frequently, but dealers don’t really care if I’m coming back in six months. They just care about the profits at the time of sale. Obviously I cannot go to auction, but the only way that I can buy and sell cars every 6 to 12 months is to obtain a decent deal where I can be as close to whole sale on my next purchase and as close to retail on my trade. Are my days of frequent car purchasing over? Or do I just have to pay through the nose now? I am accustomed to losing about $3000-$4000 (not including. payments) every year on cars that are typically between $20,000 and $50,000. But not the $8,000-10,000 that I’ve been seeing in the last 3 years. Am I just picking the wrong cars? Thanks so much!
Dude, if you have money like that, why not do 1-year leases?
Sunny Day I didn’t know you could do that. I could see that working on a new car. Maybe even with a prepaid lease. What about used cars? I would get more for my money with as 2-4 year old car. The main reason I switch often is to experience different cars. Not just to get into a different car. Thanks!
Check out the ceiling in his bedroom. He did well.
But who wears a white t-shirt and bathrobe for an interview?
Too much information made it as clear as mud. I just need a good used car without getting cheated.
Where is the detail “# of days the car’s been on the lot” displayed? How do you find that information?
Thanks for all you do!
Why will dealers that have reached their 90 days selling period rather sell wholesale at auction, rather than lower their price to a retail client who's is offering above wholesale, but below full retail on their vehicle? It seems as if they really despise the retail client, which makes no sense.
Brian, perhaps the customer's offer is less than the anticipated price that the dealer could get at the auction, which from experience is often times the case.
@@CarEdge So are auction prices actually higher than KBB trade in values, and if so, what is a fair percentage number higher than trade in values?
Your Auto Advocate I’ll have to disagree on this one. Speaking from experience I’ve offered higher than wholesale but lower than retail on numerous occasions I’ve gone back to check the dealer on what happened to the vehicle and 9 times out of 10 they have for whatever reason sold the vehicle at auctions or wholesale for less than what I’ve offered dealers simply don’t like to give deals
@@casmithosoicy32 I think there is pride and greed combined with a fear of a precedent. News of good deals travels fast. It is not as though you can have customers sign NDAs (non-disclosure agreements). If you have to do it for one, you would have to do it for all. Therefore, they will take the loss on the one in the hopes that they can find another who will pay closer to the sticker price. In this economy, these salespeople and sales managers are hungry and literally salivating at the possibility of making a higher deal. As they have the family pictures on their desk, they have constant reminders that the end justifies the means. One of the sales managers even brought church into the equation to justify the unethical sales practices of one of his salespeople. It is a new world where we have to be extra careful of not overpaying.
Mendacity.
You guys are awesome. Great information I saved quite a bit on a used car during this lockdown using your advice. Thank you!
I understand dealers have to make money and I have no problem paying a couple of thousand above the wholesale value of the car but a lot of dealers are asking 5 to 7 grand above wholesale. How accurate are the posted wholesale values on sights like Kelly Blue Book?
I don't think so much "what makes you special" to get a better price. Consumers (myself included) have been trained to believe that purchasing a car requires negotiation; that the list price is never the real price. And generally people just don't want to feel get ripped off (even more so than actually getting ripped off), whether they're right or not. While it might help in the purchase process, it's generally not front of mind for most consumers to understand the nuances of a particular industry's business model. And it seems like this particular industry is pretty complicated and constantly changing.
Super helpful video and now I know why several dealer would not budge off of their internet pricing. Thanks to both of you.
My question is, how do you determine the fair market value without using Kelly Blue Book? I've heard that KBB is heavily influenced by the auto industry to inflate used car prices, which is why I'm asking. Also, what tips do you have for negotiating with private owners?
I have always used the Nada book value bc that is what my insurance (geico) uses.. you can call your insurance and ask them good chance they are using Nada
@@UsernameUnkwn21 Thanks!
I've been trying to buy a car that has a $12,999 sticker price for $12k (taxes &fees included). The dealer won't go lower than $12,500 plus taxes & fees. I'm really hoping they will give me a deal by June...🤞🏽
@Travis Foti no doubt!
We know what the trade in is…they make far more in used than new.
9:34 it seems like they want volume AND max price.
When I see a car on website 200days….they should be giving them away? No pay at offered price?
17:00 the problem with 1 Price stores is that when their “$100” margins is always met with their quota of vehicles, they stretch the 1 Price even more.
I,e, if everyone overpays, they’ll continue to overpay.
I have a question the dealer had a car for the amount of like $ 13567.99 they had the picture online for that price but when we went to look at it they told us about that price and there was a new one car dealer sales person and he told us about the price so when we went to buy the car the manager said it cost $19,999.00. why does this happen. He told us that the new sales person made a mistake but then we saw it online for that price of 13 k. Do this happen often?
It only happens at crooked dealerships. Run, don't walk away form dealerships that operate that way! Stay safe and thanks for watching, Ray
What is the best process to come up with an initial offer in a used vehicle negotiation with a dealer? Should it be based off of trade in value, private party or dealer retail? So far my research is showing they are asking about 5k over trade in value.
You make it sound easy but I’m 65 years old and disabled. Don’t have he stamina for hours in a dealership and the let me speak to my manager tactic. Want a slightly used car low mileage that has already took a depreciation hit for a reasonable price.
I almost bought a2011 expedition lxt for 16,981 but they are forcing me to buy the LoJack for $895 so plus tax and license and other fees $23,000 total but my wife noticed some rusts on the tailgate and hood painted but swollen and tires are bald still original so we offered $18,000 they countered $20,000 ,they let us walked away the car has been in the market for 24 days,Why do you think they let us go?Also I live 90 miles away and they let us go,seems their lot is full and not moving or selling.
I am currently in contact with a Ford dealer that has had the car ( a 32K miles, 2016 Sonic LT hatchback,1.4L turbo w/6 spd m.t.) for 243 daz and has not marked it down even once (Car Gurus).To make matters worse, the sales person will NOT give me an "out the door price".I just decided to quite contacting them until I get both Covid shots. Then I will drive the 120 miles to Rolla, Mo and make an offer. It might be a dry run, but at least I will either own the 2016 Sonic or be free to look else where. I will subscribe and thank you for any enlightenment! RGR in Kansas City, MO.
Can you talk more about Carvana and how we can negotiate with those types of dealers?
You don't.
Need a car rn and looking to figure out what the dealers are actually needing to make a profit and what is extra. Got a 2007 car that's kind of rare, not extremely desirable, 150k miles, lived in up in the rust belt over half of its life. Dealer keeps saying it's lived down south for most of its life. It also came up here at 60k miles...
He had nothing to say when I said that's over half of its life. The car looks good but they tend to rust underneath, get modded, but I want a stock car and it doesn't have factory wheels. They want 14800 but if it's rusty like it should be for being up north that long I think 10k is a fair deal but I understand they gotta make a profit. I think 11500 would be the most I'd go if it doesn't sell before. It's only been there for a month and a half though so I can't use that as leverage.
BUT.....I don't imagine dealerships give the market based price to the individual who traded the used car for a new one.
So even if they are asking market price they are likely making a substantial profit.
Most spots do, They use resources like MMR to gauge a wholesale price.
Is there any benefit to purchasing cars from rental companies? Ie avis, enterprise etc? Also how does the current information you Just shared apply to those companies?
I appreciate the channel most of all Father and Son duo. Teach how to fish, legacy. good job pops. My question is regarding accidents on the car and multiple owners. For accidents with clean title vs salvage. What is a your rue of thumb on these when it comes to price and if you should even consider buying. With multile owners, is that a sign the vehicle was not good? I am looking at Ford Focus ST 2018. Differfence of advertised $16k, 1 accident, 2 owners with 28.5K miles vs adverrtised $24K, 2 accidents, 2 owners with 28k miles. $8k different in price. Thanks
Because some people always want to get a better deal than everyone else and there's nothing wrong with that. That's not about being entitled, it is his hard earned money.
Great videos. I'm so glad TH-cam "suggested' them. You might have covered this before, but I wasn't able to search it. What are you top used car online search sites? Edmund's was mentioned and True car. What's your favorite?
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Brian Kennedy it’s difficult to appraise an used car. The market is messed up cuz of COVID.
Cargurus, cars.com, autotrader, Kelley blue book, carvana
What about searching for the trade in value and adding a reconditioning cost? Isn’t this close to what the dealer paid for the car?
Yea, this is true. They usually just change the oil and wash it.
I am in Canada trying very hard to buy a car this week having awful trouble with a etching fee I do not want to pay at 499.00
what makes me so damn special is that I am here right now with cash ready to buy this car and nobody else is. That is how I would answer that question.
I'm really enjoying your channel. Lots of great wisdom being shared.
wow ray seems like a deep thinker , i'm waiting on his every thought
How do you get the Manheim Market report? I’m looking for a 2016 Civic for about 8k-9k. Do you think this is possible?
Explained everything perfectly. I feel much better about what I paid for my used car knowing what I now know. Thank you
What gets me is that I have no way of knowing how much extra is being tacked on to the deal at a one price dealer.. because we dont know what they paid for the used vehicle. So still quite uneasy about it.
Thanks for this video, confirmed alot of my suspicions about pricing.
Have been listening to your videos for the last 3 days and wow did my eyes get opened wide.I have been out on a fishing boat in the bering sea for 3 months.my wife is having engine issues with our 2013 ford escape with 112000 miles.the dealer says we need a new motor but cant tell us what exactly is wrong.I had her take it to a second shop and they said they couldn't find a problem.i told my wife tell them to keep it and drive it,2 weeks the no power issue came up.my question is what can I expect to get for it as is.been watching your videos so I'm better informed for my next putchase
Good video! So if CarGurus has a car listed as Fair or Good price (not above averaged or High), is that considered a market value dealer price? I would lowball them regardless and see what happens, but I have time on my side.
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I went to a fine wine dealership last year. According to car guru, the used car i was looking at had been sitting on the lot 260 days. When I went to test drive, the battery was dead lol. The price was good according to the website, but I figured I could get more. I made what I thought was a fair offer ($700 below asking price). They politely told me to have a nice day. I guess the nail in my coffin (by watching your videos) was the fact that I told them I had my own financing.
Anyway, I enjoy watching your videos. They are very informative, so keep them coming!
Is Auto Lenders a good place to buy a used car or certified used? Also what does "NO HAGGLE PRICE" Really Mean?
Hey Team Shefska! Lol! I really appreciate this video. It confirms my experiences in most dealerships recently. I would love to hear an update on Ray’s intuition around timing to purchase a used truck.
You guys are great, and I look forward to your contributions within the automotive sales market daily. Keep it flowing gentlemen.
You seem very reasoned. Thanks. Car prices are still too high, that is, less valuable than many other more urgent and important family needs, but you have bounded the retail buying experience Thanks
Lifted trucks! Do a video on specialty trucks, and custom vehicle pricing, negotiation and trades cause let's face it, neither are selling at the moment! Subscriber since the beginning. #TeamShefska
It seems strange to me that some dealers will send a car to auction, or another wholesaler for a low price, but not give the customer that same price.
They’re not taking a loss in most cases, bigger dealer groups will just rotate inventory between their different store. They have internal auctions where they don’t really loose money.
Like grocery stores will rather throw away food than give it away. The customers would become the wiser.
I've seen dealers with cars that have "birthdays"! It's so true. There are all kinds of store policies and so many badly run ones. Like everything else l suppose. My least favorite are those that require store generated financing.
Another great video. Can you discuss why manufacturers like BMW seem to always offer much more incentives than Audi?
Corporate philosophy. BMW is aggressively seeking sales volume and Audi is taking a much more conservative approach towards growth. It really is as simple as that.
@@CarEdge Thank you!
This is an outstanding video, but the market is favoring buyers right now. There is substantially more product than consumers willing to buy a big ticket item like a vehicle. This should shift and alter the market dynamics. However, many Dealerships in the Northeast are holding on to pricing from 2 months ago. It’s very confusing, but unsurprising. I still believe that there are huge markups in trade-in, especially when a customer is trading in a vehicle with negative equity. It’s hard to believe that dealerships have not taken advantage of that to leverage a lower trade in value and artificially create margin on “what they paid” which is not disclosed. I agree that it’s a business, but there comes a time when a sale is far more beneficial then the margin you lose...
I saw today that Spanish banker Santander has agreed to a big fine for sub-prime car loans. Made me think of your show on pending damage to the car market. But the agreement blocked repos on those loans, a new wrinkle.