How Car Dealerships Rip You Off (The Truth)
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- Опубликовано: 4 май 2024
- In this video I explain exactly how car dealerships rip you off. A lot of car dealerships implement the four square method, which is just a simple way to make you think that you're getting a deal.
Car dealerships are a very sophisticated network of stores that know how to separate you from your money. Not all dealerships rip you off, but the ones that use the four square method do.
Don't get ripped off on your next car purchase and watch this video until the end.
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I sold cars for 20 plus years, he is correct about it all.
_"If you don't want a shark bite, don't swim with the sharks."_
That's what happens when you walk into a new car dealership. I'm never buying a new car again LOL. I love Craigslist and Letgo, and I have a BlueDriver OBDII scan tool and cash in my pocket.
Thanks for your honesty.
Except we don’t use 4 squares anymore. We let the pencil do the talking and grind it out from there. I guess some dealers still do but the salesman of this generation can’t work that like a tool.
Thank you 80 KOL
Nope only half right
I walked into a dealership and told the sales guy that I was "going to buy a car today". When we couldn't reach a deal and I started to leave he said "I thought you said you were buying a car today." My reply was "I didn't say I was going to buy it here."
Awesome!
Ooooo big bad car buyer, why waste your time at that dealership then? Sounds like something a total db would do.
What music was playing in your head when you dreamt that scenario
Ben Chesterman what does that have to do with this conversation?
The key is to waste as as much of the salesman's time as possible. Drag the sale on for a month or 2.
The more you shop for a car, the more you like what you're already driving.
Steve Brown agree with you unless what you are already driving is a piece of junk. 😃
@@ruinunes8251 brother you know how true this is !!!!
Mr.F I know man. I’m looking for a car to replace my old tired civic, but the more I read about new cars the more I want to keep my old one.
@@ruinunes8251 im in a 2012 GTI but looking for a 2000 civic EK lol
Mr.F Nice. Go for it.
When I bought my last car, I negotiated the price of the car first. I said I wasn't sure if I wanted to trade in or have 2 cars. I also had my own financing through a credit union. When it came to my trade, I had already decided I needed $6500. I asked for $8000. They told me they couldn't pay $8000 because they'd never sell it for $10,000. I stood up and said if I couldn't get $8000 I couldn't afford the vehicle and I might as well leave. He played the whole, "let me talk to the manager" schtick. He came back and I got $7200 for my trade.
A week later, I got on their website and my car was listed at $11,500. These guys are snakes but it is possible to get a decent deal. I'd say the number one thing is, don't get emotional and don't let your excitement for a new car turn you into a sucker. Be prepared to leave. That paper isn't a contract so it means fuck all even if you initial it.
I went around to all the dealers around here collecting trade in offers for my truck. One dealer had the car I wanted, checked the VIN on KBB and saw it was priced 4k under market value (it's been on their lot for over 100 days), and when time came for trade in appraisal I told them 44k or Im outta here. They finally came back and said they could do 43k. Took the deal. The truck is listed for 45.5 and has been sitting on their lot for awhile now.
You think their not going to make a profit on a trade in? Do you not know how a business is ran? Plus if they had to do any work, routine maintenance, detail. Pay their workers , commission for the sales guy, pay the electric bill to keep all the lights on… and still make profit from that??
@Shady thank you brother. Somebody understands
Bitches want shit for free 😭
It's not a snake deal. If you knew more about ACV value and clean trade retail fair market etc.... every dealership knows someone is gonna come in and negotiate price you set it for a fair price that way while it's being taxed on the lot you have aome room for error. Stop complaining about a profit the US moves on profits.
There is a difference between getting ripped off and coming to an agreement.
My daughter learned the hard way a few weeks ago. I went with her and was not nice to anyone at the dealership, I knew she wasn’t getting a great deal but she didn’t care- she was happy enough.
Fast forward a week- we were waxing her car and she popped the trunk, only to find some lug nuts in a package. She asked” what are these?” “ they’re the factory lug nuts; the dealer took them off and replaced them with locking ones.” I said “ remember those fees I was bitching about? The ones you said I was being unreasonable about? The dealer charged you $495 dollars for those... you could have bought them for $30 and did it yourself.” Point made. Mic drop. Suddenly, I’m a genius
Bro what was her reaction when you told her 🤣
@@kookiemonsta6409 everybody clapped
🤔
I don't think you know what you just said 😂😂😂
You a jackass. Figured I'd come back here and tell you this. You have no clue what you are talking buddy
My grandfather always said "no one is doing you a favor by taking your money"
Love this
Buddy Fennell thanks. definitely miss him.. he was also find of saying "and if a frog had wings, it wouldn't bump it's ass on the ground".. also "horsecock!" In place of bullshit. Retired army Colonel.. had a bunch of colorful sayings
I've always said, "You can break even watching TV", meaning you won't get ripped off if you don't enter into any kind of agreement. I like your Grampa's version more.
42lookc thanks! He was a smart guy and I'm grateful to have known him
@@jseden Yeah, I remember the "frog" phrase from the movie Raising Arizona with Nicholas Cage. "If a frog had wings, he wouldn't bump his ass-a-hoppin". 😂 Your grandpa was a classic old timer.
I love how it's all wine and roses with the salesman then, waterboarding and red hot pokers in the financing office.
"You really need to seriously consider getting the extended warranty." "Why?! Are you selling me a piece of shit?!"
The number one tip in a dealership; never hesitate to simply get up and walk out.
I've done exactly That, and the salesman call me on my cell phone min later when I was on the freeway and try to get me to come back to the dealership.
I've only owned 2 vehicles in my driving years and have never bought them at a dealership; my Mexican dad says those are for suckers....I see now he was right all along....he didn't go to school but those street smarts win out in the end!
I've been an auto mechanic for over 20 years. Many of the problems I see daily could have easily been avoided by simply following the vehicles maintenance schedule. I use a program on my computer called Automotive Wolf car care software to keep track of all the maintenance for my 3 cars, a truck and even a generator. It automatically can send you text message reminders when any type of service is due. Two of my vehicles have over 200,000 miles and have never needed any repairs. Want to save money? Follow your maintenance schedule!
As soon as a salesman says,"I'm gonna be honest with you", RED FLAG!!!
Said every guy ”I won’t come in your mouth” (yeah I know about the spelling)
the signal salesman start lying
I always say that though and I don’t lie to my customers so should I change my whole vocabulary cause someone else screwed over a guy?
Haha that implies you're not always honest?
Charles Hummer I am ? Like I really do try to help my customers out. I drive an hour to get to my job and love working there. It’s way better than being a factory supervisor like I was before. I think it depends whether your going to a big dealership or an independent dealership.
Rules too buying a car (and I sold cars too unfortunately):
1) Never take sticker price. That is never the real price.
2) Buy in cash every time. Don't buy if you need to finance because that is a losing game. Leasing is by far worse.
3) Find out the "X-pricing" or the manufacturer's buy back amounts. These are the amounts the dealer has from the manufacturer so they can profitably move vehicles from dealership to dealership and "x-pricing" is the pricing employees and fleets get. Use that as your leverage.
4) Never trade in a vehicle. Sell your vehicle privately.
5) 0% financing is not 0%. The bump up the price and bake in the cost of the interest. That is why they won't wiggle on the price of 0% or will wiggle very little.
6) You should buy a used vehicle that is 2 to 4 years old that is in good condition. The majority of the value of the car is lost in the first 3 years of the vehicle from the moment you drive off the lot (driving it off the lot is the single biggest drop in value).
7) If buying used, make sure it is in good condition from a third party.
8) All new trucks have a minimum of 10,000 of wiggle room or at least 30% if it is a very cheap compact truck (like a Ranger).
9) Always go to 3 dealerships minimum, if not more.
10) Never buy from a luxury dealership unless you like buying sticker price (Lincoln, Lexus, Cadillac, Infiniti, Acura, Ferrarri, etc.).
11) Japanese dealers are sticklers for forcing you to buy at MSRP or so close it is effectively MSRP. Screw them.
12) If a salesman has been there for 3 or more years, they are professional sharks. Those are the pros at negotiating. Avoid them.
13) Never buy anything after market from the dealer especially additional warranties or "care packages".
14) Every salesman has a script and they follow it religiously, or know it well enough to hit the major beats to not appear they are following the script. It is all about getting your emotions up for the sale by test driving, building rapport, by presenting features, and then get you to sign as fast as possible. They are not your buddies: they are blood thirsty sharks.
15) Every vehicle has their own buzzwords for features that are in every car in their segment. Things like "Ecoboost" and "AdvanceTrac". Read ahead of time of what the equivalent is in other vehicles. Salesmen love using these buzzwords to make you think that this vehicle is unique. It is not. It is the same as all of the others.
16) Every used car has a minimum of 20% wiggle room in the price and probably more. Do your research first by checking Kelly's blue book, and the marketplace to see who is overinflated in price.
17) Dealer's used vehicles are barely touched by the mechanics. Usually just detailed and cleaned which is cheap. If it is was a lease buy back, it will likely have problems.
18) Most important because idiots argue with me on this all the time: leasing is the stupidest and most expensive way to buy a car. It is designed to get you into a car and pay enormous penalties at the end while still paying car payments on the most expensive part of the vehicle: the front end payments.
Thanks for your input sir very detailed 😉
Wow!
Great information. Thanks
thanks a lot for your good intentions
“Buy a car in cash”
Ramsey man. I love it.
Thanks Marko, we always did the things you mentioned but not in such detail. Thank you, we know it takes lots of time in making and editing these videos, appreciate your free knowledge.
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
I subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your adviser
Through closely monitoring the performance of my portfolio, I have witnessed a remarkable growth of $485k in just the past two quarters. This experience has shed light on why experienced traders are able to generate substantial returns even in lesser-known markets. It is safe to say that this bold decision has been one of the most impactful choices I have made recently.
Wow, that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.
I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?
Never walk into a dealership unless you’re willing to walk out.
there instantly on you like sharks
We walk out every time and rarely trade a vehicle
Max Power you know your shit!
Never buy unless the salesman and manager are screaming at you.
M Detlef , pure genius. Bet you paid sticker price.
I went to a dealership a few years ago and told the salesman that I was just looking for a new toy. He asked what my budget was, and I said $30k max. I didn't mind doing that, because I know what cars are worth, and I've been around the block enough times that I'm not going to get suckered in. We ended up test-driving a 500hp supercharged Shelby Mustang that I KNEW was well over $30k, but I just wanted to see where this would go. Lol... so we sit down in his cube, and he tells me that he can get me into the car for $41k. He tried to pull all kinds of tricks to make me think that it wasn't that much different than $30k (you know, because numbers don't really MEAN anything...). I ended up walking out. He called me for like two weeks after that, and I finally told him, "Look, dude. I was ready to spend 30 grand on something I don't even need. You could have made an easy sale, but instead you got greedy. So now you don't get shit. And stop calling me." 😆
LOL
That's biggest problem with dealerships. Inexperienced sales people that never get proper training. You told him your budget and he's wasting time showing a car way above your budget. A good sales person would have never let you test drive a vehicle that was over your budget.
Had a similar experience. Saw a 2015 mustang gt with only 700 miles on it. I setup an appointment to test drive. I get there and they immediately have me test drive a brand new 2019 gt and a 2019 roush. I told him I wasn't here for that and he responds well we just want you to see what else was available. So I test drove them and when I was done he asked "so what do you think? Want to talk numbers?"... I said "yeah, on the 2015 i originally came to test drive! I can afford the other 2 but i dont want to pay that. So either give me numbers on the 2015gt or I'm out!". He realized their little try to up sale game wasnt working and threw away the numbers he had the finance guy work up while I was test driving the other two. I think he realized I was on the verge of getting pissed off so tightened up and finally let me test drive the 2015 and gave me numbers on it.
@@IamBlackMagic03 The funny thing is he was actually down selling you as far it effects the dealership because there is more profit on used than new. They may have had the Roush marked up but the new 2019 GT would have made them nothing since those are a dime a dozen and have little mark up. Used is where they make the money. On average dealers lose between $100 to $200 per new car. They can make an average of $2,000 to $3,000 on used cars. By having you drive new over the used one you were interested in, the salesman was costing himself money where had you bought the new he would have only made his mini deal which ranges between $75 to $150 commission depending on dealership vs an average of 25% commission on $2,000 to $3,000 on used where he could make $500 to $750 commission selling the used vs a mini deal making between $75 to $150 selling the used. Just another case on an inexperienced sales person that was never properly trained.
@@johnlyn1 Realtors do the exact same thing to homebuyers. Their goal is to drain you of every last penny they can squeeze from your pre-approved lender amount. If you can afford $500K, don't tell them that, if you want a house for $300K; tell them that $300K is your absolute ceiling. Just because you are lender pre-approved for a certain amount, don't max it out, that's just as dumb as maxing out your credit cards for the next 15-30 years and only making monthly payments! Every deal is designed to enslave you for the longest term possible to milk you for everything you're worth to the dealer during that negotiation.
Easy ways to fix this.
Always sell your own vehicle.
If you can get your own financing
And never look at montly payments, ALWAYS LOOK AT THE end price of the vehicle they are trying to sell you.
Just today I went into a dealer and they literally refused to sell me a car when they knew they couldn’t scam me out.
I'm running into this now. Looking for a bigger vehicle to accommodate a bigger family and I go right past the monthly payments into price, or I figure out what the monthly payments add up to and adjust it down to whatever price I wanted plus reasonable interest. They dont budge and I just walk away. Used car prices are nuts right now.
That's crazy! I noticed for a few years now that I have to really push to get a price for the vehicle and not a monthly payment number! So insulting and annoying
As a former salesman, If you do decide to finance a car, don’t focus on the payments. They will distract you with what you want your payments to be but never drop the actual sticker price down.
So you already made all your money and trying to fuck over everybody else getting into the car business by telling people they’re all trying to scam you, ect. Maybe a small amount of salesman are pos but majority are just trying to feed their family like everybody else. Salesman also need to make money.
@@Jodyjo99 they need to go do something that’s actually beneficial to society then.
@@romanshevy257 lmfaoo the stupidity in that comment is comedy🤦🏽♂️😂 giving people something they’ve dreamed of for a good price while also helping the salesmen out isn’t beneficial for both parties? Dude you probably work at a grocery store or some shit stop acting like you’re saving the world with your job
"My manager is in a good mood, he's a great guy" HAHAHAHAHAHAHAHA YES!!! THEY DO SAY THAT!!! thanks for the honesty!
When they say my managers in a good mood, we as the customer should interrupt and say does that mean I’ll be getting the car for free.
None of the dealerships I dealt with used the 4 square method....they used the all-the-numbers-mixed-up-in-a-single-column-so-I-couldn't-tell-what-was-going-on method. Equally effective.
LOL!
LMAO
J Ashton 😂😂😂
Same.
J Ashton 😂💀
Thank you. Every young person should watch this. I filed a lawsuit against a car dealer, he threatened me and had me followed. I posted it online, 9 other women came forward. A nightmare.
Thank you for this, it was helpful.
But I REALLY hate these stupid negotiating games we have to endure just to get a vehicle, mainly just to go back and forth to our jobs.
You forgot to tell everyone to never trade-in a car. Sell it yourself and make a lot more money.
Not always possible when people are upside down.
@@jeremybuchanan289 if you're upside down in a car, you shouldn't be buying a new one.
@@samg5543 if only people lived that way, but they don't. Hell, moat people don't have cash to put down, trade, then are even worse off.
But if you trade in, you don't get hit with sales tax.
@@lievaleo5746 you will pay sales tax on the car you purchase.
Went to a dealer last week. The finance guy offered me a loan at $350/mo. I asked what the interest rate was. As if it didn't matter he said the rate was 5 or 6%. I told him my credit union already approved me at 3.25%. He said "oh, I can do that".
@Simon I think the dude above meant a year older than the new one for example 2020.instead of.2021.
Never Ever finance through the dealership. They will get deals with banks, and then add points on the interest rate. Always get pre approval from your bank or credit union before going to buy , then finance through them !
I did the same and I was like lower a car from 18 to 15
Thank you Marko for this video. I don't buy trucks often but I have this video saved and every single time one of my friends talks about buying a car, I send them this video.
This dude is dropping all the secrets in the car selling trade.
Good.
Just remember these dealership guys do this several times a day, but you probably only do it once every few years. They get a lot more practice than you do. Beware.
true
Kinda like a Vegas casino...
Don't let them pressure you into signing same day. They'll be just as willing to sell you a car tomorrow and if they aren't you can go elsewhere.
I am nasty in math
Alot more practice. And beleive they are better at it than you.
Nothing beats the relief and sense of empowerment when you have a well functioning vehicle with no car payment!
Thoroughly agreed!
I would say a paid for home would rival that.
I'd take good health over that any day!
Walked in in September, test drive 2017 Beamer...1 hour later drove out ... paid in full. The guy who dealt with us tried his very best to push tire maintenance, while car service for 2 years etc etc etc...altogether would have added $3 Grand to the price we bought the car...with taxes and everything, we walked out $1,400 more with taxes and registration and whatever else!!!! They were mad
I was sooooo happy i got declined buying a 2019 Honda accord for 26k because i just moved to the US and had 640 credit score with 6 months credit history. Now im driving a 2014 fully functional toyota corolla LE i bought and haggled for 6.5k from this guy with clean title and single owner.
If they "go to see the manager" and make you wait for 20 minutes... leave!!! I waited at a doctor's office once for over an hour. Few days later that doctor came into the bank that I manage asking to send a wire. I made him wait for an hour and a half. When we finally sent his wire, I came out from my corner office and whispered in his ear "remember me? Your time is not more valuable than mine"
Just told a dealer that our bank was going to finance with us and their faces said it all. They went so far as to say that they’d have to keep the vehicle for 10 days for the check to clear and they still have the option to sell it during that time. Told this to our bank and they never heard such a thing
I had to read that second sentence twice because I couldn't understand it. That's wild. If I buy the car and sign on the dotted line, it's a sealed deal and neither of us can get out of it.
You just described every car buying experience I ever had. "My manager is in a good mood today." 😂
I left the dealership this week when he tried to tell me that the price of the truck doesn’t matter, the monthly payment is what matters! That’s when I told him we’re done.
Well it’s true only worry about it if you’re going to buy it cash.
@@GuyHarvey182 so you walk in knowing your max monthly budget is $1k and want to buy a truck with a price tag of $62k and they tell you that its 0.00% interest for 72 months with a monthly payment of $1,000 just like you wanted so you are telling me that the cost of the vehicle doesn't matter cuz now you are getting ripped off for $10,000
Julio Almaraz like the video said people with half a brain lol
If a person can't multiply 72 X 1..... he DESERVES to get ripped off for $10,000. With a copy of the bill of sales you could take it to court and have the salesman's sorry ass thrown in jail for fraud. But I can't believe any salesperson could possibly put something this rediculous on paper.
The price of the truck matters if your buying cash, why fight for a tiny amount of money off when your financing ? , make sure the monthly payment is right, it fits into your budget and you account for things like insurance. If you do your research and have proof on why your asking for a discount and not pulling it out your ass then 99% of dealers will happily give the discount.
This was amazing. I am in the process of buying a car and this gives me way more confidence about understanding my decision. Thank you, Marko.
Marko changed skin color 💀
how did it go
Great video, and accurate for "old school" dealers that still use a 4-square. I worked at a Chevy dealer that used them, but at Toyota and at Cadillac we just printed a DMS-generated deal sheet with all numbers, and a section for payment selection which you'd get the buyer to focus on and "select" which payment they wanted. You would then know if it was a "lay down" or someone that wanted to negotiate. In this seller's market though, there is little to no negotiation - the "deal" is if the unit you want is even in stock. My buddy at Land Rover tells people that all the time - merely having it is your deal because many desirable models are selling way above sticker this year, and allocation is razor thin to replenish what they sell.
Currently looking at new cars. Are you saying we should just accept their numbers because of the market?
I can agree with this. I am being pressured to do a non-refundable $500 deposit on the 2022 Hyundai Accents because 2/3 in-transit have already sold before even hitting the floor.
I'm taking my time though, not gonna have a deposit hook me in my jaw.
and one golden rule, if something doesn't feel right, dont be afraid to walk away. Remember, they need you more than you need them. you as a customer have the power.
agreed
@@iamnormal8648 as long as you know their tricks, you can beat this game. here are few tips:
1. Never tell them that you want a specific car. always make it look like you don't care what you buy as long as you have reliable car. even if you are a car enthusiast. that keeps them on the edge because they are thinking that you can change your mind.
2. Always tell them you are only here for quote because you are going to check out another couple of cars from a different manufacturer and you ll make you decision based on that. Then they know you will walk away to look at the car and once you are outta that door they have no control over the situation, so they ll bend backwards to keep you in their store. ( this is the best one because i have used it many times when i went to negotiate with my friends).
3.always arrange your own finance before you go in, but don't tell them that you already have it sorted. because otherwise they ll start to adjust to that straight away. listen to their offer and if you feel like you are ok with the vehicle price, then just tell them you have your own finance.
4. Be friendly, but keep some barrier between the salesman, because they ll try to act like they are your friends, make them work hard for your "trust" question anything if you need to. remember they need "You" to spend your money so they can get their Fat paycheck.
@@iamnormal8648 Also try to see if you can get a good 2nd hand car privately, because a new car is always going to lose money. i have been changing and upgrading my cars almost every year. its my 9th car in 11 years and i always get a 2nd hand car below market value form someone wanting to sell it quickly. it could be that they are moving away or they have other various reasons. so if you can get a car lower than the average price privately, you can potentially upgrade your car every couple of years and still sell yours on a good price since you brought is cheaper to start it.
it is a bit of work and requires hunting. but with time and patience it works. just cut dealers out of equation all together
It never feels right at a car dealership.
Just be upfront and honest about what you want done. Don’t let the salesman shoot in the dark.
Been in the business for 26 years. While the 4 square is old style of selling, it still happens. And it is designed to beat the 5% of customers not educated enough to see through the crap. As soon as the salesperson or manager presents anything that looks like this, get up and leave. Go home and visit 3 dealers via internet and get your pricing that way. Beware if one guy is thousands lower than the other two guys, he is probably just trying to get you in the door. Then use an online calculator to figure payments. This is not a difficult process.
I also see a bunch of comments telling people to sell their car on their own. This is generally a smart way to do it. But there are two things to watch out for. If you car is junk, just trade it in. You don't want or need strangers calling you at all hours of the night and day. Think of your safety. Too dangerous in this world now. Besides, let the dealer take the responsibility for anything that is wrong. If you sell a car that "unknowingly" has a bad trans and someone just shelled out their last $2,500 to buy it, you can bet you will be getting a call from that person. No dealership in the world is going to call you after the fact and want money from you because the used car manager missed the bad transmission. Second, if you decide to sell private party, make sure you get enough over the dealership offer to cover the loss of taxes. When you trade in (in most states), you will also get a tax credit for that amount. $10k car traded in is worth $10,700 private party if you have a tax rate of 7%. I saw someone get $30,000 for their car from me only to sell it private party for $31,000 and think they won. At 7% tax, they just lost $1,100 (tax savings on $30k is $2,100).
85% of all salespeople out there are decent guys and gals. If they are transparent with their dealings, and are willing to answer questions and back up their statements with solid math, there is no reason to not trust them. The really smart ones will be honest. I can sell one person, rip them off, and make a bunch for myself. Or I can take very good care of them, make a little, but then sell the wife, the children, the neighbor, the boss, and even their vet and make a lot more doing it the honest way. And now I have 5 more people passing along my name instead of one going on facebook and bashing me.
Honest sales men are rare! What a gem you are! Hahaha
Jabber 82 you should come out to Dallas and preach this. Here all car salesman are pretty much.. well.. just salesman
It's GOTTA be more than 5%
Good advice. I graduated in 1973 with a bachelors in Finance, spent 26 years in commercial leasing and lending, then went into subprime auto finance for one of the largest banks in the world for 12 years working with Finance Managers at Dealerships. I'd buy their sales contracts, administer the loan and collect the money, repo it if necessary. I've been retired 10 years and the market has changed because both the manufacturers and dealers have more difficulty moving cars. AlMOST EVERY CAR PHYSICALLY IS BEAT TO DEATH AND HAS NO VALUE AT 84 MONTHS (except for granddad's) It was a stretch at 72 months but the only way to get a payment the customer can afford has been to extend the term of the loan. That means the customer is paying the same rate of interest for 7 years.
Auto Finance dealers will accept the trade in as the "down" unless the total of the customer's payments on the trade in car's financing are greater than the Kelly Blue Book Wholesale Value. If that occurs, the customer is "upside down" and he is severely limited in the "amount of car " he can buy. If the trade is used for down, then lenders look at 15-20% of the "if sold" price of the car to be purchased. If you go on Kelly Blue Book dot com and plug in your car's information, they will ask you questions about the condition of your car. They rate it from Excellent down to poor. You'll have a better idea of what the dealer will offer based on the Kelly number. If you have a "beater" car, good luck.
When a customer drives into the dealership he may see 1000 cars on the lot. The salesman will qualify him on monthly payment. Let's say it's $400. That means the customer will have a selection of maybe 10-20 cars on the lot that the salesman will try to sell him. if the car lot has 7 used Ford Escorts and 2 used Toyota Corollas, the salesman is going to push him to the Ford Escort. Another factor that determines which car the customer sees is the length of time it has been on the lot. If its been there 60 days the sales manager is breathing down the necks of his people. If the car has been there 30 days, not so much.
Based on the credit and payment history of the borrower, an auto finance company will pay from 100% to 120% of the "if sold price" to the dealer. This will cover tax, title and license for the car. The Auto Finance guy will try to sell a Guaranteed Asset Protection Contract or GAP which will pay off the car if you are hit by an uninsured motorist and/or don't have adequate coverage from your insurance company. In some instances, this is not a bad idea if you have a large sales price on a big SUV or a large payment. Some insurance won't pay sufficient amounts to pay off the loan and you're left with the remainder. The Finance Guy will also try to sell a service warranty that will cover certain expensive repair items. The older the car, the closer the attention to making a decision on it should be made. Don't buy "premium lug nuts," "competition floor mats" or "chrome muffler bearings." These are add-on aftermarket profit centers for the dealership. The finance company won't finance them.
Read your contract before you sign. Ask questions if you don't understand. The Finance guy will be pissed off but he's making money on you so be ready to walk if you don't like anything. DON'T GIVE THEM THE KEYS TO YOUR TRADE IN UNTIL YOU'VE SIGNED THE NEW CONTRACT AND HAVE KEYS TO THE NEW CAR. If the dealer has possession of your car it puts them in the position to put max pressure on you to close the deal regardless of how bad it is for you. They are adept at ripping arms and legs off of customers.
Your credit score will drive your interest rate. The auto finance companies send out "programs" with rate sheets and terms and conditions, advance % and other things that could determine where the auto finance manager sends your deal for pre approval. No matter what the call back is, the finance manager is trained to call the auto finance company to "rehash" the deal. Finance manager training courses spend an entire morning on the rehash call. So, those guys are loaded for bear when they call back. The auto finance manager might put your pre-approval out to 4 or 5 different lenders, depending on program fit and the lender's appetite. Sometimes if a dealer has sold too many deals to a lender that go bad and the car is repossessed, then the finance companies get skittish. Lending company reps are in and out of dealers several times a week structuring deals with them. The dealer says in placing deals, "I'll give you these 5 premium deals but you have to take these 2 dogs along with them." There is a lot of give and take that is always changing.
Bottom line, be happy with the deal you buy along with the car you buy. You will have them for at least 3 years (average time between trades) and if either one of them is bad for you, it will grind on you every time you turn the ignition.
You mentioned that a dealership would never call you back on your trade and say something about the condition after the deal. I had one do just that. I traded in a Camaro that had cat claw scratches all over the hood, roof, and decklid. It looked really bad, except when it was wet. You couldn't even see them if it was raining. I had my eye on a Trans Am, and the salesman was calling me daily and bugging me to come in and do a deal. I waited until it was raining, and they gave me what I thought was fair on the trade, so I made the deal and drove away in my new (used) Trans Am. The next day when it had quit raining, that jerk actually called me and told me "hey, this car is all scratched up. You need to come back in so we can re-negotiate the deal because I am going to lose on this trade... I told him I was having buyers remorse, (really wasnt.. I loved my Trans Am...) and if I came back in, I would likely give him the Trans Am back. He said I couldn't do that because I signed the contract. So I told him to go "F" himself. It felt good to get one over on them for once, even though I am sure they still made a bunch of money even with a loss on the trade.
Another great informative video Mark. I can see where the buyer should focus and also where the salesman will focus. Makes a lot of sense. Thanks, Steve in FL
Showed this to my husband (never purchased before) after our experience at a dealer, and he thought I was some wizard because I know these similar ropes. Haha. Thanks for explaining this simply because it helped me feel validated and helped him realize how this game is played. I of course asked for my own coffee before he could offer. ;)
I remember buying my car 2 years ago, out the door price 32,290. Come signing papers, it was 35,000. I asked the dealer what happened, he said " oh the taxes and fees blah blah", and I did the math right in front of him and showed him it didn't add up and he left and returned with the correct amount.
Glad you didn't fall for it! Good for you but I bet they get a lot of people with that one. SMH
Same happened to me. That's why you always check what you are signing, because they get tricky with price
Yes I got screwed too. I've been looking over my paperwork on my current car and it has the wrong interest rate and the base price was higher than what I saw online. I had no idea they would screw me like that. Lesson learned.
Wow!
A car I like 26500 on sticker . Then they want 30020 after all is done and less then half on KBB on trade in . That's why Mercedes dealer make 100k plus a year. Biggest waste of money
Never met this guy, but he just called me an idiot
bahopik me too, and he is just right.
Haha!
and i feel like he’s right
you very funny guy
Jajajajaja. That was a good one.
Man this was phenomenal information to help in the future. Thank you very much for putting this video out there. I wish I had seen it 2 and a half months ago when I traded out of a lease and into a purchase, but you earned a subscribe from me sir. Also I'm from Akron myself so I support local people
LOL I was just at the dealership getting some car service done and then this video pops up on my YT feed. THANK YOU for the transparency. I have bought two cars from dealerships and this is exactly the process they put you through. I did recognize some mistakes that I have made, but I really do enjoy having my extended warranty. ESP since my car was the first of its model. That security. I will take your advice for the future. *subscribed
Separate your transactions. You're doing 3 things, not one. You're selling a car, borrowing money, and buying a car. If you do all three things at the same time, you give the dealership the power to leverage one aspect of the deal against another.
1. Do your prep work. Know what your car is worth. Get printouts of the Carfax and Edmonds and Kelley Blue Book values for it. Figure out which car you want to buy (including trim level). Find out the MSRP, the book value, and the actual selling price in the area. Also call a few dealerships to ask what the extended warranty costs. Decide before you ever leave your house whether or not you're getting an extended warranty. Shop for rates on a loan with several banks and credit unions.
2. Go to a bank or credit union and get pre approved for a loan under terms that you're comfortable with.
3. Go to the dealership and haggle down the price of the car to what you're comfortable with. Close the deal and fill out the paperwork.
4. After you have the keys in hand, tell the dealer: "On second thought, maybe I do need to sell my old car. I can't drive them both home. Here's the Carfax on it and the Edmonds and Kelley Blue Book Values on it. I know you need to have a margin in there, but what'll you give me for it?" Be comfortable with walking away and selling the car on your own if they lowball you too much.
It's also helpful to mess with them to show them that you're on equal ground. "That's a really nice brochure you've had printed. I bet a lot of people think those extended warranty prices are fixed because they're printed in a brochure. I'll give you $750 for the extended warranty." Whether you end up buying the warranty or not, it shows that you're not fooled by simple mind games.
What do u mean by extended warrantys not being fixed?
@@indo3052, when you buy a car at the dealership, they take you back to the "finance office" to shoe you brochures of what the extended warranties are and what they cover. They often have the prices printed in them. Sometimes, the look up the prices based on the year and model of the car. None of that matters. The price of the warranty is more flexible than they want you to believe. Sure, there's a bottom limit that they can't sell a warranty below without losing money. But that bottom limit is much lower than the brochure price.
- - ahh. Thx...good thing u can usually get a prorated refund on them after the fact. I just did on one vehicle
Hey 3 weeks ago !! Thank you so much for taking the time to post this incredibly valuable information.. Very kind of you.... :)
- - I agree with your recommendations with one alteration. If you wait until you have the keys in your hand you are missing out on possible sales tax reduction from a trade-in. So, as you said, do you homework on the new vehicle, know what you can get from others for your old vehicle, have a great financing option already figured out before you walk in the dealership, negotiate the price of the new car/truck without any other distractions (I prefer to do over the phone with the dealership’s Internet salesperson), *then* talk trade-in.
If you wait until you have the keys in your hand you are missing out on possible sales tax reduction from a trade-in. Hypothetical example: if your trade-in is a 4 year old platinum F-150 FX4 and worth $35K a trade-in might reduce the sales tax by $2,500. Other offers would need to be that much better than what the dealership is offering.
The best actors aren't in Hollywood... They work in Car Dealerships! Great insight Marko! Thanks for the video!
Lol thanks for watching :)
@The fastest milkman in the West Well as much as I hate it. Everyone does and should have a fair trial because sometimes those "rapists" are actually innocent and just women lying and even happens with some alleged murderers too.
Thanks for what ? It’s not true what he was saying
best actors are those around you calling themselves 'friends'
There should be a one semester course in high school 1 hour per school day about basics like this. Thanks for sharing the truth
Ummm..we have the internet so....
Schools are too busy pushing propaganda!
Not only that... simply multiply the monthly payment by the term length to see how much in interest you are forking over.... It will open your eyes as you will see you've pretty much bought a compact car with the interest alone!
I’ve worked in dealerships for over 20 years.
The finance department is the absolute bottom of the barrel.
This video is accurate
then you are a turd, probably never made it to management!
@Terry Melvin sure because if you finance directly from a bank or credit union they will not repo you???
Credit unions pay a "flat" to a store for selli g them a deal, zero rate markup allowed, warranties come with a markup of course. Does Best Buy sell warranties out of the goodness of their heart? For those who end up needing them theyre well worth it. The car business is not always this guys take. I will show you carfax and autocheck. I will show you an independent aim report to condition of vehicle. I will show you all available service history including our recon bill, and the checklist for inspection, brakes, tires etc. My cars are worth more than the cheap outliers because i don't have to hide anything. How is that ripping you off?
This guy is just another joke. Failed car guy broke off his @$$. I’ve been in the car industry for 20 years.... seeing this is another financial advisor with bad credit spinning BS. Most dealerships/manufacturers have 0% financing so banks can’t do better. Catch is for all u people saying “the big bad car guys” pay ur bills so u can qualify! Now the 20 year guy saying finance is the bottom of the barrel..... get out of the industry please. Your the reason we have a bad name. Hang up your gold nugget ring and white shoes. Lot lizards are dead just like the “for square” go be a Walmart greater where you belong. As for this youtuber your about 5 years behind! Go back to school. No one uses for squares anymore.
D .G please get out of the car industry! The industry doesn’t need deadbeat lot lizards dragging us down!
Everytime I walk into a dealership... I head straight to the soda pop and popcorn machine, grab what I can and walk straight out.
😂😂
Gold
u made me laugh soo hard... LOL
too funny!!!
What IF you buy car with cash? And they lower the car price?
Marko, thank you for making this video, you gave a lot of knowledge to all the people specially those who are out there trying to buy their first car.
I've bought cars for many ppl in my family and I truly believe I got better deals than most folks can. Never trade-in a car at the dealership. Sell the car privately, take that money and use that towards down payment. You're somewhat right on most of these Marko. But I'll give some more pointers:
1. Do thorough research on the car you want to buy. Compare prices between dealers and private sale price for that car. By this time, you should get a ballpark idea of overpriced and good priced deals.
2. I'm going to argue with Marko about "bring your own financing". That doesn't work anymore as most dealership can beat your own finance and use that against you. Ex: You bring your pre-approval that's 4.5% APR. Dealers probably would have given you 2.9% but now since they saw your 4.5%, they'll offer you 4% and say we can give you a better interest rate than your bank!
3. However, do get pre-approved to see if you qualify but keep that to yourself. (carry the pre-approval with you and use it in the END if dealers won't give you better APR)
4. Go to dealership END of the month... maybe last 2-3 days of the month because they are desperate to meet their sales goal.
5. Do not go on WEEKENDS, go on a rainy weekday where there won't be much customers. Which means they need the sale.
6. Like Marko said, never negotiate "monthly payment", negotiate the price of the car. if you done your research, you should already know how much your monthly cost would be.
7. Haggle them in every situation. Offer low price, offer Drive-out price (out-the-door).
8. If they don't give you the car for the price you are asking and you want to agree to what they offered, say "OK, I'll accept that ONLY if you include.. XXXX. That means you can ask for extended warranty, 1-year maintenance, accessories..etc..whatever you want, try to get them with the included price.
9. Never be afraid to WALK-OUT of the deal if they don't accept your price. Either they'll call you back or you'll lose the deal. You'll find same or better deal elsewhere.
10. You control them, they do NOT control you. remember that. You're the one with the power.
One last thing, dealership does LOSE money sometimes. They'll sell some cars on negative to meet sales goal and quotas. So yes, you can get an amazing deal!
eX.Gaming I agree, but at times, trading in can save substantially on taxes since you'll save that $$ off the new car purchase. Do the math before hand. This is particularly true if you're in a high tax state where taxes on new purchase can be 7% or higher. But the key is to discuss and disclose trade , if you go this route , well after you've locked in price of new car.
You should publish a RUclips video, it would be better than the one above
Thanks, for advice. I’m thinking about going to buy a car next month!
That's true on used cars. on new cars, the dealer is paying interest to the manufacturer as if they own that vehicle on their lot. As the interest costs climb, they have to get back that money they've paid in interest to the car company by way of a higher sales price, giving them less room to make a great deal. It's a double edged sword.@MissBttrsctch
Buddy, every deal is important whether it's the busiest day of the year or the quietest
Negotiate the cost of the car only. Sell a trade-in outside the dealership. Finance outside the dealership.
Yup never trade in.
@@y_rb4080 I've traded many vehicles for more than I could have sold privately. People need financing and dealers don't verify income like credit unions so they have a much larger buyer pool than any private seller.
@@2010drive Totally makes sense and I agree. Im just saying you could most probably sell a vehicle at a higher price point compared to the one offered by a dealership by a trade in if you have the patience to wait it out.
yes, no, yes
Ive traded in lots of car for close to or actual price of a private party sale. the trick is lots of research, know how much your car is worth and know how much the car you want is worth. Some states have tax advantages to trading in too. In nj, you only pay tax on the difference between the price of the car your buying and trade in. So, I purchase a car for 40k and trade a car for 30k. That 30k saved me 2100 in taxes. So, I would have to sell that car privately for 32.1k just to break even. That isnt including the time and cost of trying to sell the car. On that car, i also paid 500 under invoice for an indemand car that I factory ordered and waited 8 weeks for it to be built. That same car I traded in for 30k was on lots with an asking price of 34 to 35k. So, who would spend 32 or 33k privately for a car that is advertised at 34 for 35k...especially when I cant finance someone. Sure, they could jump through hoops with a local credit union for financing private party sales, but if your savvy enough to do that, you know most dealers will match or beat that rate.
so yes, negotiate the total price, trade minus price of car, trade in if it makes sense, sell privately if it makes sense and get financing outside of the dealership and let the dealership beat that rate.
Id feel bad selling a lemon to a private party. But trading in a lemon to a dealership no regrets fuk em
This is wild, because the manager at a Honda dealer in Vancouver, just explained this to me; he said how other dealers will bs you like this. Then he said “who knew that being honest and transparent was a better sales tactic “. This dude literally put everything right in the table and I was impressed
YOU ARE A HOMIE. We love you so much. Always hated this process, but love your attitude and perspective haha.
Thank you very much for being honest with this process and for making this video. Subscribed!
9.7K dislikes are from dealership agents or people that just bought new cars
Thx for the likes
Or people who got "took"
Yes bcus this guy is piece of shit bcus he also was doing it before!!! His such an idiot for this video..
Tell us how you really feel, @@aboadeko805
Maurice Clark true that
Abo Adeko he’s not black, so he doesn’t steal cars like you.
I just payed off my Honda Accord that only has 50k miles on it. Looking forward to many years with no car payments.
u got 450k miles left before engine needs oil change and 200k left on tranny lol
Victor Sanchez If it’s a manual make that 800k
@@u13erfitz never seen a honda with 800k yet.... are you sure thats not toyota?
Too bad it’s such a boring car.
I did that with my Saturn Ion many years ago. It's a 2006. Paid it off in 4 years and still driving it today. Has 165k miles now. The day I paid it off was a great feeling!
Very informative, and well presented. Thank you for sharing such use information 🙂👍🏻
Love all your videos btw💜
Excellent overview!! I bought my last car and worked off out the door price. Took doing lots of homework before walking in the dealership but avoided all the drama explained in the video. Keep making the awesome videos bro!!
When car dealerships can’t screw over the customer, they screw over the sales rep.
Could not have been said better.
True. They meaning sales manager
Freditasium YES FUCKING SIR. FUCK WORKING IN THE CAR TRADE.
True....but not the customers problem...
They signed up for the whole tour. No tears for them. They take the commissions without any qualms they can take the screwing equally.
I worked as a banker for 9 months and we had a similar sales approach to our loans and credit cards. I hated it so much. Guess I didnt have the fortitude to knowingly rip old or broke people off. I quit.
gosh, my banker is trying to sell us a line of credit and company credit card now. they're relentless.
They're all brokers aka sales agents and the only lender is you because it's your signature on the promissory note, the Banksters never sign to be liable for anything. The dealer is going to transfer aka sell/assign your documents and promissory note aka bond over to the Banksters who are really brokerage insurance/assurance companies calling themselves investors. It's all fraud!!!
Thank you!
Good ,your integrity as a person is more important than any money on the world
@@romeg9893 gtfkdfggdgmfshi
I was a car salesman before I had my own Bubble Tea business, I have to say this video is the most accurate realization of what I did everyday as a salesman. I can see how my customers' brains struggle and overcome the emotions when they buy cars. I will only be buying cars with cash from now on.
I worked on the systems for a large dealership chain in Minnesota. Their system was designed to run a credit check, get financing offers from a few different lenders, and present the financing that was best for the dealer, not the customer.
Marko, I agree with everything you say here- I spent a year at a dealership and saw this too. However, I studied Advertising in my business degree and learned this process is all about EMOTION. If you go to buy a car and you are emotionally invested, all these tricks from the dealer will work on you. My #1 rule in buying cars is to be ready to WALK no matter what they do. EMOTIONS= EASY SALE
I was definitely able to walk when my price wasn't right even with the boss coming in lol I was like well if its meant for me It will be here and I drove off
Tried to walk one time, but then my car wouldn't start in the dealer's parking lot...
@@jeremypenn1 😂😂😂
Tim Tebow sure is knowledgeable about cars
HILARIOUS!!
Pat Maroon
🤣🤣🤣
I KNEW I HAVE SEEN THIS GUY BEFORE! HAHAHAHA
Yes, especially Jaguars. 😅
Great video! Thank you so much. Very helpful as I am preparing to make a vehicle purchase when the time is right as I just saw your most recent video about the car repos exploding. Thank you for your content!
I love how he called me an idiot and I smiled.
I use to work at a dealership for 11 years. He is telling you the truth
100%
Just pay cash 😂
The truth? About what, how dealerships make money? What's his next video about, how the grocery store "rips" you off by making money? He didn't explain how the dealership rips you off, he only explained how they make their money. I can't believe people expect a business to sell them something and NOT make a profit.
@@WhiteBoardFinance
Change your channel's name to just 'Whiteboard Finance' and drop your birth name at the front of it.
@@Andrewkc1969 It's the difference between buying a $200 dollar mattress for $400 instead of $999. It's not that people don't expect others to make a living from profit, but noone likes being taken to the cleaners for unethical price tags! It's the whole matter of intrinsic value vs. perceived value.
Actual value vs perceived value
In layman's terms, the real (or actual) value is what the product is actually worth, without any outside expectations from the consumer or seller. Perceived (or intangible) value is what consumers think the product is actually worth. Marketers create intangible value to make up (greedily profit) for real value.
Never trade in a car. Sell it yourself. A dealership tried to give me $1,200 for a car I had as a trade-in, I declined and sold it myself for $4,300.
Absolutely. Get a quote from Carmax and use that as a base. Sell it yourself for more.
You are absolutely right. People worry about that...and I did myself. But it's not that difficult. Sold my car myself. Was the first time doing it and it was realy easy. The dealership was giving me 4 800$ on a trade...sold the car myself for 9 000$!!!
Terry Melvin wow
@@Craig805 better than CARMAX, just get on auto trader or a similar site and see what similar cars to yours are priced at.
Good job genius. It’s called wholesale vs retail. The dealer needs to sell your car at a profit. Dealers are good at what they do. No one is stupid enough to pay you retail value for your car and then turn around and sell it at no profit.
Your videos are great! This one especially hits home. Keep up the great work!
Great job on educating us. I bought a Chevy 5 years ago and made the mistake of paying cash. I also had a trade in and was given $500 initially. I told them that I will buy their car if they will give me $1500 for my trade in. They accepted and I took the car on Saturday. Sunday at home I saw that if would of financed the car through GM they would of given me $1000 of the price. Monday I called them and they were nice enough to redo the paperwork so I got an extra $1000 off. Five months later I paid my balance and by doing these things saved an extra $2000 for myself. Watching this video make me think I did a good buy.
Bought an Accord and maintain it = 200,000+ miles looks and drives like brand new and no car payment since 2008.
Best decision I ever made.
What if you bought the car in 1988?
2005 Accord, 108k miles, no payments since 2010. I agree with you, best decision I ever made!
Bought wrecked 2012 Audi with 25k miles , fixed, took it to a dealer, got extended warranty up to 100k miles. Drove s@it out of it until warranty expired and sold it to private rental company for over $1k more I bought it for. Reason it was BLACK just like they need it. Cheers
@@kckunkun - No no no. Bought the car in 2006 brand new. Paid it off early. The Accord looks and drives like the day I bought it. Radio button is worn down but that is so minor I forget about my horrible channel surfing affliction.
@@BeaverMonkey accords and camrys and subarus are unbelievable machines.
Keep negotiating until you get the car for free plus the candy bowl they have on their desks
I dare you to go into business and sell everything for free and see how long you are in business. Good luck!!
Magic Banana Gamer the candy comes with the price of a toothache.
Lmfao 😂🤣😭 that would be nice... haha
@@theroddimus Ninesven is just kidding. You simply walk out if you don't get the deal you want. No biggie
H.I.L.L.A.R.I.O.U.S.!
This video is 2 years old now but I can not express enough his advise to go get pre-approval at a good bank or credit union FIRST before going to a car dealership. It works.
Do you get pre approval for a specific amount first? Or do you find the car you want and then approach the credit union?
I'm so happy I found these videos you made. I'm buying a truck and I feel way more confident about going to the dealership
My experience at dealerships being scammed they have convinced me it is less expensive to just repair older vehicles than give a dealership a third of my monthly income.
Well this man just insulted me several times in this video. I think I'm going to give him a like.
I have your best interest in mind. Tough love
Lol 😂
Lol I smell u a car sales man 🤣🤣🤣
I'm a salesman and can tell you this buying a car is no different than going to Wal mart and buying food or clothes. They just like any store are open to make money. The car world is not what it was 20 years ago before internet.
@@nickycox9296 .........nick want to buy a bridge ? your pants on fire !
This is awesome advice and insight. I love your delivery too, great information thank you!
Thanks dude, is my first time buying a car through a dealership and didn't know if it was best to go to the bank and get pre-approved
In 2015 for the first time I went directly through my credit union to purchased a used car. Called them up, gave them the car details, and within 10 minutes I was approved with the lowest interest rate I'd ever had on a car note. I went to pick up the check the next business day. Handed it to the dealership finance manager and only had to wait around to fill out paperwork for tags/title and get my car detailed. The most hassle-free and worry-free car-buying experience I ever had, and this was my 8th car.
I died at “ you might as well get your rear end serviced”😂😂😂😂😂
ZakiosPS ...I wouldn’t mind if he is the service guy 😁
ZakiosPS I wonder if he offers it 😉
This is valuable information and the main reason my wife and I always get preapproved for financing via USAA prior to going to the dealership. I look at it as being informed already on what you want to spend and not have to haggle with a salesman. I recently purchased a newer car last year during the peak of the pandemic as the vehicle I was researching price dropped lower than it had ever before on that particular year, make and model. After traveling to the dealership to test drive and thoroughly look over the car I was ready to purchase. We told them we were already preapproved for our financing and they said alright let’s begin getting the paperwork in order. Of course they wanted to add in their warranty and maintenance plans so everyone should do their due diligence and also research the total ownership cost of the vehicle you’re planning on purchasing before saying “yes” to adding it towards your financing. I’m not saying to not get an extended warranty but to have knowledge of all your options and furthermore what’s covered.
Traded in a hard driven, cracked windshield, missing trim stained carpet, bald tires, missed services basically very poorly maintained car and the dealer gave me a remarkable trade-in deal on the same vehicle but a newer model. The new vehicle was a one-price with a 5-day lowest price guarantee. They put numbers down on paper, I asked for a specific APR, they worked in a number within 0.5% of my request, then off to financing. I said no in advance to everything except for gap insurance. Bought the car for a smaller down and monthly payment than my calculations before visiting the dealership. I'm still in denial that I might have gotten an outstanding deal, lots of credit to this video for helping me prepare.
It always amazed me how people will argue over $1,000 on the listed price of a car but just accept whatever interest rate is given to them.
If you have the cash to buy the car today, sometimes it worth getting a loan at the dealership with a higher interest rate but with added incentives to bring the price of the car down and just pay the loan off the following month.
Step 1: don't mention that you are trading in a vehicle until you agree on a price of the car you are buying.
Step 2: determine your trade value ahead of time and don't budge.
Step 3. Get preapproved credit for the amount you want to finance at a fixed rate and tell them that after you agree on the trade and purchase.
Step 4: offer to get up and walk out if they find any of this disagreeable. Chances are if its the last week of the month and they have spent several hours negotiating and test driving, you can get your price. I have walked out of dealerships after 4 hours and taken all the numbers to a different dealership and had the second dealership agree immediately to what I am offering.
Most people who "determine" the value of their car have no idea what they are doing - you think it's in "excellent" condition when it fact it isn't -
@@jeffruck7757 Most of the time its "fair" condition when you look at how the assessment system works. The problem is that car dealers try and create a large margin on used vehicle sales by offering such low value on trade ins.
as far as trade value is concerned, be intelligent enough to understand you can't trade for a retail value, that is a number you can expect if you sell the vehicle yourself and the vehicle is in top notch condition. Trade or wholesale value is a more realistic number.
The first question the salesperson asks is: "Do you have a trade?"
@@mms8393 - salespeople deflect questions all the time. Do likewise. Push past the question and talk about what car you want.
i find you funny and real the way you talk in sales reality..i learned from you
Great video I’ve listened to it three times. My wife is a Akron U graduate class of 84.
I got ganged up on by the salesman, floor manager, sales manager, and finance Honcho.
What a bad trip baby...
so what happened?
Same thing happened to me today but I already knew how they work so I argued with them a little bit just for fun then walked off.
Marco,
Wanted to leave a comment to thank you for this video! My wife and I were first time car buyers and we used the advice from this video to get a deal that we were very happy with. We really didn’t know exactly what we were getting into, being first time car buyers, but after watching your videos we were not surprised by any of the tactics the sales people gave us. We ended up walking out of the dealership because they were not at the number we wanted and as soon as we got down the road they gave us a call offering the OTD price we wanted. So I just wanted to leave a comment saying thank you for the video, it really helped!!
My pleasure please share 🙏
@@WhiteBoardFinance So is It a good idea to drop a 40% down payment?
Awesome info , I was hipped to the game when I purchased my last car deal.
I used to represent auto dealerships. What this boils down to is: buy a car from a dealership. Do not buy insurance or money from a dealership. Nothing. Just the car. So, get a loan before you go shopping. Get your warranties and insurance on the open market from reputable sellers. The only warranty worth getting is on a new car, from the manufacturer. Other than prescription drugs in the USA, the biggest markup on the planet is the premium on any sort of insurance you get from a car dealer.
My favorite part is when they send you to the finance department, make you wait 45 min to an hour so that you are so anxious to get the hell out of there that you wont read any of the details on all the paperwork they "throw" at you.
"you're gonna sign that, cause you're an idiot." brilliant. Literally laughed out loud.
I've been there! 🤣
I just started watching his videos coz they came in my recommendation somehow but i like it he keeps it real and isn't trying to be a ass kisser
@@orianna9200 what kind of lawyers left a bad impression? Most are up and up.
@@orianna9200 what about antique dealers?
Hate telemarking people too along with lawyers and car sales people.
I was about to purchase a new truck. Boy ! am I glad I watched this video. Thanks!
It’s just so frustrating because you never know how much more the dealer can come down in price. Every time I’ve ever settled on a price on a monthly payment, I’ve always wondered how much more I really could’ve saved if I haggled more.
If they just barely refuse, you can still go down about 10% more and they still make money on the deal.
Thanks a lot man, your videos save many people from getting their rear end serviced.
Really enjoyed it
😂 “rear-end serviced”
@@RUclips_Enjoyerlol was
My last rear end service was $2100. Thanks Ford Flex. Wasn’t even a dealership.
Omg stop.
@@eswing2153 you bought a Ford what you expect 🤣
Mark that was one od the best video info I have seen about selling cars. I used to be in the car business but I got sick entirely watching these people ripping off poor people cause they were just VAMPIRES . Once I had a customer who I really was trying to help and she promised me to vome back in 6 months( Young mother with 2 children) and she couldn't pay more than $250 a month back in 2011 and I was just getting a flat commission so My sales manager bumped this lady from 250 to 325 on the same terms just because she trusted me. I told my manager I wasn't going to do it so he told me $325 or your fired.I told my manager Go F.. yourself I am out of here and took the lady across the street to a Honda Dealer and she got her car for$225 for 60 months. I am Catholic and I have a Mother,wife and daughters .You understand why I rather lost my job than ripping off that lady
Very nice! Thanks for being one of the only honest people in the auto business.
you must have not cared for YOUR family to support them.....
@Kevin Counihan there are no victims just volunteers. No one pushed the lady to buy the car. Again person must have not cared for his family to support them
GOD BLESS YOU TO THE FUCKING END
@@briandeleon3379 This must be what you tell yourself to help you sleep at night when you rip of people you piece crap.
I leased my car in Honolulu 3 years ago. It's eerie how accurate this is... This is exactly how my conversation went, minus the trade in.
Love how you uncover the secrets, great video Marko!
I told this guy who was selling me the payment, and not the price. He was very Adamant. I told him that I’m not buying a payment. and that’s all they would discuss. So, i went and got my own financing from my bank, and boy did that make them mad! I bought that Jeep well below it’s value! Know the basics!!!
@Brian Rakestraw, Same! They DO get so mad! I didn’t realize that until today I bought a Chevy Malibu. Got pre-approved by a bank and all I needed from the dealer was a purchase order.
F&I manager guy tried to act super important but couldn’t. Because I had done his job😂😂😂 he treated me like a piece of shit but I didn’t care. I didn’t try to find friends. I found a good car. Lol
I live in the far north. The dealers automatically add paint sealant (minimum wage employee that waxes your car) for $350, scotchguard ($7.50) for $300, rustproofing (they do nothing; the galvanized body last longer than guarantee) for $1500 and free lifetime oil changes. The $2150 added to the sticker price is how they lower the price (even though they have maybe $15 into it), plus the "fake" repairs they find to be done with oil changes adds thousands. I know.....I used to work in one. Their favorite things to "add" during oil changes are transmission lines ($600-700$) and water pumps ($700-$1000). Almost every car that comes through ends up "needing" these within the first 3 years and they always find them during the "free" oil changes.
Midnight Synergzs
Midnight Synergy tygghgttyccgcvcc
These guys......these guys......
I worked at a Chevy dealership. This is verbatim what we did. Great explanation
Great insight, Marko.
I might add that, if possible, you should always be willing to walk out during negotiations, come back, and leave again. My wife and I walked out of 3 dealerships twice last time we bought her vehicle, and we got exactly what she wanted at the price we wanted. I think it helped telling a salesman at one dealership, "hold on, Joe Dollar is calling me back from Dallas Honda and I want to hear his counter-offer."
Yeah, maybe it's a bit rude, but whatever - they'd do the same thing.
Of course, I didn't HAVE TO HAVE the car right away, and I could afford to be patient and wait for what I thought was a fair deal. I played one against the other, and they did NOT want to lose us as customers.
Dealer told me they'd give $2K for my 14 year old Tacoma on a trade in . I advertised it on Craigslist instead and got $9K. Yeah I can see why used cars are more profitable for them.
They bother you a few months after you buy one
thats because that car would not be something sold on a lot and go to auction where theres the risk of not even getting 2k for it. when you have older trades its always better to sell on your own cause youll get more for it.
I got $2k for my truck with a very small leak in the head gasket. They can make all the profit they want I got a deal.
Roberto Smith wow good for you Roberto!
I traded in a car once and they started out wanting to give me 2,500 for my trade. I get them up to $5,000. They had the car on their used car lot a week later asking $9,995.