The Best Way To Buy A Used Car
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- Опубликовано: 26 авг 2024
- The Best Way To Buy A Used Car
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George Kamel is a personal finance expert and co-host of The Ramsey Show. Following Ramsey’s proven money plan, George went from negative net worth to a millionaire in under 10 years. His goal is to help people spend less, save more, and avoid money traps so they can live a life with more margin, options and freedom.
This channel will simplify complex money topics, bust money myths with actual facts, and debunk the stupid financial advice you're seeing in your social media feed. All with a healthy dose of pop culture, humor, and snark.
The only way to win with a car dealership is to never buy a car.
Agreed! I've walked away from several car salesmen just to have them call me back with a better offer.
I remember when a salesman tried to get me to pay a $500 doc fee. I left the sale, and the guy called me back the next day, saying he would drop the price $500. Some dealerships just have stupid rules that get in the way of good business.
You still paid the doc fee though, guaranteed. He just dropped the price of the car $500 for you to get the sale done.
I agree with everything, except not getting the extended warranty. I bought a gently used honda hr-v that still had factory warranty until 2026. But, for about $1000 or so, you can get Honda care ( Hondas extended warranty). That covers mechanical, electrical, some dents, windshield replacement,vehicle replacement, roadside assistance,ect, for 7 years /90,000. It also includes tire rotation and oil changes. For all thats included, its worth it.
How much did you pay for that warranty after interest?
I bought my used car private sale. 4500 dollars for an 09 civic hybrid, had to recharge the ac and get new tires, but other than that, I’d say was a win
I went to a car salesman with 800 credit and fully saved up for the car. The salesman got so mad he asked me why I “like to live life dangerously” because I wouldn’t buy an extended warranty. That was right after he told me he had 3 leased cars through his employer!
Salespeople have the worst consumer habits bc they buy into the company’s bs. Then get mad at you for not jumping off the cliff with em! lol part of why I won’t go back
When I bought my Tacoma in 2020, after I test drove it I said straight up I’ll offer x amount, in cash, with zero fluff on top. No dealer fees, nothing. The lady got on the phone with her boss and accepted my offer in about 10 seconds 😆 numbers are numbers until you see cold hard cash on the table
no you didn’t 😂
@@johnlocke3481 yes. Yes I did 😆 have you never negotiated for a vehicle before?
@@Njs32Dealers aren't interested in cash deals, they lose too much money on F&I. Also, couple fees are legitimate and no way around them ending up on the bill of sale.
So car dealerships, because of price information on the internet, are no longer making money on selling cars. They are now in the business of loan brokering and "insurance" like gap and extended warranty. This is where they make their money. If you can pay cash, do it! Just keep that part to yourself until you have agreed on an out the door price from the sales person. They are trained to ask, "how are you paying for this?" Or, "what's your monthly budget?" Tell them you'd be happy to discuss that with the finance manager once you've agreed upon a price
They still make money , on the sale of the car. The MSRP, is straight bullshit. The price, they used to negotiate is now just given to the managers from the manufacturers; $200,000 a month. The managers just keeps it for themselves, rather than negotiate the price. New car dealers.
Please do not pay a doc fee over $100, there are some great videos on RUclips about how to negotiate that fee.
depends, if I buy a s-class in worth of 60k I`ll probably get a professional to take a look
@@Tr4yzz LoL, Endless money pit
Never PAY a doc fee! WALK
yes but what if they have $2,996 theft fee and $1996 dealership fees and it’s the lowest prices in the state ? they have no problem reducing it but they’re not going to shave thousands off. So what would be a fair and reasonable number they can make?
@@DreamsNGreatness I should clarify my above comment. When I said don't pay a doc fee, I should have mentioned that you should be negotiating the out the door price instead of the purchase price. As long as the out the door price is good, I don't care how they shuffle the numbers around underneath that.
Check out every engine and transmission option for problems, every problem database per model year. Good example: Ford Focus 2011->, 100% of a certain automatic transmissions blew up due to engineering mistakes, but the manual transmissions are very reliable and the engines are great as well. On paper this car looks average reliability, but little do you know you might be buying a timebomb if you go for the automatic. Always check every variable. To avoid big repairs, dont buy a car, buy a powertrain, and see what car is built on it. If you are going to buy a piece of engineering, you need to pay attention to the engineering. Simple as that.
Buy private party instead. You can still hire a mechanic to do an inspection, test drive it, and your local tag office will handle the paperwork. Just be sure you check on what the private party price should be, so you don't overpay. You are going to overpay at the dealership. If it's your only option, I'd comparison shop by getting quotes on a low mileage CPO with lots of good consumer reviews.
This is great advice, George. Just bought a used car last week. I researched the car heavy! Made an appointment with the dealer and the sticker price was $5k over the internet price I found. Screenshotted it. Gave it to the sales rep and got the cashier’s check for the final cost and bam, walked out with an awesome 3 year old low mileage car $5k below the price. I was elated. 😂
Did you find it on the Internet for that car dealership or somewhere else in the area or somewhere else in the country?
@@paigeforwellness just used carfax to look up the records and mileage of the car and made the calls to the dealers.
@@paigeforwellness found it on the internet near where I lived. They had that car awhile so they were glad I took it but not completely glad since I got that internet price. 😄 They had all its carfax history online as well.
Had a dealership refuse to sell me a car if I paid in cash. Said their cars were priced to low to not get a cut of the financing.
Finance it and pay it all off the next month
@@shahzebnasir4692I did that for a ‘09 mini Cooper S. I financed it, sold my old car for the same I paid and paid the car off on the first payment. The dealership was pissed 😅
@shahzebnasir4692 1 that was a lie. No dealership sells that cheap. 2 why pay even a month's interest if you have cash?
@@shahzebnasir4692 theyll just give you a bad apr
@@shahzebnasir4692That’s what I did in 2019. Car price was $18,000. I had an 800 rating and I got the special finance deal that knocked $1500 off. Then I got $5000 off for my POS trade. I put $6000 down and financed $5500. I paid it off in a month. $7.50 in interest
Just save up to buy it! Yeah sure, no problem. My son has no way to get to and from college because his car just died but lemme wait and save up $30,000 to get a used freaking car real quick.
Yeah i hate this advice
May have to go private sale in that case, get something that is reliable and have a pre-purchase inspection done to make sure there's nothing dire that needs to be done after buying said vehicle. I had a nearly 10 year old car in college that got me back and forth when I needed it to.
Get him a used car why pay a $30K for a new
@@Minakann we bought him a used car and it was still $16,000. He ended up with 15% interest, paid on it for 5 months, then got declined and his credit took a 75 point hit when he tried to refinance. $560 payments for 75 months!
@@Bootsamongus there are much more inexpensive cars out there.
The absolute BEST experience I’ve ever had buying a car from a “dealer” is when I bought a repo car from my credit union. It was SOOO easy to negotiate and they only took tag and taxes fees. I had the cash in my account so the only weird thing was I had to withdraw a cashiers check from my bank, made out to my bank. 😂 it’s been a great car I’ve had it for 6 years
DO NOT pay doc fees. Refuse and if they hold firm, walk out. In the pass 20 years, Ive only had to walk out of 2 dealerships over doc fees. Agree to pay only MSRP, taxes and licensing. I dont care if it does cost money to spend more time shopping, Im not giving free money to millionares. Are you? I've had people and dealerships tell me how wrong I am about this, but in 20 years, I've never paid doc fees, market adjustments or any type of dealer add on.
It's crazy to think I purchased a car 11 years ago that had a $79 doc fee. Standard today is like $299 if I'm not mistaken... up to around $1000. Should've invested in doc fees the last 11 years lol.
It would be helpful if you actually listed the fees, saying “ a bunch of other stuff” doesn’t really tell us what to expect.
So happy to see smart buyers again.....
It's OK to finance, just make sure it is simple interest and pay it off first month.
Is the only drawback not building credit history? I'm thinking of doing that..
Works great until the used car market dries up like it did recently and everyone is paying 5 k over asking price. Then you just get left behind.
Only for a few models. If you are not fussy its a non-issue
Do not lease. Keep a budget always
every dealer around me (NJ) charges an additional $2500 - $4500 - for used cars inspection/rehab fees
The most empowering feeling in the world is breaking off a negotiation with a car dealer, walking out and driving away. I will not be played with like that. Instead I’ve used the car buying services offered by my credit union and by Costco and saved thousands
Also check all the body seams to make sure it was not in an accident. I fought a S10 zr2 once and everything looked good and the carfax was good but I was sitting in the truck one day and reached up by the top of the door and realized it did not line up. Several months later I had to take the dash apart for a vacuum leak and that’s when I saw all the broken glass in it. I wish I would have seen that before I bought the truck.
Never buy car at dealership. They're always more expensive. I know for immigrants, we always buy second hand cars. You can easily hire someone to check the car before buying it with a cheap fee compare to dealership. In most case, we do a ton of research and know about cars anyway.
Stay away from Stealerships!
Don't buy used,
Buy new and keep it for 10 to 15yrs.
This way you'll get your money back plus more
I’ve bought used cars all my life for myself & my kids. . I’ve never used a dealership yet. If you have a chance to buy from another person you can save the most money. I have been successful on private deals bringing cars to my mechanic before purchase for the $150 inspection. The most important thing to burn into your mind is LOW Miles & LOW number of previous owners- no more than 2 if you’re buying over 10k car. You want the car to come with lots of servicing receipts/records too.
Perfect advice George, well stated!
It means sense to buy a car in cash cause the day I save 20k it would break my spirit to spend 15k on a car. Ruined.
Always get it inspected by someone not related to the seller at all. Even if the seller is a mechanic. The more eyes you have look at something the better.
WHY would I pay “tax, title, and registration” fees to a DEALER? Those fees are between me and the state DMV. If I buy a car from a private party I don’t give THEM the money to pay those fees, and I wouldn’t, because the way to know those fees are paid and the title is legally transferred is to GO TO THE DMV YOURSELF. So, paying the dealer is a big NO in my book!
The way they introduce those warranties is so sleazy. You’ve already agreed on the out the door price and they want to spring it on you and bully you into it by focusing on monthly payment instead of actual cost. When we bought our van they tried to sell us a warranty for the electronics by saying it would avoid a $4000 repair. The warranty cost almost $3000 lol I had trouble explaining why I was saying no because I was so shocked that he was actually trying to sell it with a straight face.
What????
Make cash offer after inspection, if they counter then offer $100 less than original offer, if they balk walk away.
Bought all my cars that way, works every time
Spend as little time in the Finance and Insurance (F and I ) room as possible. Also, the extended warranty they charge 3,000 for costs them $1500. They make 50% profit.
Keep in mind that negotiating out the door will come across as you wanting to play games. A lot of customers don't understand how taxes work so they make offers of out the door that have no logic at all. I would say I am willing to pay "X" for the vehicle because that is what it is worth buying from a dealership which should put us at "X" out the door after everything.
What?
@@igorfed993 Make sure you focus on the actual price of the car and why it is a fair price. Tax/fees are set by the state. If you are unwilling to talk about the price of the car it can come across to the dealer as somebody who has no clue what they are talking about. Ultimately you will end out OTD, but the price of the car is what dealers can negotiate on.
@RyeMoes having been around the automotive industry my whole life your comment makes no sense. dealership can figure taxes and all out the door price. Taxes are easy to figure yourself so you know where to be before. Vehicle taxes are usually done differently than typical sales tax.
@@gofigure84 sure
Not so easy these days. Most dealerships won't waste their time with you if they can't rip you off.
How do you get the car to a mechanic for inspection before buying? Will a used car dealership let you do that before purchasing?
Nice if you are a guy…as a woman, it is not so clear cut or easy. So much effort to find a car and then their crazy song and dance.
I’m actually looking now and a lot of places now have a little blurb on the bottom of their listings that the listed price plus x% will be added for cash purchases. They’re really out here trying to close the loopholes for paying in cash! I’m guessing cause they lose the in house financing fees 🤷🏻♀️
Or buy from a personal sale
I'm wanting to buy this 96 yukon from a used dealership. The vehicle sells at best 2500, they want 5k for it. The tires are bad, oxidation on paint, the ac dosent work, but I want it. But I will never pay anything over 2k for it, and to make it even more fun, he seller accidentally told me they got it for a credit trade for 500 dollars.
Lehts goooooo GK!!
Why not purchase any warranties? What’s the best alternative to that? I bought a car & made a huge mistake so I returned it. Now I’m trying to do as much research as possible before buying a new one
What is a reasonable amount to spend on a car? Car price to income ratio
Their rule of thumb is to not own a vehicle that is more than half of your annual income. So if you bring in $50k a year for example, it should be less than $25k.
No one ever talks about safety when buying a used car.
"Doc fees" are bogus. It's a made up fee they charge for processing paperwork. IF the dealer is polite, not pushy, and meets your asking price pay $75 as a tip (otherwise known as a "doc fee"). The only real charges are the cost of the vehicle, taxes, title, plate, registration. That's it.😉
This may sound like a stupid question but I’ve never bought a car before my previous car was a hand me down if you walked in with X amount of cash (PHYSICAL DOLLAR BILLS) as long as it not $100,000 will dealerships accept your money
NH .... no sales tax on cars
Tax if you register it in another state
Thanks
I feel like any number George throws out on any given one of his videos, those of us living in California need to double or triple it. I’d love to see the numbers he claims in his video, it would be like going back to my childhood to buy stuff, like 99 cent Whoppers and 39 cent cheeseburgers at McDonald’s.
I’ve been in automotive for 11 years. Worked for big brands like GM, Toyota, VW and Audi…. You think Ramsey needs an automotive personality…….. ???
Doc fees shouldnt be more than $175. If they are, leave.
Never pay for a doc fee. I have never paid their doc fee ever.
How can you find a car inspector? The dealership would let an outsider inspect their cars? I’ve never heard of that before.
It’s a normal request, and most allow you to do a PPI with permission. They let you do it or you walk away. Simple. If they don’t want it done, that means they’re hiding something.
@@GeorgeKamel Thank you
Most auto repair facilities will do it, but I’d stick with corporate chains like Meineke, Firestone, ETD since some local mechanics are usually contracted by dealers and wholesalers to launder vehicles for them.
Also make sure they take plenty of photos, including thermal images which will show any fluid leaks and give you a detailed report with OBD codes.
@@15KHPCLUB Thank you ❤️
How do you do this with a car that is higher in demand. We are looking for a 2017-2022 Toyota Highlander with under 100k miles on it and are not finding that many
Out-of-the-door price is usually the window price + tax or excluding tax? I bought 3 cars in my life and haven’t learn the real lesson out of it because I don’t really know what price is reasonable. 😅 About to buy another.
I leaned some years ago to never buy a new car. Why would you?
See how long the average joe can save up over 30k for a new car
DON’T buy a new car. Not unless you’re going to drive it until it dies. Otherwise, you’re flushing money down the toilet.
What about extended warranty they are 3000 😅
Why do we need dealers again?
Hey! Great video. We’re going to add a $700 paint protection plan to the video. Everyone pays it.
How & where do you get a pre purchase inspection ? 🧐 please lmk
Or, just don't buy from a dealership.
Being a car dealer is not a legitimate career. Dont treat them with respect
You’re best to buy a used car from a private party who has owned it for at least a year. You’ll get a better price and understand the car’s history better.
You aren’t wrong buying from a private seller. The issue I always ran into was people wouldn’t be honest about any issues the car did have. Like the one you who cleared the engine fault code and refused to let me test drive it unless I was willing to pay half the price first. I said no, and got him to allow a test drive. I didn’t make it a city block before the engine light came on. And I drove it back to the meeting spot and told him I was not interested. Even when he tried to lower the price from $6,000 to $1,500. It had some issues and I could tell it wasn’t worth the headache.
Just save up and buy a used car that’s around 2-3 years old.
My transmission needs to be replaced. Unfortunately I only have enough money for a rickshaw to get back and forth
No dealership near me will negotiate a price under 200 of asking it’s miserable right now.
Where would the best place to purchase a preowned 4Runner TRD off road premium? Thank you.
Carsforless
Carsforsell
Can u use a credit card to buy a car?
You can’t buy a decent car for 10,000 your gonna have to save up 15,000 to even buy a descent used car it’s sad bro
So I need a 150$ fee to test drive the car?
Is this a joke?
Or buy a used Tesla with 127,000 miles on it which George did lol for $26,000 dollars lol
what about paying in credit card for points and then paid the credit card before the close the statement?
The doc fee is highway robbery
Isn't the best way to buy a used car from an individual?
It's cheaper, but you need sharper due diligence because there's a lot of garbage out there haha
I paid for a car with money orders before lol
Woman 😀 ☕
🚬🤵♂️
Screw the dealers, buy a Tesla
Most people can’t afford a Tesla or want one for that matter. There are way better options than just Tesla. The build quality isn’t there to make it worth the price that they are asking.
Do you simply......not care at all that the vast majority of people cannot afford a Tesla?
Do you recommend buying it online like carvana?
You are paying a price premium to buy from Carvana as a brand with no discernable increase in vehicle quality. Same with CarMax. The only reason to buy from them is if they are the only ones with what you want.
Terrible way to do it cant do it on a debit card in most states.