HOW MUCH DO USED CAR DEALERS PAY for CARS? FIGURE IT OUT! 2022-2023 The Homework Guy Kevin Hunter
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- Опубликовано: 26 май 2024
- CAR BUYERS CAN USE 3 STRATEGIES TO GET WHOLESALE COST of Used Cars. Interpreting KBB, Use Dealers to get Cost Information, and Get Your Banker to give you ACV (Actual Cash Value).
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With Titles like 11 Fake Fees, to Don't Say I'm Paying Cash at Car dealerships, and Car Shortage Crisis, and Car Dealer Says Bring the Car Back!... The Homework Guy Team publishes videos to help Car Buyers. Then we added Cash Buyer Negotiations, and Held Hostage at a Car Dealership, No Haggle One Price Car Dealerships, How Much do Used Car Dealers Pay for Cars?, 10 Things You Should Not Say to Car dealerships, and the Costco Auto Program. We hit all the topics, and we represent Car Buyers, a goal that’s often in direct conflict with Car Dealer goals.
A CAR DEALER WANTS TO:
1. SELL every car for the Highest Possible Price.
2. CONVINCE Car Buyers to use Dealer affiliated Lenders / Banks.
3. LOAD every Car Deal full of Fees and Finance Products.
4. OFFER Lowball numbers on every Trade Vehicle.
THE HOMEWORK GUY TEAM (THG) HELPS CAR BUYERS TO:
1. BUY a Car from Dealers or Private Party Sellers at the Lowest Price.
2. PAY Cash or Finance with their own Bank or Credit Union.
3. DECLINE Dealer Fees and Finance Products.
4. TRADE / SELL their current vehicle for the Best Value.
For more than 40 years, dealerships have EARNED their lowly reputation by being the masters of predatory selling. Dealers stalk victims relentlessly, often ruthlessly treating the most vulnerable car buyers (like seniors, for example) with little or no conscience. Car Dealers and their Finance Officers have no problem creating financial devastation for their customers with over bloated car loans, and quite often do. We point out the traps and the flaws of the process, and help car buyers get by all the nonsense without being ripped off. We promote fairness, honesty, and transparency, and we’d love to see a few dealers join our mission!
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8. Buying a Car out of state.
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10. What to do if Scammed.
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I’m 5 months late seeing this one. However this is the BEST one. This stuff is pure gold!!
Keep in mind the dealership has
Rent,payroll,utilities maintenance (car washing oil changes tires smog etc)business licenses renewal
@@mattb4461 well why would stick a customer for twice that much?
Good luck using this as a tool lmao
I'm in the market for buying a used car even as we speak. The information that you have provided is extremely helpful.
The vehicle that I am interested in .the. dealer want $37,000.... with the information that you have provided I realize that the vehicle is worth $27,832.
As you have suggested I am going to put down 20% Bogen from 37000 to $30,000 if not successful I will walk away. You have build my confidence as well as my strength in buying a new vehicle. Thank you so much and God bless you may continue the work.
Hey Johnny, how did it go for you? I’m in basically the same boat right now, started looking at a car listed at $37k with KBB low value of $28k. Would like to know if these strategies worked for you
@@MrBeaverOni in all honesty I have to tell you .itp work I just bought a 2018 Chevrolet Camaro. The asking price from the dealer was $24,000 dollars. To make a long story short I paid 20,000 dollars. I explained to the dealer that I was very aware. That the number one car on the market today or S.U.V ... combined with the coronavirus sales were in the toilet.
He wanted to disagree, but we both knew the truth. And the car that I was buying was a sports car..
Excellent info simply add $1850 to the low trade and you got your purchase price.
I'm always wondering is the purchase price before all TTL or is that they bottom line/walk out the door price?
Man, you know the dealers are sweating every time he posts a video. I love it.
I know, right? When the come on the channel and give us a thumbs down, we consider it a badge of honor!
This is awesome. By the time I buy in a month or so I’ll be educated enough to not get bent over by the finance people.
@@anaphylaxis2548 I don't want to scare you away from buying. However, you may want to check out a few of THG's more recent videos. The car market is very much a seller's market right now, due to computer chip shortages.
Per one of Kevin's more recent videos a few things to look for. Are dealer lots full or less than full. The further away from full, the more difficult negotiating will be.
@@horseshoe_nc Thank you. Yes, I have watched tons of their videos. I won’t buy unless and until the deal is good. I’d like to buy soon, but I am patient.
@@anaphylaxis2548 you are welcome. I just wanted to make sure you knew the current market conditions, looks like you do. Just didn't want to get screwed. Sounds like you are very well prepared.
I am not in the car business, but I do own my own business. The $1750 profit margin you explain in #1 is a gross profit margin, before expenses. The sales rep prob gets the $500, so that leaves the dealer with $1250. Hardly any retailer can make a net profit on a $10,000 item unless they flip it right away. If you've been to a large inventory car dealer, they may have a 7-figure inventory - financed. Some of it will move right away, but much of it will have to be cleared out at or below cost. $1250 gross profit on a $10,000 item is insufficient to stay in business. Grocery stores gross more than that, at a much higher turnover. My take is that dealers who buy/trade these in from customers pay way less than your example if they buying outright - they have to. On trade-ins, they make the big gross on the sale price, and continue the process. Plus the doc fees and other gotchas. Either way, they can't stay in business on your analogy.
This may be one of the Top 3 videos from THG/Kevin and Crew. Thank you!
I'm sure all the work done on the vehicles like new tires, brakes, paint work, CPO type of things are all free! Yes, we make $3,000 to $1.5 million in profit on every deal!
There is more of a markup on those cheap hoodies your selling than there is on the average used car sale!
And FYI, I have been doing this for a long time and have yet used Kelley Blue Book to book out a car or use it to submit to a bank!
Bought a car with 6k miles on odometer. Discovered it might have sustained water damage (found sandy debris in back seat storage flap). Paid through the nose in dealer added costs. Didn't do my homework. A few years later, the mrs. and I bought a new car. Did better but still didn't have your wealth of info. Will be in the market for used wheels soon. Glad you are on YT, helping to arm and educate us saps from the hyenas of the car business. Keep it up.
Went to a dealer looking for a new car yesterday. Never went inside even though they asked several times. 😆 Test drove the vehicle
then heard all of their BS. 😆 Told them we will sleep on it. Was walking away then more BS. See you later. So good to have leverage!!! Thanks guys!
I find myself saving pretty much every video into a playlist for later viewing. YOU ROCK!
They offered $2800 for my 2004 Lexus GX470 as a trade in, I sold the car for almost $11k
Same here but dealer offered me $4,500. Sold it for $10,500.
@@ToddTinley That's interesting. I don't know your mileage or color so I just used 150,000/black in the KBB calc and it listed $4304 on the low end for trade in (good condition). Using Kevin's algorithm for determining how much a dealer paid for a used car, the $4500 almost falls right in his range of $3804-$4404.
The 470s go for around 10k-12k depending on records (timing belt/water pump) and milage. The 460s can go for 15k MMR these days
They are the latest Luxo - offroad rigs and command a premium.
I have a 1990 Mazda 323 hatchback with 251K miles on it. The Ford dealership offered me $10 for it. Is that a good offer?
I didn’t even bother to sell my 2009 Honda Civic LX-S in great condition to the dealer with 213,000 miles because I already knew what KBB projected the price was, sold it to a friend of mine for 3k, the dealer wouldn’t have offered me 1k. Bought a brand new Ram last summer at almost 18k off MSRP.
I have made my oldest son and my grand son big fans of yours. They have been helped greatly by all the information you share. They are currently in the market for my grand son a vehicle and it has kept them from getting burned several times. Thank you so much.
I made a worksheet based on this excellent model. I'm processing thru cars now to find my used car deal. Considering taxes, the negotiated price is not the total for taxes, the Sales tax is calculated based on Total price of the car, with fees or extras but not the trade-in value or any discounts. The sales price is the final price you agree to pay for the car. So by eliminating fees, good negotiations pays you back again when it comes time to apply your state's tax rate! You guys are awesome, THANK YOU for doing homework and teaching me how to do mine!
THANK YOU @THG, man I'm getting ready to get a new used car and I needed to see this! One day I'll send you the contract to check out!
Awesome video! Your KBB calc was right on target with the deal I made for the truck I bought this week.
Excellent video! Thanks for letting us all in on how dealers are often making more money on your trade in and the resale of your trade then the new car they sell you!!
Thank you so much! I like how you added in the past about not discussing personal finances unless they are authorized to sign off on the car, in private room, etc. Please continue and include info like that which provides honest replies that are not lying to the dealership, but having them go through the buyers process..not the dealers (four square) process.
Thanks Kevin, I am just starting out on my vehicle purchase journey. I made my own spreadsheet where the only variables I have to enter is the Sticker Price and the Low Kelly Blue Book (as shown in these examples.) I realize that every car dealer is going to have different numbers relative to their PAC Fee and Dealer Profit. I know those fees are arbitrary so I accounted for that by making those fees actual to a specific transaction and only have to enter those numbers in a calculation box and the math is done automatically. We have a local Toyota Dealer (Greenway) where they advertise No Doc Fee, No Commissioned Sales Staff, just add the tax. I realize that it really doesn't make a difference whether they are commissioned or not.
Sure wished I would have came across you’re very valuable info before I bought my Lemmon of a truck!!! - iam learning a lot of good strategic moves from y’all thank you so much 😊
I find your videos fascinating and your advice helpful. I'm in the UK and it's interesting to see how the car market in the US works. I thought car dealers here were dodgy, but some of yours appear to have it down to a fine art. One thing I do notice is how high your used car prices are and also how relatively few people seem to buy and sell privately. Over here, many are obsessed with having a new car, so good used ones can be had quite cheaply, because the market is flooded with them. It seems you're more sensible in the 'States and keep older cars on the road for longer. I've always driven older used cars that I buy privately (and always will - if you know what you're doing, you can save a fortune ), so I probably won't be visiting a dealer any time soon, but I still find useful information in your videos. All the best and keep up the good work.
Yes, the reason for the high price on used cars in the US is for two events. The most recent, the Covid pandemic and shortages of materials and The second is in 2009, the government program "Cash for clunkers" where you trade in you used car for a new fuel efficient car, and they destroy the used car even if it only have 5k miles on the odometer. That made a wreck on the used car market.
Thank you Kevin, you are doing all of us car buyers a great service!
I used to love how, as a new salesman, the managers wouldn't tell me about any of this stuff. (get them to sign! That's all they cared about of course) It was just a grey area, the great abyss. Crazy.
Dealers didn't want to tell you because many were screwing over their salespeople as well by playing with the numbers.
Kevin is the best. The problem is if you go to dealerships and ask questions like these they almost immediately stop talking to you. The last thing they seem to want is a savvy car buyer. That’s the problem I am having. It seems like they would rather wait for a stupid buyer in hopes they get more then sell to someone who is unwilling to get scammed and there must be plenty of people out there like that.
Wow! So helpful! When I’m ready to buy a car, I will come back here for a refresher!
Great information on using KBB and acquiring actual price dealerships pay for cars. The two points at the end were great to learn! Thanks, I saved the video to review again.
Kevin, this episode is so good I watched it a second time just so everything would soak in to my memory, but I did take notes too. What grabbed my eyeballs was you included the 2019 Cruze, a car that is close to the top of my list to buy in the next 6 months.
And I really value how this information will get me better connected with my bank's loan department, not just for fairprice information for me, but also to get an easy and fast ore qualification.
The title on your video best RUclips Channel is on target and I have worked as a video producer for a few channels over the years.
10 stars on a scale of 5 for this episode.
So glad I found this particular video! I am just about to return my lease and buy a used car.perfect timing
I used CarGurus as a negotiating tool on my last purchase. It got them to take 2k off the price initially. I whittled then down another $1000, and sat for day. I at least got them to the point where they wouldn’t negotiate any further. I also ran numbers on a very close comp from another dealer. I took the numbers sheet from the first dealership to the second dealer, using that as a tool. I knew I was at least getting a decent deal when the second dealer told me straight out that there was no way they could get close to the first deal.
Thank you for this info looking to find a decent deal on a used diesel for the farm this will help tremendously!!
Thank you for all you do to provide this information. Truly appreciated
The Ford dealership in North Las Vegas offers "Auction Value" for trade ins, which is about 8-12% less than KBB trade-in value. They even told me that they won't honor KBB (b/c it's "inflated"), and that they were only open to better trade-in if I agreed to buy a vehicle from them at the time of trade. We argued, neither of us were were willing to compromise and I left without giving them any business. Ended up selling privately to a nice lady where we both got a great deal. Look for the fine print my friends!
At least they were honest with you about that.
Scott Z it was hidden in the fine print-literally. It was about font size 4 and there was a tiny asterisk next to the quote. I brought printouts of KBB, NADA, and Edmunds estimates with me and when their offer was about $5K below all of my lowest trade-in values, the salesman had no choice but to point it out to me.
Kevin,
Thanks for all your videos, I was able to use the information to actually buy a used car!! Your videos gave me confidence in negotiating for the car, and to understand the process for researching and finding a reputable car dealership that doesn't inflate their prices too much. Thanks a bunch!! You saved me quite a bit of money!
This was the best class I’ve had in session.
#thehomeworkguy I am heading to dealership number 2 this weekend. Used your strategies last weekend for a used car purchase and knew I needed to buy somewhere else. Thanks, will keep you updated when I find a dealership that makes a fair deal.
#thehomeworkguy Just added this to my favorites so I can continually use it as a refresher. This video lays out 3 great strategies on what dealers are paying for used cars. Must watch if you are buying a car. Good work Kevin.
Can I give you a hug oh, you and everyone on your staff. Great stuff do my research right now.
This is so helpful. I've had to come up with vehicle values for the DHHS and we are clueless. We know about what we paid for them, but that was years ago and really does not reflect what they are worth now.
That's funny I was thinking of that yesterday, this cool thanks
Great value in your video. Thank you so much.
Kevin #Thehomeworkguy Great Stuff you Guys! Very much appreciated. The right info. for the current car market climate.
Kevin, thank you very much for the knowledge you provide. This is the second time I am purchasing a car using your suggestions, and it helped me to get a good deal.
Thank you. Thank you. Great info.
Consider yourself lucky if a dealership offers you anywhere near the low-side trade in value. They will usually low-ball you on the trade in and then work up only if they have to do it.
If they easily offer anywhere near real trade in value, you are probably paying too much for the new vehicle to start with.
Very true, also depends on how long it's been on the lot. U can actually regularly get a sports car for the low end if it's been on the lot for a couple months or longer.
thank you Kevin, this is very informative for someone like me looking to buy a used car.
Mr. Hunter, your video was an excellent piece of advice. Thank you Sir, for your hard work in producing this information in helping us understand how dealerships function.
Oscar
Love your content very informative. Keep up the good work in helping customers learn about car buying.
I work at a Manheim auction. Manheim is owned by Cox Enterprises out of Atlanta. Kelly Blue Book is also owned by Cox, as is AutoTrader. Conflict of interest? Naaaaah ! !
Well, autotrader does have kbb value of every vehicle listed, so that makes sense :). Thanks for the insider tip though.
@ Thanks Kevin Great info!!
Yet another great video! So much good information on this channel!
to me, this was your most informative video ever. and considering what you do, thats saying a lot. :)
Great stuff thanks for the information !!
Although I'm not in the market to buy a car currently, I appreciate the information you put in your videos. I imagine it helps a lot of people. It may help me someday.
#TheHomeworkGuy looking at new cars this weekend after watching a couple months worth of your videos. great stuff and now i got an arsenal of info to take with me :) took a bath on a my first car as i needed it right then for work and wasn't paying attention or just didn't know better, i definitely know now thanks to you :) keep it up and thanks :)
Just awesome information, thank you Kevin!
I went ahead and created a Google Sheet to do the calculation. Very similar to the read-out in Kevin's example tables. This allows me to look at several vehicles at one time and see what the "Fat" is.
I am interested in a vehicle - and once again you have made me smarter. thanks.
Good information!! Thank you.
I’m trying this! And I don’t even need a used car! 👍
These are great tips! Thanks!
I used the KBB to get a fair price when buying my Jeep Grand Cherokee Overland 2014. I even got it a little below the value calculated in the video. There were plenty of cars on the market $4K-5K above the fair price. The great thing is I didn't feel I was getting ripped off, and the negotiations at the dealer went well. I even got the windshield replaced due to a chip in the glass.
If buyers watch your videos they will end up saving at least $3K to $5K on their purchases whether buying new or used. Thanks for your great homework!
I just wish I would have had this information several years ago. I now know I paid way too much for my Toyota pickup. But I will be in better shape next time. Thank You Kevin.
Kevin Thank you so very much for this most value video!
I sent a little love your way to your foundation.
Kind regards,
Nick”Old School wine guy”
What a good information, thank you for the tips , nicely done..
Thanks Kevin! Great info!
It's important to consider maintenance history, accident report and cosmetic imperfection. No two cars of the same year/ milage are the same
Hey Kevin, as always another great video.
I have been taking an average of the dealer trade in price of the 6 used car buying resourses, (kbb, edmunds, carfax, NADA, car gurus and iSee Cars). I then applying your formula for priceing ranges.
Jim>.........
I love this info, I have been using this formula to go online and look at numerous car lots around my area to see which ones are asking closer to fair prices and which lots are hogs, It helps me cross lots off my list before I ever have to step foot on their property, If they are severe hogs, I know it is probably not worth my time to even visit them. The lots I find listing cars for closer to fair profit prices are the ones I will be hitting.
Thank you very helpful tips
Thanks for that information extremely helpful
Very informative and helpful. Thanks
All great info...Thankyou much
another excellent video.!!! thanks again!!!
1997 F 150 and the dealer said he would give me 2000 on a new truck . Runs great and I was insulted by the offer and walked out . I'm still driving it and won't give it up till it dies ! 150,000 mile,s and Mobil 1 since 20,000 miles . I will not be screwed !
GOD BLESS YOU!, YOUR CHANNEL IS REALLY REALLY REALLY GREAT
VERY good info Kevin. Thanks a LOT.
Awesome info, thanks for sharing
#thehomeworkguy great video thank you for taking the time to talk about a subject kept under the rug. I was wondering if I can apply some of these strategies on purchasing a #PWC or jet ski from a dealership? Anything helps, ty!
I haven't bought a car at a dealer since 75. Almost all were at auctions, many at dealer only. I'd drive by a buy here pay here lot and see a price on a car and then think that isn't a bad price to pay. Then I'd notice that was for the down payment. I don't think I could ever buy a car off a lot. Last car I bought was a 2014 Explorer that was exactly 2 years from date of manufacture for $15,900. That doesn't sound so good now, but that was an amazing deal in 2016. Wow, I think it is time to go back to the auction. That car is getting old.
The bank thing is real. Back when I went to dealers, I was looking at a used subaru. I called my bank and they gave me a price they would finance. The dealer told me what he would take and I said my bank said they would only finance X number of dollars. He cringed. He literally cringed. I didn't end up buying the car but you could see he knew that I knew exactly what it was worth.
@@Mach141 As an Econ major, I sort of relate to your point - but it's not exactly expressed correctly. The axiom is "The Market sets the correct Price"...but equating Price with Worth is a false equivalency. Price generally relates to Value anecdotally, while Worth generally relates to Value universally. If I carry around a $5 bill, I can "declare" that its value is $5000, and legitimately hold to that view...so long as I constrain the Universe within which that $5 bill exists to my own wallet. Once, however, I venture out to extend the Universe of that $5 bill to encompass engagements with others, to offer the $5 bill in a transaction to exchange it for something universally valued at even $5.01...I may (will) encounter) some difficulty negotiating that exchange. It is "true" that it is possible for an individual to "pay" more (or less) for something than that something is "worth."
Thank you Mr. Hunter. for all the infomation that you provide. I have been duped in my past and am still paying for it. But needless to say i will be in the market soon for another car and this time... I will not be duped again. Thank You for all your helpful insight...
I thank you and my family Thanks you....
Charlie... :)
Very informative video , I took notes so I don’t forget . I’m getting ready to buy my dream retirement vehicle 🤗
This is mind boggling....thank you sooooo much...you are awesome
This video came right on time, I’m a college student with little money wanting to purchase her first car but felt really overwhelmed by the prices. Thank you so much ☺️
Absolutely great information!
Great video! Thank you
(raising hands to the heavens) Thank you Kevin! This info is gold. 😊 I was one step from cussing out these thieves in South Florida.
Which dealer? Asking because I’m about to look at a truck in West palm beach.
@@AwesomeProjects20 Pretty much we car dealership man. Just be prepared to walk out if they give you and BS
Wholesale numbers are driven by the wholesale market and largely has NOTHING to do with KBB. Used car prices are volatile and vary depending on supply and demand. Most dealers pay thousands of dollars each month to make sure that they are accurate on appraisals and purchases. It does no good for a dealer to low ball you on a trade when the used car supply is so low, as it currently is. There is also no mention of reconditioning costs associated with reselling a used car which has a national average of over $1000 per unit. If you want to know what your trade is really worth then take it to a couple of dealerships and tell them you just want to sell your car. That way the price of a purchase car has no bearing on what they offer you. That is the only way to determine ACV (ACTUAL CASH VALUE). banks have no idea what a car costs, they only know what books tell them because that is how they determine what they will loan.
Finance values do play a part in determining value but a small part.
Wonderful info thank you so much
I wish there was a way to have a list of reputable dealers. I hate that we have to jump through all these hoops to not get scammed. I understand dealers have to make a profit, but fair is fair.
Nice! Using this method I just discovered I am almost 20k ahead on my truck! Awesome!
Super helpful. Thanks!
This is timely information for me as I just crashed my car. (His fault totally, he was driving under a suspended license.) I now want to buy a pickup and as I write this, January 2021, there are no private trucks for sale. So I am forced to bargain with a dealer. Thanks Kevin, this is great.
It's now October 2021. Prices are still high. Lot's of trucks that are old, with high miles, at crazy prices.
After months of window shopping i knew what i wanted .This helped me counter offer for a vehicle effectively.( i even made a automated spreadsheet that did the math for me on the fly)
Long short ,I ended paying Almost $1000 less than asking armed with this knowledge.
Now i know that the dealer probably stole the vehicle at auction but with the formula above i was able to negotiate a lower price while getting issues fixed before the closing of the deal.
Sooo....any chance of a link to that spreadsheet?
I'm in the process of writing everything by hand. Any way of sharing the spreadsheet?
Very good information, thanks to Kevin Hunter
THANKS FOR THE TIP
*i use the KBB wholesale or trade in value as my goal to dicker with them . The MOST i ever go is $1,000 over that lowest price i will NOT pay any more. i use the Richard Rawlings method of negotiating. i did this most recently buying my 2006 Dodge 2500 mega cab turbo Diesel. They were asking $14,995 at that time that was low retail on that truck. i drove the vehicle then came back and toss the keys on the salesman's desk as if it was ok but not blowing my skirt up or anything. i really did expect more but it was a good running solid truck. and that was really all i was after. a Diesel to tow with nothing more. when i returned from the test drive i asked in kind of a commanding voice. "so how much is this $5,000.00 truck actually going to cost me? i was again quoted $14,995 (or high retail) i explained i liked it but i also liked several others i had been looking at but if he wanted to sell the truck he needed to come off of that high retail number because we both know you don't price it anywhere remotely near what they actually have in the truck. Right away the price drops to $10,295. i let him know NOW you're playing the game right. then i threw $7,000 back at him. he got on the phone with his manager who said bottom dollar was $10,000 and i would still have to pay doc fee and taxes on that. i was pretty happy with myself at that point but i had a feeling there was more to squeeze out of the guy on this one somehow$10,000.00 was high wholesale or trade in so i was pretty sure i would be ok at that price but i had to push just a little more the salesman had started writing up the deal when i came back with $8,500.00 and i would bring my own financing to the table where they just get cut a check. Now i had no intention of having anyone cut him anything just yet so i threw $8,500.00 at him and he said no. i went to leave and turned as i was grabbing the door handle to walk out and said "last chance, if you get right with me on this it's gone if you hang on to your number it'll sit here on your lot and your insurance for another couple months or so. he got back on the phone with his manager. this time they were going back and forth for 20 minutes. but when he hung up he said he won't go penny below $9,000.00 that's it! and you still have to pay tax, tag ,title and doc fee. told him nope split the doc and title fee with me(he had no clue i was from out of state at that point and would be paying taxes myself in my state where it was cheaper. once e wrote it up i told him now deduct the taxes because i'll pay that in my state and tell me what your total is. $9,100.00 even but his doc guy wasn't there that day. i told him i would be back the next day with a check for him for that exact amount and nothing more. Next day doc guy was there, i handed him the check grabbed the keys and left. from $14,995.00 down to $9,100.00 just because of my Richard Rawlings (Gas Monkey Garage and 2007 Canon Ball Run record setter) approach to dealing with sales guys. i paid cash but i never showed my cards until the deal was done. i had a $10,000.00 personal loan with NO collateral and no money down as well as an 8% interest rate on the loan. THIS was the third time i have negotiated that way and won. i know the dealer still made a profit or he wouldn't have sold it to me but i got it bought at $1,000.00 under wholesale so i call that a victory. and the truck is still running great 2 years later*
That's great!! But 8% seems like a high interest rate. Even dealerships usually do better than that. (Unless someone's credit is bad.) Thanks for sharing your experience!
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Idk what his terms were and dont feel like doing the math but...i mean...10,000@8% for 48 months vs. At least sticker @ say 5% for 48 months plus down payment.......idk which would be cheaper.
@@cre8509 I paid cash, there was no interest but i didn't break out the cash till the next day. I negotiated my best deal first then brought him a cashier's check the second day (thinking that even at $9,000.00 they still made a little something on the deal )
@@jrr7031 it was a cash transaction there was no financing involved at all
Beautiful! They won’t know what hit’em 😘 Thanks Kevin #thehomeworkguy
Thank you so much .It will help me when I consider to get a new vehicle
I used to work at a used car dealer when I was in my early twenties and the profit used car dealers make on their cars is borderline criminal!!!!....I was shocked when I found out how cheap dealers could buy cars at auction. The cars he took on trade in were basically stolen! People nowadays pretty much know how much their car is worth atleast in the ballpark but,back in the late 80s most people didnt and the guy in worked for would take advantage of the fact and low ball drastically! There is a reason why used car salesman have a reputation, its because they have earned it. Even nowadays a dealer will screw you in your trade in most of the time. They usually pencil whip the paperwork so much that if you actually broke it down you would find that dealers are crooked as hell!