Its not about selling more cars its about profit. The sad thing is people line up to get ripped off. Every dealership is gonna fuck you there is no way around except by not participating in it. Its funny people line up to get screwed over.
Not all dealerships are out to screw you, but you have to educate yourself so you don't get reeled in...... There's nothing wrong with walking away from a deal...... If it's not going to work for you, you have every right and responsibility to walk away from a deal...... There's no rule saying you even have to put money down on a vehicle...... I've actually done it where I've flipped the rebates to act as my down payment..... No money out of pocket and I've walked away with a vehicle...... Of course if a dealership sees you aren't paying attention, they may set out to screw you in the end because they see they can..... That's why on my latest vehicle purchase I paid attention to down payment, monthly payment, interest rate and term...... Talked myself into a payment that works for me and didn't put down any more than I could afford and now I'm actually a bit ahead of my payment schedule because when I could afford to pay more on the vehicle, I did
I can't wait for the day where everyone sells cars at the same price from warehouses and no negotiating. And if you don't wanna pay that price at that point, you can just go fuck yourself 😍
@Asniel Figueroa you would be correct....... There's no rule saying you can't walk away from a vehicle if the dealership isn't working with you or if they're being dishonest....... You should be the one controlling the deal instead of them
Dealership owners mostly small business owners have huge debt , so they have to make a bigger profit when Democrats tax and regulate them more , happens in Australia with the left democratic socialist
Roscoe Dogg i have to wonder why that is, because the dealership union sent a lobby to the state legislature? It only serves to benefit the dealership industry and not the consumers, it disenfranchises them. Maybe they donate to political campaigns. There is a reason i bought my iphone from an Apple store and not my carrier store.
@ray bee I think you missed the point or just skipped my comment altogether, Tesla Inc has been doing this already... they are their own manufacture and they sell cars directly to the average joe. If a car has a recall or needs warranty work done... you bring your car to Tesla Inc and they'll do it for you.
@@theeconsciousman you wait till the final itemized bill is handed over for you to review and if you agree say that and say you have money to put down.
@@ChevyDude good info. I'm looking to buy a new ranger when its out early next year. I feel I've done pretty well in the past when buying vehicles, but always trying to learn new tips. Thanks.
After watching a bunch of your videos I’m about to the point of just walking everywhere as opposed to going through the whole car buying ordeal new or used
I once walked into a car dealership at the ripe age of 21. Looking for a used car....looked up the kelly blue book before going to look at the car. I knew they got the car for less than kelly blue book. I had them marked so low on the deal. Played with them for about 30 minutes. Was not liking the price and walked away. As I walked away, he wanted to know if I wanted a job at the dealership. I said nope I already have a job and it is not a car salesman. The buyer holds the power and the object is only worth what the buyer is willing to pay for it. Happy car shopping everyone!
Key advice. Never negotiate on the final payment, focus on all of the prices. When they come at you with final payment value, ask to see ALL of the numbers in the math. It helps if you are fully willing to walk away at anything regarding the price that makes you uncomfortable.
When I had to negotiate as soon as the salesman acted like it was difficult I would tell them I'll give them time to figure it out and come back in 30 minutes, it flips the control from them to you.
@@fredberfal1246 Yea I see your point. He is like a bitch! Out for your money, and can't be trusted. Basically worthless. However, at least a bitch actually has something to offer. Even if it's short lived. Lol
I’ve been buying and leasing cars for years. I do a lot of research and calculations before even going to the dealer. I never put any money down. Not even taxes. And after making my mistakes along the way of which there were many, I’ve gotten to the point where I’m happy with the deals I get and don’t need to spend endless hours at the stealership
@@CjMk4GLi That has nothing to do with the price, that is how you are going to pay off that set price. Of course they want to know that first, so they can try to rip you off 3 different ways.
Mr. Dude is being quite informative here but he doesn't outright state his conclusions - that the vehicle sales business employs shady practices and leasing is a scam.
@Mr RandomTV9000 I have only discovered one reason that makes leasing a good deal. My friend's wife wrecked her car twice. When the lease was up he was more than happy to give it back.
The last time I bought a car it went shockingly smooth. I called up, gave them the stock number of the car I was interested in, offered 15% less than MSRP on a Honda Civic, not really expecting them to agree, but they did. I was at the dealership when they unlocked the door the following morning. No problems, no games. The whole process took 90 minutes, and this was from a local dealer who many people do not like.
What about taxes? let’s say the vehicle is $30,000 MSRP and you offer 15% less and taxes is 10%. Are you adding the 10% to the 30,000 or the subtracted amount, which would be $25,500?
And that’s why Tesla is so nice. You order what you want online... no other bs don’t have to deal with a dealership. Wish other companies started doing this but it wouldn’t be good for the car dealership industry
Best way to play their game is go in with YOUR out the door price and if they won't do it then move to another of the 5 billion dealers. Make sure you do your homework on the value of the cars you want for the year you want. And never play their skiing price always always cut it and NEVER COME UP WITH A PRICE First Ask THEM WHAT THEY ARE ASKING.. And if they won't give you a price first move to another of the 5 billion dealers. Remember you have the $$$ SO YOU HAVE ALL THE POWER!
My dealer actually limited me to $3000 down payment. It was bs, but the interest rate was .9% so I relented. Over 3 years of my loan I'll pay about $400 in interest, but I'll pay off the car in a year.
Simple recommendation, buy the car cash or finance through YOUR bank. Never ever ever finance through the dealership. They will scam you and will have a bank help them scam you for their cut.
That's why I've never financed besides one time and I'll never do it again. Paying cash and not buying new and being smart witn what brands you chose to drive. If you do buy from a dealer do your research! There are honest dealerships and even honest salesmen! (Gasp)
Don't worry about the monthly payment number. If you did your math(many calculators online) before going, you already know this number and buying in a price point within your comfort zone. Hustle your final price first. Then give them the down payment. If they can get you a better rate than your bank, take it. Yes, this gives them some more profit. It's ok. It allows them to give you a better final price because they want to make profit somewhere and you're taking some profit away from them by getting a lower price on the vehicle. Sign papers, drive home.
I bought a new car about a month ago. I put 5K down. I started watching this video, dreading to hear Dude say that "Its a waste" or "don't do it". I've watched it all the way through and I can say that I think it was a good idea to put that much down. I bought a Nissan but THX CHEVY DUDE.
This is why I wait on lease returns and buy them used. There isnt as much to worry about. Plus I used to be a new car salesman and the managers were trying to get me to do shady things to make more profit. Needless to say i quit selling and became a mechanic in the fleet industry six months later.
So damn sad a new car to buy should be enjoyable! And a great experience! Now you have to were body armor! They pulverize you! I'd. Probably like to buy again but I still sick of my last Esperiance
@@kevinaalberts9251 I work as a mechanic in the fleet industry you dumb ass. If you new about fleet then you would feel stupid right now. You should really think before you speak to keep from sounding ignorant.
It really comes down to the down payment. Your going to want to put 30%, or more down. Never want an APR rate over 15%, because your going to be paying $5,000 or more in interest. Depending on the final price of the car.
@@Alexi7666 no, he said verbatim “it really comes down to the down payment, your going to want to put 30% or more” when in reality anything more than a 15% on down payment is just extra leeway on your monthly but 15% down payment is more than enough.
I can grow my money at a better percentage than the loan itself. I will never put money down. Hell my next trade in won’t be a trade in. I’ll sell it outright to the dealership and finance 100% of the vehicle. (If this is an option).. 10-20k in the pocket that grows at 5-10% a year while I finance the new vehicle at 2-3%
1) Don't talk about your money. 2) Talk about how low you can get price down on the vehicle. ( You may have to shop different dealers) 3) If you have a trade in, get a price first before giving them your ss#.(If financing) 4) Once you like the price, start talking about your money.(Down payment/Financing) Keep track of the price at all times. Take a paper and pen if need be. 5) If at the end of the day(because it will take a whole day) something doesn't sound right. Go home,think about it and don't rush it.
I negotiated with multiple dealers over the phone/internet. Narrowed it down to two dealers. One said we'd beat any advertised price in an email. Went to another dealer, negotiated down 3.5k to where we were about to sign the deal. I pull out that email and get them to take off another 10%, then told them I wanted to lease. I put zero down on the lease. I got a 2019 Impreza Sport with Eyesight and H/K sound system for $275/mo
Yeah.. put like 5 grand down.. rather keep that 5 grand and use that money and save it for the payments or 5 grand after you take it out and put it towards the car
I'm sure Mike will cover this in another video, but 2 other reasons may be 1.) The purchaser is upside-down in his/her trade. Sometimes that payoff can put the LTV higher than the bank will buy. If the dealership can't sell the loan, they can't sell the car. 2.) The buyer's Debt-To-Income ratio is high, and the down payment will drop the monthly payment (by dropping the amount financed) below the magical 42%. Actually, a third reason can be because the car dealership is in the car too deep and needs to unload it. If they haven't balanced the inventory then the amount they own the car for may be keeping them from making any money at the price they have to drop the car to, in order to get the buyer financed. Maybe more complicated than non-car dealers would understand but I've been in a few situations were getting even just $200 from the buyer as a down payment = $200 in profit, and that's it. People with bad credit are the ones that get the dealership into that position, more than not.
Johnathan Gonzalez it’s the 21st century, he most likely knows this but would rather not be bothered to put the comma in. People literally abbreviate everything when typing... plus no one likes a grammar nazi
Awesome if I can get you this car at 10,000 out the door with a 500 payment for 72 months are you ready to move forward? Since price is more important for you and your family is that correct sir?
@@David-or8oh thats exactly how it works. I just picked up a new buick didnt get the rebate scam deal. With no rebates i am paying 8k less than if I got the rebates and payed piles of intrest for the prevelage of receiving a rebate 😂😂😂
90% of the time. Depends on the lender and dealer check you get depending on someone’s credit, income, vehicle and a few other things. Sometimes it takes the down payment to make any money at all and most of the time it’s just gravy on top.
I dont tell dealer anything other than I want lowest price. Internet sales and in person sales. I can buy a 1 way tkt to many dealerships in my State for 200 bucks and yes, I've walked away from deal over $500 bucks.
Diego González It’s not tricky at all. Buy used cars with cash. Financed new cars and ESPECIALLY leasing are both total ripoffs. This guy wants you to believe buying a car is complicated so he can sell you a car as an “ethical” car salesman. He’s not ethical, he wants you to make huge monthly payments to him just like every other salesman. Cash. Used cars. Nice and simple.
@@mohnjayer Yeah it’s awesome seeing how much that car you own depreciates by the day and a ton of fun dealing with the mounting mechanical issues over time. Leasing is far superior, efficient and just flat out the smarter move. By far.
If I’m putting down $4000 down on a 2010 4runner that’s $11500 and my payment per month is $319 for 36 months, that equals $11,484 in the end, so where’s my down payment going? 🤔
As a former car dealer I'll tell you the real secret. Do NOT finance through the dealership or the manufacturer, this is the golden mistake millions of people make. Go through your credit union or financial institution. Make sure any money you put down you give to them, not the dealer!!!!
I bought a new 2018 Silverado December 2018 and financed thru GM financial scam rip off ass clowns then refinanced a week later at a local credit union. GM was at 6.7 percent my place is 2.7 I did it to get the extra "rebate" . The dealership asked me to wait a few months before doing that lol fk that my loyalty is to my wallet not the dealership.
Car dealerships are so shady. That old school “strong” sales style needs to change. The car industry as a whole needs to innovate. It’s not the 1950s anymore. If dealerships don’t innovate they’re gonna be out of business soon enough. (like some taxi companies *cough* Uber)
That’s not true , because dealers will take advantage of down payment and raise interest rate and deceive customers by adding more products, I was a finance manager at a Chevy dealer and I had to quite because I couldn’t sleep at night out of guilt !! You better get a check from your bank or credit union .
Mikey Finance what’s the best option to buy a car that cost $7000 , should I finance with a down payment say $1000 and finance the rest or get a credit union loan and negotiate a cash price at the lowest price possible?
lol "Tip #2!" I was like, where tf was tip #1? This vid is essentially, 'dealerships will screw you out of money'...which everyone knew before watching the vid
All car salesmen are liars. If they told you the truth the dealership would fire them. I have been buying cars for 40 years and in that time I have purchased 1 vehicle where I feel I got a straight deal. It was December 30th and salesman needed to sell a vehicle. I bout my last new vehicle in July of 2018. I told salesman I was going to buy product x and would not be purchasing extended warranty. Got into the little room and guy just keep hammering a warranty I did not want. I finally told him if you keep pushing I am walking. Stop the extended warranty crap.
I myself have done some research on the legal way that businesses have to go by the codes when selling an automobile to a customer. It's illegal and it's fraud to ask customer for down payment on an automobile up front.
Buy your car with cash and you don’t have to deal with any financing trickery and nonsense. I recently purchased my first car, a used 2013 Ford Mustang v6 with cash. I certainly could’ve walked away with a brand new 5.0 mustang GT but I’d rather buy something I can afford in full and then save up at my own leisure than go into huge debt for instant gratification now. Plus it’s extra satisfying to buy something after saving up for a while. Just my 2 cents from the Dave Ramsey within me 👍🏼
I'm a tree Financing a car to “build credit” is an excuse you tell your wife when she wonders why you have a new car 😄... you can build credit for free by using a credit card and paying it off at the end of the month. 99% of people that finance and lease cars do so because they simply can’t afford it. But they want instant gratification so they buy it anyways. The banks love it. Easy money for them.
Daisy Juice Establish how much you want to pay before you even start looking. Look for used cars between 2-5 years old for the best overall value. That works best for a budget of $10,000 and up. If your budget ends up being less than that, look for reliable used cars like a Toyota Corolla or a used Honda. And from there if you’re not satisfied with the car you can afford, start a savings account and deposit into it every paycheck and work up to something nicer. And at any time you can use that money for other purchases if need be. Unlike financing a car where you’re on the hook for a bill every month even if your living situation changes.
More often than not a "down payment" is a way to line the pockets of the sales consultant and finance manager. Unless you are arranging for financing outside of the dealership (always a good idea anyhow) then it's usually pretty easy to bury your cash in the deal with other discounts or rebates as Chevy Dude mentions. Don't be a "payment buyer" understand the rate, term and total cost of the vehicle - know those things before you go and never let the dealer take your credit app before you understand the terms of the deal. Remember too that these guys/gals are professionals - they do this all day long and you do it a few hours every few years - it's not an even playing field. If you think for a second that you'll know what they (truly) paid for the car/truck/suv you're kidding yourself - most of the time even the sales manager doesn't know - they just know about "how low they can go". Dealership owners many not know until all the "program money" is back in and any other factory to dealer incentives are accounted for.
Absolutely...I been trying to explain to people but the non believers send me nasty ass messages on how they are right financing their vehicles and I am wrong... LMAO..oh well...good to see I am not alone in understanding the value of 💰
Just go to a credit union and get the best rate for your situation. It doesn't matter what you put down. The key Is never finance through the stealership.
Exactly why I don't disclose monthly payment preference or down payment. Also, I go in pre-approved. I wait to see if the dealership can beat the rate I got. If not, I go with my pre-approved loan.
I see a lot of comments from people who don't know how to buy a car. Car Dealerships are FOR PROFIT businesses. Expect them to make a profit - They are NOT there to sell you the car at "COST" so don't expect it. Hell, some of you expect the dealership to take a loss on their inventory. THINK PERCENTAGE!!! It costs 9 cents to make a $4.00 Big Mac. So who's really screwing you? Oh, but it's only a $4.00 Big Mac, this is a $20,000 car. Yes, but the Dealership owns that $20,000 car for $18,500. - Which isn't even close to the mark-up percentage of another item you have no problem forking over (just an example, I know not everyone eats McDonalds) Seriously, with TRUE CAR and CAR GURUS and all the other 100s of car buying websites out there if you get "screwed" that's on YOU. The days of cars being marked up $3000-$5000 are OVER. If a dealer marks his car up like that you'll see dozens cheaper online and just go to those dealerships instead so most dealers compete with each other to have the lowest price out of the gate (this is on everyday cars, not specialty cars) If I price my 40,000 mile, 2018 Altima $2000 more than the guy down the street on the same car, you're going to see it online and just go to him. So stop with the "get screwed" nonsense. You have the tools - use them.
isn't Money down illegal according to TILA ? finance charge = Sum of all charges these include down payment , Insurance tax and title fees, finders fee etc etc because on a credit extension there is no cash involved ?
1. Never use a dealership for financing. They jack up the APR and run multiple (read: unnecessary) credit checks, hurting your score. Always go through a credit union if possible. 2. NEVER give a down payment unless you're going to keep the vehicle for many, many years, or unless you have to in order to get financed and then, ONLY give the absolute minimum.
I have got to point if I don't like how a dealership comes at me I get up an walk out of the dealership. Thanks for all the information you provide. Love your videos.
I never let dealerships run my credit because they send it to like 60 banks who all run your credit and bring it down bad! I always go to my personal bank and apply for a car loan so i only have one bank running my credit! Plus dealerships hate this because it kills there bonus profit that banks give them for finding them new customers!
@@jasenrock i did once and i recieved like 30 letters to my house telling me i was approved even though the dealership told me they only sent my application to my bank! You can't trust dealerships!
@@Fume1337 can you please explain to me a little more in regards to a down payment on an auto loan? So, my credit union financed me 30k with a 2.9% APR for 60 or 66 months (up to me to decided) and I don’t need to put a down payment. Now if I go to a dealership and they want me to put a down payment is it smart to do so? I don’t really understand this. What’s the point of the down payment if I’m comfortable with the payments I will be making on my 30k loan from my credit union. (Not that I want or am going spend 30k) just an example.
What the first guy said, but more importantly. I would love for you to tell me what he told us, because best I can tell. He never said a damn thing. He implied, he cajoled, but there was Zero details that would help anyone, in ANY WAY, AT ALL!
Love your videos. I don't care what my payments are, I want to see what my trade value is, what my interest rate is and everything that goes into the total. This might not be the right way to go about it, but if a car salesman asks me what i want my payments to be....I walk out.
Hey Dave, I typically wait until I get the freshly printed itemized contract to scrutinize. Plus thats usually the apex where they sell ext. warranty, undercoat, and tint....... Until my signature is on it, they ain't got diddly squat!
ok, interesting discussion.. for me, i only talk out 'the door price' (price with taxes, tags and their fees).. and i dont mention any trades or downpayments until we have agreed on that number... Then when i get to the finance desk i break it to that person that they are wasting their time. I never buy extended warranties or any of the dealer 'treatments' like paint sealing or undercoating... I never feel taken advantage of but who knows?
Undercoating can be worth it if it’s $500 or less. But I live in the salt belt. I use to work for an extended warranty company. If you pay less $1000 you got a good deal.
@@TheMotorGuyDirect All modern cars are undercoated, all you are doing is blocking drain holes and making your car rust faster with those aftermarket ones now.
I got a pretty good deal on my car. 3000 dollar rebate. 1000 off with x plan. Trade in with my junker that got me another 2500. Then I tossed down a down payment on the loan. Had half the car payed for day one. Then payed it off in a year. 0 apr is such a scam lol
Rule of thumb... ALWAYS do your homework! Know your NUMBERS! NEVER let them know how much of a monthly payment you want. No one's fault but your own if you get taken!
@@adrianmartinez7170 there are plenty, Cargurus, Trucar, Kbb, Edmunds... I personally like Car Gurus. You NEVER disclose how much you want to spend a month. Most important is the final price. That's the baseline. If you do not k ow or have the baseline price. You are in BIG trouble! You need to know your own numbers and calculations. There are apps, for car loans and more.
I've stopped buying from dealers and just cash flow privately...my only negotiation is taking it to my mechanic. Dealer lobbying has killed it for me...hell, Texas is even trying to stop Tesla from working on their own vehicles because of the auto lobby down here crying that Tesla sells direct. I pray for the day that customers will be able to buy direct from the manufacturer.
I hate when car dealers talk in down payments and monthly payments. It is an easy way to confuse most customers and hide the bad details of the deal. Could lease an S class for $50 bucks a month with enough money down...
@@coopsnz1 ...people will spend a entire years salary on a car because the they can afford the payments over 5-7 years...i was one of those fools ..that is how you stay BROKE...if you make say 40k a year ..you should be driving a 5k at the most..
A down payment is not a scam but you always need to look at dealer fees. Dealer salesman always want you to focus on the monthly payments and that how they cover up what you're actually paying for your car. If you're buying a car make sure your getting the vehicle at a good price, calculate taxes, title and then plug that into a car loan calculator. Also always negotiate your interest rate. Some financing companies let the dealer raise your interest rate and so that they can earn revenue over the lifespan of your loan.
I'm more lost now than before i watched this that being said I agree with Alan Smith on being pre-approved prior to shopping for a car know your financial limits and hold fast if you've got good credit you should have no problems buying a car now if your a person who can afford to purchase a new vehicle (or a person who doesn't care that your throwing a few thousand bucks out the widow of a new car as you drive it home then go for it I myself have never bought a brand new vehicle and I never will I can't see paying that price for something that I'm not keeping past 7 years (the longest I've ever owed a car)
LISTEN UP FOLKS.....0% financing for 72 months is ALWAYS available if you have over a 725 or so credit score. The dealer won't tell you that but it is......insist on it! The higher the finance rate you agree to the more money the dealer makes!!
@@willjacobs4101 Most dealers promote it for the big holiday sales, Memorial Day Sale, 4th of July Sale, Labor Day Sale ect....... But.......you can ask for it at any time from any dealer, some will yell you it's not available or they will refuse to do it.
Note : Never walk into a dealership with out a loan calculator set on your phone. Simple math always works. Never Finance with a dealers office. Always take a few days to just list your car yourself to see what your missing. Always pay taxes down unless your trade compensation helps. See the numbers and bottom line. Ask for a printout of the numbers every time something changes.
I never put a down payment. In the time the salesman is wasting coming up with what he’s going to say is a great deal. I’ve already added up everything with interest and taxes. So I will ask to give me the breakdown of why they are so far off from where I am. That’s usually when I get the “sales manager” coming up to see how much I’m looking to pay and I’ll say the most ridiculous lowball offer I can think of till they give me what I actually wanted. If not I have no time leaving. You can usually tell the guys that just want the sale because they are always acting like they did you a favor giving you a ridiculous price where you’re paying $40k over 60 months for a $25k car. Those people I’ll fuck with and say yes sounds like a deal and when they want me to fill out the paperwork for the credit check I say sorry I changed my mind and walk out. I’ve literally watched those guys almost lose their jobs because they’re about to curse me out. Well I wouldn’t have wasted your time if you didn’t waste mine.
If you have good credit just make them a lowball offer cause they won’t hesitate to hiball you cause there ppl that will take the first offer they give them don’t be scared to lowball and walk out of the dealership and try another place trust me they will call you back! If you have bad credit then you out of luck there’s not much negotiation to do it’s either take it at this price or go home empty handed and trust me theres way more ppl with bad credit than ppl with good credit
Owning a home is a liability. And if you have to finance something. You can't afford it, nor do you really own it. I own rental property, for now anyway. I most certainly do not own my own home, and may never do so. I finance nothing anymore. And haven't in well over a decade. And I have no credit cards either. I have debit cards, which accomplish the same thing, without accruing any interest, ever. I don't play their game. I play my game, my way, and I win this way. Not them. I buy all my property cash. And funnily enough. Only rent to people with good credit. Because I know they're worried about it. So they'll definitely pay me. I don't have those problems. You can't screw with me that way. I'll pay you because I think it's fair to, not because I'm concerned about my credit rating. No one's got me by the Cajones like that, EVER! You all really need to learn how to use your money properly. You all think that rich people have good credit? 😂 😂 😂 There's lots of videos on here that explain these things. You all should really start watching them. Or you'll never truly be independent. You all say I don't own my own home. What's funny is that you're all the ones that don't own your own home, like you think you do. The bank does. And if you can't pay the taxes before, or after you've paid it off. You won't own it then either. You're under the delusion you own it. You really own nothing. Even in a state with no property taxes. They can still take it from you other ways, if they want to. Liens, eminent domain, etc. All you've done is put yourself in debt. Just like they want you to. Good luck with all that.
Go to your union credit ask for car loan once you r approve walk in to the dealer like you have money because you do from the bank.never tell dealer what do you want to pay monthly.
If you’re buying a car or leasing always negotiate on the price of the vehicle first. Don’t mention anything about leasing or financing, when they ask say you’re not sure, you may be paying cash. Never mention you have a trade. Once you have agreed on the price of the vehicle then take the next step. If leasing have payments run off the negotiated sales price, use a lease calculator to check their math. If financing obtain your financing outside the dealership, if they can beat the rate fine, just be sure to use a calculator to verify base payment is accurate. If you’re trading in be sure to negotiate only after you have negotiated the sales price of the vehicle you’re purchasing.
Tesla's customer service lately is terrible. They send out people used cars when they buy new ones then tell them they need to buy another one and wait months for the refund on the first one that Tesla tried to pawn off on them.
So after hours of haggling, i got a quote for $710/mo for no money down OR $615/mo with $3000 down. It looks like I would pay $95 less per month. $710 x 36 = 25560 $615 x 36 + 3000 = 25140 That's $420 difference. $420/36 = $11.67. I'd actually save $11.67/mo. Yes, a penny save is a penny earn, only if nothing would go wrong. If something goes wrong and the car is total in an accident after a couple months, the $3000 is gone. Money down is not worth on leasing unless you are trading in your junk car because you dont want to deal with crazy people when selling your junk car to a private party.
I've never put down any down payments. I go through my own bank Never paid more than 2% APR I always negotiate lowest car price possible in the month of April last Monday. Only go for 48 months term
Unlike a lot of states the state of Texas does charge full sales tax on a leased vehicle up front and if you decide to purchase the vehicle at end of lease do not terminate it at dealership or you will be paying the sales tax on the remaining amount you are purchasing the vehicle for. The dealership will sell the car to you as a used vehicle and to the state of Texas it will look like a new sell thus why you pay the sales tax again. Always purchase vehicle from leasing company directly, so you don’t have to pay sales tax again.
You give awesome information.... but you never state the best way to counter things that may be happening as people are sitting at a table doing a car deal. I think it would be most beneficial if you said.... so your local dealer is saying this or doing that... here is what you the consumer need to do when “This” happens
He wants you to pay for it? Didn’t you hear the beginning. He’s selling you on how to pay him on buying a car. If you notice most RUclipsrs that can’t make enough money on content only want you to pay them.
If I ever buy and partially finance a car I'm not going to let them know how much down until I get the price of the car I want. My mistake was proving I had the money in the bank. They took my down-payment and added to the baseline cost of the vehicle over the advertised baseline price. ILLEGAL. I didn't do my homework so stupid of me. I got scammed big time.
@ilyarepin7750 it's illegal I figured out what they did and can prove it by the paperwor. They added my down-payment minus 5 dollars to the amount financed plus added on the extras. Which brought the cost to twice the cost that needed to be financed. I've contacted the state AG's office.
My dealer was straight with me and my C8 was built and delivered as soon as possible against events they had no power to influence. Money Down was to secure the deal and mine was applied to the purchase of my C8 and I paid list price! $67,885.00. I had my own financing so it wasn’t to buy a payment with the down payment. It was to buy equity in a future delivery. No trade in left no place for a dealership manager to play with my out of pocket cost.
You're talking way over most folks heads here. Always and I mean ALWAYS go into any car buying situation with a preapproved loan. Also, never allow yourself to be in a situation where you NEED to leave in said car. Also take a copy of the NADA printout of what your trade is valued at. Dont take one dime less than that. If you do put down cash, make sure that take this off the negotiated price of the car, not after tax, title, and licensing fees are added. If they day no, walk away. Also, never let them know you're preapproved or they will freeze on coming down on the price. Buying a car is fun for me.
Favorite used car trick. So a salesman says that an old lady original owner just traded it in. But you turn on the radio. Then notice that the presets are all the rock and Heavy Metal stations!!!!
If you are going to finance a vehicle...never give a down payment...that down payment disappears during the paperwork process..you should never finance a depreciating asset anyways...save your 💰..and buy cash...it's just a vehicle
@@guillermozavala315 exactly what I said bro...get the otd price right away...if financing is the only option for you then get a pre approval from your bank or credit union which is preferred...down payments get erased during paperwork...if you give a down payment of say 3000 bux the dealer just made that money PLUS the typical 4000 dollar profit they make per vehicle..save you r money buy a cash car...they got me once when I was younger..never again..and also..never pay a transportation fee if the car you are trying to buy is ALREADY on the lot
eddie rivera my credit is bad and need a vehicle. I plan on putting 15 grand down on a 40,000 dollar car. What should I do?? What should us people with bad credit do?
As a car salesman myself please explain how down payments disappears cause I'm calling BS on that. If you're saying i shouldn't finance a depreciating asset then what about cars that appreciate or hold resale value? Buy cash? Not everyone has that much cash on hand. It's just car? Yeah it's just a car but it's better than a bus pass, walking, or ride share.
Down Payment could be money down the drain. Say a person puts $3,000 down payment. Later on, the car gets totaled, and insurance just happens to pay what is owed on it. To get another car and the same payments, the person has to come up with ANOTHER $3,000. The credit union my Wife uses will go up (I believe) 110% of sticker. GAP insurance is cheap, and will pay the difference between what is owed and what the insurance pays. My Wife finances total purchase price. She only pays tax, title, and any State required fees.
That very thing happened to me once 3 months after I bought a used vehicle .. I put down 5k and list 5k insurance only paid off the remainder of the loan not the loan AND my down payment
MEH, Negotiate the Drive out price of the Vehicle before even mentioning what you want your payment to be or the amount down. After that it does NOT matter what your down payment is pending you have the income / Credit History to support whatever you are buying. If you are one of those people trying to buy a $,50,000 car, but you only have roughly $2500 to put down then you/re probably a fool about to get shit on by the dealer anyway.
Too bad dealers can’t figure out that they could sell more cars and spend less on advertising if they were honest
Its not about selling more cars its about profit. The sad thing is people line up to get ripped off. Every dealership is gonna fuck you there is no way around except by not participating in it. Its funny people line up to get screwed over.
Not all dealerships are out to screw you, but you have to educate yourself so you don't get reeled in...... There's nothing wrong with walking away from a deal...... If it's not going to work for you, you have every right and responsibility to walk away from a deal...... There's no rule saying you even have to put money down on a vehicle...... I've actually done it where I've flipped the rebates to act as my down payment..... No money out of pocket and I've walked away with a vehicle...... Of course if a dealership sees you aren't paying attention, they may set out to screw you in the end because they see they can..... That's why on my latest vehicle purchase I paid attention to down payment, monthly payment, interest rate and term...... Talked myself into a payment that works for me and didn't put down any more than I could afford and now I'm actually a bit ahead of my payment schedule because when I could afford to pay more on the vehicle, I did
I can't wait for the day where everyone sells cars at the same price from warehouses and no negotiating.
And if you don't wanna pay that price at that point, you can just go fuck yourself 😍
@Asniel Figueroa you would be correct....... There's no rule saying you can't walk away from a vehicle if the dealership isn't working with you or if they're being dishonest....... You should be the one controlling the deal instead of them
Dealership owners mostly small business owners have huge debt , so they have to make a bigger profit when Democrats tax and regulate them more , happens in Australia with the left democratic socialist
The Manufacturer should sell straight to the consumer and skip the dealer ship.......🥊
@ vcash holdfastThats what Tesla is trying to do, but law ban car makers from selling cars as stated by @Roscor Dogg
Roscoe Dogg i have to wonder why that is, because the dealership union sent a lobby to the state legislature? It only serves to benefit the dealership industry and not the consumers, it disenfranchises them. Maybe they donate to political campaigns. There is a reason i bought my iphone from an Apple store and not my carrier store.
@ray bee I think you missed the point or just skipped my comment altogether, Tesla Inc has been doing this already... they are their own manufacture and they sell cars directly to the average joe. If a car has a recall or needs warranty work done... you bring your car to Tesla Inc and they'll do it for you.
@Gus Goose a1 comment
vcash holdfast got to get rid of the fucking lobby first. Money in politics is 100% legal bribes.
NEVER TELL THEM YOU HAVE MONEY TO PUT DOWN. Settle on a price first then tell them you have money to put down
Asking for money down is illegal. 15 USC 1605 knowledge is power
do you need to sign anything before saying you have money to put down, could they take that offer off the table
@@theeconsciousman you wait till the final itemized bill is handed over for you to review and if you agree say that and say you have money to put down.
I can 500 or 1000 put down any car price
If putting $ down dosen’t change the interest rate save the $ to use for payments
Good to see Biff from back to the future turned over a new leaf and is helping folks out.
@@ChevyDude good info. I'm looking to buy a new ranger when its out early next year. I feel I've done pretty well in the past when buying vehicles, but always trying to learn new tips. Thanks.
What do you recommend for a wax? I've been using mothers I can't think of the type right now
Good to see Sweetchuck from Police Academy has a RUclips profile.
@@endocry lol. That was a good pull. The obscure reference gets bonus points.
Chevy Dude good come back and reference.
After watching a bunch of your videos I’m about to the point of just walking everywhere as opposed to going through the whole car buying ordeal new or used
For real, so many scams, so little money.
Exactly. It's like the only thing we can really own is our own bodies and lives.
@@Andy-im3kj 👁
I once walked into a car dealership at the ripe age of 21. Looking for a used car....looked up the kelly blue book before going to look at the car. I knew they got the car for less than kelly blue book. I had them marked so low on the deal. Played with them for about 30 minutes. Was not liking the price and walked away. As I walked away, he wanted to know if I wanted a job at the dealership. I said nope I already have a job and it is not a car salesman. The buyer holds the power and the object is only worth what the buyer is willing to pay for it. Happy car shopping everyone!
The worst car accidents happen on the showroom floor
Jim Cooke Dave Ramsey!
@@James-wx9bf Dave Ramsey is a fraud.
@@SOLDOZER Explain.
@@anthonyd.jacksonjr.2139 He makes money in the fastlane by telling you to make money by saving pennies. Total racket. Like Suze Orman.
@@SOLDOZER Interesting...
Key advice. Never negotiate on the final payment, focus on all of the prices. When they come at you with final payment value, ask to see ALL of the numbers in the math. It helps if you are fully willing to walk away at anything regarding the price that makes you uncomfortable.
When I had to negotiate as soon as the salesman acted like it was difficult I would tell them I'll give them time to figure it out and come back in 30 minutes, it flips the control from them to you.
This makes me never want to buy a car again lol
Why is that? He never actually said anything. At ALL!
@@fredberfal1246 Yea I see your point. He is like a bitch! Out for your money, and can't be trusted. Basically worthless. However, at least a bitch actually has something to offer. Even if it's short lived. Lol
I try to do it as seldom as possible. That's a reason I am more conscientious with car/truck maintenance.
@@amb3cog Do you work for free ?
I’ve been buying and leasing cars for years. I do a lot of research and calculations before even going to the dealer. I never put any money down. Not even taxes. And after making my mistakes along the way of which there were many, I’ve gotten to the point where I’m happy with the deals I get and don’t need to spend endless hours at the stealership
How do you do that every single dealer always asks for a DP they’re money hungry
Never discuss a trade in or down payment until u have the price locked in
How would you get the price locked in? They always wanna know what downpayment you have or what trade in. Well at least to the ones I’ve gone to
@@CjMk4GLi
That has nothing to do with the price, that is how you are going to pay off that set price.
Of course they want to know that first, so they can try to rip you off 3 different ways.
Yep!
Ray Davies 😂😂😂😂💀💀💀
Tell them you are going to finance, then at the last minute grab the contract and tear it to shreds and pay cash. They will appreciate your candor.
Mr. Dude is being quite informative here but he doesn't outright state his conclusions - that the vehicle sales business employs shady practices and leasing is a scam.
@Mr RandomTV9000 I have only discovered one reason that makes leasing a good deal. My friend's wife wrecked her car twice. When the lease was up he was more than happy to give it back.
The last time I bought a car it went shockingly smooth. I called up, gave them the stock number of the car I was interested in, offered 15% less than MSRP on a Honda Civic, not really expecting them to agree, but they did. I was at the dealership when they unlocked the door the following morning. No problems, no games. The whole process took 90 minutes, and this was from a local dealer who many people do not like.
Count yourself lucky because alot of dealerships love to play games and toy with people's time and lives.
@@Andy-im3kj need a tissue?
@@dadreiantennyson4489 Your mom needs one.
What about taxes? let’s say the vehicle is $30,000 MSRP and you offer 15% less and taxes is 10%. Are you adding the 10% to the 30,000 or the subtracted amount, which would be $25,500?
Every squirrel finds a nut one day !! Congrats for real though lol
And that’s why Tesla is so nice. You order what you want online... no other bs don’t have to deal with a dealership. Wish other companies started doing this but it wouldn’t be good for the car dealership industry
ohhh shit chevy dude with the tesla roast!!
Best way to play their game is go in with YOUR out the door price and if they won't do it then move to another of the 5 billion dealers.
Make sure you do your homework on the value of the cars you want for the year you want. And never play their skiing price always always cut it and NEVER COME UP WITH A PRICE First Ask THEM WHAT THEY ARE ASKING..
And if they won't give you a price first move to another of the 5 billion dealers. Remember you have the $$$ SO YOU HAVE ALL THE POWER!
My dealer actually limited me to $3000 down payment. It was bs, but the interest rate was .9% so I relented. Over 3 years of my loan I'll pay about $400 in interest, but I'll pay off the car in a year.
Good grief! Purchasing a vehicle is so perilous I'll just use a skate board.
AlanSmitheeman lol
Lol I got my mountain and road bike... I'm good
For if only motorcycles could keep you dry
@@PacificStory1111 And carry more than 2 bags full of groceries, lol.
For the price of an average new car, I could just invest that money into creating a device that just teleports me to my desired locations!😂
Simple recommendation, buy the car cash or finance through YOUR bank. Never ever ever finance through the dealership. They will scam you and will have a bank help them scam you for their cut.
Short of government taxes and health care buying cars the next biggest scam you'll ever have in your life
That's why I've never financed besides one time and I'll never do it again. Paying cash and not buying new and being smart witn what brands you chose to drive. If you do buy from a dealer do your research! There are honest dealerships and even honest salesmen! (Gasp)
Can't take money to the grave. If you can afford it safely, why not spend a little extra to finance a nicer car that you're gonna use every day?
Marriage
Buying cars is not a scam lol. Everything is upfront as long as you do your research lol.
You forgot student loans
Keep the dealer finance department out of the transaction. I finance with my own credit union. Saves a lot of hassles.
You can get more rebate if you go through their financing
Just make sure to have a good credit score so you can get a nice interest rate
Just finance through them to get the rebates, then within a week refinance with your own. Easy.
What if the dealership's finance department gives you 0% interest financing?
Don't worry about the monthly payment number. If you did your math(many calculators online) before going, you already know this number and buying in a price point within your comfort zone. Hustle your final price first. Then give them the down payment. If they can get you a better rate than your bank, take it. Yes, this gives them some more profit. It's ok. It allows them to give you a better final price because they want to make profit somewhere and you're taking some profit away from them by getting a lower price on the vehicle. Sign papers, drive home.
I bought a new car about a month ago. I put 5K down. I started watching this video, dreading to hear Dude say that "Its a waste" or "don't do it". I've watched it all the way through and I can say that I think it was a good idea to put that much down. I bought a Nissan but THX CHEVY DUDE.
This is why I wait on lease returns and buy them used. There isnt as much to worry about. Plus I used to be a new car salesman and the managers were trying to get me to do shady things to make more profit. Needless to say i quit selling and became a mechanic in the fleet industry six months later.
So damn sad a new car to buy should be enjoyable! And a great experience! Now you have to were body armor! They pulverize you! I'd. Probably like to buy again but I still sick of my last Esperiance
Your a mechanic now,and still ripping people off !!! Nice touch!
@@kevinaalberts9251 I work as a mechanic in the fleet industry you dumb ass. If you new about fleet then you would feel stupid right now. You should really think before you speak to keep from sounding ignorant.
@@waltbullet1287
Car dealers are the only stores that treat paying customers like crap. Well, airlines too.
They wonder why the are in the top 3 of the most hated people in business.
It really comes down to the down payment. Your going to want to put 30%, or more down. Never want an APR rate over 15%, because your going to be paying $5,000 or more in interest. Depending on the final price of the car.
Thanks for sharing this information.
Nobody is charging 15% these days. Unless it's a scumbag outfit like JD Byrider.
Not necessarily, at least 15% down payment should suffice
@@imso1stplace : 15% interest, not 15% downpayment.
@@Alexi7666 no, he said verbatim “it really comes down to the down payment, your going to want to put 30% or more” when in reality anything more than a 15% on down payment is just extra leeway on your monthly but 15% down payment is more than enough.
Your video is proof of why I don't ever trust car salesman. Every time they open their mouths they're lying.
I can grow my money at a better percentage than the loan itself. I will never put money down. Hell my next trade in won’t be a trade in. I’ll sell it outright to the dealership and finance 100% of the vehicle. (If this is an option).. 10-20k in the pocket that grows at 5-10% a year while I finance the new vehicle at 2-3%
A "capital" idea!
1) Don't talk about your money.
2) Talk about how low you can get price down on the vehicle. ( You may have to shop different dealers)
3) If you have a trade in, get a price first before giving them your ss#.(If financing)
4) Once you like the price, start talking about your money.(Down payment/Financing) Keep track of the price at all times. Take a paper and pen if need be.
5) If at the end of the day(because it will take a whole day) something doesn't sound right. Go home,think about it and don't rush it.
Sounds like a good way to waste a whole day 🤷♂️
I negotiated with multiple dealers over the phone/internet. Narrowed it down to two dealers. One said we'd beat any advertised price in an email. Went to another dealer, negotiated down 3.5k to where we were about to sign the deal. I pull out that email and get them to take off another 10%, then told them I wanted to lease. I put zero down on the lease. I got a 2019 Impreza Sport with Eyesight and H/K sound system for $275/mo
Every thousand dollar you put down only takes $20 of the monthly payments
Depending on the term of the loan
I don't think it's $20 anymore, maybe more like $16. If see a car commercial pause it and read the fine print, it will tell you.
@@briangoodie3420 or like do the math yourself....
@@guhbe385 LOL God Bless you sir!
Yeah.. put like 5 grand down.. rather keep that 5 grand and use that money and save it for the payments or 5 grand after you take it out and put it towards the car
I'm sure Mike will cover this in another video, but 2 other reasons may be 1.) The purchaser is upside-down in his/her trade. Sometimes that payoff can put the LTV higher than the bank will buy. If the dealership can't sell the loan, they can't sell the car. 2.) The buyer's Debt-To-Income ratio is high, and the down payment will drop the monthly payment (by dropping the amount financed) below the magical 42%.
Actually, a third reason can be because the car dealership is in the car too deep and needs to unload it. If they haven't balanced the inventory then the amount they own the car for may be keeping them from making any money at the price they have to drop the car to, in order to get the buyer financed. Maybe more complicated than non-car dealers would understand but I've been in a few situations were getting even just $200 from the buyer as a down payment = $200 in profit, and that's it. People with bad credit are the ones that get the dealership into that position, more than not.
Always talk price not payment!
Johnathan Gonzalez it’s the 21st century, he most likely knows this but would rather not be bothered to put the comma in. People literally abbreviate everything when typing... plus no one likes a grammar nazi
Johnathan Gonzalez, you forgot the period at the end of your sentence.
@@brandonmiller9423 Two opposable thumbs up for grammar Nazis!
Awesome if I can get you this car at 10,000 out the door with a 500 payment for 72 months are you ready to move forward? Since price is more important for you and your family is that correct sir?
@@David-or8oh thats exactly how it works. I just picked up a new buick didnt get the rebate scam deal. With no rebates i am paying 8k less than if I got the rebates and payed piles of intrest for the prevelage of receiving a rebate 😂😂😂
Never put a down on something that will depreciate the minute you take the keys by more than your down payment.
If depreciation is a concern, maybe you shouldn't be buying a car. Buy what you can afford, not what will impress people.
Unless you're investing that money or spending it, it's going to depreciate anyway through inflation, right?
90% of the time. Depends on the lender and dealer check you get depending on someone’s credit, income, vehicle and a few other things. Sometimes it takes the down payment to make any money at all and most of the time it’s just gravy on top.
I dont tell dealer anything other than I want lowest price. Internet sales and in person sales. I can buy a 1 way tkt to many dealerships in my State for 200 bucks and yes, I've walked away from deal over $500 bucks.
Toby Bridges you and everyone else lol
I'm fine with a dealership making money. I'm not fine with dealerships screwing people over.
No local taxes on mrsp lefty
you sound like the problom not the solution lol
Big deal everyone does thaat
I listened to the whole video and understood nothing.☹
I was left the same before starting the video. Buying a car can get really tricky
Diego González It’s not tricky at all. Buy used cars with cash. Financed new cars and ESPECIALLY leasing are both total ripoffs. This guy wants you to believe buying a car is complicated so he can sell you a car as an “ethical” car salesman. He’s not ethical, he wants you to make huge monthly payments to him just like every other salesman.
Cash. Used cars. Nice and simple.
@Amanda G Or in your case give good head and have guys drive you around
@@mohnjayer Yeah it’s awesome seeing how much that car you own depreciates by the day and a ton of fun dealing with the mounting mechanical issues over time. Leasing is far superior, efficient and just flat out the smarter move. By far.
If I’m putting down $4000 down on a 2010 4runner that’s $11500 and my payment per month is $319 for 36 months, that equals $11,484 in the end, so where’s my down payment going? 🤔
To their pockets and interest rate with those numbers the interest is 21.2%
As a former car dealer I'll tell you the real secret. Do NOT finance through the dealership or the manufacturer, this is the golden mistake millions of people make. Go through your credit union or financial institution. Make sure any money you put down you give to them, not the dealer!!!!
I bought a new 2018 Silverado December 2018 and financed thru GM financial scam rip off ass clowns then refinanced a week later at a local credit union. GM was at 6.7 percent my place is 2.7 I did it to get the extra "rebate" . The dealership asked me to wait a few months before doing that lol fk that my loyalty is to my wallet not the dealership.
Were you a dealer or a seller
Car dealerships are so shady. That old school “strong” sales style needs to change. The car industry as a whole needs to innovate. It’s not the 1950s anymore. If dealerships don’t innovate they’re gonna be out of business soon enough. (like some taxi companies *cough* Uber)
That’s not true , because dealers will take advantage of down payment and raise interest rate and deceive customers by adding more products, I was a finance manager at a Chevy dealer and I had to quite because I couldn’t sleep at night out of guilt !! You better get a check from your bank or credit union .
Mikey Finance what’s the best option to buy a car that cost $7000 , should I finance with a down payment say $1000 and finance the rest or get a credit union loan and negotiate a cash price at the lowest price possible?
yep, this guy is definitely a car salesman. he talks a lot but in a totally incomprehensible way. I know less now than before watching the video.
lol "Tip #2!" I was like, where tf was tip #1? This vid is essentially, 'dealerships will screw you out of money'...which everyone knew before watching the vid
The Chevy dude liked ur comment too with a heart..lmao..omg!!
All car salesmen are liars. If they told you the truth the dealership would fire them. I have been buying cars for 40 years and in that time I have purchased 1 vehicle where I feel I got a straight deal. It was December 30th and salesman needed to sell a vehicle. I bout my last new vehicle in July of 2018. I told salesman I was going to buy product x and would not be purchasing extended warranty. Got into the little room and guy just keep hammering a warranty I did not want. I finally told him if you keep pushing I am walking. Stop the extended warranty crap.
So basically fuck F&I managers they shouldn't try to do their job...
If you don't get a warranty and something happens to your car your fucked... You should probably get a warranty genius.
I also heard from someone else that buying a car at the end of the year might get you a better deal, I wonder if that is accurate.
I myself have done some research on the legal way that businesses have to go by the codes when selling an automobile to a customer.
It's illegal and it's fraud to ask customer for down payment on an automobile up front.
Buy your car with cash and you don’t have to deal with any financing trickery and nonsense.
I recently purchased my first car, a used 2013 Ford Mustang v6 with cash. I certainly could’ve walked away with a brand new 5.0 mustang GT but I’d rather buy something I can afford in full and then save up at my own leisure than go into huge debt for instant gratification now.
Plus it’s extra satisfying to buy something after saving up for a while. Just my 2 cents from the Dave Ramsey within me 👍🏼
Buying out right does not grow your credit which in turns hurts you
I'm a tree Financing a car to “build credit” is an excuse you tell your wife when she wonders why you have a new car 😄... you can build credit for free by using a credit card and paying it off at the end of the month.
99% of people that finance and lease cars do so because they simply can’t afford it. But they want instant gratification so they buy it anyways. The banks love it. Easy money for them.
Daisy Juice Establish how much you want to pay before you even start looking. Look for used cars between 2-5 years old for the best overall value. That works best for a budget of $10,000 and up. If your budget ends up being less than that, look for reliable used cars like a Toyota Corolla or a used Honda.
And from there if you’re not satisfied with the car you can afford, start a savings account and deposit into it every paycheck and work up to something nicer. And at any time you can use that money for other purchases if need be. Unlike financing a car where you’re on the hook for a bill every month even if your living situation changes.
From where I'm from if you pay a car up front they investigate you for money laundering 🤣 everyone wants you to just be in debt it's kinda crazy
But you bought a V6 and you won’t feel the same way about it in a few months!
I accidentally farted when the car salesman was going over my payment options, he left and came back with a paper that said no deal on it
More often than not a "down payment" is a way to line the pockets of the sales consultant and finance manager. Unless you are arranging for financing outside of the dealership (always a good idea anyhow) then it's usually pretty easy to bury your cash in the deal with other discounts or rebates as Chevy Dude mentions. Don't be a "payment buyer" understand the rate, term and total cost of the vehicle - know those things before you go and never let the dealer take your credit app before you understand the terms of the deal. Remember too that these guys/gals are professionals - they do this all day long and you do it a few hours every few years - it's not an even playing field. If you think for a second that you'll know what they (truly) paid for the car/truck/suv you're kidding yourself - most of the time even the sales manager doesn't know - they just know about "how low they can go". Dealership owners many not know until all the "program money" is back in and any other factory to dealer incentives are accounted for.
Absolutely...I been trying to explain to people but the non believers send me nasty ass messages on how they are right financing their vehicles and I am wrong... LMAO..oh well...good to see I am not alone in understanding the value of 💰
Just go to a credit union and get the best rate for your situation. It doesn't matter what you put down. The key Is never finance through the stealership.
Exactly why I don't disclose monthly payment preference or down payment. Also, I go in pre-approved. I wait to see if the dealership can beat the rate I got. If not, I go with my pre-approved loan.
Can you explain this more please
I see a lot of comments from people who don't know how to buy a car.
Car Dealerships are FOR PROFIT businesses. Expect them to make a profit - They are NOT there to sell you the car at "COST" so don't expect it. Hell, some of you expect the dealership to take a loss on their inventory. THINK PERCENTAGE!!! It costs 9 cents to make a $4.00 Big Mac. So who's really screwing you? Oh, but it's only a $4.00 Big Mac, this is a $20,000 car. Yes, but the Dealership owns that $20,000 car for $18,500. - Which isn't even close to the mark-up percentage of another item you have no problem forking over (just an example, I know not everyone eats McDonalds)
Seriously, with TRUE CAR and CAR GURUS and all the other 100s of car buying websites out there if you get "screwed" that's on YOU. The days of cars being marked up $3000-$5000 are OVER. If a dealer marks his car up like that you'll see dozens cheaper online and just go to those dealerships instead so most dealers compete with each other to have the lowest price out of the gate (this is on everyday cars, not specialty cars) If I price my 40,000 mile, 2018 Altima $2000 more than the guy down the street on the same car, you're going to see it online and just go to him. So stop with the "get screwed" nonsense. You have the tools - use them.
Why it's important to negotiate each step. And not give up all the info up front
Aww..i scrolled across another wise man!
isn't Money down illegal according to TILA ? finance charge = Sum of all charges these include down payment , Insurance tax and title fees, finders fee etc etc because on a credit extension there is no cash involved ?
1. Never use a dealership for financing. They jack up the APR and run multiple (read: unnecessary) credit checks, hurting your score. Always go through a credit union if possible.
2. NEVER give a down payment unless you're going to keep the vehicle for many, many years, or unless you have to in order to get financed and then, ONLY give the absolute minimum.
I have got to point if I don't like how a dealership comes at me I get up an walk out of the dealership. Thanks for all the information you provide. Love your videos.
I'm saving up so I can pay cash for a new truck screw financing and going in to debt.
Good luck. You’ll be saving for 30 yrs
And that's is why I just buy from a private sale when I have the money to buy it in one shot
I never let dealerships run my credit because they send it to like 60 banks who all run your credit and bring it down bad! I always go to my personal bank and apply for a car loan so i only have one bank running my credit! Plus dealerships hate this because it kills there bonus profit that banks give them for finding them new customers!
really man I should start doing that
@@theshield1613 going to dealerships is hard on your credit score!
@@TEXASBOYZ-mu4yo ,they are STEALERSHIPS lol
@@jasenrock i did once and i recieved like 30 letters to my house telling me i was approved even though the dealership told me they only sent my application to my bank! You can't trust dealerships!
@@ChevyDude that a lie. All salesman are scumsuckers.
You didn’t really explain why a deposit is bad. 🤷♂️
It isn’t
Put down the minimum of 20%. If you can’t put down at least 20%, you can’t afford the car. He’s gone through this on multiple vids.
A lot of words. Dude doesn’t make a single insightful point.
allthingsconsdrble Then you don’t fully comprehend. Re watch the videos until you get them 👍💯
@@Fume1337 can you please explain to me a little more in regards to a down payment on an auto loan? So, my credit union financed me 30k with a 2.9% APR for 60 or 66 months (up to me to decided) and I don’t need to put a down payment. Now if I go to a dealership and they want me to put a down payment is it smart to do so? I don’t really understand this. What’s the point of the down payment if I’m comfortable with the payments I will be making on my 30k loan from my credit union. (Not that I want or am going spend 30k) just an example.
I appreciate your videos but you really didn't provide any information.
Exactly
And here I thought it was just my low IQ.
What do you mean? He provided a ton of information.
no shit, I stopped at 4 minutes in, get your loan from your bank FUCK DEALERS
Well this man sells cars for a living... What makes u think he can't sell videos/views....????
Not sure why a car dealer would tell everyone the dirty secrets that car dealers use.
He is not a car dealer, he is a salesman. These vids can bring him a lot of customers.
What the first guy said, but more importantly. I would love for you to tell me what he told us, because best I can tell. He never said a damn thing. He implied, he cajoled, but there was Zero details that would help anyone, in ANY WAY, AT ALL!
We called it "pencil whip" in the service. Dealerships take pencil whipping to another level,lol.
My dad always said to apply your down payment to your first loan payment, avoiding all this uncertainty.
No down payment with a credit score of 650 or higher. Not a lot of people know this
antonio gonzales how come?
antonio gonzales why?
Well? Why? Explain yourself.
How the fuck explain please
My first car I financed I made no down payment with a credit score of 699.
Love your videos. I don't care what my payments are, I want to see what my trade value is, what my interest rate is and everything that goes into the total. This might not be the right way to go about it, but if a car salesman asks me what i want my payments to be....I walk out.
Hey Dave, I typically wait until I get the freshly printed itemized contract to scrutinize. Plus thats usually the apex where they sell ext. warranty, undercoat, and tint....... Until my signature is on it, they ain't got diddly squat!
ok, interesting discussion.. for me, i only talk out 'the door price' (price with taxes, tags and their fees).. and i dont mention any trades or downpayments until we have agreed on that number... Then when i get to the finance desk i break it to that person that they are wasting their time. I never buy extended warranties or any of the dealer 'treatments' like paint sealing or undercoating... I never feel taken advantage of but who knows?
Dirtnap300 same I do. It’s funny to see the pissed off look in their faces when they can’t take advantage of someone
Undercoating can be worth it if it’s $500 or less. But I live in the salt belt. I use to work for an extended warranty company. If you pay less $1000 you got a good deal.
@@TheMotorGuyDirect
All modern cars are undercoated, all you are doing is blocking drain holes and making your car rust faster with those aftermarket ones now.
I got a pretty good deal on my car. 3000 dollar rebate. 1000 off with x plan. Trade in with my junker that got me another 2500. Then I tossed down a down payment on the loan. Had half the car payed for day one. Then payed it off in a year. 0 apr is such a scam lol
Rule of thumb...
ALWAYS do your homework! Know your NUMBERS!
NEVER let them know how much of a monthly payment you want.
No one's fault but your own if you get taken!
Well put 👍🏻
Ok so then when do you disclose how much you want to pay monthly?
Is their a website that can help us consumers on how much the vehicle is worth?
@@adrianmartinez7170 there are plenty, Cargurus, Trucar, Kbb, Edmunds... I personally like Car Gurus.
You NEVER disclose how much you want to spend a month. Most important is the final price. That's the baseline. If you do not k ow or have the baseline price. You are in BIG trouble! You need to know your own numbers and calculations. There are apps, for car loans and more.
I've stopped buying from dealers and just cash flow privately...my only negotiation is taking it to my mechanic. Dealer lobbying has killed it for me...hell, Texas is even trying to stop Tesla from working on their own vehicles because of the auto lobby down here crying that Tesla sells direct. I pray for the day that customers will be able to buy direct from the manufacturer.
I hate when car dealers talk in down payments and monthly payments. It is an easy way to confuse most customers and hide the bad details of the deal. Could lease an S class for $50 bucks a month with enough money down...
banks offer 10 year loans on ferraris and lamborghinis etc....i could afford that payment if i want to give up eating
are taxes and fees obligatory to pay in that moment before signing?
If you can't afford to pay for the car in full, you need to buy a less expensive vehicle. Never finance a vehicle always pay cash.
Or spend - 32% of your gross income on a car
@Roscoe Dogg anti businesses asshole
@@coopsnz1 ...people will spend a entire years salary on a car because the they can afford the payments over 5-7 years...i was one of those fools ..that is how you stay BROKE...if you make say 40k a year ..you should be driving a 5k at the most..
If you can afford to pay in full, finance anyway and invest that cash in ETFs. If you have good credit you'll beat the interest.
@@workingshlub8861 20k bro
A down payment is not a scam but you always need to look at dealer fees. Dealer salesman always want you to focus on the monthly payments and that how they cover up what you're actually paying for your car. If you're buying a car make sure your getting the vehicle at a good price, calculate taxes, title and then plug that into a car loan calculator. Also always negotiate your interest rate. Some financing companies let the dealer raise your interest rate and so that they can earn revenue over the lifespan of your loan.
I'm more lost now than before i watched this that being said I agree with Alan Smith on being pre-approved prior to shopping for a car know your financial limits and hold fast if you've got good credit you should have no problems buying a car now if your a person who can afford to purchase a new vehicle (or a person who doesn't care that your throwing a few thousand bucks out the widow of a new car as you drive it home then go for it I myself have never bought a brand new vehicle and I never will I can't see paying that price for something that I'm not keeping past 7 years (the longest I've ever owed a car)
I focus on total cost and interest rate since I know my credit is good.
Why did my down go towards paying my interest and addons rather than ofsetting my purchase price?
LISTEN UP FOLKS.....0% financing for 72 months is ALWAYS available if you have over a 725 or so credit score.
The dealer won't tell you that but it is......insist on it!
The higher the finance rate you agree to the more money the dealer makes!!
Is this through a credit union or how would you recommend finding 0% financing at any given time?
@@willjacobs4101
Most dealers promote it for the big holiday sales, Memorial Day Sale, 4th of July Sale, Labor Day Sale ect.......
But.......you can ask for it at any time from any dealer, some will yell you it's not available or they will refuse to do it.
that's literally not how any of this works
@@raymonheyer1801
How about a explanation?
100% incorrect
Note : Never walk into a dealership with out a loan calculator set on your phone. Simple math always works. Never Finance with a dealers office. Always take a few days to just list your car yourself to see what your missing. Always pay taxes down unless your trade compensation helps. See the numbers and bottom line. Ask for a printout of the numbers every time something changes.
I never put a down payment. In the time the salesman is wasting coming up with what he’s going to say is a great deal. I’ve already added up everything with interest and taxes. So I will ask to give me the breakdown of why they are so far off from where I am. That’s usually when I get the “sales manager” coming up to see how much I’m looking to pay and I’ll say the most ridiculous lowball offer I can think of till they give me what I actually wanted. If not I have no time leaving. You can usually tell the guys that just want the sale because they are always acting like they did you a favor giving you a ridiculous price where you’re paying $40k over 60 months for a $25k car. Those people I’ll fuck with and say yes sounds like a deal and when they want me to fill out the paperwork for the credit check I say sorry I changed my mind and walk out. I’ve literally watched those guys almost lose their jobs because they’re about to curse me out. Well I wouldn’t have wasted your time if you didn’t waste mine.
You are a peter puller. Congrats!!
Do you wash your moms ham wallet with that mouth?
Savage
Beautiful!
God Bless you sir! You RAWK!
And that my friends is how you ROLL!
Can you imagine a carlot full of cars, seems like a long time ago even though it was only 3 years ago
"We'll finance anyone, even you"
I have zero respect for the car sales industry where they'll take advantage of a naïve customer with outright lies and bullshit.
If you have good credit just make them a lowball offer cause they won’t hesitate to hiball you cause there ppl that will take the first offer they give them don’t be scared to lowball and walk out of the dealership and try another place trust me they will call you back! If you have bad credit then you out of luck there’s not much negotiation to do it’s either take it at this price or go home empty handed and trust me theres way more ppl with bad credit than ppl with good credit
Credit is for broke Dick's!
Obviously not a home owner
Owning a home is a liability. And if you have to finance something. You can't afford it, nor do you really own it. I own rental property, for now anyway. I most certainly do not own my own home, and may never do so. I finance nothing anymore. And haven't in well over a decade. And I have no credit cards either. I have debit cards, which accomplish the same thing, without accruing any interest, ever. I don't play their game. I play my game, my way, and I win this way. Not them. I buy all my property cash. And funnily enough. Only rent to people with good credit. Because I know they're worried about it. So they'll definitely pay me. I don't have those problems. You can't screw with me that way. I'll pay you because I think it's fair to, not because I'm concerned about my credit rating. No one's got me by the Cajones like that, EVER!
You all really need to learn how to use your money properly. You all think that rich people have good credit? 😂 😂 😂
There's lots of videos on here that explain these things. You all should really start watching them. Or you'll never truly be independent. You all say I don't own my own home. What's funny is that you're all the ones that don't own your own home, like you think you do. The bank does. And if you can't pay the taxes before, or after you've paid it off. You won't own it then either. You're under the delusion you own it. You really own nothing. Even in a state with no property taxes. They can still take it from you other ways, if they want to. Liens, eminent domain, etc. All you've done is put yourself in debt. Just like they want you to. Good luck with all that.
@@amb3cog
You own rental property but lease a house?????
In my county (PA), the sales tax on a lease is 9% of the monthly lease payment, where state tax is only 6%. What a racket.
How do we know if they are scooping the rebates for themselves? Is there a way to figure it out?
Go to your union credit ask for car loan once you r approve walk in to the dealer like you have money because you do from the bank.never tell dealer what do you want to pay monthly.
Should a downpayment be deducted from the price before or after the sales taxes?
If you’re buying a car or leasing always negotiate on the price of the vehicle first. Don’t mention anything about leasing or financing, when they ask say you’re not sure, you may be paying cash. Never mention you have a trade. Once you have agreed on the price of the vehicle then take the next step. If leasing have payments run off the negotiated sales price, use a lease calculator to check their math. If financing obtain your financing outside the dealership, if they can beat the rate fine, just be sure to use a calculator to verify base payment is accurate. If you’re trading in be sure to negotiate only after you have negotiated the sales price of the vehicle you’re purchasing.
After listening to u i dont wanna buy car at dealership 😢.. I would rather buy tesla on online portal
Tesla's customer service lately is terrible. They send out people used cars when they buy new ones then tell them they need to buy another one and wait months for the refund on the first one that Tesla tried to pawn off on them.
Tesla cars should be less then 50k for their top model. It’s ridiculous how overpriced they are.
So after hours of haggling, i got a quote for $710/mo for no money down OR $615/mo with $3000 down. It looks like I would pay $95 less per month.
$710 x 36 = 25560
$615 x 36 + 3000 = 25140
That's $420 difference. $420/36 = $11.67. I'd actually save $11.67/mo. Yes, a penny save is a penny earn, only if nothing would go wrong. If something goes wrong and the car is total in an accident after a couple months, the $3000 is gone. Money down is not worth on leasing unless you are trading in your junk car because you dont want to deal with crazy people when selling your junk car to a private party.
I've never put down any down payments.
I go through my own bank
Never paid more than 2% APR
I always negotiate lowest car price possible in the month of April last Monday.
Only go for 48 months term
Tony Bossone whats your credit score
Unlike a lot of states the state of Texas does charge full sales tax on a leased vehicle up front and if you decide to purchase the vehicle at end of lease do not terminate it at dealership or you will be paying the sales tax on the remaining amount you are purchasing the vehicle for. The dealership will sell the car to you as a used vehicle and to the state of Texas it will look like a new sell thus why you pay the sales tax again. Always purchase vehicle from leasing company directly, so you don’t have to pay sales tax again.
You give awesome information.... but you never state the best way to counter things that may be happening as people are sitting at a table doing a car deal. I think it would be most beneficial if you said.... so your local dealer is saying this or doing that... here is what you the consumer need to do when “This” happens
He wants you to pay for it? Didn’t you hear the beginning. He’s selling you on how to pay him on buying a car. If you notice most RUclipsrs that can’t make enough money on content only want you to pay them.
He doesn't give ANY information bro. Pay attention!
If I ever buy and partially finance a car I'm not going to let them know how much down until I get the price of the car I want. My mistake was proving I had the money in the bank. They took my down-payment and added to the baseline cost of the vehicle over the advertised baseline price. ILLEGAL. I didn't do my homework so stupid of me. I got scammed big time.
so take em to court if its illegal ffs why are you complaining on a yt vid
@ilyarepin7750 it's illegal I figured out what they did and can prove it by the paperwor. They added my down-payment minus 5 dollars to the amount financed plus added on the extras. Which brought the cost to twice the cost that needed to be financed. I've contacted the state AG's office.
My finance manager when i first started in the car business told me "down IS gross (profit)" Glad you explained this.
Down payment is GROSS profit?? In what world? Money down is just that; part of the payment, a committment on the buyer's part.
My dealer was straight with me and my C8 was built and delivered as soon as possible against events they had no power to influence. Money Down was to secure the deal and mine was applied to the purchase of my C8 and I paid list price! $67,885.00. I had my own financing so it wasn’t to buy a payment with the down payment. It was to buy equity in a future delivery. No trade in left no place for a dealership manager to play with my out of pocket cost.
You're talking way over most folks heads here. Always and I mean ALWAYS go into any car buying situation with a preapproved loan. Also, never allow yourself to be in a situation where you NEED to leave in said car. Also take a copy of the NADA printout of what your trade is valued at. Dont take one dime less than that. If you do put down cash, make sure that take this off the negotiated price of the car, not after tax, title, and licensing fees are added. If they day no, walk away. Also, never let them know you're preapproved or they will freeze on coming down on the price. Buying a car is fun for me.
Favorite used car trick.
So a salesman says that an old lady original owner just traded it in.
But you turn on the radio. Then notice that the presets are all the rock and Heavy Metal stations!!!!
If you are going to finance a vehicle...never give a down payment...that down payment disappears during the paperwork process..you should never finance a depreciating asset anyways...save your 💰..and buy cash...it's just a vehicle
eddie rivera so then why finance all that paperwork with interest ? Pay it off on the spot and only finance the price of the vehicle
@@guillermozavala315 exactly what I said bro...get the otd price right away...if financing is the only option for you then get a pre approval from your bank or credit union which is preferred...down payments get erased during paperwork...if you give a down payment of say 3000 bux the dealer just made that money PLUS the typical 4000 dollar profit they make per vehicle..save you r money buy a cash car...they got me once when I was younger..never again..and also..never pay a transportation fee if the car you are trying to buy is ALREADY on the lot
eddie rivera my credit is bad and need a vehicle. I plan on putting 15 grand down on a 40,000 dollar car. What should I do?? What should us people with bad credit do?
eddie rivera I have money. I make 6 figures. My credit is shot from the past.
As a car salesman myself please explain how down payments disappears cause I'm calling BS on that. If you're saying i shouldn't finance a depreciating asset then what about cars that appreciate or hold resale value? Buy cash? Not everyone has that much cash on hand. It's just car? Yeah it's just a car but it's better than a bus pass, walking, or ride share.
Down Payment could be money down the drain. Say a person puts $3,000 down payment. Later on, the car gets totaled, and insurance just happens to pay what is owed on it. To get another car and the same payments, the person has to come up with ANOTHER $3,000. The credit union my Wife uses will go up (I believe) 110% of sticker. GAP insurance is cheap, and will pay the difference between what is owed and what the insurance pays. My Wife finances total purchase price. She only pays tax, title, and any State required fees.
That very thing happened to me once 3 months after I bought a used vehicle .. I put down 5k and list 5k insurance only paid off the remainder of the loan not the loan AND my down payment
They have insurance.for that that ylu can add.into your payment.I have it on.my Mercedes
MEH, Negotiate the Drive out price of the Vehicle before even mentioning what you want your payment to be or the amount down. After that it does NOT matter what your down payment is pending you have the income / Credit History to support whatever you are buying.
If you are one of those people trying to buy a $,50,000 car, but you only have roughly $2500 to put down then you/re probably a fool about to get shit on by the dealer anyway.
Everyone needs a car and EVERYONE IS WORTHY OF RESPECT...
@@bs4real that has zero to do with buying a car you can’t afford.