Watch This Before You Finance Your Next Car (Former Dealer Explains How to Read a Purchase Contract)
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- Опубликовано: 31 май 2024
- Stay connected with Ray and I here: / shefska & / rasisjaz
Vehicle purchase contracts can be intimidating to say the lease. Today Ray and Zach go line by line and breakdown everything you need to know about a vehicle purchase contract and how to properly read one at the dealership.
If you like this video, please let us know in the comments below! 
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Happy Monday! Did you enjoy this video? Would you like to see more "technical" videos like this? Please let us know and we'll make it happen. - Ray & Zach
Excellent video. Maybe review an extended auto service and/or warranty contract and highlight the "gotchas" that the consumer needs to watch.
You Guy's Rock!🙋♀️❤🏃♀️. Definitely that's Awesome .
God dam never seen a video like this ever. This should be required viewing in highschool. This is what should have millions of views not stupid cat videos.
Yes taxes would be nice to know instead of just guessing. We need an app for that!!
🙋♀️❤🏃♀️Ray, it's so Sweet of you to offer an extended hand & support your fan's during their car purchase.
Thank you ❤😊😇❤
Been following for a few weeks now. Enjoying your content and banter with each other as well. Keep them coming. 🤘
Great video. Best breakdown of an automobile purchase contract I have viewed. This is useful.
I worked at two different new vehicle dealerships for about twenty years so what you guys are saying is nothing new to me. But the memories that I remember while watching your videos are absolutely priceless. Oh the experiences that happened, if I were to tell some of them no one would believe them.
What keeps me waiting to watch your videos is the way you two react to each other. Honest and real. Keep up the good work. 👍👍
We needed the document to be scrolled up sooner! Good job!
The best auto channel! Keep up the amazing job. 👍🏼
That's why I love you guys, Silver Spring Maryland that's where I'm from love it about to go back and visit from Pennsylvania. Been in the car Biz forever used to be a vendor for Jim Coleman, DARCARS Toyota, up and down Rockville Pike basically was my thing. Paintwork was my specialty scratches and all that other good stuff. Long time ago great content Mustangs that's what I grew up on
Very nice guys! Thanks for the video today!
If your still looking for beta testers, I would be more than happy to help. One thing you may want to also consider is if there is a registration transfer instead of a new registration, in my state, it's less expensive.
We needed this one. Thanks.
Thank you for the great content you share. I’d be interested in participating in beta testing for the app.
Love the videos, I'd be happy to help with testing the app if you need it!
Very helpful, thank you!
Hey Zach! , could you possibly do this w an In-state contract? Thanks ! Much love from Los Angeles!
So helpful thank you guys !
Our pleasure Nick Thanks for watching. Stay safe, Ray
@@CarEdge Love your videos. The question I have pertains to transportation costs. I special ordered a Chevy truck after building it on-line and should take delivery of it by late January, ‘21. The build paperwork shows a $1900 delivery/transpiration fee separate from the MSRP. Is that a legit fee?
I found your detailed review of an auto purchase loan agreement very interesting and helpful. Over the years I have always arranged my own financing through a credit union for an automobile purchase. I never would trust dealership personnel with the myriad of numbers put forth. Keeping loan numbers away and separate from the price negotiation helped to keep less "funny business" with pricing numbers from happening at least in my mind. Now I would not be as concerned of doing a dealership financing agreement. And it might help get a lower price on a vehicle.
Good for you!....while they say dealers give best rates I have not seen it that often....only peeps with top tier credit i have seen get that.....they do mark up interest rates for sure, so its always better to secure your own financing before hand.....when your pre approved they can't do anything but give you better rate, or give up finamcing...
Another way is if they gave you an incentive or rebate for financing thru them take the deal and refinance thru your own in next week or so....i have yet to hear or see in contract that stares you cannot refinance right away though many salesman will say you cant......if its not in writing it isn't true
I agree I am slow why is the positive equity added into the sale of the car? What is the purpose?
Thank you for another informative and useful video. Keep up the good work!
Since you mentioned the bright lights at the beginning of the video, I would like to suggest two cost-free ideas that will make it easier for you to see. I am well-acquainted with this problem as my eyes are quite sensitive to bright lights, yet I teach online all day to professional people who expect excellent quality video. How can you have excellent light that does not torture your eyes?:
( 1). I find it MUCH easier to see my monitor and the on-line participants, while also being able to look directly into the video camera by placing my main light (the "key light") at 45 degrees from my forward vision, and above my eye level This lights me well, but I can avoid looking directly into that light which would be painful for me. Then I place a couple of lights on the opposite side (the fill lights) which can be much less intense. The purpose of the fill lights are only to avoid sharp shadows caused by the first light, and to have a bit of light on my head, to better separate me (visually) from the background.
(2) Reflected light works particularly well, and is easier on the eyes. I position both my key light and my fill lights so they reflect off of a white walls behind and to the side of my monitor and desk. This not only softens the light, it also lights me and my desk evenly, so I can easily see my keyboard, reference materials, etc. Added benefit: Side and/or indirect lighting also avoids distracting reflections from glasses.
Bottom line: It is never necessary -- or even useful -- to have bright lights staring you in the face.
Thanks for the tips, I'll share with Zach.
Would be interesting to see a video on whether it's more advantageous for a person to lease or buy a vehicle depending on circumstances, for example if you don't drive very much or if there's certain advantages to one or the other that's not discussed often. I think this would be especially interesting since one of you is currently leasing and the other purchased and is paying off the purchase.
Leasing is most often always a bad idea....
By the way, you recently covered the four square method of selling. I went in to get my eyes tested and new glasses. I swear they were using the 4-square method on me, without any clear format to understand all the options, etc. So, I just asked for the prescription and left without buying glasses. Now I will compare other vendors.
Glasses are significantly cheaper online, especially if you do not have insurance!
Great content
Am I correct in thinking that the 3rd party recruiters/training for car salesmen are scams. Is so, what does that say about the dealerships that allow them to use the dealership name in ads and the dealership facilities to host the group for their pitch?
Ray, you probably should have covered yourself legally saying, "I'm not a lawyer nor do I play one on TV. I'm just a grumpy old dad."😁🤣😊
Are theses the out the door price? Or is the added onto the out the door price? Are these NEGOTIABLE or no? PLEASE RESPOND
A local Sacramento news station reported that May new car sales were up over one year ago. Does that mean it will be more difficult to get a good deal, if cars are selling well? Should I buy a new car sooner rather then later on?
Thank you!!!
other on the down payment could be a ballon payment say week later , some states you have to go to a state run title office . pay tax title plates , best states give you a sales tax credit on the net price after the trade not in calif (
Do you have a video that addresses installment loan contracts that contain prepaid interest and or prepayment penalties
Is the interest payed on a leased vehicle tax deductible . Great video.
Regarding your statement about paying-off early, and therefore not being responsible for the listed finance charges....does the Rule of 78’s apply here?
I just read an Installment agreement. On the Prepayment area. It states ( If you pay early, you may be charged a minimum finance charge.)
The finance manager is saying that its if I pay off the vehicle on the first month only? Are these games or is he being truthful? I told him I'd like the option to pay off the vehicle in full if I decide to. Thank you Yaa...
I would love to test the app!
Thanks guys, that was great! Excellent video and something we can all review again prior to seeing a F&I guy. But, I do have a question: Let's assume I've already been to my Credit Union and secured a potential loan at "X" interest rate and I they've ran my credit and I know my score. But, I want to see if the dealership can beat that interest rate, do I have to fill out a loan application and have them run my credit all over again? Since I already have my score, can't they just give me an interest rate? And of course if I were lying to them, I wouldn't expect them to honor that rate; but of course I wouldn't lie. Thank you, you guys should be on television or something! 😁
Yes you will have to fill out a credit app....your credit was run thru your institution for your bank....each time a new lender is approached it is another "pull" on your credit......but good news is you already have a rate for them to beat or match....they jack up interest rates alot of times so fact you already have one covers you against that.....securing the financing first is better for consumer in all aspects....
Kirk Dunn - Okay thanks, just thought filling out one credit app at my Credit Union would suffice. I have high credit rating, so couldn’t I ask the F&I guy what their best interest rate is without doing another “pull” on my credit? And then if it’s better than my Credit Union, they could do the pull then.
What are your thoughts on offering $25,000 for a new Honda CRV touring four-wheel-drive?
Hey you guys look like ghosts, the lighting you had before was perfect. You threw your money away. 😂😂😂😂😂
I would totally use an app to figure out tax, title, etc. based on my state/city/county i live in.
Kathryn, thanks so much for watching and commenting! We're going to release an app that does exactly what you described later on this week. Is there any chance you would give it a test before it goes "live?" Can you send me an email so that I can share the link with you? zach (at) yourautoadvocate.com
Thanks in advance!
What's the app called?? I am in search off a new car and would love to use that app when I am in the dealer..
What would be the out the door price of this contract?
Not to be rude but I sent you images of my documents a few weeks ago and you said it was a great video idea. You said you would make a video on my documents and never did but used another persons documents instead.. I was looking forward to the analysis :/
If a customer was trading in 2 vehicles , in a state with 1 vehicle tax credit benefits , would it be reasonable to ask for the net trade total to be applied to the one vehicle and the “second” car to be traded in as something like1$ ?
From the dealers stance it doesn’t change how much they are paying for the customers cars... it just provides the customer more of a tax credit ...
But is that tax fraud ? I feel like misrepresentation of taxable values would be cheating the system, but I can also imagine there are a ton of people cooking the books to try and get some extra “ free “ money.
well I'm happy to find someone with morals like in the old days, question looking at the market today would you say is a good time to buy a car or at least a new car?
They covered that in earlier videos.
Just depends.....check pricing out
Researching your vehicle like you would for something you really care about is so HUGE!.....spend time and effort to learn about it...know more than salesman!....you will be more confident and odds of you getting better or best deal are so much better...( bought 2 new trucks in 7 mo timeframe).....if someone said ill give you 2k, 3k or 4,5, 6k for cpl hours work or even a day would you do it?....
@@vancejochim1439 first video I have seen, so I did not know
@@kirkdunn1379 thanks
I’ve been shopping for a 2017/18 RAV4 Limited or SE in Florida using auto trader, Edmond, cars.com the regulars. I contact the dealership by a email and every single time the car has been sold it .Seems like bait and switch to get you into a different car. Any thoughts? Thanks for providing a entertaining, informative channel
Tony my thoughts are similar to yours, they are just using those low prices to get you to come into the store to try to sell you something else that hasn't already "sold". Stay safe, Ray
What about early payoff penalties?
Since this paperwork is SO convoluted, is there a problem with my insisting on taking it home to review it, or threaten to walk away? Thanks
You can walk away at anytime before you sign....tell them you want to review it and give you 10-15 minutes....it shouldn't take alot of time because you should already know most of it during discussions....but take notes and read it carefully......sell price, trade price, rebates, and any bs fees other than TTL...
Bring paper, pen and calculator to any car deal.....while your waiting for them to go in and out of room start your process
I want to test your app! I'm in Colorado and trying to buy a new car
Are the retail installment contract and the vehicle purchase agreement different documents? I purchased a vehicle and the copy I have is the "retail purchase agreement" which contains everything on the vehicle purchase agreement. I did finance the purchase, but I did not receive a copy of the retail installment contract. The titles of the documents are a bit confusing. From my understanding the retail installment contract should disclose the finance terms and the interest rates plus everything else that would be listed on the vehicle purchase agreement.
Deng the retail installment contract is different from the retail purchase agreement. The retail installment contract will breakdown your loan agreement, the term, the monthly payment, the interest charge the date of first payment and you should have gotten a copy of that. Stay safe, Ray
@@CarEdge ok. I didn’t get a copy of that. I do remember however that the interest rate I was shown was 8.8% and then later after two weeks once I received the finance account info I noticed the rate on the account was lower at 4.21%. Odd since I don’t remember signing the retail installment contract. 🤷🏾♂️
Im guessing that is a Mustang GT? Still, seems high for used, not that I am shopping for one or own one.
are there state taxes due when u purchase a vehicle..i live in a state taxes state.
Yes Tom, they are, which is why the dealership acts as an agent for the state and collects them as part of the transaction. Stay safe and thanks for watching, Ray
Noob question: Why does the "Total Sale Price" include the down payment? I get the other four boxes (APR, Finance Charge, Amount Financed, Total of Payments), they make sense. But I don't understand the purpose of the adding the Total of Payments + Down Payment to get a Total Sale Price. In my mind, the Down Payment is supposed to reduce the sale price, not be included with it. It's obviously important enough to be on a federally required form, I just don't get why.
So you know exactly what the total cost of the car is. Stay safe and thanks for watching, Ray
Has anyone ever tried to negotiate depreciation into a car price when in talks for a car deal?. For instance if you know a car depreciates 25% after year 1, could you try and negotiate a price 15% below MSRP to help yourself as a consumer?
Got 27% last august and 16% in april ( 20% was possible I just broke down and took easier route but that was my fault).timing is huge, and model....mine were trucks
I had friend in car industry and he always told me shoot for 20% min....they still make money....and you can find a dealer if your patient enough.....
But no depreciation wasn't part of discussion. Lok
What Broadway show would you like to see, when you come out?
I’ll beta-test that app.
Wait!!!!!!!!. If I buy out of state, the dealer can't charge me TT&L. So I cant be rip off ( dealer over charges all the time) because I be paying my state in person
You will have to pay TTL to register the vehicle....its where you live not where you buy....
If not at dealer out of state than in state when you go to register it
I'd love to beta test your app!
How many people actually weighed the value of wining and dining you guys to see if it would save them money in the finance. If I broke even or it even costs me $10- 20, I'd probably do it and claim it as an entertainment fee.
I’ll be glad to beta-test your app.
I would too!
I have been listening to you guys for a while now and found your information to be insightful and useful. But what kind of auto advocate brags repeatedly about being upside down on a Volvo? How would one keep others from making the same boneheaded mistakes.
Jeff Freestone Do you think he is proud of being upside down on the Volvo so he is boasting about it? That is a strange reading.
Can I beta test your app?
my finance guy didnt even go over this with me
Iowa dealerships are a mixed bag. Some are reasonable, some are wankers. But for the most part pretty good
I'd like to beta test your app!
I'll beta test it
I will beta test as well.
So wine is the secret.
Why do you put your face in the way at looking at form?
What about bringing your own financing, you skipped over that completely.
I’ll beta test for you.
Read your contracts, and don't let salesman or finance person try to rush you thru it....they always try to rush through when it comes to numbers....take your time and simply say "hold on I am not there yet".....
If you sign it you own it!.....its alot of money so read it carefully.....also shows them your careful and thorough....which can be helpful to you
i found your way of explaining it confusing.. its a simple form. price -/+ trade, fees. got it. just remember. if you pay more than your montly ticket price, the money comes off the principle. saving you lots of interested. and your car will be paid off sooner. i took a 72 month loan out. and it will be paid off . 15 months early . thanks for your channel. lots of good information
Still didn’t learn jack shit. I’ll leave it up to the lawyers this stuff is way too confusing
I’d totally be part of a beta test
Great idea. I can bring you up to NYC to accompany me, wine you and dine and expense it for tax deduction 😀
Same here to my state
beta testing ready here
Love the videos, I'd be happy to help with testing the app if you need it!