10 PRODUCTS: DO NOT BUY FROM CAR DEALERS: AUTO Expert Kevin Hunter 2023
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- Опубликовано: 26 май 2024
- CAR BUYERS ARE OFFERED THESE 10 PRODUCTS IN DEALER FINANCE, BUT SHOULD NEVER BUY THEM! If you don't know what they are, you can be easily burned by a Finance Officer who wants to force them on you.
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The Homework Guy Team publishes videos to help Car Buyers. We don’t hate Car Dealerships. Instead, we represent Car Buyers, a goal that’s often in direct conflict with Car Dealer goals.
A CAR DEALER WANTS TO:
1. SELL every car for the Highest Possible Price.
2. CONVINCE Car Buyers to use Dealer affiliated Lenders / Banks.
3. LOAD every Car Deal full of Fees and Finance Products.
4. OFFER Lowball numbers on every Trade Vehicle.
THE HOMEWORK GUY TEAM (THG) HELPS CAR BUYERS TO:
1. BUY a Car from Dealers or Private Party Sellers at the Lowest Price.
2. PAY Cash or Finance with their own Bank or Credit Union.
3. DECLINE Dealer Fees and Finance Products.
4. TRADE / SELL their current vehicle for the Best Value.
THG didn’t give Car Dealers their Bad Reputation. For more than 40 years, dealerships have EARNED it by being the masters of predatory selling. They stalk victims relentlessly, often ruthlessly treating the most vulnerable car buyers (like seniors, for example) with little or no conscience. Car Dealers and their Finance Officers have no problem creating financial devastation for their customers with over bloated car loans, and often do. While the business has had record setting profits, Dealers never stop telling Car Buyers “We’re losing money!” That’s the bed Car Dealers custom built for themselves. We point out the traps and the flaws of the process, and help car buyers get by all the nonsense without being ripped off. We promote fairness, honesty, and transparency, and we’d love to see a few dealers join our mission!
The Homework Guy Team provides car buying consumers with information, automotive news and updates, industry outlook, buying and selling advice, and other help to level the tables. The public face of THG is Kevin Hunter and the master negotiator, Elizabeth. Tons of time and research goes into every show, planning for weeks, several projects always on the table, all with the goal of getting it exactly right. From Automotive News Updates to vehicle shopping advice and assistance, The Homework Guy Team is the best there is.
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11. Buying a Car out of state.
12. Taking Control of the Car Buying Process.
13. What to do if Scammed.
14. Illegal things Car Dealers can do.
15. Understanding Dealer Financing Tricks
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17. Reactions to Sales Training by Car Trainers.
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I found the ultimate anti-theft device! I bought a used car with a manual transmission! 😁
That only works in the US
At least you’ll know to look for a thief 40years plus. 😂
👏🏻👏🏻👏🏻👏🏻👏🏻👏🏻👏🏻😂🤣🤣🤣😁😆
Where did you find such a Jewel?
Bought new car, Wife comes home from grocery store after owning the car for two months. She is so apologetic because she saw a tiny dent on the passenger door. I sat there listening to her description of where she parked it, didn't see a car near it, etc. while my mind wandered back a few weeks. So, I said, " I think that might be the scratch I found on it a month ago." Yes, I survived, and finally got her to relax and realize that it WILL get spills inside and dents outside, as it's just a big piece of metal, rubber and glass/plastic that we leave outside. Reinforcing that idea and thought process whenever we discuss accidents, by always saying, "I don't care about the car, I can buy another car, as long as you and the kids are OK, I am happy!"
Exactly. Brand new cars will also inevitably have stone chips on their paint when driven at high speed on the highway.
"A boat looks great in the harbor, but that isn't where a boat belongs." Something my father (honored be his memory) told me about a thousand years ago. Yeah, that first ding stings a little. Then you get over it.
Thats cute and reassuring
So the dealership tries to up-sell you with theft protection when the real thieves are the dealerships themselves. Hmm, makes sense!
Yes they are protecting you from them.
Dealership wanted $30 a month for the ex-wife's gap insurance. Navy Federal gave us gap for $2 a month.
The only time I was sold gap insurance I had no idea what it was. I later found out it wasn't needed and that the dealership straight up conned me.
I've been using Navy Federal since 1984. GREAT to deal with!
I work for a car dealership and our GAP policy comes out to $15/month paid lump sum for a 3-4 year term.
GAP is 2% of the total amount financed or $300, which ever is higher. When that happens just ask the dealer to recalibrate the GAP cost based on that, and they will. GAP price is the same everywhere, but the coverage and loop holes vary greatly. We never get GAP through our insurance, ever. We only get at our local, trusted, reputable Honda dealer. They always charge us the state mandated cost, it pays the deductible (our insurance company charges the $500 deductible), and the go up to 150% of the depreciated value (our insurance company will only go up to 120%).
I always told them thanks, I don't need those extra add on.
They always ask why. These were all essential to keep your car to last a long long time and more protection.
I told them don't you want me to come back to buy another car from you sooner?
This usually kept them SHUT UP and wordless.
That's funny
Permission to use this incredible rebuttal lol
Short answer is no, since that wouldn't make them any money.
😂
So are the add ones keeping the car up an additional 1-2 yrs?
$420 floor mats. The exact same in the parts dept was $86.
Car payments are destroying the middle class. Don't be a fool!
You hit the nail on the head. Car Payments..... unreal. I think back over the last many years of my life. The moment I stopped creating debt.. decided to buy every vehicle I would own with CASH, not credit. Everything started to turn around financially. I paid off my credit cards and reduced it to one. I never use it for credit. If the card gets used at all, it's drawing on money I've already put on deposit against it. I don't care what the credit limit is... I'm only spending what I would have if the cash was sitting in my hand. Payments on debt, especially car payments, are just silly.
I buy my floor mats off E- Bay. Brand new OEM for way less than Stealerships offer. The car we have now came with winter rubber floor mats and summer carpeted mats. The Dealership left both pair in the car. They could have sold them to me separate but said they were already in the car as a trade in and left them in. .No, they were not in the contract as add ins. As a matter of fact, the sales man went through and told me NOT to buy any extras for my vehicle. That's why we have purchased 5 cars through them.
I just held firm on my last deal: "you can take them off for free, or I'll pay you what I would if I bought them on Amazon. OEM floor mats are $75 online, and I can wait 2 days for Prime." They wanted to charge me $200 for a $75 part that takes no time to install.
@@KevinHunter Everyone probably doesn't have your income. I have low income but saved during a time when I had higher income. Someday, I may not be able to pay cash. Everything is so expensive. I am paying cash this time around. Getting ripped off a bit though, I think.
More and more floor mats are just included with the car not even a line item on the sticker.
I had an experience when Mazda dealership told me that Nitrogen charge (550$) is a mandatory charge... Told them my "goodbye" same day
Whenever I get to the finance office I just say no to everything and the finance guy gets sooo pissed off.
YOU Should Be With US ALL!! Thank You 🙏😇🙏🤩😍🐻
Does the finance guy pressure you hard?
I remember my last car they tried to sell me the low jack and the window etching, I was like na thanks. The finance lady was like, but we already installed them, we'll have to take a loss on those. I was like, what? How's that my problem? Sucks for you I guess. Finance/closer people are my favorite part.
@@crxracer805 most do and try to use scare tactics like how new cars have all these new electronics and can get expensive if something breaks. They also look for your your reaction and if you look confident with your answers and stand firm, the more likely they'll leave you alone.
My brother's in law went in to buy a $30k Rav4 and walked out with a $45k loan. Smh.
Recently bought a used Honda for my daughter. Of course they wanted to sell me extended warranty, rust proofing, and paint protection. I declined, in as few words possible. He did ask/insist that I explain why. I calmly replied "I don't think I'll need them." Then came "You don't think you'll need an extended warranty?" "Right." "You don't think that you'll need rust protection?" "Right." That was about it. Be firm.
I swear, they should make watching your videos a requirement in school. This prepares me more for the real world than most things I learned in highschool.
Truer words have rarely if ever been spoken...
I would be happy if they just taught the basics, instead of the indoctrination into Socialism!
These are reasons they’re called stealerships.
My local Chrysler dealer told me Mopar spark plugs are the best in the world and highly recommended both Mopar branded leather cleaner and conditioner and windshield washer fluid. Said they were "specially formulated for my vehicle".
I told him my urine was specially formulated for his office. We both chuckled.
@@DHFlip18 That's funny :p
Never heard that one. Nice.
NAVRET B
Do not buy these FROM THE DEALER.
1) Paint & Fabric protection plan.
2) Roof rack.
3) Key insurance.
4) Bundled protection package (for wheels, windshield, dents, etc).
5) Gap insurance (get that through a different insurance company, if you have to have it).
6) Nitrogen to inflate your tires.
7) Theft protection system.
8) Rear-seat entertainment systems.
9) VIN window etching.
10) Service contract (extended warranty).
You got it. Thanks for outlining that!
Undercarriage coating/protection, service contract period. Having that $1,000 price with interest, ouch, and waiting all day in the service department for them to finish the work. Too many places offering a lube, rotate tires, oil & filter change in twenty minutes for $50.00 or less.
Re: item 2... On my last car, the dealership had some OEM parts on the car (wheel locks, cargo covers, floor mats) that I wanted, but that take no time to install. I just looked up "[make] OEM [item]," and got prices -- "you can take it off for free, or I can pay you what I'd pay Amazon. I can wait 2 days for Prime."
Once I hit "add to cart" the on the wheel locks (the first item I was negotiating), the salesman just went "OK, how much is Amazon charging for the cargo cover? $100? OK." Got that package down from over $600 to just about $220, and I didn't have to wait 2 days.
I paid the extended warranty 🙋♀️🤦♀️🤦♀️
I think it was 40$ a month. It was threw Mazda.
@@Jamielanoie
Did you have to use it at all?
I’m one of the idiots who became poor because of my ego. Took me getting older and more informed to realize it. Wish I had watched this 5 years ago
Same for me. Sucks
How much was the car you got ?
@@sassouusasoo3607 lol 30k plus the negative equity I moved over from my previous brand new car that also had negative equity 🤦♂️ I learned though…eventually
@@TheJESUS_Status lol Yikes !You live and you learn.
DEALERS HATE HIM: LEARN HIS SECRET THAT MAKES SALESMEN FURIOUS!
What's that?? Lying to the consumer. This guy is a complete moron. He's never worked in the business.
@@nistizrippin What's he saying that you makes you disagree??
@@nistizrippin gee, I'm guessing someone in here is a car salesman
nistizrippin
fuck all salesmans that’s why every time i take your car for a test drive i accidentally scratch the a door
Now I remember why I havn't bought a new car at a dealership since 1995.
I brought my car back to the dealer when it started making a pinging noise. they told me the engine was shot and they took the engine apart and I couldn't get it back, went back with a spare set of keys and took my car back. turned out to be the gas I was using
Having my transmission repaired cost me $1700 upfront but it’s saved me 52,000 the cost of a new Q 50
I'm convinced the reason why so few new cars are sold these days is because of the whole dealer experience - nobody wants to go through that again.
@@kibashisiyoto6771 So you're saying that most people lease the new cars instead of buy them?
Dan Shuman A lot do lease, but pre-owned (aka, used) cars let idiots buy the first couple years of depreciation for you.
The worst is the waiting game they play before you get to the finance office. They get you frustrated with the wait so you'll say yes to anything to get it over and done. I've gone to telling them that I've got important stuff to do and if they can't get me in and out with 30 minutes then I'll have to leave and come back next week. It's worked every time. Otherwise it becomes an average of 5 hours at the dealership.
Two tips/responses here:
1. If you want an extended warranty immediately, look online for the manufacturer's extended warranty on Google. Some dealers sell them online at the "wholesale" price. You can always bring a quote for the vehicle and ask your dealer to match the price. If they won't, buy from the online dealer.
2. The "paint protection film" shown in one clip on the video works very well and does protect your finish from chips. However, dealers often outsource the work and mark up the cost. Find your own installer instead.
Read your extended warranty before you buy it most of them don’t cover much.
78% of the earth's atmosphere is already Nitrogen.......so for that final 22% in your tires,
is very expensive
But the sales person will tell you that it's already been filled with Nitrogen at the factory and can't be deducted from the final price.
Nitrogen does help your tire life but the dealership charges $100-400 for someone to simply push a button on a machine. Paying more than $20-40 is too much
@@desertfox12345 No, but the dealership may already have done it in the shop when the car came in as part of the PDI process
Every dealer will "fill" with nitrogen for free. It's a hustle unless you race for NASCAR. The benefits for consumers is so minimal it's not even worth the time you have to wait while they do it. Oxygen which is removed does allow for pressure variance with temp and holds moisture, but like Mr. Garrison says- that's only 22% of the air elements. Just check your tire pressure once a month or when the outside temp greatly varies and you will be fine.
@@desertfox12345 No factory ever fills tyres on everyday vehicles with nitrogen. Perhaps Ferrari might, but not those that make the cars you and I purchase. It's just another lie. Call them out on it and refuse.
When I was younger, I got ripped off on car deals, and even one time when I was not so young. I fell for a number of the tactics explained in this video. Fortunately, the worst rip off was offset by the VW buyback program a few years ago. Since that time, I've learned to be a lot more mindful. Thanks for reminding me how stupid I used to be.
trick is just buy the base car no add on nothing - you can always buy them later
While window shopping on amazon.com I have seen battery operated seatback televisions that you simply tie to the back of the headrest with a thick cloth strap. That's another option.
Remember that part of your automobile insurance policy called comprehensive coverage will pay for windshield damage or damage to other parts of the car. Check what your comprehensive section of your auto insurance covers before you buy a fancy dealer "protection package"
I bought a new car somewhat recently. The finance guy insisted that I was getting a good deal by purchasing an extended warranty for $2000. I told him I wouldn't pay more than $500 for one. He dropped the price to $1800, then to $1500, before giving up.
The less you want something, the better your leverage.
I am 65, this is what i have always done. I take responsibility for myself.
Hubby & I went to the dealership for a new car, after many hours the salesman let us drive the car home and return it back to the dealership the next day to complete the deal. The car was beautiful, but I convinced hubby we really didn't need a new car. We returned the car the next day and the salesman was furious, I mean totally unhinged. His reaction simply cemented our decision. Wow what a horrible experience. Not sure if the salesman's behavior was a act or what. That was a few years ago. We are still driving the same car which is in excellent condition. No need to change.
The window etching scam has been around for a long time. Thieves probably are not going to try and sell your stolen car in one piece anyway. The car will be parted out.
What cop is even going to check VINs on glass to compare it to the VIN on the dash?
John Brentford I bought a car 15years ago and declined VIN etching even then. It was already on the car, so I got it anyway.
@@chrisdamico6719 I have never paid for it. All they have to do is get one sucker to pay $1000 for it when it cost them about a dollar to do it. So they don't mind if you turn it down.
Bought my car in cash a couple of days before new year's and had the cashier's check ready when I showed up. Thank you for the advice you've given me!
Thousands of dollars.... SAVED.
#7 reminds me of when I bought my car last year. Went to a dealership that had signs everywhere saying "we already give the best price so we don't negotiate." I negotiated anyway due to obvious lot damage and some blemishes and they took $1,500 off the sticker price. I headed to the finance office and was shown a similar price +$1,000. The $1000 being for a "mandatory" car protection service called DWOC(DOWC?) Which they described as being something police can scan to figure out the original owner if stolen.
I looked into it while in the office and learned its just some device they stick in the doors, but the selling point was the sticker on the window which is supposed to deter thieves. After being told several times they cant remove the charge I started to leave. Of course THEN they were willing to remove the charge.
(There was something else about if the car is stolen then the company will reimburse you for the cars value, but I trust that payout as much as I trust getting repairs done through the warranty they also tried selling me.)
The last two vehicles I bought I got the extended warranty & both times it paid for itself as soon as the manufacturer warranty expired - didn't pay a thing for several thousands of dollars worth of repairs.
I detailed cars for years at dealerships. Paint protection 'ceramic coatings' actually protect your paint very well, but dont get it from the dealership. Get a reputable detail shop to apply it for you.
Is it cheaper at detail shop?
@@tsmacks9 It's not.
@@swgforthefence gotcha
I am so glad, I almost purchased an overpriced roof rack, saved me money.
Short version: Never buy anything at a car dealership that you can by somewhere else or had no intention of buying before you went in..
Is gettin the oil changes added in your package a really bad idea? Just asking. To be able to drive in at any time get courts of oil for free and oil changes (depending on how many they give you) but is that purchase really that bad?
@@tsmacks9 Limits you to going to only them for oil changes. They will try to up sell you every time. Fine if you like your dealer but I wouldn't even consider it.
X-Man ok gotcha
My beautiful mom needs a car right now and by watching these videos I'll be at the negotiation table making sure she doesn't get ripped off from these dealers. Thank you sir.
You should buy wheel and tire insurance if you have expensive cars. I paid 1350 for 3 years of coverage and it was money well spent. Saved me $2000 in new tire replacements and $2500 for replacement rim due to cosmetic damage.
Dude your channel is helping so many people it's unbelievable. I hope you receive a reward for this stuff.
This is all great advice. A Financial Adviser once told me that most people get into money troubles in one of 3 ways:
1. They buy too much house
2. They buy too much car
3. They buy too much entertainment
They buy too much woman
@@chuckcurtin *_Any_* woman is too much woman :-)
My brother bought a new Honda Civic in 2012. He got the rustproofing and the undercoating. I opened the hood and showed him the places they missed as they probably got a young unskilled person to do it. I used to be that person at a Ford dealership. He told me they said it was invisible,lol. I told him that there are translucent and transparent products out there,but no invisible. I rubbed the bolt rust with finder and just red dust. 3 cans of green Rust Check and 1 can or red and he was ready to go
As a former F&I manager, you are right with one exception. GAP insurance should be purchased by almost everyone. Most people put very little down on the purchase which leaves them susceptible to a major financial hit if the car is totaled. As you said, you can buy GAP from your insurance agent.
No one should ever finance through a dealership. Credit union only.
That's not true if you're getting the manufacture subsidized financing... we pay 1.9% which isn't a normal rate, that's bought down by the manufacture.
What about capital one
Unless you are at some buy-here-pay-here, you cannot finance through a dealership. Dealers only proctor loans. They submit to the banks (e.g., CapOne, JP Morgan Chase, AmeriCredit), captive lenders (e.g., AHFC, Toyota Finance, GMAC), and to lending institutions (e.g., credit unions), and those entities are the ones who spit back out to them the rates. Dealerships do not set interest rates. And there is a high probability your credit union is member direct with your dealer. Our family shops at our trust, local Honda dealer and our bank is member direct through CUDL with them.
@@Artecus Excellent point.
No banks or CU out there would ever over 0% finance or anything under 2%.
You've saved money for me Kevin when I was looking to buy a used motorcycle from a dealership. I was able to see through the BS and kept myself from being talked into a buy I didn't think was fair. I walked away from a sour deal as a happy camper. Listen to this guy people, he knows what he's talking about.
In 2015 we bought a new Honda CR-V, after going thru the Finance Office and refusing any and all extras they had Window Etching already done on the car and a $195. mark-up for it. They insisted I had to pay for it since it's pre-installed on All of their new cars. It was the only Add-on in the Contract. They refused to credit it so we got up and started to leave. The salesman finally caught up to us as we were getting into our car and said they'd credit the amount. We finalized the deal after this. Great video with great advice👍🏾👏🏾👏🏾👏🏾
Thanks for sharing your experiences. It helps other buyers realize these issues happen every day, in every city, in every state where there's a car dealer. If you don't play tough with them, you'll always be paying to stuff you didn't want. Of course that stupid window etch was just an ADM (Additional Dealer Mark-up) product on the car, and they knew it. If you bought their excuse, you'd be paying the $195. Because you didn't, they decided to walk back the lie. Isn't that funny? It can't be done, it can't be removed, we do it on all our cars.... wait, you're leaving?... Hold on.. NEWS FLASH: it can be done, it can be removed, we won't force you to have it on your car. Such frauds, and they wonder why people don't trust them!
If a dealership ads something on to their vehicles, it's on them. Unless it is FACTORY , they shouldn't expect ANYONE to put up with that. I would walk on that too. I once had the dealership remove the AM/ FM radio from a new car because they wanted to charge me extra. It was already installed. I told them to eather remove it, or give it to me. The cheap bastards pulled it. That was in 1982. It was a brand new Ford too.
Yep...wasn't watching closely and purchased etched glass protection. Never needed it. Never used it, never will. They got me.
If a dealer tries to sell you an extended service plan, tell them you had one once before, and you'll never do that again. That should shut them up since they know you know how worthless they are.
When I bought my current Honda, the finance guy tried to sell me an extended warranty for $3,500. I told him no and he dropped the price to $2,500. I refused and he dropped the subject. After I took possession of the car, I got online and bought a Honda extended warranty from an East coast Honda dealer for about $1,000. It almost paid for itself by the time it expired at 125K miles, but not quite.
@@noremorse6898 The extended warranties are priced in such a way that unless you're just really unlucky and get a car that breaks all the time, you'd never spend the cost of the warranty in repairs. They obviously have done the math and don't like losing money. So they're really more like insurance policies in case the car is really bad. If you had 10 cars and 5 of them you had a warranty for and 5 of them you didn't, you'd probably spend less in repairs on the 5 without the warranty than the cost of the 5 warranties.
The you know you are getting a good deal the angrier the dealership staff gets.🤣
I don't know about most of your viewers, but I certainly appreciate the head/ego check. In the grand scheme of things, I know it's an added bonus to saving the Benjamin's. In fact, it might be the single most important fact in the whole vid. You've earned yourself a subscriber with this one!
I feel like a real idiot. I just brought a 2013 Toyota Prius for my second vehicle, and I allowed the finance person to add on a VIP plan and an extended warranty. The $3800 I put down as a down payment was eaten up by those warranties under the guise of a 1.99 percent interest rate. The total cost of these junk warranties, $5,000.00. Needless to say, I didn't sleep well that night. While reading over the paperwork, I realized what I had done and I was sick.
I went back the next day, spoke to the Sales Manager and cancelled the original car contract and paid cash. No Warranties!!!!Overall, I saved myself over $5,000 by doing so. Although the situation was rectified, I still feel very uneasy.
I wish I had found your channel a lot earlier. I just feel so stupid. Thank you for providing education on the car buying process.
Full Coverage Car Insurance, no need to be trapped into Dealership hidden unnecessary fees!!✔
Had a dealer try to push the rear seat entertainment package on my when i got my last car. Pity it was a Mazda MX5 and it does not have rear seats...
12:38 - 13:02 - this may be the best advice in the video. I cannot say how often I see young people wanting or driving nice cars like BMW's and MB's, especially when they are on the used car lot for a more affordable price after a lease has expired. These cars start at high prices for a reason such as high maintenance costs. I once told this to a young guy who wanted to buy a 3-year-old BMW 5 series, and he decided to not buy the car and got a more affordable new Honda Civic instead.
In Florida insurance companies have to pay for damaged windshield. You can buy road hazard protection from Discount Tires as long as your tires are in good condition.
Yeah, I got hosed with theft protection(Data-Dot) and the extended service plan when I bought my Dodge 2 years ago. Extra 2k total.......I did also get the spray in rhino liner for the bed they offered for 600 bucks, now that was definitely worth it! Thank you Kevin for all the info, if a bit late for me. But will use all this info on my next vehicle purchase from dealer.
There is no way you got hosed buying an extended service contract to cover mechanical, computer, and electronic breakdowns on a *Dodge.* You will begin using it shortly, since you have a Dodge. Is your deductible $100? For how many miles and years do you have it?
I would also suggest that you include the third brake light "Pulse" system in your next list. It's probably a 20 cent part, takes 10 minutes to install, and the dealership charges $500. It's just a simple circuit that flashes the third brake light.
I had a dealer tell me that by declining it I was putting my kids in danger. I nearly punched him. A different time a dealer tried to push it on me because it was already installed. Again, I declined it. The scam part literally wasn't worth the shop time to remove it so I ended up with the stupid thing for free.
Those things ought to be illegal. They're very distracting.
It's great, when you stand up, and say "I guess we're not having a meeting of the minds here. Thanks, but I think I'll be going", and you start walking out, and they call out to you "wait!"
Then you know you have won, and will get most, if not all, of the concessions you're looking for.
Those extended warranties bring out the strong scam trait in finance people. Many years ago, I had negotiated a deal on a car and we went to the finance office. After nearly all of the paperwork had been signed, the salesman lured me out of the office, leaving my wife to wrap up the paperwork. They closed on her fast; as we drove home, she told me that she had bought the extended warranty. That dealer (Andy Mohr, in case you are wondering) lost my business forever. You can shear a sheep many times, but you can only skin him once.
we were at a used dealership, no joke there was a fee for the owners vacation... it was like 500.00!!!
83 finance managers watched this video
And they probably all became violently sick afterwards. Their paycheck and commissions are dwindling. Hurray!!!
Great information. I work part-time for a new car dealer and I see what people buy and I personally see it as a waste of money. Paying ahead of time for maintenance such as oil changes etc, when you can do it yourself (like me) or take it to places that are much cheaper and most cars now require oil changes at 7,500 miles which does not pay off to buy a maintenance contract. and on top of that you are financing oil changes for the life of the loan instead of paying out of pocket when they are required. I could go on, but you have made very valid points and I hope more people see your videos. Not only does the dealer make more money on these add- ons, the person selling you these services make extra money selling these to the customer. There is nothing wrong for a dealer to make a fair profit, but fleecing the customer is another thing.
One thing most people don't know about car options is quite a few of them are contained inside the vehicle computer. As an example BMW charges hundreds of dollars for single button to roll windows down or up. A high end scanner can turn some features such as this on or off.
Thank you.
My daughter is getting ready to buy her first car...
PLEASE go with her!!!
@@bettysmith7045 he didn't
I've recently taken to watching a lot of your videos. I really love them. Thumbs up! One thing I am looking for though, all your videos seem to focus on after the negotiation has taken place. The time in the finance office and such. Several videos cover this. None, however, seem to cover the actual negotiation itself. I'm looking for pointers on getting the fair price to begin with before going in and making sure they don't take it away from me in the finance room. A quick and easy answer might be that there are tons of websites that tell values and fair market prices. Edmond, KBB, and NADA come to mind. Problem is, I have read that a lot of these sites gear their prices toward benefiting the dealership. Or are outright owned by car manufacturers. I guess what I'm looking for is a video on the actual negotiation process, and what is actually a fair price. Not what some website owned by car companies tells me is a fair price
Got it! I put it on the list. Thanks for your comments!
I have tire and wheel insurance. If I hit a curb and pop my tire TIRE is covered. If I crack the wheel, COVERED. If I scratch the wheels, COVERED. I scratch the wheels because I park extremely close to the curb. (Because of past experiences)
I go get my wheels redone every summer. I get an invoice for $1,000 to do all four wheels. I get a loaner usually for 4 days or more. On top of all that, I have a ZERO $ deductible.
And i paid $1,000 for that insurance. Im covered for 5 years.
But thats just me.
Ceramic coating is useful... but get it aftermarket
OEM roofbars (not "roofrack") have features that aftermarkets do not
Extended warranties can also be useful... see Doug De Muro's Range Rover, as an example. Again this is better purchased aftermarket
Good information to know. Thanks for doing this.
Just found your channel, love the car buying knowledge videos. Please keep up the great work
wow - I am and so is the wife wholly BLOWN away by this - we have looked at the old contract and we got hit by three of these things - woo - we are so much appreciative of your hard work putting this video together for everyone and you being so honest - THIS IS SO RARE THESE DAYS !!! We are about to purchase another car - but much, much wiser. Thank you - Kevin !!!
FREE Car Buying Help! Just send an Email to kevinthehomeworkguy@gmail.com or text your name to 701-441-3399. We will have your back.
1.Paint protection
2. Roof rack
3.key insurance
4. Protection packages
5. Gap insurance 6. Nitrogen in tires 7. Theft protection
8.reqr seat entertainment system
9. Window etching 10.service contract /extended warranty
Extended warranties; On a new purchase, the factory already has that.
Ask if it begins after the factory warranty expires. Nope, it doesn't.
Extended cover everything, except what happens to you.
I got the extended Bumper to bumper warranty... I am the kind of guy the runs a car until the tires fall off, and after 200k miles it has more then paid for itself... Now my dealership hates to see me coming because they now have to do over $1000 worth of work and all I pay is $100....
I wish we could see a before and after of the bill after doing all of this
Car (and RV) dealers are the only "legitimate" retailers who are trained to scam the client, and the law allows, and even encourages, it. Kevin Hunter and those like him provide an invaluable service, so long as you listen and follow their advise.
Good advice. In my opinion the cheapest way is to drive an old beater and only keep it up enough so that it is safe and reliable. The insurance is much cheaper because you only have to carry liability, there are no payments because the car is not worth much, and you don't have to worry about it because it is a beater and not worth much. Saves a ton of money. Also it doesn't depreciate. Also if something goes wrong and costs too much to fix just junk it and buy another beater.
My cousin sold new motorcycles the company was offering extended warranties. I won’t mention the company it was a Japanese motorcycle manufacturer. The warranty extended the original warranty by one year. The cost of the warranty to the buyer was $400.Your support that made me mad when I heard this. The cost of the warranty to the dealer was $30. The dealer made $370.. The dealership my cousin worked for often included the extended warranty at no cost to the buyer. Or would sell the warranty to the customer for half price/$200..
That was the intention of the manufacturer, rather than automatically increase the warranty by one year, they wanted to make it good dealer/customer relationship and allow the dealer to include the extended warranty for free or at a lower cost ..My cousin also said, since the motorcycles were Japanese, he did not know of a single claim against the extended warranty coverage. They just don’t break usually.Generally, anything that’s going to go wrong with the car/truck/motorcycle that is the manufacturers fault, usually happens within the first year of ownership
Absolutely correct. With electronics if it doesn't fail in the first 30 days it will function well beyond the warranty limits.
@@bff1316 well unless its my car lol. Had it for around a year and a half and then my engine light started coming on randomly. Obviously under warrranty so dealer took 3 separate occasions before they finally determined it was an electrical issue that randomly went bad haha.
Awesome video! Love how I can see you in the video.. to me it's a personal touch, like one on one. Thanks for the expert advice.
Brought a used lexus, they added on extended warranty , but the was still cover under orginal warranty, When I realize this a fought with them , including a loud talk at the dealership , they then returned 3000 dollars!
I was buying a two year old Camry. I am a member of a Credit Union which always have better % rates. So I fought for thr price I wanted and came to within $200. I then told him thats it, no add ons. The salesman then wrote down the price, tax, title and reg total on a piece of paper. We both signed it and he gave me a copy. The finance guy came out for my bank and income info and I said "no they are not relevant I'm using my crefit union". He left frustrated.
when it came time to sit in his office for docs he had added a $199 "Clear coat" charge. He said it was standard on all cars. I said BS it's a used car take it off or the deals off. He said it,s standard
.....I said I didn't agree to the extra $199 and pulled out the copy of the agreed upon total the salesman and I signed. The look on the finance guys face was priceless. He didn't make a single dime from extras off me and I walked out grinning ear to ear.
Thank you much. Very knowledgeable and useful info. Top notch!
On Star is no good.
Dealer in Florida had a few Silverado stolen
Thieves disabled the on Star system
It's been happening here in the DFW, recently.
It’s always funny when you turn down paint protection and they look at you like you just insulted their dying grandmother. Then they act like you’re the first person to ever say no.
Have to say I agree with his comments. Recently took my daughter so she could purchase her first new car. I let her watch a number of these videos so she knew what to expect. She did her homework on how much she could afford, what car/model she wanted, and she had already secured financing. After test driving her new car we went to sign the paperwork. As we expected, they tried to add all these things Kevin speaks to and she just said no. When it came to final cost, she noticed the price was $600 more than agreed to. We asked what the markup was and were told additional Dealer Prep. My daughter flatly said, well that's a none starter. We agreed to a price, so remove this or we'll go elsewhere. Salesman was shocked a young 20ish woman would give him push back and he attempted to "explain" how things were done. Eventually, we stood up and started to walk out when the salesman relented and she got the car for her price. Bottom line, do your research, know what your car if trading is worth Blue Book. Know what you want and are willing to pay. Finally, if you and the salesman agree to something extra like floor mats so you buy the car, have them write it at the bottom of the proposal that he takes back to the Dealership management. My daughter wanted Weaterseal mats and the dealership providing them at no cost for the sale was part of the negotiation. She had them write it at the bottom of the proposal so no one could try and add that cost back to her.
Facts!
(You have to wait till the end for them)
Thanks a lot we are in process of getting new vehicle, this information will help us.
I got scammed into buying an "extended" warranty on a Sonata from a used car dealership. Hyundai's warranty covers 2nd owners too until 60k miles which the dealer failed to inform me of. Fortunately I was able to get a refund for the warranty through my lien holder for nearly the full amount.
I financed my 2016 sonata for 16k usd back in 2018. My monthly payment is $350 but I've been paying it off faster and now owe $7k. I think this is the last newish car I buy. I have you and Scotty kilmer to thank for that.
I'm gonna drive this car until the transmission or engine fail. Then it's early 2000s manual transmission Japanese cars for me
For OEM parts that don't require any fancy installation, if I want one, I just tell them "you can take it off for free, or if I want it you can sell it to me for the price of Amazon. I can wait 2 days for Prime." On my last car that saved me a quick $400 (I wanted wheel locks, a cargo cover, and floor mats; they quoted me around $200 for each item, I paid $45 for the locks, $100 for the cover, and $75 for the mats, because that's what an Amazon search for "[make] OEM [item]" turned up for the cost).
For nitrogen fills, if you do want your tires filled with it, Costco will do a nitrogen conversion for ~$20 a tire if I recall.
I can't wait until I go get by next car. I'm going to put your advise to the test and anticipate getting the best possible deal. Thanks brother
Great vid! Good honesty - tough love. Dealers do not work in their customers’ best interest, they work in the best interest of their profit.
Thank you, and you are correct. During the sales process, you notice that the salesman and any managers you come in contact with will keep telling you "You'll be in good hands when you get to finance." They say it over and over again, or any sentence like that. The purpose is to get you to let your guard down. If you think the person on the other side of the desk is your friend, you stop paying attention to the details. That's exactly how many car buyers get stung!
2/27/20, Make a buck, Jason, that's why they're in business. Thinking everybody's out to rip you off is the wrong attitude; same as whatever it is you do, don't listen to those hacks bashing *profit/capitalism,* in the words of Sy Syms clothier: "an educated consumer is our best customer." The key to a good deal on a car or anything else is to strike a balance b/w want/need & you'll find the right thing @ the right price for what you do. That's it. I drive a 2015 Ford Taurus, purchased new, 4ca$h. The only thing I added on---from a trailer shop---was a receiver hitch.
I got a second hand Highlander from a friend but with just 1 key and a broken fob. The local Toyota dealer wanted $287.00 for a fob and &125.00 for a key, before programming. I was able to get 2 keys and a fob from Amazon for under $50, programming them myself.
When offered paint protection by a dealer, I asked what was wrong with the quality of the manufacturer's paint finish making additional protection necessary. He didn't like me after that.
"Saved!"
also service contracts, just say no, and watch the price come down!!!!!..
Yes, that happened to me. If someone wants it then be sure to refuse it at first and see what happens. Never agree to the first price that they offer for a service contract.
I love what you’ve got to say. I don’t know how these people can live with themselves. You have to develop nothing short of hubris to be able to take advantage of others and still sleep at night. It is morally corrupt. Thank you Kevin for ratting them out. Awesome.
I don't know about everyone else ...but my Mopar service contract paid for itself after my touch screen radio and navigation went out 2 different times. The free rental was nice too.
A big one that I've run into was the technology insurance. How if the computer breaks how expensive it is to have replaced.
Love your channel!! Exactly what I need looking to buy a car this summer and pay cash will be binge watching all your videos
Tip number 1: don't tell them you are paying cash until you have firm numbers in writing!
If you want a roofrack, that's great! Do it at REI, you'll get a good price, and the installation is super cheap. You'll also have someone who knows roof rack systems and can get you what you're looking for. Dealers mark shit up to an insane degree. Source: Used to work at REI.
I just bought a new truck yesterday and the only thing they offered was an extended warranty. As soon as I said "no thanks" he said "I never buy these things either". My next truck will most likely be from the same dealer.
Idk I have used the crap out of my wheel package on rims and tires too
12:38 Everytime I hear this, those "rich vs. poor" spending habits video segments and articles come to my mind.
In the finance office I listen carefully to their "great extensions/enhancements". I then ask them to read back the points. I then ask them to elaborate on some of the points. I then state 'No thank you.' to everything.
Kevin, while I greatly appreciate all you've taught the populace with your videos, watching your eyes reading the teleprompter takes away from any impression of genuine altruism. Food for thought.
I did not notice at all, I was busy listening and taking notes.
have a 01 expedition and i work on it myself drives just as good as a new vehicle.
Yea, we all used to be able to work on our OLD cars!!
bigkiwial I work also in my NEW cars, I have a Tacoma and I have performed every service on it since new and saved myself a lot of money and I always use the best materials, top notch filters, the best synthetic oil, etc. And My cost is a fraction of what the dealer charges.
BS lol
This video is priceless...Did my mistake on purchasing the "gold service protection' from AutoNation, pure scam! wish I had seen this before. Thank you again.
Explain from your point how it was scam?
The finance department make that 'meeting' with you for one and ONLY ONE reason, selling you stuff you don't need and let you get out with the highest interest rate you can achieve. When I went 3 months ago to buy my 2018 ACCORD, and said 'NO' to everything, he tore the papers he had on his desk with anger/temper..... May I ask you why is that if he is 'ONLY there for advice/protecting me?' His 'offers' included 'I can ditch making a down payment' and keep thousands of dollars I brought with me if I want to, I can 'finance for 72 months'. He said to make me feel 'he is there to make things easier for me' and 'great customer service'. Guess what? I listened to that piece of shittttt when I bought the 2016 Mazda, do you know what happened to my APR?? I got my Mazda on 13.5% APR and I was too ignorant/inexperienced/naive to sign that deal. Now, my new Honda is on 4% APR because I said NO THANK YOU to all of his 'offerings' and 'kind advice'.
@@tsmacks9 I wrote a long comment describing the scam about the protection plan and tire plan, but was for some reason deleted. I'll explain agin promise but I have to go work now, but in short, if you're buying a good mar make, like a Japanese, don't buy them!
Debo ahhh I see. Thank you for the story. Appreciate it
@@tsmacks9 ok, now I have a lunch break, let me explain in details. Scam to me means lying/deceiving deliberately and this is how I got scammed buying the "gold protection plan' on my 2016 Mazda 6 and how I know it was deliberate when I went again 3 months ago to buy my 2018 Honda Accord.
1- They say 'it covers your car from bumper to bumper'. Yes, they used the 'bumper to bumper' phrase in both incidents. Bumper to bumper means? Bumper to bumper car hits. However later on (after going in for my Mazda) they say 'oh no, we meant fixing anything inside your car from front bumper to back bumper' yet deliberately using a deceiving term.
2- NOTHING was covered in my entire 3 years by the 'gold protection plan' because it EVRYTHING is 'normal wear and tear' so no issues here. Ok, I get it, but they don't mention that clearly when they try and sell it to you. Plus, if you buy a good car make like Japanese (Honda, Mazda, Toyota) you don't need it, you entire car is in warranty for 20k miles and your engine/transmission for 70-100k miles or 7 years. In conclusion, you are paying $2000 for NOTHING. Guess what, let's imagine something breaks down, something.... it won't cost you $2000! Trust me!
3- Tire protection plan, PURE SCAM. The finance douchebag told me 'he got his 4 tires replaced the other day' ....lie to my face. Went there 4 times, each incident 'oh no it is not covered! it is only covered if the nail is on the side not on the base' some non0sense. Try Discount tires warranty.... NO QUESTIONS ASKED!! They replace your tires immediately!
Conclusion, my Mazda 6 price was 17,000. I ended up with 20,000 after buying their crap that I've never used. Tell NO to them trash human beings making a living by making innocent hard working people covered in debt and paying extra interests.
I once had a sales lady try to push an ext warranty on me. I said, "A $1500 premium to extend the warranty X extra years suggests to me that the car's long term reliability is pretty bad, so bad that the risk of incurring an expense, that massively exceeds that $1500 up front premium, is high enough to justify the premium. Basically you want me to buy very expensive insurance against the engine or transmission blowing up for 2 or 3 years after the warranty. If that's the case, I'm not interested in this car." That worked quite well.
Smart common sense . I learn a lot since my last car purchased with that low dirty Paul blanco used auto dealer.