Beware of word play from the dealership when they say they included all these extra things without increasing your MONTHLY payment. Your monthly payment doesn’t increase but the total amount you finance does and that’s way worse. Edit: sorry if I’m not replying, I can’t seem to view and comment back on any of the posted comments below.
@@johnnylooi2727they will either drop your apr rate to lower the amount you owe on interest by a little but keeping your monthly the same and they will add these add ons which can add up to almost 10k sometimes. So instead of paying what you thought was gonna be $30k for a vehicle they keep the monthly payment the same by lowering your apr but now your total amount financed is 40k.
@@johnnylooi2727I thought I replied to your comment but I don’t see it anymore. But anyway they will lower your APR lowering the amount of interest you owe but they increase the total amount financed. So let’s say instead of financing a car for $30k at 14%Apr now you have $40k to finance at 9%apr. with the add ons that you didn’t want to begin with. So if a bank approved you for $40k at 9% APR there is no reason they can’t approve you for $30k at 9% APR the dealership wants the add ons because they get a cut from that.
@@johnnylooi2727by switching the term of the loan so say if it was 30 months and they did that and moved it to 34 your payment may stay the same but amount you paid did increase
@@cuthipSure, but if the interest rate is lower and the payment is the same, but you're paying for longer, the principal must be higher. This means you're actually paying more regardless, even if you paid it all up-front.
All that stuff can actually be canceled since it’s a third party. Call the dealership get the number for the third party that provided these services call them and cancel it. They’ll either take that amount of the “add ons” off the total price or send you checks for each thing you cancel and you can apply that money towards the principal of the vehicle.
Depending on where you are, call either a Lawyer who will contact the Dealership, or your State/Prov regulator. Not all State/Proves have one so did some research. Either option will have a positive resolution for you very quickly. (One note I will say, if your credit isn't A+ and you have negative equity, from say an accident write-off with no GAP insurance, you may get a better approval while buying product as it can be used to "hide" negative equity with certain banks.)
When I recently bought a car the dealer already had that “anti theft device” worked into the price. I told the sales guy I don’t want it. He insisted that I had to take it because all of their new cars have it already installed. I said no. He talked to his manager and like magic it was gone.
That's a totally different thing. This is specifically about finance departments saying that banks will give you a better rate if you buy product. No they won't. Dealer add-ons sometimes can be removed, sometimes not depending on what it is they've added.
Dealership did this when I bought my wife’s car a couple years ago. We haggled and I got a pretty good price on the car. They said they were able to secure a better interest rate if we bought some sort of warranty. I said no, they dropped the payment, I said no, they then added a 2 year subscription to XM radio. I said no again and they dropped the payment again. Kinda wanted to see where it went, but finally caved and said okay. They drafted up the paperwork, sent me to some other person to deal with the financing. I noticed they dropped the price of the car to make room for the add ons. I didn’t want to pay for the add ons but didn’t want to keep arguing with them. So I said I changed my mind on the xm and warranty. They said okay, took them off and it dropped my monthly from 458 to 324 😂
Yup. Finance manager tried to pull this on me when I was buying my first car. They offered me a more favorable rate if I added in the extended warranty because the finance manager is “good friends with someone at the bank.” I signed the paper work and drove home. Next day, I was doing more research on if a bank can do that and guess what, they can’t. I even stopped into the bank who issued my loan and asked them and they said that the dealership can’t do that. I drove back to the dealership, demanded to see the finance manager to redraw the contract terms with the favorable rate and extended warranty removed. Finance manager was pissed when I called him a con man.
I don’t understand why some dealerships have to “go talk to my manager”. It’s the dumbest thing. I appreciate when the sales guy just does his job and I have a good price without all that back and forth
So they keep you around wasting your time long enough for you to get frustrated and cave in because you don’t want to go to another dealer and have to do this all over again.
I had to do that shit at my 2nd job. It was always "talk to my manager" which was just a shortcut for making me hate my life as I'd have to negotiate with the store manager and just act as a relay. I had to continually seek permission to do my fking job because I had zero visibility into the profitability of the sale and had to walk back out still basically uninformed. Beyond like a 10% discount from the top line, I couldn't do shit (and we regularly ran sales that were 12%-20% off) without talking to the manager. I still work sales in a different industry now, largely on a commission basis, but now I have control over all that pricing. The difference is the company has clued me in on the cost and customer pricing as well as my commission rate, so I can come to terms as needed to make a sale if I feel it benefits us. Likewise I can negotiate a bit with our vendors as well if the scale is right. Much less stressful too-- management only questions it if the margin is abnormally low. Also helps that the new job is far more about relationship-building than it is about maxing profits on every sale (we'll track our clients' direct spending but the office mostly uses that to figure out who gets extra swag without even asking).
Most likely yeah, but there are unique circumstances. I dropped out of college and accrued bad credit for years. Went back and got my bachelor, got a well paying job, but due to my history, the best I got was around 11% for a new used. Took the deal and I cashed out the car 4 months later.
I recently bought a used car from a Toyota dealer and the finance guy told me that he could only get me a lower interest rate if I opted into a warranty for the vehicle. The car was still under a factory warranty. Had I known this was illegal I would have reported them.
Lol. You should see the fucking payments I see people paying. It's wild. Coworkers wife bought a 90k jeep. Not even a good one, 1750 a month. So basically what she makes just for a car payment 90 month.
@@Pwn3540 '91 for me. I either pay it in full on the spot or cannot afford it. But do not tell them that though, they want to make the interest and have payments, they will jack up the price if you tell em up front.
They don't even have to do that. What they do is take you a couple hours down the business office hole and you get ready to sign and then you see the paint protection and theft device added on automatically. Now, do you just sign and take it? Or walk and waste hours of your time, only for the next guy to do the same thing to you? Fun!
And that’s why I don’t negotiate with the salesman. I negotiate with the sales manager directly. Walked out of a Chevy dealer because they refused to talk to me. Bought the same car at another Chevy dealer 2 hours later dealing with the manager. If you know your numbers and have good credit, cut the salesman out of the process
You'll be hard pressed to find a store that will do that but clearly you did which is great for you. I've worked in car sales for 3 1/2 years and have thought a lot about why it's structured the way it is. You have 2-3 managers who watch the numbers and make the call as to whether or not they can afford to discount x amount based on the current volume, gross profit, etc. If every salesperson was able to do that there would be a very real risk of losing lots of money. It's only like this because consumers have decided companies profiting off of selling cars is bad but a $3-5 cup of coffee that costs $0.30 is fine, that it's like that. At the end of the day, given the way things are, get your pre-approval, look at REAL market data (not KBB) and just educate yourself. Be reasonable with your offer and with what you can actually afford. Some people want to get mad because they want a $200 payment on a $45,000 vehicle with $1000 down and unfortunately....math is math.
The key to what you said is “be reasonable “ because of emotion people don’t stop and really think about the math and that’s how they end up in a bad car deal.
@@user-re7fm9mb7x Exactly. I am trying to show you a car with as many of the features you HAVE to have that fits the budget you tell me you're working with. When you think about it, buying a car is a lot like buying a pizza...just on a much bigger scale. You wouldn't expect to pay for a cheese pizza and get a supreme...but some people expect to get a fully loaded car for the price of the base model because dealerships use Monopoly money to buy their inventory... The vast majority of customers ARE reasonable honestly and if they're not, most of them are open to being shown how things actually do work. Just like with any customer/guest facing job, most people truly are nice to deal with. It's the 5-10% who gets all the attention.🤣
@@christopherfabian5888 your comment is misleading. Customers are the way they are because of shady dealings by dealers, not because they don’t want the company to make any money at all. It’s because they advertise one price but when it comes time to pay, that price has doubled with a bunch of nonsense “mandatory” fees you knew nothing about beforehand. It’s because they’ll illegally try to tie their garbage products to your interest rate
I learned two things when buying from a dealership. First thing is I immediately tell them we are talking out the door prices, I don’t care how put the numbers down to get the out the door price. Second thing is when the salesperson tells me they have to “talk to their manager” I tell them I want to talk to somebody that can make decisions.
A scammy dealership in VA got my dad with that. He went for an '07 Ford explorer for 7k, put down 2k, 220 a month for 2 years, not bad at all. Well a few months in, he was 2 weeks late on his bill because he thought he had already paid it. No warning, no late fee, just a letter saying they canceled the loan and he needs to bring the car back. He went to the dealership and they gave him a "wonderful" offer with a new loan, BUT he had to purchase an expensive warranty for the loan to be approved. Unfortunately, he agreed, and he's been paying 350 a month for 4 years, on a 7k car he owed 5k on. And oh, the warranty was only valid for vehicles with under 150k miles, he got the ford at 155k miles.
Gap is a little different. If your credit isnt the best, a bank can require that you have GAP as a way to protect them and you in case the vehicle is totaled. Stuff like paint protection, anti theft and nitro tires are dealership extra accessories
@@garrettevans6748 the last vehicle I bought the salesman told me in Pennsylvania that cannot require that you get GAP. It’s against the law here anyways. What it was is that they had to shell out $22k for my payoff, which I wasn’t upside down in, and I bought the cheapest 4x4 pickup truck on their lot. I just wanted to downsize. They were just trying to sweeten the deal for themselves.
I've been a sales guy. The interest cannot be tied to anything but the vehicle itself(and you). We would always offer things like extended warranty and gap. But the rate has to stay the same with or without. I think the term may he shortened if gap is not purchased, but am fuzzy on that so don't take it as gospel.
Hey Russ! Salesmen in NJ. Do a video on when the finance teams asks on a lease how you’d like to pay your tax / fees when they’re already included in a lease payment!
It's not. Even with bad credit you can get a loan for a $10k used car and the payment will be approx $300. If you think rent is under $1k you shouldn't be looking at new cars.
Years back I was buying 2 cars from a dealership and the finance guy was putting on the pressure. I told him to hand me the contract and his pen and proceded to cross out, void, scribbled and wrote obscenities then tore the papers into shreds, tossed them at him, and told my stunned wife we're outta here. The salesman caught us at the door and begged for 5 minutes. I saved $3500..
Gets a bit tricky. Dealerships in many states can hold on interest rates. For many dealerships this can be about 2%. So they can give you 9% if you get x x and y, or 11% if you get nothing. And there’s nothing illegal about it. The bank gives the dealership a “buy rate” and a consumer rate. So yes technically they can’t say the bank will give you this rate if you get all of this. But they can give you a slightly higher rate for any reason they want. 😊
@@safersephiroth943I’ve worked in dealerships and now work for an auto loan company. This is legal so long as they aren’t saying the bank is requiring you to buy the product to get the rate.
@@fortunekookie789 no, it’s not. You cannot tie an interest rate to additional product purchases. That’s illegal. Idk who told you that it is, but they lied. They legally can add percentage points to the bank provided loan, but they cannot legally discount the rate if you buy products from them.
In contrast my bank said "we'll approve it but you cannot charge for X, Y, Z" xyz being things the dealership did to the car that weren't required or asked for. Window etching, detail fee, freight charge, and some other things were all wiped off the bill. They said they would pay $700 for the warranty (which was $1500)... Ngl i am glad i had the warranty because it paid for itself multiple times (Built Ford Faulty). I was shocked the dealership OK'd it all. I was sure they would say "nah. You will need to choose another financer". They saved me about $2000 total. It was my first car purchase at a dealership and I didn't exactly know what I was doing at the time.
People! Just get pre approval from your own bank rather than relying on the dealer to get you financing. Trust me it will be lower interest in most cases
Saying the approval is only valid or the interest rate drops with products is very very illegal, However, quoting the payment with products and then giving the choice without is not, and it shows honesty,
Cool buddy go ahead and call whoever you want. Either pay that or get out of my office. That's exactly how this would go down to an experienced car sales person
You should always know your numbers when you go into a dealership. I use a credit union I've been using for decades. If the dealer can beat that interest rate I might bite...maybe. I did take a dealer finance once were I received a few thousand dollars off the price of the car after it had been negotiated. I then paid off the loan in three months. It cost me less than $150 to save a few thousand. Know your numbers! Know them and use it to your advantage. But never say you're paying cash. Look that one up on your own.
I do not know if that is the case in Canada but here we do have options when it comes to the interest rate. Bank approves for a rate range and you choose it. Sorry guys but businesses make money. If they give you a higher rate they take dealer reserve. If you so not get a product they choose to give a higher rate so they can make some money. When you get a product you save on interest because they get paid by the product. Sometimes the one with the product is not always the lowest rate either. I usually say Ill get products and ask to get the lowest rate and once I get it I negotiate on the warranty price. Id you are getting multiple products they tend to give the lowest rate.
The theft protection is pretty much standard on every car and no the dealership wont remove it before selling you the car, paint protection is a scam unless you have a Toyota ,lexus ir honda
Did not know this was illegal. I had a dealership try to pull it on me recently, and im pretty sure they claimed the bank required it. I had a better preapproval so i just told them to shove it. It was a pretty big fancy dealer desler too. Had other issues with them, so now im curious what itd take to report them.
If the dude actually didn’t know it was illegal and is completely innocent he should immediately look for a new job, he wouldn’t want to get tied up in the shady stuff he supposedly knows nothing about
So 😅 what if i got extras from the dealer purposely because they offered this lmfao 😂 "throw in a free lift and tires. Throw the bumpers I'm ordering and, warranty it" same price
I'd say that just offering that was illegal and report them. The shady dealers are nothing but scammers, period. No morals. No grit. No manhood. Just pure greed.
Never go to a standard car dealership. They will try to screw you out of every penny they can because that’s the only way they make money. I highly recommend carmax. The salesmen make flat commission so there is no up selling and trying to get you into something more expensive. I’ve bought three cars from them and the experience is great every time. They also have a great no questions asked return policy. Last time I bought from them I straight up asked if I could return the car if I just felt like it or decided I didn’t like the color. They said absolutely, no problem.
Even if they use the excuse that they didn't know and claimed their manager just told them to do it, you should still run out of there because that means the business is engaging in illegal practices and they're just pretending to behave themselves only because they got caught and they will continue to do it to every other person that walks through the door
I just get my own financing thru my credit union. Get the purchase order on the car you want and done. Sign some papers and never have to spend hours in there
It depends how it’s offered to you, the practice of selling insurance & products is actually core to the industry - they just have to match your personal lifestyle/usage of the vehicle. Paint protection and anti theft is universal so can always be applied. It just cannot be “tied” to the interest rate. However, it can be “bundled” as a package with a different interest rate/term length etc. Yes, I know that doesn’t make sense. It’s how the marketplace is designed. It’s not a bad design, but this video showcases the “Bad Actors” in the industry in a flagrant but easy to understand/entertaining way
im fighting my own defense against fiduciary group. after like 5 months of research and stepping thru smoke and mirrors, i finally see it. overall, did you do what you said youd do.. did you act in good faith. what does suitability mean to you..? then laid out x y z. tbd how it goes (to court or settle before)
Dang this happened to me but i told them to take it off just bc i didnt want it on my car so i didnt wanna pay the extra $1k they were charging for it lol
That kinda happened to me but different, they said the bank wouldn't even approve me without a drivetrain and motor warranty (used car). Nothung about different interest rates tho just straught up denial.
A better tip is not to finance through the dealer in the first place. Get an auto loan from a bank or credit union. Then when they try to get you to finance through them, you can tell them it’s being paid for up front. No need to apply for their shitty financing.
This is why I drove a 98 Chevy Tahoe for 23 years and put 340,000 miles on it ! The poor thing finally gave up , and i had to go to the dealership and get a good fuckln ' !
It’s honestly so fucked up I totaled my car and the gap insurance won’t pay out because the dealership added a 200 dollar anti theft onto my car but it’s not official so they don’t have it documented now I’m just fighting with them to get sum sort of documentation
![Roddy Ricch - 911 [Official Music Video]](http://i.ytimg.com/vi/5N3lAfydeWs/mqdefault.jpg)
Beware of word play from the dealership when they say they included all these extra things without increasing your MONTHLY payment. Your monthly payment doesn’t increase but the total amount you finance does and that’s way worse.
Edit: sorry if I’m not replying, I can’t seem to view and comment back on any of the posted comments below.
How does that work? Just curious
@@johnnylooi2727they will either drop your apr rate to lower the amount you owe on interest by a little but keeping your monthly the same and they will add these add ons which can add up to almost 10k sometimes. So instead of paying what you thought was gonna be $30k for a vehicle they keep the monthly payment the same by lowering your apr but now your total amount financed is 40k.
@@johnnylooi2727I thought I replied to your comment but I don’t see it anymore. But anyway they will lower your APR lowering the amount of interest you owe but they increase the total amount financed. So let’s say instead of financing a car for $30k at 14%Apr now you have $40k to finance at 9%apr. with the add ons that you didn’t want to begin with. So if a bank approved you for $40k at 9% APR there is no reason they can’t approve you for $30k at 9% APR the dealership wants the add ons because they get a cut from that.
@@johnnylooi2727by switching the term of the loan so say if it was 30 months and they did that and moved it to 34 your payment may stay the same but amount you paid did increase
@@johnnylooi2727 More months but same monthly. So they'll drop percent, do the add-ons then you pay 300 for 72 months instead of 300 for 60 months
Plot twist, the $700 a month 'discount' was for an 96 month loan term and you just got hung out to dry.
You can still save up money and pay the loan off. Like i got a 7 year loan and at the 5 year mark i justbpaid it all off.
You can just pay it back early no? If you have the discipline
@@cuthipSure, but if the interest rate is lower and the payment is the same, but you're paying for longer, the principal must be higher. This means you're actually paying more regardless, even if you paid it all up-front.
@@cuthipthats a scam salesmen tell you. If you have to stretch out a loan to 96 months you cant afford it. no one ever pays their loan early
Wish I knew this before I went to a dealership last month
Easy to fix just have a lawyer call them.
All that stuff can actually be canceled since it’s a third party. Call the dealership get the number for the third party that provided these services call them and cancel it. They’ll either take that amount of the “add ons” off the total price or send you checks for each thing you cancel and you can apply that money towards the principal of the vehicle.
Depending on where you are, call either a Lawyer who will contact the Dealership, or your State/Prov regulator. Not all State/Proves have one so did some research.
Either option will have a positive resolution for you very quickly.
(One note I will say, if your credit isn't A+ and you have negative equity, from say an accident write-off with no GAP insurance, you may get a better approval while buying product as it can be used to "hide" negative equity with certain banks.)
Same.
What happened?
When I recently bought a car the dealer already had that “anti theft device” worked into the price. I told the sales guy I don’t want it. He insisted that I had to take it because all of their new cars have it already installed. I said no. He talked to his manager and like magic it was gone.
That's a totally different thing. This is specifically about finance departments saying that banks will give you a better rate if you buy product. No they won't. Dealer add-ons sometimes can be removed, sometimes not depending on what it is they've added.
Check them, ask them how it's tied to obd2
@@christopherfabian5888 because in many cases they didn’t add anything on
Anytime a dealer goes out of business and Angel gets it's wings.
Dealership did this when I bought my wife’s car a couple years ago. We haggled and I got a pretty good price on the car. They said they were able to secure a better interest rate if we bought some sort of warranty. I said no, they dropped the payment, I said no, they then added a 2 year subscription to XM radio. I said no again and they dropped the payment again.
Kinda wanted to see where it went, but finally caved and said okay. They drafted up the paperwork, sent me to some other person to deal with the financing. I noticed they dropped the price of the car to make room for the add ons. I didn’t want to pay for the add ons but didn’t want to keep arguing with them. So I said I changed my mind on the xm and warranty. They said okay, took them off and it dropped my monthly from 458 to 324 😂
Yup. Finance manager tried to pull this on me when I was buying my first car. They offered me a more favorable rate if I added in the extended warranty because the finance manager is “good friends with someone at the bank.” I signed the paper work and drove home. Next day, I was doing more research on if a bank can do that and guess what, they can’t. I even stopped into the bank who issued my loan and asked them and they said that the dealership can’t do that. I drove back to the dealership, demanded to see the finance manager to redraw the contract terms with the favorable rate and extended warranty removed. Finance manager was pissed when I called him a con man.
I don’t understand why some dealerships have to “go talk to my manager”. It’s the dumbest thing. I appreciate when the sales guy just does his job and I have a good price without all that back and forth
They get commission
And are hoping you're a sucker
Go talk to my manager is code for
Walk out this door pretend I talk to someone
Then fix what I already knew I couldn't do
Or make the deal I already knew I could
So they keep you around wasting your time long enough for you to get frustrated and cave in because you don’t want to go to another dealer and have to do this all over again.
I had to do that shit at my 2nd job. It was always "talk to my manager" which was just a shortcut for making me hate my life as I'd have to negotiate with the store manager and just act as a relay. I had to continually seek permission to do my fking job because I had zero visibility into the profitability of the sale and had to walk back out still basically uninformed. Beyond like a 10% discount from the top line, I couldn't do shit (and we regularly ran sales that were 12%-20% off) without talking to the manager.
I still work sales in a different industry now, largely on a commission basis, but now I have control over all that pricing. The difference is the company has clued me in on the cost and customer pricing as well as my commission rate, so I can come to terms as needed to make a sale if I feel it benefits us. Likewise I can negotiate a bit with our vendors as well if the scale is right. Much less stressful too-- management only questions it if the margin is abnormally low. Also helps that the new job is far more about relationship-building than it is about maxing profits on every sale (we'll track our clients' direct spending but the office mostly uses that to figure out who gets extra swag without even asking).
Get an out the door price and do it by email. Get your financing lined up from your own bank ahead of time. Don't play their silly games.
Never knew about this, thanks man for looking out
If you are paying a 9% rate on a car, you cannot afford that fucking car.
Really depends on the age of the vehicle your financing. Sometimes you can’t afford to not have a car.
Most likely yeah, but there are unique circumstances. I dropped out of college and accrued bad credit for years. Went back and got my bachelor, got a well paying job, but due to my history, the best I got was around 11% for a new used. Took the deal and I cashed out the car 4 months later.
Good credit right now gets you a 9% lol
Bro wtf are you smoking
@@jakefarmon3745on low mileage used cars and big name brands like Toyota and Honda at extended terms
Looking in to buying a new car within the next month. These have been super helpful.
If you can handle a warranty. Get a Nissan.
Toyota, Honda, or Subaru. No other option
I recommend toyota or Honda or Lexus
Man, just throw paint protection in! After all it really is just a $20 bottle of meguairs hybrid ceramic wax.
The bank doesnt care about paint protection or anti theft
I recently bought a used car from a Toyota dealer and the finance guy told me that he could only get me a lower interest rate if I opted into a warranty for the vehicle.
The car was still under a factory warranty.
Had I known this was illegal I would have reported them.
A $700 a month payment is criminal
Literally just slightly above the national average these days.
Lol. You should see the fucking payments I see people paying. It's wild. Coworkers wife bought a 90k jeep. Not even a good one, 1750 a month. So basically what she makes just for a car payment 90 month.
When was the last time you financed a car? 1980?
@@Pwn3540$282/mo 7.9% interest for a 2016 camry. $700 a month is bullshit.
@@Pwn3540 '91 for me.
I either pay it in full on the spot or cannot afford it.
But do not tell them that though, they want to make the interest and have payments, they will jack up the price if you tell em up front.
They don't even have to do that. What they do is take you a couple hours down the business office hole and you get ready to sign and then you see the paint protection and theft device added on automatically. Now, do you just sign and take it? Or walk and waste hours of your time, only for the next guy to do the same thing to you? Fun!
And that’s why I don’t negotiate with the salesman. I negotiate with the sales manager directly. Walked out of a Chevy dealer because they refused to talk to me. Bought the same car at another Chevy dealer 2 hours later dealing with the manager. If you know your numbers and have good credit, cut the salesman out of the process
You'll be hard pressed to find a store that will do that but clearly you did which is great for you. I've worked in car sales for 3 1/2 years and have thought a lot about why it's structured the way it is.
You have 2-3 managers who watch the numbers and make the call as to whether or not they can afford to discount x amount based on the current volume, gross profit, etc. If every salesperson was able to do that there would be a very real risk of losing lots of money. It's only like this because consumers have decided companies profiting off of selling cars is bad but a $3-5 cup of coffee that costs $0.30 is fine, that it's like that.
At the end of the day, given the way things are, get your pre-approval, look at REAL market data (not KBB) and just educate yourself. Be reasonable with your offer and with what you can actually afford. Some people want to get mad because they want a $200 payment on a $45,000 vehicle with $1000 down and unfortunately....math is math.
The key to what you said is “be reasonable “ because of emotion people don’t stop and really think about the math and that’s how they end up in a bad car deal.
@@user-re7fm9mb7x Exactly. I am trying to show you a car with as many of the features you HAVE to have that fits the budget you tell me you're working with.
When you think about it, buying a car is a lot like buying a pizza...just on a much bigger scale. You wouldn't expect to pay for a cheese pizza and get a supreme...but some people expect to get a fully loaded car for the price of the base model because dealerships use Monopoly money to buy their inventory...
The vast majority of customers ARE reasonable honestly and if they're not, most of them are open to being shown how things actually do work. Just like with any customer/guest facing job, most people truly are nice to deal with. It's the 5-10% who gets all the attention.🤣
@@christopherfabian5888 your comment is misleading. Customers are the way they are because of shady dealings by dealers, not because they don’t want the company to make any money at all.
It’s because they advertise one price but when it comes time to pay, that price has doubled with a bunch of nonsense “mandatory” fees you knew nothing about beforehand.
It’s because they’ll illegally try to tie their garbage products to your interest rate
I learned two things when buying from a dealership. First thing is I immediately tell them we are talking out the door prices, I don’t care how put the numbers down to get the out the door price.
Second thing is when the salesperson tells me they have to “talk to their manager” I tell them I want to talk to somebody that can make decisions.
A scammy dealership in VA got my dad with that. He went for an '07 Ford explorer for 7k, put down 2k, 220 a month for 2 years, not bad at all. Well a few months in, he was 2 weeks late on his bill because he thought he had already paid it. No warning, no late fee, just a letter saying they canceled the loan and he needs to bring the car back. He went to the dealership and they gave him a "wonderful" offer with a new loan, BUT he had to purchase an expensive warranty for the loan to be approved. Unfortunately, he agreed, and he's been paying 350 a month for 4 years, on a 7k car he owed 5k on. And oh, the warranty was only valid for vehicles with under 150k miles, he got the ford at 155k miles.
Take him to a pro bono lawyer. One who gets paid if you win.
@@FluxApex I tried convincing him to, he says he will, but did nothing. He'll be done with the payments this December though.
Wow, I had a dealer do this to me with gap insurance. I did get a refund when I paid the load off, but they did not want to give me that $650 😂
Gap is a little different. If your credit isnt the best, a bank can require that you have GAP as a way to protect them and you in case the vehicle is totaled. Stuff like paint protection, anti theft and nitro tires are dealership extra accessories
@@garrettevans6748 the last vehicle I bought the salesman told me in Pennsylvania that cannot require that you get GAP. It’s against the law here anyways. What it was is that they had to shell out $22k for my payoff, which I wasn’t upside down in, and I bought the cheapest 4x4 pickup truck on their lot. I just wanted to downsize. They were just trying to sweeten the deal for themselves.
Dealers don't offer you approval A. Only approval B.
When they first start with the BS, get up and walk out. Don't look back. Don't ever return.
I actually really appreciate the prospective of the guy just doing what he's been told cause it really do be like that
Oooh, so you’re telling my my dealership did me dirty? They said they could do 14% apr unless I got the extended warranty then it would be 8%
Yes. Tied selling is illegal across all 50 states. If you have anything documented, you should report them.
I've been a sales guy. The interest cannot be tied to anything but the vehicle itself(and you). We would always offer things like extended warranty and gap. But the rate has to stay the same with or without. I think the term may he shortened if gap is not purchased, but am fuzzy on that so don't take it as gospel.
Hey Russ! Salesmen in NJ. Do a video on when the finance teams asks on a lease how you’d like to pay your tax / fees when they’re already included in a lease payment!
You people need to be watching Kevin Hunter the Homework Guy. He will teach you everything you need to know about purchasing a vehicle.
Jeep in elk grove CA
literally pulled this on me
Good thing I didn't fall for it
A car payment shouldn't be more than rent. 😂
Rent is 2,300 for a one bedroom in San Diego. Average payment is 500-1000 for cars
It's not. Even with bad credit you can get a loan for a $10k used car and the payment will be approx $300. If you think rent is under $1k you shouldn't be looking at new cars.
9% is way too high
Years back I was buying 2 cars from a dealership and the finance guy was putting on the pressure. I told him to hand me the contract and his pen and proceded to cross out, void, scribbled and wrote obscenities then tore the papers into shreds, tossed them at him, and told my stunned wife we're outta here. The salesman caught us at the door and begged for 5 minutes. I saved $3500..
Gets a bit tricky. Dealerships in many states can hold on interest rates. For many dealerships this can be about 2%. So they can give you 9% if you get x x and y, or 11% if you get nothing. And there’s nothing illegal about it. The bank gives the dealership a “buy rate” and a consumer rate. So yes technically they can’t say the bank will give you this rate if you get all of this. But they can give you a slightly higher rate for any reason they want. 😊
That’s when you walk into the dealership down the road and give them the sale instead.
That is absolutely illegal.
@@ander12222They’re doing the same thing
@@safersephiroth943I’ve worked in dealerships and now work for an auto loan company. This is legal so long as they aren’t saying the bank is requiring you to buy the product to get the rate.
@@fortunekookie789 no, it’s not. You cannot tie an interest rate to additional product purchases. That’s illegal. Idk who told you that it is, but they lied. They legally can add percentage points to the bank provided loan, but they cannot legally discount the rate if you buy products from them.
In contrast my bank said "we'll approve it but you cannot charge for X, Y, Z" xyz being things the dealership did to the car that weren't required or asked for. Window etching, detail fee, freight charge, and some other things were all wiped off the bill. They said they would pay $700 for the warranty (which was $1500)... Ngl i am glad i had the warranty because it paid for itself multiple times (Built Ford Faulty). I was shocked the dealership OK'd it all. I was sure they would say "nah. You will need to choose another financer". They saved me about $2000 total. It was my first car purchase at a dealership and I didn't exactly know what I was doing at the time.
Now every customer for the past two years is going to have a huge class action lawsuit
People! Just get pre approval from your own bank rather than relying on the dealer to get you financing. Trust me it will be lower interest in most cases
I brought this up a while ago on an older video, thanks for letting people know
Saying the approval is only valid or the interest rate drops with products is very very illegal,
However, quoting the payment with products and then giving the choice without is not, and it shows honesty,
Never buy a car from a dealership
Dealership did this to me, not even the first payment and a deer runs out in front of me totaling it… So glad I got out of it
If someone said they didn’t know this or that about their job I’d just call them the pawn they are and go somewhere else
Ask to see the call sheet as well.
Love this entertaining GUY CAR DEALING ❤
Start saving for a quality used car now so you don’t have to deal with this bs
That crazy
It doesn’t matter he still a 9% interest
Demanding the paint protection for free at that point would actually be considered extortion which is also illegal.
Who'd accept a 9% loan on anything let alone a car. That's insane
Cool buddy go ahead and call whoever you want. Either pay that or get out of my office. That's exactly how this would go down to an experienced car sales person
I've never been fed that horseshit. I've broken sales managers.
Even easier way to avoid a scam, don't buy from a dealership!
Also, never finance
You know what else is illegal? Blackmailing.
You should always know your numbers when you go into a dealership. I use a credit union I've been using for decades. If the dealer can beat that interest rate I might bite...maybe.
I did take a dealer finance once were I received a few thousand dollars off the price of the car after it had been negotiated. I then paid off the loan in three months. It cost me less than $150 to save a few thousand.
Know your numbers! Know them and use it to your advantage. But never say you're paying cash. Look that one up on your own.
The monthly payment is the same, but the principal is probably double or more.
Bro 9% is still fucked go get pre approved at your bank
@@AncientRemost ? lmao…i know someone that got 2%
I do not know if that is the case in Canada but here we do have options when it comes to the interest rate. Bank approves for a rate range and you choose it. Sorry guys but businesses make money. If they give you a higher rate they take dealer reserve. If you so not get a product they choose to give a higher rate so they can make some money. When you get a product you save on interest because they get paid by the product. Sometimes the one with the product is not always the lowest rate either. I usually say Ill get products and ask to get the lowest rate and once I get it I negotiate on the warranty price. Id you are getting multiple products they tend to give the lowest rate.
You do a great job of playing the good cop as a sales person. Pretending you don’t know the scams
$700 a month? Buy 2 homes in Greece
Yesterday, a dealership said i could get a better apr from one of their banks of i get gap insurance. We walked out
The theft protection is pretty much standard on every car and no the dealership wont remove it before selling you the car, paint protection is a scam unless you have a Toyota ,lexus ir honda
Did not know this was illegal. I had a dealership try to pull it on me recently, and im pretty sure they claimed the bank required it. I had a better preapproval so i just told them to shove it. It was a pretty big fancy dealer desler too. Had other issues with them, so now im curious what itd take to report them.
Even better. Dont take out a loan to buy something with depreciating value
If the dude actually didn’t know it was illegal and is completely innocent he should immediately look for a new job, he wouldn’t want to get tied up in the shady stuff he supposedly knows nothing about
So 😅 what if i got extras from the dealer purposely because they offered this lmfao 😂 "throw in a free lift and tires. Throw the bumpers I'm ordering and, warranty it" same price
I'd say that just offering that was illegal and report them. The shady dealers are nothing but scammers, period. No morals. No grit. No manhood. Just pure greed.
It’s only anti - ting if there was another bank product attached to the loan….no a car product
I am terrified of this election year
Never go to a standard car dealership. They will try to screw you out of every penny they can because that’s the only way they make money.
I highly recommend carmax. The salesmen make flat commission so there is no up selling and trying to get you into something more expensive. I’ve bought three cars from them and the experience is great every time.
They also have a great no questions asked return policy. Last time I bought from them I straight up asked if I could return the car if I just felt like it or decided I didn’t like the color. They said absolutely, no problem.
Even if they use the excuse that they didn't know and claimed their manager just told them to do it, you should still run out of there because that means the business is engaging in illegal practices and they're just pretending to behave themselves only because they got caught and they will continue to do it to every other person that walks through the door
Never finance at the dealer.
Disagree - promotional APRs in this market give you every reason to finance at a dealership as long as you know exactly what you're doing.
Honestly, if they were doing something illegal I would report them. If you don't, you are sort of taking a bribe to ignore their criminal activity.
I just get my own financing thru my credit union. Get the purchase order on the car you want and done. Sign some papers and never have to spend hours in there
First step you did wrong buy a new car. Worst "investment" ever
You forgot about reading the contract afterwards. They like to go “ok we’ll take that off” and then add it to the contract anyways.
I will be sure and pass this along to my people.
Capital one does do this when you add backend and the amount financed goes over a certain amount.
I love how he does the same exact schtick when he acts like the buyer or seller; it's like he forgot how to talk without high pressure sales tactics 😅
It depends how it’s offered to you, the practice of selling insurance & products is actually core to the industry - they just have to match your personal lifestyle/usage of the vehicle. Paint protection and anti theft is universal so can always be applied. It just cannot be “tied” to the interest rate. However, it can be “bundled” as a package with a different interest rate/term length etc.
Yes, I know that doesn’t make sense. It’s how the marketplace is designed. It’s not a bad design, but this video showcases the “Bad Actors” in the industry in a flagrant but easy to understand/entertaining way
im fighting my own defense against fiduciary group.
after like 5 months of research and stepping thru smoke and mirrors, i finally see it.
overall, did you do what you said youd do.. did you act in good faith. what does suitability mean to you..?
then laid out x y z.
tbd how it goes (to court or settle before)
Wait, wait,Wait, you're telling me dealerships are doing something illegal and no one is doing anything about it?
They did that to me. Only the bank called and said no extended warranty. So I got the lower rate anyway
NEVER trust a car salesman. Period.
Need this for Canada/quebec
It’s always with the warranty, and they are careful with the wording
Don't buy cars at a dealership just do auctions or private party, get smart and know some stuff and you don't have to be ripped off
They got me on this one
Dang this happened to me but i told them to take it off just bc i didnt want it on my car so i didnt wanna pay the extra $1k they were charging for it lol
That kinda happened to me but different, they said the bank wouldn't even approve me without a drivetrain and motor warranty (used car). Nothung about different interest rates tho just straught up denial.
Dang that is good to know.
ridiculous fees but I got a fairly new durango R/T and with my down payment the loan is under 35k now
My grandfather isbthe lean holder on my car hes only charging me 4% interest which idm my payments a confortable 330 a month
Well that's why they install the products before they try to sell it to you
So he’s admitting to you on the comeback that you’re cheating customers????
I think they did this to me on my RV. Got a lower interest rate 5% for getting the extended warranty
“I didn’t even know that was illegal 👁️👄👁️”
If they say "a bank reached out to them", call them out.
A better tip is not to finance through the dealer in the first place.
Get an auto loan from a bank or credit union. Then when they try to get you to finance through them, you can tell them it’s being paid for up front. No need to apply for their shitty financing.
Yeah they pulled this shit on me
Imagine paying 9% interest on anything and thinking you got a deal lmfao
The real crime here is a 14% interest rate
This is why I drove a 98 Chevy Tahoe for 23 years and put 340,000 miles on it ! The poor thing finally gave up , and i had to go to the dealership and get a good fuckln ' !
It’s honestly so fucked up I totaled my car and the gap insurance won’t pay out because the dealership added a 200 dollar anti theft onto my car but it’s not official so they don’t have it documented now I’m just fighting with them to get sum sort of documentation