Secrets car dealers don't want you to know
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- Опубликовано: 6 июн 2024
- Everyone has a story to tell, but most never tell it -- until now. This is one man's confession. Meet Philip Reed, a senior editor for Edmunds.com. He worked undercover as a car salesman for three months, and he's now revealing the secrets that dealers don't want you to know.
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I always have fun when buying a car. I go in knowing what a car's price range is, never finance, never trade in, and learned the hard way, never give them the keys to your car regardless of what they say like let us wash it for you, it's in the way, etc. You are virtually kidnapped if you do that. I tell them what I will pay, then shut up. If they don't eventually hit my number, I walk.
Don't trade in a car at a dealer period!
They give like $1000 on a car worth around $4000 if you sell on Craigslist.
I wish more of the offices were "bugged". I don't know how many times I laid out exactly what I would pay for a car while "waiting in the office", either to my wife or pretending to be on the phone, figuring if the office were bugged they'd come back in and hit that mark. It has almost always still been a bit of a struggle.
What I heard was that the dealer will actually give you a pretty good value on trade in, but he can somewhat evade losing as much cash.
What's your strategy for determining the number you are willing to pay?
Test Channel pretty basic. research, and more research to determine values. The single biggest problem with car buyers is that they fall in love with a specific car. When that happens, all buying leverage is gone.
wanna save money, stay away from banks, and auto finance
lawyers, insurance , real estate brokers, and title companies
dont forget hospitals
Hospitals are for losers! I have like... 1 limb left.
None shall pass!!!
ok...
ardy texn how? america is all about that.. feeding the oligarchs the elite...and the government allowing it.
You forgot package stores. They are designed to get your money through visual stimulation in the aisles and music playing. Oh, and restaurants, same thing music, atmosphere and my gosh the price gouging. Seriously, I tell the waiter what I'm willing to pay and then stay silent.
That's high pressure sales anywhere. Sell or be fired. Look at Wells Fargo.
T Sav
What about Wells Fargo?
Massive fraud and huge fines for opening unauthorized accounts. Low paid employees with massive sales goals. Sell or be fired mentality.
9+Ryan Ehsan
+B ryan
Den iston
Tbh Fargo no longer has sales goals.
Next time the salesman leaves the wired cubicle I'll just roast the sales manager ;)
Shut up all you are going to roast is a marshmallow👌🏿
+General Zod superman killed your ass
+Jeffrey Bravo 2Pac and I are planning on making a comeback this year homie.. You'll see me again and supes better be ready to square his bitch ass up.
+General Zod The beauty of being able to speak multiple languages.
everything to do with a car is a scam from insurance all the way to DMV they all in the same game
+Koontah Kentay And you know it.... All their scam is justified by our government. They mandate that every motorist should have driver license, insurance and registration and that is the LAW.... The insurance guy already has an office of his/her own within the dealership. That's how great this scam is.... LOL...Therefore, we can scream all we want, but if you don't have these things then we can't drive. LOL.... Yep I smell SCAM from day one....
+TDMThaya you are speaking MY language! Government mandated scams to work in concert with so-called private sector thieves.
Yup you guys pretty much nailed it
+Koontah Kentay if thats so then why drive on government roads? Even if youre a safe driver, what happens if someone crashes to you and you become injured and cant work? how are you going to know which car belongs to whom if theirs no registration or drivers licensees if you cry to the police that you got it stolen?
You wouldn't want public roads repaired? you think everything last
forever? lol don't make me laugh, who provides you with those traffic lights? mcdonalds? Please. Get educated.
My point is that those are required if not their would be huge amounts of fraud and hard to track violators, etc.....
Although Insurance cost, I agree is a bit expensive and rules need to be changed with some of these company's such as, not being penalized for someone who doesn't drive your car and lives with you affect your insurance rates. These company's are raking in insane profits. (The situation I'm in now sadly)
letsroll man please! WAKE up those big shots pocket that money road repair are you serious? What you think we pay toll for? Taxes and all that other good stuff cause we want to? You better smell the coffee
The dealer is there to make money off of cars. It's a no brainier that they will try to make money off of your ass, when you go in to buy a car
big difference between trying to make money and ripping people off
More money the better. Just don't be so ignorant when you go to buy a car
People should do their research
I learnt nothing from watching this video
Really, Jake...they're trying to make a profit? Wow, isn't that a crime in the US? Do you work for a non-profit?
I've been screwed before by dealers, but I have learned my lesson. I go in there with lots of knowledge now and I never let anyone pressure me to do anything.
Thanks for the heads up!
I went to a dealership where they tried to sell me a nissan 350z NISMO. Well i went home and looked up the VIN and it was DEFINITELY not a NISMO. They were way overpricing a regular 350z and saying it was a NISMO
I don't think the nismo package can be looked up by Vin... I know the packages S, SV, SL, can't on the Altima's and Maxima's. Enthusiast can't be looked up on the 370Z's by vin... you have to look at the equipment that's on the vehicle.
No you can tell. And i Think after a bit of research i found that they didnt make a nismo yet that year.
Also, the dead giveaways were that it didnt have a rear diffuser, and that that the nismo badge was a decal, not an actual badge like the nissan logo is.
Yeah that's something you can tell by looking at the vehicle can you tell by looking at the vin is the question that I'm asking.
It is no doubt that dealerships end up with cars that they don't know how to price... I have seen vehicles over priced as well as underpriced...
People that work at dealers are not necessarily Gearheads...
😳
STOP BUYING CARS NOW AND KEEP YOUR OLD ONE
Great video. Thank u so much.
I expect them to be crooks. I expect to get screwed. It's the simple reality of buying a car. My hope as a buyer is that knowing that even though I'm not getting a deal, I don't leave with a feeling I've been shafted. The good sales people make it feel good.
Half of the people commenting would easily get ripped off.
Half the people here dont know when to use their, there, or they're amongst other things. Im a tech and still remember used salesmen bragging about how much they grossed the last customer.
Darryl Rossetti I especially hate it when people use im instead of I’m.
Why should it be ok for a dealership to rip someone off?
RC Christian - I don't know why we would do that. That sounds terrible.
RC Christian - Bro, re-read my post. I thought I laid the sarcasm on pretty thick. Was trying to go along with your joke.
car sales men suck. if they harass me I just leave. I had a experience when I wanted to leave over the harassment and the car sales men said let me just get my card so you can call if you change your mind. he did and after he handed it to me still tryed to talk me into buying. by time I finally got to leave they dropped the car of interest by 7,000. I still didn't want it because of the experience. when I actually tryed to drive away one man stood in front of my car so.I couldn't leave wile another talked to me through my car window. I felt so uncomfortable and like I was being forced to buy. screw that
us in the car industry think people like you suck. Your story is a lie and you went into the dealership to waste time. idiot
A Dee...lol, I totally believe her story because I have seen you people pull that crap. Can't help yourself with another opportunity to lie huh?
A Dee actually car sales men are well known for harassment and manipulation. ask people you know about there experience purchasing a car. I'm sure it wasn't pleasant. also your right, I made up my story. such a interesting story that gave me lots of attention that I so desperately needed
Missy Ginsberg most customers look for the attention the exact same way lol have a good day and do your research first then go into a store when you are ready.
A Dee why would I to buy a car the second most expensive thing people own with out doing research? it sounds like you really hate your job. talking about "most customers" in a negative way. maybe you don't do your job right. maybe you need to find a new career where courtesy isn't required.
This guy is a hero, he brought forward much of the bs that is present today at used dealerships everywhere. good work!!
Thank you Sir. For telling us the truth!
Private party lie same as dealer. Do your research, get it inspected if you don't know anything about cars. All straight forward.
One thing that I have learned is that many used cars offered at buy here pay here lots the down payment alone covers the actual cost which the dealer bought the car for
you taught me how to buy cars. completely chages the dynamic when you are informed buyer.
saved me big $$$$ thanks
Thank you for telling the truth
Wait, it's a "secret" that car dealers underprice your trade in? That's not a secret that's them making more money smh. Didn't know that people weren't aware of that.
agree.... seriously people. take a look at the used car stock of your local dealers. generally speaking, cars between 1000 and 10.000 dollars have a 100 % or more mark up over trade in. 10000 to 50000 maybe 50-75%. (provided the dealer keeps the car) next time you or anyone you know trade in vehicles, tell them to check the dealer website In a week to see what they are selling your traded in car for
Almost never do they give you what Blue Book or Edmunds says you can get for it from them even if its in top condition
Caleb and if they do give you what it's worth, they won't budge on the price of the car you're wanting to buy. They make their money either on the front or back end.
Caleb And you'd never pay blue book for a car either, so what?
M DW unless u know how to buy a car then you'll get a good deal
I've payed the dealer premium before because I knew they were talking straight to me. We negotiated to upper market value. I told the guy 7400 was a lot for me, and I needed it to be a good truck. They hoisted my future truck up, and let me give it a full inspection. Anything I found, even a little leak or rattle, was fixed because I was paying full price for a solid vehicle. The dealer had already put new brakes on. Maintenance was all updated. Best truck I ever had. The dealership was trusted enough that I was able to get in touch with the previous owner and learn the maintenance and service history. I was happy to help them profit for their service. Why can't they all work that way? That place makes HUGE profit, and they do it honestly.
+Quadrunner That's because in this market and business they make even a lot more money by scamming and cheating their customers than being honest. Why do you think banks gave out sub-standard loans to people who didn't even have a job or have any income back in 2008 that contributed to economic meltdown? That's because banks didn't care but more cared about the commissions they were making when they handed out loans out to dead beats or people who can't afford the loan. Remember, they may sound and look friendly towards you but it is never about you as a customer but all about your money.
TDMThaya Here's the thing though. I know cars and I know a lot of car dealers. People come to me for advice, and I always send them to the same place first, because its one of the few dealers I know of that has not proven to be dishonest, or unfair. I'm already priming the sale before their potential customers arrive. I mean, ripping people off is a viable business model, but a good honest business will prove to be more stable in the long term. They maintain a steadily expanding repeat customer base and that is AWESOME for streamlining a business, because it allows you to predict where your investments will be best suited. All of the salesmen are older at this place, and I would assume they've all built steady relationships with a multitude of costumers over years. Once their reputation is established, the cars practically sell themselves, and the amount of commission is far less important. It just gets better from there, because you can afford to make better and better deals for more and more customers.
Quadrunner i
THANK YOU!!!
Thank you sir!
Never financed or leased a vehicle in my 35 years of driving. It is cheaper, in the end, to outright buy the vehicle.
Yeah but god forbid the irresponsible deadbeats spend within their means.
That there is the problem.
but those guys are what makes the world go around haha with all that debt they need to pay off.
MommyKiller1
Eventually enough deadbeats default to send the economy into a recession. Then everyone suffers.
Tibor Roussou I totally agree. If you have bad credit you should never finance a vehicle, just buy a cheap one and drive it til your credit is better. Financing with bad credit just has a spiraling effect. Your credit will just get worse and worse because not paying off debts is what got you bad credit in the first place.
Isn't this just sales in general? I worked at PC world for a year and this was the same thing, insurance and addons were your primary goal because that's what made the store money. There's nothing bad about it, its just sales. Just don't buy it?
yea but pc is different also depending companies like asus have warranty on parts like a 10 year warranty and they sell rather low price parts
I've assumed this is the way dealers operate since I was ten (1954). A real news story would be about one or more dealers who don't do these things.
I haven't bought a new vehicle since 1999 but I bought my first one in 1966. Even then, if the salesman started asking me questions, my standard response was, "I'm the customer so I'll be the one asking the questions if you don't mind.
Another thing I never did was to tell any dealer which brands of cars were on my short list. I didn't tell them, that is, until after I had ordered a car. Then I told the other dealers which vehicle I had ordered and why. The reasons usually included how I had been treated by the dealerships where I DIDN"T buy a car that year.
Thank you Sir!
Im a car dealer and its pretty simple. Some cars I win and some cars I lose. I don't try to scalp people. I give the fair market value for their trade ins and sell the car for fair asking prices. This guy is talking about the big fancy car dealership where the main goal is to squeeze you as much as possible.
I'll tell you this much... If i had $1 for EVERY trade in car that a customer told me was perfect and needed nothing, but then I run it through my shop and it's NOT up to par for the next owner(which could be my mother lets say)... I'd be rich.
Generally on the whole, customers have ZERO mechanical ability, ZERO knowledge of how a car works, and have no clue as to what even constitutes a safe vehicle... yet come trade time they tell you their car is perfect LOL.... in my experience CUSTOMERS are the scam artists... THAT is 100% true sorry if anyone feels different but it's the truth.
Rick Dangerous that may be true but often it's simple things like break pads or a alignment . No reason to offer 15 grand on the trade then try to sell it on the lot the next day for 25 grand . It happens everyday
e2sguy
I have worked for three branded large dealers in the last ten years, GM, Ford, and Dodge...
Not once did I EVER see a trade in proposal 10 Grand under the money... I never even heard through the grapevine of all the salesman I know and talk to offering a customer 10 G under the money... much less the customer accepting it.
Now, with that said... If I was to bring in a $100,000 vehicle... I might start at 10 grand under the money sure... its a $100,000 car...
Factory Corvette Z06's have likely about $12,000 in markup by the way running from MSRP...
But 99% of tradeins offered to "regular" dealers are NOT $100,000 cars.
Im not saying there are no dealers that won't offer 10G under the money on a true and fair $25,000 retail car... but I can pretty much tell you that by and large you will NEVER see this occur at a BRANDED store....
You'd have to visit likely 100 branded dealers before you even get someone to tell you $8 G under the money.. and THAT dealer offering * probably did a better job at appraising the condition of the car and evaluating the end selling market.
There is ALWAYS a reason for a car selling for what it does... always.
Now.. Johns used cars? Sure... they might try and steal cars... because they are hole in the wall stores...
If someone wants to deal with a hole in the wall dealer that they never met before.. then they got rocks for brains anyway so trading in cars is the LEAST of their worries...
Rick Dangerous I have personally had 7500$ difference on my truck happen to me with a trade ...And that's in a 25000 vehicle .
I have multiple friends that got 5-8 grand difference from the trade money to the price the next day on the lot . First dealership I went to with my 2500hd gave me 20 grand and out on the lit the following day for 27500 . These things happen all across the country at every large dealer I've known of . Maybe your experiences are at friendly honest dealers who have great deals but in my experience the opposite has always been the case and I've dealt with the biggest dealerships in Ohio and Pennsylvania
I've noticed that the car industry is easily among the shadiest, and most crooked industries that I know of..
From the initial purchase of your car (as seen here). To the servicing of your car, as seen with all of the private mechanics, and even dealer service centers scamming customers by "providing services" that aren't needed, or even performed (I've still yet to find an honest mechanic in my area)... Through to when you trade your vehicle in (again, as seen here)....
It absolutely disgusts me, as a car enthusiast, to see so much of the industry surrounding my passion filled to the brim with greasy crooks and con men. For shame!!
+bliglum This is why I fix my own cars. I also will never sell my used cars to a dealership when I buy a new one. Instead I'll sell it on craigslist, or something similar. You tend to get a lot more money that way.
+TotalDbag I totally agree with you.... That's what I do to.... If there is a fix I can do myself on my car, I will do it.
thats it make fun of a industry you actually no nothing about u fucking piece of shit
Wesley Cattanach Now I know Wesley works for a dealership.... HAHA...
What do you do
Very Brave, Thank You 👍👍👍👍👍👍👍🙏
I knew there always was something wrong with the car dealership industry.. Thanks for posting this right advise.
I had a salesman try to sell me a used truck for $14,900. The only problem was the Kelly Blue book value on the truck was only $7,000. I decided to pretend to be a dumb customer and played his game and pretty much just wasting his time. He wasted mine so why not. I actually caught him in a lie. He made small talk with me about his grandmother having cancer and later it changed to his Aunt having the cancer. Never trust any salesman I know I used to sell kirby vacuums door to door. I was selling a $200 vacuum for $1500 or more.
Oh
The thing is who would be more honest. A used car salesman or a private seller?
+John Chauvin Atleast a private seller isn't trained to lie and rip you off. You can always go get a car mechanically inspected if you think they are lying about mechanical issues and you can easily look at the value of a car with a search
Unless that private seller was a used car salesman or used to be.
+Ryan Sorrell You should check out kirby now a days. They show the retail price at $3400. But don't worry they are cutting you a deal, trade in your old vacuum(if its newer) for $500 off, oh you work for whoever I think we have a discount for that. Let me call my boss. Calls the guy driving them around that day. All a bunch of crooks. And to think the way the job posting was done I thought it was a cleaning crew looking for workers.
Technically, car dealerships don't sell you new cars. If it was new, i would be the one who unwraps it, be the first person to sit in it and the first person to drive it with having 0miles on the clock.
unless they get you into a lease car. which has 0 miles
Well unless you can make ready a vehicle for sale and perform a state inspection, you will never be the first person to touch the car. Not to mention quality control has to drive the vehicle after its manufactured to check the build quality for safety. Stop talking about things you have no idea about. Being first on the title makes it a new car purchase, and to have a few miles on it does not make it a used car.
I have seen new lease cars with 3 miles on it
thank you for revealing the truth
I've never actually bought a new car ever, I know it's even more risky than a dealership as no guarantee but always found it to be better
there's a reason why people call the STEALERSHIPS
is this a parody video? this might be shocking to a middle school student I suppose.
I doubt it would shock them either...
This video is very helpful
Best advice I can offer when walking into a dealership is to know when it is time to walk out. Understand, they don't want that car sitting on their lot -- they want your money. Therefore, YOU have control, never give that away.
Thank you.
Shady business practices are bad for everyone. Would you rather burn someone for a single small profit, or do somebody right so they buy from you again and maybe send in family members?
I am brutally honest. People know the difference. Its easy to tell when you are putting on a sales pitch. I will tell someone flat out, yes I drug this car home on a flatbed. I got a hell of a deal, but then put in a lot of parts and man hours to get it back to being nice again. Here are the receipts, here are my busted knuckles. Yes it marked at retail price, but a guy has to make a living too. Im not getting rich off selling you this car. Usually the second or third person who looks at it, buys it.
Dont be a grifter. The smaller your town is, the faster your name will be soiled. Honesty sells cars.
If you tell the sales person what the monthly payment you want or can afford without getting a price first you're just asking to be ripped off.
I read this guys article and am re-reading it again. Well done indeed. I learned a lot. Never trade in your car. They will always screw you big time. Have a cash down payment.
I like how the intro portrays this guy like he went undercover in the mafia.
When I hear a car commercial saying that they will "appraise your vehicle for top dollar" I laugh !! Get an INDEPENDENT appraisal.That is like letting the fox guard the baby chickens.
i once saw a car dealer work the numbers up in such a fashion, it looked like you were getting a good price on your trade in, but if you looked closer, they also raised the price of the car you were buying by the same amount, so you ended up with the actual value of the trade in around a few hundred bucks
+Brian Fischman I completely believe you Brian. That's how they all WORK - conning innocent customers' of theirs. See this what I don't understand. Why won't they try to be honest for once and see how many cars they sell every month or even a day? I am sure they will sell a lot over time.
you would be surprised. car sales people and realtors only care about the sale. most people only deal with that that particular sales person once in their lifetime anyway. thats how the sales person sees it, so what can the sales person do to maximize the commission they will be getting off the transaction?
You are all on crack! Some small mom and pop operations might screw you around, ( or any Go Auto ) but some of the larger dealership DO NOT screw you around. In fact I know of a few that do really good things for their customers and go above and beyond to ensure all customers are satisfied and taken care of.
Chris, you have no idea what your talking about, i've worked for several large dealerships(one was even blue oval certified) and they screw you MORE then a mom and pop.
So have I and I do have a couple of ideas thanks. Brian You have no fukin clue who I have worked for or who I know. I didn't say that no one does that. There are a few that do it but there are dealerships that don't fuk you around.! Like the one I currently work at, Bud! Just wanted to say that because all you guys think that all dealerships are out there to fuk you and take your money. Thanks for YOUR input. No reply needed thanks.
i like how he said he would be in physical danger lol
When I bought my most recent car I was honest with me sales person about what my credit was, how much I was willing to pay per month and what I wanted. Came out with a car I love, payment I could afford. Good extended warranty and great factory warranty. I got took with a 3 extra payments tacked on 75 months vs 72 and took a car with the features but not exactly the color I wanted. Best part was without all the "games" I was in and out in just 2 hours. I feel for people that get into bad situations where they are stuck with too high a payment, and have their trade stolen...or worse get a lemon and no warranty.
Can't trust dealerships they got a family to feed just like you do it's every person for them self's just stay away
LOL undervalued trade in.....The car they are selling you is the BEST vehicle on the road! Worth every penny you are paying for it....it immediately becomes worthless the second you want to trade it in....
michael C
back in 2003 my dad got offered 500$ on his trade in 91 Jetta coupe.
its so clean and mint you could eat off anywhere on the car. All documents, even the window sticker is salted away.
He asked to use the phone sitting there on the desk and called me, with the salesman sitting there, and asked me if I wanted a car for 500$ 😳
Why hell yes I do!!
They weren't expecting that, and I'm sure there were a few techs and salesman oogling it hoping to get it for a song.
Glad I did, it's one of the nicest cars I've ever had, she's been retired now and comes out to play for the summer and car shows.
there's plenty of vids of it on my channel too.
Rubber Soul
Yea they were idiots.
I'm glad I have it now cause at a show yesterday I got mobbed as soon as I pulled in.
Ain't nothin like a red Jetta coupe to get everyone running.
It's on my channel quite often.
I wouldn't sell it for love nor money at this point.
Rubber Soul
He called me from the dealer (to add insult, right in front of the salesman) and asked if I wanted a car for 500$. What's not to get ?
He would rather give it away to someone who would respect it and take the 500$ on the chin.
Get real, 500$ loss isn't gonna make me or him cry.
I pissed that away last week in nos parts.
Even back then, "the kids" wanted coupes and usually couldn't find em, being it was a lower priced model and old guys drove em till they fell to dust.
It's more about the insulting offer from the dealer and the look of astonishment from the salesman.
They lost out on a heck of a deal.
I remember the 500$ part, if he actually took it I've forgotten by now.
Same happened to me on the wife's old Passat when we got a new Jetta.
it was in decent shape but no, 500$.
That's your guys offer most of the time, that one I should have kept and stripped the 16v out of it if I would have had space at the time, cause that's cheap for any running 16v even back then.
I'd rather have some fun and blow it up or beat the crap out of it in a field for a while for that 500$.
Rubber Soul Sorry, I know plenty of dealerships that take old(er) vehicles in and keep them, depending on the make and model. I know one Ford dealer that specializes in used mustangs and sells them for the going rate based on year, condition etc. They had an all original 67 fastback that they had in their showroom for $45,000.00....
I love how people state "they all do x....." the thing is, they don't......
Here's something that dealers DO want you to know AND it will save you a lot of money, too. This applies to new and used cars. Plus, if you ask this question and get a "no", you can walk right away before all of the riggamaroll. Tell them what you're looking for and ask to see the "Old Age Units". Old age units are vehicles that have been in inventory for over 90 days. Dealerships have their inventory on what's called a "floor plan". What this means is that they technically have a loan on their inventory from a bank or sometimes it's the finance arm of the manufacturer. After 90 days, if a unit has not sold, the dealer must pay for it in full. Each unit that goes past the 90 day mark cuts into the cash flow of the dealership. They need that cash flow more than they need to make a profit on those units. Depending on how many old agers they have in stock at any given time will determine how anxious they are to deal. A larger dealership that has 50 cars that are old age units may be sitting on a negative cash flow of over $1 million. They don't just want those cars gone. They NEED them gone. That is your best opportunity to get a vehicle at, or in many cases, below dealer cost. So, the first question you want to ask is, "How many _______s (insert name or type of vehicle) do you have in stock? If they say that they don't have old age units, turn around and leave. Sales staff will be anxious to sell these cars, too because the dealership will be paying them bonuses to get those units out of the inventory. It's a win-win-win for you, the dealer and the sales person. This scenario takes the stress out of the transaction for all parties. Just remember, the bigger the dealership, the more old age units.
Here is one for you: a very good way to estimate the actual miles on a car is to look at the brake pedal. It'll show wear by 50,000, the corners will go smooth around 75,000, and the metal underneath the rubber will come though around 100,000. If you see a smoothly worn pedal and the odometer only shows 30,000 miles on the car, something stinks. I have sold a couple of cars with wrong odometers on them, since the speedometer (and odometer) had broken, and I replaced them with used parts from other cars. I simply record the miles showing on the old one, and the new one, and calculate the difference. As long as that info is up front and in writing, there is nothing illegal or dishonest about it.
This is fact I work at a car dealership and we don't do anything they said in this video
pretty much every dealership do these things in my area. they're all sleazy. if they see an elderly person trying to buy a car, they take advantage and put them into debt.
any luxury item sold in this way is a scam. even your home you get scammed. shameful.
It's no scam at all. The information on the price of new cars and the average value of trades is ALL available for free (oddly enough, on Edmunds.com and on their free app)...and that availability of information works in the buyer's favor...unlike almost every other product you could buy/sell. What is "shameful" is the willingness of someone to spend $30k or more on a car without doing 15 minutes of research via google and when they feel like that get a bad deal, blaming the salesperson.
For every new car/motorcycle I've purchased in the last 10 years or so, I've done my brief homework online and then pre-arranged the sale/price via the internet and basically bought before I every set foot on a lot. Anyone with a phone/PC and 30 minutes of time can do that and it costs nothing. In EVERY case, for the record, the price I ended up getting was better than the "guaranteed" price Edmund's buying service gave me.
This "reporter" represents Edmund's, so you tell me who's ripping off whom.
Actually you are so right we had a family friend explain it to us and his view on it was
that how many cars do you buy in a lifetime and still get scammed.
Now imagine the amount of houses you buy also it says allot.
Are delivery charges, and destination fees the same and if so are they necessary on used vehicles?
not only that but they want you to buy a ton of extras
Interesting. If you want a good deal on a car you SHOULD not be on a dealership lot.
If you want a new car you really don't have a choice...
You can get a good deal anywhere. just remember to trade wholesale to wholesale or walk away. dealerships are sometimes the best places as they service their used stuff and send anything that has major problems to auction
pay cash period..
"This is how I feed my family."
Yeah, the mafia says the same thing.
Great work. The older wiser folks that I deal with speaks in the same manner. I was offered a chance to sell used cars during my youth but I didn't. I'm happy I didn't because I'm just too honest.
i work for a dealership in canada. we actually do call auction and test drive the trade ins. yes we give less than the market price on the car but thats because they need to fix them recondition them and also make a bit of profit reselling. and it is explaine to the customer. its his choice if he wants to sell it privaatly. as for bugged offices thats not true at all. it is illegal and this guybprobably worked in the shittiest dealer in the states
+Karim Ali Thank You
If the car needs a big fix wouldn't that be to risky? Normal everyday cars depreciate all the time.
Well, it is funny that edmunds.com do business with dealerships too... And makes money out of that of course, so what is the deal here?
I bought my honda from used car dealership 3 years ago. Still loving it. Buying experience was positive too.
I have never paid anything down or traded my old vehicle in. I tell them where I want my payments to be and they always get very close at Mike Johnsons in hickory N.C. I've bought 4 trucks from there and always leave happy. yes they try to get me to pay money down and start out with high payments but I always get them where I want them. last truck I bought I waited until I knew where my payments were gonna be. and all I had to do was sign. the truck had reg. factory wheels and I wanted nice mags. I told them if they would put those mags on I would sign. at first they said no they could not do it. I said ok I will just go somewhere else see if I can get a better deal. I proceeded to get up and leave and they stopped me at the door. Ok we will do the deal. wait till they tell you everything and ready to sign then ask for somthing. floor mats rain guards. anything. then they can't add in the price of it.
He's still a saleman...because he did not reveal sh*t! lol!
I bought a preowened vehicle about 6 years ago and went to about 3 different places and knowing what kinda car I wanted cuz I did my research online. was paying cash brought the amount I was planning on buying but nope all of the sudden. what I read on line the price it was higher I said nope this is what I brought and and this is what plan on spending no more then that i said. so they tried selling me something different with more Miles and an older car I said NOPE!!! I swear these people just won't give up. I mean they can run there mouths all they want and tell me this and that but the answer was still gonna be NO!!! PERIOD. In the end There the ones that lost out not me it's like you don't wanna take my money hey its cool some other dealer ship will. LMFAO
ya lol, that's what they get
yea you sure taught them
hell yeah no car sales men is going to take me for no damm ride. I DON'T THINK SO!!!!!
A
Would you walk into a Bugatti dealership with $2,000,000 and try to buy a $3,000,000 car?
No!! What I'm getting at is who cars if that's how much YOU want to spend if the car is out of your budget!
Either A, save more, or B lower your expectations on the car that you want. a lot of the time, dealers lose money on used cars.
Ima walk in and call every car a piece of shit when they walk away to listen 😂
Also,in the service department they charge you about twice the price they paid for parts.
What? I've been to every dealer in my county car shopping, and many in others. Of course they try to pad the price, but not once have they tried to trick us with a lease. I honestly feel like that's illegal. The secret is to show them you're serious and put down a price so that the dealer makes $1000-$2000. They will say no and offer a higher price. Say it's to far apart, and walk away. I can guarantee in most cases you will get the vehicle for less than KBB every time.
i bet you never bought a new car in your life
a tip from a good person, only buy cars cash, i know this and don't buy 4 cylinder cars from dodge,
Best to not buy any 4 cylinder car in general, and to not buy any dodge in general
actually dodge is bad ass i drive the dodge charger se , to work as a daily driver and i love it , so super safe, been hit a couple times and it was their fault , and i havent been hurt badly. Very safe care budget friendly , and trunk opens automatically on press of a button. No problems yet so far, except u have to take apart ur fob key urself, they wont do it in case they break it, in other words they want u to take it apart and if u break it its on u and u have to pay full price for a new one.Now this seems a bit scary, but its easy , and i didnt break it. i wanna buy the challenger hell cat when i get my new job . :3 its gonna be sweet!!!
Not all dealerships are like. You just have to think carefully. Also, buying used cars aren't any better, even in private sales. The seller can still rip you off and you'd never knew of all the problems until you drove the car and discovered it yourself. Even if you do the beforehand research on the car, it still takes a lot of time which is considered expensive time wise. And you may not even get all the info if the car is from out of state or elsewhere.
There are both cons or pros of either dealership, used car sales, and even private sales. You can't just say dealerships are immensely bad when private sales are just as bad.
PartyWolf It almost never makes sense to pay cash for a car, unless your credit sucks.
Nathan Adkins Having to make payments sucks. Unless you can't afford to write the check up front, i'd say always pay with cash
I usually don't like mainstream media sources however I very appreciate this coverage and I think it is it worthwhile issue to help people from spending their money on garbage thank you
I highly recommend reading the contract because the court goes by a written contract and not hearsay from a car salesman and managers if you have to contest it. If the dealership promises you stuff, make them make an amendment to the original contract.
And dealerships wonder why Tesla managed to get 400k reservations. Aside from getting a pretty nice electric car, you don't have to deal with that "let me talk to my boss" crap that they do. Yes, you may pay more for a Tesla, but at the same time you won't have to wonder if you got screwed on the price, as it's the same for you, me, the guy in California, and the lady in New York.
NADA (National Auto Dealers Association) is trying to fight Tesla in various courts around the US to prevent them from being able to sell their cars directly to customers. And inadvertently giving Tesla a lot of free publicity as a result. I don't know anyone, aside from car salesmen, who "loves" the haggling process.
That's one of the reasons I buy Tesla. Bypass all that negotiation bullshit and i get a car that's good for the environment as well as high performance.
+terriesmith1981 good for the environment, lol, where do you think electricity comes from? The electricity faries?
mychoclabwinston It sure didn't come out of your ass.
***** Well, then those big automakers better get cracking on those EV's, lest Tesla steal their sales down the road too, the way they stole luxury automaker's sales with the Model S.
Saturn did the same. They turned out great!
I have been in the car business for over 40 years The vast majority of dealers do not treat customers like that
Yes we do try to make a profit please tell me which products you buy that the retailer tell you what they paid for it .
It's very simple go online and you can usually find out the invoice on the car. The percentage markup on an automobile is lower than any other product you buy. If you go to buy a pair of jeans The manufacture doubles the price to The distributor The distributor doubles it to the retailer and the retailer doubles it to you. Take the time and look up the profit margin the manufactures have an automobile it's in their quarterly reports dealer markup is between five and 15%
When it comes to trade-ins The vast majority of them have problems that they do not want to sell to somebody and they want to unload it on a dealer
As all things in life there are good people and bad people and they're good businesses in bad businesses .
The bad ones usually do not survive
Yeah? Why don't you explain to us about holdback money and skins and adding the extras like paint protection etc gap insurance and other hi profit useless add ons?
hold back is used to help the flooring costs of a vehicle most dealers don't own all their cars. They have to pay flooring to the bank which is subsidized by the manufacturer in the form of hold back. it's not some secret profit it's about 3 months of flooring. Paint protectors aren't all that expensive but what you pay for is the warranty that comes with it most new cars is 5 year warranty and used cars are typically about 3 years which protects your new vehicle from fall out such as bird droppings that you don't immediately remove. But what this guy is talking about is illegal here in California, payment packing and the like. it's not a cookie cutter report he's giving. but hey car sales is a business, it's a career it has to make money like any business with career people.
Thank u
Thank you Ryan everything you say is true I've been doing it for 16 years
Lol
Buy from a reputable dealer and you will never have to deal with things like this. Most states have laws against, "bugging offices" and "packing payments." This is not representative of the industry as a whole(like this guy is trying to imply). This is an example of some unscrupulous dealership practices that will be weeded out by customer reviews and reputation. This guy sensationalized some shady dealers practices and makes it sound like this is the way things work everywhere, and we should all thank him for his work. I think he should get a job working for Geraldo Rivera or Jerry Springer where his skills will be appreciated, and fit right in.
No true!
sorry but this is all dealerships they try to buy low sell high that's how they make money from new to used here's a secret from someone in the industry well was now drive trucks. but know what your talking about tell them this is what I want. do your research. my buddy just traded in a year old 4000 mile car on a 16 he liked alot of new options. 8 grand less then nada trade in. not a scatch nothing. he said I know that car is 22 all day you give me 18 and we have a deal guy said can't do so he walked out went to another dealer in next town no problem. they have 22,500 on windshield. know what your going in for and dont leave with more then you want you go in to buy a pinto don't come out with a escalade. when I bought my car almost walked out. they where trying to sell car to high. did my research saved me about 4 grand. oh also ask to use the phone they can't have it on like me said phone dead can I call insurance so he couldn't have phone on as my friend at a new car dealer told me about this.
Ohh yes you will. I worked for one of the biggest one in Sydney Australia and they did worse.
Well the buying low and selling high that's how they make there money. now the dealers that get me are the one who cheat. the ones rolling back miles (harder to do but they just find a dash from a car with less miles). hiding bad oil leaks, butting stop slip in trans and when buy car 3 months later you need a trans. when I was 18 I went out and bought a 86 ford f150. went car shopping with my sister 4 years later. kinda f'ed up when you drive into dealer and first thing out of salesmans mouth is "wow that truck is still running I remember when you bought it". my thoughts so you didn't thing it would last for a few years? what was wrong with it that I didn't know lol.
eric l sxd
When I go to a dealership, I have a figure set in my head that is the maximum I'm willing to pay per month. And my goal is no more than a 3 year contract, but I'm a bit flexible there. I'll go to 48 months, *but no more*. When they talk about a test drive, I'll tell them, Ok. but all I'm able to pay a month is [insert figure I've decided on here, less 10 or 15 dollars]. Any more than that and all we will have accomplished is to put more miles on the vehicle. Because I *will not* overextend myself and my emotions do *NOT* come into play. I will not fall in love with a car until the contract has been signed.
Dealerships don't like my kind of customer.
Those tactics were used at a huge dealership in Brooklyn, NY
I always felt that was happening , I clearly remember being a customer at a dealership ,and feeling that I was being lied to and robed , but not able to articulate why , I wish I had this confirmation then , anyway never to late .
i mean dealers and employees are dads husbands people they have to make a profit. Of course they have to make money on each sale are they supposed just be there for free? I say research and try to find an honest dealer and at the end of the day it's really the consumers decision don't sign unless your 100%
People wonder why I have stopped buying a new car every 2-4 years. THIS is why! Only took me 30 years to get smart. I knew I was getting screwed, but I was young and dumb, to a point. I knew they were screwing me, but I was screwing them to:)...little things that were wrong on the car/truck I was trading in, would go bad in weeks after trading it in, I wouldnt get them fixed and they didnt check. since I was trading in a 'new car' practically. Dumb-Asses.
BUT now, I have no car payments, no 'power everything' ,to break down and cost a fortune to fix/replace, WHEN all those little motors break, only have maintenance, and oil changes, and I have a 9 year old car, that looks like a brand new car just off the lot, and has 34K miles. Wanna buy it? I ain't selling it!
Shut up and trade that pos in its probably hurting the environment so you are screwing the rest of us with your mentality✋🏾
+Katherine Collins hahahaha love your comment.
+LAC32Griffin Enjoy your car payments and your repairs of every tiny motor because you are both to lazy to roll down a window, or slide your fat asses in your seats. Each motor is a few hundred dollars to replace, when just a 10 cent wire burns out:). So enjoy. And pay your bank/finance company all that interest on your new car every day, every year, glad you have the money to trow away on the junk cars they make now. Almost nothing left to buy that is worth the money. Take a look at all the recalls on NEW GM's, BMWs, every make, even Hondas! Once your warranty is gone. Have fun paying for all those repairs:)
+Marc B. easy, get a better job buddy. I can afford my car payment and drive without any concerns at all. Troll alert!!!
+LAC32Griffin a female reply. Your HUSBAND/or BF can afford your car payment. All you have to do is lay back and fake it to get the payment.
Same here in the UK!
As someone in the car industry, this video has me rolling on the floor laughing.
Giovanni Gomez same. This is so horribly inaccurate for the dealership I work at. There may be some out there like this but do a little research before you go into a dealership to make sure they aren't like this
Not all sales consultants are crooks. I bet he didn't give back the money he made. Do your research before you buy and you want get screwed. Go to more than one dealer.😉
lol wow, I've been selling cars for about 2 years now and the truth is farther from this.
trade in values are always lower than retail values.... when a dealership takes a car in trade they have to take in the car at a wholesale value in order to have enough room to re-condition the vehicle. windshield, tires, brake service, mount and balnce, new fluids and an inspection could cost you a lot of money and then it has to be sold to still make a profit. there has got to be room, also cars depreciate over time so cars have to be bought at a good price in order to accommodate for the lose of monthly profit...
the type of dealership that this person is describing is a second hand dealership that only focuses on second hand cars. like Jims auto sales. or whatever the name may be. but a branded big corporation does not do what he is saying. this is a joke lol.
+Diego Triana im new to the biz and im LOL the whole time. our dealership treats people right and I am proud to work here.. pople always want retail for their trade but buy at wholesale prices.. like um no it cant work like this. isn't he being a little shady lying to the people he is working for.. this whole this is ridiculous!
+Owen Erdogan it's got to be way less than 50% of dealers that do this type of stuff.... it's unfortunate because it's the 10-15% of dealers that do this that give everyone a bad name. Either way people only talk about the bad and not the good. So you hear more of the bad dealer than the good dealer. You will find more negative things people say about the industry because they are pissed off and they want everyone to know it. But if you get a good deal and you get treated really good then you are happy and usually that's that.
I've bought a car at a dealer once in my life and it really wasn't a bad experience. It was a real Honda dealer and not one of these "buy here pay here" type places so that probably helped. My advice to anyone buying a car at a dealer is to know what you want and what it costs, and have your financing secured beforehand. A lot of people I've talked to didn't realize that you can finance a car through your regular bank, they will write the check for your car outright so that the only transaction you're going through with the dealer is the purchase itself, just like a cash deal.
this is so crazy but so tru
Nothing new or exceptionally outrageous here...a business trying to maximize profit at the customers expense. The means to the end sucks cause it does involve manipulation, but the responsibility is partly the customers' with so much information at hand nowadays. However, the dealer will always have the advantage because of the customer's desires and emotion will make them overlook facts and common sense.
Surprise! The car business is a scam, a racquet! You never win trading or buying a car from a dealer.
YOu are pretty much a moron if that's what you believe... you cleary have no idea as to the reality of the situation.
@@rickdangerous5606 Exactly. This represents a portion of dealerships who don't abide to sales laws. Most dealerships out there are honest
I was at Mercedes just the other day just to pick up a key fob that I have order from the part department. Me and my wife went to go look at the price on couple of SUV just to get a general ideal. The sales person saw me and my wife looked at a 2014 GL450 that was listed for around $43,000. So the sales person showed us a 2017 GLE43. The sales person wanted me to test drive it. My wife said yes (I was against it) so while I was test driving it they upraised my CLK500. Once we got back to negotiate on price on the GLE43. All she did was putting numbers down without lowering the MSRP price that was listed for $74,000. My trade in on my CLK was so dam low that was way below the KKB and NADA. I was so disgusted with everything took my wife and left the dealer.
I will stick with buying cars from the dealership thru EBAY that's still under factory warranty.
good man
iLoveJESUS!!!! Gods' Not dead HE's TRULY ALIVE!
used car salesmen are more sleazy than lawyers
No, the lawyers are actually very smart at money extraction.
There's an app called Black Book that will show you what a vehicle is worth, if you look at the rough estimate that is what dealerships will give you for a trade. The dealerships have a black book they use to estimate your trade in and it's always low. It's a good app to use as a guide and it's usually spot on.
I sold new and used cars and encountered a number of the tricks he described or some version of them. He didn't mention the "crazy pencil" where the salesman scribbles all over the "four square" sheet so the customer is intentionally confused. This is the old system from the 1950's and is primarily used on people who walk onto the lot. The Internet customers are totally different because they've done their homework and often have the car picked out before they show up. However, the best salesmen were straightforward and had a loyal clientele and referrals because they gave people good deals while still making a decent profit. Anyone can Google the value of their trade, etc. while having coffee and donuts in the dealership. Last car I bought was from CarMax because they show you all the finance data, instead of only being avaliable to the desk managers.
everybody is in business to make a living. you go to the supermarket and pay a 50% or even 100% markup. the new car business has a 6% markup which people want to negotiate to nothing so guess what dealers are going to try make more when they can. Does anyone here work for free? does anyone here say to there boss that they have been paid to much this week since they had 10 hours of downtime they would take a smaller paycheck. . hey get real and let people make a living
It is a fun game buying a car and beating the dealer though. This just makes me feel less guilty about taking advantage of THEM.
I'm a mechanic and the local used dealers often have us put tires on their vehicles. They only buy the cheapest Chinese made knockoff tires and they never have us fix anything. I've seen them send in vehicles in need of serious repair and they always refuse to fix them. I will never buy anything from any of them.
LOL #1 negative respond taking food away from me and my family? oh ok so basically scamming people and taking advantage is ok? Your the same as a criminal
not really. the fact that you did no research and are paying 4, 5 or even 10k over the price of a car is your own damn fault. most of the revenue dealerships make is by people overpaying for cars and underpaying for trade ins. is your OWN fault if you don't research what your car is worth and the MSRP of the new vehicle you're buying.
my thoughts exactly when I was watching this video, no one bats an eye when someone loses money for another type of investment, why would this be any different? it's completely ridiculous to think that a sales person has your best interest in mind. the ones I've dealt with have all been shady even after I've signed contracts to purchase the vehicle, you gotta keep them in line! it's your money, they can only take it away if you let them.
ethan kraus thank you, you're 100% right and at the end of the day we're all in sales, that edmunds guy clearly couldn't sell his image better to just be worth x amount for that company unlike a car salesman (which I am one) we try to give the best customer service while selling them a car and making a decent amount of money.