The fourth thing is to get up and walk out the door. I recently purchased a used truck where the price was $16,495. When the salesman handed me the paperwork to sign the price was around $19,000 plus tax. I told him I neither needed or wanted their "interior protection package" their "exterior protection package" for roughly $1,700. He said they charged all of their customers those fees. I told him I don't pay those fees. During the negotiations I got up and started to leave 3 times. I did pay their $324.24 "processing fee" which should be part of their overhead but only because I really wanted the vehicle. I also paid sales tax, but to my state. Folks need to remember that the dealer, or any seller, wants your money more than they want the vehicle, otherwise it wouldn't be for sale.
So in other words the dealer won, since they bait and switched the price and you paid it. Yes, you reduced the price, but still paid a higher price than what was originally quoted. Next time, follow your own advice, walk out the door, and KEEP GOING.
Here in Australia any advertised price of any product must include the taxes, any motor vehicle price advertised must be the drive away price. It's the law .
I had one customer, 17 years ago, tell me "I don't want the bedliner or the step bars you guys put on the truck." It was funny because he also said "They look nice but the step bars just ain't my style, look at me, I'm an old retired dude." We had no problem taking them off. The only issue was management wanted to charge him $150 to remove the liner and step bars. I told the manager no, I'll pay it. It sounds crazy to some people but if I had a really good experience with a customer I'd pay for something for them if it wasn't too much. I didn't do it often but I would do it. Anyway, he came back a week later and asked if I knew a good after market place for running boards. I asked, why didn't you ask me when you bought the truck and he said cause I'm retired. I don't do two things at once anymore, just ask my wife. lol. I called a place we used a lot for aftermarket accessories and set him up an appointment and even got him a 10% discount. Seven months later he bought a new car for his wife. Four months after that he brought his daughter and son in law to me and they bought a new mini van. His neighbor even came in and bought a truck. The F&I guy had made a notation on the paperwork that went to the shop to get the bedliner and stepbars removed. He saw the notation when he brought the truck in. It stated I was paying for the removal. He found me on the sales floor and tried to pay me back. I wouldn't accept. The next day him and his wife brought me two pies she had made from scratch . One cherry and one apple.
Goated, and great business outlook. Not everyone will be this type of returning customer and even bring more people in, but that's how you establish long life customer relationships. Bravo 👏
I had just the opposite treatment from a dealer that we had bought 3 or 4 cars from already. We have bought 7 vehicles since then but not one visit even to them. No to service. No to parts. Definitely no to buying vehicles.
A while ago when shopping for a Rogue, the dealer added items I did not want . When questioned , indicated those addons were on the vehicle and could not be removed .Knowing he was not going to remove them, My response was OK leave them in, but reduce the price of the vehicle. when the answer was No, I said " call me if you change your mind. " Said" thank you" and walked away. By the time WE got to our vehicle the dealer had a change of heart and removed the charges. { $ 2,000} . The only piece of advice I can give is be prepared to walk if you don' t get the deal you want.
It's harder for the larger people. Every time the chore comes around I dream of things and pictures and then go sit in it and remember. I don't fit in a Honda, or God help me Subaru. I only fit in a Camary that has the gizmo to lower the seat or if I could ever find the unicorn car with now sun/moon roof.@@leecowell8165
Almost bought an Audi A3 several years ago, had reached a cash deal with sales person, then finance manager actually came out and tried to talk us into leasing it, with "ordinary wear" insurance. Said we weren't interested. She kept it up. We got up and left.
Thank you guys! My mom and dad used to teach me how to live my life, but my dad had a stroke and my mom developed bipolar disorder. It has become hard to live without any guidance, and to be vulnerable and honest, these videos remind me so much of what my parents used to say to me. My dad would have said exactly the same things. Thank you guys for all of this, and for looking out for normal good hearted individuals like me who just have it rough out here! Only downside is it makes me miss my parents
I just bought my first car this week! The internet price was $10,495, and out the door I ended up paying $10,800. If it wasn’t for this channel, I wouldn’t have gained all the knowledge of the car dealership inudstry, and how to negotiate pricing. I felt very confident going into the dealership and even the salesperson said I was a tough negotiator! Thank you for what you do!❤
Wished I watch them before I purchase my car back in 2021. I’m paying triple. And I also treated in my old car which was pretty brand new. I feel like I got ripped off and I get upset every time I think about it. I can’t even enjoy my car.😢
@@johnstarks32 I was able to talk him down to $9,300, so it ended up mostly being the fees and registration at the end. But I’m glad I was able to negotiate better prepared.
@redi8953 Try to move on, enjoy your car. We all make mistakes, and live and learn. I hope we'll all make better decisions the next time we need to buy a car. 😊
I like the part in the negotiations process where you get up to leave and they tell you that the deal that's on the table will go away. My two responses are "then it's obviously not the deal for me" and "If I was interested in the deal on the table I wouldn't be leaving". I've lost track of how many "deals" I've walked away from only to have them chase after you and/or call you later to try to win you back.
I knew how the game was played, and I bought my Mustang when they called me up the next day and told me to come on in. I then got another $200 off because they showed weakness.
So sick of the scams of "SUBSCRIPTION" I want a vehicle with the options I PAID for, not one I have to RENT things like remote start, heated seats, navigation, etc. Its purely greed and a SCAM
Sometimes you have no choice and it's infuriating. My 2023 GMC came with an Onstar subscription for three years as an included "Option" for $1,500. It was built into the truck, could not remove it whether you wanted it or not.
@Natanb I agree with your comment I guess that is what the traditional dealership has numbered days ahead they have been gouging the public for far to long and it is time for this model for car buying to go away....
@@norvellharris1792 when I have a good dealer, I actually prefer to have that in-person option -- especially when buying a car that i have never driven before -- i want the inventory to be in stock and the chance to experience the car in person. Also, if I don't have a good dealer near me, I end up finding a good mechanic nearby to help for unexpected questions or issues. You may be able to relate if you have been banking with a financial institution that had local branches all over and has now closed down a bunch of their branches. True, we rarely need the local branch due to online banking, but when we do need one, it's usually IMPORTANT. Therefore, i would like to see the model changed, but not totally gone (aka not restricted to online buys only).
South East Toyota is ruthless and I would never deal with them again if I were to buy another Toyota. Further, is asking what the buy-rate is. This is a big one to remember. Before going know what your credit worthiness is and have a pre-approval lined up. We did this recently for our teenage son. Dealer wanted 8.5% on a used car and we were able to get him pre-approved through a credit union at 5.99%. The dealer was charging us an additional 2.5%
I was shopping for my daughter once back in the 1990s. We had $25,000 in the bank to pay for a jeep she wanted. One salesman at a dealership started talking to us, and I told him what we had in the bank. He had a gang of newbies standing around. He acted like he was doing us a favor to sell us the jeep but not for our price. We left and went to another dealer 30 minutes away. I told the salesman there the same story. We wrapped up the deal immediately. The arrogant salesman was at the Greenbriar dealership in Chesapeake Virginia. I have never been back since.
pre visit; do your homework. price, dealer reputation, recalls, etc etc. 1/ be a walk-in. 2/ wear a body cam. 3/ tour the lot and photograph the window stickers. 4/ answer no questions and request a test drive. if no drive, leave immediately. 5/ if drive and you like, then say I will pay you $xx all inclusive. 6/ if dealer does not accept, leave and buy online.
I did something similar when I bought my used pickup from a dealership. I told them I knew how long this truck has been there and how it's now considered aging inventory. I also made sure to ask about any maintenance they performed and what I thought it would need. After all that I told them what I was willing to pay right here right now and if I didn't pay it I walked. They tried fighting me on the price all the way down to what I wanted but ultimately I stuck to it. Didn't take very long and I got it for 4k less than what they wanted and this was a dealership that advertised "No haggle pricing".
Good on you. Alot of people don't mind carrying debt so a low monthly payment is super important to them. I hate debt so to me...how much will be in my bank account when I leave here is paramount.
Did the same thing 30 years buying a new F-150; prep sticker under the hood said it'd been on the lot for 6 months. I knew his invoice cost up front, told him I wasn't giving him more than 5% profit, or he could continue paying tax on it being in his inventory. Must have gotten up to leave 3 times, he finally agreed
Of course, dealerships that advertise "no haggle" pricing want you to believe that they've already reduced their price to "rock bottom" - which, of course, is nonsense. But no one is holding a gun to your head to accept their price, and there is no law against you making an offer; if they decline your offer, you walk. I sold cars briefly a long time ago, and one of the pearls of wisdom (from the dealer's perspective) I learned is that "you can ALWAYS get another car, but you can't always get another customer".
I went to a dealer once that basically talked to me for an hour about the car I wanted. When I got up to leave after that hour he told me I "OWED" him the purchase! That of course really PISSED ME OFF! When he said that, there was NO WAY I WOULD EVER BUY FROM HIM! You don't OWE anyone for talking to them. It was MY TIME he used as well as his. I didn't OWE him for his investment of time.
Years ago I was dealing on a new car. I wanted in the sales agreement that in no way would I accept the car if they added a dealership name sticker on the vehicle. At one point the owner of the dealership came over to ask me why I didn’t want his name on the car. I told him it was free advertising I didn’t want to support. I said, give me a good deal and good service and my word of mouth will do more for you than that sticker ever will. He said, fair enough and walked away.
I did that too. Unfortunately when it came time to pick up and pay for the veh8cle, the sticker was on it. I tore my check up in front of him and walked out. About a week later the sales person called and said it was now ready without the sticker. I politely told him that I no longer would trust him and that I was looking elsewhere and my "word of mouth" advertising would not be good.
I bought a car that had a dealer added anti-theft device, they apparently added it to all of their cars. It was $500 and told him I wasn't going to pay for it. "Well if you don't want your car protected bla, bla, bla." They started lowering the price and I kept saying no. They finally asked me to make them a reasonable offer, I said "I'll let you leave it on the car at no charge to you."
30 years ago I bought a house and on the offer letter it said the blinds fireplace screen and the ceiling fans are negotiable I said if you wanna leave them I'll take them I still have them
I really appreciate this video. I'm kinda the car guru in my family. My Dad passed and he was the one that knew how to buy and sell vehicles. I remember one time he took a car home overnight and the salesman paid for dinner for our family! Not sure how he negotiated that but I've admired folks that have good insight on buying cars. Thank you!
This is probably the single most important aspect of buying a car. Getting emotionally invested in a vehicle can cost real, actual money if you're not willing to let the opportunity go.
My Dad has walked away many times, only to get a phone call a few days later, asking to come back because they want to make a deal. He never paid more than he was willing to pay. I've walked and gotten a better deal elsewhere. Gotta be willing to walk.
My first couple of experiences at car dealerships when I was in my 20's shaped my approach to buying new cars and has saved me a fortune over the last 35 years. I keep cars over 10 years and mostly buy used.
@@travis8665 You lose like 30% of the value of your car as soon as you drive it off the lot. New cars with full retail price is a scam. These 40-50k cars should be 20k.
. Years ago I compared the cost of 2 cars. I added up initial cost plus repairs (not oil changes), then figured the resell price and divided by the number of miles I’d driven the car. One was an old used Toyota bought from my sister, and one was a Toyota I bought new then resold years later. They each cost me $.28 per mile. I decided I’d rather drive new cars.
So glad I found this channel. A couple months ago I was window shopping (thank god I wasn't ready to purchase) & I walked into eastern motors so clueless & goofy. I did literally everything y'all say not too😂. Now when I go back im ready,
Piece of advice...don't see the same salesperson. Act like you are brand new. If they know you've been there before there less likely to negotiate because you've already come back once.
A few years ago I stopped by a GMC dealership. I had already done my research and knew what rebates etc were offered. When I asked the salesman, he didn't know and the Mgr was "in a meeting". I left there, went to the GMC dealership in the neighboring County, they knew all the info and I bought that truck on the spot. On the way home, I stopped by the 1st dealer and told the salesman, let them know what their meeting just cost them.
A number of years ago I had purchased a car. I was having the seats replaced with an upgrade. When I went to pick it up a few days later they had ALSO added pin-stripes (which I had NOT asked for). The salesman then tried to add the cost to the bill. When I told him I was not paying for it he said they would have to remove them. I asked if they would somehow get back any money for the removal. When he said "No... not really" I told him to leave the stripes on... and I'm not paying for them and if he pushed it the whole deal was off. I got free stripes.
I went through all the fees on mine, came up with the total I didn't agree with, and told them to cut the price by that much. Told them I didn't care what items they cut, just as long as I got the total. Walked out with $4000 less on a $25000 car. I wasn't about to argue line by line.
I've got a slightly different take on the out-the-door price. I ask for this (sometimes I've called it the on-the-road price). Here's my take: I don't care to see a breakdown. I've told the salesperson the model and the options I want. I say if you want to add extra stuff (pin striping, undercoating, advertising fee, VIN etching, whatever), then you'll just be making your price higher than the guy down the street who doesn't add those things. Getting the sale with me will happen only if you leave off the unnecessary stuff and figure in the minimum profit that you're willing to take.
Ex husband and I bought a car back in 1988, end of model year closeouts. Dealer had an ad in the paper that they had 4 vehicles at $7788. You'd think they were the same, right? They weren't. I chose my favorite color of the four available and it ends up it had a top of the line radio, pinstriping and I forget the other dealer upgrade. Salesperson did a solid when we sat down to negotiate. "the ad in the paper quoted price for these 4 vehicles, and this one has extras. Consider it your lucky day, because I'm not going to charge you for them." That sealed the deal. Over the next 16 years, every vehicle I purchased came from that dealership. Wish I had that dealership where I live now.
Back in 1992 I wanted to buy a Toyota MR2 sports car (I live in the Pittsburgh area and the Toyota dealership was in a suburb called Moon Township). The dealership told me the vehicle is so popular they sell them as soon as the delivery truck arrives and at no discount. Fortunately for me, I worked at US Airways and had to fly to Reno, NV on business. While there, I stopped at Reno Toyota where they had 3 MR2’s sitting on their lot. I approached the salesman and inquired about the vehicles. He told me that Reno Nevada is snow country and they mainly sell the 4 WD vehicles and the MR2’s just sit. I made an offer of 2k below their invoice, they countered $1500 under invoice. I made the deal and drove my new MR2 across country back to my home in Western Pennsylvania!
1. Set up your financing with the bank and never the dealership. 2. Determine the dealer’s inventory to make sure they actually possess what you want. “Oh sure, we can get it” is crap. Obtaining something not on their lot costs money. Find the dealership with the vehicle that you want (usually available online). Negotiate with them. 3. Find as best you can the dealer’s cost (Consumer Reports or TrueCar). 4. Calculate your out the door cost without dealer profit as a floor to negotiations. 5. Call up (do NOT go in) and ask for the out-the-door price for the vehicle (specifying the VIN). The few who refuse to negotiate by phone beautifully identify themselves as people not worth dealing with. Why do you need my ass in your chair? Hanging up is easier than walking out. 6. Shamelessly and secretly play one dealer off of another (they have zero scruples, why should you). 7. Only actually walk into the dealership when you have obtained from the dealer, an emailed scanned copy of the completed sales contract with the out the door price on it and the vehicle VIN. In California, that is form 553-CA. You are looking for the number on line 7. When I picked up my car, I had another dealer’s 553-A in my pocket. That’s leverage. 8. If possible, purchase the car on December 31, it’s the end of the year and end of the quarter and dealerships/manufacturers are often highly motivated to close out the year with as many sales as possible. Do all your homework before calling them up on New Year’s Eve. They have very few customers that day, and will be willing to talk. 9. Always have non-warranty work done by an independent shop. 10. As you glide away from the dealership in your new car and the sales manager is giving you the finger in the rearview mirror, you done good.
Huge dealership in my area listed a car for 6999. When I got there they said it was an error, actually 7999. Then they had 2400 reconditioning fee, 999 Dealer fee, some kind of “required” warranty for 1895 and the out the door was about double the list price they had in the website. Needless to say I walked out
1. What’s the Out the Door Price? 1.a Are all of those things required? 2. Why do I need to pay for the accessories I didn’t want or ask for? 3. What is the Buy-rate on this loan (if financing)? 3a. How much are you marketing up the buy-rate to the sell rate?
Dealer counter measures: 1. Instead of providing a monthly payment breakdown, give the customer a really high OTD price (MSRP + Tax and Fees + add-ons + 60 mo finance @higher tier 1 sell rate APR). 2. Let me talk to finance and see what I can do x 3 times (back and forth dragging out the deal and see if the customer give up first). Then may be come back with $500-$2000 off by removing some of the "dealer claimed mandatory" add-ons. (What they actually do is to calculate what their cost on the add-ons and what their profit will be after dropping a couple really low cost add-ons). 3. I don't have that information with me and you can ask finance when you meet them 4. Once the customers are in finance they are less likely to leave the table as they have invested 2 hours into the test drive, pre-negotiation, and waiting phase. Buyer counter-counter measures: 1. Be sure to check out CarEdge, TrueCar, Cars, and KBB to get a sense on the market price of the new/used vehicle. 2. Many of the add-ons are useless (3M paint protection, wheel-locks, VIN etching, 3rd party security system) 2a. Some add-ons that are worth it: (All weather package, cargo cover, cargo net, roof rail). 3. Get to know the rates better with Credit Union. 4. Provide much more down payment and skip out all the GAP insurance and extended warranty BS.
Something to add to the buyer counter-counter measure 2. 2. If they insist that some add ons cannot be negotiated, Kimberly Kline worked in F&I for years and points out that “dealer claimed mandatory” add ons have a contract that you sign. Ask for that paper and look for something called a DECLINATION CLAUSE. That way you can deny it and I’m not sure there’s anything they can do. Bunch of liars and thieves to tell you it’s required to get those options.
The out the door price is simple the dealer's initial offer to sell. Only a fool pays the dealer's initial offer. As tax and registration are fixed by the state, you really only need to concentrate on the price. Note, the price includes the price of the vehicle plus any add-ons plus any fake fee (such as a doc fee). So, it the dealer's price offer is $30,000 and the dealer has add-ons of $2,000 plus a fake doc fee (any fee which is taxed is a fake fee) of $500, the actual price is $32,500. When you apply for a loan through a dealer the F&I manager contacts one or more of the financing sources the dealer uses. Those finance sources will return with an offer to finance at a specified interest rate. That rate is the buy rate. F&I managers, the most dangerous person in any car dealership, is legally allowed to increase that rate but they are not required to disclose this rate bump to the customer. The smart customer always demands, not asks, the F&I manager reveal the buy rate. If the F&I manager refuses you can be 100 percent certain that manager has bumped the rate. Often this bump is up to 2 percent, so a 5 percent buy rate is presented to the customer at 7 percent. If the customer accepts this scam, the F&I manager receives a hefty spiff from the bank. You do not have to accept any add-on. You can always refuse and you can always walk away if the dealer refuses to remove the add-ons. Never be afraid to walk away.
Best advice i always give don't be afraid to stand up and walk away from a bad deal, you will be surprised how quickly things can change in your favor.
One thing I think buyers should do is to have a quota of let me "go ask my manager." For example, if the sales person gets up one than once, walk away. Let them go back to an open table. I knew a person that used to do this.
To me it depends on the problems. If there's multiple problems they'll have to get up multiple times. Unless the manager just stays at the table and that's not going to happen with multiple issues.
@@flychomperfly yup. If you have to go ask your manager, it means I need to speak to the manager directly. If you come back without the manager, I'm leaving.
I waa car shopping with my daughter. I told her that the salesman will leave and comeback with his manager to makbea better.deal. Daughter said I was wrong "Why would he do that" ? I was vindicated in 3 minutes. The manager came in and his exact words were " What can we do to make a deal tonight? Daughter was amazed. We got a car from another dealer
You guys missed a really important one. My wife and i had limited credit but owed nothing and owned our home, property and vehicles. The wife wanted a new - er car. I wanted to get a kittle credit so wanted a short term loan to pay off even quicker than the 2 or 3 year term. Heres the Q: Is there any penalty for early payoff of the loan? In many cases there are. We paid off a 3 year loan in one year. If we had not asked the first loan offer would have charges us 699$$ early termination fee. We went with a credit union loan that had not added fees for anything but late payments. Good questions but that one us also important.
Credit Ratings are a scam. If you can’t pay cash for a car or don’t want to you can’t afford it. Break the matrix, post credit score life is wonderful :-)
Just a shout out. Saturday I bought a used car. Thanks to watching your videos I was able to set a budget price. When I got there I drove the car and when I returned the salesman asked if I liked it. i told him I did and said all be need to do is set the price. "What is the out the door price"? It was listed for 16,500 not including sales tax doc fee or title transfer. In literally five minutes we negotiated to $16,250 (my budget was $16K) out the door including 950 sales tax, 250 doc and 10 title transfer. The extra 250 did not bother me because it had four new Z rated tires and the car was a one owner from a family member (confirmed by a telecon to get the radio code since the battery had been removed). Granted this was a mom and pop dealership, but it was nice to not have to do the dance,
Just purchased a new 2024 vehicle after watching many of your videos , it paid off ! After walking from a couple of dealerships , that of which one kept begging me to come back and would meet my terms and me telling them they had their chance and I wouldn't deal with anyone that tried to cheat me out of so much money . Got my new SUV under MSRP and all of the add ons were taken off the price too ! Thanks !
My absolute favorite,salesman asks,"are you the decision maker"?My response 'yes,are you the decision maker"?His response'',no,my manager is".My response,"since you cannot make a decision,I will deal directly with the person that can make decisions".Now,get your manager for me''!(Salesman is now aghast and is totally off balance in the transaction,and the control is now with me.)
I hate the game they play with talking to the saes manager. "I fought like hell with my manager. I almost got fired for standing up for you. " So I arrange with a friend to be my "wife". When they pull the sales manager trick I tell them i need to talk to my wife. Then I call my friend and have a "pretend" argument. I hang up and tell the salesman she won't go for the deal. The salesman usually suggests that she comes in. Then I ask what good would that do, because your sales manager is already here and wont talk to me.
NEVER ask, "WHY do I have to pay for these add-ons." It is up to you to say, "I will NOT pay for these add-ons. Delete them." End of discussion. Stop asking other people for permission for things in your life.
what if the adds on are installed in the vehicle from the manufacturer, is the dealer then going to send back the car to the manufacturer to remove those items?
@@UtubeAdviser Then that should be built in on the price. Ever price a car on KBB? They always ask what features the car has; that's why there's a difference in trim lines.
Not exactly on this line of thinking but I had to share it. The best purchase I ever made was buying a Ford Excursion the first time gas hit $4 a gallon and they were practically trying to give them away. I got a 5 year old Excursion with 52,000 miles on it for $7995. I still have that vehicle and it's now 20 years old.
As a former sales person myself I have a better solution to number 2, TELL the dealer to remove the add on's or find me the same vehicle without all the add on's or I'm going somewhere else, you can also do this with the F&I guy, telling him you don't mind paying a small doc fee but if it's over $300-400 walk away and the same for extended warranty's and gap insurance if it's over $1000 a year walk away, cause even at that they are still making money and my wife is an F&I manager so I know this to be true
Had a dealer once want to charge me $400 for nitrogen tire fill. I don't him no way but his response was the nitorgen was already in the tires. I asked if their service dept had a compressor. He said sure they do. I replied "Ok, let the nitrogen out of the tires and refill them with air. If you won't do that, I'll leave the dealership." They left the nitrogen in and took off the $400.
@@jeremyoboe Exactly my point. When you buy a new car they will charge you whatever they can for "Dealer Add-ons" including nitrogen fill. I've seen the $400 attempted charge with my own eyes.
Lol nitrogen is a scam lol all air contains nitrogen and the first time you have to add air your just adding regular air. Scam to get money out of people lol
Thank you SO much for all the help! I watched about a dozen of your videos over the past 4 or 5 months. Ultimately asked one dealer for out the door, worked with my credit union's car concierge and told him our firm out the door. He did all the legwork. I didn't have to haggle with anyone. My perfect color in a used car was found, the dealer wasn't willing to budge, but two hours later, the concierge found a 2020 with only 11,000 miles at my price. In fact, they dropped $400 UNDER that price because we were going to transfer a tag. Forgot the tag was in my husband's name, this vehicle was only titled in my name. Dealer F&I guy didn't want to redo paperwork, so we got tags for free. So, $400 under my firm out the door price and free tags, too. Wouldn't have done any of that without all your sound advice.
Good advice. When I bought my 911 turbo I made them an offer that was 5% below MSRP. They said no. I waited a month and sent them an email telling them that I noticed the car was still for sale and that my original offer was still good and they agreed with the price.
Hi! I want to say thank you guys for Everything! I don’t know where to go to leave a glowing review, so I’m dropping it here. With the advice on this channel and resources on your website I was able to save thousands on the new car I just bought. Between knowing to about the out the door price and haggling that, having a quote for my trade on hand and having the 10y bumper to bumper warranty price you offered on your website. I was able to talk to the car dealer in their language and bring my new car dream into reality. Thank you thank you thank you!
I started reading about add ons. Alan Jay in Tampa 3k mandatory, Airport in Orlando 3K add ons again mandatory. I told both of them I wouldn't even discuss them. I wouldn't even visit the lot to look at the car if add ons were mandatory. I asked one of them if they would charge a commercial customer buying fleet vehicles those add ons and I swear to god this lady told me that "they legally couldn't pick and choose what vehicles they put the add ons on".
I always remember on the old Seinfeld show when Elaine's boyfriend was selling Jerry a car. Jerry asked him about something added to the car, and he replied "we don't even know what it is", lol. Every car I have bought since seeing that I think about it and start with the questions. Love the channel, keep up the good work!
LOL! I remember that episode. I think Jerry also brought George along with him to help with the car purchase negotiations, but George was essentially useless as he (George) created some personal issue with a candy vending machine at the dealership. 😁😁
One thing I always advise my friends and family (whether they accept it or not) is to know what the loan at the bank will cost them. Sometimes people do not even realize they might have an option to use their line of credit. Remember that you can always put lump sums onto that one. If you are already over your neck in debt this might not be an option, I just wanted to put it out there. Know your credit score and be aware that if you go through the dealership there might be two or three inquires on your account that was done by the various banks that the dealer tries to close with. I prefer to know what my rate is at the bank, that I can repay my LOC within two years or so and that the vehicle is mine (no lien on it).
Back when interest rates were better I used to borrow the amount against my savings/CD. If I was earning 5% and the loan was 8% I ended up paying 3% overall.
Right. Who says you gotta finance through a dealer? My credit union is always sending me vehicle loan offers due to my long standing account (and probably excellent credit).
Went out to buy a car today and was ready to be on the attack with all the info I've learned here. Guy got me the OTD price when I asked, asked me how I was paying and when I told him I hadn't decided yet he didn't mind. Car was reasonably priced. No added fees on the price breakdown, and I delt only with him for nearly the entire transaction. Only met with finance for like 15 mins after my credit check. Was much different from the last time I bought a car.
Literally exactly what happened to me. I was expecting them to sweat some but nope. They were calm, cool and collected and weren’t phased by my questions/demands. I ultimately got what I wanted and didn’t have to fight much to get it. No bs fees at all to negotiate off and no pressure at all to buy extended warranty/gap, etc. It still wasn’t the quickest purchase, but was the best I’ve ever had. For once, I felt like I didn’t get screwed.
That is how I sell cars. We don't mark up interest or push add on. By law we have to offer gap and extended warranties, but if you don't want it so be it. No F&I guy or closer. The salesman processes your credit app. People love working with one person and we get long time repeat customers. We also never marked up one vehicle during the trouble times. We are not a non profit, but we aren't trying to pay the bills off your one sale.
I told the dealer I didn’t want the wheel locks they had installed. Said they couldn’t do anything. 5 minutes after I walked out, a miracle happened. They were suddenly not going to charge me.
This happened yesterday with an Oregon Toyota dealership. I was interested in a RAV 4 Prime, plug-in hybrid. The first response I got from the salesman showed MSRP plus dealer add-ons plus a $6,000 "dealer adjustment". This vehicle is kind of hard to find. I told them "No. I'll ask again when RAV 4 Prime's aren't so rare and you're more flexible. Good luck." Radio silence, then, "We'll cut the $6,000 to $3,000." I replied, "No, I'll pay MSRP plus 3% maximum." Radio silence, then, "OK. We can do that, but you have to accept the dealer add-ons because we have a contract with a local company to equip all our cars that way." I replied, "No, I'll pay for the things I want but not for the things I don't want." Radio silence, then, "I don't think my manager will agree to that." To which I answered, "Okay. You run your store your own way and I'll keep looking." So far, radio silence...
Don’t budge. Only give your business to a dealer who meets you on your terms. More often than not, you’ve got to be willing to walk out and only stay for the ones who don’t waste your time with their “market adjustment” BS
Back in the mid 80's they built a brand new Acura dealership down the road in Houston. My wife wanted a new car. I didn't. On top of that, I wasn't that sure I wanted to be married that much longer. She said she was going to buy a car whether I participated or not. So I went in with an attitude. After negotiations on price was over, I was handed the final documents. I reviewed the list of features. $250 for floor mats. "Take them out". OK. Seat treatment ($250) to prevent staining (Scothchguard). I said "Take it off". They said they couldn't. I said swap out the seats. Long after the dealership closed, and we were the only ones in the dealership, the salesman finally said "What does it take to sell you the car?". My answer "Free AC or we walk. Because I give zero shytes if I buy this car". He went into the back room and woke up the sales manager. We got the car with free AC. In Houston. Never ever go in determined to buy a car. Walk if you don't get what you want. If they let you walk then you are probably at the limit.
At my last car purchase, the dealership wanted 400 dollars more because they had to put new tires on it. I literally leaned back in the chair and said are you kidding me. You had to put tires on it to sell it right. Needless to say, the crooks threw in the tires.
Went shopping with my dad. Poor dealership had clue they did all their financing through his bank and he pulled all needed info on trucks and lending. He had enough and looked at the guy and said "Apparently you don't want to make a deal because I know exactly how much each truck we looked at today cost you, up to how much the loan is for since I work at X bank."
As far as financing, isn’t it better to walk into the dealership after securing a loan from the bank. The last car I financed was in 2010. I’m not sure if things have changed , but a loan approval for up 25k was given by the bank. Then I went shopping and used the two other methods mentioned in this video.
I worked selling new cars for years and here's the deal. Dealerships make bugger all off of selling a new car. People research the price and you're lucky to sell a new car for 5% over cost. Where the dealerships make their killing is on warranty work. The service department basically funds the whole operation, so the longer your warranty, the more you get fleeced.
When buying a new car, I know the price I want to pay (used to be below MSRP) and the amount I want for my trade in ( usually more than KBB) and the difference is the amount I want to finance. If they can hit that number, we’re good; I don’t care how they do it. If not, I walk. Last time I did that, I walked. Once I got out of the showroom, the sales mgr came out and said OK.
I’ve always had outside financing secured before I step on the lot. I tell the dealership if they can match the rate I’m already getting I’ll go with them. They never can because I always have the lowest rate. The next tactic they try is to get me to sign “backup financing” in case my outside financing doesn’t go through. I politely but firmly refuse. They make me wait but they eventually break. They want to move metal.
You should talk about buying a car with bad credit. How do we deal with them . Can we get a out the door price as well . Or we have to bend to what the dealer wants . We need a videos for people with not good credit that still qualify to buy brand new cars
Last car that I bought is a 2015 Taurus. Stickered at $33,500 and after retirees discount and rebates, walked out paying $27,000. No add ons. My salesman who I had previously bought a super crew from knew I could buy anywhere.
I remember years ago in the US I could just have the fleet manager email me the contract with all the out the door numbers. I would always work backwards from the out the door price. Today I would never buy a new car in America. Not with the mandated dealer add on’s, market adjustments, forcing people on financing due to rebates from the banks, etc. In our country it’s still the out the door price and no dealer add on’s.
Neither dealer add-ons, market adjustments, or dealer financing are mandatory. In fact, the only mandatory amounts in the US are those fees imposed by the government. If the thing is taxed it is always negotiable.
Many years ago I bought a Dodge caravan in a dealership, the negotiation was long and even got kind of nasty, finally settled on a price of $15,500. While sitting and waiting for the vehicle I was handed the final invoice- the price was $15,550. I was fed up- took it and found the salesman and handed it back to him, said either the extra $50 comes off or forget it. They took it off.
Early on I figured out that I needed the "out the door price" in writing before I went back to pay for the car. Even though it's been a few years since we have financed it amazes me what they try and add on dollar wise after you make the deal and before you go to the person making it final. The last car we bought (2019) was a Camry and between the salesman's price and what they wanted me to write the check for was $2500 more. They said I must have "misunderstood" the price I was given and he looked shocked when I handed him the salesman's price, with the sales managers signature. It was funny watching him sweat.... LOL
My experience is the price they give you is only good RIGHT THEN, and they will NOT put it in writing so you can take it to the next dealership…at least not in Houston Tx. The only thing I would add IS IF YOU ARE BENT ON TRADING YOUR VEHICLE IN, GET READY TO BE SCREWED! You NEED to sale it in a private sale, or at least take it to car max and sale it to them……if you are upside down, well you have to make up the difference or go ahead get that shiny new car and KNOW you just got screwed, and you don’t care!
@@15packman Don't ever sell your car to CarMax if you have the time to sell it elsewhere. The CarMax business model of 'no negotiations' works for when you sell as well as when you buy. When you bring in your car _they_ will inspect it & test drive it, and then _they_ will give you a sale price, which is typically a low-ball price - and which is non-negotiable. CarMax is good if you have to sell a car quickly, otherwise: avoid.
@@rudewalrus5636 ehhhh, sometimes yes, sometimes no. I've gotten great deals selling cars to Car Max before. Once we had a 09' Acadia with a cylinder that kept cracking spark plugs and misfiring. I was hoping to get like 3k for it, carmax gave me 5K. I took it and ran
The last time I bought a new, "off the showroom floor" car was 2004. I still have that car, and it's running just fine. But I don't have ANY of those "extras" I saw on one of your dealer add-on lists. And I haven't needed ANY of them. The car biz is such a joke these days. If I was buying a new car today I wouldn't "ask" why do I need those extras. . .I'd TELL them to remove them from the contract, and if they balked at that I'd remove myself from the dealership.
Several years ago “2012” I was shopping for a new truck. I had sold my previous one and already had financing. I went to my local dealership and found the truck I wanted and told them what I would pay. They came back at 33500. I walked. I then called another dealership in another town. Told them that my local dealership wanted 31500 “yes, I lied” and asked if they could beat it. They said yes. They would sell it for 30500. I then called another dealership and asked if they could beat the 29500. “Lied again”The lady asked if that was tax and title included. It wasn’t, but I said yes. She did some math and said that she could sell me the exact truck I wanted out the door for 28900. I made one more call and knew it was getting close. Told the salesman 28500 with tax and title and asked if he could beat it. He said yes, but not by much. Said they could do 27900. I had them email the number to me. I then made a drive to get the truck, but they didn’t have it in stock and said it would take a couple days. Meantime they called me and said they made a mistake on a rebate and it raised the price 700 dollars, but that they would eat half of it. Something to do with the sync system. I agreed. A few days later they drove the truck to my hometown. I was happy because it had the sync system which I wanted which is why I agreed to pay the bit extra. BUT,The truck they brought didn’t have the sync. What it did have was push button 4 WD and the upgraded transmission. I went to the salesman though and threw a fit. Asked where the sync was. He apologized for the miscommunication and said the sync was the problem with the price and the rebates. I was actually happy with the truck, but told them why would I pay an additional 350 dollars for less features. They ended up dropping the extra 350. I ended up buying a truck at 27900 out the door, when my hometown dealer wouldn’t budge below 33500 before taxes. It was the first time I ever felt that I wasn’t getting screwed by a dealership
This is the type of infomation John Public need to know. I (who don't own a vehicle) want to thank you for posting such an informative video for the public.
Never be afraid to walk away if you don't like the deal. Their job is to get you to say yes, and hand over your money. Make sure you are getting exactly what you want for that money.
A lot if dealers here have a ticket price on the maroni with msrp, and then have an addendum with $4000 more on price with bs like all weather mats, some just have a $3000 markup for nothing at all.
I was unemployed as an engineer for a few months and tried working at a Toyota dealership. The salespeople actually know nothing about the business. We only knew what the sales manager told us, and we never knew what was goin on in the finance department. So sales were two step. We got the customer into the finance office, essentially. We could give a price, or better yet get them into a lease, but once they went into finance it was they were different people when they came out. Lol. They either got rolled or left in a huff. I was there for about 40 days and tried to sell the used cars, they had much higher commissions. Lots of standing, walking, avoiding boring cold calls, and best of all, be “inspired” by a sales talk, which could be creative with our guy, zack justice. Lol. I quit when another opportunity opened up.
In Oklahoma, we do not pay taxes or registration at the dealership, and it's typically not worked into the deal. We take our invoice to a tag agency and pay them there. Creates yet, another middle man in our state.
Here's my story... years ago, pre-Frontier, I bought a Nissan mid-size truck. A negotiating point came with the huge "Nissan" decal on each side of the truck, which I did not want. I was told it couldn't be removed, and I responded with a $5k reduction in the price (figuring I was going to be a rolling billboard). I also asked for an additional $1k for the dealer decal on the gate. Guess what, both decals came off and I still got $3k off the price because I had to come back for the truck in 3 days so they could do the work.
My DH wanted a basic, used truck, in white, because Florida. We went to the Dodge dealer and the salesman was in training, so he showed us all the expensive, tricked-out trucks, none were white. At some point, DH was were in the finance office and asked what was the APR on the financing, but they could not come up with an answer - even the finance guy would not. I ended up going to sit in the lobby across the hall. Every once in a while he would call my name, and I would yell "is it white?" Somehow we left there and eventually bought from an actual used-car salesperson at a different dealership. She drove us around the whole east side of the county until we found a basic truck in gold, which was fine because she really did help us by finding us a reasonable offer. We still have that truck.
@@stevepreskitt283 In Florida because dirt where we live is the same color as sand, but maybe not so much in places like Indiana where the good dirt is almost black.
At most dealerships that I have dealt with the salesperson does not do the financials. They will do the initial work but when it comes to the financial breakdown the finance manager takes over and gives that breakdown. Before i would sign the contract I would go over every line item and have things removed that I don't need and don't want. When it came to dealer obli
Thanks to you guys, I had a good experience buying a new Mustang convertible on March 31. Advertised internet price was almost $5k BELOW MSRP, so I had a good starting point. Negotiated add ons down to 1k. Got OTD price, then bought nothing from the finance mgr. I almost felt bad. Its really hard to handle a skilled finance manager. Hate to say it, but do not assume he will be honest. To argue against the $4k extended warrantee, find out who supplies it to the dealer, like Apex or whatever and look up reviews. Will be many 1 star reviews for non payment etc. Show this to the "finance manager" after he makes his sales pitch. Unless you wreck a lot of cars, never get the gap.
As far as "dealer installed" items, a majority of the time they are NOT installed or applied to the vehicle unless or until the car has been sold. Many times they will ask you to return with the vehicle in a week so they can apply the paint and interior protection or the clear plastic paint protection or back in the day, the auto start/alarm system. This is because we all know that not every customer will want to buy those items/services. This is also helpful when you have to do a Locate/Dealer Swap/Trade. Although I have worked at one or two dealerships that used to install the alarm system and Lojac as soon as the cars were PDI'd, and if the customer wanted to buy them, the Make Ready technicians would activate them, and if the customer did not want them, it was faster and way easier to remove them and still be able to spot deliver the vehicle than try to install it or make an appointment to have it installed later.
Yup. I have never once had a salesman balk when I cross a bunch of add-ons off the deal. I say "I'm not paying for these", and they say "OK, no problem".
When I bought my last car, the only question I had for the dealer was how much did I need to cut a cheque for. I told him I didn’t want to know anything else about dealers fees, etc. After they tried some hocus locus stuff, they finally figured out that I wasn’t in need of a new car and I was willing to shop around. They managed to get me a good price, but only after accusing me of lying about the price of another car.
What's the problem with walking in and saying "I'm paying $X out the door, all inclusive" for this car and "you can add whatever you want so long as its that out the door price"? That's what I did when I bought my Kia Forte eight years ago. Got it for $14k Canadian out the door for the very base model (no AC, manual transmission). Used the "build" on Kia's site to determine the price and stuck with that, didn't negotiate beyond that.
That's historically worked well for me. Even better if you can get a written quote with the OTD price. I don't really care how they juggle the numbers to arrive at the final figure, so long as it corresponds to what's on the quote. I bought a car over the phone many years ago and had a signed quote faxed to me. The sales manager was rather unhappy when I went to pick the car up a couple of days later (they had to have it trucked from another dealership) and he tried to add on another $400 transportation fee, and I presented him with the quote he signed himself. The finance manager was even more unhappy when he discovered I already had financing in place for it. It was a good day.
The selling price is negotiable, the Manufacturers Suggested Retail Price is just that, SUGGESTED. HOWEVER, it DOES carry tax implications. If you ever WIN a new car, or a suite of new appliances, or anything else, the IRS is gonna look at the MSRP as your income.
My uncle, who was both an aviation and auto mechanic gave me these words of wisdom about dealer fees and add-ons: when in doubt, just walk out. His logic was they need the sale more than you need the car. Find another dealer more willing to work with you without the BS. Cheers....
I’ve worked for new car dealerships, and YEARS ago, they were really pushing undercoating. Way overpriced and they didn’t clean the underside well. Coating failures were constant, but unnoticeable usually.
I bought a used 2023 rx350h this week I negotiated the price the only thing on the bill of sale was 250 doc fee , title fee 20, registration fee 15 and tax. Now when i got to finance which I had everything ready from my credit union the finance guy did try and sell extra stuff which we declined. This was a large dealership and they sell new and used but the experience was pleasant overall I was surprised there was no going back and forth I gotta talk to the manager bs. I hate when sales guys are stringing you along....but it really important to get your ducks in a row before you even step foot on the lot. know your cc score, know the true value of your trade if planning on it. I dont like trading in personally, Use a loan calculator off the internet so you know what will cost you per month, with down payment, trade, tax and whatever else. The finance guy is not your friend he is also trying to sell you stuff do not buy it....its usually worthless or overpriced. You want zeibart get it done somewhere else later for way cheaper. Pay extra on the loan pay it off and keep the vehicle.
Good advice, car dealerships hate educated car buyers. If they don't think they can't rip you off, they'll just cut you loose. It happened to me several times already. These sleazy car dealerships would rather make 10k one car than 1k on 20 cars. They are waiting for some rich idiot who will just buy the car 15k over msrp without any questions. Toyota/subaru/lexus dealerships are the worst.
About 5 years ago, my wife wanted a particular car like one she had previously that got wrecked. We looked around quite a bit, and finally found the one she wanted. When we went into the dealership, we were told that they do not negotiate on used cars. The price is firm, take it or leave it. The salesman told us that with people looking everything up on the internet, there wasn't any room to negotiate. Since the price was one that we were willing to pay, we bought it. While the salesman was working up financing and what-all, she wrote a check for the car. That salesman was not happy. I guess he figured on adding on a bunch of financing and "ADMU" charges.
Good stuff, guys. At this point, I watch your videos more for entertainment (or maybe affirmation) than anything. Nice to see experienced Dad and son working together like this. If you end up shopping for a used vehicle, it seems that the dealer add-ons are even more prevalent. In fact, it's the norm rather than the exception. People should try to remember that there is only ONE reason for dealer add-ons (including extended warrantees): it's to increase the dealer's profits. A year ago, I walked after trying to buy a Corvette C6 Z06 after a hundred mile drive to get to the dealer. They insisted on keeping the add-ons, even after I had them remove them . . . and they kept creeping back into the deal. The sales manager was yelling for me to come back as I walked to my car in the parking lot. It was a small-car (Asian) dealership and they REALLY wanted to get rid of the Corvette. Sigh. One other thing for buyers: make sure you know what the dealer means by "out the door price" because they have several ways of fibbing on that item!
I didn't know about "bank rate" on my last car purchase, but I did get pre qualified at my local bank. So I mentioned my bank approved me for 2.5% lower than what they said. They went down 2%, and took off all but one of the extra items and I negotiated the total price minus that item. They even wanted to charge a "Convenience Fee". That's what they charge for offering soda/water/waiting area during negotiations(LOL!). $450.00. I often wonder how they sleep at night.
I had them say to me back in 2011 when I was leasing a truck ! We will give you a package price on install products on your truck for $899.00 to protect Paint , body and interior. I said it’s not my Truck it’s yours I’m renting ( leasing) it ! You want to do it you pay not me !
And they're paid again every time it's sold. Just like when taxes are taken out of your pay check. Then when you go to spend the remaining money, you pay more tax. What a world!
Even when a vehicle is gifted to you, the Motor Vehicles Dept. to get it registered you pay taxes there too. Pay tax on money earned from a legit job, buy groceries and other products you are taxed, all services rendered to you are taxed, the U.S. government even wants to tax Unearned Income given to you by family members, but what they don't know and you don't report is a grey area. There was a time you've purchased things online and it was not taxed, now it is. The Government wants to make people poorer.
I have worked for a bank for decades and getting gap insurance is a life saver. If you wreck your car and the value is already less when you leave the dealer and it goes down further you might not have enough to pay off the loan and then you have to carry it over into your next higher than normal interest rate right now. I have seen two people not get gap and had their car accidents and had to bring over 5k and the other 8k to a brand new loan.
Good video. Thanks for covering these item questions. Finally found a video that talks about "Why do I have to pay for these addon items?" I wasn't sure how to approach a sales person if these addons are on the window sticker sheets. I know most of the addons are not a mandatory item and hopefully we don't have to pay for them. There is also the added awful outrageous priced DOC fees that dealerships do. I mean come on 300-500 dollar Doc fees - for what??? to pay for your vacations. Thanks for the video, take care.
@@dallasbrat81 yea but docs fee go from $100 to $2000 ...why charge anything over $100 dollars If that's all it takes ? Especially at flagship dealers.
@@dallasbrat81 I’m not denying it’s real. I’m questioning how reasonable a $700 doc fee (what they charge in my area). The dealer can tell me it costs them $700 to process my transaction, and I’m gonna tell them they need to hire a consultant to work on their efficiency. It’s a profit source and a way to cover overhead (both physical and the cost of human capital). Don’t try to paint it as a processing fee like you’re doing $700 worth of work for me. It’s the car version of resort fees.
@@labachaterairlandesa ok in my state it was $500 . I know the state charges fees and handling costs . I think there are other fish to fry with negotiated car sales
@@dallasbrat81 Yes I know there will be DOC fees, but for 500 dollars???? If you are willing to pay for that in your other reply comment, fine with me, but I would question the dealer on the why so much. Most say it should be around 100 dollars. The license and registration doc fees are listed under another cost.
As a cash customer, I always determine my maximum out the door price and share that with the dealer. They can break down the numbers in a way that works best for them, but that is my absolute nonnegotiable ceiling. If they are unresponsive, I move on and they typically call me the next day. This tactic is effective at avoiding the emotional engagement they so desire to separate you from more money than is in my best interests.
Separate comment. Good program. I take care of my cars and so I haven't bought a new car in twenty years. It runs like I bought it yesterday. What I did was research all the incentives. Then I called my bank/insurance company conglomerate with the information. The conglomerate did the calls to 5 sales managers only and got me a good price. Another time I went into a dealership with the goal of buying a big black cadillac. I wasn't dressed up. No one was paying attention. Finally, an old man walked to talk to me and asked what I wanted. A left over from the past year, a dealer demo . . whatever. He said we have 140 lemons on the lot, what color do you want? Black. He said it was his last day on the job, he hated the co-workers and he wanted to make a super deal and teach them a lesson. We did the deal and the finance guy asked me who I knew because the margin was squeezed so hard.🙂
I went to Hyundai and it took me 90mins to get the OD price. I walked out and advised the people they not only wasted my time but I wasted theirs. They were pissed, but hey stop pissing around with customers.
😂. I had the same thing. I asked for OTD and I sat there for almost an hour. Nobody else came in and I ended up leaving after a hour and 15 min. They actually call me and ask where did i go and i asked them again for the OTD price which they never called back to give me. 😂
In my very limited experience, dealers make their profit on dealer add-ons, not the price of the car. I equate it to the movie theater that makes little to no money on the movie but makes it's major profit from the snack counter. The mark up on dealer add-ons and the movie theater snack bars are both ludicrous. When we bought our recent vehicle, the place we finally bought from said they didn't do dealer add-ons, so we bought there, and true to their word, they didn't do dealer add-ons. They did try to hold our feet to the fire in a heated sales pitch for the extended warranty. That was about a 45 minute sales session where the finance manager and I were really going at it. I don't think he was expecting any push back, but he got it.
I bought a 2015 Dodge Charger Scatpack. Chrysler offer me a Lifetime Bumper to Bumper Warranty for $3800 with $100.00 deductible. Best add-on I ever got.
Great warranty, but unfortunately they stopped offering those in 2019 to new customers. The idea was to stop car buyers from avoiding Dodge/Chrysler/Jeep over lousy reliability especially after 75k miles.
Thank you for your new car buying tips. Question... Should've say no to factory and port installed packages and accessories? Do we have to pay delivery processing and handling? Should we pay less than the MSRP?
No delivery fees and processing fees are negotiable. They usually fight hard to keep those on. So I've found the best way to negotiate is find a car on the lot you want. Find out their out the door price, and then say I want the car for X out the door price (usually below MSRP). If you can do that great, if not have a nice day and begin to walk out. 9 times out of 10 they either call you back or push for you to stay and come back with some lower number than their first. My lower X out the door price is also typically lower than their "special end of year price or advertised price". A lot of times when you see advertised $2,500 cash back, you can also expect them to lower the price of the car by that $2,500 if you tell them I want this car for X out the door. That is one line that is always able to be used to lower the price.
Guys, great stuff. I work at a large dealership in Northern, CA. With the brand I sell, dealer-added accessories are so a part of the culture, and often more than what we charge, that it's kind of grating when I hear customers say, "I didn't ask for them." I wanna say, "We know that you didn't ask for them but we're installing them anyway! lol Holding off on added accessories for inbound units is one thing, but when they get to the store they're installed on and billed to in-stock units, and this makes negotiating them off tougher. But that's part of working any car deal, what both parties are willing to do in the end.
Interesting to watch this after I've put a deposit down on a 2023 Prius Prime (for getting it through allocation). The dealer actually wound up being good about breaking down costs (and I've been able to confirm on Toyota's page on the VIN that's still going through shipment to dealer). There is some markup from Toyota for special color (red) and color protection with base price (and apparently with Toyota there's a $1,000 destination fee). There's just one add on from the dealer that's tinted window (they did say it's something they do with all their cars: I guess I could have asked if they needed to do that since I'll be getting it when it hits the lot). Well it's just over $400 and have read about how tint can help block some sun heat. I'm paying cash. From what I can tell, the dealer is trying to make money off my trade in. If I was looking for the best deal, I'd probably do best trying to sell my Prius 2010 myself. Their trade in value covers all the sales tax, tag, and dealer fees (which in GA, recently we've had a large increase in tag tax). Maybe they were being a bit conservative with the trade in value because an older hybrid battery is always the "iffy" factor. But then also, I've seen that dealers want to make at least 2X what they buy in their used store. At least with all I'm hearing about huge markups with Toyota Dealers, my price doesn't seem to be that way (and this also with a car with very high demand now).
When I was doing F&I, Maryland allowed dealers to charge 3% over the buy rate. It has since been changed to 2%. Often times, just to move a vehicle the GSM would tell us to put it out at the buy rate, which meant we made no money on the back end, but the they did by moving a unit.
I mentioned the 3% cash back from the factory which was the norm many years ago. He denied it then I asked a relative who sold new cars(different makes) and claimed the dealership does get a % refund from each new car sale. I went to a different dealership 50 miles away and negotiated the new truck with a price of 2% over factory price. I saved about $1,200. Better in my pocket than theirs.
@@mr.d.4175 The % back I was referring to was from the lenders. Not the manufacturers. However, the manufacturers do pay kickbacks and bonuses for moving certain models.
I only talk about out the door prices. I hate buying a vehicle so much my current truck is 22 years old.
My Toyota Highlander is a 2002 and I am arming myself to go into battle now
I get it and in the same situation. Hell with the dealers is my thoughts!
@@Ponette-1776maybe go in wearing a Sum Ari sword?
What’s the process for having your own financing?
I keep fixing mine. I had some terrible experiences. Should have walked. But o was young dumb and stupid
The fourth thing is to get up and walk out the door. I recently purchased a used truck where the price was $16,495. When the salesman handed me the paperwork to sign the price was around $19,000 plus tax. I told him I neither needed or wanted their "interior protection package" their "exterior protection package" for roughly $1,700. He said they charged all of their customers those fees. I told him I don't pay those fees. During the negotiations I got up and started to leave 3 times. I did pay their $324.24 "processing fee" which should be part of their overhead but only because I really wanted the vehicle. I also paid sales tax, but to my state. Folks need to remember that the dealer, or any seller, wants your money more than they want the vehicle, otherwise it wouldn't be for sale.
THANK YOU
Facts
So in other words the dealer won, since they bait and switched the price and you paid it. Yes, you reduced the price, but still paid a higher price than what was originally quoted. Next time, follow your own advice, walk out the door, and KEEP GOING.
Great information! The feeling you are going to the showers is the most bewildering part of the car purchase. Thanks for an edge when going in.
Here in Australia any advertised price of any product must include the taxes, any motor vehicle price advertised must be the drive away price. It's the law .
I had one customer, 17 years ago, tell me "I don't want the bedliner or the step bars you guys put on the truck." It was funny because he also said "They look nice but the step bars just ain't my style, look at me, I'm an old retired dude." We had no problem taking them off. The only issue was management wanted to charge him $150 to remove the liner and step bars. I told the manager no, I'll pay it. It sounds crazy to some people but if I had a really good experience with a customer I'd pay for something for them if it wasn't too much. I didn't do it often but I would do it. Anyway, he came back a week later and asked if I knew a good after market place for running boards. I asked, why didn't you ask me when you bought the truck and he said cause I'm retired. I don't do two things at once anymore, just ask my wife. lol. I called a place we used a lot for aftermarket accessories and set him up an appointment and even got him a 10% discount. Seven months later he bought a new car for his wife. Four months after that he brought his daughter and son in law to me and they bought a new mini van. His neighbor even came in and bought a truck.
The F&I guy had made a notation on the paperwork that went to the shop to get the bedliner and stepbars removed. He saw the notation when he brought the truck in. It stated I was paying for the removal. He found me on the sales floor and tried to pay me back. I wouldn't accept. The next day him and his wife brought me two pies she had made from scratch . One cherry and one apple.
great dude you are!
unfortunately guys like you dont exist anymore
Goated, and great business outlook. Not everyone will be this type of returning customer and even bring more people in, but that's how you establish long life customer relationships. Bravo 👏
I had just the opposite treatment from a dealer that we had bought 3 or 4 cars from already. We have bought 7 vehicles since then but not one visit even to them. No to service. No to parts. Definitely no to buying vehicles.
I won't pay for a option I don't want and I sure as he'll won't pay to take off something I don't want.
A while ago when shopping for a Rogue, the dealer added items I did not want . When questioned , indicated those addons were on the vehicle and could not be removed .Knowing he was not going to remove them, My response was OK leave them in, but reduce the price of the vehicle. when the answer was No, I said " call me if you change your mind. " Said" thank you" and walked away. By the time WE got to our vehicle the dealer had a change of heart and removed the charges. { $ 2,000} . The only piece of advice I can give is be prepared to walk if you don' t get the deal you want.
Yes, be ready and prepared to walk out is golden piece of advice.
Exactly. Do NOT get married to the vehicle! There's plenty more out there IF you're willing to wait for something to come along.
Always walkout!, you will get the best price only then.
It's harder for the larger people. Every time the chore comes around I dream of things and pictures and then go sit in it and remember. I don't fit in a Honda, or God help me Subaru. I only fit in a Camary that has the gizmo to lower the seat or if I could ever find the unicorn car with now sun/moon roof.@@leecowell8165
Almost bought an Audi A3 several years ago, had reached a cash deal with sales person, then finance manager actually came out and tried to talk us into leasing it, with "ordinary wear" insurance. Said we weren't interested. She kept it up. We got up and left.
Thank you guys! My mom and dad used to teach me how to live my life, but my dad had a stroke and my mom developed bipolar disorder. It has become hard to live without any guidance, and to be vulnerable and honest, these videos remind me so much of what my parents used to say to me. My dad would have said exactly the same things. Thank you guys for all of this, and for looking out for normal good hearted individuals like me who just have it rough out here! Only downside is it makes me miss my parents
I just bought my first car this week! The internet price was $10,495, and out the door I ended up paying $10,800. If it wasn’t for this channel, I wouldn’t have gained all the knowledge of the car dealership inudstry, and how to negotiate pricing. I felt very confident going into the dealership and even the salesperson said I was a tough negotiator! Thank you for what you do!❤
Wished I watch them before I purchase my car back in 2021. I’m paying triple. And I also treated in my old car which was pretty brand new. I feel like I got ripped off and I get upset every time I think about it. I can’t even enjoy my car.😢
How much did you talk him down from the internet price?
@@johnstarks32 I was able to talk him down to $9,300, so it ended up mostly being the fees and registration at the end. But I’m glad I was able to negotiate better prepared.
U pay to much
@redi8953 Try to move on, enjoy your car. We all make mistakes, and live and learn. I hope we'll all make better decisions the next time we need to buy a car. 😊
I like the part in the negotiations process where you get up to leave and they tell you that the deal that's on the table will go away. My two responses are "then it's obviously not the deal for me" and "If I was interested in the deal on the table I wouldn't be leaving". I've lost track of how many "deals" I've walked away from only to have them chase after you and/or call you later to try to win you back.
That’s gold , rite there.
I knew how the game was played, and I bought my Mustang when they called me up the next day and told me to come on in. I then got another $200 off because they showed weakness.
Maybe if they call you back you can say it’s going to cost you!
Just like dumping a woman who thinks she's better than you. Until you put her in her place.
So sick of the scams of "SUBSCRIPTION" I want a vehicle with the options I PAID for, not one I have to RENT things like remote start, heated seats, navigation, etc. Its purely greed and a SCAM
Sometimes you have no choice and it's infuriating. My 2023 GMC came with an Onstar subscription for three years as an included "Option" for $1,500. It was built into the truck, could not remove it whether you wanted it or not.
@@mcats8from what I’ve learned from this channel. You definitely could’ve negotiated a price on it
Yes, proprietary access is the new money grab.
@Natanb I agree with your comment I guess that is what the traditional dealership has numbered days ahead they have been gouging the public for far to long and it is time for this model for car buying to go away....
@@norvellharris1792 when I have a good dealer, I actually prefer to have that in-person option -- especially when buying a car that i have never driven before -- i want the inventory to be in stock and the chance to experience the car in person.
Also, if I don't have a good dealer near me, I end up finding a good mechanic nearby to help for unexpected questions or issues. You may be able to relate if you have been banking with a financial institution that had local branches all over and has now closed down a bunch of their branches. True, we rarely need the local branch due to online banking, but when we do need one, it's usually IMPORTANT.
Therefore, i would like to see the model changed, but not totally gone (aka not restricted to online buys only).
South East Toyota is ruthless and I would never deal with them again if I were to buy another Toyota. Further, is asking what the buy-rate is. This is a big one to remember. Before going know what your credit worthiness is and have a pre-approval lined up. We did this recently for our teenage son. Dealer wanted 8.5% on a used car and we were able to get him pre-approved through a credit union at 5.99%. The dealer was charging us an additional 2.5%
Your very fortunate to get to work so closely with your father , I can see that yall make a great team
Thank you, Mark. I feel very lucky.
@@CarEdge But who is "I"? Dad or kid?
I was shopping for my daughter once back in the 1990s. We had $25,000 in the bank to pay for a jeep she wanted. One salesman at a dealership started talking to us, and I told him what we had in the bank. He had a gang of newbies standing around. He acted like he was doing us a favor to sell us the jeep but not for our price. We left and went to another dealer 30 minutes away. I told the salesman there the same story. We wrapped up the deal immediately. The arrogant salesman was at the Greenbriar dealership in Chesapeake Virginia. I have never been back since.
Why should you pay for information provided free on other internet sites for free.
Good 👍 work man
Delaware does have a tax, it's called a transfer fee. I believe it may be 4 or 4.25%. Great videos, thanks.
I had the cops called on me at that dealer in the 1990’s losers
@@johnroots3722 Ok John, we gotta hear this story! 😂
pre visit; do your homework. price, dealer reputation, recalls, etc etc. 1/ be a walk-in. 2/ wear a body cam. 3/ tour the lot and photograph the window stickers. 4/ answer no questions and request a test drive. if no drive, leave immediately. 5/ if drive and you like, then say I will pay you $xx all inclusive. 6/ if dealer does not accept, leave and buy online.
I did something similar when I bought my used pickup from a dealership. I told them I knew how long this truck has been there and how it's now considered aging inventory. I also made sure to ask about any maintenance they performed and what I thought it would need. After all that I told them what I was willing to pay right here right now and if I didn't pay it I walked. They tried fighting me on the price all the way down to what I wanted but ultimately I stuck to it. Didn't take very long and I got it for 4k less than what they wanted and this was a dealership that advertised "No haggle pricing".
Good on you. Alot of people don't mind carrying debt so a low monthly payment is super important to them. I hate debt so to me...how much will be in my bank account when I leave here is paramount.
thanks
Did the same thing 30 years buying a new F-150; prep sticker under the hood said it'd been on the lot for 6 months. I knew his invoice cost up front, told him I wasn't giving him more than 5% profit, or he could continue paying tax on it being in his inventory. Must have gotten up to leave 3 times, he finally agreed
Of course, dealerships that advertise "no haggle" pricing want you to believe that they've already reduced their price to "rock bottom" - which, of course, is nonsense. But no one is holding a gun to your head to accept their price, and there is no law against you making an offer; if they decline your offer, you walk. I sold cars briefly a long time ago, and one of the pearls of wisdom (from the dealer's perspective) I learned is that "you can ALWAYS get another car, but you can't always get another customer".
@@scottkempton6085except Tesla
I went to a dealer once that basically talked to me for an hour about the car I wanted. When I got up to leave after that hour he told me I "OWED" him the purchase! That of course really PISSED ME OFF! When he said that, there was NO WAY I WOULD EVER BUY FROM HIM! You don't OWE anyone for talking to them. It was MY TIME he used as well as his. I didn't OWE him for his investment of time.
He's the one who wasted YOUR time. smh
It's them who waste your time. It's literally their job to talk to potential customers.
It was EDMONTON CROSSTOWN EH? 😂
@@georgioantoine4194 Greenbrier Chrysler!
I heard that from a timeshare salesman.
Years ago I was dealing on a new car. I wanted in the sales agreement that in no way would I accept the car if they added a dealership name sticker on the vehicle. At one point the owner of the dealership came over to ask me why I didn’t want his name on the car. I told him it was free advertising I didn’t want to support. I said, give me a good deal and good service and my word of mouth will do more for you than that sticker ever will. He said, fair enough and walked away.
I did that too. Unfortunately when it came time to pick up and pay for the veh8cle, the sticker was on it. I tore my check up in front of him and walked out. About a week later the sales person called and said it was now ready without the sticker. I politely told him that I no longer would trust him and that I was looking elsewhere and my "word of mouth" advertising would not be good.
I bought a car that had a dealer added anti-theft device, they apparently added it to all of their cars. It was $500 and told him I wasn't going to pay for it. "Well if you don't want your car protected bla, bla, bla." They started lowering the price and I kept saying no. They finally asked me to make them a reasonable offer, I said "I'll let you leave it on the car at no charge to you."
30 years ago I bought a house and on the offer letter it said the blinds fireplace screen and the ceiling fans are negotiable I said if you wanna leave them I'll take them I still have them
I really appreciate this video. I'm kinda the car guru in my family. My Dad passed and he was the one that knew how to buy and sell vehicles. I remember one time he took a car home overnight and the salesman paid for dinner for our family! Not sure how he negotiated that but I've admired folks that have good insight on buying cars. Thank you!
Always be willing to say, “No thanks.” And be willing to walk away. Amazingly, this sometimes works on getting a deal.
That's what I do. Learned it from my Dad.
This is probably the single most important aspect of buying a car. Getting emotionally invested in a vehicle can cost real, actual money if you're not willing to let the opportunity go.
My Dad has walked away many times, only to get a phone call a few days later, asking to come back because they want to make a deal. He never paid more than he was willing to pay. I've walked and gotten a better deal elsewhere. Gotta be willing to walk.
My first couple of experiences at car dealerships when I was in my 20's shaped my approach to buying new cars and has saved me a fortune over the last 35 years. I keep cars over 10 years and mostly buy used.
I would never buy someone else's hand me downs.
@@travis8665 You lose like 30% of the value of your car as soon as you drive it off the lot. New cars with full retail price is a scam. These 40-50k cars should be 20k.
@@TheRealTrucido Not true if you buy a Toyota
@@marcusvaldes Which is why I own a Toyota Corolla :D
. Years ago I compared the cost of 2 cars. I added up initial cost plus repairs (not oil changes), then figured the resell price and divided by the number of miles I’d driven the car. One was an old used Toyota bought from my sister, and one was a Toyota I bought new then resold years later. They each cost me $.28 per mile. I decided I’d rather drive new cars.
So glad I found this channel. A couple months ago I was window shopping (thank god I wasn't ready to purchase) & I walked into eastern motors so clueless & goofy. I did literally everything y'all say not too😂. Now when I go back im ready,
Sharpen their pencils !
Piece of advice...don't see the same salesperson. Act like you are brand new. If they know you've been there before there less likely to negotiate because you've already come back once.
Go to a different dealership.. if it don't feel right tell him thank you and goodbye and go to the next dealership..
A few years ago I stopped by a GMC dealership. I had already done my research and knew what rebates etc were offered. When I asked the salesman, he didn't know and the Mgr was "in a meeting". I left there, went to the GMC dealership in the neighboring County, they knew all the info and I bought that truck on the spot. On the way home, I stopped by the 1st dealer and told the salesman, let them know what their meeting just cost them.
👍👍👋👋
BOSS MOVE!!!!
A number of years ago I had purchased a car. I was having the seats replaced with an upgrade. When I went to pick it up a few days later they had ALSO added pin-stripes (which I had NOT asked for). The salesman then tried to add the cost to the bill. When I told him I was not paying for it he said they would have to remove them. I asked if they would somehow get back any money for the removal. When he said "No... not really" I told him to leave the stripes on... and I'm not paying for them and if he pushed it the whole deal was off. I got free stripes.
I went through all the fees on mine, came up with the total I didn't agree with, and told them to cut the price by that much. Told them I didn't care what items they cut, just as long as I got the total. Walked out with $4000 less on a $25000 car. I wasn't about to argue line by line.
I've got a slightly different take on the out-the-door price. I ask for this (sometimes I've called it the on-the-road price). Here's my take: I don't care to see a breakdown. I've told the salesperson the model and the options I want. I say if you want to add extra stuff (pin striping, undercoating, advertising fee, VIN etching, whatever), then you'll just be making your price higher than the guy down the street who doesn't add those things. Getting the sale with me will happen only if you leave off the unnecessary stuff and figure in the minimum profit that you're willing to take.
Ex husband and I bought a car back in 1988, end of model year closeouts. Dealer had an ad in the paper that they had 4 vehicles at $7788. You'd think they were the same, right? They weren't. I chose my favorite color of the four available and it ends up it had a top of the line radio, pinstriping and I forget the other dealer upgrade. Salesperson did a solid when we sat down to negotiate. "the ad in the paper quoted price for these 4 vehicles, and this one has extras. Consider it your lucky day, because I'm not going to charge you for them."
That sealed the deal. Over the next 16 years, every vehicle I purchased came from that dealership. Wish I had that dealership where I live now.
I don't waste my time. I just go to the dealer that doesn't add extras I don't need.
Back in 1992 I wanted to buy a Toyota MR2 sports car (I live in the Pittsburgh area and the Toyota dealership was in a suburb called Moon Township). The dealership told me the vehicle is so popular they sell them as soon as the delivery truck arrives and at no discount. Fortunately for me, I worked at US Airways and had to fly to Reno, NV on business. While there, I stopped at Reno Toyota where they had 3 MR2’s sitting on their lot. I approached the salesman and inquired about the vehicles. He told me that Reno Nevada is snow country and they mainly sell the 4 WD vehicles and the MR2’s just sit. I made an offer of 2k below their invoice, they countered $1500 under invoice. I made the deal and drove my new MR2 across country back to my home in Western Pennsylvania!
1. Set up your financing with the bank and never the dealership.
2. Determine the dealer’s inventory to make sure they actually possess what you want. “Oh sure, we can get it” is crap. Obtaining something not on their lot costs money. Find the dealership with the vehicle that you want (usually available online). Negotiate with them.
3. Find as best you can the dealer’s cost (Consumer Reports or TrueCar).
4. Calculate your out the door cost without dealer profit as a floor to negotiations.
5. Call up (do NOT go in) and ask for the out-the-door price for the vehicle (specifying the VIN). The few who refuse to negotiate by phone beautifully identify themselves as people not worth dealing with. Why do you need my ass in your chair? Hanging up is easier than walking out.
6. Shamelessly and secretly play one dealer off of another (they have zero scruples, why should you).
7. Only actually walk into the dealership when you have obtained from the dealer, an emailed scanned copy of the completed sales contract with the out the door price on it and the vehicle VIN. In California, that is form 553-CA. You are looking for the number on line 7. When I picked up my car, I had another dealer’s 553-A in my pocket. That’s leverage.
8. If possible, purchase the car on December 31, it’s the end of the year and end of the quarter and dealerships/manufacturers are often highly motivated to close out the year with as many sales as possible. Do all your homework before calling them up on New Year’s Eve. They have very few customers that day, and will be willing to talk.
9. Always have non-warranty work done by an independent shop.
10. As you glide away from the dealership in your new car and the sales manager is giving you the finger in the rearview mirror, you done good.
Well said 👏
Huge dealership in my area listed a car for 6999. When I got there they said it was an error, actually 7999. Then they had 2400 reconditioning fee, 999 Dealer fee, some kind of “required” warranty for 1895 and the out the door was about double the list price they had in the website. Needless to say I walked out
I've had a similar experience. Walked out also!
Or when you get there they will tell it's already been sold when the truth is they never had it to start with😢
"Yes, but our donuts and hotdogs fee is only $999!"
1. What’s the Out the Door Price?
1.a Are all of those things required?
2. Why do I need to pay for the accessories I didn’t want or ask for?
3. What is the Buy-rate on this loan (if financing)?
3a. How much are you marketing up the buy-rate to the sell rate?
Dealer counter measures:
1. Instead of providing a monthly payment breakdown, give the customer a really high OTD price (MSRP + Tax and Fees + add-ons + 60 mo finance @higher tier 1 sell rate APR).
2. Let me talk to finance and see what I can do x 3 times (back and forth dragging out the deal and see if the customer give up first). Then may be come back with $500-$2000 off by removing some of the "dealer claimed mandatory" add-ons. (What they actually do is to calculate what their cost on the add-ons and what their profit will be after dropping a couple really low cost add-ons).
3. I don't have that information with me and you can ask finance when you meet them
4. Once the customers are in finance they are less likely to leave the table as they have invested 2 hours into the test drive, pre-negotiation, and waiting phase.
Buyer counter-counter measures:
1. Be sure to check out CarEdge, TrueCar, Cars, and KBB to get a sense on the market price of the new/used vehicle.
2. Many of the add-ons are useless (3M paint protection, wheel-locks, VIN etching, 3rd party security system)
2a. Some add-ons that are worth it: (All weather package, cargo cover, cargo net, roof rail).
3. Get to know the rates better with Credit Union.
4. Provide much more down payment and skip out all the GAP insurance and extended warranty BS.
Something to add to the buyer counter-counter measure 2.
2. If they insist that some add ons cannot be negotiated, Kimberly Kline worked in F&I for years and points out that “dealer claimed mandatory” add ons have a contract that you sign. Ask for that paper and look for something called a DECLINATION CLAUSE. That way you can deny it and I’m not sure there’s anything they can do.
Bunch of liars and thieves to tell you it’s required to get those options.
The out the door price is simple the dealer's initial offer to sell. Only a fool pays the dealer's initial offer. As tax and registration are fixed by the state, you really only need to concentrate on the price. Note, the price includes the price of the vehicle plus any add-ons plus any fake fee (such as a doc fee). So, it the dealer's price offer is $30,000 and the dealer has add-ons of $2,000 plus a fake doc fee (any fee which is taxed is a fake fee) of $500, the actual price is $32,500.
When you apply for a loan through a dealer the F&I manager contacts one or more of the financing sources the dealer uses. Those finance sources will return with an offer to finance at a specified interest rate. That rate is the buy rate. F&I managers, the most dangerous person in any car dealership, is legally allowed to increase that rate but they are not required to disclose this rate bump to the customer. The smart customer always demands, not asks, the F&I manager reveal the buy rate. If the F&I manager refuses you can be 100 percent certain that manager has bumped the rate. Often this bump is up to 2 percent, so a 5 percent buy rate is presented to the customer at 7 percent. If the customer accepts this scam, the F&I manager receives a hefty spiff from the bank.
You do not have to accept any add-on. You can always refuse and you can always walk away if the dealer refuses to remove the add-ons. Never be afraid to walk away.
One more thing. Be very suspicious if they start patting you one the back about how hard you were on them. It probably means you missed something.
Anyone from a dealership pats me on the back at any time, I immediately walk out. No deal!
Best advice i always give don't be afraid to stand up and walk away from a bad deal, you will be surprised how quickly things can change in your favor.
One thing I think buyers should do is to have a quota of let me "go ask my manager." For example, if the sales person gets up one than once, walk away. Let them go back to an open table. I knew a person that used to do this.
To me it depends on the problems. If there's multiple problems they'll have to get up multiple times. Unless the manager just stays at the table and that's not going to happen with multiple issues.
@@HH-le1vi I'm happy to have the manager come see me -- best deals I ever got were from the manager. 😊
@@flychomperfly yup. If you have to go ask your manager, it means I need to speak to the manager directly. If you come back without the manager, I'm leaving.
I waa car shopping with my daughter. I told her that the salesman will leave and comeback with his manager to makbea better.deal. Daughter said I was wrong
"Why would he do that" ? I was vindicated in 3 minutes. The manager came in and his exact words were " What can we do to make a deal tonight? Daughter was amazed. We got a car from another dealer
You guys missed a really important one.
My wife and i had limited credit but owed nothing and owned our home, property and vehicles. The wife wanted a new - er car.
I wanted to get a kittle credit so wanted a short term loan to pay off even quicker than the 2 or 3 year term. Heres the Q:
Is there any penalty for early payoff of the loan?
In many cases there are.
We paid off a 3 year loan in one year. If we had not asked the first loan offer would have charges us 699$$ early termination fee.
We went with a credit union loan that had not added fees for anything but late payments.
Good questions but that one us also important.
Credit Ratings are a scam. If you can’t pay cash for a car or don’t want to you can’t afford it. Break the matrix, post credit score life is wonderful :-)
Credit Union probably the best lending!
Just a shout out. Saturday I bought a used car. Thanks to watching your videos I was able to set a budget price. When I got there I drove the car and when I returned the salesman asked if I liked it. i told him I did and said all be need to do is set the price. "What is the out the door price"? It was listed for 16,500 not including sales tax doc fee or title transfer. In literally five minutes we negotiated to $16,250 (my budget was $16K) out the door including 950 sales tax, 250 doc and 10 title transfer. The extra 250 did not bother me because it had four new Z rated tires and the car was a one owner from a family member (confirmed by a telecon to get the radio code since the battery had been removed). Granted this was a mom and pop dealership, but it was nice to not have to do the dance,
That’s it…..a mom and pop dealership.
Just purchased a new 2024 vehicle after watching many of your videos , it paid off ! After walking from a couple of dealerships , that of which one kept begging me to come back and would meet my terms and me telling them they had their chance and I wouldn't deal with anyone that tried to cheat me out of so much money . Got my new SUV under MSRP and all of the add ons were taken off the price too ! Thanks !
My absolute favorite,salesman asks,"are you the decision maker"?My response 'yes,are you the decision maker"?His response'',no,my manager is".My response,"since you cannot make a decision,I will deal directly with the person that can make decisions".Now,get your manager for me''!(Salesman is now aghast and is totally off balance in the transaction,and the control is now with me.)
This is excellent!
Salesmen are pigs. They talk to you like you're a dog, and then get offended when you dish the same back.
I hate the game they play with talking to the saes manager. "I fought like hell with my manager. I almost got fired for standing up for you. "
So I arrange with a friend to be my "wife". When they pull the sales manager trick I tell them i need to talk to my wife. Then I call my friend and have a "pretend" argument. I hang up and tell the salesman she won't go for the deal.
The salesman usually suggests that she comes in. Then I ask what good would that do, because your sales manager is already here and wont talk to me.
NEVER ask, "WHY do I have to pay for these add-ons." It is up to you to say, "I will NOT pay for these add-ons. Delete them." End of discussion. Stop asking other people for permission for things in your life.
Well said👍
what if the adds on are installed in the vehicle from the manufacturer, is the dealer then going to send back the car to the manufacturer to remove those items?
@@UtubeAdviser Solution: order a car to get only what you want and no add ons.
@@UtubeAdviser Then that should be built in on the price. Ever price a car on KBB? They always ask what features the car has; that's why there's a difference in trim lines.
You are SSSOOO right! We do NOT need permission from anyone for anything! (Except my wife😁)
Not exactly on this line of thinking but I had to share it. The best purchase I ever made was buying a Ford Excursion the first time gas hit $4 a gallon and they were practically trying to give them away. I got a 5 year old Excursion with 52,000 miles on it for $7995. I still have that vehicle and it's now 20 years old.
I had one of those when they first came out. That was a truck or SUV or whatever it was supposed to be.
As a former sales person myself I have a better solution to number 2, TELL the dealer to remove the add on's or find me the same vehicle without all the add on's or I'm going somewhere else, you can also do this with the F&I guy, telling him you don't mind paying a small doc fee but if it's over $300-400 walk away and the same for extended warranty's and gap insurance if it's over $1000 a year walk away, cause even at that they are still making money and my wife is an F&I manager so I know this to be true
Why pay for any of those fees? Extended warranty? Isn't there a warranty already on the vehicle WTF do you need another one for?
Documentation fees are asinine profit boosters…….all Bull S--.
Had a dealer once want to charge me $400 for nitrogen tire fill. I don't him no way but his response was the nitorgen was already in the tires. I asked if their service dept had a compressor. He said sure they do. I replied "Ok, let the nitrogen out of the tires and refill them with air. If you won't do that, I'll leave the dealership." They left the nitrogen in and took off the $400.
Nuts, Costco includes nitrogen in their tires. No way in heck that could cost $400. Maybe $4.
@@jeremyoboe Exactly my point. When you buy a new car they will charge you whatever they can for "Dealer Add-ons" including nitrogen fill. I've seen the $400 attempted charge with my own eyes.
Lol nitrogen is a scam lol all air contains nitrogen and the first time you have to add air your just adding regular air. Scam to get money out of people lol
The air in the atmosphere is made up of 78% nitrogen, 21% oxygen.
These car dealerships are idiots and scammers.
The regular air is already 3/4ths nitrogen. This is beyond ridiculous
Thank you SO much for all the help! I watched about a dozen of your videos over the past 4 or 5 months. Ultimately asked one dealer for out the door, worked with my credit union's car concierge and told him our firm out the door. He did all the legwork. I didn't have to haggle with anyone. My perfect color in a used car was found, the dealer wasn't willing to budge, but two hours later, the concierge found a 2020 with only 11,000 miles at my price. In fact, they dropped $400 UNDER that price because we were going to transfer a tag.
Forgot the tag was in my husband's name, this vehicle was only titled in my name. Dealer F&I guy didn't want to redo paperwork, so we got tags for free.
So, $400 under my firm out the door price and free tags, too. Wouldn't have done any of that without all your sound advice.
Good advice. When I bought my 911 turbo I made them an offer that was 5% below MSRP. They said no. I waited a month and sent them an email telling them that I noticed the car was still for sale and that my original offer was still good and they agreed with the price.
Hi! I want to say thank you guys for Everything! I don’t know where to go to leave a glowing review, so I’m dropping it here. With the advice on this channel and resources on your website I was able to save thousands on the new car I just bought. Between knowing to about the out the door price and haggling that, having a quote for my trade on hand and having the 10y bumper to bumper warranty price you offered on your website. I was able to talk to the car dealer in their language and bring my new car dream into reality. Thank you thank you thank you!
I started reading about add ons. Alan Jay in Tampa 3k mandatory, Airport in Orlando 3K add ons again mandatory. I told both of them I wouldn't even discuss them. I wouldn't even visit the lot to look at the car if add ons were mandatory. I asked one of them if they would charge a commercial customer buying fleet vehicles those add ons and I swear to god this lady told me that "they legally couldn't pick and choose what vehicles they put the add ons on".
Mandatory add ons are illegal....call the FTC
you have the ultimate power; WALK OUT !!!!!!
I always remember on the old Seinfeld show when Elaine's boyfriend was selling Jerry a car. Jerry asked him about something added to the car, and he replied "we don't even know what it is", lol. Every car I have bought since seeing that I think about it and start with the questions. Love the channel, keep up the good work!
LOL! I remember that episode. I think Jerry also brought George along with him to help with the car purchase negotiations, but George was essentially useless as he (George) created some personal issue with a candy vending machine at the dealership. 😁😁
One thing I always advise my friends and family (whether they accept it or not) is to know what the loan at the bank will cost them. Sometimes people do not even realize they might have an option to use their line of credit. Remember that you can always put lump sums onto that one. If you are already over your neck in debt this might not be an option, I just wanted to put it out there. Know your credit score and be aware that if you go through the dealership there might be two or three inquires on your account that was done by the various banks that the dealer tries to close with. I prefer to know what my rate is at the bank, that I can repay my LOC within two years or so and that the vehicle is mine (no lien on it).
Exactly. The financial end of the deal can be even more meaningful in terms of what you can save or how bad you get ripped off.
Only buy used with cash. No payments. No debt.
Back when interest rates were better I used to borrow the amount against my savings/CD. If I was earning 5% and the loan was 8% I ended up paying 3% overall.
@@mr.d.4175 Would you borrow on your house to invest? I hope the answer is no because that would be risky and stupid.
Right. Who says you gotta finance through a dealer? My credit union is always sending me vehicle loan offers due to my long standing account (and probably excellent credit).
Went out to buy a car today and was ready to be on the attack with all the info I've learned here. Guy got me the OTD price when I asked, asked me how I was paying and when I told him I hadn't decided yet he didn't mind. Car was reasonably priced. No added fees on the price breakdown, and I delt only with him for nearly the entire transaction. Only met with finance for like 15 mins after my credit check. Was much different from the last time I bought a car.
Literally exactly what happened to me. I was expecting them to sweat some but nope. They were calm, cool and collected and weren’t phased by my questions/demands. I ultimately got what I wanted and didn’t have to fight much to get it. No bs fees at all to negotiate off and no pressure at all to buy extended warranty/gap, etc. It still wasn’t the quickest purchase, but was the best I’ve ever had. For once, I felt like I didn’t get screwed.
What brand?
@@BTrain-is8ch VW
That is how I sell cars. We don't mark up interest or push add on. By law we have to offer gap and extended warranties, but if you don't want it so be it. No F&I guy or closer. The salesman processes your credit app. People love working with one person and we get long time repeat customers. We also never marked up one vehicle during the trouble times. We are not a non profit, but we aren't trying to pay the bills off your one sale.
Nice what dealer give them credit for doi g the right thing wish in ohio im shopping
I told the dealer I didn’t want the wheel locks they had installed. Said they couldn’t do anything. 5 minutes after I walked out, a miracle happened. They were suddenly not going to charge me.
This happened yesterday with an Oregon Toyota dealership. I was interested in a RAV 4 Prime, plug-in hybrid. The first response I got from the salesman showed MSRP plus dealer add-ons plus a $6,000 "dealer adjustment". This vehicle is kind of hard to find. I told them "No. I'll ask again when RAV 4 Prime's aren't so rare and you're more flexible. Good luck." Radio silence, then, "We'll cut the $6,000 to $3,000." I replied, "No, I'll pay MSRP plus 3% maximum." Radio silence, then, "OK. We can do that, but you have to accept the dealer add-ons because we have a contract with a local company to equip all our cars that way." I replied, "No, I'll pay for the things I want but not for the things I don't want." Radio silence, then, "I don't think my manager will agree to that." To which I answered, "Okay. You run your store your own way and I'll keep looking."
So far, radio silence...
This is a good way to find out what the real price is.. this is the just below the OTD price that they can't live with...
Don’t budge. Only give your business to a dealer who meets you on your terms. More often than not, you’ve got to be willing to walk out and only stay for the ones who don’t waste your time with their “market adjustment” BS
A friend of mine just bought a Lexus NX450H+, it was $2K below MSRP and no add ons. This is in S. Cal.
I wouldn't have said, or pay, even a cent over MSRP. The prime is an amazing ride, but not worth paying more than MSRP, which is sad in itself..
Back in the mid 80's they built a brand new Acura dealership down the road in Houston. My wife wanted a new car. I didn't. On top of that, I wasn't that sure I wanted to be married that much longer. She said she was going to buy a car whether I participated or not. So I went in with an attitude. After negotiations on price was over, I was handed the final documents. I reviewed the list of features. $250 for floor mats. "Take them out". OK. Seat treatment ($250) to prevent staining (Scothchguard). I said "Take it off". They said they couldn't. I said swap out the seats. Long after the dealership closed, and we were the only ones in the dealership, the salesman finally said "What does it take to sell you the car?". My answer "Free AC or we walk. Because I give zero shytes if I buy this car". He went into the back room and woke up the sales manager.
We got the car with free AC. In Houston. Never ever go in determined to buy a car. Walk if you don't get what you want. If they let you walk then you are probably at the limit.
At my last car purchase, the dealership wanted 400 dollars more because they had to put new tires on it. I literally leaned back in the chair and said are you kidding me. You had to put tires on it to sell it right. Needless to say, the crooks threw in the tires.
Went shopping with my dad. Poor dealership had clue they did all their financing through his bank and he pulled all needed info on trucks and lending. He had enough and looked at the guy and said "Apparently you don't want to make a deal because I know exactly how much each truck we looked at today cost you, up to how much the loan is for since I work at X bank."
As far as financing, isn’t it better to walk into the dealership after securing a loan from the bank.
The last car I financed was in 2010. I’m not sure if things have changed , but a loan approval for up 25k was given by the bank. Then I went shopping and used the two other methods mentioned in this video.
Yes! If you finance with their lender they gay a part of that too
I worked selling new cars for years and here's the deal. Dealerships make bugger all off of selling a new car. People research the price and you're lucky to sell a new car for 5% over cost. Where the dealerships make their killing is on warranty work. The service department basically funds the whole operation, so the longer your warranty, the more you get fleeced.
For a dealership…..I’ve got instruments and can show them how they work!
When buying a new car, I know the price I want to pay (used to be below MSRP) and the amount I want for my trade in ( usually more than KBB) and the difference is the amount I want to finance. If they can hit that number, we’re good; I don’t care how they do it. If not, I walk. Last time I did that, I walked. Once I got out of the showroom, the sales mgr came out and said OK.
I’ve always had outside financing secured before I step on the lot. I tell the dealership if they can match the rate I’m already getting I’ll go with them. They never can because I always have the lowest rate. The next tactic they try is to get me to sign “backup financing” in case my outside financing doesn’t go through. I politely but firmly refuse. They make me wait but they eventually break. They want to move metal.
ME TOO ; current Chevy loan is with my bank, which I have bee with for 20 years !!!!!
You should talk about buying a car with bad credit. How do we deal with them . Can we get a out the door price as well . Or we have to bend to what the dealer wants . We need a videos for people with not good credit that still qualify to buy brand new cars
I always go to credit union banks and its better for me, i algo have bad credit
Last car that I bought is a 2015 Taurus. Stickered at $33,500 and after retirees discount and rebates, walked out paying $27,000. No add ons. My salesman who I had previously bought a super crew from knew I could buy anywhere.
Did you buy cash or financed?
I remember years ago in the US I could just have the fleet manager email me the contract with all the out the door numbers. I would always work backwards from the out the door price.
Today I would never buy a new car in America. Not with the mandated dealer add on’s, market adjustments, forcing people on financing due to rebates from the banks, etc. In our country it’s still the out the door price and no dealer add on’s.
Neither dealer add-ons, market adjustments, or dealer financing are mandatory. In fact, the only mandatory amounts in the US are those fees imposed by the government. If the thing is taxed it is always negotiable.
Many years ago I bought a Dodge caravan in a dealership, the negotiation was long and even got kind of nasty, finally settled on a price of $15,500. While sitting and waiting for the vehicle I was handed the final invoice- the price was $15,550. I was fed up- took it and found the salesman and handed it back to him, said either the extra $50 comes off or forget it. They took it off.
My dealer printed me off the out the door info in first conversation it was cut and dry, i loved it!
Early on I figured out that I needed the "out the door price" in writing before I went back to pay for the car. Even though it's been a few years since we have financed it amazes me what they try and add on dollar wise after you make the deal and before you go to the person making it final. The last car we bought (2019) was a Camry and between the salesman's price and what they wanted me to write the check for was $2500 more. They said I must have "misunderstood" the price I was given and he looked shocked when I handed him the salesman's price, with the sales managers signature. It was funny watching him sweat.... LOL
My experience is the price they give you is only good RIGHT THEN, and they will NOT put it in writing so you can take it to the next dealership…at least not in Houston Tx. The only thing I would add IS IF YOU ARE BENT ON TRADING YOUR VEHICLE IN, GET READY TO BE SCREWED! You NEED to sale it in a private sale, or at least take it to car max and sale it to them……if you are upside down, well you have to make up the difference or go ahead get that shiny new car and KNOW you just got screwed, and you don’t care!
@@15packman Don't ever sell your car to CarMax if you have the time to sell it elsewhere. The CarMax business model of 'no negotiations' works for when you sell as well as when you buy. When you bring in your car _they_ will inspect it & test drive it, and then _they_ will give you a sale price, which is typically a low-ball price - and which is non-negotiable. CarMax is good if you have to sell a car quickly, otherwise: avoid.
Yes...this!!!! Get everything IN WRITING.
@@rudewalrus5636 ehhhh, sometimes yes, sometimes no. I've gotten great deals selling cars to Car Max before. Once we had a 09' Acadia with a cylinder that kept cracking spark plugs and misfiring. I was hoping to get like 3k for it, carmax gave me 5K. I took it and ran
So you're saying to GET IT IN WRITING? Good idea and especially if you're shopping around at different dealers within a range.
The last time I bought a new, "off the showroom floor" car was 2004. I still have that car, and it's running just fine. But I don't have ANY of those "extras" I saw on one of your dealer add-on lists. And I haven't needed ANY of them. The car biz is such a joke these days. If I was buying a new car today I wouldn't "ask" why do I need those extras. . .I'd TELL them to remove them from the contract, and if they balked at that I'd remove myself from the dealership.
Several years ago “2012” I was shopping for a new truck. I had sold my previous one and already had financing. I went to my local dealership and found the truck I wanted and told them what I would pay. They came back at 33500. I walked. I then called another dealership in another town. Told them that my local dealership wanted 31500 “yes, I lied” and asked if they could beat it. They said yes. They would sell it for 30500. I then called another dealership and asked if they could beat the 29500. “Lied again”The lady asked if that was tax and title included. It wasn’t, but I said yes. She did some math and said that she could sell me the exact truck I wanted out the door for 28900. I made one more call and knew it was getting close. Told the salesman 28500 with tax and title and asked if he could beat it. He said yes, but not by much. Said they could do 27900. I had them email the number to me. I then made a drive to get the truck, but they didn’t have it in stock and said it would take a couple days. Meantime they called me and said they made a mistake on a rebate and it raised the price 700 dollars, but that they would eat half of it. Something to do with the sync system. I agreed. A few days later they drove the truck to my hometown. I was happy because it had the sync system which I wanted which is why I agreed to pay the bit extra. BUT,The truck they brought didn’t have the sync. What it did have was push button 4 WD and the upgraded transmission. I went to the salesman though and threw a fit. Asked where the sync was. He apologized for the miscommunication and said the sync was the problem with the price and the rebates. I was actually happy with the truck, but told them why would I pay an additional 350 dollars for less features. They ended up dropping the extra 350. I ended up buying a truck at 27900 out the door, when my hometown dealer wouldn’t budge below 33500 before taxes. It was the first time I ever felt that I wasn’t getting screwed by a dealership
This is the type of infomation John Public need to know. I (who don't own a vehicle) want to thank you for posting such an informative video for the public.
Never be afraid to walk away if you don't like the deal. Their job is to get you to say yes, and hand over your money. Make sure you are getting exactly what you want for that money.
A lot if dealers here have a ticket price on the maroni with msrp, and then have an addendum with $4000 more on price with bs like all weather mats, some just have a $3000 markup for nothing at all.
What is "the maroni?"
I was unemployed as an engineer for a few months and tried working at a Toyota dealership. The salespeople actually know nothing about the business. We only knew what the sales manager told us, and we never knew what was goin on in the finance department. So sales were two step. We got the customer into the finance office, essentially. We could give a price, or better yet get them into a lease, but once they went into finance it was they were different people when they came out. Lol. They either got rolled or left in a huff. I was there for about 40 days and tried to sell the used cars, they had much higher commissions. Lots of standing, walking, avoiding boring cold calls, and best of all, be “inspired” by a sales talk, which could be creative with our guy, zack justice. Lol. I quit when another opportunity opened up.
In Oklahoma, we do not pay taxes or registration at the dealership, and it's typically not worked into the deal. We take our invoice to a tag agency and pay them there. Creates yet, another middle man in our state.
Here's my story... years ago, pre-Frontier, I bought a Nissan mid-size truck. A negotiating point came with the huge "Nissan" decal on each side of the truck, which I did not want. I was told it couldn't be removed, and I responded with a $5k reduction in the price (figuring I was going to be a rolling billboard). I also asked for an additional $1k for the dealer decal on the gate. Guess what, both decals came off and I still got $3k off the price because I had to come back for the truck in 3 days so they could do the work.
Thank you for posting these tips. We used your advice today at a Honda dealership. Things went smoothly!
My DH wanted a basic, used truck, in white, because Florida. We went to the Dodge dealer and the salesman was in training, so he showed us all the expensive, tricked-out trucks, none were white. At some point, DH was were in the finance office and asked what was the APR on the financing, but they could not come up with an answer - even the finance guy would not. I ended up going to sit in the lobby across the hall. Every once in a while he would call my name, and I would yell "is it white?"
Somehow we left there and eventually bought from an actual used-car salesperson at a different dealership. She drove us around the whole east side of the county until we found a basic truck in gold, which was fine because she really did help us by finding us a reasonable offer. We still have that truck.
Gold's a nice color because it hides dirt well, too. :-)
@@stevepreskitt283 In Florida because dirt where we live is the same color as sand, but maybe not so much in places like Indiana where the good dirt is almost black.
@@marysews1 Space Coast myself here, but most of the dirt I get on my truck is black from the grease, oil, etc. from the roadway.
At most dealerships that I have dealt with the salesperson does not do the financials. They will do the initial work but when it comes to the financial breakdown the finance manager takes over and gives that breakdown. Before i would sign the contract I would go over every line item and have things removed that I don't need and don't want. When it came to dealer obli
Thanks to you guys, I had a good experience buying a new Mustang convertible on March 31. Advertised internet price was almost $5k BELOW MSRP, so I had a good starting point. Negotiated add ons down to 1k. Got OTD price, then bought nothing from the finance mgr. I almost felt bad.
Its really hard to handle a skilled finance manager. Hate to say it, but do not assume he will be honest. To argue against the $4k extended warrantee, find out who supplies it to the dealer, like Apex or whatever and look up reviews. Will be many 1 star reviews for non payment etc. Show this to the "finance manager" after he makes his sales pitch.
Unless you wreck a lot of cars, never get the gap.
Just say no.
As far as "dealer installed" items, a majority of the time they are NOT installed or applied to the vehicle unless or until the car has been sold. Many times they will ask you to return with the vehicle in a week so they can apply the paint and interior protection or the clear plastic paint protection or back in the day, the auto start/alarm system. This is because we all know that not every customer will want to buy those items/services. This is also helpful when you have to do a Locate/Dealer Swap/Trade.
Although I have worked at one or two dealerships that used to install the alarm system and Lojac as soon as the cars were PDI'd, and if the customer wanted to buy them, the Make Ready technicians would activate them, and if the customer did not want them, it was faster and way easier to remove them and still be able to spot deliver the vehicle than try to install it or make an appointment to have it installed later.
Yup. I have never once had a salesman balk when I cross a bunch of add-ons off the deal. I say "I'm not paying for these", and they say "OK, no problem".
When I bought my last car, the only question I had for the dealer was how much did I need to cut a cheque for. I told him I didn’t want to know anything else about dealers fees, etc. After they tried some hocus locus stuff, they finally figured out that I wasn’t in need of a new car and I was willing to shop around. They managed to get me a good price, but only after accusing me of lying about the price of another car.
😲😲
We we accused of lying about a price of a Subaru at another store out of town. My husband blew up and walked out.
What's the problem with walking in and saying "I'm paying $X out the door, all inclusive" for this car and "you can add whatever you want so long as its that out the door price"? That's what I did when I bought my Kia Forte eight years ago. Got it for $14k Canadian out the door for the very base model (no AC, manual transmission). Used the "build" on Kia's site to determine the price and stuck with that, didn't negotiate beyond that.
That's historically worked well for me. Even better if you can get a written quote with the OTD price. I don't really care how they juggle the numbers to arrive at the final figure, so long as it corresponds to what's on the quote. I bought a car over the phone many years ago and had a signed quote faxed to me. The sales manager was rather unhappy when I went to pick the car up a couple of days later (they had to have it trucked from another dealership) and he tried to add on another $400 transportation fee, and I presented him with the quote he signed himself. The finance manager was even more unhappy when he discovered I already had financing in place for it. It was a good day.
MSRP IS negotiable. It is a suggested price. We used to get at least 10% knocked off, and sometimes 15%.
The selling price is negotiable, the Manufacturers Suggested Retail Price is just that, SUGGESTED. HOWEVER, it DOES carry tax implications. If you ever WIN a new car, or a suite of new appliances, or anything else, the IRS is gonna look at the MSRP as your income.
My uncle, who was both an aviation and auto mechanic gave me these words of wisdom about dealer fees and add-ons: when in doubt, just walk out. His logic was they need the sale more than you need the car. Find another dealer more willing to work with you without the BS. Cheers....
I’ve worked for new car dealerships, and YEARS ago, they were really pushing undercoating. Way overpriced and they didn’t clean the underside well. Coating failures were constant, but unnoticeable usually.
Remember "Ziebart" undercoat where they drill holes at various places in the vehicle? Do they still do that?
I bought a used 2023 rx350h this week I negotiated the price the only thing on the bill of sale was 250 doc fee , title fee 20, registration fee 15 and tax.
Now when i got to finance which I had everything ready from my credit union the finance guy did try and sell extra stuff which we declined.
This was a large dealership and they sell new and used but the experience was pleasant overall I was surprised there was no going back and forth I gotta talk to the manager bs.
I hate when sales guys are stringing you along....but it really important to get your ducks in a row before you even step foot on the lot.
know your cc score, know the true value of your trade if planning on it. I dont like trading in personally,
Use a loan calculator off the internet so you know what will cost you per month, with down payment, trade, tax and whatever else.
The finance guy is not your friend he is also trying to sell you stuff do not buy it....its usually worthless or overpriced.
You want zeibart get it done somewhere else later for way cheaper.
Pay extra on the loan pay it off and keep the vehicle.
Good advice, car dealerships hate educated car buyers. If they don't think they can't rip you off, they'll just cut you loose. It happened to me several times already. These sleazy car dealerships would rather make 10k one car than 1k on 20 cars. They are waiting for some rich idiot who will just buy the car 15k over msrp without any questions. Toyota/subaru/lexus dealerships are the worst.
About 5 years ago, my wife wanted a particular car like one she had previously that got wrecked. We looked around quite a bit, and finally found the one she wanted. When we went into the dealership, we were told that they do not negotiate on used cars. The price is firm, take it or leave it. The salesman told us that with people looking everything up on the internet, there wasn't any room to negotiate. Since the price was one that we were willing to pay, we bought it. While the salesman was working up financing and what-all, she wrote a check for the car. That salesman was not happy. I guess he figured on adding on a bunch of financing and "ADMU" charges.
That Chevy bolt breakdown is unbelievable 🤯
The Bolt is an electric vehicle, thus it doesn’t have a catalytic converter. Why is protection being added for it?
Good stuff, guys. At this point, I watch your videos more for entertainment (or maybe affirmation) than anything. Nice to see experienced Dad and son working together like this. If you end up shopping for a used vehicle, it seems that the dealer add-ons are even more prevalent. In fact, it's the norm rather than the exception. People should try to remember that there is only ONE reason for dealer add-ons (including extended warrantees): it's to increase the dealer's profits. A year ago, I walked after trying to buy a Corvette C6 Z06 after a hundred mile drive to get to the dealer. They insisted on keeping the add-ons, even after I had them remove them . . . and they kept creeping back into the deal. The sales manager was yelling for me to come back as I walked to my car in the parking lot. It was a small-car (Asian) dealership and they REALLY wanted to get rid of the Corvette. Sigh. One other thing for buyers: make sure you know what the dealer means by "out the door price" because they have several ways of fibbing on that item!
I didn't know about "bank rate" on my last car purchase, but I did get pre qualified at my local bank. So I mentioned my bank approved me for 2.5% lower than what they said. They went down 2%, and took off all but one of the extra items and I negotiated the total price minus that item. They even wanted to charge a "Convenience Fee". That's what they charge for offering soda/water/waiting area during negotiations(LOL!). $450.00. I often wonder how they sleep at night.
how do they "sleep at night"???? $$$$$$$ from we consumers !!!
A CONVENIENCE FEE???? AwwwwHELL nawww lolol. You gotta EARN your right to get courtesy out of us lolol.
I can’t wait to see my first convenience fee
They sleep with real-estate agents?
I had them say to me back in 2011 when I was leasing a truck ! We will give you a package price on install products on your truck for $899.00 to protect Paint , body and interior. I said it’s not my Truck it’s yours I’m renting ( leasing) it ! You want to do it you pay not me !
Why do we pay tax on a used vehicle? The taxes were already paid when it was bought new!
And they're paid again every time it's sold. Just like when taxes are taken out of your pay check. Then when you go to spend the remaining money, you pay more tax. What a world!
Even when a vehicle is gifted to you, the Motor Vehicles Dept. to get it registered you pay taxes there too. Pay tax on money earned from a legit job, buy groceries and other products you are taxed, all services rendered to you are taxed, the U.S. government even wants to tax Unearned Income given to you by family members, but what they don't know and you don't report is a grey area. There was a time you've purchased things online and it was not taxed, now it is. The Government wants to make people poorer.
Varies by state.
I have worked for a bank for decades and getting gap insurance is a life saver. If you wreck your car and the value is already less when you leave the dealer and it goes down further you might not have enough to pay off the loan and then you have to carry it over into your next higher than normal interest rate right now. I have seen two people not get gap and had their car accidents and had to bring over 5k and the other 8k to a brand new loan.
Good video. Thanks for covering these item questions.
Finally found a video that talks about "Why do I have to pay for these addon items?" I wasn't sure how to approach a sales person if these addons are on the window sticker sheets. I know most of the addons are not a mandatory item and hopefully we don't have to pay for them.
There is also the added awful outrageous priced DOC fees that dealerships do. I mean come on 300-500 dollar Doc fees - for what??? to pay for your vacations.
Thanks for the video, take care.
Yes a doc free is real . Some actually have to process your purchase 😅😊
@@dallasbrat81 yea but docs fee go from $100 to $2000 ...why charge anything over $100 dollars If that's all it takes ? Especially at flagship dealers.
@@dallasbrat81 I’m not denying it’s real. I’m questioning how reasonable a $700 doc fee (what they charge in my area). The dealer can tell me it costs them $700 to process my transaction, and I’m gonna tell them they need to hire a consultant to work on their efficiency. It’s a profit source and a way to cover overhead (both physical and the cost of human capital). Don’t try to paint it as a processing fee like you’re doing $700 worth of work for me. It’s the car version of resort fees.
@@labachaterairlandesa ok in my state it was $500 . I know the state charges fees and handling costs . I think there are other fish to fry with negotiated car sales
@@dallasbrat81 Yes I know there will be DOC fees, but for 500 dollars???? If you are willing to pay for that in your other reply comment, fine with me, but I would question the dealer on the why so much. Most say it should be around 100 dollars. The license and registration doc fees are listed under another cost.
I love the dynamic between you two as dad and son...and of course all the great info. Thank you guys for sharing.
As a cash customer, I always determine my maximum out the door price and share that with the dealer. They can break down the numbers in a way that works best for them, but that is my absolute nonnegotiable ceiling. If they are unresponsive, I move on and they typically call me the next day. This tactic is effective at avoiding the emotional engagement they so desire to separate you from more money than is in my best interests.
Separate comment. Good program. I take care of my cars and so I haven't bought a new car in twenty years. It runs like I bought it yesterday. What I did was research all the incentives. Then I called my bank/insurance company conglomerate with the information. The conglomerate did the calls to 5 sales managers only and got me a good price.
Another time I went into a dealership with the goal of buying a big black cadillac. I wasn't dressed up. No one was paying attention. Finally, an old man walked to talk to me and asked what I wanted. A left over from the past year, a dealer demo . . whatever. He said we have 140 lemons on the lot, what color do you want? Black. He said it was his last day on the job, he hated the co-workers and he wanted to make a super deal and teach them a lesson. We did the deal and the finance guy asked me who I knew because the margin was squeezed so hard.🙂
I went to Hyundai and it took me 90mins to get the OD price. I walked out and advised the people they not only wasted my time but I wasted theirs. They were pissed, but hey stop pissing around with customers.
😂. I had the same thing. I asked for OTD and I sat there for almost an hour. Nobody else came in and I ended up leaving after a hour and 15 min. They actually call me and ask where did i go and i asked them again for the OTD price which they never called back to give me. 😂
In my very limited experience, dealers make their profit on dealer add-ons, not the price of the car. I equate it to the movie theater that makes little to no money on the movie but makes it's major profit from the snack counter. The mark up on dealer add-ons and the movie theater snack bars are both ludicrous. When we bought our recent vehicle, the place we finally bought from said they didn't do dealer add-ons, so we bought there, and true to their word, they didn't do dealer add-ons. They did try to hold our feet to the fire in a heated sales pitch for the extended warranty. That was about a 45 minute sales session where the finance manager and I were really going at it. I don't think he was expecting any push back, but he got it.
My question is why is this industry allowed to operate like this?
Auto dealers and manufacturing lobbyists. They own politicians. Look up John Oliver episode on them
I bought a 2015 Dodge Charger Scatpack. Chrysler offer me a Lifetime Bumper to Bumper Warranty for $3800 with $100.00 deductible. Best add-on I ever got.
Great warranty, but unfortunately they stopped offering those in 2019 to new customers. The idea was to stop car buyers from avoiding Dodge/Chrysler/Jeep over lousy reliability especially after 75k miles.
Thank you for your new car buying tips. Question... Should've say no to factory and port installed packages and accessories? Do we have to pay delivery processing and handling? Should we pay less than the MSRP?
No delivery fees and processing fees are negotiable. They usually fight hard to keep those on. So I've found the best way to negotiate is find a car on the lot you want. Find out their out the door price, and then say I want the car for X out the door price (usually below MSRP). If you can do that great, if not have a nice day and begin to walk out. 9 times out of 10 they either call you back or push for you to stay and come back with some lower number than their first. My lower X out the door price is also typically lower than their "special end of year price or advertised price".
A lot of times when you see advertised $2,500 cash back, you can also expect them to lower the price of the car by that $2,500 if you tell them I want this car for X out the door. That is one line that is always able to be used to lower the price.
Guys, great stuff. I work at a large dealership in Northern, CA. With the brand I sell, dealer-added accessories are so a part of the culture, and often more than what we charge, that it's kind of grating when I hear customers say, "I didn't ask for them." I wanna say, "We know that you didn't ask for them but we're installing them anyway! lol Holding off on added accessories for inbound units is one thing, but when they get to the store they're installed on and billed to in-stock units, and this makes negotiating them off tougher. But that's part of working any car deal, what both parties are willing to do in the end.
Interesting to watch this after I've put a deposit down on a 2023 Prius Prime (for getting it through allocation). The dealer actually wound up being good about breaking down costs (and I've been able to confirm on Toyota's page on the VIN that's still going through shipment to dealer). There is some markup from Toyota for special color (red) and color protection with base price (and apparently with Toyota there's a $1,000 destination fee). There's just one add on from the dealer that's tinted window (they did say it's something they do with all their cars: I guess I could have asked if they needed to do that since I'll be getting it when it hits the lot). Well it's just over $400 and have read about how tint can help block some sun heat. I'm paying cash. From what I can tell, the dealer is trying to make money off my trade in. If I was looking for the best deal, I'd probably do best trying to sell my Prius 2010 myself. Their trade in value covers all the sales tax, tag, and dealer fees (which in GA, recently we've had a large increase in tag tax). Maybe they were being a bit conservative with the trade in value because an older hybrid battery is always the "iffy" factor. But then also, I've seen that dealers want to make at least 2X what they buy in their used store. At least with all I'm hearing about huge markups with Toyota Dealers, my price doesn't seem to be that way (and this also with a car with very high demand now).
When I was doing F&I, Maryland allowed dealers to charge 3% over the buy rate. It has since been changed to 2%. Often times, just to move a vehicle the GSM would tell us to put it out at the buy rate, which meant we made no money on the back end, but the they did by moving a unit.
I mentioned the 3% cash back from the factory which was the norm many years ago. He denied it then I asked a relative who sold new cars(different makes) and claimed the dealership does get a % refund from each new car sale. I went to a different dealership 50 miles away and negotiated the new truck with a price of 2% over factory price. I saved about $1,200. Better in my pocket than theirs.
@@mr.d.4175 The % back I was referring to was from the lenders. Not the manufacturers. However, the manufacturers do pay kickbacks and bonuses for moving certain models.