The warranty sale profit is the benefit. If you don't buy it because you won't use it, you keep your money. That's why he mentioned it. Your point was moot.
@@simon6071dealers are factoring the financing commission into their deal. If you reject the financing option at the last minute they may cancel the deal. The workaround is to accept the financing. Since those are open loans, you can the full balance within the next month you got into the loan, without penalty (at least not in Canada)
I’ve done this. It works better if you visit the dealership several times and waste days of their time. Also get your own bank in competition with the dealership. Say “my bank will only lend $_____ for this vehicle. My back says it’s not with more than $_____. Also start calling other like dealerships and ask those salespeople questions right in front of the ones your sitting in front of. I left a Chevy dealership one time with an asst manager physically angry in my face spitting because I said my credit Union was $500 under our already agreed to price and went over his head to the general manager to get the final $500 off AND then got the asst manager to give me free bed liner, sliding back window and trailer hitch. He walked up to me and said very angry “what kind of hitch do you want? Are you towing a boat, RV, jet skis or what”? I said “oh I don’t have anything to tow I just want a free hitch”. He went back in his glass booth screaming and throwing things. I hate car salesmen.
awesome lol!! You could be a car buyer for people. My mother hired a guy to do all the wheeling and dealing, and she got a real good deal on a Lexus years ago.
I used physical cash to buy my first first car, it had less than 30 miles. They wanted $27,000, back in 2005 had saved up for several years to get a brand new vehicle. I said I want that vehicle there, but I won't pay more than $22,000. Out the door with everything. They laughed until I pulled out an envelope with $100 bills and stacked it up on the desk. He said $25,000 is the lowest he could go. I started to put the money away. The look on his face was hysterical. I told him if it's still here in 3 days , my offer remains. The 3rd day he folded for$22K
I'm 57, and have never had a car payment. Only bought one new one, and the novelty wore off in hours. Hate dealing with dealerships because of all the games to take advantage of you. Just buy what you CAN afford, and skip all the stress debt can cause. Then save some money over time, and upgrade when you have the money.
If ur average Joe like most people are and u want to build wealth . Don’t have a car payment. 600 month making compound interest is millions later. Ur absolutely right about the novelty wearing off. I went through a spell where I wanted to drive all kinds of vehicles. In the $5k-$10k range. Obviously not mint cars but was fun. Better than stuck in one vehicle with a big ass payment
@@jrr7031Didn't t mean to humble brag. I mostly drove old cars instead of going into debt for new ones, that's how I avoided car payments. Learned to repair them too. Could have had new car debt, decided not to.
@@brucevrooman6107 Pay no attention, Bruce. JR is just angry with himself because he didn't do what you did/ do. There is no better feeling than having money saved and working for you and not falling into the trap of buying a car that immediately devalues.
I bought a car recently and the 'finance guy' said I had to pay 2% high in interest if I did NOT take the extended warranty... but they finally let me now I could cancel the warranty in the first 30 days... so I took the warranty and canceled it on day 25.. no hassle in cancelling (surprisingly)... But I was stunned that they pulled that trick on me...
Warranty has nothing to do with the financing of a vehicle. Anything above the factory warranty is a waste of time and money. They will spend more money on figuring out how to not pay for your repairs than living up to their advertised claims. I’ve had to take out mechanics liens more than once to get paid. Glad I’m retired now and don’t have to deal with it anymore.
Don't be stunned. The finance person is the largest snake at the dealership. They would be giddy if they could make $50 off their own grandma living off SSI
Man you're lucky to get to hangout and do videos with your dad. I use to do projects with my pops and sometimes I felt like it was a burden lol. But when their gone, all you can do is remember all of those times u spent together. Take care of yourself and your pops. Always cherish your time together because the memories will always keep him alive within u.
I'm 68, female, short, and my late father taught me these tricks when I was very young. He'd let me go with him, sit, watch and listen. I've bought no less than 15 vehicles, motorcycles and company trucks over years. I walk in alone, and the salesmen think they've got a sucker. Thanks Dad! You taught me well👍🏼💪.
I wish I could take these guys with me when I buy a car. I'm 68 year old female and the car salesman sees me coming with the word sucker written on my forehead. I've been ripped off with every car I've purchased. The dealership's know how to get every penny from me and I've been so naïve. Hopefully these videos will help me in the future when I'm ready for another car. Thanks for the great advice.
2 года назад+12
If you are in Inland Northwest, you can hire me to be your broker. I take 20% commission of the discount that I managed to get off of their initial out-the-door price
Never go alone Carol if you can enlist the service of someone to accompany you so you won't feel so exposed and weak in the sights of a salesperson. I walked into a huge and impressive dealership to get some brochures (they were for a friend) on a particular vehicle and I nearly panicked, I told myself not to get into a conversation lest I end up signing for a new car.
@@anthonyxuereb792 I was buying a new car for myself, and I asked my gentleman friend to come along for support. The male salesman started engaging in conversation with my GF instead of talking solely with me. Finally, I nicely asked my GF to take a ride for a while until I finalized the deal.
I always pay cash. It is simple, negotiate the deal, if they don’t like your price leave. Once you get your price they will send you to the finance department, that is where and when you tell them you are paying cash. The Last Tahoe I bought took me 3 months to find, but it saved me $10k. The last Tundra I bought took me 2 weeks to find. It saved me $15k. Plus all the financing cost I didn’t have to pay. I also always sell my old vehicle myself. Never trade in your old vehicle.
The dealership was telling me they wanted to buy my car, they offered $4,500 and if they can't get at least $10K for it, they are doing something wrong. So they want to make around $5,500 on my "$4,500" car. Robbers. I have 35K miles on a 20 year old car but if you look at the underside, it looks like it rolled off the showroom floor not too long ago. I know what I have.
That's the way to do it. Negotiate, but don't tell them that you're paying cash. Once I told them that I was paying cash, they kept trying to get me to finance (so they could get their kickback). You know the game where the dealer goes back and forth to the finance manager to see what rate they can get? I wasn't having it. The third time the dealer left us to talk to the finance manager, we walked out and left. We weren't 3 miles down the road when my wife's cell rang from the dealership. I told them that I wasn't coming back. If they want me to buy it, they have to deliver it to my house at the agreed upon terms, an hour and a half away. Two days later, we had a new car in the driveway.
Don't tell them you are paying cash till you agree upon a price. If they start slapping add ons like processing fees, walk away. If they ask how you are paying, say "I'll have an answer for you based on price." If they get dodgy, walk away. Any add ons like super warranties are almost pure profit for them. I bought one of these and had a transmission failure due to a bad tube. They refused to cover it. Complete waste of money. Also a local dealer advertised a really low sales price on their cars. We walked in and offered cash. They said that price was only good on financed vehicles. That should be illegal. It's bait n switch.
FYI, when we sold add on warranties, almost no one (insert laugh here) ever seemed to understand that you already had an excellent warranty for 2-3,5 years already!!!! Then there is the fact that we pay about $150 for that warranty that we sell you for whatever we feel your dumb enough to take. Most are $400 to 700 more!
Times have changed. Dealers used to drool when you paid cash. Now they resent you for it. My parents actually said they were going to finance the car, negotiate the price for that, then pull out the checkbook and pay for it. They upset a lot of dealers by doing that. It also saved them a lot of money.
It easily could have cost them a bit of cash up front unfortunately. There's different discount incentives that are entirely dictated by the oem, and are based on how the deal is setup. Now they definitely upset the f&I guy doing that, but they likely negotiated on the basis of the higher price/lower interest captive finance deal at the same time. So the price was likely higher than it needed to be (changes every month so no guarantees), and there's no chance at all that your average f&i guy will point that out to you, especially after getting cut out on finance. Best thing to do is be honest with the sales guy on method of payment, but then be a wall of "no's" to the f&I guy on extras (that you don't want).
The honest way you handle this is to tell the salesperson, when he asks how you plan to finance, that you only have that discussion after a deal has been struck and you only have that conversation with the finance guy. This way, you're dealing with them in an honest way and not stooping to lying.
I was in the process of buying a Toyota King Cab years ago and I had made a deal of $17,000 or so out the door with my salesman.When I was in the finance dept. and ready to sign the contract the price was $268 more than I was told.When I told her that I already had a out the door deal she said"we can't sell you that for that amount"I asked for my keys back and left.They were trying like hell to get me back but I refused and never bought the truck.
@@MikesDIYbbb actually works, companies give you things you don't even deserve and more if you report them ( i know this from first hand, i saw it happen )
It's pretty simple. You don't even need to negotiate. Find the Internet Sales Manager for 10 to 15 dealerships (more if you want). Send them an email stating.. "I am interested in purchasing X vehicle with Y options. I am emailing multiple dealerships for their best offer, because I cannot stand watching a salesperson and manager playing ping pong w/ a sheet of paper acting as if they are trying to do me a favor. I will select the dealership with their best offer price. Thank you."
Best to buy the newest used car you can afford from a private person. No dealer hassle, no scam fees or stress. Make sure your bill of sale is accurate and the title is signed in the proper lines.
Should always listen to advice and I like these guys. But every situation is different. We just bought a new car first of Jan 2021. The dealership really tried to force financing on us. They said we HAD to finance 80% of the total cost and HAD to pay on the loan for a minimum of 6 months or they would stick us with a $1,600 penalty fee. We expected this and took on the challenge. I walked into the dealership already knowing that the car we were looking at had been on their lot for over 6 months. They wanted to sell this car. We offered $2,000 below their price and called it the out-the-door total. Take it or we walk. Just as we were walking out the door, they accepted the offer. The finance guy started his "speal" about the multi-teered extended coverage, but I stopped him and said "we have an out-the-door price". We were done in 5 minutes. Wrote out a check and drove home.
The salesman spewed b.s. go you. There is no law that says you can't pay cash, certified cheque or money order. Why would anyone do that if they can afford to pay cash? The interest isn't worth it. Used Car dealers are selling extended warranties now. There are some extended warranty companies that will only honour a warranty if work is done at one of their authorized garages. You cannot just go to your local mechanic even though your mechanic's business is licensed as is the mechanic. What a crock!
I still like to pay cash, if possible, simply because I don't want to now deal with a bank, early payoff issues, or other issues that arise from the loan. Even if it costs me a few extra bucks, I don't want to risk the added headaches. I'm not sure if this is the end-all best way, but it works for me and my mental health.
100% agree with you on this. I don’t like to deal with other people with the sale of a car except the car salesman and myself. The bank can fork it. I’m not interested in paying interest. Their buildings are already tall enough
I agree completely. I don't care if it meant I paid a couple extra bucks. In the end, I own the car outright immediately. It is finished! There are so many extra hassles and hoops to jump through if you do a loan, even if you pay it off right away. I just want it all done right away, even if that means the dealership won't go quite as low as they will for someone doing a loan.
@CarEdge you guys are great. Ive learned most of these techniques over the years. I also have an MBA and understand financing issues (to some extent). A few years ago, I was in the back room finalizing a Ford F150 (painful long process). Finance Mgr. was pleading with me to get a loan through Ford Credit. I said, no, Im paying with cash...he said "Well I can get you another $500 off if you take a loan with Ford Credit, but dont pay it off for 30 days..because I will get penalized". I got the loan, an additional $500 off the truck and then paid the loan off (no prepayment penalty) in a week. I didn't want to pay any interest. Regards,
I did exactly the same thing with my last car purchase. The salesman gave me a $1000 credit off the car for financing, so I did what you did, and paid it off within a month without paying any interest. What a dumb way for them to do business.
@@johnschneider2429 Most people pay thousands over market value in interest and it makes them tons of cash, so it works for them. So not a dumb way to do business, but a nasty and predatory way to do so.
I did the same thing recently. I was going to pay cash and they said if I financed it with them they would knock another $750 off the price. I didn't want to mess with the loan but figured I could definitely use the extra $750 so I agreed. The finance guy asked what term I wanted the loan for and I said "I don't care, you pick one for me" because I knew it was just going to be paid off immediately anyway.
A friend of mine who recently purchased a new car had me examine the sales proposal prior to agreeing to it( I was in the business for nearly 40 years ) and many things they told him were absolutely insane! For example 1) $500 in " closing costs " 2) 250 for " DMV paperwork processing " This was in addition to actual state fees, which legitimately in PA are about $75, depending on if you need new plates... 3) an additional " Doc Fee " of $475 4 for their grand finale, they told him that, under state law, he had to finance with them....if they accepted his cash, they could " lose their license..." I of course told him if he wanted to pay liars an extra $1300 bucks for absolutely nothing real, he was dealing with the right guys. I did a little research, directed him to a dealership that was well recommended.... He's driving his new car now. I'm sure you can guess where he bought it. Great video, guys.
I'm looking at a 2023 I'm trying to find the best deal and the best car maybe Honda or Toyota can you help me please to pay cash they're dragging me with all these fees first of all I know I don't go in and say I pay cash but I did The first three car dealerships Honda Toyota and Nissan first of all they had me in tears and I knew I wasn't supposed to pay none of them big heavy fees but they were just like going back and forth I know the man come up to me and just said no I have to pay them fees when I had clearly $30,000 in cash in my hand Well in my pocketbook I just don't know what fees I have to pay and I don't have to pay please help me
@@wendy8561there’s a video here on this channel where they explain everything and what fees you don’t have to pay and which ones. Here are some I remember 1. Destination fee 2. Doc Fee 3. Pipestrip Fee 4. Market Adjustment fee 5 Advertisement fee 6. Refuse Nitrogen Air -filled Tires 7. Refuse Life Credit Insurance Keep watching this channel. You will learn much more !
You know all that going in. You want a new Chevy, you are only willing to pay 50,000. The dealer says 51,000 you walk. The dealer says 48,000 you walk again because you know they are going to add 2000 more. Not matter what you say, 50,000 is it. If they demand more, you move on. Nothing personal, the deal is just not for me.
My last used car was selling for $10k plus taxes and dmv registration. I got the dealer to agree 10k out the door with financing. The finance guy kept trying to sell gap for almost $1k. He tried everything, he then said he would add it for no cost but he actually reduced the price of the car by $900. So next month I called bank and canceled gap and they refunded $900 😂
I bought a new Ford Focus for 2013 for $12,500 including 2 keys and mats (it was manual and had hand-crank windows). I told them I was going finance it, and I financed it at a ridiculous interest rate at 18%. My FICO score was 823. There weren't any other fees except for transport, tax, a small prep fee. There were no prepayment penalties. I paid it off less than two months later. I never would have gotten the car at this price if I hadn't financed it.
I recently bought a new F150 for 26 percent below MRSP. No extras, 5 year 2.75 percent interest rate with no money down. No extra warranty or service contracts. And I was out of the dealer with my new truck in less than 2 hours.
Gotta be careful of “minimum finance charge” if you try this strategy. I like to just say, “Cash. I will pay out the door this much.” And if they let me walk, there are millions of other car places and I can wait a few months until the “new cars” are being replaced by the next year models and the dealers have to now take less anyway. You do not have to finance to get the best deal. You are a sale to them even if they do not make as much on the car. They can always order a new one right when you leave for the next sucker. Just know your market and what you can get. You can try one dealer and just stick to crazy low guns just to see how far they come, then try another and so on. Remember, you do not care who you buy from.
My favorite is the "dealer inventory tax" and the paper work in most states actually has to say "this is a fee charged to the dealer and not mandated by law to be passed to the consumer" and people still pay it lol.
Is this the document fees you're talking about? I'm going to pick up my car in the next few weeks and I'm wondering what Bs they are gonna try to tag onto my OTD price that I was given lol
@@rickmarshall-hk5ys I'm about to buy a car and I completely forgot about that. I'm good with numbers not words so hopefully I play hardball correctly lol
I just bought a car with cash, but I used all of your advice getting the “out the door price”, then began negotiating away all the fees, getting extras thrown in, then finally telling them I do not want to trade in my nice truck or finance. Feels good to get the last laugh.
@@siamajidi2761 It was a bank draft. All legal. I think a sale is a sale. You say “How much?” And they answer… can’t really add in extra financing costs. Most people do finance, so they like the extra $$, but it is not really part of the negotiated price.
@@siamajidi2761 Of course, but their dealer ratings ratings from the manufacturers put a high value on the number of cars sold in a given time frame. So, more times than not if you wait it out you will get your price within reason because they want the sale stat. Often, the closer you get to the end of the "sales period" the better deal you can get.
You can do the financing through your own bank. Or if it’s cash, you get the out the door price, minus trade then pay cash there. You don’t need to have the dealer pull your credit causing it to go down for no reason.
your credit score does not always go down when a dealership checks it. Mine actually went up after I financed a car. It moved from 820 to 835 and I checked it about the beginning of the next month using my bank's APP.. Of course that was 2019 and things could have changed since then.
@@RonBand01 it’s an algorithm. Which is based on past experiences like delinquency, or if you pay on time even if you pay ahead of time. Credit scores are just a gauge as to how well you stay in debt. If you make the payment ls when you should, not before or after then your credit score will go up because you pay interest. It goes down when you either can’t pay, or you pay it out in advance. Banks don’t make money on either of those transactions, so your credit score drops. When I didn’t pay, it went up, when I cleared my debt, it dropped
@@rodger7029 the point is you can negotiate your own terms outside of the dealers banks who gets kick backs for ripping you off. But my full opinion is, if you need a loan, you can’t afford the car
Get Destroyed, I think you are mostly if not fully correct in your statement.....in the case that the customer is Truly going to finance the purchase amount of the vehicle. But the point of this video is for the case where the customer is Actually going to pay Cash for the full final purchase price of the Deal. They go in with the disguise of "planning" to finance the car loan, with the aim to get the out the door price as low as poss. Yes, they Might end up with their credit score taking a hit due to the dealership running their credit, but it will be worth it in my view because they will be saving Thousands in the vehicle purchase deal when it's all said and done. Their credit will recover. Of course this is all based on the said customer being responsible and managing every dollar of the income properly. I think it all goes hand in hand, as a person smart enough to pull Marco's technique off and having the full amount to pay in Cash, is already a financial wise individual.
Am sure I am incorrect... just bought a new Buick. We set the price, I was paying cash... we were in agreement and set.... then came sales tax, 9.1% and admin fee, $499..... just could not do with those extra charges... so I offered to pay the agreed on price and they could put the extra charges on their side of the deal... after heading out of the office... they agreed.... I was happy, so were they (?)... not sure of how this looks to others... hate buying cars.
Wanted to leave a comment to thank you for this video and the free Out-The-Door tool! My wife and I were first time car buyers and we used the advice from this video to get a deal that we were very happy with. We really didn’t know exactly what we were getting into, being first time car buyers, but after watching these videos we were not surprised by any of the tactics the sales people gave us. We ended up walking out of the dealership because they were not at the number we wanted and as soon as we got down the road they gave us a call offering the OTD price we wanted. So I just wanted to leave a comment saying thank you for the video, it really helped!!
Exactly. I'm fixing to purchase new and tell you what I'm NOT paying a dealer fee EVEN IF ITS THEIR MANDATE! I'll purchase out of state if I have to I'm NOT married to a nearby dealership.
A new car comes with a warranty, usually 3-5 years of bumper to bumper coverage. You do NOT need an extended warranty until your are approaching the end of the manufacturer’s warranty. Then, IF you plan on keeping this car, call your credit union and get an extended warranty from them. I always do it this way. My CU sells a magnificent extended warranty with ZERO deductible, BUT you must get this BEFORE the manufacture’s warranty expires. No gaps. I save tons of $$$ this way.
I was at a dealer, got to the out the door price, had my insurance check that covered the cost of car to the penny, and the dealership refused to sell the car, indicating they only deal with people who finance their cars. I made a stink about this as my husband and I got up and walked out, speaking really loud... and 2 other couples got up from their tables with finance people and also walked out.
Years ago I paid $900 for a 3 year complete drivetrain warranty. When my universal joint broke, I found out that many parts of the drivetrain weren’t covered under the policy. U-joints were not covered. I’ll never buy extra insurance again.
Had a brand new Volkswagen Passat about a decade ago. Little things popped up during the "warranty" but every time I tried to get it fixed under the warranty, they told me it was "normal wear and tear" and therefore not covered. Warranties are generally garbage, especially extended ones. Never pay extra for them. Needless to say, I'll never buy Volkswagen again.
on my first car that ive bought to dealership, they slid some paper after i said no to extended warranty, probably done it after i readed the paper. made me sign it without knowing it. almost 3k of warranty. i was furious when i discovered it, was able i revoked it. watch yourselves ! hehe
Dude, I almost cancelled the sale completely on my Honda in 2009 due to this, at Huntington Honda on LI, the guy would not let me say no, started with “you’re taking food out of my kids mouth by not opting for this”, and a load of other “guilt trip” crap, I told the guy, one sec, lemme go to the bathroom, I go to the sales guy and say “get this guy off my back, or the deal is off, and I’m walking outta here”.
Yes! When you are negotiating the price they tell you what a great car it is, how you can't buy a better vehicle, how long it will last and how smart you are to buy one! Once you agree to buy and get the paperwork rolling they send you to a guy who tells you that you need to spend a couple thousand more on an extended warranty because what you are buying is basically a piece of crud that falls apart if you look at it cross eyed!!
When the dealer tried to sale me an extended warranty I told him I better not need it on a Toyota. Would buy one if I was buying a Chevy. He had no comeback for that.
My last car I bought from a dealer was a low mileage used car. It was loaded with every option which was rare for a Mazda 3s hatchback. The price was unbeatable and I wanted the car. But I didn’t let it show and didn’t tell them how I was paying. We negotiated and got a good deal. Then told them I was paying in full, so there wasn’t any financial Mumbo Jumbo. They seemed set on price and weren’t trying to throw in anything. 11 years later, still driving the car and still love it.
1. Marco is ABSOLUTELY CORRECT! Pay cash if you can but don't mention it until the out-of-the-door price is set and approved. 2. Why the hell should I be concerned about stealer's bottom line?!?
@@jasonschwartz2347 Why? If the financing terms have not been discussed thus are not a part of negotiations... But make no mistake about it, they can - with or without a legitimate reason - back out at any time until the papers are signed. Remember: you are dealing with professional crooks with no integrity.
Maybe cause that's where you will be bringing your vehicle back for service and recalls. They're a business just like any other and need to make money to stay in business.
I bought two Fords from a dealer in a larger nearby city. During the first purchase, the salesman played a lot of games including a firm push for an extended warranty. I have been back a few times for oil changes and other service. During about half of the visits I get to hear some customer arguing on what their extended warranty does or does not cover. I've heard enough to never want to buy an extended warranty. The first car we purchase from that dealer we owned for 12 years and all we paid for was oil changes, two or three batteries, a couple sets of tires and one time paying to realign the front end after my 14 year old son hit a curb very hard during his second driving lesson. I don't think that the extended warranty would have covered any of those expenses, so an extended warranty would have been a waste by any measure.
Dealerships make 55% of their yearly gross by just selling a car. Selling ext. warranties, lifts, aesthetic add-ons, carpets, winches, and a chimney if they thought they could. WHY would you pay for the oil, batteries, tires and parts - and the high mark-up of the application of these costs. Get a friend outside of the dealership to return a favor to her. I HATE DEALERSHIPS CUZ THEY NICKEL + DIME YA TO DEATH.
Never had an extended warrantee in my life, till the last two SUVs I've bought. I wait till the bumper to bumper is over and buy another 100k 5 year warrantee backed by the manufacture. In this case GM. I shop it on the good old internet. Last one was $2600, at the local dealer. $1600 at an out of state dealer, for the same thing. Both have paid for themselves, several times over. My 16 Acadia has had over 7k in work done in 125k miles so far. I still have 10k of warrantee left. Everything on the darned thing is a grand to eighteen hundred.
Not a waste by any measure; only by your experience. Mine was the opposite - my extended warranty paid for itself six months after I bought it after the factory warranty expired. Nothing's cheap on a Superduty so the extended warranty was a no-brainer, statistically as well as in practice. But as with all things, your mileage may vary....
@@frontagulus exactly! I for instance have a hybrid car and the electric battery with the electric battery systems and the motor is still pretty expensive in case something bad happens. I live in a place that it snows a lot and there’s a lot of road salt and anything could go wrong after a few years with the hybrid system. So I decided to purchase the extended warranty only because I have a vehicle that runs both on gasoline and electric power. I’m OK dealing with a regular maintenance on a gas car but if something were to happen to the hybrid system it would be an arm and a leg and some. So it really depends on what type of vehicle you’re buying whether or not he’s in the warranty is going to be a good choice.
@@griffinreitz7041 interesting. I assumed it was more expensive to buy the extended warranty later, although I suppose there's no economic reason that would be true, besides this: The dealer can bet you won't even keep the car that long and they'll pay out zero under that extended warranty. Once you own the 4 year old used car with 50K miles, they know you've kept it and will be using that extended warranty. But then you don't know that you'll be keeping your new car either, life throws curveballs.
went to buy a Dodge truck, was their a while i told them what i could put down & what i could pay, they didn't want to bend to what i needed, i left went right down street to a Nissan (i really wanted the Dodge) they gave me what i wanted for close to what i could afford, 2 days later Dodge called & said they could give me what i wanted, when i said i bought a Nissan he blew up, i could have gotten you more truck for same price, i said YEA you COULD but didn't
@@rolfkoseck7228 My dealer overcharged me on the dock fee ($500). The actual fee was $250. I filed a complaint with the Officer of Consumer Protection and got a check from the dealer for $250.
Thank you for validating my decisions to 1. Never buy a car from a dealer, and 2. Never take a car loan. In nearly forty years I have purchased exactly one car that didn't give me the value I paid for.
Depends on where you are buying. Carvana and Carmax there is no negotiating. There is a price you take it or leave it. Refreshing and no BS. I bought my first car at a dealership. They do tack on everything includng the kitchen sink. They do nothing but try to rip you off which is why I don't deal with dealerships ever.
I fund auto loans everyday. There is only about $1500 to $ 1600 between MSRP AND INVOICE and they rip you off in finance with hard adds and aftermarket products. Also they charge you a doc prep fee that can be as much as $700 just to print the contract you sign to purchase the car. California caps their doc fee at $85.00.
I was taught to identify a car I wanted, identify the price I want and walk into the dealer and tell them "I want this car for this much" If the dealer can't meet that, Leave and look for another car simple as that. This leaves you with nearly all the power gives the dealer a minimum amount of time to judge you as a customer, prevents any weird haggling about fees or accessories, you also never end up paying for something you didn't want, ect ect.
Agreed. I did this once paying cash for a Toyota truck. I walked out of the first dealer. They called me for a week. I ended up getting the price I wanted for an even better truck at another dealer (4 or 5 dealers). I don't always have that much patience but that time I did it right.
So, here is a question: why not just follow this "guide" but when you finally get your "out the door" price and when they put the finance paperwork in front of you to sign, why not just say that you change your mind and you decided to pay cash instead? Can they refuse to sell it to you even though both parties agreed on the price?
True words. I waited till the last minute on a car deal to reveal that I was a cash buyer. We were locked up in negotiations. I said to the dealer as I was getting up to walk away from negotiations, "well, I was here to pay cash, I'll just go across the street". They tripped over themselves to keep me there and make a deal. They also get incentives to move inventory, and they wanted to at least move the vehicle off the lot. We ended up in a fair deal for both parties. I say fair for both, because I'm not there to hose the guy, even if he is there to hose me.
2 года назад+6
I would have hosed them. Wait for a week and let them call me back
It’s never truly a fair deal. The consumer will always get hosed because you will never truly know the dealer invoice on new cars nor what it cost them to purchase used cars. IDC how much info is floating around in the web in researching. I know for a fact that KBB is tied directly into these dealerships. I researched a car and used generic info to get a car’s trade in value, retail, and private party value. I plugged in exact mileage and trim and accessories. I received a “value”. Next I inserted the VIN to get the same values and low and behold all of those values were significantly higher!!! Like on the high end of the values which was very close to the dealers asking price!
You guys are the definition of awesome! Thank you for your efforts to bring your expertise, common sense (not so common) and truthful opinions to those consumers who need a break to afford one of the most expensive purchases in their financial lives. Thank you and God bless!
Our cars are high-volume models like Toyotas. Here's what works. YOU SIMPLY DON'T NEGOTIATE, YOU DICTATE PRICE. You make a list of every Toyota dealer within 200 miles. You go to the first dealer, ask for the price (let's say they want $30K), and walk away. You call the second dealer on the list, and ask them if they'd sell you the car for $29K. Repeat, repeat, repeat until everyone says, no. The final price has dropped dramatically. A Toyota Highlander is a commodity, so it's easy to play everyone off each other.
Totally agree, do your research and figure a price that's well below sticker price and you tell sales person what you want to pay and be ready to walk off they can't. I already have a list of dealers when I buy a car, move on to the next one, let the salesman know you have choices and be willing to walk away.
@@adriangutierrez586 He's saying you call Dealer #1: You: How much do you want for a new Blue 2024 Toyota Highlander? I'm on a budget here, and do need the lower price you're willing to take. #1: That would be $30,000. You: Thanks. I'll be touch. You: Hi Dealer #2, Dealer 1 has a Blue 2024 Toyota Highlander for $30,000. Can you do any better on price than that? #2: Well, I don't know. Let me ask my manager...... [on hold] He'll let me do $29,000 if we sign today. You: Great. Sounds real good. I'll just check on some things and might stop in later today.... You: Hi Dealer #3. I was really interested in the Blue 2024 Toyota Highlander. My loves it. I saw it over at Dealer #2 for $29,000. It's likely worth it. But, I happened to see your commercial and was just wondering, if you can beat 'em price. #3: Lowest I can go is $25,000. You: Wow! That's such a great deal for such a nice car. I'll just get final approval from the wife, and we'll head over to see it in person and maybe sign some papers. You: Hi, Dealer #1.... It's me again. You know, I happen to see that Dealer #3 is offering the same that Blue 2024 Toyora Highlander for just $25,000. I really like your dealship and all, but I can't pass up $25,000. Can you have any way you can beat $25,000? #1: Well, that $30,000 was a steal. I can do.... Boy $25,000? I can't.... Hmmm... Alright, tell you what. you come in this afternoon, and we can get it done for $24,800. You: Great. great. That's fabulous. Me and my wife might be able to swing by this afternoon. I'll be sure to ask for you as soon as I get there. ... At some point there will be a minimum price that none dealers are willing to go below, because they need to make money and pay commission. Generally speaking if you look hard enough you'll find some pretty accurate estimate of the true cost of the car plus minimum markup online. So, you know about where they should stop. So, when you walk in to the dealership, you can say I want the Blue 2024 Toyota Highlander for $25,000 just like I talked with [name] about. I am not sure if I agree with this tactic, because you're stringing along salesmen using the time, and they end up not making money on the deal. At the same time, you really do want to buy from them, if they give you the best price.
I did once, I negotiated like I was gonna finance, got them to agree to a super low price because they thought I would finance with them. And once it was agreed, and they thought I was gonna finance on the said price, I pulled cash out. The manager was pissed lol not once mentioned I was gonna do cash lol
Honestly this is the proper way to do it. Every dealership wants you to focus on payments and if they are all in on everything the get the deal done, just whip out your check book and write it out. When you have a deal, they won't back out unless you're becoming a disrespectful D bag.
@@jasonschwartz2347 They can back away because no papers are signed at that point. If you have the cash...you can be flexible. If the dealer insists on the loan (as they said on the video) take the loan and pay off after ten days. It will still cost you a few dollars but may be worth it.
@@UTube_userRMThanks for your input. It's funny, that's what I did with my last car. I took whatever interest rate they gave me, and paid it off two weeks later. Will utilize the same tactic next time as well..
Thanks for making this video I bought a new car yesterday and if I hadn’t of watched this video in advance I would of been so under informed this video literally saved me $3200 in hidden unnecessary fees . The dealer thought “oh I got her” little did they know they had a force to be reckoned with on their hands 😀😀 love this video ❤️
I worked at a dealer years ago as a service tech, got to be good friends with the owner's grandson. He showed me were they make a 100% profit on all trade-ins, even if they had to put in a few dollars into it to resale. That is were they made a lot of their money. The second thing is when I bought my last new car (not a the dealer I had worked for) the loan officer try to tell me not to pay my loan off early, it would hurt my credit score. I didn't say a thing but I was going BS Bub in my head. A couple weeks later, went to bank and pay the thing off.
It doesn't hurt your credit score to pay a loan off early. But having a long term loan that you consistently make on time payments for does in fact help your credit score. It is by far the biggest influence on your credit score. But having said that if you've got the cash on hand to instantly pay off a new car then it''s unlikely you''re concerned with trying to build up your credit score at that point in your life.
@@Rowgue51 me too. When I buy car I never discuss finance, just give me a selling price without the tax and fees and I will discuss financing later. Once price agreed, I will tell them this is a cash transaction, if they increase price, I walk. Also I never trade in the dealer. I buy the new car I want with cash then sell my old car later when I get a chance to pretty it up and sell it myself.
it does hurt your credit score if you dont make payments for 12 months. I bought a new chevy truck and financed with gm....3 months later I found my dream car and traded it in.....it tore my credit up for not having the loan for 12 months.
@@Texasprepper I always paid cash for cars ranging from long time ago $20K to my current car I bought new in 2017 at $50K. I use and keep credit card all the time to get cash back but NEVER carry any balance, neve have I paid a penny of interest, yet my score have never go below 780, as of today my score is 816.
The last vehicle I bought was a 2019 Jeep. I negotiated the out of the door price and used my USAA buyers service to get the lowest price to start with. Jeeps notoriously have very little negotiating room, but the dealer wanted to move it because the 2020s had hit the lot. I stood firm on a very low price for the jeep and my wife helped because she didn't want me to buy the jeep in the first place. So she was very on price, and payment. The result was the killed me on terms, and sold it at a rock bottom price. I called the bank the next day and they said it would be a week to process, and they would call me. Four days later I paid off the vehicle. Several days later I got a call from the dealer, but I never returned it. They not called me since then.
I'm 50 years old & have never had a car payment. I've always paid cash & you said it. It's always been out the door price for me. My last purchase, they were asking $8500 + all the taxes & fees. I lowballed at $7500 out the door & ended up at $8400 out the door, which was about $1k below market value. They paid all the fees & taxes, so I saved that too. It also helped with negotiating because the vehicle had been on the lot for 45 days.
Same age and almost the same experience- only once had car payments on a new car when in my late 20s and never again after that. Not completely against the idea of a car payment itself, I am just not that interested in spending a lot of money on car, so I drive used vehicles. Helps if you're handy and now how to do some basic repairs on your own, and youtube is a huge help in that regard as well.
@@lisag18 I'm not wealthy. We didn't have much growing up, & we were taught the value of a dollar by honoring God 1st with it. The rest falls into place.
Here in NJ after the taxes, we have a state gas guzzler surcharge if it gets 15 mpg or less. We also have a luxury car tax if thr car is over 35K and lets not forget the state rubber tax of $1.50 per tire. The state leaves nothing for thr dealer to add on!!!! Great vid
Loved it in the movie ‘Fargo’ how they portrayed buying a car. The salesman says he would have to talk with his boss first, and then they show him just shooting the breeze with his boss before coming back to the customer with the decision he had already made. Recently went to a dealer and was given a printout on the cost of a new car. Later we discussed trading in my old car, which should have been in the neighborhood of 3-6k, the salesman disappeared and came back with a new printout, this time adding some new numbers they had left off the first one, which now with the trade in were basically the same as the earlier printout. Fair or not the optics were horrible, I walked.
I did the same thing to negotiate down as far as I thought they would go with the out the door price. Then when they put the finance papers in front of me, I wrote a check. No finance fees, no nothing just out the door cash...
I did exactly what he said to do. I saw his video when he posted it and it worked well. I did the payoff in two weeks and did not wait for the 30 days. You guys just reinforced what I believed. New to the channel and I love it.
If you learn anything.. look at this father and son relationship. He lets his son lead and only really chimes in for learning purposes. A GREAT TEACHER and fantastic FATHER! I hope my son and I can have this banter with me as a young adult.
I paid cash when the salesman dropped off the car at my home. I never went to the dealership. I never even spoke to anyone except salesman. The salesman even drove away in my trade in. Maybe I could have used this negotiation tactic to save $500. It’s not worth it for me. I’d pay $500 to not ever go to the dealership.
Your first mistake was trading in your car. You lost a lot more money than $500 on your trade. Always sell your car yourself and you will get more out of it. Dealerships have to sell your car for more than they give you for it to make a profit.
@@andrewhuffman7156 You save the tax on the trade-in portion. So you are not losing out. Furthermore, you have far more negotiating room with a trade-in, as dealers are desperate for cars to sell, and they make way more money on used inventory. The lowest APR (with good credit) is around 7% on used cars at most dealerships.
@@georgejones5019 You save the tax on the trade-in portion. So you are not losing out. Furthermore, you have far more negotiating room with a trade-in, as dealers are desperate for cars to sell. The guy doesn't know what he's talking about. Trust me, you did good!
@@AbleMable I agree, personally, my trade-in often still have good KBB value, likely to be over $20K so finding a buyer at that price range myself going to be tough, not to mention other security concerns. Plus like you said, the tax saved on trade-in will balance itself out. I traded in a 15 Challenger SXT+ 50K miles for $21k last year, saved $2K of tax toward my new car. 3 months later I looked up online & the dealer sold it for $23.5K. Totally acceptable to me.
So true! I paid 2k for extended warranty on my 2016 Ford...It's about to expire ( I have owned the vehicle 6 yrs) and haven't used the warranty .. I would NEVER buy extended warranty again!
I bought My Hubby’s Truck with cash. I simply put the amount on the check & told them to fit everything into the number or No deal. I also let them know I was willing to travel 6 to 8 hrs away to get the same truck with the price on the check. It was 5pm on a Wednesday night & they needed to make a sale. It worked 👈🏼 & My Hubby was happy.
5:29 - I lucked out at this point on my first car. I was already financed at a pretty decent rate, but I said nothing. Let the sales guy do his 4 square, etc. haggled on cost a bit (got nowhere), then got to move on to the final boss. They tried to hit me with their "best" finance rate, which was a touch over 4% above what I was financed by my CU for. When I mentioned that and pulled out the documentation, the finance guy magically found a lender that beat it by a couple tenths of a percent. Was probably my only real win that night. I didn't get sold on the extras like paint protection, etc., but I did get the extended warranty which for me did come into use a few times, though I doubt it fully paid for itself.
RUclips tip, when starting the video, drag the progress/timeline bar to the end of the video and then click the replay button. Viola, no ad breaks now in the video.
I can also attest to this. I have only owned hoopties and was trying to get a more reliable car. Got to the beginning of the Pandemic and stated I need to get something with a payment which I had avoided my whole life. Watched some videos and why you don't tell dealerships you are paying cash. It was spot on as to what I was warned about. And i was buying used. Same as the movie theaters... Concessions are so expensive because they don't make money on tickets.
I have seen many different videos on this subject, including Marko's whiteboard and Kevin Hunter' Super High Intensity Training. I find that all of them have similar advice. Fake Fees, bogus add-ons, and financial office tricks. I fell for all the dealership tricks last time and wish I was better prepared. Now I am educating myself so I can get a better deal. Thank you for all the free advice.
The government bs fee is cleverly named dealer fee separate from the typical documentary fee. It’s normally referred to as “electronic registration filing” or something similar. It is essentially a dealer fee with a more official name that almost sounds like it’s going to be paid toward a government agency. In my state, this was considered misleading and they now have to make a disclosure on every contract that this fee represents costs and profits to the dealer.
What is the drawback to going thru all the negotiations and finalizing everything, THEN telling them you are paying cash? wouldn't all the agreed upon prices and fees still stay the same when putting cash on the table vs a 1-2 week loan?
Papa A's Off Grid Retirement - good question. My guess is the dealer would say something like ..."we negotiated based on you taking a loan and cannot honor this price for cash" It'd be good if the Father & Son doing these videos replied to some of these questions.
@@jg11596 Good point. If you agree to the final price and there is no penalty for advanced payment on the 'loan', why not immediately, (not 7 days later) just pay the full amount?
I was a finance director for a major dealership for 11 years. You have front end money (Selling the car) and backend money (Selling insurance, warranties and accessories). It the dealer breaks even with the front-end money (Paying the dealer overhead) it is considered a win. The profits are in the back end. I always wonder why someone will buy an extended warranty when the car comes with a full warranty. Most people will trade their car, before the factory warranty runs out. They forget to cancel the extended warranty, and the dealer is sitting fat and happy with pure profit.
@@ChadRedling1 Holdback will just pay for a portion of the overhead for daily operations. Some factories will give the dealer a volume bonus on selected models. That help cover part of the overhead.
Years ago, I was negotiating on a used car. The dealer tried to set me up using in-house 'Rule of 78s' interest calculation. Fortunately, I was a banker at the time and understood the terms. (Buyer beware if you plan to payoff or trade-in before the end of F&I term). I found simple interest financing elsewhere. Might be an interesting topic for your followers.
One Main Financial tried to lock me into a 6 year loan agreement using this pre-calculated interest loan method!!! I got another loan and paid that 5k off so quick!!! I didn’t even know those type of loans existed!!! Thank God, my credit is pretty good and I wasn’t stuck with them. I realize I should have never agreed to the terms, but my plan was to pay it off over 3-4 months, and the loan agent didn’t specify why that would be extremely hard to do given how they calculate interest. I’m glad I looked over the paperwork and did my research sooner rather than later!
@@mistrbravado How did you know he was doing that? The interest is usually on the paper work, correct? How did you know he was doing it on those terms?
@@chazly30 the interest rate is clearly listed on the document. But, the way they charge the interest on a pre-computed interest loan is completely different from an interest-bearing loan plan. I didn't realize there were different types of loans. It wasn't until after I had the loan and I was planning a budget to make sure I could pay it off quickly because the interest rate was incredibly high. When I logged into my loan account, the loan balance was $9,000 immediately after funding. It was strange to me because my other loan balances slowly grew over time. But they had already calculated and charged the interest from the beginning. So, when I did my research I saw how impossible it would be to pay it off quickly because of how much interest was being loaded at the front. The payment would have been $193.91 per month and of that, in the first month, $171.41 would have been counted as pre-computed interest, with only $22.50 going towards what I actually borrowed. It's really complicated stuff the rule of 78... and the longer you wait to pay it off completely, most of what you're paying in the beginning is almost completely interest.
@@chazly30 The main thing is since I did get it paid off super quick, I didn't have to pay the 9k to settle the debt. But, even if I came up with the whole 5K in the first 5 months, they would want the principal loan amount of about 5K and then whatever amount of the interest they "earned" over those 5 months which would be around 200 per month. So, I'd end up having to pay them approx 6K for borrowing 5K 5 months ago. And If I were to just pay the loan over however many years, I would end up paying them an extra 4-5k for borrowing 5k. Be extra careful out here, do your research, read everything, and ask questions! I definitely had to pay "earned" interest of 2-300 dollars even though the loan's principal balance was paid off in less than one month. Keep that in mind.
Here in california, every new car even used car I bought from a dealership once you get to the back finance office they have the ability to lower the interest rate. When they tried to sell me the extended warranty I tell them that I never buy extended warranties on anything. Once they realize I'm not biting they lower my APR on the vehicle to weasel in the extended warranty at a net zero additional cost. So they do have bargaining room back there.
Years ago we purchased a new 2007 mercury grand marquis and we purchased the extended warranty. Boy am I glad we did. Rebuilt transmission, whole dash replacement and much more. That warranty paid for itself 3 to 4 times what we paid for it.
Bought a used Jeep Liberty with 20,000 miles. In the 4th year, the keep had 90,000 miles and a blown engine. Dodge has a built in power train warranty on all of their vehicles. The warranty is good until 5 years and 100,000 miles. I didn’t purchase any warranty, but when I brought the car to a non- dealer mechanic he told me it was covered under warranty. Dodge replaced the engine with a brand new one for $100 out of pocket. Just sharing because a company that does that stands by their products. I just had to show proof of oil changes which I did.
After years of paying contracts for various cars, I realized one day that those payments could have been my million dollar savings and investments. If I had to do it all over again, I would NEVER had bought any luxury car to impress anyone. A cheap used car would have given me the same exact pleasure out of life as a new one. My American attitude kept me vain for years. Now after 60 I am starting all over again. Don't let this happen to you.
Yep. My wife and I always had a "nice" car which we would buy with 10K miles (mid size car like a Taurus or Edge SUV), but I always drove "rolling toilets" - cheap used cars/trucks I'd pick up and run for years. In the almost 40 years we've been married, we essentially were a one car family expense wise. Cheap older second cars cost less to insure and less in property tax. We're retired now, paid our two son's full college ride giving them a good start, and our net is over 1 million dollars. I just wish I had done more with investments.
I used to work for a franchise operation and what you are saying is very true. The margins on new cars are very low. The margins on finance and servicing are very good.
Two good stories. 1) I know dealerships have the room bugged when you're waiting for the salesman to come back after talking to the manager. So, I did a bunch of fake talk in the room to my wife. I told her lets leave when he comes back and go to that other dealer that was giving us 10K off a 70K truck. Guess what?, when he came back he gave us the magic number of 10K off the price of the truck we were negotiating for. 2) another dealer on another vehicle I literally negotiated with one foot IN the showroom, and the other foot outside to show I was leaving. I got the price I wanted and came back into the showroom.
Also believe that is true as we have done fake talk on trade in etc. and ended up having the almost exact deal presented as we had discussed in "private".
Kudos to you and your Dad working on this really informative channel! I wish more experienced (older) folks would share their years of knowledge and insight to help others. We need more teams like you guys!! Thank you!
I really appreciate the down-to-earth conversation. I feel like I'm getting advice from a father or a friend who's in the know. The technique of critiquing someone else's video was very helpful to establishing a sense of trust.
You can say all you want that the sale takes place between you the salesman and the sales manager, but the Finance manager is the dealerships stud. He protects the profits from the mistakes on the sales floor. He’s the slickest guy in the dealership. I just bought a 2020 Cadillac that was advertised on the dealer’s website as a CPO. The salesman gave me a CARFAX that said it was Cadillac CPO. She handed me the 172point CPO checklist. It was signed by the mechanic, her and the service manager. They had me sign it. Great I am buying a CPO. In to the Finance Managers office I go. Had already been at the dealership for 2 hours, now another hour at least. After signing and reading 20 pages of documents, I missed a line on the Buyers Guide. This doc showed the warranties. They expertly distracted me by giving me a 90 warranty on a 2020 car with full manufacturers warranty and left off the CPO. I discovered this after I left the FMO. Too late. Once I left that office the deal was done. Cheated out of a CPO. Currently have a complaint in to Cadillac Customer Service. But I already know they don’t care. Buyer beware. You must, you must read every line of every document you sign. Situational awareness is critical. These guys use these tricks every day of their working lives. It is impossible to catch every one. Still, I have owned over 50 cars, trucks, boats, other vehicles in my lifetime. Been slicked and tricked before. Never been cheated so blatantly. My first Cadillac. Man do I have a sour taste in my mouth. Thank God it’s my wife’s car. I can’t even stand to look at it.
It's always been my understanding that the financial office is the one who ultimately decides if the deal will go through? I'm not sure or convinced the can be totally taken out of the equation, if taken out at all. 🤔
Good video and good job. Over the years, our 2012 Prius V has been vandalized by rodents. I wanted to provide a couple of tips. I had to use metal screening to keep them from going into the snorkel which leads to the engine air filter, as well as the passage from the windshield cowl to the cabin air filter. Also, peppermint oil seems to keep them away but you have to apply it often. Finally, our most recent rodent damaged a fuel line near the gas tank. It was repaired by a dealer who told me that my car insurance might cover it. I filed an Insurance claim and they paid it.
Good information all. The most important numbers to me are MSRP, out-the-door price, and APR (interest rate). The OTD price should be at or below MSRP, if at all possible. The APR should be as close to 0 as possible, and always have a preapproved rate from another bank before stepping foot on the dealer floor. If buying a new car, it helps tremendously to know about all available manufacturer incentives. Despite the crazy market today with chip shortage, I managed to get a price below MSRP, plus $500 manufacturer rebate, plus 0% APR from manufacturer’s finance company. The most common tactic is to talk about monthly payment. I told one dealer that I couldn’t care less about the payment number, because I know I can afford it. All I want to see is OTD price. All the extra add ons? The $400 plastic door guard and $600 leather coating? Forget them. Take them off. I had one dealer with such chutzpah trying to charge me $10K above listed price for extra crap nobody cares about, and I just looked him in the eye and gave him the price I want.
@@cliffterrell4876 at the time this post was made (Oct 2021) car prices were high due to chip shortage. Many dealerships charge above MSRP because there were hardly any new car, and used cars were also expensive, some were more expensive than its new price. Today prices have finally come down again.
I'm curious if there's any differences in Canada. I've noticed that the dealership sites in Canada list all the fees and their maximums when you build and price online (Dealer Fee maximum, Freight and Delivery maximum, Air Conditioning charge, AMVIC, Tire Levy etc.) plus the tax for your area, then the available interest rates for lease or finance and also the total pricing for cash (which is the same total price). But I've noticed the US versions of the sites don't say anything about fees or interest or total pricing. I wonder if there's a Canadian law around this.
Both a new car earlier this year. The sale person in every dealership told me they have $1000 or so dealership discount if you finance, then asked if I would pay with cash or finance.
I have bought my last two cars with CASH , first car saved $2000.00 off the price they were asking. Second car save $3000.00 off the price they were asking.( I guest I got better at negotiating).
I like the young guy's comment about "Getting one over on the dealership". We all know, that the dealership is just waiting to "high five" each other after you leave knowing that they got you to pay more than you should have...until you call the loan office and pay off the car in 7 days. Haha.
Nice video. I would only add that some manufacturers will offer additional rebates if a person were to lease or finance. I’ve structured many deals where if I had a cash buyer, I suggested that they do short-term financing to get the additional $1-2k in rebates on top of our best out-the-door price. Also, sometimes paying cash would qualify them for an additional rebate (bonus cash). Every once in a while I would successfully persuade someone to do a 1 Pay Lease to give them more flexibility. Former Audi, Lexus, & Infiniti Brand Consultant.
I got in trouble once. I ordered a new car. My trade was assigned a value and the paperwork reflected the deal. While I was waiting for the car to be delivered, I found that the trade value of my car was higher than what the dealer noted. I called them and they would not budge on their figure. So I sold my car to another dealer at a higher price. When my ordered vehicle came in I showed up with cash rather than my trade and even though I was providing cash for the trade value, they were not happy!
Last time I bought a car I negotiated a price with the salesman. I showed up with a check for that price the next day. The sales manager was not happy. He wanted to sell me an endless list of additions fees. I had the check. He got no more dollars from me.
@@richardsanchez9190 I think his point is they can't try to sell you anything else or add on anything if the check is already written when you get to the dealership, especially if it is a cashiers check from your bank. Unless they get you to write a personal check to cover anything else they've sold you, but, his point is, don't do that!!
just now finding this channel ... I needed this last year doing my research. if it wasn't for by pure chance to find a finance negotiating company that did a lot to get my interest rate and even put cash in my pocket a month after leaving dealership with their financing company. great content
I know this is an older video, but I think you guys are doing a good service.I remember studying an article like 10-15 years ago about a reporter who went undercover and got hired as a car salesman. It was quite insightful. Either way, I believe in the "out the door" price strategy. I go in and strictly negotiate on total out the door, tax, title, and license, and often I already have a PAL (Pre-Approved Loan) from my credit union. If I do entertain talking monthly payments, it is ONLY because I have already done the math to what my out the door equates to with my PAL interest terms at 60 months. Then I would give the dealer the hypothetical monthly amount I would pay, but tell them I am only willing to do a max of 60 months. Doing it this way pretty much boxes them in to my out the door max because they don't have a way to play with the rates and months to exceed my max out the door.
I do about the same technique. It's like reversing the Game on the salesman. I leave it up to them on how they are going to reduce the MSRP/Sale price (beginning price amount at the top of the paperwork) via rebates/ incentives, taking off or reducing the multiple fees the are trying to screw me on, and so on. At most I'll budge on the monthly payment (for max 60 months term) by a dollar or two but not more than than that. One salesman thought he could fool me when I said I could do like $300 or so for 60 months. He said he had to ask his manager. 5 minutes later he came back and said he could Lower my payment to $285 for 72 months, pointing out I would be saving money each month. I did two quick calculations and noticed I would end up paying $2,500 more at the end of the 72 months. I said no and we ended up making the deal for like $302 per month for 60 months. NOTE: I traded in my payed off vehicle as part of the Deal and ended up with a New truck I wanted. Of course the customer has to make sure the monthly payment, for say 60 months, is reasonably in line with the general price range of the vehicle they are negotiating. If a reasonable monthly payment for a $40,000 vehicle is $725 for 60 months, you can't try to negotiate it down to say $600. Some customers are just looking for Too Much car in comparison to their budget. This leads to them ending up either with a bad deal (paying too much for a car because they could not walk away) or loosing the vehicle to the Repo Man, after 1-2 years because they can't keep up with the payments. Be realistic in all factors, be prepared with your numbers and be ready to walk away if the dealership is not being reasonable with your fair offer. Best luck to all.
@@jp4751 I would disagree when it comes to Dealerships/car lots. A business is one that has a said product and they have a set sell price for it, for the most part. You buy it for that price or you don't. Dealerships and car lots are out to exploit any individual that crosses their path. They will work over their own mother if she dare walk in looking to purchase a vehicle. They don't care if the customer realizes it but has no will power to fight back or if they don't have a clue. The salesman and finance manager have Zero integrity nor honor. They want the mighty dollar at any cost. I'm ok with a profit for a business but it can't be ridiculous. Best to all my fellow shoppers in the search for a vehicle.
@@juanpaul1030 "Dealerships and car lots are out to exploit any individual that crosses their path. They will work over their own mother if she dare walk in looking to purchase a vehicle." 😂😂😂😂😂😂😂😂😂😂😂😂 Good one ! "The salesman and finance manager have Zero integrity nor honor." 👍👍 They ask me once impertinent questions forcing me to literally replay "That's NOT of your business" AND "One more UNRELATED question with the paperwork and I'm out the door, not before telling the reason to the other people involved in the particular sale" She quickly shuttled her pie.
Lets say I’m looking to get a loan but will pay it off completely within the first month. Is there any benefit of doing this with a pre-approved loan versus the dealership’s bank loan?
I made that mistake in 1992. Didn't know that was a "no-no." The guy went and talked to the manager and all they'd sell me was the demo model. It was a beautiful, teal Geo Storm, but after I bought it I realized the frame was put wrong on the car and you constantly had to turn the wheel to the left as you drove. Went through tires like crazy. 🤪 😜
With my last car, I essentially did something like this. I let them finance - since I planned to pay off right away, I was unconcerned about interest rate or any of that. I declined all of the extras that the finance person was selling. I waited the 30 days or so for the loan stuff to come in the mail - it didn't occur to me that I could pay off even sooner.
Yeah i asked the person how long I had to wait before I paid off and he said three months, but honesty I think I made 3 total payments, with the 3rd one being where I just paid it in full. Best way for me.
11:30 I get what you're saying about negotiate the OTD. But you could use this method whether negotiating OTD with the sales floor or once you get back into F&I. It's going to be the same result, you will get the total price (the OTD) and then you'll pull this little trick of paying it off early to avoid the loan interest. As long as you're eventually going to pay cash it doesn't really matter where you negotiate the OTD as long as you get it as low as you possibly can. And in real life, at the majority of dealerships, except for those experienced veterans who have a track record, the sales management team is NOT going to trust their salespeople to negotiate stuff like processing fees, advertisement fees, reconditioning costs, etc., etc.
GREATJOB! But, Sorry, there are many dealerships, especially in my area, (Tampa Bay) where the OTD price does indeed get negotiated with the F&I guy wherein he “checks with the manager” (the sandwich play or TO effort) and goes back and forth until the deal is agreed upon and then he prints all the paperwork. I agree with you that years ago most all F&I folks just tried to add-on some extra items and did not get involved with the final price of the vehicle, however, not much stays the same over time, things change, so maybe try not to paint with too wide of a brush, not every dealership operates in the exact same way.
We bought a car from a dealer and he pushed the extended warranty. Turned out to be good for us. With just a couple of months left on a multi year warranty the transmission went out
If the out the door price negotiating is done with the salesman, then what is the problem with saying that your paying in cash? I must be missing something.
Because they wont want to negotiate as much on the end price. If they think you're financing you'll have a better chance of them taking some off the car because they think they can make their money back in interest payments
Do know when the last time you bought a new car, but I just bought three in the last two years and even though I had already negotiated the out the door price when I went to the finance department they still tried to sell me gap insurance and a punch of other crap all three times to jack up the price. So I think Marco is absolutely correct.
Why not get out the door pricing why not write a check for that amount right then. When I pay cash for a car I get the price and write a check. I dont pay all the phoney fees and all that other crap. But you are right on about not telling them Im paying cash until all is said and done. You guys are great keep up the good work. I have sold cars for 30 years and you are spot on. Thanks
great video. I buy for cash and the dealer tried to force me to get the extended warranty by saying I could only get one as part of the purchase. Then he mentioned there was an issue with the transmission that happened a year before. I said why isn't this in the carfax and now I want to pull out. I told them to take a 1000 off or there's no deal. Be prepared to walk away and tell them you dont want any packages etc after you've negotiated the price.
You are both right .As they always spring a few of these extra charges in the finance office, especially the bigger dealers. Also the bank or lenders don't move so fast getting the final numbers by design (always an excuse);but it's ok as you still are only paying interest for say an extra few weeks at most.
![Noob To Max With DRAGON REWORK In Blox Fruits [FULL MOVIE]](http://i.ytimg.com/vi/LnBMOinoOvA/mqdefault.jpg)
Tired of the car buying stress? Let the pros at CarEdge negotiate on your behalf! ⮕ caredge.com/concierge
The warranty sale profit is the benefit. If you don't buy it because you won't use it, you keep your money. That's why he mentioned it. Your point was moot.
You both forget he's in Canada
The title of the video should be "Don't tell car dealerships you want to pay cash" instead of "Don't pay cash..."
@@simon6071dealers are factoring the financing commission into their deal. If you reject the financing option at the last minute they may cancel the deal. The workaround is to accept the financing. Since those are open loans, you can the full balance within the next month you got into the loan, without penalty (at least not in Canada)
Don’t bother using the link. It leads you to a page that is blocked.
I’ve done this. It works better if you visit the dealership several times and waste days of their time. Also get your own bank in competition with the dealership. Say “my bank will only lend $_____ for this vehicle. My back says it’s not with more than $_____. Also start calling other like dealerships and ask those salespeople questions right in front of the ones your sitting in front of. I left a Chevy dealership one time with an asst manager physically angry in my face spitting because I said my credit Union was $500 under our already agreed to price and went over his head to the general manager to get the final $500 off AND then got the asst manager to give me free bed liner, sliding back window and trailer hitch. He walked up to me and said very angry “what kind of hitch do you want? Are you towing a boat, RV, jet skis or what”? I said “oh I don’t have anything to tow I just want a free hitch”. He went back in his glass booth screaming and throwing things. I hate car salesmen.
awesome lol!! You could be a car buyer for people. My mother hired a guy to do all the wheeling and dealing, and she got a real good deal on a Lexus years ago.
Sounds like they don't like you either. Lol.
🤣
@@VOOODOOO37 Yeah, but how much did the car buyer charge you mother?
@@es2056 very reasonable, and worth it for a haggle free experience
I used physical cash to buy my first first car, it had less than 30 miles.
They wanted $27,000, back in 2005 had saved up for several years to get a brand new vehicle.
I said I want that vehicle there, but I won't pay more than $22,000.
Out the door with everything. They laughed until I pulled out an envelope with $100 bills and stacked it up on the desk.
He said $25,000 is the lowest he could go. I started to put the money away. The look on his face was hysterical. I told him if it's still here in 3 days , my offer remains.
The 3rd day he folded for$22K
That must have been some car! What was it?
@@genxx2724 2005 Jeep Liberty
Good for you, I recently did pretty much the same sort of thing for a used upscale vehicle, and got a much better deal paying cash
Good for you, I recently did pretty much the same sort of thing for a used upscale vehicle, and got a much better deal paying cash
Good for you, I recently did pretty much the same sort of thing for a used upscale vehicle, and got a much better deal paying cash
I'm 57, and have never had a car payment. Only bought one new one, and the novelty wore off in hours. Hate dealing with dealerships because of all the games to take advantage of you. Just buy what you CAN afford, and skip all the stress debt can cause. Then save some money over time, and upgrade when you have the money.
Agree, the secret to clean, stress-free living. I avoid car dealerships as much as possible.
If ur average Joe like most people are and u want to build wealth . Don’t have a car payment. 600 month making compound interest is millions later. Ur absolutely right about the novelty wearing off. I went through a spell where I wanted to drive all kinds of vehicles. In the $5k-$10k range. Obviously not mint cars but was fun. Better than stuck in one vehicle with a big ass payment
Congratulations. Way to humble brag.
@@jrr7031Didn't t mean to humble brag. I mostly drove old cars instead of going into debt for new ones, that's how I avoided car payments. Learned to repair them too. Could have had new car debt, decided not to.
@@brucevrooman6107 Pay no attention, Bruce. JR is just angry with himself because he didn't do what you did/ do. There is no better feeling than having money saved and working for you and not falling into the trap of buying a car that immediately devalues.
I bought a car recently and the 'finance guy' said I had to pay 2% high in interest if I did NOT take the extended warranty... but they finally let me now I could cancel the warranty in the first 30 days... so I took the warranty and canceled it on day 25.. no hassle in cancelling (surprisingly)... But I was stunned that they pulled that trick on me...
I am more stunned that you fell for it😂. You must be young.
Warranty has nothing to do with the financing of a vehicle. Anything above the factory warranty is a waste of time and money. They will spend more money on figuring out how to not pay for your repairs than living up to their advertised claims. I’ve had to take out mechanics liens more than once to get paid. Glad I’m retired now and don’t have to deal with it anymore.
Don't be stunned. The finance person is the largest snake at the dealership. They would be giddy if they could make $50 off their own grandma living off SSI
So sleazy of them omg!
"I had to pay 2% high in interest" - good English.
Man you're lucky to get to hangout and do videos with your dad. I use to do projects with my pops and sometimes I felt like it was a burden lol. But when their gone, all you can do is remember all of those times u spent together. Take care of yourself and your pops. Always cherish your time together because the memories will always keep him alive within u.
That's so true.
Wise words!
Indeed, No to get sappy, but a dad and son relationship is special. You are lucky to be in the same business and your dad seems like a great dad.
This is so true. I miss my dad everyday.
You are so right. I lost my dad in November to covid. Cherish everything you can guys.
I'm 68, female, short, and my late father taught me these tricks when I was very young. He'd let me go with him, sit, watch and listen. I've bought no less than 15 vehicles, motorcycles and company trucks over years. I walk in alone, and the salesmen think they've got a sucker. Thanks Dad! You taught me well👍🏼💪.
So what did you do dear ?
Spill the beans on the lessons you learnt . please . kiss kiss .
It’s in the video” my late Father taught me these tricks”.
❤
@mariannekennedy8507 ohhhh thanks for the clarification
Women were always our easiest and most profitable customers because they all come in with this attitude that they aren't "suckers".
I wish I could take these guys with me when I buy a car. I'm 68 year old female and the car salesman sees me coming with the word sucker written on my forehead. I've been ripped off with every car I've purchased. The dealership's know how to get every penny from me and I've been so naïve. Hopefully these videos will help me in the future when I'm ready for another car. Thanks for the great advice.
If you are in Inland Northwest, you can hire me to be your broker. I take 20% commission of the discount that I managed to get off of their initial out-the-door price
@tej k I looked up Scotty Kilmer and he's fantastic. Thanks so much for sharing his name with me. I really appreciate that.
Age has nothing to do with negotiation. If anything, the older you are the more you are supposed to haggle
Never go alone Carol if you can enlist the service of someone to accompany you so you won't feel so exposed and weak in the sights of a salesperson.
I walked into a huge and impressive dealership to get some brochures (they were for a friend) on a particular vehicle and I nearly panicked, I told myself not to get into a conversation lest I end up signing for a new car.
@@anthonyxuereb792 I was buying a new car for myself, and I asked my gentleman friend to come along for support. The male salesman started engaging in conversation with my GF instead of talking solely with me. Finally, I nicely asked my GF to take a ride for a while until I finalized the deal.
I always pay cash. It is simple, negotiate the deal, if they don’t like your price leave. Once you get your price they will send you to the finance department, that is where and when you tell them you are paying cash. The Last Tahoe I bought took me 3 months to find, but it saved me $10k. The last Tundra I bought took me 2 weeks to find. It saved me $15k. Plus all the financing cost I didn’t have to pay. I also always sell my old vehicle myself. Never trade in your old vehicle.
The dealership was telling me they wanted to buy my car, they offered $4,500 and if they can't get at least $10K for it, they are doing something wrong. So they want to make around $5,500 on my "$4,500" car. Robbers. I have 35K miles on a 20 year old car but if you look at the underside, it looks like it rolled off the showroom floor not too long ago. I know what I have.
That's good advice. Thanks 😊
@@charlesfranks1902 35k miles on a 20 yr old car?? That's insanely impressive
That's the way to do it. Negotiate, but don't tell them that you're paying cash. Once I told them that I was paying cash, they kept trying to get me to finance (so they could get their kickback). You know the game where the dealer goes back and forth to the finance manager to see what rate they can get? I wasn't having it. The third time the dealer left us to talk to the finance manager, we walked out and left. We weren't 3 miles down the road when my wife's cell rang from the dealership. I told them that I wasn't coming back. If they want me to buy it, they have to deliver it to my house at the agreed upon terms, an hour and a half away. Two days later, we had a new car in the driveway.
@@charlesfranks1902 How did you preserve the underside for 20 years?
Don't tell them you are paying cash till you agree upon a price. If they start slapping add ons like processing fees, walk away. If they ask how you are paying, say "I'll have an answer for you based on price." If they get dodgy, walk away. Any add ons like super warranties are almost pure profit for them. I bought one of these and had a transmission failure due to a bad tube. They refused to cover it. Complete waste of money.
Also a local dealer advertised a really low sales price on their cars. We walked in and offered cash. They said that price was only good on financed vehicles. That should be illegal. It's bait n switch.
You should have financed the car and then paid all cash 3 days later ...boy were they pissed.
how can you gett a good price iff you dont tell them cash at some point
@@terencedorsey6717what about an early payment penalty?
FYI, when we sold add on warranties, almost no one (insert laugh here) ever seemed to understand that you already had an excellent warranty for 2-3,5 years already!!!!
Then there is the fact that we pay about $150 for that warranty that we sell you for whatever we feel your dumb enough to take. Most are $400 to 700 more!
If you have the cash to buy a new car, why not just repair your old car?
Times have changed. Dealers used to drool when you paid cash. Now they resent you for it. My parents actually said they were going to finance the car, negotiate the price for that, then pull out the checkbook and pay for it. They upset a lot of dealers by doing that. It also saved them a lot of money.
It easily could have cost them a bit of cash up front unfortunately. There's different discount incentives that are entirely dictated by the oem, and are based on how the deal is setup. Now they definitely upset the f&I guy doing that, but they likely negotiated on the basis of the higher price/lower interest captive finance deal at the same time. So the price was likely higher than it needed to be (changes every month so no guarantees), and there's no chance at all that your average f&i guy will point that out to you, especially after getting cut out on finance.
Best thing to do is be honest with the sales guy on method of payment, but then be a wall of "no's" to the f&I guy on extras (that you don't want).
Manufacturers low interest offers can be a great deal, if you have cash invested, use their money.
They still lost because vehicles depreciate the fastest in the first 3 years.
Buy used and save money!
I’ve never dealt with a dealer that actually took a personal check.
The honest way you handle this is to tell the salesperson, when he asks how you plan to finance, that you only have that discussion after a deal has been struck and you only have that conversation with the finance guy. This way, you're dealing with them in an honest way and not stooping to lying.
I was in the process of buying a Toyota King Cab years ago and I had made a deal of $17,000 or so out the door with my salesman.When I was in the finance dept. and ready to sign the contract the price was $268 more than I was told.When I told her that I already had a out the door deal she said"we can't sell you that for that amount"I asked for my keys back and left.They were trying like hell to get me back but I refused and never bought the truck.
Threaten to call the BBB unless they knock off another $500.
@@MikesDIYbbb actually works, companies give you things you don't even deserve and more if you report them ( i know this from first hand, i saw it happen )
@@ligafftheindifferent3495I dont understand how is calling the BBB going to help??🤔
So i guess, YOU were "out the door" .
If this is true. I can just hear the arguments they had losing a car deal over $268.
It's pretty simple. You don't even need to negotiate. Find the Internet Sales Manager for 10 to 15 dealerships (more if you want). Send them an email stating.. "I am interested in purchasing X vehicle with Y options. I am emailing multiple dealerships for their best offer, because I cannot stand watching a salesperson and manager playing ping pong w/ a sheet of paper acting as if they are trying to do me a favor. I will select the dealership with their best offer price. Thank you."
I get that.... You make them work for your business. They still leave in some room for negotiation, but each dealership may have different thresholds.
@@iamsam8446then see who has the best price. Still simple
Just make sure that each dealer receives an individualized email not a broadcast email with multiple addresses. Otherwise they will fix prices.
@ yeah, I don’t CC all the dealerships. One email per dealership but with the exact same contents.
That’s my plan too
Best to buy the newest used car you can afford from a private person. No dealer hassle, no scam fees or stress. Make sure your bill of sale is accurate and the title is signed in the proper lines.
Best to get a used car inspection also.
This!
Should always listen to advice and I like these guys. But every situation is different. We just bought a new car first of Jan 2021. The dealership really tried to force financing on us. They said we HAD to finance 80% of the total cost and HAD to pay on the loan for a minimum of 6 months or they would stick us with a $1,600 penalty fee. We expected this and took on the challenge. I walked into the dealership already knowing that the car we were looking at had been on their lot for over 6 months. They wanted to sell this car. We offered $2,000 below their price and called it the out-the-door total. Take it or we walk. Just as we were walking out the door, they accepted the offer. The finance guy started his "speal" about the multi-teered extended coverage, but I stopped him and said "we have an out-the-door price". We were done in 5 minutes. Wrote out a check and drove home.
The salesman spewed b.s. go you. There is no law that says you can't pay cash, certified cheque or money order. Why would anyone do that if they can afford to pay cash? The interest isn't worth it. Used Car dealers are selling extended warranties now. There are some
extended warranty companies that will only honour a warranty if work is done at one of their authorized garages. You cannot just go to your local mechanic even though your mechanic's business is licensed as is the mechanic. What a crock!
@@cheraspinall8529 i have seen many dealers in canada, mentioned that Must finance, must pay less than 20% down. What a crook dealers have become
Lucky you. I had an "out the door" cash price at a dealership, they refused to accept my cashiers check. They are mostly just conmen and liars.
Yep. In Idaho, stealer is always right, and consumer protection is a luxury we don't have. Thanks to reichwing legislature.
@@Steve-i2k Move back to California.
I still like to pay cash, if possible, simply because I don't want to now deal with a bank, early payoff issues, or other issues that arise from the loan. Even if it costs me a few extra bucks, I don't want to risk the added headaches. I'm not sure if this is the end-all best way, but it works for me and my mental health.
100% agree with you on this. I don’t like to deal with other people with the sale of a car except the car salesman and myself.
The bank can fork it. I’m not interested in paying interest.
Their buildings are already tall enough
8k@@MegaHunter90210
I agree completely. I don't care if it meant I paid a couple extra bucks. In the end, I own the car outright immediately. It is finished! There are so many extra hassles and hoops to jump through if you do a loan, even if you pay it off right away. I just want it all done right away, even if that means the dealership won't go quite as low as they will for someone doing a loan.
@@mattrooker5413 You saved money by avoiding interest payments.
Bypass all of this BS and buy a Tesla.
@CarEdge you guys are great. Ive learned most of these techniques over the years. I also have an MBA and understand financing issues (to some extent). A few years ago, I was in the back room finalizing a Ford F150 (painful long process). Finance Mgr. was pleading with me to get a loan through Ford Credit. I said, no, Im paying with cash...he said "Well I can get you another $500 off if you take a loan with Ford Credit, but dont pay it off for 30 days..because I will get penalized". I got the loan, an additional $500 off the truck and then paid the loan off (no prepayment penalty) in a week. I didn't want to pay any interest. Regards,
Good for you getting that deal Dunn!
I did exactly the same thing with my last car purchase. The salesman gave me a $1000 credit off the car for financing, so I did what you did, and paid it off within a month without paying any interest. What a dumb way for them to do business.
@@johnschneider2429 Most people pay thousands over market value in interest and it makes them tons of cash, so it works for them. So not a dumb way to do business, but a nasty and predatory way to do so.
I did the same thing recently. I was going to pay cash and they said if I financed it with them they would knock another $750 off the price. I didn't want to mess with the loan but figured I could definitely use the extra $750 so I agreed. The finance guy asked what term I wanted the loan for and I said "I don't care, you pick one for me" because I knew it was just going to be paid off immediately anyway.
A friend of mine who recently purchased a new car had me examine the sales proposal prior to agreeing to it( I was in the business for nearly 40 years ) and many things they told him were absolutely insane! For example
1) $500 in " closing costs "
2) 250 for " DMV paperwork processing " This was in addition to actual state fees, which legitimately in PA are about $75, depending on if you need new plates...
3) an additional " Doc Fee " of $475
4 for their grand finale, they told him that, under state law, he had to finance with them....if they accepted his cash, they could " lose their license..."
I of course told him if he wanted to pay liars an extra $1300 bucks for absolutely nothing real, he was dealing with the right guys.
I did a little research, directed him to a dealership that was well recommended....
He's driving his new car now.
I'm sure you can guess where he bought it.
Great video, guys.
I'm looking at a 2023 I'm trying to find the best deal and the best car maybe Honda or Toyota can you help me please to pay cash they're dragging me with all these fees first of all I know I don't go in and say I pay cash but I did The first three car dealerships Honda Toyota and Nissan first of all they had me in tears and I knew I wasn't supposed to pay none of them big heavy fees but they were just like going back and forth I know the man come up to me and just said no I have to pay them fees when I had clearly $30,000 in cash in my hand Well in my pocketbook I just don't know what fees I have to pay and I don't have to pay please help me
@hughbarton5743 please help me I left u a message 🙏
@@wendy8561there’s a video here on this channel where they explain everything and what fees you don’t have to pay and which ones.
Here are some I remember
1. Destination fee
2. Doc Fee
3. Pipestrip Fee
4. Market Adjustment fee
5 Advertisement fee
6. Refuse Nitrogen Air -filled Tires
7. Refuse Life Credit Insurance
Keep watching this channel. You will learn much more !
You know all that going in. You want a new Chevy, you are only willing to pay 50,000. The dealer says 51,000 you walk. The dealer says 48,000 you walk again because you know they are going to add 2000 more. Not matter what you say, 50,000 is it. If they demand more, you move on. Nothing personal, the deal is just not for me.
@@wendy8561 . Were you able to get a car? How did it go?
My last used car was selling for $10k plus taxes and dmv registration. I got the dealer to agree 10k out the door with financing. The finance guy kept trying to sell gap for almost $1k. He tried everything, he then said he would add it for no cost but he actually reduced the price of the car by $900. So next month I called bank and canceled gap and they refunded $900 😂
Thank you for this valuable information
Wow!
Did you pay cash or finance?
@@rasheemthebestfirstone3274 his comment is all about a financed deal.
@@rasheemthebestfirstone3274 finance
The dealer earns a LOT from selling third party warranties. Much smarter to have enough money in savings to self insure for major repairs.
I bought a new Ford Focus for 2013 for $12,500 including 2 keys and mats (it was manual and had hand-crank windows). I told them I was going finance it, and I financed it at a ridiculous interest rate at 18%. My FICO score was 823. There weren't any other fees except for transport, tax, a small prep fee. There were no prepayment penalties. I paid it off less than two months later. I never would have gotten the car at this price if I hadn't financed it.
I recently bought a new F150 for 26 percent below MRSP. No extras, 5 year 2.75 percent interest rate with no money down. No extra warranty or service contracts. And I was out of the dealer with my new truck in less than 2 hours.
Gotta be careful of “minimum finance charge” if you try this strategy. I like to just say, “Cash. I will pay out the door this much.” And if they let me walk, there are millions of other car places and I can wait a few months until the “new cars” are being replaced by the next year models and the dealers have to now take less anyway. You do not have to finance to get the best deal. You are a sale to them even if they do not make as much on the car. They can always order a new one right when you leave for the next sucker. Just know your market and what you can get. You can try one dealer and just stick to crazy low guns just to see how far they come, then try another and so on. Remember, you do not care who you buy from.
My favorite is the "dealer inventory tax" and the paper work in most states actually has to say "this is a fee charged to the dealer and not mandated by law to be passed to the consumer" and people still pay it lol.
Is this the document fees you're talking about? I'm going to pick up my car in the next few weeks and I'm wondering what Bs they are gonna try to tag onto my OTD price that I was given lol
Yes! Dock fees are additional revenue..I refuse to pay and deal must include them as final price…no add on at end
There's also "market adjustment" fee if the car is in demand
Never heard of it and not on any Purchase Agreement either ... must be something the Scam Stealership drew up.
@@rickmarshall-hk5ys I'm about to buy a car and I completely forgot about that. I'm good with numbers not words so hopefully I play hardball correctly lol
I just bought a car with cash, but I used all of your advice getting the “out the door price”, then began negotiating away all the fees, getting extras thrown in, then finally telling them I do not want to trade in my nice truck or finance. Feels good to get the last laugh.
Yes but they have the option of saying no to you at that point? Don’t they?
@@siamajidi2761 It was a bank draft. All legal. I think a sale is a sale. You say “How much?” And they answer… can’t really add in extra financing costs. Most people do finance, so they like the extra $$, but it is not really part of the negotiated price.
@@siamajidi2761 but they didn’t, so he got the last laugh!!
They always ask about a trade-in and want to know how you’re going to pay. You’re just telling us that you didn’t really get the best price.
@@siamajidi2761 Of course, but their dealer ratings ratings from the manufacturers put a high value on the number of cars sold in a given time frame. So, more times than not if you wait it out you will get your price within reason because they want the sale stat. Often, the closer you get to the end of the "sales period" the better deal you can get.
You can do the financing through your own bank. Or if it’s cash, you get the out the door price, minus trade then pay cash there. You don’t need to have the dealer pull your credit causing it to go down for no reason.
your credit score does not always go down when a dealership checks it. Mine actually went up after I financed a car. It moved from 820 to 835 and I checked it about the beginning of the next month using my bank's APP.. Of course that was 2019 and things could have changed since then.
@@RonBand01 it’s an algorithm. Which is based on past experiences like delinquency, or if you pay on time even if you pay ahead of time. Credit scores are just a gauge as to how well you stay in debt. If you make the payment ls when you should, not before or after then your credit score will go up because you pay interest. It goes down when you either can’t pay, or you pay it out in advance. Banks don’t make money on either of those transactions, so your credit score drops. When I didn’t pay, it went up, when I cleared my debt, it dropped
It’s going to go down when your bank does it
@@rodger7029 the point is you can negotiate your own terms outside of the dealers banks who gets kick backs for ripping you off. But my full opinion is, if you need a loan, you can’t afford the car
Get Destroyed, I think you are mostly if not fully correct in your statement.....in the case that the customer is Truly going to finance the purchase amount of the vehicle.
But the point of this video is for the case where the customer is Actually going to pay Cash for the full final purchase price of the Deal. They go in with the disguise of "planning" to finance the car loan, with the aim to get the out the door price as low as poss. Yes, they Might end up with their credit score taking a hit due to the dealership running their credit, but it will be worth it in my view because they will be saving Thousands in the vehicle purchase deal when it's all said and done. Their credit will recover. Of course this is all based on the said customer being responsible and managing every dollar of the income properly. I think it all goes hand in hand, as a person smart enough to pull Marco's technique off and having the full amount to pay in Cash, is already a financial wise individual.
Am sure I am incorrect... just bought a new Buick. We set the price, I was paying cash... we were in agreement and set.... then came sales tax, 9.1% and admin fee, $499..... just could not do with those extra charges... so I offered to pay the agreed on price and they could put the extra charges on their side of the deal... after heading out of the office... they agreed.... I was happy, so were they (?)... not sure of how this looks to others... hate buying cars.
Wanted to leave a comment to thank you for this video and the free Out-The-Door tool! My wife and I were first time car buyers and we used the advice from this video to get a deal that we were very happy with. We really didn’t know exactly what we were getting into, being first time car buyers, but after watching these videos we were not surprised by any of the tactics the sales people gave us. We ended up walking out of the dealership because they were not at the number we wanted and as soon as we got down the road they gave us a call offering the OTD price we wanted. So I just wanted to leave a comment saying thank you for the video, it really helped!!
Exactly. I'm fixing to purchase new and tell you what I'm NOT paying a dealer fee EVEN IF ITS THEIR MANDATE! I'll purchase out of state if I have to I'm NOT married to a nearby dealership.
A new car comes with a warranty, usually 3-5 years of bumper to bumper coverage. You do NOT need an extended warranty until your are approaching the end of the manufacturer’s warranty. Then, IF you plan on keeping this car, call your credit union and get an extended warranty from them. I always do it this way.
My CU sells a magnificent extended warranty with ZERO deductible, BUT you must get this BEFORE the manufacture’s warranty expires. No gaps. I save tons of $$$ this way.
I was at a dealer, got to the out the door price, had my insurance check that covered the cost of car to the penny, and the dealership refused to sell the car, indicating they only deal with people who finance their cars. I made a stink about this as my husband and I got up and walked out, speaking really loud... and 2 other couples got up from their tables with finance people and also walked out.
Years ago I paid $900 for a 3 year complete drivetrain warranty. When my universal joint broke, I found out that many parts of the drivetrain weren’t covered under the policy. U-joints were not covered. I’ll never buy extra insurance again.
I bought BMW (never again) and they gave me a bumper to bumper warranty. Nothing that has broken is covered under the bumper to bumper.
Had a brand new Volkswagen Passat about a decade ago. Little things popped up during the "warranty" but every time I tried to get it fixed under the warranty, they told me it was "normal wear and tear" and therefore not covered.
Warranties are generally garbage, especially extended ones. Never pay extra for them.
Needless to say, I'll never buy Volkswagen again.
Extended warranty in general is a scam.
Don't pay for it and just repair things when/if they break.
The factory extended warranty works just fine and all exclusions are in fact common sense wear items. The problem is 3rd party extended warranties.
on my first car that ive bought to dealership, they slid some paper after i said no to extended warranty, probably done it after i readed the paper. made me sign it without knowing it. almost 3k of warranty. i was furious when i discovered it, was able i revoked it. watch yourselves ! hehe
I once went to a Honda dealership and the salesman raved how well the car was made and then they tried to sell me the extended warranty 😂
Dude, I almost cancelled the sale completely on my Honda in 2009 due to this, at Huntington Honda on LI, the guy would not let me say no, started with “you’re taking food out of my kids mouth by not opting for this”, and a load of other “guilt trip” crap, I told the guy, one sec, lemme go to the bathroom, I go to the sales guy and say “get this guy off my back, or the deal is off, and I’m walking outta here”.
Yes! When you are negotiating the price they tell you what a great car it is, how you can't buy a better vehicle, how long it will last and how smart you are to buy one! Once you agree to buy and get the paperwork rolling they send you to a guy who tells you that you need to spend a couple thousand more on an extended warranty because what you are buying is basically a piece of crud that falls apart if you look at it cross eyed!!
@@alansach8437 needless to say I walked out long before that.
When the dealer tried to sale me an extended warranty I told him I better not need it on a Toyota. Would buy one if I was buying a Chevy. He had no comeback for that.
@@tomr9074 shit! I have a Camaro, maybe I’ll need an extended warranty. At least now I know where to get one!
My last car I bought from a dealer was a low mileage
used car. It was loaded with every option which was rare for a Mazda 3s hatchback. The price was unbeatable and I wanted the car. But I didn’t let it show and didn’t tell them how I was paying. We negotiated and got a good deal. Then told them I was paying in full, so there wasn’t any financial Mumbo Jumbo. They seemed set on price and weren’t trying to throw in anything. 11 years later, still driving the car and still love it.
How many miles you got on it now?
1. Marco is ABSOLUTELY CORRECT! Pay cash if you can but don't mention it until the out-of-the-door price is set and approved.
2. Why the hell should I be concerned about stealer's bottom line?!?
#2 - nontypo duly noted
Can they back out of the negotiated deal once you tell them you are paying cash?
@@jasonschwartz2347 Why? If the financing terms have not been discussed thus are not a part of negotiations...
But make no mistake about it, they can - with or without a legitimate reason - back out at any time until the papers are signed. Remember: you are dealing with professional crooks with no integrity.
@@jasonschwartz2347 they can. And you can always go to another dealership
Maybe cause that's where you will be bringing your vehicle back for service and recalls. They're a business just like any other and need to make money to stay in business.
I bought two Fords from a dealer in a larger nearby city. During the first purchase, the salesman played a lot of games including a firm push for an extended warranty. I have been back a few times for oil changes and other service. During about half of the visits I get to hear some customer arguing on what their extended warranty does or does not cover. I've heard enough to never want to buy an extended warranty. The first car we purchase from that dealer we owned for 12 years and all we paid for was oil changes, two or three batteries, a couple sets of tires and one time paying to realign the front end after my 14 year old son hit a curb very hard during his second driving lesson. I don't think that the extended warranty would have covered any of those expenses, so an extended warranty would have been a waste by any measure.
Dealerships make 55% of their yearly gross by just selling a car. Selling ext. warranties, lifts, aesthetic add-ons, carpets, winches, and a chimney if they thought they could.
WHY would you pay for the oil, batteries, tires and parts - and the high mark-up of the application of these costs. Get a friend outside of the dealership to return a favor to her.
I HATE DEALERSHIPS CUZ THEY NICKEL + DIME YA TO DEATH.
Never had an extended warrantee in my life, till the last two SUVs I've bought. I wait till the bumper to bumper is over and buy another 100k 5 year warrantee backed by the manufacture. In this case GM. I shop it on the good old internet. Last one was $2600, at the local dealer. $1600 at an out of state dealer, for the same thing. Both have paid for themselves, several times over. My 16 Acadia has had over 7k in work done in 125k miles so far. I still have 10k of warrantee left. Everything on the darned thing is a grand to eighteen hundred.
Not a waste by any measure; only by your experience. Mine was the opposite - my extended warranty paid for itself six months after I bought it after the factory warranty expired. Nothing's cheap on a Superduty so the extended warranty was a no-brainer, statistically as well as in practice. But as with all things, your mileage may vary....
@@frontagulus exactly! I for instance have a hybrid car and the electric battery with the electric battery systems and the motor is still pretty expensive in case something bad happens. I live in a place that it snows a lot and there’s a lot of road salt and anything could go wrong after a few years with the hybrid system. So I decided to purchase the extended warranty only because I have a vehicle that runs both on gasoline and electric power. I’m OK dealing with a regular maintenance on a gas car but if something were to happen to the hybrid system it would be an arm and a leg and some. So it really depends on what type of vehicle you’re buying whether or not he’s in the warranty is going to be a good choice.
@@griffinreitz7041 interesting. I assumed it was more expensive to buy the extended warranty later, although I suppose there's no economic reason that would be true, besides this: The dealer can bet you won't even keep the car that long and they'll pay out zero under that extended warranty. Once you own the 4 year old used car with 50K miles, they know you've kept it and will be using that extended warranty. But then you don't know that you'll be keeping your new car either, life throws curveballs.
went to buy a Dodge truck, was their a while i told them what i could put down & what i could pay, they didn't want to bend to what i needed, i left went right down street to a Nissan (i really wanted the Dodge) they gave me what i wanted for close to what i could afford, 2 days later Dodge called & said they could give me what i wanted, when i said i bought a Nissan he blew up, i could have gotten you more truck for same price, i said YEA you COULD but didn't
The newest trend with several dealerships around my area is a 'documentation' fee of a $1000 plus an additional $600 'finance' fee. Ridiculous.
DOC fee's you can't get around. My State regulates the price, $260.00 is the current amount.
@@rolfkoseck7228 My dealer overcharged me on the dock fee ($500). The actual fee was $250. I filed a complaint with the Officer of Consumer Protection and got a check from the dealer for $250.
Thank you for validating my decisions to 1. Never buy a car from a dealer, and 2. Never take a car loan. In nearly forty years I have purchased exactly one car that didn't give me the value I paid for.
if we shouldn't buy from a dealership and from whom should we buy it?
Value is a vague term. If you are strictly talking dollars: all are losers. All.
Value for most people is the utility.
Depends on where you are buying. Carvana and Carmax there is no negotiating. There is a price you take it or leave it. Refreshing and no BS. I bought my first car at a dealership. They do tack on everything includng the kitchen sink. They do nothing but try to rip you off which is why I don't deal with dealerships ever.
I fund auto loans everyday. There is only about $1500 to $ 1600 between MSRP AND INVOICE and they rip you off in finance with hard adds and aftermarket products. Also they charge you a doc prep fee that can be as much as $700 just to print the contract you sign to purchase the car. California caps their doc fee at $85.00.
I was taught to identify a car I wanted, identify the price I want and walk into the dealer and tell them "I want this car for this much" If the dealer can't meet that, Leave and look for another car simple as that.
This leaves you with nearly all the power gives the dealer a minimum amount of time to judge you as a customer, prevents any weird haggling about fees or accessories, you also never end up paying for something you didn't want, ect ect.
Agreed. I did this once paying cash for a Toyota truck. I walked out of the first dealer. They called me for a week. I ended up getting the price I wanted for an even better truck at another dealer (4 or 5 dealers). I don't always have that much patience but that time I did it right.
So, here is a question: why not just follow this "guide" but when you finally get your "out the door" price and when they put the finance paperwork in front of you to sign, why not just say that you change your mind and you decided to pay cash instead?
Can they refuse to sell it to you even though both parties agreed on the price?
Yes they can refuse to honor the agreed price. Happened to me.
@@KpxUrz5745 Thanks.
True words. I waited till the last minute on a car deal to reveal that I was a cash buyer. We were locked up in negotiations. I said to the dealer as I was getting up to walk away from negotiations, "well, I was here to pay cash, I'll just go across the street". They tripped over themselves to keep me there and make a deal. They also get incentives to move inventory, and they wanted to at least move the vehicle off the lot. We ended up in a fair deal for both parties. I say fair for both, because I'm not there to hose the guy, even if he is there to hose me.
I would have hosed them. Wait for a week and let them call me back
It’s never truly a fair deal. The consumer will always get hosed because you will never truly know the dealer invoice on new cars nor what it cost them to purchase used cars. IDC how much info is floating around in the web in researching. I know for a fact that KBB is tied directly into these dealerships. I researched a car and used generic info to get a car’s trade in value, retail, and private party value. I plugged in exact mileage and trim and accessories. I received a “value”. Next I inserted the VIN to get the same values and low and behold all of those values were significantly higher!!! Like on the high end of the values which was very close to the dealers asking price!
Naw, hose them. Fuck em. Car salesmen are burning in hell for all their lies when they die. More than lawyers
You guys are the definition of awesome! Thank you for your efforts to bring your expertise, common sense (not so common) and truthful opinions to those consumers who need a break to afford one of the most expensive purchases in their financial lives. Thank you and God bless!
Our cars are high-volume models like Toyotas. Here's what works. YOU SIMPLY DON'T NEGOTIATE, YOU DICTATE PRICE. You make a list of every Toyota dealer within 200 miles. You go to the first dealer, ask for the price (let's say they want $30K), and walk away. You call the second dealer on the list, and ask them if they'd sell you the car for $29K. Repeat, repeat, repeat until everyone says, no. The final price has dropped dramatically. A Toyota Highlander is a commodity, so it's easy to play everyone off each other.
The call backs would be astronomical you would have to have a fake phone number....
I am confused by this.
Totally agree, do your research and figure a price that's well below sticker price and you tell sales person what you want to pay and be ready to walk off they can't. I already have a list of dealers when I buy a car, move on to the next one, let the salesman know you have choices and be willing to walk away.
@@adriangutierrez586 He's saying you call Dealer #1:
You: How much do you want for a new Blue 2024 Toyota Highlander? I'm on a budget here, and do need the lower price you're willing to take.
#1: That would be $30,000.
You: Thanks. I'll be touch.
You: Hi Dealer #2, Dealer 1 has a Blue 2024 Toyota Highlander for $30,000. Can you do any better on price than that?
#2: Well, I don't know. Let me ask my manager...... [on hold] He'll let me do $29,000 if we sign today.
You: Great. Sounds real good. I'll just check on some things and might stop in later today....
You: Hi Dealer #3. I was really interested in the Blue 2024 Toyota Highlander. My loves it. I saw it over at Dealer #2 for $29,000. It's likely worth it. But, I happened to see your commercial and was just wondering, if you can beat 'em price.
#3: Lowest I can go is $25,000.
You: Wow! That's such a great deal for such a nice car. I'll just get final approval from the wife, and we'll head over to see it in person and maybe sign some papers.
You: Hi, Dealer #1.... It's me again. You know, I happen to see that Dealer #3 is offering the same that Blue 2024 Toyora Highlander for just $25,000. I really like your dealship and all, but I can't pass up $25,000. Can you have any way you can beat $25,000?
#1: Well, that $30,000 was a steal. I can do.... Boy $25,000? I can't.... Hmmm... Alright, tell you what. you come in this afternoon, and we can get it done for $24,800.
You: Great. great. That's fabulous. Me and my wife might be able to swing by this afternoon. I'll be sure to ask for you as soon as I get there.
... At some point there will be a minimum price that none dealers are willing to go below, because they need to make money and pay commission. Generally speaking if you look hard enough you'll find some pretty accurate estimate of the true cost of the car plus minimum markup online. So, you know about where they should stop. So, when you walk in to the dealership, you can say I want the Blue 2024 Toyota Highlander for $25,000 just like I talked with [name] about.
I am not sure if I agree with this tactic, because you're stringing along salesmen using the time, and they end up not making money on the deal. At the same time, you really do want to buy from them, if they give you the best price.
Vehicles have different option packages. They're not all the same. You've never done this.
I did once, I negotiated like I was gonna finance, got them to agree to a super low price because they thought I would finance with them. And once it was agreed, and they thought I was gonna finance on the said price, I pulled cash out. The manager was pissed lol not once mentioned I was gonna do cash lol
Honestly this is the proper way to do it. Every dealership wants you to focus on payments and if they are all in on everything the get the deal done, just whip out your check book and write it out. When you have a deal, they won't back out unless you're becoming a disrespectful D bag.
Can they back out of the negotiated price once they find out you are paying cash?
@@jasonschwartz2347 They can back away because no papers are signed at that point. If you have the cash...you can be flexible. If the dealer insists on the loan (as they said on the video) take the loan and pay off after ten days. It will still cost you a few dollars but may be worth it.
@@UTube_userRMThanks for your input. It's funny, that's what I did with my last car. I took whatever interest rate they gave me, and paid it off two weeks later. Will utilize the same tactic next time as well..
Who have 25,000 in cash to do this? Not many so what's the point?
Thanks for making this video I bought a new car yesterday and if I hadn’t of watched this video in advance I would of been so under informed this video literally saved me $3200 in hidden unnecessary fees . The dealer thought “oh I got her” little did they know they had a force to be reckoned with on their hands 😀😀 love this video ❤️
Julie, I am glad that we could help in some small way. That is why we created Your Auto Advocate. Stay safe and congratulations on your new car. Ray
Don't worry. They still got you. Dealers have been trained to make the customer think they "won.". Trust me. You didn't win 🤣.
@@mycatisromeo you are implying that she’s still lost but did not lose that bad.😂
@@mycatisromeo buying a car isn't about winning and losing... dealership needs to make money and you personally need to get an affordable deal...
@@mycatisromeo what would be winning? Of course the dealership didn't lose money on the deal.
I worked at a dealer years ago as a service tech, got to be good friends with the owner's grandson. He showed me were they make a 100% profit on all trade-ins, even if they had to put in a few dollars into it to resale. That is were they made a lot of their money.
The second thing is when I bought my last new car (not a the dealer I had worked for) the loan officer try to tell me not to pay my loan off early, it would hurt my credit score. I didn't say a thing but I was going BS Bub in my head. A couple weeks later, went to bank and pay the thing off.
It doesn't hurt your credit score to pay a loan off early. But having a long term loan that you consistently make on time payments for does in fact help your credit score. It is by far the biggest influence on your credit score.
But having said that if you've got the cash on hand to instantly pay off a new car then it''s unlikely you''re concerned with trying to build up your credit score at that point in your life.
@@Rowgue51 me too. When I buy car I never discuss finance, just give me a selling price without the tax and fees and I will discuss financing later. Once price agreed, I will tell them this is a cash transaction, if they increase price, I walk. Also I never trade in the dealer. I buy the new car I want with cash then sell my old car later when I get a chance to pretty it up and sell it myself.
it does hurt your credit score if you dont make payments for 12 months. I bought a new chevy truck and financed with gm....3 months later I found my dream car and traded it in.....it tore my credit up for not having the loan for 12 months.
@@Texasprepper I always paid cash for cars ranging from long time ago $20K to my current car I bought new in 2017 at $50K. I use and keep credit card all the time to get cash back but NEVER carry any balance, neve have I paid a penny of interest, yet my score have never go below 780, as of today my score is 816.
@@jml9550 thats great but has nothing to do with what I said.
6:59 I just had an ad within an ad....did I just experience adception???
I had the same😂
The last vehicle I bought was a 2019 Jeep. I negotiated the out of the door price and used my USAA buyers service to get the lowest price to start with. Jeeps notoriously have very little negotiating room, but the dealer wanted to move it because the 2020s had hit the lot. I stood firm on a very low price for the jeep and my wife helped because she didn't want me to buy the jeep in the first place. So she was very on price, and payment. The result was the killed me on terms, and sold it at a rock bottom price. I called the bank the next day and they said it would be a week to process, and they would call me. Four days later I paid off the vehicle. Several days later I got a call from the dealer, but I never returned it. They not called me since then.
That's deLIGHTful
Why did the dealer call you?
I'm 50 years old & have never had a car payment. I've always paid cash & you said it. It's always been out the door price for me. My last purchase, they were asking $8500 + all the taxes & fees. I lowballed at $7500 out the door & ended up at $8400 out the door, which was about $1k below market value. They paid all the fees & taxes, so I saved that too. It also helped with negotiating because the vehicle had been on the lot for 45 days.
Same age and almost the same experience- only once had car payments on a new car when in my late 20s and never again after that. Not completely against the idea of a car payment itself, I am just not that interested in spending a lot of money on car, so I drive used vehicles. Helps if you're handy and now how to do some basic repairs on your own, and youtube is a huge help in that regard as well.
How do you find out how long a car has been on the lot?
You're lucky your so wealthy
@@lisag18 I'm not wealthy. We didn't have much growing up, & we were taught the value of a dollar by honoring God 1st with it. The rest falls into place.
@@alexanderchenf1drive by it or check their website.
Here in NJ after the taxes, we have a state gas guzzler surcharge if it gets 15 mpg or less. We also have a luxury car tax if thr car is over 35K and lets not forget the state rubber tax of $1.50 per tire. The state leaves nothing for thr dealer to add on!!!! Great vid
Loved it in the movie ‘Fargo’ how they portrayed buying a car. The salesman says he would have to talk with his boss first, and then they show him just shooting the breeze with his boss before coming back to the customer with the decision he had already made. Recently went to a dealer and was given a printout on the cost of a new car. Later we discussed trading in my old car, which should have been in the neighborhood of 3-6k, the salesman disappeared and came back with a new printout, this time adding some new numbers they had left off the first one, which now with the trade in were basically the same as the earlier printout. Fair or not the optics were horrible, I walked.
I did the same thing to negotiate down as far as I thought they would go with the out the door price. Then when they put the finance papers in front of me, I wrote a check. No finance fees, no nothing just out the door cash...
I did exactly what he said to do. I saw his video when he posted it and it worked well. I did the payoff in two weeks and did not wait for the 30 days. You guys just reinforced what I believed. New to the channel and I love it.
Doesn’t doing that affect your credit ?
Yes, it does. @@andreso6161
If you can pay off in cash, who cares.
If you learn anything.. look at this father and son relationship. He lets his son lead and only really chimes in for learning purposes. A GREAT TEACHER and fantastic FATHER! I hope my son and I can have this banter with me as a young adult.
I paid cash when the salesman dropped off the car at my home. I never went to the dealership. I never even spoke to anyone except salesman. The salesman even drove away in my trade in. Maybe I could have used this negotiation tactic to save $500. It’s not worth it for me. I’d pay $500 to not ever go to the dealership.
Your first mistake was trading in your car. You lost a lot more money than $500 on your trade. Always sell your car yourself and you will get more out of it. Dealerships have to sell your car for more than they give you for it to make a profit.
@@andrewhuffman7156 That's a headache as well and it's hard to tell how long it will take for your car to sell. Convenience vs. profit.
@@andrewhuffman7156 You save the tax on the trade-in portion. So you are not losing out. Furthermore, you have far more negotiating room with a trade-in, as dealers are desperate for cars to sell, and they make way more money on used inventory. The lowest APR (with good credit) is around 7% on used cars at most dealerships.
@@georgejones5019 You save the tax on the trade-in portion. So you are not losing out. Furthermore, you have far more negotiating room with a trade-in, as dealers are desperate for cars to sell. The guy doesn't know what he's talking about. Trust me, you did good!
@@AbleMable I agree, personally, my trade-in often still have good KBB value, likely to be over $20K so finding a buyer at that price range myself going to be tough, not to mention other security concerns. Plus like you said, the tax saved on trade-in will balance itself out.
I traded in a 15 Challenger SXT+ 50K miles for $21k last year, saved $2K of tax toward my new car. 3 months later I looked up online & the dealer sold it for $23.5K. Totally acceptable to me.
So true! I paid 2k for extended warranty on my 2016 Ford...It's about to expire ( I have owned the vehicle 6 yrs) and haven't used the warranty .. I would NEVER buy extended warranty again!
You can cancel and get any remaining warrantee refunded to you on many of these....good luck.
I bought My Hubby’s Truck with cash. I simply put the amount on the check & told them to fit everything into the number or No deal. I also let them know I was willing to travel 6 to 8 hrs away to get the same truck with the price on the check. It was 5pm on a Wednesday night & they needed to make a sale. It worked 👈🏼 & My Hubby was happy.
I’m going to go do this today.
Never by a car on weekends. If you can Tuesday and Wednesday is best and slowest day
5:29 - I lucked out at this point on my first car. I was already financed at a pretty decent rate, but I said nothing. Let the sales guy do his 4 square, etc. haggled on cost a bit (got nowhere), then got to move on to the final boss. They tried to hit me with their "best" finance rate, which was a touch over 4% above what I was financed by my CU for. When I mentioned that and pulled out the documentation, the finance guy magically found a lender that beat it by a couple tenths of a percent. Was probably my only real win that night. I didn't get sold on the extras like paint protection, etc., but I did get the extended warranty which for me did come into use a few times, though I doubt it fully paid for itself.
RUclips tip, when starting the video, drag the progress/timeline bar to the end of the video and then click the replay button. Viola, no ad breaks now in the video.
Genius! Thanks!
Thank you!
🤯
Wow. They'll figure that out and f it up.
Or DL RUclips Vanced
I can also attest to this. I have only owned hoopties and was trying to get a more reliable car. Got to the beginning of the Pandemic and stated I need to get something with a payment which I had avoided my whole life.
Watched some videos and why you don't tell dealerships you are paying cash. It was spot on as to what I was warned about. And i was buying used.
Same as the movie theaters...
Concessions are so expensive because they don't make money on tickets.
We sneak in everything but the drinks 😅
I have seen many different videos on this subject, including Marko's whiteboard and Kevin Hunter' Super High Intensity Training. I find that all of them have similar advice. Fake Fees, bogus add-ons, and financial office tricks. I fell for all the dealership tricks last time and wish I was better prepared. Now I am educating myself so I can get a better deal. Thank you for all the free advice.
Really like you guys! You’re doing an incredible service to people like myself who feel 100% vulnerable on that sales floor. Pleasure to watch.
The government bs fee is cleverly named dealer fee separate from the typical documentary fee. It’s normally referred to as “electronic registration filing” or something similar. It is essentially a dealer fee with a more official name that almost sounds like it’s going to be paid toward a government agency. In my state, this was considered misleading and they now have to make a disclosure on every contract that this fee represents costs and profits to the dealer.
What is the drawback to going thru all the negotiations and finalizing everything, THEN telling them you are paying cash? wouldn't all the agreed upon prices and fees still stay the same when putting cash on the table vs a 1-2 week loan?
Papa A's Off Grid Retirement - good question. My guess is the dealer would say something like ..."we negotiated based on you taking a loan and cannot honor this price for cash" It'd be good if the Father & Son doing these videos replied to some of these questions.
@@jg11596 if they assumed method of payment, then that's their issue. Make sure a choice isn't specified in the agreement
@@jg11596 Good point. If you agree to the final price and there is no penalty for advanced payment on the 'loan', why not immediately, (not 7 days later) just pay the full amount?
@@jg11596👈
I only buy new one way. Here's my check , do you accept this or not... and I make my offer 30 minutes before closing time.
Genius
I was a finance director for a major dealership for 11 years. You have front end money (Selling the car) and backend money (Selling insurance, warranties and accessories). It the dealer breaks even with the front-end money (Paying the dealer overhead) it is considered a win. The profits are in the back end. I always wonder why someone will buy an extended warranty when the car comes with a full warranty. Most people will trade their car, before the factory warranty runs out. They forget to cancel the extended warranty, and the dealer is sitting fat and happy with pure profit.
Don't forget manufacturer holdbacks. Can sell at invoice and still win on volume
@@ChadRedling1 Holdback will just pay for a portion of the overhead for daily operations. Some factories will give the dealer a volume bonus on selected models. That help cover part of the overhead.
Years ago, I was negotiating on a used car. The dealer tried to set me up using in-house 'Rule of 78s' interest calculation. Fortunately, I was a banker at the time and understood the terms. (Buyer beware if you plan to payoff or trade-in before the end of F&I term). I found simple interest financing elsewhere. Might be an interesting topic for your followers.
One Main Financial tried to lock me into a 6 year loan agreement using this pre-calculated interest loan method!!! I got another loan and paid that 5k off so quick!!! I didn’t even know those type of loans existed!!! Thank God, my credit is pretty good and I wasn’t stuck with them. I realize I should have never agreed to the terms, but my plan was to pay it off over 3-4 months, and the loan agent didn’t specify why that would be extremely hard to do given how they calculate interest. I’m glad I looked over the paperwork and did my research sooner rather than later!
Can you explain what that is?
@@mistrbravado How did you know he was doing that? The interest is usually on the paper work, correct? How did you know he was doing it on those terms?
@@chazly30 the interest rate is clearly listed on the document. But, the way they charge the interest on a pre-computed interest loan is completely different from an interest-bearing loan plan. I didn't realize there were different types of loans. It wasn't until after I had the loan and I was planning a budget to make sure I could pay it off quickly because the interest rate was incredibly high. When I logged into my loan account, the loan balance was $9,000 immediately after funding. It was strange to me because my other loan balances slowly grew over time. But they had already calculated and charged the interest from the beginning. So, when I did my research I saw how impossible it would be to pay it off quickly because of how much interest was being loaded at the front. The payment would have been $193.91 per month and of that, in the first month, $171.41 would have been counted as pre-computed interest, with only $22.50 going towards what I actually borrowed. It's really complicated stuff the rule of 78... and the longer you wait to pay it off completely, most of what you're paying in the beginning is almost completely interest.
@@chazly30 The main thing is since I did get it paid off super quick, I didn't have to pay the 9k to settle the debt. But, even if I came up with the whole 5K in the first 5 months, they would want the principal loan amount of about 5K and then whatever amount of the interest they "earned" over those 5 months which would be around 200 per month. So, I'd end up having to pay them approx 6K for borrowing 5K 5 months ago. And If I were to just pay the loan over however many years, I would end up paying them an extra 4-5k for borrowing 5k. Be extra careful out here, do your research, read everything, and ask questions!
I definitely had to pay "earned" interest of 2-300 dollars even though the loan's principal balance was paid off in less than one month. Keep that in mind.
Here in california, every new car even used car I bought from a dealership once you get to the back finance office they have the ability to lower the interest rate. When they tried to sell me the extended warranty I tell them that I never buy extended warranties on anything. Once they realize I'm not biting they lower my APR on the vehicle to weasel in the extended warranty at a net zero additional cost. So they do have bargaining room back there.
Years ago we purchased a new 2007 mercury grand marquis and we purchased the extended warranty. Boy am I glad we did. Rebuilt transmission, whole dash replacement and much more. That warranty paid for itself 3 to 4 times what we paid for it.
Bought a used Jeep Liberty with 20,000 miles. In the 4th year, the keep had 90,000 miles and a blown engine. Dodge has a built in power train warranty on all of their vehicles. The warranty is good until 5 years and 100,000 miles. I didn’t purchase any warranty, but when I brought the car to a non- dealer mechanic he told me it was covered under warranty. Dodge replaced the engine with a brand new one for $100 out of pocket. Just sharing because a company that does that stands by their products. I just had to show proof of oil changes which I did.
If you buy an unreliable POS american car of course a warranty is worth it. Not so much if you buy a reliable Japanese car or something similar.
After years of paying contracts for various cars, I realized one day that those payments could have been my million dollar savings and investments. If I had to do it all over again, I would NEVER had bought any luxury car to impress anyone. A cheap used car would have given me the same exact pleasure out of life as a new one. My American attitude kept me vain for years. Now after 60 I am starting all over again. Don't let this happen to you.
Yep. My wife and I always had a "nice" car which we would buy with 10K miles (mid size car like a Taurus or Edge SUV), but I always drove "rolling toilets" - cheap used cars/trucks I'd pick up and run for years. In the almost 40 years we've been married, we essentially were a one car family expense wise. Cheap older second cars cost less to insure and less in property tax. We're retired now, paid our two son's full college ride giving them a good start, and our net is over 1 million dollars. I just wish I had done more with investments.
I used to work for a franchise operation and what you are saying is very true. The margins on new cars are very low. The margins on finance and servicing are very good.
Two good stories. 1) I know dealerships have the room bugged when you're waiting for the salesman to come back after talking to the manager. So, I did a bunch of fake talk in the room to my wife. I told her lets leave when he comes back and go to that other dealer that was giving us 10K off a 70K truck. Guess what?, when he came back he gave us the magic number of 10K off the price of the truck we were negotiating for. 2) another dealer on another vehicle I literally negotiated with one foot IN the showroom, and the other foot outside to show I was leaving. I got the price I wanted and came back into the showroom.
Thanks, I love a good story
"Bugging" a room without the occupant's' knowledge is illegal in many states!
@chutneysmith6469 you think that will stop them 😂
Also believe that is true as we have done fake talk on trade in etc. and ended up having the almost exact deal presented as we had discussed in "private".
Kudos to you and your Dad working on this really informative channel! I wish more experienced (older) folks would share their years of knowledge and insight to help others. We need more teams like you guys!! Thank you!
I really appreciate the down-to-earth conversation. I feel like I'm getting advice from a father or a friend who's in the know. The technique of critiquing someone else's video was very helpful to establishing a sense of trust.
You can say all you want that the sale takes place between you the salesman and the sales manager, but the Finance manager is the dealerships stud. He protects the profits from the mistakes on the sales floor. He’s the slickest guy in the dealership. I just bought a 2020 Cadillac that was advertised on the dealer’s website as a CPO. The salesman gave me a CARFAX that said it was Cadillac CPO. She handed me the 172point CPO checklist. It was signed by the mechanic, her and the service manager. They had me sign it. Great I am buying a CPO. In to the Finance Managers office I go. Had already been at the dealership for 2 hours, now another hour at least. After signing and reading 20 pages of documents, I missed a line on the Buyers Guide. This doc showed the warranties. They expertly distracted me by giving me a 90 warranty on a 2020 car with full manufacturers warranty and left off the CPO. I discovered this after I left the FMO. Too late. Once I left that office the deal was done. Cheated out of a CPO. Currently have a complaint in to Cadillac Customer Service. But I already know they don’t care. Buyer beware. You must, you must read every line of every document you sign. Situational awareness is critical. These guys use these tricks every day of their working lives. It is impossible to catch every one. Still, I have owned over 50 cars, trucks, boats, other vehicles in my lifetime. Been slicked and tricked before. Never been cheated so blatantly. My first Cadillac. Man do I have a sour taste in my mouth. Thank God it’s my wife’s car. I can’t even stand to look at it.
It's always been my understanding that the financial office is the one who ultimately decides if the deal will go through? I'm not sure or convinced the can be totally taken out of the equation, if taken out at all. 🤔
Good video and good job. Over the years, our 2012 Prius V has been vandalized by rodents. I wanted to provide a couple of tips. I had to use metal screening to keep them from going into the snorkel which leads to the engine air filter, as well as the passage from the windshield cowl to the cabin air filter. Also, peppermint oil seems to keep them away but you have to apply it often. Finally, our most recent rodent damaged a fuel line near the gas tank. It was repaired by a dealer who told me that my car insurance might cover it. I filed an Insurance claim and they paid it.
Good information all. The most important numbers to me are MSRP, out-the-door price, and APR (interest rate). The OTD price should be at or below MSRP, if at all possible. The APR should be as close to 0 as possible, and always have a preapproved rate from another bank before stepping foot on the dealer floor.
If buying a new car, it helps tremendously to know about all available manufacturer incentives. Despite the crazy market today with chip shortage, I managed to get a price below MSRP, plus $500 manufacturer rebate, plus 0% APR from manufacturer’s finance company.
The most common tactic is to talk about monthly payment. I told one dealer that I couldn’t care less about the payment number, because I know I can afford it. All I want to see is OTD price.
All the extra add ons? The $400 plastic door guard and $600 leather coating? Forget them. Take them off. I had one dealer with such chutzpah trying to charge me $10K above listed price for extra crap nobody cares about, and I just looked him in the eye and gave him the price I want.
Why are you paying MSRP? That's big profits for the dealership.
@@cliffterrell4876 at the time this post was made (Oct 2021) car prices were high due to chip shortage. Many dealerships charge above MSRP because there were hardly any new car, and used cars were also expensive, some were more expensive than its new price. Today prices have finally come down again.
@@cliffterrell4876 Most dealers are getting 10-20% above MSRP these days. If it's a popular car and you really want it, MSRP is the starting point.
@@cliffterrell4876 Perhaps you haven't tried to buy a car in the last 2 years lol
@@neilquinn 7 months ago. Have 6,350 miles on it already
I'm curious if there's any differences in Canada. I've noticed that the dealership sites in Canada list all the fees and their maximums when you build and price online (Dealer Fee maximum, Freight and Delivery maximum, Air Conditioning charge, AMVIC, Tire Levy etc.) plus the tax for your area, then the available interest rates for lease or finance and also the total pricing for cash (which is the same total price). But I've noticed the US versions of the sites don't say anything about fees or interest or total pricing. I wonder if there's a Canadian law around this.
Both a new car earlier this year. The sale person in every dealership told me they have $1000 or so dealership discount if you finance, then asked if I would pay with cash or finance.
A lot of manufacturers have rebates to finance with their bank usually not a discount from the dealership
I have bought my last two cars with CASH , first car saved $2000.00 off the price they were asking. Second car save $3000.00 off the price they were asking.( I guest I got better at negotiating).
Did you finance and then pay it off that month? Or did you just pay cash after negotiating the OTD price?
I like the young guy's comment about "Getting one over on the dealership". We all know, that the dealership is just waiting to "high five" each other after you leave knowing that they got you to pay more than you should have...until you call the loan office and pay off the car in 7 days. Haha.
I love how the son respect
and trust his father's knowledge and experience!
Nice video. I would only add that some manufacturers will offer additional rebates if a person were to lease or finance. I’ve structured many deals where if I had a cash buyer, I suggested that they do short-term financing to get the additional $1-2k in rebates on top of our best out-the-door price. Also, sometimes paying cash would qualify them for an additional rebate (bonus cash). Every once in a while I would successfully persuade someone to do a 1 Pay Lease to give them more flexibility.
Former Audi, Lexus, & Infiniti Brand Consultant.
Glad you found so many clueless people!
How wonderful to have a father and son team .
I got in trouble once. I ordered a new car. My trade was assigned a value and the paperwork reflected the deal. While I was waiting for the car to be delivered, I found that the trade value of my car was higher than what the dealer noted. I called them and they would not budge on their figure. So I sold my car to another dealer at a higher price. When my ordered vehicle came in I showed up with cash rather than my trade and even though I was providing cash for the trade value, they were not happy!
Yep, because they planned on taking your car, marking it up to a higher price and then making a profit on your car, too.
Yeah because you did what they wanted to do lol
Last time I bought a car I negotiated a price with the salesman.
I showed up with a check for that price the next day.
The sales manager was not happy. He wanted to sell me an endless list of additions fees.
I had the check. He got no more dollars from me.
Can you have a blank check with you right then and there?
@@richardsanchez9190 I think his point is they can't try to sell you anything else or add on anything if the check is already written when you get to the dealership, especially if it is a cashiers check from your bank. Unless they get you to write a personal check to cover anything else they've sold you, but, his point is, don't do that!!
just now finding this channel ... I needed this last year doing my research. if it wasn't for by pure chance to find a finance negotiating company that did a lot to get my interest rate and even put cash in my pocket a month after leaving dealership with their financing company. great content
I know this is an older video, but I think you guys are doing a good service.I remember studying an article like 10-15 years ago about a reporter who went undercover and got hired as a car salesman. It was quite insightful. Either way, I believe in the "out the door" price strategy. I go in and strictly negotiate on total out the door, tax, title, and license, and often I already have a PAL (Pre-Approved Loan) from my credit union. If I do entertain talking monthly payments, it is ONLY because I have already done the math to what my out the door equates to with my PAL interest terms at 60 months. Then I would give the dealer the hypothetical monthly amount I would pay, but tell them I am only willing to do a max of 60 months. Doing it this way pretty much boxes them in to my out the door max because they don't have a way to play with the rates and months to exceed my max out the door.
I do about the same technique. It's like reversing the Game on the salesman. I leave it up to them on how they are going to reduce the MSRP/Sale price (beginning price amount at the top of the paperwork) via rebates/ incentives, taking off or reducing the multiple fees the are trying to screw me on, and so on. At most I'll budge on the monthly payment (for max 60 months term) by a dollar or two but not more than than that.
One salesman thought he could fool me when I said I could do like $300 or so for 60 months. He said he had to ask his manager. 5 minutes later he came back and said he could Lower my payment to $285 for 72 months, pointing out I would be saving money each month. I did two quick calculations and noticed I would end up paying $2,500 more at the end of the 72 months. I said no and we ended up making the deal for like $302 per month for 60 months. NOTE: I traded in my payed off vehicle as part of the Deal and ended up with a New truck I wanted.
Of course the customer has to make sure the monthly payment, for say 60 months, is reasonably in line with the general price range of the vehicle they are negotiating. If a reasonable monthly payment for a $40,000 vehicle is $725 for 60 months, you can't try to negotiate it down to say $600. Some customers are just looking for Too Much car in comparison to their budget. This leads to them ending up either with a bad deal (paying too much for a car because they could not walk away) or loosing the vehicle to the Repo Man, after 1-2 years because they can't keep up with the payments.
Be realistic in all factors, be prepared with your numbers and be ready to walk away if the dealership is not being reasonable with your fair offer. Best luck to all.
@@juanpaul1030 At the end of the day, it's business!
@@jp4751 I would disagree when it comes to Dealerships/car lots. A business is one that has a said product and they have a set sell price for it, for the most part. You buy it for that price or you don't.
Dealerships and car lots are out to exploit any individual that crosses their path. They will work over their own mother if she dare walk in looking to purchase a vehicle. They don't care if the customer realizes it but has no will power to fight back or if they don't have a clue. The salesman and finance manager have Zero integrity nor honor. They want the mighty dollar at any cost.
I'm ok with a profit for a business but it can't be ridiculous.
Best to all my fellow shoppers in the search for a vehicle.
@@juanpaul1030 "Dealerships and car lots are out to exploit any individual that crosses their path. They will work over their own mother if she dare walk in looking to purchase a vehicle." 😂😂😂😂😂😂😂😂😂😂😂😂 Good one !
"The salesman and finance manager have Zero integrity nor honor." 👍👍
They ask me once impertinent questions forcing me to literally replay "That's NOT of your business" AND "One more UNRELATED question with the paperwork and I'm out the door, not before telling the reason to the other people involved in the particular sale"
She quickly shuttled her pie.
Lets say I’m looking to get a loan but will pay it off completely within the first month. Is there any benefit of doing this with a pre-approved loan versus the dealership’s bank loan?
I made that mistake in 1992. Didn't know that was a "no-no." The guy went and talked to the manager and all they'd sell me was the demo model. It was a beautiful, teal Geo Storm, but after I bought it I realized the frame was put wrong on the car and you constantly had to turn the wheel to the left as you drove. Went through tires like crazy. 🤪 😜
What? It probably just neded a wheel alignment.
With my last car, I essentially did something like this. I let them finance - since I planned to pay off right away, I was unconcerned about interest rate or any of that. I declined all of the extras that the finance person was selling. I waited the 30 days or so for the loan stuff to come in the mail - it didn't occur to me that I could pay off even sooner.
Yeah i asked the person how long I had to wait before I paid off and he said three months, but honesty I think I made 3 total payments, with the 3rd one being where I just paid it in full. Best way for me.
11:30 I get what you're saying about negotiate the OTD. But you could use this method whether negotiating OTD with the sales floor or once you get back into F&I. It's going to be the same result, you will get the total price (the OTD) and then you'll pull this little trick of paying it off early to avoid the loan interest. As long as you're eventually going to pay cash it doesn't really matter where you negotiate the OTD as long as you get it as low as you possibly can. And in real life, at the majority of dealerships, except for those experienced veterans who have a track record, the sales management team is NOT going to trust their salespeople to negotiate stuff like processing fees, advertisement fees, reconditioning costs, etc., etc.
GREATJOB! But, Sorry, there are many dealerships, especially in my area, (Tampa Bay) where the OTD price does indeed get negotiated with the F&I guy wherein he “checks with the manager” (the sandwich play or TO effort) and goes back and forth until the deal is agreed upon and then he prints all the paperwork. I agree with you that years ago most all F&I folks just tried to add-on some extra items and did not get involved with the final price of the vehicle, however, not much stays the same over time, things change, so maybe try not to paint with too wide of a brush, not every dealership operates in the exact same way.
We bought a car from a dealer and he pushed the extended warranty. Turned out to be good for us. With just a couple of months left on a multi year warranty the transmission went out
If the out the door price negotiating is done with the salesman, then what is the problem with saying that your paying in cash? I must be missing something.
Because they wont want to negotiate as much on the end price. If they think you're financing you'll have a better chance of them taking some off the car because they think they can make their money back in interest payments
@@benb4343 won't the salesman just state that the negotiated reductions in price are predicated the buyer finance the car?
Do know when the last time you bought a new car, but I just bought three in the last two years and even though I had already negotiated the out the door price when I went to the finance department they still tried to sell me gap insurance and a punch of other crap all three times to jack up the price. So I think Marco is absolutely correct.
Why not get out the door pricing why not write a check for that amount right then. When I pay cash for a car I get the price and write a check. I dont pay all the phoney fees and all that other crap. But you are right on about not telling them Im paying cash until all is said and done. You guys are great keep up the good work. I have sold cars for 30 years and you are spot on. Thanks
great video. I buy for cash and the dealer tried to force me to get the extended warranty by saying I could only get one as part of the purchase. Then he mentioned there was an issue with the transmission that happened a year before. I said why isn't this in the carfax and now I want to pull out. I told them to take a 1000 off or there's no deal. Be prepared to walk away and tell them you dont want any packages etc after you've negotiated the price.
You are both right .As they always spring a few of these extra charges in the finance office, especially the bigger dealers. Also the bank or lenders don't move so fast getting the final numbers by design (always an excuse);but it's ok as you still are only paying interest for say an extra few weeks at most.