Can I negotiate a price and then stipulate the deal on getting the special interest rate (hypothetically a 2024 Mazda3 Preferred Hatchback for $25,000+tax and fees, then demand the 0% for 3 years).
Hello from the UK , Looking to change my car BMW 320d Sport 28,000 FSH . Auto Trader value is 16100 , is that what the dealer will offer ? Having a test drive on a Lexus UX . Thanks
I’m so happy I found your channel! I’m in the process of shopping for a new car and I’m so scared because I’m a women and I have been sold a lemon before and I’ve had multiple issues with cars with the last few years and this will be a big purchase for me and I want to make wise decisions. Thank you so much for this information ✨
This is such a great video. So happy to see how far you and Zach have grown and expanded your business. And I’m thankful to have my extended warranty through y’all - definite piece of mind. Ray’s sharing his expertise is so generous and helpful!!
Been watching your content for a while in preparation for an upcoming new car purchase - I'm sold on the site, will be using your tools - thanks for all the help/info.
Nice video ❤ I just financed my new Camry after so much stress first was the money then is was paystubs and bank statements which I had to pay a vendor online
10% rule! My wife and I were just hit with an increase of $200 per month on our insurance payment. So according to the rule a car payment needs to be reduced accordantly. We need less expensive cars !
I've been watching a ton of your videos lately, which led me to look at my huge receipt for my last car. Paid under listed price and luckily the only dealer charge on there was the $85 doc fee heheh. Great info ! Looking into buying my first brand new car now 😵💫
Learned a TON of useful informations from this channel and the website. Got myself a 2024 Mazda CX-50 select for $32.5k OTD at 0.9% APR just a week ago. Without the knowledge I gained from you guys. I would’ve been scammed for another $1.9 delivery fees, weird package that cost $2k, and unwanted and useless warranties. Glad I walked away from that!
@raymondlo5759 can you share how you were able to get such a good interest rate? I'm literally going in to make a final car purchase in a day or two, and the best I can find anywhere is 5.7 :( :(
Incredible video. Thank you for sharing your knowledge and years of experience, Ray. I just sent the initial "I'm interested in this vehicle email" from your templates. I can't find the "your blowing it " email as I'm sure they are going to ask me to call or come in lol. Is that for paid subscribers only? Thank you for ALL your videos. I've been watching for months now!!!
Using this technique to buy a new vehicle right now. I’ve contacted four Honda dealerships. Only two will give me an out the door price. The other two refuse and insist I waste my day in person at their dealership.
My local Toyota dealer has $4200 in dealer added on BS on every single new car they sell. So soon as you step on their lot you're at a disadvantage. I absolutely hate buying new cars. F it, just will keep what i have 🙄
Bought a Honda pilot back in April with about that much in add on crap. Using the OTD hard negotiation tactics discussed here I got all but about $500 wiped off the total price. I flat out told them it was worthless crap and I wasn't gonna pay for it.
@@jdlegas Yeah it really bothers me that it is now common practice for stealerships upon arrival of new cars automatically put on all the BS like Paint Protection, Fabric Guard, Vinyl Guard, GPS tracking crap, and more for $3000-$5000 in added crap and they won't budge on price. So my only suggestion to people now? Don't buy right now unless you HAVE to. Otherwise, just keep what you have longer. If people keep paying for this crap? It will never stop.
Just negotiate OTD deal. That way you just don’t give 💩 about the crap they “installed” on it. As far as I am concerned I’m fine with paying 29k for paint protection for as long as I get the car for 1k if I want it for 30 otd
@@michalp2362 I don't completely understand you reply. You don't care about paying for extra things as long as the price is what you want? That doesn't work out in your favor when the dealer adds $4200 worth of dealer add ons to the car and you have to start negotiations? You need to get an OTD price on a car that doesn't have all the extra crap on it. You would be at least $4200 ahead just right there. Most dealers these days will not just give you all these add ons to sell you a car. So if your ok with an OTD price that begins over $4k above what the MSRP is than great, for me? That is unacceptable.
@@eppyzI guess I didn’t make it clear but here is an example. Last time I bought a new car at a “traditional” dealership was in 2017. It was a Honda with the MSRP of about 34.5k per Hondas build your car tool which is the actual manufacturer suggested retail price per Honda, and not the price with dealer add ons. On top of that this particular car had about 3k worth of useless junk installed by the dealership. First offer they proposed was about 37k plus tax and fees which made me lol. I told them that I can give them 34k OTD with tax and all DMV fees included Basically 34k to take car home. I told them that I wouldn’t be paying a penny for their paint protection unless it’s included in my 34k otd offer. After about 3rd trip of the sales guy to the back office I told him that I wouldn’t be wasting more of his time, if they can’t make my offer work and I’m leaving. They quickly made it happen by significantly lowering the price of the car and only slightly reducing the price of dealer installed junk. It’s not your problem how they balance their numbers. All you should care about is your OTD price to take the car home.
Let me start by saying thank you for your advise, i have not purchase the car yet but the first step that I did following some of your suggestions i think it has started to pay off, i send an email to the dealer telling them about the off MSRP, the 1.9% they have on their web and asking if that's for a lease or finance, they reply back to me saying i can even get a 0% for 36 months financing, now I think this is too good to be true but it does tell me that they way I did it sending the email first with a couple screen shots of the car i might buy. they did confirm the price which is a almost $10K off from the original price i think is because is a 2024 model and they are about to receive the 2025 models. I just wanted to share my negotiation and say that they way CarEdge is advising how to get a better deal it does work, thank you for sharing your experiences.
Thank you for the valuable content you provide! I would greatly appreciate your insights or the possibility of a video focused on strategies for purchasing high-demand vehicles, such as the RAV4 Prime. Given its limited production and substantial demand, I've noticed that local dealerships often require a deposit to locate one. This approach seems to shift most of the negotiating power to the dealership, leaving buyers fortunate to secure a vehicle at MSRP. Could you clarify if requesting deposits is a common practice? Is there room for price negotiation in this scenario, or should one simply accept MSRP while seeking concessions on accessories? Additionally, do you think the processes in the finance office are similar for high-demand models? While there is an abundance of resources on purchasing both new and used vehicles, I have yet to encounter discussions specifically addressing the dynamics of high-demand cars. I appreciate your ongoing efforts to assist all of us!
Yeah, I'd love to talk, but I'm booked negotiating my grocery purchase! It's not hiring a builder to build a luxury home. It's not like vehicles are different!
Thanks gentlemen!! You guys make awesome videos that help people like me who is hunting for a used car. On your website if I am searching for some used cars I am unable to filter "Personally used cars". Please try to add a filter via which we can filter Rental/Fleet/Personal cars. Hope to see this feature soon!! Cya!!
Another great video..! I've taken what I've learned from you and successfully negotiated a deal on a new Subaru Crosstrek Onyx. Once we had established contact by email and text I was dealing with 6 different dealerships. Unfortunately none of the dealers had the colour of the trim level we wanted but most were able to or already had on order what we wanted. This gave me time to slow down the process down a bit. One dealer offered me a higher trim level they had on the lot right near the end of the month. The deal he was putting together was very good but he sold one and was left with a colour we didn't want. But this was perfect because it revealed that yes, there was plenty of room below sticker price to negotiate. Six emails then went out with "my out the door all in" offer on exactly what I wanted. I got a variety of responses, all negative except from the dealer that had offered the discounts earlier on the car we passed on. Got it in writing, put down a deposit and we should be driving it by the end of the month. Since then a few of the other dealers have reached out to me again... Sorry,too late. Thanks again @CarEdge
The Part where he tells you what you can afford is VERY important. Here are some facts. In the USA most Financial Planners recommend to not exceed 30% of your annual gross income on the purchase price of a new car. For 2024 thus far, the average American Family income is approx $76,000 which means the Average American Family can afford a vehicle purchase price of $22,800. For 2024 the Average New Car Purchase price is $47,700 OVER 2x's what these families can actually afford!!! So what is happening, to be able to "Afford" the payments families are going 84 to 96 months now on car loans. Another statistic. The Average American Family only keeps their new car Approx 3-4 yrs before getting another car. So what does all this mean? It means the Average American Family is buying more car than they can afford, after 3-4 yrs these families are so upside down on their loans they transfer that negative equity into the new car owing even more and the cycle goes on and on leading to either Bankruptcy or a Repo. This is one reason why we are struggling in this country. That keeping up with the Joneses so to speak is putting you in the poor house. Do yourself a favor, keep your car that you have, and if you absolutely have to buy a car NOW?? Buy what you can afford by following what I just mentioned, or what this Gentleman is stating in his video.
10:25 now do this 30 times and get 5-10 people playing, or as many as you wanna spend time vetting, and really get them bidding for your business! Then you KNOW you got the best deal. 2 just isn’t enough to know, cause if they’re both 80% dealers (overpriced), beating the other by $1k could still be thousands higher than a 20% dealer who really needs to make a sale. 🤔
I'm currently trying to buy a new/used truck and your channel has helped a lot. as a resident of northern NJ I will try to do my business with you, if the price is right haha
only problem is I have great credit and my bank denied me for a loan.. my 2nd bank daid they have a 13.5% charge and the dealer would be better to get a loan
I used CarEdge & will be picking up my new car this month. Even though I am a former Purchasing Agent, I thought about it for a long time & decided that I didn't want the hassle!
The information that this channel shares is invaluable! Thank you!!! I signed up on your website. Can you tell me where I can find the email templates? Thanks a bunch!
Dear car edge Why do we have to add 10% to the Out the door price? I thought the out the door price concept was the final price to drive the car out of the dealer
I’ve narrowed my choices down to 2 new vehicles: Acura Integra ASpec Manual transmission, and VW Jetta GLI manual transmission. About $5000 difference between the two. Not sure which to get. Not sure about resale or mostly maintanance costs.
13:00 also I’ve learned that you wanna know get that car’s original sticker MSRP, that way you can see how much it’s actually discounted. Depending on how many years, miles, we know a car 3 years old with 30k miles was probably a lease and was valued at what, 60%? so 35%-40% discount? bids is always the way to go but sometimes you may only have found one place with that used car you want. So knowing original MSRP seems crucial, and also, make sure the loan doesn’t exceed the car’s 10th birthday (shout out Deshone) ☝🏻
Hi, I’ve been watching a lot of your videos and want to thank you for sharing your knowledge! My question is this…it’s almost November 2024 and Toyota hasn’t released their 2025s…should I wait it out if I’m considering purchasing a brand new RAV4?
Awesome thank you for much for this valuable information so appreciated it, Question how can I find cheaper affordable car insurance State Farm is too expansive please help Thank you
@drift6785 Yeah, but I am ok with them people getting loans. The more of them get loans, the better my 401k, CDs, and money market account do. Win win for me. Keep getting them loans so my bank keeps loaning that money to yall... and I get a cut of them loans in the form of dividends and compounded interest. 😁
I’m with you! Destruction of society is the only way… I’ve boycotted buying clothes for the last three years - why wear clothes? DO NOT BUY! Got it - clear directions. I’m ready for lesson 2.
I really do not want to buy, but life is too hectict to not have a consistent vehicle. Hopefully i can strike gold in the private car market but the future is bleak.
Is it possible to make dealers compete if they’re under one umbrella? For example, in my city, Nissan is under one name in every county. I’d have to leave the city if I really wanted a specific Nissan vehicle that didn’t have “Gotcha” Nissan.
Last weekend, I had a local dealership tell me they could not sell me the new vehicle I’m looking to purchase without a security system because Costco’s car-buying program requires it. Then, the sales manager during negotiations of add-ons told me he would remove the security system (but he didn’t want to remove the price). I have submitted inquiries to Costco to confirm their dealer requirements. It sounds a lot like tied selling to me, and the dealer is blaming Costco for it. I don’t think they’ll appreciate that. Still waiting for responses from Costco.
@@siriusbusiness2351 I did receive an email response from their Member Advocacy Group, and even though the email includes contact information, I can’t get through to anyone. I’ve replied to the email and called the number and extension of the person who sent the email, but I’m getting nothing. They were more responsive through Facebook, telling me they were escalating the situation, but I still haven’t had any follow-up other than the initial email response. I’m hoping they’ve contacted the dealer. I’m trying to be patient. However, I called the general number to connect with another dealer and the rep was very helpful through that department when I explained the situation. She took notes and also told me she was escalating it. Then she put me in contact with another dealer who wholly honored the price-without fuss, without upselling, without hassle. My wife and I were shocked and pleasantly surprised by the service the new dealer provided. Truly professional and straightforward. I’ve never had a car salesman say, “I have to offer you these options [dealer add-ons], but you don’t have to buy any of them. It’s just my job to offer them.” 😮 Absolutely no pressure whatsoever. He went on to tell me they don’t make any money through the Costco program (I think they make a little) but that they rely on return business and referrals and that’s why they’re the second busiest Honda dealer in the state. I’m satisfied with my purchase and the service from the second dealer. My wife and I even gave the sales guy a gift card. His jaw dropped. He was in as much disbelief as I was when he sold me the car at the established price. 😂 Happy ending. By the way, the Costco price for the vehicle was over $3000 below MSRP, a substantial savings.
To get a PPI, do I simply tell the dealer I want to have the car inspected by a mechanic and arrange it? Are they required to agree? Allow 2-3 hours? Thanks
So wait, we need to get the OTD price, including all taxes and fees, before we start discussing payment options. But then we need to plan on adding 10% more to that otd price?
No, the sales price + ~10% is the OTD price. Ray is just giving you an idea of what to expect in terms of the total/OTD price (based on the advertised/sales price). But, don't negotiate the sales price. Negotiate the OTD price.
Hey, thanks for all the info. I notice you say dont go to dealer until you do online negotiations. But i need to test drive before deciding if i even want to negotiate. So it seems i need to visit dealer before on line negotiations for test drive. Do you have a strategy for that? Thanks again...
I'm not him but I will say if you can find a dealer with the vehicle you want to test drive, you don't owe them anything. Just show up, mention the car and ask to see and then drive it. Once you're done, say thank you for the opportunity and bounce. They can't do anything
Negotiating prices in person is giving them the 'home field advantage' and that term really means something. Get an OTD price from any dealer before you agree to step foot in the office if at all possible.
You say the 10% has to include gas and maintenance...then only factor in insurance in monthly cost? If you have $500 to spend on transportation and insurance is $100, you can't have a car payment of $400 unless that car is free to maintain and operate.
I'm in Canada and wish you had your website for Canadians. I love your content for consumers. I do have a question which may not be mentioned. I'm looking to buy a new SUV cash. I went to Buick and tried one to drive but the seat was to high and difficulty to get in and out as short legged. Then the following week I tried one type of new Chev SUV as only had a half hour to try it as my new pup was in my vehicle. I wasn't impressed enough on the new model and said I'll be back to try another type. Last Saturday I had a half hour to try another so the Jeep was just before Chev so I drove in to check . I tried the Jeep Grand Cherokee seat and I said " Ok lets go for a drive' . He asked for my license and I showed the salesman. He grabbed it then Without asking He started to take a photo of my license on his personal phone. I grabbed it and said " What are you doing?" He replied " I want it in my data base". I I said "Your a salesperson not a manager and you have no business coping or taking a photo of my license as the same as my SIN number.' I said 'We are done ! I have a license , full insurance, my vehicle is next to your building sitting there with proof of plate registration. You only need my name and address, and phone number from license . I shown you proof of everything plus your driving with me.' He said I'm do my job and I'll go see my manager .. I said "Nope I'm done as your a day by night salesperson which have no business with my license on your personal phone and I don't want any identity theft" . I checked the government site and it stated this was illegal for anyone or business to copy or take pic of my license as to much personal info for identity theft. I had no issue at Buick Dealership nor Chev and they didn't even ask for my license. , I was a salesperson for a few years at GM during the 80s years ago before starting my own business and no way I could do this to a customer trying out a vehicle nor my employees. Does the Dealerships have Salespeople taking pics of everyone's license on their personal phones? Thanks
Say no and walk away if needed. All dealer fees are FAKE, they are simply part of the price. If a fee is taxed it is fake. Or, lower your price offer to compensate for the fake dealer fees.
You do not purchase a vehicle from Costco or any other type buying service. Costco and the other buying services are essentially a lead generator for dealers.
@jerrylundegaard2592 I guess new vehicles have a set price no matter what dealership. Just need ne aware of incentives and dealer mark-ups. I thought Costco type purchase would eliminate the hassle of negotiation to obtain suitable price. ⁉️ You should bring it up on video. ⁉️
@@rickzabala6020 New car dealers do not have a set price. There is Manufacturer's Suggested Retail Price which means little. Dealers are allowed to sell at any price they can find a buyer to pay. Dealer mark-ups are nothing more than the price a particularly dealer wants to sell. If the dealer offers a price of $40,000 and has a $1,000 doc fee, the actual price offered by the dealer is $41,000. Any fee which is included in the taxable amount is a FAKE fee and is just the price separated into parts to fool the buyer. Incentives are many. Some, such as holdback, are somewhat universal. Others may be location specific or may depend on the number of vehicles sold. Some are unknown until long after a vehicle is sold. A good starting point for price negotiation is invoice less holdback less any known and published incentives, This information is readily available and offers a car buyer a net price upon which to base a negotiated price. Costco typically offers a buyer a chance to buy at a "reduced" price based on the prices Costco has negotiated with the dealer. Of course, Costco is reimbursed by the dealer for any sale occurring as a result of a Costco lead. The Costco program has advantages but it does not always offer the best price. Of course, Costco seems preferable to any of these RUclips folks who charge $1,000 or so to "help" people buy a new vehicle.
Hi, how about if we let the dealers do the financing? Coz i know a friend and they bought a car and they let the dealer handle the financing process, they didnt go to bank or credit union,
Get the rebate and best deal. If you must finance, just do $5000 to $10,000 of a loan. Then pay it off the payment due date. That’s what I did. Costs about $50 in interest but I saved $3500 with a finance rebate I wouldn’t have gotten
😂😂😂 you gotta be kidding about the 10% right? I spent almost $300 on gas a month. If we apply this rule , the majority of people wouldn’t able to own a car.
10% rule is nuts. here in Vancouver, Canada, where everything is more expensive than pretty much anywhere in the world, following the 10% rule means u can't even afford a shitbox on a middle class income, unless you have a massive down payment to put up.
where is kia carnival hybrid 2025 pricing? I do see ex models available but it's more than I want to pay. Kia seems pretty set on MSRP and in My area of the state they're all charging about $800 for their doc fee. Can you get? Under MSRP on a car that they have so few of? Also I would rather have the lxs price wise but It's hard to come by. If I find one, should I still be able to negotiate anything under MSRP or is MSRP considered Fair?
Now how is this fair? I am a regular Joe teacher/engineer/homemaker/student/librarian and I am supposed to be competing for the best price (ie my hard earned $$) with a pro salesperson. Someone whose only job is to negotiate deals and extract most profit out of me?
@@dodgers8one8 1k but you will likely offset that in savings anyway. Hit their site. It's really pretty insane all the info they have on their (such as invoice and market day supply which ultimately means negociability)
To be clear: You'd have to be a doctor to afford the ubiquitous F150's or soccer mom mobiles (same thing really) at 10% of your gross income. If you're an IT professional realistically capable of making $60k, your 10% nets you MAYBE a Toyota Corolla. This country doesn't have many legs left folks.
Even tho inventory is up. It's only up because no one can afford cars. All the more affordable one are sold out like the new camry, rav4, and Corolla crosses. It's just a facade. All the terrible and expensive car takes up all that inventory rate.
@ 8:34, you mention free templates for contacting dealers. Can you provide a link to these templates? I can't find it, and even when signed in, if I click on what looks like a search icon, it either takes me a page to sign up for the concierge service or takes me back to the login page. TIA
All of these crazy budget rules don't work for me. I am retired, not old enough for Social Security yet, I pay my car insurance once per year, and do not ever finance my cars! I just buy what I feel comfortable spending.
Hold up... with all of the nations natural disasters in North Carolina, Florida Panhandle, Georgia Floods, and now a Cat 5 hurrican hitting dead on in the Tampa area tomorrow night, there is going to be no shortage for demands for new vehicles from these areas where all their cars, trucks, SUV's have all been destroyed by floods. The seller market will continue because natural disasters have been working in their favor!!
New cars come with floor mats. If the mats are provided by the manufacturer they are included in the price. The dealer may add them and will try to charge you for them. The astute car buyer knows better than to pay the dealer anything over the negotiated price.
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Let us know what additional questions you have so that we can help!
What is the best way to use Affiliate Rewards Preferred Pricing?
Can I negotiate a price and then stipulate the deal on getting the special interest rate (hypothetically a 2024 Mazda3 Preferred Hatchback for $25,000+tax and fees, then demand the 0% for 3 years).
@@culinarykid92 My Affiliate rewards awards me 1% below invoice. can I still get 0% for 36 months from CDJR?
Hello from the UK , Looking to change my car BMW 320d Sport 28,000 FSH .
Auto Trader value is 16100 , is that what the dealer will offer ?
Having a test drive on a Lexus UX .
Thanks
I'd love to see a video about ordering a new car from a dealer.
This being free content is CRAZY. Immense knowledge being shared in under 25 mins
I’m so happy I found your channel! I’m in the process of shopping for a new car and I’m so scared because I’m a women and I have been sold a lemon before and I’ve had multiple issues with cars with the last few years and this will be a big purchase for me and I want to make wise decisions. Thank you so much for this information ✨
Buying a car very soon. Perfect timing in this.
Dummy
This is such a great video. So happy to see how far you and Zach have grown and expanded your business. And I’m thankful to have my extended warranty through y’all - definite piece of mind. Ray’s sharing his expertise is so generous and helpful!!
Been watching your content for a while in preparation for an upcoming new car purchase - I'm sold on the site, will be using your tools - thanks for all the help/info.
I’m doing all the research now that I didn’t do the last time I bought a vehicle. This information is gold to me. Thank you so much!
Nice video ❤ I just financed my new Camry after so much stress first was the money then is was paystubs and bank statements which I had to pay a vendor online
THANK YOU SO MUCH!!!
I never bought a car and I don’t now much about them so your videos are just lifesavers.
You earned a subscriber for life!
10% rule!
My wife and I were just hit with an increase of $200 per month on our insurance payment.
So according to the rule a car payment needs to be reduced accordantly.
We need less expensive cars !
Good point, insurance rates are going crazy.
I've been watching a ton of your videos lately, which led me to look at my huge receipt for my last car. Paid under listed price and luckily the only dealer charge on there was the $85 doc fee heheh. Great info ! Looking into buying my first brand new car now 😵💫
Hi, I really enjoy your humor and " knowledge. " thanks
Great video. Way better than the clickbait garage
Learned a TON of useful informations from this channel and the website. Got myself a 2024 Mazda CX-50 select for $32.5k OTD at 0.9% APR just a week ago.
Without the knowledge I gained from you guys. I would’ve been scammed for another $1.9 delivery fees, weird package that cost $2k, and unwanted and useless warranties. Glad I walked away from that!
I'm working on buying a '24 cx-30 select. Got them down 10% on the OTD so far. Still going to try other dealers for better price
Who did you finance with? 🤯
@@lildos9355 mazda financial
@raymondlo5759 can you share how you were able to get such a good interest rate? I'm literally going in to make a final car purchase in a day or two, and the best I can find anywhere is 5.7 :( :(
@@lildos9355I want to know who too because .9 APR is crazy
I am watching this just before I go car shopping. Wish we could wait, but hubbies truck totaled in a car accident. But at least I feel more prepared
Frankly some of the most universally-likeable people on the internet. Good looking out, gents.
this is becoming one of my fav channels i get my automotive news from this daily
Stumbled upon your Company afew months ago...Love the videos/information an insights...Thank You Gentleman
Incredible video. Thank you for sharing your knowledge and years of experience, Ray.
I just sent the initial "I'm interested in this vehicle email" from your templates. I can't find the "your blowing it " email as I'm sure they are going to ask me to call or come in lol.
Is that for paid subscribers only?
Thank you for ALL your videos. I've been watching for months now!!!
Using this technique to buy a new vehicle right now. I’ve contacted four Honda dealerships. Only two will give me an out the door price. The other two refuse and insist I waste my day in person at their dealership.
Howd it turn out
There a few Toyotas models that are hard to get not sure what is going on with Toyota
Excellent detailed Video!
Great info. I really appreciate it.
My local Toyota dealer has $4200 in dealer added on BS on every single new car they sell. So soon as you step on their lot you're at a disadvantage. I absolutely hate buying new cars. F it, just will keep what i have 🙄
Bought a Honda pilot back in April with about that much in add on crap. Using the OTD hard negotiation tactics discussed here I got all but about $500 wiped off the total price. I flat out told them it was worthless crap and I wasn't gonna pay for it.
@@jdlegas Yeah it really bothers me that it is now common practice for stealerships upon arrival of new cars automatically put on all the BS like Paint Protection, Fabric Guard, Vinyl Guard, GPS tracking crap, and more for $3000-$5000 in added crap and they won't budge on price. So my only suggestion to people now? Don't buy right now unless you HAVE to. Otherwise, just keep what you have longer. If people keep paying for this crap? It will never stop.
Just negotiate OTD deal. That way you just don’t give 💩 about the crap they “installed” on it. As far as I am concerned I’m fine with paying 29k for paint protection for as long as I get the car for 1k if I want it for 30 otd
@@michalp2362 I don't completely understand you reply. You don't care about paying for extra things as long as the price is what you want? That doesn't work out in your favor when the dealer adds $4200 worth of dealer add ons to the car and you have to start negotiations? You need to get an OTD price on a car that doesn't have all the extra crap on it. You would be at least $4200 ahead just right there. Most dealers these days will not just give you all these add ons to sell you a car. So if your ok with an OTD price that begins over $4k above what the MSRP is than great, for me? That is unacceptable.
@@eppyzI guess I didn’t make it clear but here is an example. Last time I bought a new car at a “traditional” dealership was in 2017. It was a Honda with the MSRP of about 34.5k per Hondas build your car tool which is the actual manufacturer suggested retail price per Honda, and not the price with dealer add ons. On top of that this particular car had about 3k worth of useless junk installed by the dealership. First offer they proposed was about 37k plus tax and fees which made me lol. I told them that I can give them 34k OTD with tax and all DMV fees included Basically 34k to take car home. I told them that I wouldn’t be paying a penny for their paint protection unless it’s included in my 34k otd offer. After about 3rd trip of the sales guy to the back office I told him that I wouldn’t be wasting more of his time, if they can’t make my offer work and I’m leaving. They quickly made it happen by significantly lowering the price of the car and only slightly reducing the price of dealer installed junk. It’s not your problem how they balance their numbers. All you should care about is your OTD price to take the car home.
Let me start by saying thank you for your advise, i have not purchase the car yet but the first step that I did following some of your suggestions i think it has started to pay off, i send an email to the dealer telling them about the off MSRP, the 1.9% they have on their web and asking if that's for a lease or finance, they reply back to me saying i can even get a 0% for 36 months financing, now I think this is too good to be true but it does tell me that they way I did it sending the email first with a couple screen shots of the car i might buy. they did confirm the price which is a almost $10K off from the original price i think is because is a 2024 model and they are about to receive the 2025 models.
I just wanted to share my negotiation and say that they way CarEdge is advising how to get a better deal it does work, thank you for sharing your experiences.
Did you get the OTD price lowered from their asking price? And what car did you purchase?
Thanks. Wealth of information!
Thank you guys! Seems like car companies haven't got the memo that the sellers car is gone.
Thank you for the valuable content you provide! I would greatly appreciate your insights or the possibility of a video focused on strategies for purchasing high-demand vehicles, such as the RAV4 Prime. Given its limited production and substantial demand, I've noticed that local dealerships often require a deposit to locate one. This approach seems to shift most of the negotiating power to the dealership, leaving buyers fortunate to secure a vehicle at MSRP.
Could you clarify if requesting deposits is a common practice? Is there room for price negotiation in this scenario, or should one simply accept MSRP while seeking concessions on accessories? Additionally, do you think the processes in the finance office are similar for high-demand models?
While there is an abundance of resources on purchasing both new and used vehicles, I have yet to encounter discussions specifically addressing the dynamics of high-demand cars. I appreciate your ongoing efforts to assist all of us!
In Canada, we don't have to deal with the money factor for a lease. Do you have a guide specifically for Canadians?
Should I wait until November and December to cash in on Holiday and end of the year sales?
That’s what I’m doing. I’m looking to get a used challenger RT and I’m waiting for the prices to drop.
when is the first time you should test drive a car, before or after you have negotiated a price? Also what is a prepurchase inspection?
Is there any chance you'd expand your site to cover Canada?
Very good, Ray!
Yeah, I'd love to talk, but I'm booked negotiating my grocery purchase! It's not hiring a builder to build a luxury home. It's not like vehicles are different!
Thank you for what you do Ray and Zach 🙏🙏
Hi CarEdge.. I plan on buying a new car in December or January.. One question on many... what is the best time of the month to purchase a new car??
The end of the month, quarter and year when there are sales objectives that dealers and manufacturers are trying to hit. All the best, Ray
Thanks gentlemen!! You guys make awesome videos that help people like me who is hunting for a used car. On your website if I am searching for some used cars I am unable to filter "Personally used cars". Please try to add a filter via which we can filter Rental/Fleet/Personal cars. Hope to see this feature soon!! Cya!!
Do you have any guides for Canadians?
Ray, that was awesome information, thank you.
Well done!
Thanks for the Info !
This is amazing!! Well done CarEdge!!
Great Dad-vice.
Another great video..!
I've taken what I've learned from you and successfully negotiated a deal on a new Subaru Crosstrek Onyx. Once we had established contact by email and text I was dealing with 6 different dealerships. Unfortunately none of the dealers had the colour of the trim level we wanted but most were able to or already had on order what we wanted. This gave me time to slow down the process down a bit. One dealer offered me a higher trim level they had on the lot right near the end of the month. The deal he was putting together was very good but he sold one and was left with a colour we didn't want. But this was perfect because it revealed that yes, there was plenty of room below sticker price to negotiate. Six emails then went out with "my out the door all in" offer on exactly what I wanted. I got a variety of responses, all negative except from the dealer that had offered the discounts earlier on the car we passed on. Got it in writing, put down a deposit and we should be driving it by the end of the month. Since then a few of the other dealers have reached out to me again... Sorry,too late.
Thanks again @CarEdge
The Part where he tells you what you can afford is VERY important. Here are some facts. In the USA most Financial Planners recommend to not exceed 30% of your annual gross income on the purchase price of a new car. For 2024 thus far, the average American Family income is approx $76,000 which means the Average American Family can afford a vehicle purchase price of $22,800. For 2024 the Average New Car Purchase price is $47,700 OVER 2x's what these families can actually afford!!! So what is happening, to be able to "Afford" the payments families are going 84 to 96 months now on car loans. Another statistic. The Average American Family only keeps their new car Approx 3-4 yrs before getting another car. So what does all this mean? It means the Average American Family is buying more car than they can afford, after 3-4 yrs these families are so upside down on their loans they transfer that negative equity into the new car owing even more and the cycle goes on and on leading to either Bankruptcy or a Repo. This is one reason why we are struggling in this country. That keeping up with the Joneses so to speak is putting you in the poor house. Do yourself a favor, keep your car that you have, and if you absolutely have to buy a car NOW?? Buy what you can afford by following what I just mentioned, or what this Gentleman is stating in his video.
Majorioty of working people earns below average american income earning
between 40,000 and 50,000.
@@eddym5532 national average in the US is $76k that is family income not individual income.
10:25 now do this 30 times and get 5-10 people playing, or as many as you wanna spend time vetting, and really get them bidding for your business!
Then you KNOW you got the best deal.
2 just isn’t enough to know, cause if they’re both 80% dealers (overpriced), beating the other by $1k could still be thousands higher than a 20% dealer who really needs to make a sale. 🤔
I'm currently trying to buy a new/used truck and your channel has helped a lot. as a resident of northern NJ I will try to do my business with you, if the price is right haha
Do you work in "sanitation"?
only problem is I have great credit and my bank denied me for a loan.. my 2nd bank daid they have a 13.5% charge and the dealer would be better to get a loan
@@h3rmzi Yikes, pay cash.
@@trumpius_maximus47not all of us are privileged to wealth. I can technically only afford 5k
I used CarEdge & will be picking up my new car this month. Even though I am a former Purchasing Agent, I thought about it for a long time & decided that I didn't want the hassle!
The information that this channel shares is invaluable! Thank you!!!
I signed up on your website. Can you tell me where I can find the email templates? Thanks a bunch!
Thank you very much!!
Where should you go for PPI?
Dear car edge Why do we have to add 10% to the Out the door price?
I thought the out the door price concept was the final price to drive the car out of the dealer
I’ve narrowed my choices down to 2 new vehicles: Acura Integra ASpec Manual transmission, and VW Jetta GLI manual transmission. About $5000 difference between the two. Not sure which to get. Not sure about resale or mostly maintanance costs.
Don’t go for jetta. The build is not good after a year the car makes a lot of weird noises from poor materials inside
13:00 also I’ve learned that you wanna know get that car’s original sticker MSRP, that way you can see how much it’s actually discounted. Depending on how many years, miles, we know a car 3 years old with 30k miles was probably a lease and was valued at what, 60%?
so 35%-40% discount? bids is always the way to go but sometimes you may only have found one place with that used car you want. So knowing original MSRP seems crucial, and also, make sure the loan doesn’t exceed the car’s 10th birthday (shout out Deshone) ☝🏻
Hi, I’ve been watching a lot of your videos and want to thank you for sharing your knowledge!
My question is this…it’s almost November 2024 and Toyota hasn’t released their 2025s…should I wait it out if I’m considering purchasing a brand new RAV4?
I would review the consumer magazines, and buy the highest rated, newest pre-owned vehicle you can afford.
Awesome thank you for much for this valuable information so appreciated it, Question how can I find cheaper affordable car insurance State Farm is too expansive please help
Thank you
Lesson 1... DO NOT BUY. Crash market by not buying anything. Done.
I like the way you think.
True but the only issue is ppl are just impulsive so it'll never happen
@drift6785 Yeah, but I am ok with them people getting loans. The more of them get loans, the better my 401k, CDs, and money market account do. Win win for me. Keep getting them loans so my bank keeps loaning that money to yall... and I get a cut of them loans in the form of dividends and compounded interest. 😁
I need a car now though
I’m with you! Destruction of society is the only way… I’ve boycotted buying clothes for the last three years - why wear clothes? DO NOT BUY! Got it - clear directions. I’m ready for lesson 2.
I just bought a 2025 Subaru and paid no dealer add ons and 12% off msr and 1.9% finance. And got a fair price for my trade in .Did I do good
That sounds amazing sr,I'm trying to get a fair deal as well for a subaru(crosstrek wilderness)
@@aprendedti29I purchased a Outback onyx xt
I’m working on getting an Outback
How do we get the pre inspection done
Does this apply to used car market as well
I really do not want to buy, but life is too hectict to not have a consistent vehicle. Hopefully i can strike gold in the private car market but the future is bleak.
How can you tell how long a vehicle has been on the market? I’m specifically looking at Southwest Ford in Hudson Oaks, TX.
Is it possible to make dealers compete if they’re under one umbrella? For example, in my city, Nissan is under one name in every county. I’d have to leave the city if I really wanted a specific Nissan vehicle that didn’t have “Gotcha” Nissan.
How many days on the lot for a new car is ideal?
Last weekend, I had a local dealership tell me they could not sell me the new vehicle I’m looking to purchase without a security system because Costco’s car-buying program requires it. Then, the sales manager during negotiations of add-ons told me he would remove the security system (but he didn’t want to remove the price). I have submitted inquiries to Costco to confirm their dealer requirements. It sounds a lot like tied selling to me, and the dealer is blaming Costco for it. I don’t think they’ll appreciate that. Still waiting for responses from Costco.
I'd be really interested to know if you received a response from Costco regarding this. Please update if you can.
@@siriusbusiness2351 I did receive an email response from their Member Advocacy Group, and even though the email includes contact information, I can’t get through to anyone. I’ve replied to the email and called the number and extension of the person who sent the email, but I’m getting nothing. They were more responsive through Facebook, telling me they were escalating the situation, but I still haven’t had any follow-up other than the initial email response. I’m hoping they’ve contacted the dealer. I’m trying to be patient.
However, I called the general number to connect with another dealer and the rep was very helpful through that department when I explained the situation. She took notes and also told me she was escalating it. Then she put me in contact with another dealer who wholly honored the price-without fuss, without upselling, without hassle. My wife and I were shocked and pleasantly surprised by the service the new dealer provided. Truly professional and straightforward. I’ve never had a car salesman say, “I have to offer you these options [dealer add-ons], but you don’t have to buy any of them. It’s just my job to offer them.” 😮 Absolutely no pressure whatsoever. He went on to tell me they don’t make any money through the Costco program (I think they make a little) but that they rely on return business and referrals and that’s why they’re the second busiest Honda dealer in the state. I’m satisfied with my purchase and the service from the second dealer. My wife and I even gave the sales guy a gift card. His jaw dropped. He was in as much disbelief as I was when he sold me the car at the established price. 😂 Happy ending.
By the way, the Costco price for the vehicle was over $3000 below MSRP, a substantial savings.
Why is that we can't buy from car factory instead of a dealership?
To get a PPI, do I simply tell the dealer I want to have the car inspected by a mechanic and arrange it? Are they required to agree? Allow 2-3 hours? Thanks
Yes
Not required to allow it. If they aren't willing to - RUN!!
Great video...Thanks
So wait, we need to get the OTD price, including all taxes and fees, before we start discussing payment options. But then we need to plan on adding 10% more to that otd price?
No, the sales price + ~10% is the OTD price. Ray is just giving you an idea of what to expect in terms of the total/OTD price (based on the advertised/sales price). But, don't negotiate the sales price. Negotiate the OTD price.
Hey, thanks for all the info. I notice you say dont go to dealer until you do online negotiations. But i need to test drive before deciding if i even want to negotiate. So it seems i need to visit dealer before on line negotiations for test drive. Do you have a strategy for that? Thanks again...
I'm not him but I will say if you can find a dealer with the vehicle you want to test drive, you don't owe them anything. Just show up, mention the car and ask to see and then drive it. Once you're done, say thank you for the opportunity and bounce. They can't do anything
So it’s better to negotiate out the door price over email instead of in person?
Negotiating prices in person is giving them the 'home field advantage' and that term really means something. Get an OTD price from any dealer before you agree to step foot in the office if at all possible.
You say the 10% has to include gas and maintenance...then only factor in insurance in monthly cost? If you have $500 to spend on transportation and insurance is $100, you can't have a car payment of $400 unless that car is free to maintain and operate.
I'm in Canada and wish you had your website for Canadians. I love your content for consumers. I do have a question which may not be mentioned. I'm looking to buy a new SUV cash. I went to Buick and tried one to drive but the seat was to high and difficulty to get in and out as short legged. Then the following week I tried one type of new Chev SUV as only had a half hour to try it as my new pup was in my vehicle. I wasn't impressed enough on the new model and said I'll be back to try another type. Last Saturday I had a half hour to try another so the Jeep was just before Chev so I drove in to check . I tried the Jeep Grand Cherokee seat and I said " Ok lets go for a drive' . He asked for my license and I showed the salesman. He grabbed it then Without asking He started to take a photo of my license on his personal phone. I grabbed it and said " What are you doing?" He replied " I want it in my data base". I I said "Your a salesperson not a manager and you have no business coping or taking a photo of my license as the same as my SIN number.' I said 'We are done ! I have a license , full insurance, my vehicle is next to your building sitting there with proof of plate registration. You only need my name and address, and phone number from license . I shown you proof of everything plus your driving with me.' He said I'm do my job and I'll go see my manager .. I said "Nope I'm done as your a day by night salesperson which have no business with my license on your personal phone and I don't want any identity theft" . I checked the government site and it stated this was illegal for anyone or business to copy or take pic of my license as to much personal info for identity theft. I had no issue at Buick Dealership nor Chev and they didn't even ask for my license. , I was a salesperson for a few years at GM during the 80s years ago before starting my own business and no way I could do this to a customer trying out a vehicle nor my employees. Does the Dealerships have Salespeople taking pics of everyone's license on their personal phones? Thanks
What should I do if the car I want have to pre order
What is the best way to use Affiliate Rewards Preferred Pricing?
do i get a prepurchase inspection on a new car?
also curious about this @CarEdge
Does Out the door price include or exclude fee’s? You mention to add 10% for the final price?
Out the Door price means taxes and fees included in the final price they give you
Are you available for Canada too?
How do you get around dealer markups?
Say no and walk away if needed. All dealer fees are FAKE, they are simply part of the price.
If a fee is taxed it is fake.
Or, lower your price offer to compensate for the fake dealer fees.
How about Costco or other such business to purchase or lease car?
You do not purchase a vehicle from Costco or any other type buying service. Costco and the other buying services are essentially a lead generator for dealers.
@jerrylundegaard2592 I guess new vehicles have a set price no matter what dealership. Just need ne aware of incentives and dealer mark-ups. I thought Costco type purchase would eliminate the hassle of negotiation to obtain suitable price. ⁉️ You should bring it up on video. ⁉️
@@rickzabala6020 New car dealers do not have a set price. There is Manufacturer's Suggested Retail Price which means little. Dealers are allowed to sell at any price they can find a buyer to pay.
Dealer mark-ups are nothing more than the price a particularly dealer wants to sell. If the dealer offers a price of $40,000 and has a $1,000 doc fee, the actual price offered by the dealer is $41,000.
Any fee which is included in the taxable amount is a FAKE fee and is just the price separated into parts to fool the buyer.
Incentives are many. Some, such as holdback, are somewhat universal. Others may be location specific or may depend on the number of vehicles sold. Some are unknown until long after a vehicle is sold.
A good starting point for price negotiation is invoice less holdback less any known and published incentives, This information is readily available and offers a car buyer a net price upon which to base a negotiated price.
Costco typically offers a buyer a chance to buy at a "reduced" price based on the prices Costco has negotiated with the dealer. Of course, Costco is reimbursed by the dealer for any sale occurring as a result of a Costco lead. The Costco program has advantages but it does not always offer the best price.
Of course, Costco seems preferable to any of these RUclips folks who charge $1,000 or so to "help" people buy a new vehicle.
If the ticket price $ 57000K.
What is the price out of the door, if i pay cash,when i have to tell them
Hi, how about if we let the dealers do the financing? Coz i know a friend and they bought a car and they let the dealer handle the financing process, they didnt go to bank or credit union,
Question. How do you navigate a dealership trying to get you to finance through them to “get a better deal” as a cash buyer?
Get the rebate and best deal. If you must finance, just do $5000 to $10,000 of a loan. Then pay it off the payment due date. That’s what I did. Costs about $50 in interest but I saved $3500 with a finance rebate I wouldn’t have gotten
@@RonKnowsStuff isn’t it illegal to offer a different price for financing vs cash?
@@JJGray21 manufacturers offer incentives through rebates ($3500) or discounted finance rate options ( 0.9%). That’s allowed
Some manufactures have finance and lease only incentives, thats why you should finance at the dealer sometimes. Its just depends
Do I have any leeway if I custom order an import new car dealing with potential tariffs?
😂😂😂 you gotta be kidding about the 10% right? I spent almost $300 on gas a month. If we apply this rule , the majority of people wouldn’t able to own a car.
They have to buy used and smaller vehicles. That is what the rest of the world does.
I thought the first rule is we don’t talk about deal school?
10% rule is nuts. here in Vancouver, Canada, where everything is more expensive than pretty much anywhere in the world, following the 10% rule means u can't even afford a shitbox on a middle class income, unless you have a massive down payment to put up.
Let’s go!!
Why would anybody use gross monthly income for budgeting? You don’t deposit gross income.
where is kia carnival hybrid 2025 pricing? I do see ex models available but it's more than I want to pay. Kia seems pretty set on MSRP and in My area of the state they're all charging about $800 for their doc fee. Can you get? Under MSRP on a car that they have so few of? Also I would rather have the lxs price wise but It's hard to come by. If I find one, should I still be able to negotiate anything under MSRP or is MSRP considered Fair?
Now how is this fair? I am a regular Joe teacher/engineer/homemaker/student/librarian and I am supposed to be competing for the best price (ie my hard earned $$) with a pro salesperson. Someone whose only job is to negotiate deals and extract most profit out of me?
Can I hire you to do all the negotiations?
That's literally what they do. Up front fee then kick your feet up and they do the work.
Sweet what’s the up front fee?
@@dodgers8one8 1k but you will likely offset that in savings anyway. Hit their site. It's really pretty insane all the info they have on their (such as invoice and market day supply which ultimately means negociability)
So nervous when buying cars were easier. Today it’s gotta be even worse.
To be clear: You'd have to be a doctor to afford the ubiquitous F150's or soccer mom mobiles (same thing really) at 10% of your gross income. If you're an IT professional realistically capable of making $60k, your 10% nets you MAYBE a Toyota Corolla. This country doesn't have many legs left folks.
What OTD means?.
I believe that is means Out of the door price.
@@rosesantelli7513 There is no out the door price. There is price plus state mandated fees (not dealer fees) and sales tax.
Even tho inventory is up. It's only up because no one can afford cars. All the more affordable one are sold out like the new camry, rav4, and Corolla crosses. It's just a facade. All the terrible and expensive car takes up all that inventory rate.
@ 8:34, you mention free templates for contacting dealers. Can you provide a link to these templates? I can't find it, and even when signed in, if I click on what looks like a search icon, it either takes me a page to sign up for the concierge service or takes me back to the login page. TIA
This should help: caredge.com/guides/email-templates-to-buy-a-car-online. All the best, Ray
@@CarEdge thanks!!
Using the email messages never works they simply refuse to send over numbers like that.
All of these crazy budget rules don't work for me. I am retired, not old enough for Social Security yet, I pay my car insurance once per year, and do not ever finance my cars! I just buy what I feel comfortable spending.
Dont, thats how
Hold up... with all of the nations natural disasters in North Carolina, Florida Panhandle, Georgia Floods, and now a Cat 5 hurrican hitting dead on in the Tampa area tomorrow night, there is going to be no shortage for demands for new vehicles from these areas where all their cars, trucks, SUV's have all been destroyed by floods. The seller market will continue because natural disasters have been working in their favor!!
Good thing that there wasn't a long port strike
Are car mats free? I am looking at dealerships and they are charging $200 for floor mats
New cars come with floor mats. If the mats are provided by the manufacturer they are included in the price. The dealer may add them and will try to charge you for them. The astute car buyer knows better than to pay the dealer anything over the negotiated price.
@@jerrylundegaard2592 that is totally strange. I am looking at cars at dealerships online and car after cars has an extra charge for floor mats