How to make a FAIR offer on a USED car & how car dealerships set USED car prices
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- Опубликовано: 8 июн 2024
- Never negotiate alone again: joinyaa.com/
Stay connected with Ray and I here: / shefska & / rasisjaz
Today Ray and I focus our discussion on how to make a fair offer on a used car. There are two types of dealerships when it comes to used cars, and the price you offer depends on which one you are dealing with.
If you like this video, please let us know in the comments below! 
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My strategy for used car is always 1. find a car I am interested. 2. tell the salesman exactly how much I wish to pay for the car , a number I believe is fair. 3. If they say no, simply walk away, and look for the next car. I may not get a deal the first time but eventually I always get a car I like with a fair price I set. No need to waste too much time negotiating, if the dealer doesn’t like your offer, it is possible someone in the market highly likely going to pay more for the car. Just walk away, let that someone get it instead.
Great advice.
Awesome words thank you
Exactly. I’ve used this technique my whole life and I’ve never been upside down on a car loan. No need for GAP insurance.
@@markrocka8718 Yes! Deny GAP insurance it just puts more money in their pocket during financing the sale price, which is damaging your wallet. Depending on the state you can demand for doc fees to be waived.
I absolutely hate car dealerships, I live in Lakeland Florida and there’s a independent dealer that’s been in business over 50 yrs. You will get a car or especially a truck $5000 off what a dealership charges. Paperwork is 20 min and out the door. He does not sell new but can get new if you like. I’m picking up a 2017 F-250 Powerstroke xlt premium with 23000 miles for $41500. He doesn’t talk in circles and confusion. Straight to the point. Your channel is great really enjoy it. Love the father son interaction.
doug hyland I’m in Florida and looking for a Toyota 4Runner. What’s this guys number or website?
L w sorry just saw this, the dealers name is Lovering Auto Sales. Talk to Brant Lovering, the dealer is in Lakeland
Wouldn't mind having someone like your dad during the car buying process. 👌
Good thing you can hire him lol
Crotch Banister He doesn’t sell cars. He helps people get the best price. Hence the name and business of Your Auto Advocate.
"Dealerships thinking their inventory is like fine wine; aging improves it" That nugget of wisdom made me subscribe😊 You're too funny Ray! Love your videos!
Great videos. I really enjoy watching them. Just purchased an SUV with my daughter using you insight and methods. Saved 4,000.00 on a 2018 Toyota RAV 4. Went and looked at them at 4 dealerships. 2 didn’t have any in her color she wanted. The third had one that was dirty and had small interior parts broken. The fourth is a data driven store and I managed to get another 900.00 off the price. We had cash down and no trade in and did not purchase any extras. The came with the balance of the bumper to bumper warranty plus the 5 year hundred thousand mile power train warranty. You guys are great . Keep the videos coming.
I cannot tell you guys how awesome and educational your videos have been! Thank you!
love you guys , so glad you say used and not that ridiculous " pre owned '
I can ,, they're monetized YT videos keeps em afloat ,, they really haven't brought anything to the table for a educated car enthusiast with a modest amount of financial wisdom
I appreciate your no-bull approach to the car buying business. I have always felt that I was getting screwed when I went to any dealership and did not believe a thing they told me. I have walked out of many negotiations. Of course, I check KBB before I go--every time. On my last purchase, I ended up paying the registration for more than one year because in California-at that time--the dealers did not have to register the car they way all of us sheep must.
Ray comes across as a guy who is telling it like it is.
You guys are awesome. Great information I saved quite a bit on a used car during this lockdown using your advice. Thank you!
I love your channel! I have binged watch just about all your videos in 3 days!!!
On a different topic. What would be a good tactic to negotiate a lease on a new suv that is selling on average at MSRP or higher? If that is not too specific would you do a video on that? Thanks for giving us more confidence when stepping into a dealership.
love the business model explanation of used cars, it helps to see the big picture to know how to tackle a negotiation strategy.
So the used wholesale market at auctions is down for the past quarter and it continues to decline, That means that there are currently alot of cars sitting for months at the dealership that with no buyers. Furthermore, Hertz is soon to file for bankruptcy and they recently canceled thousands of car orders for this year from differentmanufacturers; all their used cars will soon flood the market which will cause an enormous oversupply... which means extremely lower prices for you.
If your looking to buy a used car, wait a couple of months. Your $15,000 car will go for $11,000 your 12,000 for $9000.. and so on. There are hundreds of dealerships that in the brink of collapse and they will be able to give a sweet deal to survive, dont settle for the ones that just want to give $700-$1000 discount bs. and dont even think to trade in your used car during this time, you will l get $0 to 20% at most for your used car, they are already saturated with inventory.
Thank you for the information I'm currently looking for a vehicle and it stressful I hope I can find a dealer that will be honest and B.S around I just wish I could have someone go with me that would know when the dealer is bullshiting
Boy were you super wrong
I read this commonly but its not like that at all. Used car lots are bare and I cant get to the them before they get sold.
Michael Viglianco because the money they pumping into people pocket, people have lots of money right now and used car price are jack up af. Fucking inflation.
@@tommydo961 Yup, the original comment isn't true at all. Car sales are booming and cars are flying off the lot with dealers making good profits. Here in Canada people got over $10,000 in government handouts because of COVID and they actually noticed the rate of car sales and finances for cars increased lol. Car sales will never crash, it's a daily commodity people want and need new cars to keep going in life. Dealership crashes were predicted but never happened.
I love your videos! I have a question: How can you tell if a dealership is "Old School" or "One Price"?
Love you guys. I find that I watch every day.
Awesome video guys. Fantastic insight into the inner workings of the car dealership, thanks for sharing.
Love your wisdom and willingness to help potential buyers become more savvy. Future video suggestion: How do you know "when it's time" to take the plunge and trade-in? What are the most common reasons (and most ridiculous reasons) you have heard for people wanting to trade-in/purchase a new/used vehicle? I became curious about this after watching the "needs assessment" video on your webpage. Thanks!!
Thanks for this video, confirmed alot of my suspicions about pricing.
You guys are great, and I look forward to your contributions within the automotive sales market daily. Keep it flowing gentlemen.
Great videos, especially about not telling them you are paying cash. My dad would wear his worst clothes and shoes with holes to go car shopping. 😂😂😂
Your channel is incredibly instructive...! I bought my third car and felt I had more knowledge of what I was doing than ever because of you guys. I ended up with I price I was happy with and felt the dealer respected me much more. Thanks a lot, I’m from Quebec
The younger man asked some really good questions. Thanks for the video.
Thank you for all you guys do very informative I've learned so much thank you
Love the format of the conversations, Zach. Please tell the expert thanks for us.
This was exactly what I needed to hear right now, thanks gentlemen.
you guys are wonderful, LOVE THE CHANNEL !!!
Enjoy your content. Useful and well delivered
Great Video! I'm just waiting for the best time to purchase USED.
You guys are AWESOME! Love watching your videos. I will be looking for a new or slightly new vehicle in 10 months. I know exactly what I want. This will be very helpful for when I start shopping.
Check out the ceiling in his bedroom. He did well.
But who wears a white t-shirt and bathrobe for an interview?
Too much information made it as clear as mud. I just need a good used car without getting cheated.
Great video. Video suggestion, the fees that they charge on used cars versus the fees on new cars. Thanks
Walid bahhur yes
Y’all listen to this man he knows his stuff!!
Great info guys 👏🏻👏🏻👍👍 I say this is one the most informative video among other great videos you have done. THANK YOU 🙏
I'm really enjoying your channel. Lots of great wisdom being shared.
On my last car (used CPO) I really wanted to buy a certain car from a one-price dealership. The only problem was that their market price was a fair amount higher than every other car on the local market, including the one I ended up buying which was a year newer, had 10K less miles and more options. I guess they thought their wine was better!
Wow! It was great that you've shopped around
Usually it takes about $1500 to certify a vehicle usually it will come with a 2/24000 mile bumper to bumper warranty or something like that and those vehicles have been through some sort of an 112 point inspection on the car maybe that was the reason it was more expensive.
I went to a fine wine dealership last year. According to car guru, the used car i was looking at had been sitting on the lot 260 days. When I went to test drive, the battery was dead lol. The price was good according to the website, but I figured I could get more. I made what I thought was a fair offer ($700 below asking price). They politely told me to have a nice day. I guess the nail in my coffin (by watching your videos) was the fact that I told them I had my own financing.
Anyway, I enjoy watching your videos. They are very informative, so keep them coming!
These videos are super interesting. Thank you
This was so great. Thanks so much for the insight.
great video guys, thanks for the info as this will help me hopefully make a purchase this weekend. I'll let you know how it goes.
Man I really love your videos. Father and son, makes a great duo.
My question...
My local Toyota dealer states the used car prices are pure because in a 50 mile radius comparable vehicles are at or above this said price.
Therefore there is no wiggle room at advertised price is final. Any truth to that?
Also is the $600 Toyoguard paint protectant on new vehicles, something that can be refused.
Thanks again for great informative videos.
Patrick is dropping gold nuggets! What a polished professional salesman!
Very good video!! Thanks for making this.
You two guys are fantastic and I appreciate your efforts. Your channel is great and your DAD is a genius in his own way. I can listen to wisdom all day long and he has the "swagger" to go with the humor, knowledge, and experience. He's a person to be respected and you guys deserve all that you receive. Thank you and thank you again. I'll keep watching more videos, very entertaining and educational in so many different ways.
Llll
Pploolpllllllllllllolll
Plopp😊plllooo I’ll lol ok ok llllllllpllllll
I love the conversation. it makes me a better consumer..
thanks you guys, useful and very quick output too :) you guys rock. so identifying what kind of dealer you are working with seems to be the main idea here. If you don't mind diving into that topic and how to find dealer types based on their revenue model , it'll be great. Also could you talk about trade in values. it seems like in most cases when you bring your trade in to a dealer you lose more money vs if you sold the car privately and walked in with cash.
Happy to help! Thanks for watching!
Almost always better to sell privately and buy privately for that matter!
Thank you is all I can say as I listen to your knowledge.
A $1500 profit on a $25,000 vehicle is a 6% return. If that is in 10 days that is a dang good return.
Yeah, he kind of went through that discussion pretty quickly like we should all just accept it. If they kept that up for the year, that would be a huge profit (over 800% yearly if my figures are correct).
I have successfully negotiated a price discount at CarMax -- but it was for a car that had been on their lot more then 60 (or was it 90 days). I vaguely remember a conversation with one of their mgrs. -- they incrementally mark down prices by a certain % after it has gone unsold for a certain number of days.
Two things: I recently made an appointment with a sales person at a dealership for a used vehicle I liked. The price had been reduced online and that caught my interest. When we started talking numbers, they used a higher price than what was online and when I went to check the website, they had raised the price by 2k.
I'm ok with the one price dealership as long as it includes a legitimate 2 or 3 year warranty. The finance manager at a dealership is going to try to sell it to me anyway so at least I feel i'm getting something for the higher price.
Next time print it off, and when they refuse to honor it ask if they'd like to be reported to the State Regulators (whoever it is in your state) and to Better Business Bureau, bad YELP, GOOGLE, etc review just for icing.
Good information. I appreciate your insight.
Excellent advice. More on used car market driven and aging cars negoiation.
TY GENTLEMAN.
I appreciate your business savvy
Haha!
"Fine Wine Policy".
That was AWESOME.
Dealt with a couple of dealerships in Abilene, Tx who had that thought process...
... surprise...I didn't buy a thing from them.
Omg this is so helpful
Thank you, this is quite the valuable information. I would pay to know this stuff.
Great video! Thank You
You guy's insights were priceless. Could you guys expend this insight into different markets, such as Canada?
Great program offering info on how to start to develop a strategy to make an offer on a used car.
I had an experience with a SoCal Porsche dealership late last year, where I offered several grand less than their price, the dealer came down a little but said their adjusted price was final and the car was going to auction at the end of the month if it didn't sell at that price. Their final price was about ten grand over the trade in value of the car. How likely is it that a dealer would get substantially over trade in at an auction?
This is fantastic content, I’m always going to want money off, it’s showing willingness to work with me, if you don’t move at all then I’m not buying your car it’s that simple, I don’t care what their model is. Your videos are awesome, so much good information!
Great review. I've learned a lot. I'm saving up right now for my dream car. THE INFINITI Q70L. I plan to have it in 2 years from now.
Top 20 vehicle to stay away from..Unreliable & very costly
Did you get it?
Great video. Thanks for info
Market based is exactly what I must be dealing with now. They will not budge on the price. Well, not more than $500. And it's been sitting there for 2.5 months.
You bring up a point that inspires a question. When a dealership wholesales a car to another dealership, does that show as another owner on the Carfax report?
Thank you guys for the update. it turns out I'm not special, but I will get over it. LOL
You seem very reasoned. Thanks. Car prices are still too high, that is, less valuable than many other more urgent and important family needs, but you have bounded the retail buying experience Thanks
wow ray seems like a deep thinker , i'm waiting on his every thought
I have a question: If you do have a customer that comes in and wants to pay the sticker price for a car, but it has special incentives like rebates or other price reductions, do you ever feel obligated to mention that to the customer or do you ‘go with the flow’ ?
Lifted trucks! Do a video on specialty trucks, and custom vehicle pricing, negotiation and trades cause let's face it, neither are selling at the moment! Subscriber since the beginning. #TeamShefska
Hey are you planning on doing a video on how to navigate used or new car purchases in this volatile market. Are there deals to be had? Should we buy now or wait a few months? Will lease returns, repos, and rental car bankruptcy drive prices lower? Thanks in advance!
Super helpful video and now I know why several dealer would not budge off of their internet pricing. Thanks to both of you.
Guys, love your videos! Ray, from one of your previous videos, it sounds like you did work for a BMW dealership(s) at some point. I was looking to buy a 2-3 year old CPO BMW 5 Series (but will delay a while because of Covid-19). From what I've I've gathered from research, a large percentage (and maybe even a majority?) of near new BMW sales come from off-lease vehicles. I'd be curious how BMW (and any of the luxury brands) price their used/CPO vehicles in relation to the off-lease residual values, trade-in values, etc? I'm guessing a $40-50k off-lease luxury CPO is not priced the same as a used $20-30k trade-in (for a Ford, for instance).
Yes please get into the details!
I bought my 2017 Mustang in August of 2017 from a very small used car dealership. There was no finance dept and no service dept. His model was to buy cars at auction that would sell quickly. The car still had some time left on the manufacturer's warranty. He didn't try to sell me a warranty and there was no pressure to buy. The price was fair. Yes hubby and I did research on prices for this type of car. I had the option to pay cash or by credit card. By paying cash I received an additional discount as the dealer saved the credit card fee on his end and passed it on to me. And yes I asked if a cash deal would reduce the price. The car was almost exactly what I wanted. The only thing that it was missing was blind spot monitoring. The only other Mustang EcoBoost premium with the features that I wanted that was available within a reasonable distance would have cost me $14,000 more as it was a new car. So I opted to go used with a car that had 26,000 miles. Nothing in life is perfect but I've really enjoyed this car. Would I like blind spot monitoring? Yes but that's all that I miss. Hubby and I test drove the car on Friday and returned on Saturday to buy the car. The dealership was a two man show and there was never any pressure. Btw, I'm just across the Potomac River from you in N VA. I really enjoy your videos!
What is the best process to come up with an initial offer in a used vehicle negotiation with a dealer? Should it be based off of trade in value, private party or dealer retail? So far my research is showing they are asking about 5k over trade in value.
For full disclosure, I haven't dealt with a used car salesperson since maybe 1995 so what appeared shocking to me could be what most would consider 'normal'.
First impression: place - an HGreg facility, they operate in Florida - look filthy inside and out in almost every way imaginable. Customer parking was crowded and I feared for my car's integrity because parking spaces were so narrow.
Inside, it looked like a crowded sports bar, only the screen had HGreg propaganda running.
I had an appointment for test-driving 2 cars but, since I had test driven the exact same brand and model at another dealership I told them that all I wanted was to see/inspect them and then, possibly discuss terms of purchase. They told us to find the cars in their parking lot - there were hundreds of cars there - vaguely suggesting one area were we were likely to find the vehicles. After 10-15 minutes of walking in a 90F heat we found one and it looked Okay but we never find the second one. Some employee told us to look elsewhere in the lot but 10 minutes later, no success. We liked the one we found enough so we decided to talk with a salesperson.
Oh, the sticker price on the car was more than $4000 higher than we saw online but we had a printout of the online price so we didn't worry about that.
The salesperson we were given forced us to listen through some BS talk about how special HGreg was because unlike other used car dealers, they were not negotiating prices so we were so lucky to be there. When asked about the online price vs on-car-window price discrepancy he told us that they will 'honor' the Internet price so I suspect that if you just walked in and liked the car, you'd be paying the extra $4000 if you were to buy it because price was not negotiable.
To cut the BS short because the bad vibes were almost unbearable, I asked the used car salesman to print us a contract with real dollar figures on it so we can decide whether we were going to buy the car or not.
So the contract included:
- a $400 BS electronic filing fee
- a $980 BS make-dealer-happy ripoff fee (sorry don't remember how they called that)
- a $500 made up title, tags and registration fee and he couldn't explain why it was $500 and not $400 or $600.
By comparison, Carmax fees for a similar car were $27 for electronic filing, $400 make-Carmax-happy and $402 for title and registration. Carvana's, from where we eventually bought our car were $0 for filing, $0 for making Carvana happy fee and about $300 broken down into precise amounts for Title, Registration and License Plate.
I told the used car salesman that I would agree to pay those 'fees' if he lowered the car's price by a similar amount. When he asked why he should do that and I told him that the 'fees' were absurd he told me that that was my opinion and they were not going to touch them.
So we left and, as I stated above, we bought a similar car listed at a similar price from Carvana. And 'saved' over $1500-2000 in HGreg's bogus ripoff fees.
I hope that not all used car dealers are like HGreg but then, I will probably never know because it's unlikely that I will ever again attempt to deal with such people and businesses. And I believe that we only scratched the surface of potential customer ripoffs here. We were going to pay cash so had no need for financing, had no trade-in and didn't care about a service plan because the vehicle we wanted to buy had some 2 years worth of manufacturer warranty left. But I can only try to imagine the many ways these people would financially abuse a customer who did need financing, did plan to trade in their old car and did want to purchase some post-sale support. Mind is boggled.
Ok you guys won me over I’ll subscribe!!
This is great.. I’m new to the channel.. thanks
Great content! is it true that one way (not the best way) to get rid of a negative equity would be to lease a vehicle?
The thing that might make that person “so damn special” is the fact that that individual is there at the moment ready and willing to pay for the car.. as opposed to the next that may come along say a week or a month later.. 🤔
Great video and info none-the-less! Thanks guys!!
I've seen dealers with cars that have "birthdays"! It's so true. There are all kinds of store policies and so many badly run ones. Like everything else l suppose. My least favorite are those that require store generated financing.
That "what makes you so special" tactic might work on some people. I would just walk away because I would feel insulted somehow i.e. the customer is always right or at least shouldn't be spoken to in that tone. Informative video. Thx
The customer is definitely NOT always right. BUT, the customer is always just that, "THE CUSTOMER". As such, the customer is important and necessary and deserves respect. It is a 2-way street and I have missed out on deals simply for being a corn-hole.
@@matthewaxtell Do you sell cars? lol
@@mulljacob Worse, Ag Inputs, Retail. I sell stuff people need rather than what they want. You always get beat up more by someone who needs what you are servicing.
@@matthewaxtell what should I google to learn about Ag Inputs?
@@PaulSchneider-bp2ic That's a question I don't know the answer to. Its kind of like not knowing your own phone number. Ag (agriculture) Inputs is what ever it takes to grow a crop. Seed, nutrients and crop protection products mostly...coupled with service.
The profit of a used vehicle is not in the selling of the vehicle. It’s in the purchase of the used vehicle.
Thanks for the great content! I’m sharing your videos and business with friends and family. This might be out of your scope, but I would be interested in videos on vehicle recommendations (i.e. reliable cars for first time buyer or growing family). I also would be interested in content on financial advice when making a vehicle purchase. I understand that you aren’t mechanics or financial advisors, but I’m certain you’ve gained “nuggets” of wisdom by working in the industry for some time. Again, thank you!
Visit Scotty Kilmer YT channel for his picks.
Toyota/lexus makes a very reliable product
Yes, scotty kilmer.
Thank you 🙏 I better understand what painfully took place this past weekend 😖😫🙄
Do dealerships apply different styles of markup for auction cars versus trade ins? I imagine dealerships have to ability to get vehicles cheaper at auction on occasion, so would they hide that cheaper purchase price with higher markup?
If paying cash for a used car at a dealership when is the best time to disclose it and does the dealer prefer not to deal with someone offering cash?
So the question is, how do you know for sure that you're shopping at a one-price dealer? Carmax's website, for example, cleary says "no haggling", but Carvana's does not. If you're at some random dealer's lot talking to a salesman and he says "we don't negotiate", how do you know that's not just a negotiating tactic?
Fank you for all the good information you both give the consumer one thing I would like to know is about the auctions how inexpensive do dealers even private or commercial dealers buy cars at auctions what Percentage or margins do they save on bulk buying at auctions or 1 on 1 avoids been curious about how much profit there is in the auction sales business thank you very much
Always good info on here. Thanks. Is there any way of knowing which dealers are old-school, where it's possible to negotiate, and those which are data-driven, 'the price is the price'?
Internet pricing is usually close to their lowest.
Question: If I buy a used car, should I go to a big dealer or do the little 10-20 car independent car dealer? Really tight budget, college student.
Last year I bought a 2017 Ram 2500 Cummins diesel from a one price dealership (big national company not Carmax). Like you said they wouldn’t budge on the price. BUT I was able to get them to waive the dealer fee which was around $700. Not much said here about dealer fees and that’s something I always refuse to pay because it’s pure profit.
I got a ridiculous price on 2018 Toyota RAV4 LE all wheel 30,000 miles for $15,900 They still want to charge delivery fee, safety check $1800 also reg & taxes. Out the door price $20,220.16 This is still a fair price. I told salesman to close deal bring the car to my mechanic 12 miles away they said no we can't do it. Bring your mechanic to us or purchase the vehicle first. In my area there is no mobile mechanics for some reason used to be years ago. I said no way not purchasing the vehicle .
I'm going to wait for more blood in the street!
I'm guessing that didn't end well for you. Maybe in the middle of winter prices will crack. Hard to say. But you were right to walk if a dealer or anyone else won't let you take the car to a reputable mechanic of your own choice.
How do you get the Manheim Market report? I’m looking for a 2016 Civic for about 8k-9k. Do you think this is possible?
Looking at buying from car rental dealers. Trying to wait till end of June, anything special I should do or look out for. Are they a one price dealer?
We have all traded in cars and the dealer never wants to give you what your car is worth on a trade in. They easily mark a car they paid 25 k for on a trade to 31k
Explained everything perfectly. I feel much better about what I paid for my used car knowing what I now know. Thank you
This is great info I was confused in why I was looking at 2 vechiles not much difference and the prices where do different. I understand now thanks for the info. I'm looking to buy my daughters first time vechile and it's been a struggle finding something that I'm ok with knowing she will be 4 hours away at college that is in my price range. I've done my research on what vechiles or good with high mileage etc. The pricing being as high as $3000 more at some places was throwing me off.
Any content on CarFax and Autocheck dealer games would be appreciated. It is super frustrating to see “Clean CarFax” only to read the report and see damage reports. Great videos, thanks!
The auctions you mentioned, how do you find them? Are they open to the public?
This gentleman has an incredible resemblance to Michael Mckean, in projection and appearance.
*
This video is gold, very well explained.
It is so true, most dealers are data driven, that is the price, not a penny less.
Let me add to what he said, WHAT MAKES YOU SO SPECIAL?
He is wrong for him to ask that, the dealership made consumers FEEL special.
at 17:56 , Ray you hit the nail on the head, it's not that I want to be more special than the other buyer, It's that i have complete mistrust and feel that I am overpaying for this depreciating liability ( knowing full well that it is already dropping in value exponentially anyway, unless I can get it for less than what the dealer paid), so the only way to convince me that i am not is to show me the price they paid and decide how much more over that i am willing to pay. I believe that the company is for-profit and is responsible t the stockholders to make that profit, so I'll agree to pay a small markup, maybe 5-10%, because i also know ( and this is sad but caveat emptor) they will gouge someone that does not watch and take the dad and kid show. BTW, i laugh when they say "no hassle pricing" and try to make people feel good, because i hear " hey sucker, we are sticking to you with no lube and you have no chance to get a good deal. LOL. Keep up the good work. I love Ray's evolution from these earlier videos where he seem to be a stick to the business, don't smile to now having the one liners and roasting his son on the air. Build my trust in them . ( hey , wait a minute, is that some old school car dealer tactic to get my trust? lol)
Can you talk more about Carvana and how we can negotiate with those types of dealers?
You don't.