Dealership Finance Managers HATE when you know these 6 things!
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- Опубликовано: 7 июн 2024
- In this eye-opening video, I reveal the secret phrase that dealership Finance Managers absolutely despise hearing! Discover the power behind these few words that could potentially save you thousands of dollars when purchasing your next vehicle.
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*This video is my own opinion based on my professional experience. I am not a Financial Advisor or Attorney. Please seek one if you feel you need legal or financial advice.
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I just helped my daughter buy her first car last year. We had prearranged financing through our credit union at a rate that was less than half what the finance manager had quoted us. They refused to sell us the car after having the deal fully negotiated. We called another dealership that had the exact same car a few miles from the first dealership and told them what was happening and they told us to come on and they’d accept our financing. That turned out to be one of the most comfortable and easy car purchases I’ve ever been involved in.
sounds like they were just angry! GOOD it better to go somewhere else! if they are like that. its ok for them to rip off the consumer but when you try to do it to them they get bent all out of shape
You need to practice saying it at home and hear youself to overcome any doubt or hesitancy, it does make a big difference.
@@blakespower No they didn't wanted to rip off the dealer because it's not possible lol , they just wanted to buy a car without being ripped too much.
Back in the recession a few years ago, my wife and I purchased a car. The interest rate wasn’t too high through capital one finance since my credit rating was so good. It was only seven point something and then I refinance it through the local credit union where I deal with interest rate is 2.9% you can’t beat that. I almost have a car paid for now. it certainly pays to belong to a credit union. They are much easier to deal with in my opinion than a namebrand bank.
I made my deal at Toyota and then said I was putting 20k down and financing the other 15k. Finance told my salesman (who I liked) I had no credit at all. Some crap about it wouldn’t even show up but I could borrow from them for 18%. I called my credit union and was approved in five minutes for 5%. When I picked up the vehicle the finance manager never offered his hand and ran through the paperwork as fast as he could without even offering me to buy extras. I was happy, he was not.
Yea, but buying any vehicle for $35,000 is stupid to begin with. LOL.
Nothing wrong with buying 35k car. Buy what u can afford. My last 2 cars were 65k each. Don't hate on people that can afford more than you
@@salgeoffrey4435 Boy if you only knew my net worth you would feel real dumb. Can probably afford waaaay more than you but not dumb enough to blow money on stupid shit.
@@salgeoffrey4435 < --- Finances expensive vehicles and he thinks he is smart. LOL.
Had a dealership try to say our credit was in the 600's some years ago and threw around a crazy interest rate. We had apps for every credit agency and pulled a report on the spot showing we had well into the 800's. They came back with some bs that they entered the wrong social security number and came back with a report with the correct rating. That was the last time I financed a vehicle. I go in now saying I'm going to trade something or I'm going to finance then, hit em with a check at the end.
Great video! In 2020 I needed a car now, and found one. The dealer played the keep them here all day so they will sign anything. I paid the cashier my deposit and when I finally got to the finance butthead, he turned out to be a shyster. I kept asking the APR and he kept avoiding it. When I bought an extended warranty but none of his other crap, the APR rate changed. He actually said, since I am buying less he can't give me the better APR. I was livid! After almost 6 hours in the dealership I was wishing I walked out. However, the next day I called my wife's credit union and they gave me an APR less than half of the dealer. They paid off the loan that day, which was the next business day from when I bought it. I also left a bad review to the manufacturer. The finance guy actually called me at work and started yelling at me! I hate being manipulated. I hope he lost all of his commissions!
If you're in the US, the practice of charging you a higher interest rate because you're buying less of their products at the finance table is called "tied selling" and is very illegal.
I wish I knew this back then.
@@sammysleeves33
Weak finance managers do this. REAL finance managers can actually build value in their products with out playing these games....and yes, some of their products do have value.
“Finance managers” are just another level of sales people. Remember, what they present you on the table is their profit center.
Exactly!
@@antoniodavid2253 the world revolves around is profit; its a job
We recently had planned to buy a car at a dealership, but if I paid cash, the car would be $5K more than if I financed it. We did not want to be making payments, but they told us that they get a kickback from the finance company, so they can sell the financed car cheaper. They really pushed the idea of getting the financing and just paying the loan off in 6 months with no fees. To me, that was a great deal for them and a bit of a hassle for us. As a result of their inability to make the deal attractive to a cash paying buyer, we walked away and found another car at a different dealership, that we paid cash for with no games.
I wouldn’t mind “financing and paying it off fast if they could give a great rate which I think is still high.
We ran into a similar situation and ended up financing the car and paying it off on the first payment.
@@Ryan-rn8gk They said we had to make payments for 6 months before we could pay it off, or we'd owe them the extra $5K. I was not willing to reward them with buying a car from them under that silly game. Their rate was not great either.
@@Lg8T3 Their rate was not great, but I refused to be roped into financing. They lost a sale from us, as we ad cash in hand, but spent it on a different car at a different dealership.
I don’t blame you.
What Kimberly didn’t tell you and, sadly, probably won’t tell you is that the BIGGEST thing that finance managers hate is when you say ‘no’. Say no to everything. It is a depreciating asset. You really do not need ANY of the products that they try to sell to you to make more profit for them.
Just. Say. No.
It’s so easy to say and actually kinda fun.
Twenty years ago I would have agreed with you. Not now. These cars are designed to be hard to work on and wear out in no time at all. My 16 Acadia is only the second car I have bought an extended warrantee on, in my life. That $2700 GM warrantee paid over $14500 in repairs in 5 years, with no hassle at all. The first one was $1900, from a third party company. It was a giant PITA to get anything covered. It still paid over 10k in the 5 years I had it.
@@griffinreitz7041 "That $2700 GM warrantee paid over $14500 in repairs in 5 years." 'Sorry, but maybe you could have bought a vehicle made by a company with a better record for reliability, and skipped the extended warranty and all those repairs (in just 5 years?). I know, we all make mistakes.
@@kenhoward3512 it was a new car. it was supposed to be reliable. Any brand of car can need all kinds of repairs. that includes Honda, Toyota and the expensive garbage like lexus. Just because you obviously think GM is junk doesn't mean it is. buy a ford. you'll think GM is great after that. can you condescend more?
@@kenhoward3512 You aren't wrong. Only thing is I've driven GM trucks for 30 years. 300 to 400k, no problems at all.
I had no way of knowing that GM had gone completely to crap since 12 or so.
But, considering every make, now days, is $1500 for anything, I'll buy the warrantee the next time too.
@mgaming7 It's interesting that you refer to Lexus as expensive garbage. I recently purchased a used car(not a Lexus) from a Lexus dealership. They prominently display two charts showing that their cars are the best or among the best in reliability and cost of ownership. 🤔🤷🏾♂️
This is why you should always get the OTD (Out The Door) price for the vehicle you’re interested in.
NEVER answer when they ask you how will you be paying till you have the PRICE for the vehicle. You know it's going to be higher if you say cash.
Yes. well said always ask for outdoor price first once u see them numbers than you can bring up a trade in never b4 and double check that paperwk very carefully because then bs add on will be on and if you don't catch them guess what that's coming out of your pocket and if that sales person or Mgr isn't willing to work with you, you go to the next dealership it's that's easy!
I put 6k down on a 15k vehicle. The finance manager told me I need gap insurance. I asked if he thought the vehicle wasn't worth 9k
What an @$$hole!
What did he say? XD
Selling GAP on this transaction would be unethical....
How does it go ? Because I’m about to do the same to a 17k vehicle
I put 6 grand down on a 30,000 4runner and he told l told me straight up that I would never need it. Then my wife totaled it and I got all my down payment back.
I’m not going to a dealership to be friends. 😂. I couldn’t care less about the finance managers feelings or his bottom line. Either we do business on my terms or I’m going down the road to the next guy. Great tips! Empower the buyers to be educated!!
Never paid for a new car always bought vehicles that were used with low mileage, paid cash always. Learned a lot from watching this video. I actually enjoyed the fact that you were honest.
If you put $40-50k in to ticker ARCC, you would get a 10% return (taxed in 1099-DIV). Average auto loans are ~7% for good-to-great credit. The car is going to go down in value while the fund is going to stay relatively flat and pay yields. You've been making a financial mistake by buying cars cash.
The majority of people can't pay cash.
I used to work for a bank.. If you really want to make the F&I guy sad, FIRST negotiate your best deal... THEN tell him "oh by the way, I'm paying cash." Lots of times they'll work you a great deal on the price, with the back end finance profits in mind.. Also (forgive me if its been said) but always (if you can) buy on the last day of the month. The dealers are desperate to unload units on the 31st because on the first, they get hit with a flooring bill for each sled still on the lot.
What's "sled" ? You said "for each sled still on the lot"
@@highwayhash2541 Car dealers are very sarcastic, bitter, fussy people; and they often refer to unsold cars no one wants, as "sleds" (pejorative not literal) and if a particular dealership has lots of unsold inventory (like say Ram Trucks which has like a 787 day supply) they refer to that dealership as "a sled lot" like trying to sell sleds in the summer. Good salesmen avoid sled lots, and try their hardest to land a job at a Toyota (which has 60 day supply) or some other more popular make, because they're easier to sell. Anyway, "a sled" in dealer slang, is just a car that no one really wants.
I guess thats why they keep nothing on the lot except overpriced used cars
@@milfordcivic6755It is true that there can be a big advantage to buying at the end of the dealers month because the dealer has to refinance all of the inventory on his lot every month. He is working on borrowed money too.
One problem though is knowing when the dealers month end is.
They can all be different depending on their agreement with their financial lender.
Some will be the 30th of every month while others might be the last business day of the month. Or some other date?
If you don't know and the dealer has already refinanced the inventory yesterday you will have no advantage today.
@@milfordcivic6755I was thinking this as well. What dealership are they at that still has new Toyotas on the lot (not counting the monstrosity that is the bz4x)
Kimberly is the real deal. She answered my texts in real time when I was buying my brand new 2021 Toyota 4Runner TRD Pro in Lunar Rock and had questions during the finance stage. She helped me tremendously. 😊
Hardo
As a woman, I’ve walked off lots when no salesperson has time, even when I had the money In my pocket.
Rule number 1 establish an out the door price before deciding on how your going to pay
*you're
@@danettewelborn5577 thanks dad
You are correct..then walk out with that price and shop it to other dealers and let them bid for your sale. I do it by email so only the winner will see me. They never get my phone number
@@danettewelborn5577Get a life.
Walked into a dealer two weeks ago with paperwork (Carfax, consumer reports research, advertised list price, etc.) on a car they'd taken in trade, posted for sale, but hadn't quite finished prepping. Stopped at the gas station during an extended test drive, and was paid to fuel the car... all good, exactly as expected. I 'accidently' popped the hood to look at the engine compartment... all good. Said I'd be back the next day with my wife. 24 hours later, wife test drives... all good. Dealer then asked me to talk about monthly payments, and handed me their sheet with 7k in add on's. Took my pen, crossed out their add on's, circled the asking price (which was actually below my well researched expected cost)... said... cash or check? As predicted, finance manager was less than happy with me. Salesman however was impressed, and asked if I wanted to sell Toyota's.
This lady could literally make a career out of sitting there with buyers at the dealership and negotiating for them.
Thought the same thing. She could be a consultant for car buyers
Eventually they would lock the doors when they saw her coming.
Bought a mint used jetta in 2020. Dealership pulled every single scam but I wouldn't budge. Wanted me to pay $400 for nitrogen filled tires. Lol. Said I'd walk and got that for free. Tried to sell me oil change package. No. I'll take it to my mechanic that's closer. You HAVE to be willing to walk away. Know what the vehicle is really worth (kbb) and be financed thru a credit union ahead of time.
Use nada values, it’s what a bank will use to determine LTV. KBB is a scam designed to lower trade-in values and raise retail values.
I Just bought a car with cash couple months ago. The finance manager didn't say a thing just counted the cash we signed paperwork in and out within half an hour Loved It!
The less you hear from those snake oil salesmen the happier you'll be. Good job paying cash!
Most legit dealerships will only take a cashiers check. Very few are taking cash….
When it comes to large sums of money, apartment managers, car dealers, realtors, mortgage companies, banks, and the government are all much happier with checks or debit/credit cards of one variety or another. It means there is a paper trail as to where those dollars came from and orders of magnitude less likely to be drug/illegal money.
Also, if a cop pulls you over and finds a large amount of cash on you, he can simply confiscate it. Many people have been nailed by this. It's called 'Civil Asset Forfeiture' and they don't have to charge you with anything at all to do it. Look it up.
Was this cash transaction over 10k ? because if so, I have questions if you were still able to drive off with in the half hour.
This should be shown to every high school student, with the final explanation, "If you want a car, use self-discipline save your money, and buy with YOUR cash."
People who scrape money for years to make a big buy will make damn sure they're getting the best possible deal they can find. You respect the dollar amount much more when its money you already labored for.
I cant wait until the dealer model is gone. Pay cash and just drop it in my driveway, leave the title on the seat and I will register it. Take that $1000 doc fee and shove it.
💯@@davids.9834
@@davids.9834 I don't understand... explain.
I definitely wish I had this knowledge back in high school, I would have made smarter money decisions.
Well said this younger generation wants instant gratification. Make a plan and save your money!!
Excellent video thanks! Cars have become stupid expensive because they are overloaded with too much gimmicky crap we don't need. When a dealership looks more luxurious than a true 5-star resort, you know you're about to pay WAY too much for a piece of tin.
If any finance manager doesn’t accept a full cash offer they are doing their dealership a huge disservice. It’s called cash flow which they could be investing in immediately and cash in the door now should always be a priority to any business.
I just experienced this. I negotiated the deal after a $2,000 price drop ($2K less than the sticker price on the website). I let them think that I was financing until I got a final price. When I agreed to buy the car at the final price on the deal sheet, I told them it was cash. At signing there was a pitch by the finance manager to add an extended warranty for around $5,000. I wasn’t allowed to keep the form or even take a photo of it to review later. He also pitched a 5-year tire and rim plan, then a 3-year tire and rim plan for $900. I declined all of them although my spouse asked to hear the details. I hate high-pressure sales tactics that are only good while in the room. Plus, I already knew the extended warranty was $3,800 with the same company and not $5,000. I sought out extended warranty quotes during my research using the VIN. I have since learned the same tire & wheel coverage is $320, not $900.
And that's why we call them "stealerships."
I bought toyota 4 rav and took the tire,rim, is windshield warranty and it was not worth it.
I sold New toyota for over 10 years and you right on the dot. I helped an Alabama shopper save $3500. In buying a new car Advicing her what to do and what not to buy. At the end she thank me for the free advice. I didn't know her from Adam, just over a discussion over a you tube channel. 😊 I never took advantage of my customers. That's why I end up quitting. From Tampa Florida I help anyone that needs free advice if I can. FNI are pressured to sell or lose the jobs.
I can't believe I did a $3,000 extended warranty. Never used it.
I had an extended warranty that I missed on a vehicle.
But I actually won, at about 85k miles I had a major engine issue and ended up getting a brand new engine for 100$ deductible 😊
Best advice ever for new car buyers. Kimberly is the real deal and a must follow.
Excellent video breakdown of how F&I departments work at dealerships, Kimberly. You are 100% spot on!
Never fall in love with a car at a dealer. You can find the same car somewhere else
The greatest negotiating power the consumer has is the power toi leave.
Hey Kimberly, I recognized you from car edge and am very grateful for the clear and concise information you’re sharing. I’m getting ready to buy a new yo me vehicle and there’s been so much I didn’t know before starting my binging of informative videos such as yours. Much appreciated and love from AZ :)
Excellent video. Thank you. So sad buying a car is such a battle.
Thank YOU @kenarthur6253 and yes - it's certainly can be a battle, for sure.
Just found your channel. I can't express enough how much I appreciate this video. This knowledge is really going to come in handy. I subscribed and saved this video to my VEHICLES playlist 😁
Absolutely agree Kimberly on pitting one dealer against other on cost of products. 4 months ago purchased 2023 Hyundai sonata limited CPO with cash only. The selling dealership price for a 10 year wrap VSC was $1900. They originally wanted $2900. But i used car edge vsc against them. Once i was back home in Tennessee. I purchased car in PA due to so many Hyundai dealerships near me played games with OTD price. So im F & I manger of dealership near me. He says $1700 for same VSC. Immediately call the F&I i purchased the VSC from and put him on speaker phone. After back forth got it down to $1450 from dealership i purchased. Dealership i was in only down to $1578. Yes i was well within 60 days to void. So saved $450 by using this technique. Thanks again Kimberly for all you do.🎉 Frank from TENNESSEE
❤Thank you Kimberly for educating us on financing! I'm a "BIG FAN" of your videos! Can't wait for the next one !
Thank you so much for being here! @bwolfe2022
Kimberly this is very educational. Thank you. I noticed a similar trend within Classical Cars depending on where you’re shopping.
Thank you Kimberly for sharing this valuable knowledge!!!! I have truly learned so much.
Thanks Kim and Happy New Year!! Your videos are short but to the point and I love them for that. Keep up the great work!
Thank you for being here and watching! @billeatson6190
I've gained plenty of knowledge between you and Car Edge Father/Son team......it's just trying to retain or recall it all whenever I get around to actually purchasing a new car!
put it on note cards and number them or color code them depending on the level the transaction is at...
Practice at a dealer(s) before you go to the actual dealer you want to buy from.
Thanks for sharing those FI tips. We'll all be buying a car sooner or later and need a helping hand in getting the best deal possible.
Wow I just found your channel and great advise. Thank you so much for this. Also just my opinion but the way you presented this info was perfect. I will be checking out your other videos. Thank you
THANK YOU SO MUCH. Among all the videos I've been watching this one has bridged the gap the most effectively and efficiently. You provide the timing the terminology and the rationale behind the finance manager and us as the consumer. This has honestly been one of the most valuable videos I've watched on car buying thanks to the simple but industry standard terminology being condensed into the one video.
Thank YOU so much! @makaeo8085 That means so very much to me! 🙏 I think it was my first video where I said, I realize dealership finance is far from an exciting topic but that hopefully I can simply help people understand the process and save them some money. Thank you again for being here and your kind words.
I bought an extended warranty on my last vehicle. It was around $2,700. I changed my mind about a week after signing the contract, called the finance manager and canceled. My loan was through Wells Fargo. I went onto the WF site about 10 days later, accessed my account, and it showed a credit for the amount of the rescinded EW. My loan monthly payments were a little over $300/mn. The net result is that i didn't have to make a payment of my loan for nearly a year.
Because they still made money off your loan sitting there
And you still paid the interest on the money you didn't pay over that year.
In 2017 we bought a new Chevy Impala with a base price of $36500K GM offered a flat20% discount on the vehicle. We already had a valid approved quote from Navy Federal CU at 2.69% the dealer said that it would take a week to get a check from the CU 100 miles away location they offered a 2.79% offer from Chase.(for 72 Months) WE had told the F&I person that we intended to double pay the note and be done in 3 years. We absolutely refused any of the "special coverages" that he wanted to add to the deal. we ended up cutting a check for a down payment of $6K to the dealer and paid off the car loan in 21 months! .
Excellent!! @jamesclapp6940 💪 🙌
The Chevy even last that long? 😅
ask for out the door price. pay cash, say no to extras, get the keys and drive home. best yet is get everything done over the phone, and not expose yourself to dealers tricks and waste time on their tactics
NEVER say "I'm paying cash! to a Finance Manager OR car salesman!!!
I bought a niche car where only 10,000 were sold for that model year. Because it was so unique I paid sticker price because the dealer would not have budged on the price anyway. In the finance office the guy tried to sell me on wheel protection and a extended warranty. I told him that I never buy extended warranties because if something is going to happen then it will happen during the warranty period, plus I been screwed in the past by warranty companies. I also told him that the savings of not buying an extended warranty over the last 20 years means I can afford to take a hit if I have to shell out a few thousand dollars on a repair and still be ahead. I handed over the check from the bank and it was a done deal.
Ummm 10,000 of a vehicle is a lot bro. That’s not rare and special. I have 1 vehicle that only has 500. Another one has 3000 made and 5000 on my 3rd vehicle. Not too many companies sell more than 10,000 of a vehicle. Somebody has fooled you with that number. Just think first example there were only 3000 2019 ZR1 corvettes made and it’s not considered a limited run. If your car is numbered with a plague it’s not special and even some are numbered and 2000 were made and they’re not considered special it’s just the manufacturer who tried to make it feel special to try and sell for more but it only has a sticker package that makes it different from their other exact model.
Thanks a million! I’ve been scammed many times at car dealers for lack of knowledge. 🙏🙏🙏
Excellent tips. Well delivered. Thank you!
Another useful video. Despite all I have learned from car edge and you, and the fact that the prices are finally coming down to a more sensible point, I’m still staying out of the market because I’m saving somewhere in the neighborhood of $8400 a year by not buying a car. That makes it really hard to pull the trigger.
I’m of the same mindset as you. I couldn’t agree more. I just think of all that money I got retain every month that passes by with no car payment. I then dump it into more stocks instead and smile into the next month.
I bought a 2022 C8 Corvette that I was planning to pay cash for but when I looked at my investment returns I borrowed the money at 2.9 % and left my money in the investments to continue to make capital gains and dividends. Sometimes it pays to use someone else’s money !
You lost a lot of money on that vette. Ouch
Useful video for my approaching “battle” scenario in the next couple weeks with BMW. Forwarded is forarmed.
You’re a champ in this game, appreciate this information.
I just go through the process, decline all the options. Then, circle back with my credit union which buys out the financing and I get a great rate. Currently paying just a bit more than my mortgage rate, 3% something.
I love these videos! I couldn’t give a sh!t what the finance manager hates hearing! I hate sitting in that room as they try shake me down for every useless option! My next car will be through a subscription I hope subscriptions kills the dealership! I bought a warranty for my last car. Whenever I bring my car in “it’s not under warranty” I ask for the manager & “the service manager put in the wrong code, of course it’s covered!” 🙄
I like the subscription model!
When they try to sell me an extended warranty, I tell them I buy right now when they give me a list of everything that ISN'T covered.
@@steverichdrummrdude, read what you wrote and try to make
Sense of it, because, I can’t!
What are you TRYING to say?
Great vid! Excellent info..
This was fantastic! Thank you!!
Hi Kimberly, and Happy New Year! I am a new viewer. Normally, I am a cash buyer, and fortunately have not had to buy a vehicle in almost ten years. However, I find your material fascinating and well-explained. It may still really help in the (not so near?) future when my family has to buy another vehicle. Thanks for the video!
I call the salesman with a specific vin I want to lease/buy, tell them I don’t want additional products, do not agree to meet the finance manager, provide info up front so the paperwork is ready when I get there. Get ootd pricing on the phone. If buying, I arrange financing. I usually pay leases up front - saves money. Sign papers. Need keys in hand in 30 minutes and out the door. They don’t make much money however I don’t take up much of their time. Fair trade.
I just stumbled on your channel and you lovely. Lady are an amazingly well versed woman with regard to financing autos! I am subscribing right now! God bless you.
Great vid as always. Happy 2024!
My seven things that I know are: the invoice price, dealer holdback, whether the dealer floorplans or not (almost always yes), the residuals at 36/39/48 months, the lease factor, how long the dealer has had the vehicle in inventory, and my state doc fees. I have a little folded piece of paper I consult in my pocket that they see me reading but can't see what's on it. Drives the sales people crazy. Another thing the dealer absolutely despises is when I'm walking out or terminate an e-mail exchange because of an inflated price, BS or both, I say bluntly "I can't afford this vehicle." Emphasis is not on afford but rather THIS VEHICLE! "I'm not going to waste any more of my or YOUR valuable time." What are the first words out of a dealer's mouth -- what if we could lower your payment or we have this other vehicle which is cheaper.
This is a very helpful video as my wife and I are saving to buy a vehicle
*Auto Finance Sense* New Sub, thank-you for taking the time to keep us informed. GOD Bless.
your channel is taking off babe!!!!
The best is always cash, but not everyone is in a position to do so. Best advice is to buy 1 to 3 year old - spend some time on the internet and you can find the exact car you want. The original buyer took the biggest depreciation hit. These days, dealers mark these up to about the price of new so you have to do your research which is easy today with the internet on the true market value. If you can find an individual seller vs dealer, will be way better for you. Plus, some states do not charge sales tax if you buy from an individual. Never pay for any of the add on’s they try to sell you at closing!! Repeat, NEVER! You don’t need them and it will be way cheaper to just pay for it if you damage a wheel or something. Great video and no need to be intimidated by the finance guy, they are just another car salesman and not as smart as they try to present themselves.
#7 (late mofel used) they hate it when you say "NO" to buying an "EXTENDED WARRANTY"...even though the dealership WON'T HONOR that "extended warranty"!!!
Because they get a kick back for selling that warranty! About half the price to you.
Great Report. Thank You.
Nice job, thank you.
Former f&I guy. Ya she pretty accurate. The reason we hated hearing "cash deal" is bc it destroys averages on per deal gross and product penetration. I've lost thousands of commission dollars in my previous career from cash deals lowering my monthly % on my total numbers. You can always negotiate all products. Finance managers would rather sale at low profit then take a zero on numbers
I just recently bought a car. I have bought 3 cars through Capital One. When I went in I say I will purchase a car through Capital One and no one else. They wanted me to go with someone else, they were like Get a better rate. I know Capital One and they are awesome. When I finally get to the finance manager he was trying to sell me a warranty. I got it and realize when I ask how do I use the warranty. He was hemming and hawing. He wouldn’t cancel it. I called the warranty company myself to cancel. When you already have approval from the bank and you are not desperate
Thank for your time 🙏
When I retired, I bought/ordered a new car as a retirement gift to myself. First, I sold (as always) my old car for thousands more, than the dealer would give me for it. Secondly, I am not afraid to walk out of the dealership. Third, the dealership offered a rebate, that had a requirement to finance through them. I checked the numbers and if I paid it off early I didn't get the lower price. Did my homework and put 1/3 down when I ordered it. And the last day, of the time stipulation, paid it off totally. Saved a few hundred there.
Very good video, keep it up!
Surprised to see you here with your own channel. Are you still with Car Edge? Excellent video, i always liked the car edge video's with role playing. They were fun!
Your Video was very Informative.
Wished I knew before I committed on a contrac....😮
Thanks for the pointers.
Great things to point out, but also all things that buyers wouldn't have to worry about if they were well educated and finance managers weren't crooks in disguise.
Having owned a two car lots, never had a F&I person. Wish I had one because I hated the finance part just like my customers.
Very helpful video thanks
Thank you for education
I had to cancel my plans and I had to make lots of calls in order for them to cancel. I even told them from the start I didn’t want any of them but I needed to leave so I was in a rush
Kimberly, Great info presented in a clear and concise manner. I am sure you are saving many people from making long term financial mistakes. Thanks.
That means a ton to me @johngrein3325 Thank You! It is what I hope to do 🙏
Outstanding video. Thank you. Finance manager has to compete to get your business.
Thanks for this video. It's a shame that we have to go through life assuming that every person we buy something from is conniving to rip us off. I am not sure how as a society we arrived at this state.
And it is the learning disabled and those who have bigger issues going on in their life (like a family member in the hospital, or a recent death) who get ripped off the most, because they don't have the brain power or energy to defend themselves. I agree there is always room for better ethics.
dr, wrote, _"I am not sure how as a society we arrived at this state."_
The simple answer is 'capitalism'. People often bristle when I mention this but it's pretty obvious to anyone who dares to take a careful look at the point.
Prices are arbitrary. They're based on 'what the market will bear', rather than on anything remotely related to 'how much it costs to manufacture'. When people are doing well financially, it's the legal responsibility of corporations to maximize profits for their shareholders. Let that sink in: it's their **legal responsibility** to maximize profits.
So, the car may cost the same, but if everyone's swimming in disposable income, and willing to spend it, then corporations have a *legal responsibility* to 'game' for some of that money. Not because their product or service is 'worth' it, but because they're obligated to maximize profit.
In essence, a capitalism-based economy requires -- yes, it **requires** -- infinite growth. So as long as one lives and transacts in such a society, those on the selling end of the transaction will alway be looking for ways to extract the maximum amount of profit from the buyer. If this doesn't sit well with you, I understand that feeling. It doesn't sit well with me, either. But, that's how it goes.
Let the buyer beware.
@@tmo4330 Caveat emptor
Just to add to the "phone a friend" part. Make sure you let the friend know ahead of time that you might call for advice and around what time you might be calling. Don't just cold call someone and put them on the spot when you're looking for important financial advice.
I have NEVER seen a offered "product" in the F&I office that was a true useful and fairly priced advantage to a consumer.
Here In Louisiana our roads are horrible, so the tire, wheel and key fob protection plan is well worth it when they repair or replace your tires and wheels for 5 years unlimited miles
Spot on! if you finance it just say NO to all add-ons. No matter how hard the fiance manager tries.
I’m 67 and I buy my (still under warranty) used Volvo from sellers, not dealerships. Never knew they add on junk. I use my credit union to make a $300/ mo payment.
I canceled an auto purchase from a dealership I had previously bought three new vehicles from when I found out they had marked up my buy rate. I expected the advertised top-tier rate because I had an excellent (820) credit score and they came back with a higher rate. The finance manager did a victory lap, pretending to be excited that he got me “approved“ just glossing over the fact that I had been approved for the top tier rate, and he had added on an extra 3%!
That was the sleaziest, most slimy, used car salesman BS I had ever encountered. What made it worse was that I never even imagined such deceptive practices.
I have never bought another thing from that dealership, in spite of me buying that auto brand exclusively for the past 20 years.
The first time I bought a car with my own financing secured ahead of time they pulled something similar. I agreed to let them run my credit and they came back with a “better rate.” The payment was higher than I had calculated with my already secured loan. As soon as I asked them about that, they yanked the paper work back and reworked it with my own funding. I never knew how they managed to arrive at that monthly payment.
Never have I ever heard of a 3% Mark up on the buy rate. One point or a point in a half. Maybe 2 I don’t think theirs any bank that lets you markup the rate that much. You’re playing with their money. It adds risk to the bank.
@@charlescuthbertson709 Honestly, it seems like it was more… but I do not remember the exact amount. What I do remember was them displaying a good APR for those with excellent credit, me having excellent credit, and them coming back in the room proud of themself that they got me approved, albeit at a higher rate reserved for those with ok credit. It didn’t add up so I immediately did some digging, and when I found that I had indeed been approved for the best rate and that they had lied and tacked on an additional percentage, I was livid. I walked out and never returned.
@@snowcrash4286they are car salesmen… they aren’t the brightest hunch. They only know sleezebag math. I make it a game with those bozos.
I made a deal on a Toyota once with the salesman. It was tough negotiating but we agreed and I told him that the agreed to price was every penny that I was going to leave in his dealership and I wouldn't even buy a Coke out of his vending machine and that he had better tell his finance guy that because if he starts dicking around I would walk.
Well the finance guy did try slipping something in and I got up from his desk and walked out and never went back.
He killed the deal because he thought he was so smart that he could slip one by me.
No. No sale.
I don’t say cash,I tell them “ What do you think?,and then just play around with them for a little before i say yes.
Excellent information and presentation!
Thank You @natecurrier That means the world to me! 🙏
Great job very educational good advice 😊❤
I normally lease my vehicles & GAP is automatically included. Dealers not make to much on leases. Only downfall no more $0 down $199 lease deals on Civic, Corolla etc. like they use to have & you need to put hefty down payment to get that price & not worth it.
Do your homework. Walk in the door and make an offer. No matter what they say, walk out. They will either chase you down or watch you walk away. There are 5000 dealerships.
Solid info, and that comes from me being in the automotive retail industry for over 45 years. What I do, with dealers I am friendly with, is let them know I cam able to pay cash, but will agreed to finance. But in 120 days I will be paaying the note off in full. Then, I get the name and address of my finance company, and the account # of my loan. I pay off all but a litle more than three payments of the balance before I even get my first payment statement, so I am not paying interest on anything other than maybe a few hundred dollars. Then for the first three payments I pay the regular amount due, which will leave off the remaining balance. And for the fourth payment I pay off the balance. The interest $ I am charged is minimal, the dealer gets his finance reserve, and the F&I rep get whatever commission with no walk backs. The folks know I understand the game,a nd am eating a few dollars in interest in trying to keep their game in play. My approach sets a nice tone with these folks, but for the credit company likely not so much.
Excellent, excellent, excellent!
I've been to 2 dealerships that will not sell a car unless it is financed through them. They don't care if you have a sack full of cash in hand. They insist on creating a loan.
Let them do the loan and then pay it off immediately. Just be sure to verify there isn't a pre-payment penalty in the paperwork you sign.
Run away.
I've found in the past (I always lease my vehicles, since 2001) that dealers add "port installed" options like mud guards and roof racks that I don't want and when I tell them I won't pay for it, they say you have to, it's on the car already. I'll be more aggressive when I order my 2024 crossover, as unlike 2021 (pandemic), I will have a choice of vehicles and manufacturers this time! Also, my husband always accompanies me to the dealership; he's a CFO and has a MBA in Accounting and Finance, so I trust his knowledge and math skills. He can also add big numbers in his head and works with multi-million dollar budgets, so he knows a thing or two about wasteful costs and bloated profits.
In the southeast, certain dealers are adding options at the port so they go on to the monroney label (sticker) on their lot. It's sneaky!! Sounds like you're on the right track 👍
"When I tell them I won't pay for it, they say you have to, it's on the car already."
If you fall for that line, you lost the negotiation. You don't HAVE to pay for any of their dealer add on crap. The "it's already on the car" thing might be true in some cases, but it's a negotiation tactic all the same.
I have told a Porsche dealership that I won't buy the car at all unless they take off the stupid "anti-theft" device they added. They wanted $1200 for it, and of course the car already has a factory alarm. I'm pretty damn sure an installation tech comes around to their dealership on a weekly basis, puts one on every car they have on the lot, and charges them $45 each. I made them call the tech, make a special trip to the dealership, and remove it in my presence. It was under the hood and simply unplugged...no wires cut. Also declined all the other crap they tried to push.
I have told a Honda dealership that I won't buy the wheel lug locks, and in fact I won't buy the car with them in place. They argued they had already spent $380 adding them to the car. I walked back to their parts department and found out a set of them was $19. They put the standard issue lug nuts back on in my presence and it took them six minutes. $380 my ass. Also declined all the other crap they tried to push. One of the items was pen stripes, which they said were hand painted by a specialist. Really? The exact same stripes are on the car pictured on the Honda USA website, and they are clearly stickers that are under the factory clear coat. They wanted $250 for those. $250 my ass. They didn't even do anything for those except make up their pen stripe paint specialist story.
I've been doing this for years. Never owning less than eight cars at any one time, and NEVER pay for ANY of that crap. Yeah, it's an annoying negotiation fight, but it's worth it. Actually I've gotten used to it, and it's kinda fun to see what bullshit argument they'll come up with next to support the outrageous prices they ask for those things.
It's best not to bring any of this up until after you've spent a couple hours at the dealership. Test driving, making the salesman tell you all about the car, letting them bring you cokes or whatever. Don't bring it up until the final moments of negotiations. This way they've invested a fair amount of time on you and got their hopes up. And if they let you walk out it's all wasted.
Don't buy a product if you're not 100% certain you want it.
I had a situation where I bought a warranty because I was exhausted and wanted to get out of the finance office, and I could not get the F&I guy to return my call. Eventually I had to call the warranty company to cancel.
Always go to your local credit union first. Most will let you just join these days. Then you show up with the deal from your credit union, and unless they offer an amazing deal from their lenders, you tell them you'll be back with the check tomorrow, and have the car ready.
can you talk about the 4-way sheet? and how evil it is.
Thanks
COOP
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Good stuff!
Car Edge is a business model to sell prenegotiated deals at a profit, as well as finance products. Zack understands how social media can influence people.
That is why he pushes all that stuff so hard. Ray knows the money is made in the F&I office, so Zach is trying to be the F&I office without having to sell cars. At best, most of these products are about covering up that people are massively upside down and overleveraged in the car loan. The rest are just flat-out scams.
I have more of a problem that Zachs dad used to be a car sales manager and have probably pulled the same tricks on others. Now that he's done, he's telling us some of the tricks.
@@fried_nice Whats wrong with that? I'd rather they snitch on the industry than continue to support sheisters.
@BDBD16 the problem is that now that he's had his fill he's now using the knowledge to help monetize what he can for his son. To each their own. I'll get my info elsewhere but you do what makes you happy sir.
The homework guy is my go-to!