5 Things You Should NEVER Say | Car Dealers LOVE When you Make THESE MISTAKES
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- Äas pĆidĂĄn 15. 07. 2022
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Ray Shefska shared 5 things you should NEVER say to a car dealer if you want to save money and get a good deal. This advice is especially useful in today's market with car prices going through the roof. - ZĂĄbava
1. Never tell them what you want your monthly payment to be
2. During test drive, never say âI really love this vehicleâ keep emotions to yourself
3. Never tell dealer you are in desperate need of a vehicle, regardless of your situation
4. Never tell a dealer that this is the only make/model you are interested in
5. Never tell them how long you are willing to make payments. Keep payments in the 4-5 year range. Never longer than 72-monthâs
BONUS
6. Never say I have no idea what my trade-in is worth
Youâre welcome YT. :-)
Thanks for that. All these points are made moot, if you know what the car should cost and refuse to pay more than that. You aren't trapped at the dealership. How about "never buy a car on the first visit". Always leave the dealership and let them call you back with a lower price. It reminds me of people who feel pressured to buy timeshares, like your life is in danger if you don't buy.
Always walk out, at first, even if you love it. Always be willing to walk away.
That's crazy, cause those are the exact questions I was gonna ask the dealer đ©đđ€Ł
Poker face
Thank you for this list. I often struggle with the first one concerning the monthly payment. It seems to me that at some point they would have to realize what monthly payment you are seeking. Because if they quote a price for the vehicle, I would have to ask what the monthly payment on that would be and if it is higher than what I want to pay I would have to say "no can you do better?" It seems like it would go back and forth like that until I am down to the monthly payment that I am comfortable with. Or at some point the dealer would just stop and say "well how much of a monthly payment are you willing to pay?" So how do you get around all of that is my question?
I had a dealer try and play that old school game of what do you want your payment to be. I told him $2 a month for 48 months with no down payment. He said that's ridiculous which I replied so was that question you asked me, I've asked you several times what's the OTD price. Eventually walked out!
As a car salesman I love people like you who arenât easy manipulated and I couldnât sell cars as good as the other salesman because I was 100% truthful with everyone
My wife and I did that with a full size Chevy conversion van that was sitting on a lot. We loved the van because it had the surround sound with video game jacks, DVD player and converted to a bed in the back and since we had 4 kids it would have been perfect for us, but we knew that we could not afford it. We seen it on the lot and it never sold, so we went in and were looking at it in the spring. The salesman came out and started talking to us about how "This just came in and it won't last long" we laughed and said nice try. You have had this on your lot since last September. So we told him what we were willing to put down and pay and he came back and said that would be impossible. I responded "I know, but you will be sitting on this thing for months to come because not many people want these vehicles any more, this is what I will pay a month for 4 years and that is it, you have my number, call me when you come to that realization." Two weeks later the phone rings, they came down to our offer. That was in 2004. Now 180,000 miles later one of my once little kids at the time took ownership of the van and drives it today. Leaving your phone number and walking out the door is quite effective.
I did exactly that once. I told him âI'm not looking for any payment, I came for you to give me the vehicle. I'm looking at the prices, with the price I know how much I'm going to pay because I know the routineâ The seller was clearly very upset with me.
@@g.k.1669 how about this. I had a customer do that to me one time..told me to call them when we feel like making a deal. My manager told them not to wait for our call because the deal won't get any better. Needless to say, he never called and they came back to take the deal. Sometimes there isn't a better deal and you just make yourself look like an asshole
@@DF-dd1km Or you make yourself look like a shrewd customer that knows what they want to spend and don't want to be like so many tools out there that purchase more than they can afford and end up hating the vehicle or getting it repossessed by the bank.
Iâm 22 and this is my first time ever buying a car. This video helps a lot. As a young woman that doesnât know but about cars, I know Iâm a great target for care salesman.
Learn a little about car maintenance and repairs to avoid getting ripped off by shops. There are a lot of good mechanics out there who wonât rip you off but there are a lot who will too. Learning about the car you have in particular isnât too hard. Just knowing about it not doing it can help.
Also young female here. If you have a trade in get the value before you go. I was 25 at the time and had to walk away from a deal once because they offered me $13k for my trade in then $15k and wouldnât go above that and they said Iâd never get above that. Went to a different dealer and got $21k for it on the first offer.
No offense but you should get a guy such as your brother, father, or friend to go in with you. It changes the dynamic and they won't try that same stuff on you. It's just how it is.
@@ivand0007 yeah I had my friends that was a guy and my boyfriend to go with me when I was buying
@@Sayali312how did it go, did u get a good deal?
My wife and I play "good cop bad cop" with the dealers. I'm always excited and agreeable with everything the dealer says while she is grumpy and argumentative and unhappy with everything. She's always "checking accounts on her phone" and then says something like "We can't afford that one. NEXT!"
It drive them nuts.
That's hilarious. I bet you've saved thousands with this routine.
How often are you two in dealerships giving dealers headaches?
I used to do that when buying guitars. I would only have so much money in my pocket and would ask her for more if needed.....then she would say that we have a long drive home and need to keep some money for gas.
I call my husband Jack ! He would trade our house for magic beans đŹ
Thanks for the tip, I might have to do this myself this week.
Never walk in and say "I am paying cash" up front.
As a car salesman at a dealership, If the dealership doesnât give out their prices walk out immediately and never look back. I had so many people cuss me out and walk out because we would get them in and fill out all the paperwork and once we hit them with the total price of the vehicle plus tax and title they would be pissed off rightfully so. Test drives as well you shouldnât have to bring your birth certificate and social security just to test drive a vehicle if they donât allow test drives without all the extra paperwork then walk out as well.
It is amazing how these tactics work on so many people. Never disclose your buying position. Leave the salesman guessing at all times. And always require the drive out price on a detailed invoice.
@@es2056 I am starting to keep them in the dark very well myself, specially last 2 cars I bought. IDK, maybe I am driving them nuts on it. Had a few of them call me back now. And went to 8 or 9 dealerships now. In my younger days I got screwed twice but not all my fault but will take to long to explain. Then other cars or trucks I had bought from family members. But last 2 other cars also bought at a dealership wished I done a little better, but I didn't get screwed over to bad, compared in my younger days.
How about one on how to ask a dealership how the hell they can ask the same price for a used vehicle that a new one is going for.
That's actually the buyers fault, people want it more than the value of it. New car shortage makes used cars prime value.
đŻđŻđđ
That's called the "free market". Nobody is holding a gun to anyone's head to buy the car.
Nobody ever taught you about Supply and Demand?
Because they can, if you want the car, you pay the price.
As someone who doesnât play social games, I had no issue being completely honest and upfront about my entire situation, how I felt, and what I wanted/could afford. The distinction is that by not playing the game, I feel no obligation to do anything I donât wish to do. I can say what i want, and I can say no. Whatever they say has no real influence on my final decision.
Isn't it really sad that this industry is so riddled with a group of folks that try to manipulate the buyer to maximize their profits based on how they can take advantage of the folks that are not as swift with the art of wheeling and dealing! . I love this channel I have learned so much.
If YOU do a little research youâll find buying a car can be fun.
When you come in with a chip on your shoulder or you donât give any info the sales staff can only go thru their process
It is, truth is other industries just do it behind closed doors..
@@glenking6418 I was a soldier for 20+ years and I would see the youngest and more nieve soldiers come back with extreme debt that would contribute to trashing their career with a repossession. I understand the nature of the business. I guess thats the way the cookie crumbles/caveat emptor...
@@slimj82 Agreed... just like if your HVAC goes bad.. get ready to get sent to the clearners.
Itâs called capitalism. Negotiation
I always answer the salesperson with âI want my monthly payment to be zero, make it happen..â. They often get put off with this and I normally respond with âwell u askedâ.
@@pnw3856 thanks for the advice but I do my research and know what Iâm doing. Iâm not a payment shopper. The last new vehicle I purchased before this shortage disaster I was well into holdback and I didnât discuss monthly payments, but the price of the car.
I found this funny and exactly something i would sayđ . Like when customer service people ask me if theres anything else they can help me with...
I often reply with
If you have a secret money tree in your back yard that ypu could send me a seed or ten from id appreciate it. They laugh. Call ends. Everyones happy.
@@pnw3856 wrong. I've bought 8 new vehicles this way. There is no 'process' unless you submit to one. Make your offer, if they accept, great, if not, walk.
I will go a little higher and tell the sales person I would like a payment of $100
We should all just be able to order direct from car manufacturers, forget the 100 middle men
Thanks YAA! I went to test drive some cars today and watched recent videos from yâall about tips and tricks. First thing he asked was the price range I was in before even asking me which car I was interested in. Smh! Never told them how much I loved it and even told them I was going to check out their competitors. He ended up saying âif Iâm able to get this down to a good price, you think youâll go home with it?â And I told him to hold off until I went to check out other cars lol. Thanks YAA.
Good advice whether buying a car, a home or a refrigerator/(whatever). Giving out "free" information doesn't help a buyer. If you want to give out any information, make it things like "This car is slower than I thought it would be." "I'm not in love with it." "I think I need to keep looking unless this would be a fantastic deal." Etc.
Nailed it. This is how I finesse people. đ
Good stuff.
I've always intended to pay cash (I don't tell them that), but trying to get a dealer to commit to an OTD number is so tough. Usually ends with me walking out and just buying private.
I can say all of these things and still control the negotiations, including my trade-in. This is good advice for folks who arenât strong negotiators and/or donât do their research.
Number 2. I went for a test drive in a 2004 Miata. I've never driven a 'sporty' car before. Let alone a Miata. On the test drive I drove it through a tight turn at a speed that my daily driver wouldn't have done. I tried but, there was no hiding the fact that I LOVED that car. I did the other 4 things right so I ended up paying a price that was within my budget. (But, I still probably paid more than I should have.) That was 4 years ago. I still love that car !
We need a video breaking down the math of how much a car is being sold for (sticker price?), how much it's really worth, but also how much the dealership makes, and how much the car salesman makes on the sale?
I am doing the same myself. In fact just did a small refreshment on my math for this. Came back to me real fast.
@@airbornesoldieramerica7125 Break it down for us!
@@CuriousAndCuriouser1865 Not great with computers but will try to explain it. But I only figured out how to add 1% or 2% or 3% to dealer invoice price. Take the number like example $5,353.97 for car or truck to your wish list. Then take the decimal and move 2 places to the left. That is $53.53. Then if your asking 4% Higher then the dealership invoice price then multiply $53.53 x 4 =$214.12 then add the $5,353.97=$5,568.09 for that car or truck your buying. So should not pay no more then $5,568.09 for that car or truck.
Great. How about an âAlways Sayâ segment - esp. at a used car dealership.
Also: what about buying direct from previous owner? Keep up the great work.
I absolutely love this channel. Thnx for all of your knowledge that you so graciously share with the common person. đ
These mistakes can apply to a lot more than just auto sales! Great video guys.
And the one thing you SHOULD say right now isâŠ..Iâm not paying a market adjustment đ
Big facts
Are price stickers of the manufacturers cost even on the car in todayâs time?
@@BlazingSword no the cost will always be slightly below maybe by 5 grand if not more. That's why back them there was room to negotiate understicker and they would get it back via backend financing and rebates
Yes, and (unfortunately) most will say goodbye. At this time they know they can easily sell the vehicle for someone who will pay the market adjustment. Just a fact the dealers at this time have the power. Hopefully that is changing.
@@BlazingSword Of course they are, it is the law.
Great father-son relationship! Very knowledgeable info! Keep up the awesome work!
Lots of great info in this video. Wish I had seen it before car shopping, but thankfully I made none of these mistakes! Yay!!!
I LOVE YOU GUYS! Thanks for sharing your car buying tips and for your website.
Crash course for someone who didn't watch any of your other videos! EXCELLENT advice in 7 minutes! BRAVO Ray !
Thank you so much John. We're trying my friend. All the best, Ray
Great advice. Always get a loan preapproved before going to a dealer.
We love your channel! We are in the market for a truck and your advice is sooo helpful.
I was clueless to much of these you listed. Thank you!
My dad was the one who did the car buying in our family. He passed in 2020 and mom successfully (?) bought a newer car shortly after and sold her car to a family friend. She did do the "I'm not paying more than ____" in monthly payments. I'm planning to buy a newer (2016-2020) car next year and your tips will help me feel more confident about doing it myself. I may consider asking my honorary uncle to go with me. He is a four star general (retired), so that would probably shut down any riff raff from car salesperson.
Great tips. I absolutely fell for number 1 when buying my wife's car. I don't plan for falling for it again when I get mine.
Love all your videos. Thank you for sharing
THANK YOU FOR VALUABLE INFO CUZ THEY TAKE ADVANTAGE OF US
One needs to be prepared when walking into the dealership. In this day and age with so much information available about vehicles and their cost on the internet, only a fool goes in unprepared.
In addition to saying to the sales person you'll look at or buy a different brand car. You can also say, I want this brand and model with these options for this price. If you can't do that for me - then I'll find a dealership that will. No salesperson wants to lose a sale.
Enjoy your channel. Keep up the good work guys.
Also ask if there's a penalty for making additional payments towards the principal value of the car. This helps pay thr car faster if you start getting extra disposable income while you're paying off car. Some dealer loan offers penalize you for paying extra towards the car cuz they want to make money on the interest!
Thanks guys. Great information as always!đ
Thank You for this great advice!
I always tell the sales person I want my payment to be $0.
@Happy C perfect!
Howâs that going for you? Genuinely curious
@@Eshine21 I've used it jokingly, gets a good laugh out of the sales guy. It's a good way to establish that you aren't interested in the monthly payment (making you seem like an informed, affluent customer), which means they can get into the details of the OTD price.
It's true, always be willing to walk away. I did, got a call from them the next day and they said "name your price." I did, and got exactly what *I wanted it for*, best deal around.
When was that? In 2007?
Bhwahahaha! I was thinking the same!
@@gherasimtibi could have been 2008 lol
@@gherasimtibiđđđđđ
Good info Thanks for sharing!
Excellent information. Thank you gentlemen.
I was so glad I watched these videos before signed my recent loan. Number 1. I got financing through my local credit union as a bargaining chip. Number 2. I flat out rejected there âBumper to Bumperâ waranty. Ended up with a brand new Hyundai Elantra for a couple hundred less than msrp and ~4.0 % at 72 months. You guys are doing an awesome thing!
Why reject the bumper to bumper warranty?
@@planetside718 One reason is, when you pay all that extra money, it's really easy for the dealer to deny a claim just by saying, "Oh, that's not covered, or you didn't maintain it, or you didn't do this" etc.
@gearsofwar3xXx okay were talking about the extended (paid) warranty now right? I could see your point for that case.
Also Gears' 1 was my game for like 5-6 years lol
How were you able to get less then MSRP price? I am still new to the channel
Bro you bought a Hyundai you will most certainly regret not getting that warranty
I really love these guys! Iâm starting to shop around for a car and I am absorbing everyone of their videos I can before I do so! Thank you guys so much!
Know 3 things; a Budget, a Term length, a APR.
And donât let emotions handle you.
Also, IF you buy used, look for dealership selling a brand that isnât their own. They usually have bigger markups so you can talk them down more.
@@chaselesser3191 That's good advice. I bought my used Hyundai from a Chevy dealership. They came down over $1500 of the price they initially stated. Granted, my brother in law was there helping me, as he was previously a car salesman. But I wouldn't have known this. I'm sure the dealership still profited just fine, but it saved me a ton!
Iâm shopping around for an used car initially it was 33000 I told them Iâm not in a hurry and I have all the time of the world to shop for the best deal Yesterday I received. A call from them telling me that the price came down to 31,500.00
They came down more after I test drove and I told them I wasnât sure if I liked it they called me and lowered the price to 30000 so i bought it .
Message me for real advice. This list is just going to make you appear standoffish and ensure that you'll never get good service and you CERTAINLY won't get a good deal.
It's bizarre that ppl seem to think going in and not working with people ends with you getting a good deal. It doesn't.
This is so helpful đ Thank you đ
Yall are absolutely killin it!!!
Great advice, but much of it doesn't apply right now since so many dealers have almost zero inventory and people are having to order vehicles without even test driving. And in most markets having to pay MSRP minimum, usually more, and no negotiation since they'll be able to sell the car in a day or two if you don't buy it. I was lucky to get an SUV for my wife from a dealer that had 3 in stock, the last model year 2021's they were going to get before they got their first couple 2022's delivered later that month. But they had to "trade" with another dealership in a neighboring town in order to get the color and options we wanted. Took a couple weeks but we got it and still got below MSRP due to a couple loyalty and Model Year End discounts.
Did you pay cash for it? Or did you get financing? If financing, how did that go? With the dealer or your bank?
Love this video! Can you make another one for leasing or is it the same process?
Thank you for educating us prospective buyers.
GREAT advice! Thanks guys!
Great Video! The only mistake I made during test driving this past weekend was #3, telling him that current car was having transmission issues. However, I also told him I wasn't buying that day either. Got out of the test drive vehicle, told him thank you, and that I will be thinking on all the cars that I had driving that day.
Me too, exactly the same situation as you. They NEED to SELL a car more than I NEED to BUY a car. My mom just moved to another state, so I am driving hers. I let them know that I am in no hurry.
Only mistake I made told some of these dealerships I was paying cash. But not a big deal for me, cause there are many other dealerships in my area that I have not been to yet so will not make the same mistake. But hope you had good luck to get your transmission fixed.
â@@airbornesoldieramerica7125 yes, the transmission finally was fixed. Had planned to sell it but after thinking on it some more, decided to keep it as a backup. Like you,, I was paying cash and didn't really need it for trade in. Having to depend on friends, rentals and uber for over a month for transportation made me realize the benefits of having a 2nd vehicle.
Over 20 years in the business, I never ask what payment someone wants .. .. .. these are 'OLD SCHOOL' tactics by DESPERATE stores.
You guys put out some real helpful information! Thank you!!
Great video. Thank you!
Big problem with number two. Nowadays you wonât find anything worth your money on the lot, so youâll have to order. And when you order youâll need to wait months, if not years in some cases. How can they not know youâre in love with the car if youâre willing to go through that?
I am shopping for a 2023 elantra and there are many available. I still need to test drive.
Good video and very good advice. ESPECIALLY the one about never telling them "I have no idea what my trade is worth". It takes about ten minutes of online researching to get a very close to accurate dollar amount of what your vehicle is valued at, and you need to know this. I've used all of these techniques, so to speak, and for the most part they've served me well. Great job guys, as usual.
How do u know what its worth to them? If Kelly blue book says it's worth $6000, how much should the dealer accept
Is it better to try to negotiate the trade in value or just sell your car to carmax, carvana etc and then use that as the down payment?
Love the info that you give. I'm looking for a used truck as we speak
Thanks for the great info.
Life is funny. I see this video today when literally two days ago I made a handful of these mistakes. I overpaid. Lesson learned. At least I found this channel so next time, I'll be prepared. Subscribed.
These are all common sense tips, however it is not always easy to practice them when confronted with a skilled salesperson. They are trained to endear themselves to you, to draw you out, get you talking ... and our innate sense of politeness prevents us from refusing to answer, from being evasive or being taciturn during the interaction. They capitalize on this.
It's a great video, and these are all things one should keep firmly in mind when talking to any salesperson.
Bro it doesn't make sense to not tell people your price range. Who does that help? There's nothing wrong with sharing this info, it actually helps people who do this every day narrow your options down.
Do you know how many ppl come in and tell me they want a truck for 200/month? The answer is easy - there are none. You dont need to spend all day test driving trucks "getting the numbers and negotiating".
@@scotthuxtable4373 - Sure thing. Because buyers are concerned about YOUR perspective as a seller. lol
@MasonDixonPhotography as a buyer you should be concerned about not wasting your own time and getting yourself a good deal. If a seller is willing to give you tips on how to save time and money - you'd be silly to not care about my perspective. Maybe you don't value your own time or money.
The whole idea that you're going to walk into a dealership and play hardball and get yourself a deal is hillarious. We literally see these guys all the time and they get bent over.
@@scotthuxtable4373 If I am taking to a salesperson, I want to be given information, not have it elicited from me. I am not interested in being milked for my maximum budget or haggling. Just tell me the price or don't waste my time.
If you think it's still a seller's market, give it 15 minutes.
Have a good day.
Outstanding video fellas! Keep up the good work, this is some very valuable information đ
I took a Ford Explorer for a test drive at one of the local Ford dealerships. I had my 2 young sons with me in the back seat. I told the salesman I didn't like the feel of the Explorer. He obviously wasn't paying attention because he said, "Yeah, these are great vehicles." I was obviously irritated with him and I pulled over and got out of the car and asked him to drive back to the dealership because I was not interested in driving it any more.
I text drove a Car today and he said I can only drive around the parking lot, weâll the whole time I was on the break, like how can you text drive a car in a parking lot.
I would like to add the regarding how long the repayments will take, make sure that the car will still be in warranty
until you have paid for it.
Some brands have short or restricted warranties, and cost a fortune to repair.
German brands are bad for this, and are mean when it comes to making a contribution to any repairs that are needed
just after the warranty has expired.
In The UK Toyota have introduced a crafty way of making you pay for these repairs, the car has to be main dealer serviced
at very high prices to keep it under warranty after the factory one has expired.
Since most working people won't be able to afford new cars soon, most of this won't apply.
Wrong. A car is an expense. If the car costs $50,000 it costs $50,000 regardless of how long the period of the auto loan. The only difference is the interest which has no impact on the cost of repairs.
And seriously, if you from the UK you know German brands are far less likely to have costly repairs than those English brands.
@@scottr2706 Mercedes repairs in the US can be very expensive.
Great information thanks for sharing.
The part of the deal where Sr. says that you're interested in looking at other brands is very important, great point!
1. Do not reveal your monthly payment budget
2. Do not express your love for the vehicle during test drive
3. Do not say their make and model is the only one you are interested in
4. Do not say you donât care of length of financing (Do not leave term open-ended)
5. Do not say you donât have no idea how much your trade-in is worth. Do research first
I've always heard that using a trade in is usually not in favor of the buyer and you'd be better off selling it independently. Do you have a video on how to make sure you're not being swindled after a $ amount is agreed upon for my trade in?
Selling privately is not necessarily the best move. In most states when you trade the vehicle you get a sales tax savings on the purchase of the new vehicle. If, for example, the trade value is $10,000 and the sales tax is 6 percent the savings is $600.
your video's are awesome! Keep up the great work!
Thank you so much needed information
I disagree about telling them when you have to get a car. I say just the opposite. I tell them I am buying a car either today or tomorrow and that I am looking at several dealers. Let's them know not to let an almost sure sale go. Will make them want to work with me more.
Them boys gonna waste your time, take long and make you stew
I agree
It depends on how you present it. It can be a good idea to make it clear you are serious about buying the car soon. But that doesn't mean you let them know that you _have_ to buy the car. And you definitely don't want to let them waste your time with the bogus "wait here, I need to go talk to my manager about the price" routine. If they try that, just give them your mobile # and tell them to text you when they figure out what the price actually is (or if you don't want them to have the #, just tell them you'll call back in an hour), and that you're going to head over to the next dealer to keep looking at other cars.
@@sarutobi43 Dude, you need to be willing to walk. If not, they WILL let you stew.
Also, some dealers will spy on you with a microphone when they are "talking to their manager." I noticed this when I bought my last car.
If the car buyer knows this is happening, it can be great for the car buyer. Just state to your spouse or other participant what you want the sales manager to hear. Control the process.
@@scottr2706 We were talking about leaving to get lunch while he was away. That seemed to get him back pretty quick.
Great info!
Great video !!! I went in for a 2022 Tacoma SR5 double cab and gave my OTD price. I got it within the hour. Done deal.
Whatâs the dialogue sound like?
Had Carmax and Carvana cash offers in hand when I went to buy the car I really wanted from the dealer that had one local. Even after the salesperson agreed to match the trade, the manager came over and tried to offer $400 less. $400 really wasn't much compared to the total trade but I told "it's worth even less than $400 for me to bring this Benz over to Carmax and come back with a check". Suddenly I had my trade in writing.
If your trade was worth lets say $15,000, and your tax rate was 6%, you lost $500 by electing to sell elsewhere instead of reaping in the tax savings, but yea, you "saved" $400
@@getxzootedimo9992 There are a few states where it doesnât work this way.
I can't wait until dealers are obsolete
This is amazing stuff. Thank you
very helpful.. thanks
Yesterday I dropped off my Highlander at the dealership for some maintenance and took their shuttle back to work. I chatted with the shuttle driver and he told me most customers that walk into the dealership don't haggle, they just come in and say "I want it" and sign on the dotted line.
Some people have it like that. Seven figures in the bank, $20,000 a month income, house is paid off. Theyâre time is worth more than saving $1500 and spending 6 hours at a dealership
#1 Never let them know youâre paying âcash.â ->Lead to believe youâre interested in hearing about financing, but require the out the door price prior to that point. After meeting with the finance guy, look at interest total and then say, I may just buy outright instead
As a former finance guy, I would say write your check payable to....Whether you pay cash or finance determines nothing. You just wasted 10 or 15 minutes of your time and mine.
I've negotiated many deals, these are ALL GREAT TIPS!!!
You two have the best advice!
If they ask you "What's your 'ideal' monthly payment?". Just say $0.
thats stupid to say, as they now think your not going to finance. Always finance. Even if you are going to pay it off in a month. if there are any issues with the title, the bank will go after them.
@@bindingcurve I can't believe I have to say this. But, that was just a joke. Besides, when someone asks you how much are you willing to pay for something and you say $0, that implies you want it for FREE. Again, it was just a joke.
Best advice I got was, like a bid, write down all the model, color, options and packages you want and submit it to several dealers within driving distance you are willing to go. The dealers will compete with each other for your business and you can lock your price down before stepping foot on the lot. Bonus points for being pre approved by your bank and already knowing what your insurance premiums will be.
That being said, for the last 3 car purchases I have ordered direct from the factory. Some car manufacturers make this easier than others. For example I could only order a honda direct once a quarter so the wait times were long but I got a custom ridgeline to my requirements.
This is great advice thank you đđŸ
So you're the guy that bought a ridgeline? Almost as ugly as the Chevy avalanche. Ugh.
Facts! I am 2/2 with that method. I even forward them the OTD quotes from their competition and ask âCan you beat this OTD price?â And Bam! After a few yays & nays, I eventually get what I want. Atlanta is very competitive place for car salesmen.
So if you have good credit or have been pre-approved already, you are winning!
When I bought my 4Runner I stapled every business card from every dealership I visited onto the brochure. Some of the business cards even had the out the door price written on them (which I never shared). When a salesman saw all the business cards they thought "Holy crap, this guy negotiates for fun" and were more straight with me.
@@blabla9845 'more straight with you' Are you saying they were still a little 'wink, wink?'
Great stuff, guys!
Thanks for the trade in tip!
Get pre-approved for a loan preferably used car with specific mileage range. The bank officer will tell you the value of the car not your emotions. Walk into dealership with your price. You need an immediate yes or no. Only after agreement, test drive car. Saves hours đ
What is a loan with a specific mileage range? Auto loans are based on the vehicles value not mileage. Mileage is one part of the vehicles value.
@@scottr2706 I may answer your question in a future live show. Normally I do tech related but I will sneak yours in đ
People make the mistake of thinking that they need to be friends with the salesman. It reminds me of the King of the Hill episode where Hank says his buddy at the dealership doesnât charge him a penny over sticker
Great info, thanks!
Great points on buying your next vehicle.
I keep thinking I need to become a car broker lol watching your videos are very empowering. I'm gonna walk away from a deal I have currently being negotiated. I'll keep my truck for another year and look around in between so I know more about the salespersonđ Thanks guys!
Do it Wendy! Plenty of people would benefit from that service!
@@CarEdge I wouldn't even know where to start!
Watching you guys wants me to go car shopping just to see what else can be dredged up.
Very helpful video.
Love you guys....great advice and it's time to turn the tables.
Never tell the dealer that you're paying cash. Negotiate the deal get the financing and then just pay it off .make sure there's no prepayment penalty
Wouldn't you be paying interest with those car payments tho? Paying out right (cash only) you wouldn't be paying the interest, right?
@@neetrab No because you would be paying it off in full within 30 days. Dealers make money from the bank for financing.
If I were to rewind to when I got my first car I would be so embarrassed because I broke so many of these rules. 10 years later, round 2 is about to be nuts
Right!I kind of feel sorry the the dealer I'm about to handle!
Thanks this give me a lot of advantage going into a dealership
Love this video. Id like to see a video on necessary fees and add-ons
You missed a big one: never tell them "I'm paying cash". You lose all your leverage in the deal. You are telling them upfront that they're not going to squeeze you on financing, so they will play hardball on the selling price.
That really doesn't matter, just come in with an OTD price, your credit in good standing, that's all you need. If they dont budge at all, just leave to the next dealership. Its not something that needs to be stressful, and dealerships will always take a quick and easy sell
@@xreed8 What is the OTD price?
Prior to Covid, when buying new vehicles, the most cost-effective solution is to find dealership within the car brand you're interested in to see if they will apply corporate or club discounts to the pricing. Costco is well-known, but Audi, BMW, MB, etc., have enthusiasts club memberships which can provide pricing close-to or at invoice. GM, Ford, Fiat-Chrysler, and Nissan/Infiniti have employee & contractor programs, too.
lmfao you know you can get a better deal by not going through Costco? It almost a worse deal. 99% of dealers sell their cars below invoice, Costco is invoice pricing. Costco just gives you guaranteed pricing and eliminates negotiating. However, you can still get a better deal
@@DF-dd1km How?
@@DF-dd1km You are full of it.
thank you for the video
Tell them you only want to pay for what the price is on the sticker on the vehicle or you'll walk away!!
The last time I bought a car my wife was with me and pestering me about the car she liked at a different dealership. Eventually she and the salesman started dealing directly. She is from the Philippines and really enjoys haggling and loves to argue. The salesman was just about in tears by the time we left.
The best part is that after all the arguments about price and options, at the last minute I gave told them I was using my own bank and wasnât interested in their financing at all. The salesman was not happy about that for some reason.
The salesman was in tears, tears of happiness, as he is astonished on how much money he is making on the deal and how much you are getting screwed.
sometimes it's worth getting the dealer financing as it gives you more haggle room, but then just go ahead and refinance as soon as you leave. Just make sure there's no clause in the contract prohibiting you from doing that. Finance managers hate that because that big commission they got on the financing comes back out of their next commission check.
@@pkdude5334 a couple months ago I was at a Hyundai dealership looking at cars. I wasnât planning on buying but mostly just killing time while my wife was shopping. The salesman told me that their current policy was they would only sell a car if it was financed through Hyundai credit, and you had to agree to a certain number of payments before you were able to refinance or payoff the car. They have lost their minds!
Lol
@@pkdude5334 bingo people think there so smart going to there own bank. When in reality there giving the dealer less room to move on the price. The dealer can make a lot of profit just off the financing and like youâre saying if you can beat the interest rate just re finance at youâre local bank. I sold a new yanko corvette once and we made over 8k in the finance reserve(what the bank paid us for sending them the deal) thatâs 8k more we can move on price. If I was the sales manager I assure you that youâre not getting my best deal financing thru youâre own bank.