@@AnonymousDub So why not fiance to get a lower price on the vehicle. Then pay it off. I know honda fiance in the past would give a rebate of a 1000 bucks on a vehicle. So the dealer would reduce the price by a 1000. So fiance it and then pay it off . I did that a few years ago.
@@m109rbecause you are not allowed to pay most financed cars off days after purchase. Most require like 3-6 months before you can pay it off in full if you decide to finance.
@@maxrosenthal4538might be different here in Australia but we just did this almost 6 months ago brand new car for my wife, financed and payed off in full a week later. Received a cheeky letter from our financing manager and also the sales officer to never come back to their dealership. Not illegal by any means but we definitely fucked somebody over with their commission because they were not happy 🤣
@@josephpeluchette191 I always have a number before I sit down with them. I let them know, this is what I'm offering. Taxes, fees, however you want to structure the numbers is up to you, but in the end, I'll give you a check for this amount. If you don't think that's acceptable, that's fine. But there is no negotiation. There's just yes or no. Of course, it helps that for me, a car is no more than a tool...a means of transportation. There is no car that I just have to have.
Nope. Never talk how you’re paying up front. ONLY discuss that after the salesman brings you a print out of the vehicle *including* OUT THE DOOR PRICE. Then, you break their rotten little heart and tell them you’re paying in cash. Did this 3 weeks ago and it felt *good*
When I bought my last car, the dealer was up front about the financing rebate. If I had it to do over, I would have skipped that rebate as the finance company was the worst to deal with.
Always take the financing then. Did this on last 2 vehicle purchases. Typically only have to carry the loan for 2 or 3 months to get the rebate (always ask how long). 1st payment, pay all but $100 of the loan. 2nd payment pay all but $10. 3rd payment, pay it all. cost me $75 in interest to get the $500 rebate.
I work at a dealership and I do the same thing when buying a vehicle. I do whatever financing the manufacturer is offering to capture the rebates then just refinance a couple months later
Seems like a lot of BS to save a couple hundred bucks. You gotta keep track of that and get your title and paperwork. I'd rather take the hit and know it's all sorted, that I don't have to jump through any hoops.
Just go somewhere else. Don't play monopoly with these clowns. I hope the feds do not bail out the major new car dealerships. They definitely shouldn't get tax incentives or cash for clunkers/gassers program. This is getting ridiculous.
@@shekharmoona544reducing the costs of buying old cars means 2 things. Your trade in could be worth more. The dealership made more money on the old car deals. Honestly look up how subsidies and tax write offs are used to increase economic activity in the sector. Then look up higher taxes and fees decrease the economic activity in the sector.
I had this happen once. They told me they are adding 3grand to my total and so I just got up and started walking out. Guess who got their car at the original price !? Dealerships are scammy and if you don’t know how to have a poker face their gonna rob your for all they can
They have their own organization which lobbies the government. Their organization has been successful at convincing lawmakers to pass laws that will prevent manufacturers from selling directly to the consumer.
We should reform dealers ships out of the equation entirely as the required way to purchase cars, buy direct from manufacturer should be a thing already.
So you want less competition and higher prices? Lol don't you know how free market operates, I swear you probably think socialism is a better option too...
@@leef1500it's literally not the free market. A free market would allow the car companies to sell directly to consumers. Car dealerships literally banded together and made it illegal because dealerships started undercutting them. Don't talk shit about stuff you don't know, it makes you look like an idiot.
@@leef1500They should exsist. Yet we should be able to buy from the manufacturer. Just like how many goods can be sold directly online, or if you want you can go to a store to buy it. Forcing a middle man isn't exactly free capitalism is it? Not allowing someone to sell their car for the MSRP, just to create iobs... Sort of sounds closer to socialism to me? And that is the only reason why their BS is allowed to exsist. Car dealerships do spend a lot of money on donating money, advertisement, and do create jobs. Yet they also are artifical jobs created through regulations. Tesla has it right.
@@leef1500I mean, its pretty anti-capitalistic to force a manufacturer to only sell to dealership model... Like, government mandated middle-men? Thats goes against the idea of a free market dont you think?
If I dealership wants to charge me more for buying a car in cash, I get up and walk out. Within 24 hours they have always called me back, telling me to come get the car at the same price somebody would pay with financing. You just have to be able to get up and teach those sleazebags who’s in control.
Good to know. I’m paying cash for one this week. So far I’ve asked the dealers to tell me exactly what I’ll be paying so I can come prepared and I haven’t seen this cash price nonsense yet but I was told I “have” to purchase a windshield plan, a dent plan and service plan which added up to about $1700 more. That’s a “no” for sure for me.
According to FTC rules, dealerships must advertise a cash price (as of a month ago or so). Absolutely report that dealership for unlawful business practices
@@originallonewolf6643it's not a lie this is the shit they do they hide things in the fine print. I've seen 500 dollars for window etching fee put on there never let them have that in there. For 1 it's pointless and 2. You can dyi for 20 bucks if you really want to.
You don’t have to choose to get the car. Negotiate, stick up for yourself. Ask them why they include that in the fine print, ask why they would just put the regular price. Then tell them that you don’t like the misleading business deals they offer and leave.
That's true I have walked away from 3 dealerships because of price hiking when I told them cash I'm not paying extra money for a tool that is loosing value as soon as I drive off the lot
You don’t tell them how you intend on paying until they’re very last part. If you do this at the end of the month, they are usually very desperate to make a sale
In 2022 I denied purchase of a vehicle when I tried to pay cash after negotiating. They said they only sell to in house financing customers. I walked away from the deal.
I was buying a car that was hard to find the way I wanted. A dealer found one on a boat from Germany, so had it changed to go to his dealership. While waiting we were getting all of the paperwork done. He called and said I can get you another $750 off if you finance it. So I changed to make a big down payment and paid it off two months later. Definitely there are financing incentives for the dealers.
If you still want to do business with them, make sure there's no early payoff penalty and just pay it off in 2 months when registration comes in. Won't pay too much in interest
Finance with an ok deposit, make sure there's no penalty for paying the loan/finance amount early, then call the bank or finance company. Ask for the buyout/payoff amount. Wait. Once they give you that amount, pay it. I've done this with less expensive items before.
This happened to us but it was $1795 service package we didn’t want. 2022 Lexus NX at a Chrysler dealership. Wife says no, her deal, and dude cabs back at $800. She grabbed purse and started to leave and they stopped her and gave us the package for free. We also had USAA financing. They were annoyed but did sell the car that they had had for over 60 days
Dealers get kickbacks from the financial company. Also for bumping up the interest rate or lease rate. If your dealer does this, walk, immediately. Car sales are starting to swing back to the consumer, so wait a few months if you can, but certainly ship around. Remember, it's just a vehicle. They make thousands of them. Don't be a sucker. Don't overbuy.
@@wlonsdale1it is probably where the $500 or $1000 dollar figure came in. If the dealership received same amount when financing as cash then there would be zero incentive to do this scam.
@JasonGroom well it was a used vehicle and they talked them down 4k. Signed the price agreement then the sales man asked about financing. They pulled cash out.
@@originallonewolf6643 most reputable dealerships absolutely provide you with a sales agreement that will detail the door values agreed upon, and it will either be stamped, sealed, or signed by the sales manager, and they will ask you to sign it. It is not binding in any way though, it is presented as a way for them to show you the actual expense of the vehicle, for them to get to give you the impression it is binding and you're good now, but it is all done prior to any agreements on payment method. I have been buying cars for 25 years from dealers and never not been provided something to sign for them to pretend they have a done deal with.
Kia of Clermont & Kia of Brandon are also FORCING you to purchase their "advantage package" that costs around 2300 and refused to remove it. I returned one credit union check & went to another Florida Kia.
That’s actually illegal according to FTC rules. You can always remind them of that, and threaten to put in an FTC complaint, they were usually complain.
Ya I had this happen to me but they said they wouldn’t take cash or other pre approved lenders I had to finance through them, so I told them to kick rocks
I know this and have walked out of several handshake deals because of it. If im paying cash im paying less period! That vehicle can sit on their lot for another month and cost them more overhead interest for all i care.
That’s why you never talk about how you’re planning on paying. I recently bought a 2023 Ram 1500 Limited. It was listed for 75k.. I just told them I’m not sure who’s I want to pay for it but can you guys do 72k and we went back a fourth had the manager really stressing over why I wouldn’t tell them and once they agreed I said I’d pay cash.
Man! I just started working at a dealership for the first time ever, and they actually advertise on our site the price for financing with us and without and I feel the public just isn’t ready for dealerships being so honest 😂
Don't think it's so much the public isn't ready - there's so much distrust and thinking that the seller/buyer relationship is adversarial that it'll be difficult for a seller to accept that a legacy dealership is offering transparency and honesty. Negotiation is the norm. Tesla and Saturn generally have / had high sales satisfaction because of fixed pricing - Joe, John, and Jane all get the same price without any haggling. But these started off as different business models from day 1 with no adversarial legacy to contend with. One could argue that if you don't want to haggle, just pay MSRP, but those saying that are missing the element that neither Joe, John, or Jane want to pay more than the others. If they end up paying more, it's seen as a failure on their own part as a poor negotiator.
@@miscstuff7824precisely I have no negotiation bone in my body and every single dealership offering the no haggling deals and price online I simply don’t believe except for Tesla and others like it. If I pay a dollar more than any other customer same day then I think I shouldn’t shop there.
Had this issue recently and ended up financing with them. Dealer told me I could pay off in full after 90 days but I called the same week and was able to pay off. So, ended up working out but I was pretty pissed initially when they told me the price would increase $1K if paying cash.
What makes you think they’re screwing you? Do you try to screw the people you work with? Think about it. They’re providing you a service. They want you to be happy. You’re the only one thinking you’re getting screwed.
Listen I hate dealerships, don’t finance with them and think they’re scum that deserve 0 bail outs.. that said, bro this is America. Capitalism is essentially encouraged and it’s free market. Just get up and walk out. Yeah they suck only only deserve bankruptcy but that’s captain
Amazing content! More reasons to stay away from all dealerships. Each of them are shady in their own ways and are trying to take as much money from you as they can. 95% of people don’t understand any of this and sign the paper if the monthly payment is reasonable. More reasons to support why America is in so much debt.
In my view what really matters is the price. Idc how we get there, as long as I feel like I’m getting a good value for the money I’m spending. I always tell the dealer I’m good to pay however they want, I just want the deal that gives me the lowest price
That’s why you negotiate the OTD price first before you mention how you are paying. Then if they increase the price once you mention you are paying cash or have a preapproval you just get up and walk out
Careful man. Those batteries expire 1 mile after warranty. The screen has a 20k mile warranty. The hourly rate for a mechanic at the Tesla dealership is 245 per hour. Shits hidden and marketed well. Tires wear out every 20k miles.
@@DJ-ws6je Still cheaper and less hassle to get it OTD. A model Y right now with ev credit is at 32.5-33K, I can’t find a better deal than that anywhere. I do not like Elon, and I’d rather go to a car dealership. But the Ford and Kia dealers I’ve been to have been downright awful, and trying to sell their comparable models for 45K+.
Yes, this is the Key. Provided there is no early pay off penalty, accept their loan and pay it off in full on the first installment.. Of course you will pay one month in interest at most..
This is only a good idea if interest rates are above 5%. Otherwise you're better off investing the cash you would have dropped into a depreciating asset into a dividend paying stock or a CD paying over 5%.
Guess what. There are new federal laws that are going into effect that stop all of the "fine print", so it isn't misleading or confusing to the customer. As a former salesman I think this new set of laws is awesome.
That's always why you wait until all the numbers are settled, both you and sales have signed and you sit down with finance, and the finance guy asks how you are wanting to pay, then you say cash. Never tell the salesmen how you're paying.
I don’t understand why people complain so much about this. It’s a car dealership. They’re there to make money. If you don’t like it, don’t buy the car. It’s not a scam
The dealership model is a racket that exists only because our politicians are bribed by their strong lobby. It only benefits the dealership and would get crushed by a direct to consumer model in an open marketplace. Unless you own a dealership you also suffer from their existence so instead of telling people to stop whining, how about joining the voices calling for change?
@@anthonyyyyyy that should not not be allowed. Financing should be separate. How are they making money from financing at rates of 0% or any rates under the funds rate? What about the risks of default? Doesn't that make a dent in the profits? How are they profiting from rates lower than anyone else can do?
That’s not true necessarily. Dealers make money on the back end from financing. You’re more likely to get a better deal financing. Make sure there isn’t a penalty for paying it off early. Pay the vehicle off in 6 months in large payments and you’ll be saving money in the long run
@@nigelwatson9114 yeah for cars. But for everything else people are more likely to discount for cash. They save on processing fees. Sometimes they under report cash sales and can save on taxes. They get money right away, don't have to go to the bank as much. Most businesses prefer cash.
I worked at a dealership that did this and it was so stupid it cost me a couple sales because people didn’t want to do business with a shady place the cars were good but their business practices were not it. I get that dealerships make money off financing but I feel like it should be made more upfront about it.
In Quebec they can’t do that. Advertised price is what you pay. The only way to pull this off would be to make it clear that you are getting a rebate by financing trough them. They can’t hide it in fine prints.
Back in 2018 I purchased a new Silverado. They had thousands worth of rebates if I financed with them. However, the interest was crazy high. The salesman was actually honest and told me to just refinance right away. When the 1st payment was due, I turned around and refinanced with my local credit union for half the interest rate.
Such greed is why I relish the problems that dealerships are having now. If only they understood that being reasonable with people is the only way to keep customers and grow your business. They may be legal but they lack a moral foundation..
I spent a year in car sales. During that time I watched them sell several cars at cost and a couple of times for less then they paid for the car. How? Car dealerships make money 3 ways: Selling a car for more then they own it for. Buying a trade for less than its market value. Profit from F&I for loans and other vehicle related products. Advertised cars are priced to bring people into the dealership. They must make money on your trade or in F&I.
Stop telling these people to trust car dealerships. Pay cash, set your limit, dont ever compermise. If they cant do the deal you want, walk out. It wasn't meant to be.
When you are EVER spending serious cash ask them outright if there are any extra fees to follow. Also... If they bump up extra fees that make no sense or you are not happy with then walk away. It won't get any easier.
Ask if you can pay the car off early before you sign anything. If they’ll let you do that agree to the financing deal. Make one or two payments then pay the whole thing off.
Always check with the dealship whether or not they charge an early repayment fee on their finance, many don't at least in the UK. If you intend on paying cash but the price is higher, take out the finance and pay it off after your first payment, did that my my latest car, saved about £2500.
Ultimately I got to laugh at the bank, because if that was a deciding factor for if the dealer then the dealer received close to or exactly 2,500. And then you just had the bank subsidies your loan.
Why though? In what industry does paying cash get you a discount like that? If a finance company is offering a rebate to finance with them and you get a price that includes that rebate… Why would you expect that price not financing with them? Banks pay dealerships cash when a customer signs a loan for the car.
I had this happen. The vehicle was listed for $8995. When I told the salesman I would pay cash, he said the price was $9995. Yes, it was in the fine print. So I said that I’d really like to buy the car, but I’m not afraid to walk away. They ended up knocking down $500. Moral of the story is always negotiate and don’t fall in love with a car before it is yours and do not be afraid to walk away.
They can charge where they want for the vehicle. It's up to you for the consumer to pay it and if they want to charge that extra grand walk away. Next dealer
It's crazy cash used to be king when buying cars outright at a dealership. Now they just laugh at you and say, Here's one of our banks you can choose from.
No you never tell them about cash ! Never Never tell the dealership about your down payment! Never tell the dealership what payment you want to be at. Never tell them you really like that car you test drove. They use all that information to charge more for the vehicle!! ! Find out the out the door Price! Find out what amount you need to write a check for that vehicle ! That cuts out all the mark ups !
Work them down in price, and take the loan with them. Make one payment and pay it off in full with cash or your credit union loan. As long as they do not have a early termination fee.
Yeah let's risk financing to the high school graduate who wants a charger at 1200$ a month VS the guy paying.. 🤢 cash.. because they're walking away when they find that out.
Take the rebate from dealer by financing with them. Then go to a credit union, get financing there and pay off the loan. If you're credit union is a good as mine, there are no fees and they'll even pay you up to $500 to refinance with them.
I walked to a dealership with approval letter from credit union, they didn’t want to sell me the car, they wanted me to finance through them. I walked away and bought somewhere else.
And you can legally walk out and find another dealership, its that simple.
Fiance the car . Then pay it off a few days later and screw the dealership for their commission from the fiance company
@@m109rThat’s not how it works, they get their commission upfront, otherwise the dealership would never finance. 😂
@@AnonymousDub So why not fiance to get a lower price on the vehicle. Then pay it off. I know honda fiance in the past would give a rebate of a 1000 bucks on a vehicle. So the dealer would reduce the price by a 1000. So fiance it and then pay it off . I did that a few years ago.
@@m109rbecause you are not allowed to pay most financed cars off days after purchase. Most require like 3-6 months before you can pay it off in full if you decide to finance.
@@maxrosenthal4538might be different here in Australia but we just did this almost 6 months ago brand new car for my wife, financed and payed off in full a week later. Received a cheeky letter from our financing manager and also the sales officer to never come back to their dealership. Not illegal by any means but we definitely fucked somebody over with their commission because they were not happy 🤣
Like you said. It's legal, I suppose. It's also legal for me to get up and walk out if they try it.
I did went to rival across road the guy could see he called and excepted before I got in door
@@josephpeluchette191 I always have a number before I sit down with them. I let them know, this is what I'm offering. Taxes, fees, however you want to structure the numbers is up to you, but in the end, I'll give you a check for this amount. If you don't think that's acceptable, that's fine. But there is no negotiation. There's just yes or no.
Of course, it helps that for me, a car is no more than a tool...a means of transportation. There is no car that I just have to have.
Right I hold the money they even if it's a loan I got over car dealers thinking they owned my business a long time ago
@@jim6690that’s the secret to good negotiating not needing the item
So you finance it to get the discount, then pay the loan amount in full the next day. There is no penalty for paying a loan off early.
Nope. Never talk how you’re paying up front. ONLY discuss that after the salesman brings you a print out of the vehicle *including* OUT THE DOOR PRICE. Then, you break their rotten little heart and tell them you’re paying in cash. Did this 3 weeks ago and it felt *good*
And we wonder why people hate car dealerships and salesmen.
Thats when you walk out with your money and they just spent half the day for no money.
Legal: yes
Also legal: going somewhere else.
Thats a good sign NOT to buy from a sleazy dealer. This will just be the FIRST time they try to screw you. It wont be the last.
When I bought my last car, the dealer was up front about the financing rebate. If I had it to do over, I would have skipped that rebate as the finance company was the worst to deal with.
Always take the financing then. Did this on last 2 vehicle purchases. Typically only have to carry the loan for 2 or 3 months to get the rebate (always ask how long). 1st payment, pay all but $100 of the loan. 2nd payment pay all but $10. 3rd payment, pay it all. cost me $75 in interest to get the $500 rebate.
surprised you only have 2 thumbs up so far, this is the way. Play their game but win at it.
@@Litterbauxyou can also just stand up and walk out. 9/10 they will stop you and give you the finance price
Yes! Always always always!
I work at a dealership and I do the same thing when buying a vehicle. I do whatever financing the manufacturer is offering to capture the rebates then just refinance a couple months later
Seems like a lot of BS to save a couple hundred bucks. You gotta keep track of that and get your title and paperwork.
I'd rather take the hit and know it's all sorted, that I don't have to jump through any hoops.
Just go somewhere else. Don't play monopoly with these clowns. I hope the feds do not bail out the major new car dealerships. They definitely shouldn't get tax incentives or cash for clunkers/gassers program. This is getting ridiculous.
They don't bail out the dealerships, they bailed out the manufacturers
@@pugnaciouspredators2086 what was cash for clunkers? Literally an incentivized government bailout that utilized tax payers to buy vehicles.
@@shekharmoona544reducing the costs of buying old cars means 2 things. Your trade in could be worth more. The dealership made more money on the old car deals.
Honestly look up how subsidies and tax write offs are used to increase economic activity in the sector. Then look up higher taxes and fees decrease the economic activity in the sector.
And report them to because it's not legal
I had this happen once. They told me they are adding 3grand to my total and so I just got up and started walking out. Guess who got their car at the original price !? Dealerships are scammy and if you don’t know how to have a poker face their gonna rob your for all they can
Best fuck n comment BY FAR!!!!!!!!!!
It’s crazy that we even have car dealerships. Tesla tried to sell directly to consumer and they cried about it.
They have their own organization which lobbies the government. Their organization has been successful at convincing lawmakers to pass laws that will prevent manufacturers from selling directly to the consumer.
Made sense back in the day when the internet didn't exist.
If the deal is great, just make sure there's no early payoff penalty, take the deal, and pay it off with cash or refinance.
That’s what I would do
I come in with cash to get a discount 😂
They don’t care, they lose money on cash deals hence why they charge more. They get paid on the backend financing.
If you tell a dealership that you are paying cash before the final price has been negotiated, you most certainly did not get a discount.
@@ryanschaff2507define “loose money” actually loosing money on a single sale is so rare, it only cuts into the profits.
They want that kickback from the bank after railing you with a 15% interest rate
What kick back🤔
We should reform dealers ships out of the equation entirely as the required way to purchase cars, buy direct from manufacturer should be a thing already.
So you want less competition and higher prices? Lol don't you know how free market operates, I swear you probably think socialism is a better option too...
@@leef1500and you don’t know how car dealerships became a thing. Look into their history a bit.
@@leef1500it's literally not the free market. A free market would allow the car companies to sell directly to consumers. Car dealerships literally banded together and made it illegal because dealerships started undercutting them. Don't talk shit about stuff you don't know, it makes you look like an idiot.
@@leef1500They should exsist. Yet we should be able to buy from the manufacturer. Just like how many goods can be sold directly online, or if you want you can go to a store to buy it.
Forcing a middle man isn't exactly free capitalism is it? Not allowing someone to sell their car for the MSRP, just to create iobs... Sort of sounds closer to socialism to me?
And that is the only reason why their BS is allowed to exsist.
Car dealerships do spend a lot of money on donating money, advertisement, and do create jobs. Yet they also are artifical jobs created through regulations.
Tesla has it right.
@@leef1500I mean, its pretty anti-capitalistic to force a manufacturer to only sell to dealership model... Like, government mandated middle-men? Thats goes against the idea of a free market dont you think?
I will legally walk TF out
If that happens, just get up and silently leave. You will win.
If I dealership wants to charge me more for buying a car in cash, I get up and walk out. Within 24 hours they have always called me back, telling me to come get the car at the same price somebody would pay with financing. You just have to be able to get up and teach those sleazebags who’s in control.
They then need to pay u for your time and inconvenience if waiting a day.
I’ll teach them by letting them rot on the show room floor waiting for me and they won’t see me. Because I am not buying from dealership.
Good to know. I’m paying cash for one this week. So far I’ve asked the dealers to tell me exactly what I’ll be paying so I can come prepared and I haven’t seen this cash price nonsense yet but I was told I “have” to purchase a windshield plan, a dent plan and service plan which added up to about $1700 more. That’s a “no” for sure for me.
This is what the ftc is for
According to FTC rules, dealerships must advertise a cash price (as of a month ago or so). Absolutely report that dealership for unlawful business practices
Good to know!
Even before then it's called unusual business practices every thing in this video is a lie
@@originallonewolf6643it's not a lie this is the shit they do they hide things in the fine print. I've seen 500 dollars for window etching fee put on there never let them have that in there. For 1 it's pointless and 2. You can dyi for 20 bucks if you really want to.
After buying my first brand new car from a dealership i realize there is no form of life lower than a car salesman!!
You don’t have to choose to get the car. Negotiate, stick up for yourself. Ask them why they include that in the fine print, ask why they would just put the regular price. Then tell them that you don’t like the misleading business deals they offer and leave.
That's true I have walked away from 3 dealerships because of price hiking when I told them cash I'm not paying extra money for a tool that is loosing value as soon as I drive off the lot
You don’t tell them how you intend on paying until they’re very last part. If you do this at the end of the month, they are usually very desperate to make a sale
In 2022 I denied purchase of a vehicle when I tried to pay cash after negotiating. They said they only sell to in house financing customers. I walked away from the deal.
This is why I always negotiate the out the door price to match some thing. I am willing to pay for it. It implies cash offer.
I was buying a car that was hard to find the way I wanted. A dealer found one on a boat from Germany, so had it changed to go to his dealership. While waiting we were getting all of the paperwork done. He called and said I can get you another $750 off if you finance it. So I changed to make a big down payment and paid it off two months later.
Definitely there are financing incentives for the dealers.
If you still want to do business with them, make sure there's no early payoff penalty and just pay it off in 2 months when registration comes in. Won't pay too much in interest
I’d just walk out. No car is worth that much of a hassle. The person who has the most control, is the one who’s willing to walk away.
Finance with an ok deposit, make sure there's no penalty for paying the loan/finance amount early, then call the bank or finance company. Ask for the buyout/payoff amount. Wait. Once they give you that amount, pay it.
I've done this with less expensive items before.
Bro if a dealership charges me more for paying with cash I'm laughing all the way out the mfing door
This happened to us but it was $1795 service package we didn’t want. 2022 Lexus NX at a Chrysler dealership. Wife says no, her deal, and dude cabs back at $800. She grabbed purse and started to leave and they stopped her and gave us the package for free. We also had USAA financing. They were annoyed but did sell the car that they had had for over 60 days
“Ok, bye!”
Dealers get kickbacks from the financial company. Also for bumping up the interest rate or lease rate. If your dealer does this, walk, immediately. Car sales are starting to swing back to the consumer, so wait a few months if you can, but certainly ship around. Remember, it's just a vehicle. They make thousands of them. Don't be a sucker. Don't overbuy.
Well, not exactly. They do make money off the buy rate but it's very limited.
@@wlonsdale1it is probably where the $500 or $1000 dollar figure came in. If the dealership received same amount when financing as cash then there would be zero incentive to do this scam.
I had a buddy who talked a dealership down on a vehicle and never told them he was paying cash until everything was signed
Not really possible, they are not signing any legally binding papers before they see proof of payment.
@JasonGroom well it was a used vehicle and they talked them down 4k. Signed the price agreement then the sales man asked about financing. They pulled cash out.
@@shaneharris9818 in most states, that price agreement is not binding, in relation to requiring sale or purchase of the vehicle.
@@JasonGroomwhat are you talking about the dealorship don't sign shit
@@originallonewolf6643 most reputable dealerships absolutely provide you with a sales agreement that will detail the door values agreed upon, and it will either be stamped, sealed, or signed by the sales manager, and they will ask you to sign it. It is not binding in any way though, it is presented as a way for them to show you the actual expense of the vehicle, for them to get to give you the impression it is binding and you're good now, but it is all done prior to any agreements on payment method. I have been buying cars for 25 years from dealers and never not been provided something to sign for them to pretend they have a done deal with.
Kia of Clermont & Kia of Brandon are also FORCING you to purchase their "advantage package" that costs around 2300 and refused to remove it. I returned one credit union check & went to another Florida Kia.
That’s actually illegal according to FTC rules. You can always remind them of that, and threaten to put in an FTC complaint, they were usually complain.
The key word is WALK! "To the STEALERSHIP its same as cash", BS.
Ya I had this happen to me but they said they wouldn’t take cash or other pre approved lenders I had to finance through them, so I told them to kick rocks
I know this and have walked out of several handshake deals because of it. If im paying cash im paying less period! That vehicle can sit on their lot for another month and cost them more overhead interest for all i care.
That’s why you never talk about how you’re planning on paying. I recently bought a 2023 Ram 1500 Limited. It was listed for 75k.. I just told them I’m not sure who’s I want to pay for it but can you guys do 72k and we went back a fourth had the manager really stressing over why I wouldn’t tell them and once they agreed I said I’d pay cash.
How did they react when you said that you were paying cash?
Man! I just started working at a dealership for the first time ever, and they actually advertise on our site the price for financing with us and without and I feel the public just isn’t ready for dealerships being so honest 😂
Dealerships aren’t honest and if you think they are you’re a moron. Many things happening behind the scenes that you menial workers never see
Don't think it's so much the public isn't ready - there's so much distrust and thinking that the seller/buyer relationship is adversarial that it'll be difficult for a seller to accept that a legacy dealership is offering transparency and honesty. Negotiation is the norm.
Tesla and Saturn generally have / had high sales satisfaction because of fixed pricing - Joe, John, and Jane all get the same price without any haggling. But these started off as different business models from day 1 with no adversarial legacy to contend with.
One could argue that if you don't want to haggle, just pay MSRP, but those saying that are missing the element that neither Joe, John, or Jane want to pay more than the others. If they end up paying more, it's seen as a failure on their own part as a poor negotiator.
@@miscstuff7824precisely I have no negotiation bone in my body and every single dealership offering the no haggling deals and price online I simply don’t believe except for Tesla and others like it.
If I pay a dollar more than any other customer same day then I think I shouldn’t shop there.
@@miscstuff7824100% just described me
Had this issue recently and ended up financing with them. Dealer told me I could pay off in full after 90 days but I called the same week and was able to pay off. So, ended up working out but I was pretty pissed initially when they told me the price would increase $1K if paying cash.
They get away with it when you don't walk away.
Hot take - always finance it. You 1 get the price you want and you never have to worry about paying it since you had the money in hand before buying.
Interest???
@@natebit7167he either means just pay it off after you finance or just get a low interest loan and then beat the rate with a stock or someshit
Sure
,if they don’t want your business !🤨
Greed is a powerful thing. They have something you want and they will try to screw you as much as they can.
You’d do the same if you’re in the same position
What makes you think they’re screwing you? Do you try to screw the people you work with? Think about it. They’re providing you a service. They want you to be happy. You’re the only one thinking you’re getting screwed.
@@DavidMayCaballeroyou haven’t dealt with these people and it shows.
You don't understand that most of the money is made on the back end
Listen I hate dealerships, don’t finance with them and think they’re scum that deserve 0 bail outs.. that said, bro this is America. Capitalism is essentially encouraged and it’s free market.
Just get up and walk out. Yeah they suck only only deserve bankruptcy but that’s captain
Amazing content! More reasons to stay away from all dealerships. Each of them are shady in their own ways and are trying to take as much money from you as they can. 95% of people don’t understand any of this and sign the paper if the monthly payment is reasonable. More reasons to support why America is in so much debt.
In my view what really matters is the price. Idc how we get there, as long as I feel like I’m getting a good value for the money I’m spending. I always tell the dealer I’m good to pay however they want, I just want the deal that gives me the lowest price
If a dealership tried to make me pay more for paying in cash I’m walking TF out to their rivals.
Just walk away, it's that simple. Let them lose that sale.
They get away with it if you let them. Never forget you don't have to buy it
That’s why you negotiate the OTD price first before you mention how you are paying. Then if they increase the price once you mention you are paying cash or have a preapproval you just get up and walk out
You successfully made me want to get a Tesla. 😂
Careful man. Those batteries expire 1 mile after warranty. The screen has a 20k mile warranty. The hourly rate for a mechanic at the Tesla dealership is 245 per hour. Shits hidden and marketed well. Tires wear out every 20k miles.
@@DJ-ws6je Still cheaper and less hassle to get it OTD. A model Y right now with ev credit is at 32.5-33K, I can’t find a better deal than that anywhere. I do not like Elon, and I’d rather go to a car dealership. But the Ford and Kia dealers I’ve been to have been downright awful, and trying to sell their comparable models for 45K+.
@@DJ-ws6jeand yet it is still cheaper then the shenanigans the care dealers are doing
Omfg 🤔🤔🤔 wow so lame
@@hoshanggunner I dO NoT lIkE eLoN. 🤡🤡
Can you finance it and then pay it off the first month? To save yourself the add on
Unless the loan has an early payoff penalty fee but they almost never do so yes you could do that is most instances
Yes, this is the Key. Provided there is no early pay off penalty, accept their loan and pay it off in full on the first installment.. Of course you will pay one month in interest at most..
That's exactly what I did, Kia Financing has no early payoff penalty, although many financing companies do have this.
Don’t understand why they would ever raise the price for paying cash if u can just do this lol
This is only a good idea if interest rates are above 5%. Otherwise you're better off investing the cash you would have dropped into a depreciating asset into a dividend paying stock or a CD paying over 5%.
Guess what. There are new federal laws that are going into effect that stop all of the "fine print", so it isn't misleading or confusing to the customer.
As a former salesman I think this new set of laws is awesome.
That's always why you wait until all the numbers are settled, both you and sales have signed and you sit down with finance, and the finance guy asks how you are wanting to pay, then you say cash. Never tell the salesmen how you're paying.
I don’t understand why people complain so much about this. It’s a car dealership. They’re there to make money. If you don’t like it, don’t buy the car. It’s not a scam
The dealership model is a racket that exists only because our politicians are bribed by their strong lobby. It only benefits the dealership and would get crushed by a direct to consumer model in an open marketplace. Unless you own a dealership you also suffer from their existence so instead of telling people to stop whining, how about joining the voices calling for change?
Learn the difference between profit and profiteering. The latter is why folks hate dealerships.
What? Normally places discount for cash.
They make lots of interest off financing, they can’t do that with cash
@@anthonyyyyyy that should not not be allowed. Financing should be separate. How are they making money from financing at rates of 0% or any rates under the funds rate? What about the risks of default? Doesn't that make a dent in the profits? How are they profiting from rates lower than anyone else can do?
That’s not true necessarily. Dealers make money on the back end from financing. You’re more likely to get a better deal financing. Make sure there isn’t a penalty for paying it off early. Pay the vehicle off in 6 months in large payments and you’ll be saving money in the long run
@@nigelwatson9114 yeah for cars. But for everything else people are more likely to discount for cash. They save on processing fees. Sometimes they under report cash sales and can save on taxes. They get money right away, don't have to go to the bank as much. Most businesses prefer cash.
If you pay cash they dont get intrest
That’s why you don’t tell them what monthly payment you want. You get an OTD price
I worked at a dealership that did this and it was so stupid it cost me a couple sales because people didn’t want to do business with a shady place the cars were good but their business practices were not it. I get that dealerships make money off financing but I feel like it should be made more upfront about it.
Car dealerships are always shady AF. Especially the used car ones
This guy gives sleezy car salesman vibes
Cars are not a limited commodity. If a dealership pulls this drive to the next one.
Has to pay more? No. Then you just leave and go somewhere that will take your money. 😂
They can legally charge you a million dollars for a rusted out 1997 Toyota Tercel. And you can legally say no.
We need to go back to the days when the manufacturers could sell directly to the consumer.
And walking out the door when they do that is legal, too.
In Quebec they can’t do that. Advertised price is what you pay. The only way to pull this off would be to make it clear that you are getting a rebate by financing trough them. They can’t hide it in fine prints.
All dealerships are shady, ALL of them
The key is to get financed with no early payoff fees, and then pay the whole thing off right away if you’re paying cash
Back in 2018 I purchased a new Silverado. They had thousands worth of rebates if I financed with them. However, the interest was crazy high.
The salesman was actually honest and told me to just refinance right away.
When the 1st payment was due, I turned around and refinanced with my local credit union for half the interest rate.
Such greed is why I relish the problems that dealerships are having now. If only they understood that being reasonable with people is the only way to keep customers and grow your business. They may be legal but they lack a moral foundation..
Screw dealerships and all their tricks!!!!!!!!!! Screw........ them!!!!!
I spent a year in car sales. During that time I watched them sell several cars at cost and a couple of times for less then they paid for the car. How? Car dealerships make money 3 ways: Selling a car for more then they own it for. Buying a trade for less than its market value. Profit from F&I for loans and other vehicle related products. Advertised cars are priced to bring people into the dealership. They must make money on your trade or in F&I.
If a dealership does this, just walk out.
Stop telling these people to trust car dealerships. Pay cash, set your limit, dont ever compermise. If they cant do the deal you want, walk out. It wasn't meant to be.
When you are EVER spending serious cash ask them outright if there are any extra fees to follow.
Also... If they bump up extra fees that make no sense or you are not happy with then walk away.
It won't get any easier.
You can also sign the paperwork and payoff the loan the next day. Make sure there is no pre payment penalty or interest first.
In civilized counties there’s something called consumer protection. They should all be in jail
😢 they can do it. But im walking out with no car. Lol
Ask if you can pay the car off early before you sign anything. If they’ll let you do that agree to the financing deal. Make one or two payments then pay the whole thing off.
Sounds like a good way to lose a sale to me 🤙🏻
Always check with the dealship whether or not they charge an early repayment fee on their finance, many don't at least in the UK. If you intend on paying cash but the price is higher, take out the finance and pay it off after your first payment, did that my my latest car, saved about £2500.
Ultimately I got to laugh at the bank, because if that was a deciding factor for if the dealer then the dealer received close to or exactly 2,500. And then you just had the bank subsidies your loan.
Walk away , before you could leave the parking lot you will get a phone call then the card will be in your hands 🙌
And that's when you say the price I pay is what we agreed to or I'm walking. And then start to stand up and leave.
If someone is paying cash, they should be getting a deep discount. Refuse to do business with cheaters.
Why though? In what industry does paying cash get you a discount like that? If a finance company is offering a rebate to finance with them and you get a price that includes that rebate… Why would you expect that price not financing with them? Banks pay dealerships cash when a customer signs a loan for the car.
“Ooo sorry cash? It’s actually a higher cost”
*takes paperwork with my info on it and leaves dealership*
I had this happen. The vehicle was listed for $8995. When I told the salesman I would pay cash, he said the price was $9995. Yes, it was in the fine print. So I said that I’d really like to buy the car, but I’m not afraid to walk away. They ended up knocking down $500.
Moral of the story is always negotiate and don’t fall in love with a car before it is yours and do not be afraid to walk away.
They can charge where they want for the vehicle. It's up to you for the consumer to pay it and if they want to charge that extra grand walk away. Next dealer
It's crazy cash used to be king when buying cars outright at a dealership. Now they just laugh at you and say, Here's one of our banks you can choose from.
Just finance the car then pay it off right away
I tell them I have cash in hand to buy a car. You selling or not? They're not the only person selling cars today.
If it's a trigger term, it should be in the advertisement in fine print.
No you never tell them about cash ! Never Never tell the dealership about your down payment! Never tell the dealership what payment you want to be at. Never tell them you really like that car you test drove. They use all that information to charge more for the vehicle!! ! Find out the out the door Price! Find out what amount you need to write a check for that vehicle ! That cuts out all the mark ups !
I’m just not going to play the game, they lost me as a customer as an entire industry
Work them down in price, and take the loan with them. Make one payment and pay it off in full with cash or your credit union loan. As long as they do not have a early termination fee.
Don’t tell them you’re paying cash until the end.
That's why I never buy from dealerships😂😂😂
Yeah let's risk financing to the high school graduate who wants a charger at 1200$ a month VS the guy paying.. 🤢 cash.. because they're walking away when they find that out.
Take the rebate from dealer by financing with them. Then go to a credit union, get financing there and pay off the loan. If you're credit union is a good as mine, there are no fees and they'll even pay you up to $500 to refinance with them.
They also include thousands of bull shit fees
The thousand is from the manufacturer. If you don't finance through the manufacturer the dealer doesn't get the grand.
I walked to a dealership with approval letter from credit union, they didn’t want to sell me the car, they wanted me to finance through them. I walked away and bought somewhere else.