I tried buying a car a few weeks ago and was looking at a car. The internet price was 15k, the first price they brought me was 32k. I left immediately.
@@russflipswhips years ago, I had a dealership try to get me to sign without telling me my monthly payment, interest rate and cost of the car. They said we got you approved, sign this piece of paper that you want the car. I got up and left. The salesman had the audacity to tell me in the parking lot that I wouldn’t be back if I left and that I was missing out on a great deal😂😂😂😂😂😂
Bonus tip: If you finance, get a loan at 60 months or more and pay it off early. Banks legally cannot charge you an early pay-off penalty with loans of 60 months or more.
If you're using your own financing, sometimes the dealer will offer you a better price if you use their financing (because they get a rebate from the loan provider). If your dealer was NICE, you can take that loan, find out how long you have to wait to pay it off so they don't charge the rebate back to the dealer (usually 3 or 6 months), and then refinance with your own bank. Check everything beforehand, but it can be a win/win for both of you if done right.
This is misleading. With the amortization of a loan you pay more interest the first few years. Even doing this you still pay more interest than a shorter loan term. Plus better rates.
Heres a quick tip when financing through a dealership. When you get to the finance and they tell you the price of the car and the monthy...remember it. then they ask you about products, tell them yeah I want this I want that...then before signing ask to take it off. sometimes they will adjust the car price while showing you theyre giving you a deal on the add-on products. If theyre in a hurry they may forget to re-adjust. Not a huge amount, but I saved 4 bucks a month on my last car (60 month loan).
i was with my parents when they were buying a car and they were trying to get them with tying product to the rate as soon as i heard it i asked the finance guy for a pen and i crossed out the extras and circled the interest rate and i told him that's the rate we're getting with no add ons or we're leaving he sat there and tried to defend himself till he had to bring his manager in😂
My wife had a dealership entrap her and her family a long time ago. They locked the doors ( mid day) and blocked the exits because she didn't want them to go else where
If cell phones were in use at the time, she should have pulled out her phone, called the local police department, and explained that she was being held at the dealer against her will. That would have forced the dealer to back down.
That was our dealership and , you were a 480 credit score with 3 repos , were backed up in child support payments and and had a bankrupt in your name from 2011
@@darkfader7223 Ok, but why was a down payment required for your dealership to merely provide a price quote? And how did you know the customer had a 480 score, 3 repos, a bankruptcy and was delinquent on child payments before running a credit check?
We almost bought an F150 at Ford recently. Great truck. The trade in value was $1500 for our old vehicle and I raised my voice and said what the hell is this? I know I can get at least double. So then the finance guy asked me what I wanted for the trade in and I said much higher. Ultimately he offered me $10K for it and that was ridiculous. He said he needed to sell a vehicle that afternoon and I said I don't have to buy a vehicle this afternoon. I felt sorry for the sales guy who did a very good job. The finance guy had all kinds of financing schemes on a piece of paper and he purposely talked through them quite quickly and confused me and my wife. God almighty, why do car dealerships do stuff like that. Why the appearance of underhandedness? We do need a new vehicle, but it will be on our terms and at our pace.
Price online irks me. Msrp is 35000, dealer discount and instant savings price is 30000. Then you might see microscopic fine print in website background color that says you would never get the savings because you are not a llama wearing roller skates while eating ice cream.
@@russflipswhips I see. So they (dealership) is just telling you that you have to add the items to get that rate, but you are actually already able to get that rate without adding those items?
1st scenario might fall under a deceptive practices law in your respective state and you can sue for civil damages. Especially if you have to drive a long distance
What other product can you buy where...the EXACT same thing is sold to multiple people, all at a different price. Car dealerships have earned their sh*tty reputations.
Sometimes different banks will offer a lower interest rate if you're financing more money. That's not illegal to tell the customer they have to finance a certain amount otherwise this certain bank won't approve them.
@@russflipswhipsI've seen Santander lower the rate if you purchase gap directly through them, so there's gotta be a loophole. The lower rate was never much, like 6.89 to 6.29 or something like that
Banks may not require you to buy the warranty etc, but they can indeed OFFER you a lower rate. The terminology may be true or it could be a lie. How could you prove the bank didn't offer that option?
While it is illegal to tying product to the rate is illegal, what can a customer do other than run? Who can the customer go to in order to report the illegal sales tactic? Most Police Departments either wont do anything or they say it is a civil matter.
It's true that Tying is illegal for a dealership to do, but you are incorrect that no lenders do this. I have seen lenders offer a lower rate with backend. Cap1 is an example of this.
I tried buying a car a few weeks ago and was looking at a car. The internet price was 15k, the first price they brought me was 32k. I left immediately.
That’s insane!
@@russflipswhips years ago, I had a dealership try to get me to sign without telling me my monthly payment, interest rate and cost of the car. They said we got you approved, sign this piece of paper that you want the car. I got up and left. The salesman had the audacity to tell me in the parking lot that I wouldn’t be back if I left and that I was missing out on a great deal😂😂😂😂😂😂
Bonus tip: If you finance, get a loan at 60 months or more and pay it off early. Banks legally cannot charge you an early pay-off penalty with loans of 60 months or more.
Yes! Great advice. Although keep in mind most consumers aren’t disciplined enough to pay off early
If you're using your own financing, sometimes the dealer will offer you a better price if you use their financing (because they get a rebate from the loan provider). If your dealer was NICE, you can take that loan, find out how long you have to wait to pay it off so they don't charge the rebate back to the dealer (usually 3 or 6 months), and then refinance with your own bank. Check everything beforehand, but it can be a win/win for both of you if done right.
@ this is 100% true
This is misleading. With the amortization of a loan you pay more interest the first few years. Even doing this you still pay more interest than a shorter loan term. Plus better rates.
@@dv9409not if the extra amount that you pay goes towards principal
Running Credit before running preliminary numbers gets me fired up everytime. Great Video Russ
@@danrichardson8241 thank you 🙏🏻
What excellent advice! Have you ever seen a "paperwork" line item? I had a "paperwork" line item on my bill of sales for $500.00.
There’s doc fees but if they charged you a doc fee and a paperwork fee that’s crazy
Heres a quick tip when financing through a dealership. When you get to the finance and they tell you the price of the car and the monthy...remember it. then they ask you about products, tell them yeah I want this I want that...then before signing ask to take it off. sometimes they will adjust the car price while showing you theyre giving you a deal on the add-on products. If theyre in a hurry they may forget to re-adjust. Not a huge amount, but I saved 4 bucks a month on my last car (60 month loan).
Do you have to take dealer add on’s or can you refuse them?
i was with my parents when they were buying a car and they were trying to get them with tying product to the rate as soon as i heard it i asked the finance guy for a pen and i crossed out the extras and circled the interest rate and i told him that's the rate we're getting with no add ons or we're leaving he sat there and tried to defend himself till he had to bring his manager in😂
My wife had a dealership entrap her and her family a long time ago. They locked the doors ( mid day) and blocked the exits because she didn't want them to go else where
That’s so crazy!
If cell phones were in use at the time, she should have pulled out her phone, called the local police department, and explained that she was being held at the dealer against her will. That would have forced the dealer to back down.
Had a Subaru dealer try claiming the bank is requiring an extended warranty for a lower interest rate.
One dealership tried to scam me by saying I needed to put a down payment and run a credit check in order to get the quote of the car.
That was our dealership and , you were a 480 credit score with 3 repos , were backed up in child support payments and and had a bankrupt in your name from 2011
@@darkfader7223 Ok, but why was a down payment required for your dealership to merely provide a price quote?
And how did you know the customer had a 480 score, 3 repos, a bankruptcy and was delinquent on child payments before running a credit check?
It's weird that it's called "Tying the Product to the Rate" and not just "Tied Selling". Tied selling period is illegal.
When is the best time to go buy a vehicle. Like when do dealerships being want to offload last years models? Planning on buying an EV
The reality is a car dealer can only rip you off if you allow them to rip you off.
I do agree with this. Too much information available imop
Love the videos and advice, out of curiosity how many hate emails and letters do you get from other car sales people?
Not many lol
@russflipswhips I'm glad, and the next time I need to purchase a vehicle I am so much more prepared thanks to you!!
We almost bought an F150 at Ford recently. Great truck. The trade in value was $1500 for our old vehicle and I raised my voice and said what the hell is this? I know I can get at least double. So then the finance guy asked me what I wanted for the trade in and I said much higher. Ultimately he offered me $10K for it and that was ridiculous. He said he needed to sell a vehicle that afternoon and I said I don't have to buy a vehicle this afternoon. I felt sorry for the sales guy who did a very good job. The finance guy had all kinds of financing schemes on a piece of paper and he purposely talked through them quite quickly and confused me and my wife. God almighty, why do car dealerships do stuff like that. Why the appearance of underhandedness? We do need a new vehicle, but it will be on our terms and at our pace.
I'm grateful our dealership does not do this. I work in Paris Texas at Ford Lincoln.
Price online irks me. Msrp is 35000, dealer discount and instant savings price is 30000. Then you might see microscopic fine print in website background color that says you would never get the savings because you are not a llama wearing roller skates while eating ice cream.
🤣🤣🤝
The last one.. the rate is actually exactly the same both way.. It's just the dealership marking the rate up, right?
No different approvals most dealer cant only mark rate up a few points
@@russflipswhips I see. So they (dealership) is just telling you that you have to add the items to get that rate, but you are actually already able to get that rate without adding those items?
@ exactly!
@@russflipswhips got it, thanks!
1st scenario might fall under a deceptive practices law in your respective state and you can sue for civil damages. Especially if you have to drive a long distance
What car is covered up in the background near the end?
It’s a secret
I hope you plan to share because it looked cool.
C7 corvette
Help! I have negative equity. Can you help?
What kind of whip is your whip Russell?
1:40 The Russ proof!
They don't rip me off because I don't buy from them. Worked for nigh five decades so far and money saved helped pay off my mortgage.
What other product can you buy where...the EXACT same thing is sold to multiple people, all at a different price. Car dealerships have earned their sh*tty reputations.
Sometimes different banks will offer a lower interest rate if you're financing more money. That's not illegal to tell the customer they have to finance a certain amount otherwise this certain bank won't approve them.
A bank won’t lower a rate for a back end product.
@@russflipswhips Banks will lower the rate if you lower their risk. I.e GAP, Warranty.
@ that’s not true
@@russflipswhips no a bank won't lower a rate but a different bank might offer a lower rate because they have a minimum you can finance
@@russflipswhipsI've seen Santander lower the rate if you purchase gap directly through them, so there's gotta be a loophole. The lower rate was never much, like 6.89 to 6.29 or something like that
Great tips here! Happy to be a place that DOESN'T do this stuff.
Banks may not require you to buy the warranty etc, but they can indeed OFFER you a lower rate. The terminology may be true or it could be a lie. How could you prove the bank didn't offer that option?
It’s the LAW that you can’t offer a lower rate based on buying something extra
I paid 1200 down on a my 1st car and then a few days later they sold the car i put a down payment on.
I went to a Racist used car dealership and the guy was like, “You lost Boi?!!!” I left right away.
@mr.b6629 I’ll take things that never happened for $500, Alex.
Your just the cutest lil guy
I’m a man😅
My deal was only removing the dealership add ons. absurd !
While it is illegal to tying product to the rate is illegal, what can a customer do other than run? Who can the customer go to in order to report the illegal sales tactic? Most Police Departments either wont do anything or they say it is a civil matter.
Just call them out on their bs. Most will back down to an educated customer
Google the phone number of the Consumer Fraud Division for your state’s Attorney General, then report the dealer.
It's true that Tying is illegal for a dealership to do, but you are incorrect that no lenders do this. I have seen lenders offer a lower rate with backend. Cap1 is an example of this.
Not true
@@russflipswhips 100% True. I've personally seen it many times. I'm not suggesting it is right or even legal, but Cap1 Navigator does this at times.
This guy definitely shops at the smail dealerships. @@russflipswhips
Talking about dealer add-ons and while wearing a jacket that says Lincoln accessories sort of ironic.
2 different things bro… Lincoln accessories is website were consumers can order merch and dealer can order stuff for customers
Sounds... 100% like dealerships in my town smh
NEVER accept the add-on’s! Most a waste of money and super overpriced! If they require the add-on’s, head for the door. Always get the OTD price.
3:27 sir u litterly walked away from your customer that's rude
🔥
You are so beautiful 😍 😊
You are a scammer