And remember to NEVER EVER allow an answer to, "What monthly payment can you afford?" Always work off of the TOTAL price. If you negotiate monthly payments they can play with the numbers, extend how many months the financing is, and a $20,000 car can become a $30,000 car 😲😲😲
Oh yes, never answer that. It should not be about affording the car but what car you want. You can leave the financing details for after a price for the car is settled.
MGTOWBETAMALE LOL I disagree with the blanket statement of don't use dealership financing. While dealers do have a bad rap for playing games and using trick, they do have a good relationship with lenders so you can get a better intrest rate through a dealer. Here is an example: My parents bought a used truck in 2011. They went through their bank and got a rate of 6% the dealer got them a rate of 4% with no games or tricks. Also if you are buying a new car you can get 0% rate form the manufacturer.
Sometimes the manufactures have special financing that are better than the banks because they can. Also I wouldn’t say categorically not to inform on my monthly payment affordability to the dealer, because in the end you the consumer need to be smart and know what you can afford or not. If you are going for $350 per month for 48 months, then don’t take $350 per month for 60 months. It’s pretty straight forward. YOU are in charge of your finances, not some sheep. Instead I’d use my monthly amount as bargaining chip. I do so with my latest Lexus SUV and when I told the sales person the amount he said there is no way to reduce the $200 difference “where do I find that money?” He said :). I got up to leave and he said “please hold on, I can see that you are ready to buy today so let me work something out for you.” 15 minutes later he came back with an offer $15 over my asking. I frankly think we as consumers are way more savvy and in charge than we give ourselves credit.
Why do people keep perpetuating the idea that buying a new car is bad. Yes there is a value drop right after you buy it, however if you plan on driving the car for a long time 5yrs+ than the value drop is meaningless. If you don't want to drive the same car for a long time then yes a used car is a better value. What people should be saying is buy the right car for you and your situation. In 2006 my mom finally bought a new car. 10yrs and 250,000+ miles later still driving it. The depreciation was never an issue and still isn't, since she will never sell it.
I've had my Toyota Highlander for 11 years and just recently did my first tune up. I love my Toyota and they have very long lives and I should get another 110,000 miles, no problem! Why fix it if it ain't broke!
I will buy brand new BUT I know what I'm buying AND it is going to be with me until I drive like the Flintstones. I finally put my 2000 Honda Odyssey with 357,000 to rest. Well I actually had the nerve to get mad when a man wanted to buy it for $100. I sold it to him for $300. I bought it brand new. Now I'm in my 2014 Honda Accord (purchased 2013) that I purchased brand new. I take care of my vehicles so they last forever. That makes a difference too. Now if I have to replace that vehicle ever I will buy used because I am in my fifties now. Don't ask. LOLOLOLOL
You're still overpaying for the same experience. Buying a reliable used car with low miles will give you the same reliable car just without the depreciation. So it does matter
Yes I bought my Honda Odyssey brand new in 2000. It just died this year with 345,000 miles. Now I have a new Honda Accord 2014 and I will drive it to its death.
Ive learned through buying my new car experience that if you buy in the month close to their release date of their next year cars that you get a couple thousands off of your purchase. I bought my car towards the end of the year so they gave be a discount because they wanted to clear their lot for to put in next years model.
Not always. I got my 2019 toyota Corolla for 17,400 however the other car I had, the transmission needed to be replaced. I had 2,300 loan on it still. I got the offer of them dropping the 2,300 loan as well. I had been nickle and dimmed by the car already. Needed something better. I have around 40 mpg. The difference in fuel cost is the difference in new payment from old. Also moving into realestate so I'll use it as a tax write off
@@tez_foe4382 sometimes like my situation it was actually better buying new, due to the fact I did not have enough funds to purchase used, and needed a car that day. I do agree buying used In cash is good, but sometimes like myself I've been nickle and dimmed by my last few cars. So now it's in a way cheaper as I also will be using it as a tax write off. And I'll be keeping it for a very long time.
I actually need a work vehicle with specifics specs so new is the only way I can get the right vehicle. Also if its new, only buy toyota, or ford if its in the f series
Great tips and very practical advice. I can tell you from experience that using a similar tactic when renting a vehicle will allow a person to get the cheapest rental car rate. Play the rental car companies against each other. However, like many things in life, you have to be somewhat patient in order to get the best deal otherwise you will lose the leverage.
Very true. Although the stakes in a rental is a bit lower unless you are renting for a week or more. Generally, the higher the value of discount the more time you can spend trying to get it lower and still have it worth it.
I think the first thing is get pre-approve for the car loan from credit union it has a better interest rate than a regular bank; if you don't have the money yet and second buy a car that is been on the lot for a year that they try to get rid of still brand new just older model you will get a good deal out of it and last buy it on November and December that's when they try to get rid of the old model and bringing in the new model.
Good information as usual. I've bought my fair share of new vehicles so let me say this. It is possible to get 25% off MSRP but the stars do have to align. Buy a last year left over right after a significant model redesign. Don't trade or at least own most or all of your trade. Hold fast and walk out when you feel the need. Eight hours of my time was well worth the 10k I saved off the MSRP from a $40k vehicle while getting max trade value. They still have the lights on...
I brought a new Mustang 25 years ago from them dirty dog car salesmen I learned if they offer to put gas in the tank and they are happy and nice to you then you just got screwed. now I only buy used cars under 10,000 and don't let them know your there for that certain used car even though you already kept an eye on that car for days or weeks. look at other cars first, and when they ask hey buddy what are you currently driving now, just say nothing special, finally get them to shake hands on a verbal price before you give them your DRIVERS LICENSE i mistakenly gave the dirty dog mines and he ran it on this office machine and got a print out of my cars a maxima and a mercedes e55 and saw I owned a home and now he would not budge on the price. my only mistake. now I was stuck because I actually drove a one way rental from oakland to San deigo just for the car and I lied and said I was visiting my dad in san deigo so he wouldn't think I was there for that car, so I brought the car at his price because I wanted to drive it back and it was a good car not a lemon.
Nice one about keeping all that info secret until you agree on a price. You would get profiles and your price changes depending on your financial background.
You nailed it when you said leverage. That is all it takes. Know what your leverage is and know theirs. The key to the game is to maximize yours and minimize theirs. Never work with a sales person, manager only. Bring and use your own financing, Sell your trade yourself. Most important though is be be able to capitalize in real time. Car dealers are experts at disrupting and fracturing your game plan.
You're dealing with a professional so it's hard to do. I found to call time out on them to be helpful and 'discuss' with someone while you think it through. Leave if you have to.
I lucked out and got a really good deal even though I was in a hurry to get a car after an accident. I went to Edmunds and got quotes from different dealerships. I got a really low quote from the nearest dealership near me and I didn't really believe it because it was so low. I got a price that is > $2000 below the lowest Kelly Blue Book Fair Market Range price. So the reason behind the low price is there was a snow storm in Feb and they couldn't really sell many cars. Then they got more inventory in March. I went in early March and didn't need to negotiate to get that ridiculous price. On top of that I have 0.9% financing. I could have gotten 0% if I went for 3 year term but I thought it is not worth it. I originally thought it would be a bad time to buy in beginning of the year but it ended up to be the best time and I ended up with a great deal with zero negotiation. I got a car that exceeds my expectation in price and features.
When I accompanied my dad for his used car purchase we were to get s great car because we found out who the last drivers were. It was an old couple who only used the car for their daily commute so therefore with no previous car accidents with thr vehicle which told us we didn't need to fix the car much. Its always important to find out what kind of person used your car because you can get a feel how well the car was being msnaged.
It's really a shame we have to protect ourselves against shady salesmen and the shady car business in general. Someone once told me car salesmen were phlegm with legs. I've never forgotten that.
Yes, the value of a new car decreases by 30% as soon as it's driven off the lot. The problem with this way of thinking is that there are no cars on the market that have just been driven off the lot. So there are no like-new cars out there for 30% off dealer price. If you don't get a new car, you are looking at used with some mileage and therefore some work will likely be needed or at least, you won't have the car as long, thus requiring you to spend for another used car sooner. I am car shopping and the best route is looking like a cheaper new model financed at 0%. These are my conclusions after three very unpleasant months looking.
Well.... not as soon. I bet if you drive it for 10 miles and want to sell it, I bet you can sell it for 10% less? I don't know, no one will do that though. You can buy cars that are 1-5 years old. Even if you buy a cheaper new model at 0%, you will likely find an even cheaper used model that is 1-3 years old. That new car depreciation will be there no matter what if you buy a new one.
Excellent point that no one every pointed out. That 30% off is only when you sell it back to the dealer. Private owners ask more than the original price :)
This kind of tactic was used when I worked at a phone carrier with selling phones. Sometimes we were overstocked on a specific phone and sold them to break even basically which was really good prices for the customers. This happened like once every 3 months. What you do is leave your contact information with a salesman to call you when they have a really good offer. (this mostly works for small businesses, not for personal expenses)
My friends friend make upward 200k/year selling toyotas. Cardealerships do make alot of money and its probably a good idea to not pay full price for such a necessity (work, school)
Very good advice, one last thing. Extended warranties are negotiable. They may quote you $1500, but can be had for like $375. Also, the doc fees are basically a rip-off fee. So ask for "OUT THE DOOR PRICE" when negotiating.
Always good info form your vids, still don't understand how you upload everyday while I struggle to upload once a week. There is always a ton of wiggle room with it comes to buying cars and anything really. But you could also just steal a car.
good stuff, makes for a perfect time to use up some of your cash rewards/points credit cards..... When i bought my Zero SR motorcycle, i split the cost of the purchase over 4 credit cards offers that i signed up just before the decision point to purchase the bike. The bike price was $15,100 out the door, so all 4 cards had $1000 value in rewards if i spent $4,000+, so i split up the purchase onto the 4 cards placing $4,100 on 3 and the remaining on the last card. Then i spend the remaining on the 4th card to reach the $4,000 limit on new riding gear and helmet i was needing. I had a trade-in, but when i got pricing on what they would give me ($8,000) for my trade in i didn't include it on the purchase deal that day. I went around to multiple dealers to get trade values prior to the purchase and the dealership i bought the new bike from i asked them just before signing for the new bike if they would increase the value of the trade in offer if i decided to bring the bike in within the next day or so. I got it in writing and they offered to bump it up to $8300 if sold the bike to them since i bought a bike from them. So overall i got $4240 off the price of the new bike from rewards from the credit cards exchanging them for 1cent per point, then i gained an extra $300 on my trade-in by leveraging it after the purchase deal with them cutting me a check afterwards. So $15,100 - $4,540, i walked away with a new motorcycle for $10,560, making the upgrade in bikes costing me $2,560 from a bike i daily drove for 2 years.
Nice! It's the whole credit card churning thing. It's great you can get the bike for so cheap. I do the same thing except I pocket the cash, lol. ua-cam.com/video/AXXLW1OkRqg/v-deo.html
All this info is on point but also just common sense. I just wanted to see if what I do naturally while buying a new car is mentioned in this video or anything extra.
Thank you very much for this video, is good to check the county taxes as well, for example I reside in Fl. Is cheaper to drive 1/2 hour from Miami Dade to Broward. County Miami dade 7%. Broward 6%. So if you new car is 30k. You will be saving 1%. Doesn't sound much. But. Of. 30k. Or 50k. 100k. You are getting much more than the 3 gallons of gas to get there
You're welcome! Great one with the taxes and factor that in as part of the total offer. But you'll buy it from the higher tax county anyway if they offer say a $2000 discount.
Great advice. Be careful when & who you give your email to. I once made the mistake & gave it to the salesman & the next day my inbox was filled with horrible ads.
Hey they're on the stairs today 😅😅 My car is 2002 almost 200,000 miles. Mitsubishi Lancer. Still going strong lol but eventually I'll need another car. A tip I heard is to go on a rainy day. But in So Cal almost never ever rains 😅😫
Y'all are tripping🤣 my 2002 Toyota Camry just gave out on me few months ago and it was over 400k + miles on it. If the engine is fixed it can still go along way hahahahaha
I am really interested in this topic because I am 27 and about to buy my first car. The best bang for the buck I have seen is the Scion iQ. These cars tend to have only 30k-70k miles used and are priced in the $5k-$8k price range. Thats a really great deal considering it is a Toyota and 200k miles at least can be expected from the engine. My theory as to why they have low miles on them is because people dont take them on road trips. Other perks are great gas mileage, easy to park in densely populated cities and because they have low mileage on them, there isn't as much opportunity for neglect of the maintenance from previous owners. The main downside of course is that these are teeny tiny cars. Smart cars are good for the same reason. Say I bought one with 70k miles for $8k and it lasts until 200k miles. Well if I put on 13k miles a year (the yearly average for an American), then I would have the car for 18 years and the principal amount to buy the car over that time would only be $450 a year or $37 a month!
Yeah... the tiny car think make is seem like it's not as safe when wedged under a semi. Yes, if you buy a used car a few years old, it REALLY good for your pocket book if you can drive it until it's dead. Take good care of it but you will have some maintenance cost. You outline the exact way I would do things so good job on jumping ahead on your financial freedom journey!
I know that cars sold at car show is sold at 50% price of the dealership, like a $16,000 car costs $7000-$8000. Steel price is rather cheap at $150-$300 per ton, 1000kg
Dont forget to always shop around for financing rates and get preapproved before buying the car. Never go into the dealer expecting to get a good rate unless they have 0%, 0.9%, 1.9% etc and you have the credit to get those rates. You can read the fine print on the manufacturers website on what credit score you need to get that rate.
I actually used this tactic for buying a new car last year. My dad taught me these skills and it helped me tons. I hate buying a new car mainly because I'm tired of dealing with these salesmen who try to get you hooked and give you attitudes when you turn them down. It took me some time but definately worth it.
I bought a second hand car that was barely a year old and only had 8,200 km. I got it 40% less than the original price. So I kind of captured the loss via depreciation. I also paid cash and can buy it in cash ten times over which means I can easily afford it. This was my first car purchase.
I will always buy new car because we can negotiate and bring down the sticker price at-least $5000. With Free maintenance program, you don't have to worry about repair cost and other maintenance cost.
I work in car sales, and nothing is free. $5000 below sticker is normal. We sell New cars at $6-7k under MSRP all the time, but in order to get that discount, the customer must finance with our brand's finance so we make the money on the back end. We have about $150 in wiggle room which we usually offer window tint, or all weather mats to save a little of that $150. I've had people come in demanding the 0% interest and $3,000 off our internet price. They think I'm a liar when I tell them it's not possible. As a car salesman I'd rather sell multiple cars for very little profit and earn the bonuses than sell one and make a lot off of it at the customer's expense. Pushy salesmen are usually trying to make the most off of you. I've met a couple salesmen who don't want to take advantage of the customer, but most don't care if you get ripped off for $5k profit. My sales manage actually asked me how much of my $594 commission on a deal I was willing to give up, when my customer asked for $800 off a Jeep. I told my manager I'm willing to give up $200, which is 25% of the $800 he asked for. We make 25% commission of the profit made on each used car.
find an online ad that sells a car 10k with 50k miles, photo shop it to say its offering 7500 with less miles, maybe that it has a dent. email it to another dealer with a similar car and say you want the one in the ad but it is just too far away. but you will take the second dealers car for 8k because they are so close even though theirs has more miles, But only if they throw in a free oil change and maybe put a new set of tires on.
nice timing i am planning to buy a car thz month n i stumbled upon thz video ...u have given real world tricks i have been in sales so i know how precious thz information is .... thanks 👍👌
I like CPO the best, although you pay a premium over a regular used car with the same features and miles, the warranties are a lot of times better than new. Plus, you let somebody else take that deprecation hit for you.
I'm going to buy a 2002 Accord. Top trim with leather. It's on craigslist for $2400 with 130k miles. A decent vehicle that most people would have envied just 20 years ago. It's safe with airbags etc. And I save SO. MUCH. MONEY. I can drive it for 50k miles at a cost of 1k or so. If I bought a current, premium Accord the next 50k miles would probably cost me somewhere around $15k. The only difference? I can choose to pick money over vanity for a huge benefit.
An old accord does indeed save you a lot of money in the long run. Given that it is very reliable means you might not have much trouble with it. Serious? only $2400? What a steal!
4ever Young The average per year is slightly less than 9,000 miles. An older lady that drives it to church on Sunday and once during the week to a quilt shop would not put a lot of miles on a car.
I'd also suggest self-financing. Either get a loan yourself beforehand or work it out so you are borrowing from your savings and paying it back over time with interest (to match interest you lost from the withdrawal). Of course, paying cash works too. Would also recommend, buying "off the lot". Being too picky with things like options, color, serves to lock you in especially if it has to be ordered from the manufacturer or brought from another dealer/lot.
Yep, the same way dealers get salesman to devalue your trade in . basically salesman job in a " particular scenario" when it comes to car trade in, car value, not losing money, commission is to say your car is a piece of shit. I've worked in auctions too as a low paid driver for sales- is subcautious to listen to them and not crash the car while driving them through the sale. Always compare market cost, average market cost, specifications, and know what you're truly paying for. You are in control of your thinking, your life, and your cheen
Lease the car upfront without a down payment. Then immediately buy out the vehicle from the lease. You will pay MSRP or less doing this way. This method works with only high credit scores.
I heard that too and perhaps its worth to give the Costco program a try. I wonder how much lower they can buy the car for you as compared to average prices.
Costco program is just 3% over invoice or right at it. Sometimes it builds cars that aren't even possible with certain options and trims. Just ask to see invoice and you can do about 2200 back of it if you say you'll buy a warranty 1200 back. I work in sales and I think I'm going to start a blog of how to beat the dealer with a bunch of detailed posts
Get a pre approved loan from your credit union or bank then spec out the exact car you want online including all the options and color you want. If a dealer nearby has a match in inventory go there since they prefer to move straight off the lot so you can get a better price. If you have the time to shop around send emails out to every dealer in a 100 mile radius with the exact spec and color, tell them you have the financing secured and you have already made your decision, you just want to sign and go- most dealers will give you a killer deal this way because they literally spend no more than 5 minutes responding to your email, it is the quickest and easiest sale they can make so its like free money to them rather than sitting through conversations, test drives and call backs wasting countless hours that isn’t factored into their commission.
Yup. And if you have that exact info, it's easier to shop around. One thing though is to not need it right now. You need to give it time and wait days for the to respond if needed.
Downside of buying used is that the car could have been abused and it would be hard to tell. Everything could look fine but the engine is consuming oil or has a slow leaky gasket. If the seller cleans it up before sale you won't know a thing until it's too late. Be ready to fix a used car if that's the route you take.
Some of this stuff will be good for dealers who start with MSRP. In many areas though customers are already wise to the internet, and looking up prices, etc. So they are going to publishing markdowns already in a reduced advertised price. These dealers don't have $3000 to further reduce your price. Your (as the customer) research can bear this out. Check to see the going price from several dealers in the same area - then you will easily see the ones that are marked up and have room, and those who don't.
Everyone operates at a different savings level. The older a car you buy the less depreciation you have to endure. Some might want 3 year others might opt for 6 year old car.
Thanks for the information. I liked the advice to go at the end of the video. You can also check the company financial status when you check the company income of the car that you are planning to obtain. I know that is going beyond the basics but it pays off. At this moment, the auto industry is below levels since the interests rates are really low. However, Feds are starting to raise the interest hikes and that helps the cars go at a high price. I know all this info because I usually follow the stock market and the info really relates to the Auto industry. However, personally I'd stay out of new cars since they lose a lot of value really quick. But I understand why people might want to get a brand new shiny car. Thanks for the video.
Yup, the fed interest rate hike will cause auto loans to increase in the future. However, they will have a hard time increasing it at any meaningful pace less the economy reacts negatively. It will be a slow crawl up so not too worried. I think the time to get one is when you have a place fully owned, enough to retire one, and money over that you can go buy a new car. Before that, buying back your time is more important than a new car.
The dealer is going to give you a deal that benefits them the most. A credit union sounds like a great way to finance it although I wouldn't even do that if you want to save even more via buying it with cash.
I can't afford a new car, what I cannot afford, I usually do not get. BTW, can you please make a video on skipping holiday fiasco to save money? I am considering to skip all holidays to save money!
Exactly how I bought my Sienna, I went to the dealership on the 25th and they treated me like shit, I went to another Toyota dealership on Memorial Day and they need to meet their monthly quota so they sold me a Toyota SE premium with $600 under invoice. You shouldn't buy new cars, but there are certain brands that are worth buying new specially if the depreciation is very slow on these brad's models.
The depreciation might be low enough to justify the new car premium. If you can find the same car for 2-3 years, you are bound to buy it for 1000s less. So that is what you pay for the new-ness.
Good points, but how are you going to get details about your financing if you haven't visited the dealer in the first place? They won't give you a letter with a loan amount and APR if they don't run your credit report and verify employment, etc. I would add to your analysis to simply get pre-approved by a lending company first so now you can negotiate much better with the car dealerships ... because you have cash in hand. Good points, though ....
If you do all of this online for a used car, how do you negotiate the price because you haven't even seen it or test driven it? I like the idea of negotiating online and over the phone.
For a used one, you'll need to find a similar car in different dealerships. This method is mainly for new cars, the methods will drastically be different for used.
BeatTheBush, there is another video out there where this guy says truecars is a scam, he showed the truecars prices were higher than going to the dealership website and looking at there sticker...
my friend did the exact opposite of what you recommend she traded in a car with negative equity that gave her a whopping 500$ on her car sale she financed it over 6 years at 10 % and BTW it was a brand new car. stupid on steroids, now the car sits on the 4th year of its life with a faulty transmission in a parking lot.
Your intro is too long and wordy.Also your tone and pacing sound monotonous. I say this to you because I do like your info but you could do with a bit of 'spicing up' and attract even more views. Go get em' : )
That is by far the best financial advice. Let someone else (aka the "sucker") take the inevitable initial depreciation hit. New car dealerships paid Congress for an exemption from the Federal CFPB regulations for a good reason! My own car is 19 years old and still a joy to own and drive. On three occasions, people have approached me in parking lots to ask whether it might be for sale. Nope, hopefully never.
If the car you want is in very high demand, you can basically forget negotiating altogether. Cars with very enthusiastic cultures behind them will always include a premium. Take the new Honda Civic Type R, for instance. Those cars technically start at around $35k but since the demand is so high, some people are paying $15-25k OVER the sticker price just to get theirs right away so this $35k car is actually bringing $45-60k. If getting a good deal on a car is important to you, stick to cars which are made in vast quantities and which do not have that sort of high public demand.
Your dinosaur is always with bad temper. Maybe he want to say something and you will not let him. Good advise on buying a new car. The key then is not to look too interested in buying from the dealer.
Lol... he is a ferocious t-rex after all. A wild animal but only very tiny. But you need to be a near term buyer and hence be interested enough to get good service.
There is no such a thing as a best price.. and that's the dumbest way to buy a car. Especially now a days of you think dealers are going to throw out there best number over the phone or though a email y'all are crazy😂 go to the dealership ready to buy a car then negotiate just like everybody else that's when the your so called best price comes out.
What do you think about using the dealers financing and letting them charge you any interest rate as long as you got a great deal on the price? Then when pay it off in full when the first payment is due. I’m just trying to explore ways to get the best deal.
New! Think of the depreciation. Good point. I prefer to buy a 3 or 4 year old car and that way you can pay for cash. F**k finance is my top tip for the day.
I signed to pay $25,000 for a used Chevy impala lt. Everyone’s telling me no Chevy on earth is worth $25,000. So today I have $22,000 left that’s due on it. How can I get out of this and into something else ?
Dude 1k to 2k? Thats the bear minimum you would work off the price....try 4k and 6k+ if its last year model......these new car buy tip videos all say the same thing without giving the price range of what is,considered a good deal. 30k car 3k 4k off is good, 5k+ for last year model.....50k car maybe 7k+ off. U dont even have to make them bid against each other.....you dont even have to try and they'll knock 1k - 2k off.......
What about gap insurance? I'm scared if I wreck the car the insurance will only pay what it's worth and I'll be stuck paying the rest. I know a friend who wrecked his car, he was way upside down and now he has a wrecked car in his yard that he's still making payments on.
How to solve this? Don't buy a new car and buy one you can pay cash on. If you cannot, then you have to save up longer or buy a cheaper used car. This is the ultimate way to save.
Property Taxes, Auto Insurance and Vehicle Maintenance Expenses are just too high. If only the U.S. had a decent public transport system like Europe, China, Korea and Japan.
There are a few smudges on the ceiling but other than that the car is clean. The rental companies do regular maintenance on their cars. I think the best part is that you get to drive the car for three days as a rental before you decide to buy or not.
2:45 "give a zip code that's near that dealership because then they would not know that you're actually shopping around" Don't you want them to think your shopping around so they'll think they have to compete with other dealerships so they'll lower their price?
BeatTheBush, I thought you were going to show us how to buy a car cheaper, all I heard was you talking where is the flowchart? most people already know that... you didn't say anything about the invoice, the MSRP, rebates, incentives, holback etc.
I think the only car I ever bought from a dealership was the first car I ever bought, I paid $150 and had to replace the head gaskets and rear shocks and the heater core needed to be replaced, all the rest I have bought from individuals. Your advice sounds good but I don't know that I would buy from a dealership again because I don't know if you can get a good deal from them. I remember talking to a dealer years ago where the price was cheaper if you did not have a trade in, so a person is actually paying the dealership to take their old car/truck.
@@BeatTheBush I think you misunderstood what I said, they don't give you any credit at all for your trade in they charge you to take it, you can buy whatever car they are selling for less if you keep your old car. All dealerships may not do things they way they did, I don't know. Generally speaking all used car dealers are considered to be crooks.
I suggest getting your own fiancing through a personal loan (credit union) and tell the dealer you are paying cash. Then you can avoid all the finance charges. There is a list of 2017 cheapest cars where your note can be under $200 a month.
Miss desire Independance In sold cars at a major dealership. In short, there's not much difference for the dealership whether you pay cash or take out a loan. Although they make more money when you finance and even more when a customer leases the car...
I think you should have mentioned securing ones financing outside the dealerships, i.e. credit union, or bank. Taking away the dealerships opportunity to make money on the loan they approve by adding percentages to the APR.
In short. It's because it wastes a lot of money and I prefer to buy time rather than spend the money. More info here: ua-cam.com/video/faSsTAhc_Vc/v-deo.html
Just picked up a 2003 Mercury Sable with 36000 miles on it. It was sitting in a garage in Pasadena the last 5 years. Leather, all the bells and whistles, my mechanic said, "it is in very good condition". I paid 3250, mostly because it is quite clean.
Hello, BeatTheBush! I have been watching your videos for a few days and I found very useful information in most of them, but now I wanna ask a question! I work with pizza delivery, I from Brazil and here everything is expensive, I work with a motorcycle and now I need a more powerful one, for personal porpoises and some work related as well. Do you think it's better to buy another and keep two or sell this and just get the more powerful and keep as my only bike? Keep in mind that I have no debt relate to my actual bike, just taxes related ones.
Having another motorcycle means added cost to own. You'll have two parking spots, registration, upkeep, etc. You have to drive both alternating between them to keep them in good condition. You could be putting a lot of miles on the bike with pizza delivery so perhaps you want to put them on the old bike and keep the miles off your new one. It's a big trade off here so you could add in depreciation due to mileage to the mix after a few years to see if its worth it to keep it.
They can do that if they want. I actually prefer this which keep the headaches away. If the price is set and not higher than average price in other areas where dealers negotiate price then I wouldn't mind.
How to make saving money difficult? Buy a car and start paying insurance, repairs, tolls, fuel, gas tax, parking, tickets, license plates, municipality registration, and spend time in traffic.
Having a car is indeed a huge drain on your cashflow. Sometimes it's not possible to avoid unless you're able to find a job close by within biking distance.
I realize the dealership makes money through making the customer finance, but isn't it also better for the dealership to get the total price cash up front? I thought you had more leverage by letting them know that you have the cash to drop right then and there?
And remember to NEVER EVER allow an answer to, "What monthly payment can you afford?"
Always work off of the TOTAL price. If you negotiate monthly payments they can play with the numbers, extend how many months the financing is, and a $20,000 car can become a $30,000 car 😲😲😲
Oh yes, never answer that. It should not be about affording the car but what car you want. You can leave the financing details for after a price for the car is settled.
MGTOWBETAMALE LOL
I disagree with the blanket statement of don't use dealership financing. While dealers do have a bad rap for playing games and using trick, they do have a good relationship with lenders so you can get a better intrest rate through a dealer. Here is an example: My parents bought a used truck in 2011. They went through their bank and got a rate of 6% the dealer got them a rate of 4% with no games or tricks. Also if you are buying a new car you can get 0% rate form the manufacturer.
u just answerd your own question dont tick up a car buy it with cash
gummywurms226 where do you go to buy the car straight from the manufacturer
Sometimes the manufactures have special financing that are better than the banks because they can. Also I wouldn’t say categorically not to inform on my monthly payment affordability to the dealer, because in the end you the consumer need to be smart and know what you can afford or not. If you are going for $350 per month for 48 months, then don’t take $350 per month for 60 months. It’s pretty straight forward. YOU are in charge of your finances, not some sheep. Instead I’d use my monthly amount as bargaining chip. I do so with my latest Lexus SUV and when I told the sales person the amount he said there is no way to reduce the $200 difference “where do I find that money?” He said :). I got up to leave and he said “please hold on, I can see that you are ready to buy today so let me work something out for you.” 15 minutes later he came back with an offer $15 over my asking. I frankly think we as consumers are way more savvy and in charge than we give ourselves credit.
Why do people keep perpetuating the idea that buying a new car is bad. Yes there is a value drop right after you buy it, however if you plan on driving the car for a long time 5yrs+ than the value drop is meaningless. If you don't want to drive the same car for a long time then yes a used car is a better value. What people should be saying is buy the right car for you and your situation. In 2006 my mom finally bought a new car. 10yrs and 250,000+ miles later still driving it. The depreciation was never an issue and still isn't, since she will never sell it.
I've had my Toyota Highlander for 11 years and just recently did my first tune up. I love my Toyota and they have very long lives and I should get another 110,000 miles, no problem! Why fix it if it ain't broke!
Carol Jenny my truck is a 2004 model. Had to very little repairs along the way. It is still in great shape. I hope it lasts another 14 years
I will buy brand new BUT I know what I'm buying AND it is going to be with me until I drive like the Flintstones. I finally put my 2000 Honda Odyssey with 357,000 to rest. Well I actually had the nerve to get mad when a man wanted to buy it for $100. I sold it to him for $300. I bought it brand new. Now I'm in my 2014 Honda Accord (purchased 2013) that I purchased brand new. I take care of my vehicles so they last forever. That makes a difference too. Now if I have to replace that vehicle ever I will buy used because I am in my fifties now. Don't ask. LOLOLOLOL
You're still overpaying for the same experience. Buying a reliable used car with low miles will give you the same reliable car just without the depreciation. So it does matter
Yes I bought my Honda Odyssey brand new in 2000. It just died this year with 345,000 miles. Now I have a new Honda Accord 2014 and I will drive it to its death.
Ive learned through buying my new car experience that if you buy in the month close to their release date of their next year cars that you get a couple thousands off of your purchase. I bought my car towards the end of the year so they gave be a discount because they wanted to clear their lot for to put in next years model.
Never buy a new car. It's a tremendous waste of money. Buy a used car, and pay cash for it.
Not always. I got my 2019 toyota Corolla for 17,400 however the other car I had, the transmission needed to be replaced. I had 2,300 loan on it still. I got the offer of them dropping the 2,300 loan as well. I had been nickle and dimmed by the car already. Needed something better. I have around 40 mpg. The difference in fuel cost is the difference in new payment from old. Also moving into realestate so I'll use it as a tax write off
@@semperfi-1918 , Save Money By Buying A 'Reliable Used Car.'
@@tez_foe4382 sometimes like my situation it was actually better buying new, due to the fact I did not have enough funds to purchase used, and needed a car that day. I do agree buying used In cash is good, but sometimes like myself I've been nickle and dimmed by my last few cars. So now it's in a way cheaper as I also will be using it as a tax write off. And I'll be keeping it for a very long time.
Or get a tacoma the truck the depreciates the least
I actually need a work vehicle with specifics specs so new is the only way I can get the right vehicle. Also if its new, only buy toyota, or ford if its in the f series
Great tips and very practical advice. I can tell you from experience that using a similar tactic when renting a vehicle will allow a person to get the cheapest rental car rate. Play the rental car companies against each other. However, like many things in life, you have to be somewhat patient in order to get the best deal otherwise you will lose the leverage.
Very true. Although the stakes in a rental is a bit lower unless you are renting for a week or more. Generally, the higher the value of discount the more time you can spend trying to get it lower and still have it worth it.
Priceline name your own price works well
Goal: buy $2000 under invoice. (Dealer still makes $2000 via hidden rebates from the manufacturer).
What's under invoice?
I think the first thing is get pre-approve for the car loan from credit union it has a better interest rate than a regular bank; if you don't have the money yet and second buy a car that is been on the lot for a year that they try to get rid of still brand new just older model you will get a good deal out of it and last buy it on November and December that's when they try to get rid of the old model and bringing in the new model.
Nice points for an older car.
Good information as usual. I've bought my fair share of new vehicles so let me say this. It is possible to get 25% off MSRP but the stars do have to align. Buy a last year left over right after a significant model redesign. Don't trade or at least own most or all of your trade. Hold fast and walk out when you feel the need. Eight hours of my time was well worth the 10k I saved off the MSRP from a $40k vehicle while getting max trade value. They still have the lights on...
I agree. If you spend that amount of time on it then it's well worth your time for potential thousands off. 10k in your case.
I brought a new Mustang 25 years ago from them dirty dog car salesmen I learned if they offer to put gas in the tank and they are happy and nice to you then you just got screwed. now I only buy used cars under 10,000 and don't let them know your there for that certain used car even though you already kept an eye on that car for days or weeks. look at other cars first, and when they ask hey buddy what are you currently driving now, just say nothing special, finally get them to shake hands on a verbal price before you give them your DRIVERS LICENSE i mistakenly gave the dirty dog mines and he ran it on this office machine and got a print out of my cars a maxima and a mercedes e55 and saw I owned a home and now he would not budge on the price. my only mistake. now I was stuck because I actually drove a one way rental from oakland to San deigo just for the car and I lied and said I was visiting my dad in san deigo so he wouldn't think I was there for that car, so I brought the car at his price because I wanted to drive it back and it was a good car not a lemon.
Nice one about keeping all that info secret until you agree on a price. You would get profiles and your price changes depending on your financial background.
You nailed it when you said leverage. That is all it takes. Know what your leverage is and know theirs. The key to the game is to maximize yours and minimize theirs. Never work with a sales person, manager only. Bring and use your own financing, Sell your trade yourself. Most important though is be be able to capitalize in real time. Car dealers are experts at disrupting and fracturing your game plan.
You're dealing with a professional so it's hard to do. I found to call time out on them to be helpful and 'discuss' with someone while you think it through. Leave if you have to.
I lucked out and got a really good deal even though I was in a hurry to get a car after an accident. I went to Edmunds and got quotes from different dealerships. I got a really low quote from the nearest dealership near me and I didn't really believe it because it was so low. I got a price that is > $2000 below the lowest Kelly Blue Book Fair Market Range price. So the reason behind the low price is there was a snow storm in Feb and they couldn't really sell many cars. Then they got more inventory in March. I went in early March and didn't need to negotiate to get that ridiculous price. On top of that I have 0.9% financing. I could have gotten 0% if I went for 3 year term but I thought it is not worth it. I originally thought it would be a bad time to buy in beginning of the year but it ended up to be the best time and I ended up with a great deal with zero negotiation. I got a car that exceeds my expectation in price and features.
When I accompanied my dad for his used car purchase we were to get s great car because we found out who the last drivers were. It was an old couple who only used the car for their daily commute so therefore with no previous car accidents with thr vehicle which told us we didn't need to fix the car much. Its always important to find out what kind of person used your car because you can get a feel how well the car was being msnaged.
It's really a shame we have to protect ourselves against shady salesmen and the shady car business in general. Someone once told me car salesmen were phlegm with legs. I've never forgotten that.
Luckily, it seems the industry is slightly moving away from that where sometimes new cars are flat pricing.
I rely on public transport 😁 But I still watched the video :) Thanks Wendy and BtB
Well, in case you might want to help out a friend that wants a new car right?
BeatTheBush
RoyalDomi me too
wtf dont rely on nething these days the boss will use that against you
Yes, the value of a new car decreases by 30% as soon as it's driven off the lot. The problem with this way of thinking is that there are no cars on the market that have just been driven off the lot. So there are no like-new cars out there for 30% off dealer price. If you don't get a new car, you are looking at used with some mileage and therefore some work will likely be needed or at least, you won't have the car as long, thus requiring you to spend for another used car sooner. I am car shopping and the best route is looking like a cheaper new model financed at 0%. These are my conclusions after three very unpleasant months looking.
Well.... not as soon. I bet if you drive it for 10 miles and want to sell it, I bet you can sell it for 10% less? I don't know, no one will do that though.
You can buy cars that are 1-5 years old. Even if you buy a cheaper new model at 0%, you will likely find an even cheaper used model that is 1-3 years old. That new car depreciation will be there no matter what if you buy a new one.
Excellent point that no one every pointed out. That 30% off is only when you sell it back to the dealer. Private owners ask more than the original price :)
This kind of tactic was used when I worked at a phone carrier with selling phones. Sometimes we were overstocked on a specific phone and sold them to break even basically which was really good prices for the customers. This happened like once every 3 months. What you do is leave your contact information with a salesman to call you when they have a really good offer. (this mostly works for small businesses, not for personal expenses)
Nice one with leaving contact info. Means you have time and will wait for a great deal.
My friends friend make upward 200k/year selling toyotas. Cardealerships do make alot of money and its probably a good idea to not pay full price for such a necessity (work, school)
Very good advice, one last thing. Extended warranties are negotiable. They may quote you $1500, but can be had for like $375. Also, the doc fees are basically a rip-off fee. So ask for "OUT THE DOOR PRICE" when negotiating.
I love Beatin' The Bush, no pun intended.
LOL. Sigh...
^These will never end. On the bright side, at least the name intrigues people to be curious enough to check out your videos? 😁😁😁
Thanks for sharing this with me
If only most of this applied to me in my country
Always good info form your vids, still don't understand how you upload everyday while I struggle to upload once a week. There is always a ton of wiggle room with it comes to buying cars and anything really.
But you could also just steal a car.
Successful Minds next one beatthebush, how to steal a car to save 100% and avoid high apr
Lol... stealing a car could work but then life of crime isn't the way to live prosperously for a long time.
Successful Minds I saw you on Valuetainment
IF you steal the car you will live for the next 5 years without car payments - weather you get away with it or you don't.
good stuff, makes for a perfect time to use up some of your cash rewards/points credit cards..... When i bought my Zero SR motorcycle, i split the cost of the purchase over 4 credit cards offers that i signed up just before the decision point to purchase the bike. The bike price was $15,100 out the door, so all 4 cards had $1000 value in rewards if i spent $4,000+, so i split up the purchase onto the 4 cards placing $4,100 on 3 and the remaining on the last card. Then i spend the remaining on the 4th card to reach the $4,000 limit on new riding gear and helmet i was needing. I had a trade-in, but when i got pricing on what they would give me ($8,000) for my trade in i didn't include it on the purchase deal that day. I went around to multiple dealers to get trade values prior to the purchase and the dealership i bought the new bike from i asked them just before signing for the new bike if they would increase the value of the trade in offer if i decided to bring the bike in within the next day or so. I got it in writing and they offered to bump it up to $8300 if sold the bike to them since i bought a bike from them. So overall i got $4240 off the price of the new bike from rewards from the credit cards exchanging them for 1cent per point, then i gained an extra $300 on my trade-in by leveraging it after the purchase deal with them cutting me a check afterwards. So $15,100 - $4,540, i walked away with a new motorcycle for $10,560, making the upgrade in bikes costing me $2,560 from a bike i daily drove for 2 years.
Nice! It's the whole credit card churning thing. It's great you can get the bike for so cheap. I do the same thing except I pocket the cash, lol. ua-cam.com/video/AXXLW1OkRqg/v-deo.html
I like that lamp...
All this info is on point but also just common sense. I just wanted to see if what I do naturally while buying a new car is mentioned in this video or anything extra.
Thank you very much for this video, is good to check the county taxes as well, for example I reside in Fl. Is cheaper to drive 1/2 hour from Miami Dade to Broward. County Miami dade 7%. Broward 6%. So if you new car is 30k. You will be saving 1%. Doesn't sound much. But. Of. 30k. Or 50k. 100k. You are getting much more than the 3 gallons of gas to get there
You're welcome! Great one with the taxes and factor that in as part of the total offer. But you'll buy it from the higher tax county anyway if they offer say a $2000 discount.
Great advice. Be careful when & who you give your email to. I once made the mistake & gave it to the salesman & the next day my inbox was filled with horrible ads.
TRUE!!
They did that with my phone number!
Hey they're on the stairs today 😅😅
My car is 2002 almost 200,000 miles. Mitsubishi Lancer. Still going strong lol but eventually I'll need another car. A tip I heard is to go on a rainy day. But in So Cal almost never ever rains 😅😫
Whoa... that's more miles than mine. I had a car go all the way to 270k miles before, lol.
BeatTheBush wow what car did you have that made it to 270k?
If you're in CA go during Fires..:-)
Steve F 😩😂
Y'all are tripping🤣 my 2002 Toyota Camry just gave out on me few months ago and it was over 400k + miles on it. If the engine is fixed it can still go along way hahahahaha
I am really interested in this topic because I am 27 and about to buy my first car. The best bang for the buck I have seen is the Scion iQ. These cars tend to have only 30k-70k miles used and are priced in the $5k-$8k price range. Thats a really great deal considering it is a Toyota and 200k miles at least can be expected from the engine. My theory as to why they have low miles on them is because people dont take them on road trips. Other perks are great gas mileage, easy to park in densely populated cities and because they have low mileage on them, there isn't as much opportunity for neglect of the maintenance from previous owners. The main downside of course is that these are teeny tiny cars. Smart cars are good for the same reason.
Say I bought one with 70k miles for $8k and it lasts until 200k miles. Well if I put on 13k miles a year (the yearly average for an American), then I would have the car for 18 years and the principal amount to buy the car over that time would only be $450 a year or $37 a month!
Yeah... the tiny car think make is seem like it's not as safe when wedged under a semi.
Yes, if you buy a used car a few years old, it REALLY good for your pocket book if you can drive it until it's dead. Take good care of it but you will have some maintenance cost. You outline the exact way I would do things so good job on jumping ahead on your financial freedom journey!
I thought that steak by the dinosaur was the Tesla logo...
LOL, someone said that also, I that that was so clever.
Had no idea it was his food 😅
Nice content! Keep it up!
Thanks! =D
I know that cars sold at car show is sold at 50% price of the dealership, like a $16,000 car costs $7000-$8000. Steel price is rather cheap at $150-$300 per ton, 1000kg
Interesting. Is it? Perhaps they give a great deal because the car has been looked at and sat in numerous times?
Dont forget to always shop around for financing rates and get preapproved before buying the car. Never go into the dealer expecting to get a good rate unless they have 0%, 0.9%, 1.9% etc and you have the credit to get those rates. You can read the fine print on the manufacturers website on what credit score you need to get that rate.
Best way to get a good price: take hostages
uhhhhh... that sounds illegal. =P
I actually used this tactic for buying a new car last year. My dad taught me these skills and it helped me tons. I hate buying a new car mainly because I'm tired of dealing with these salesmen who try to get you hooked and give you attitudes when you turn them down. It took me some time but definately worth it.
In terms of dollar per house that you save, it's worth it certainly.
I bought a second hand car that was barely a year old and only had 8,200 km. I got it 40% less than the original price. So I kind of captured the loss via depreciation. I also paid cash and can buy it in cash ten times over which means I can easily afford it. This was my first car purchase.
I will always buy new car because we can negotiate and bring down the sticker price at-least $5000. With Free maintenance program, you don't have to worry about repair cost and other maintenance cost.
Hmmm. Well, when you buy a new car, no matter how much you negotiate down, you are still going to take a huge hit on the first year.
I work in car sales, and nothing is free. $5000 below sticker is normal. We sell New cars at $6-7k under MSRP all the time, but in order to get that discount, the customer must finance with our brand's finance so we make the money on the back end. We have about $150 in wiggle room which we usually offer window tint, or all weather mats to save a little of that $150. I've had people come in demanding the 0% interest and $3,000 off our internet price. They think I'm a liar when I tell them it's not possible. As a car salesman I'd rather sell multiple cars for very little profit and earn the bonuses than sell one and make a lot off of it at the customer's expense. Pushy salesmen are usually trying to make the most off of you. I've met a couple salesmen who don't want to take advantage of the customer, but most don't care if you get ripped off for $5k profit. My sales manage actually asked me how much of my $594 commission on a deal I was willing to give up, when my customer asked for $800 off a Jeep. I told my manager I'm willing to give up $200, which is 25% of the $800 he asked for. We make 25% commission of the profit made on each used car.
find an online ad that sells a car 10k with 50k miles, photo shop it to say its offering 7500 with less miles, maybe that it has a dent. email it to another dealer with a similar car and say you want the one in the ad but it is just too far away. but you will take the second dealers car for 8k because they are so close even though theirs has more miles, But only if they throw in a free oil change and maybe put a new set of tires on.
Hmmm.... this is a bit in the grey area here since it involves deception. If it works for you then by all means but I wouldn't feel right doing this.
xCCflierx was my
Question... should the sales tax be based on (1) agreed price, (2) MSRP or (3) Invoice?
Thanks.
nice timing i am planning to buy a car thz month n i stumbled upon thz video ...u have given real world tricks i have been in sales so i know how precious thz information is .... thanks 👍👌
=D You're welcome.
Depreciation starts the minute you drive off the LOT! Sometimes driving off that lot, you loose 10k already!
Good timing. I have several car lots bugging me to death right now. And im in no rush. I plan to get the best deal possible. Thanks a bunch
You don't have to fill you lot with cars lol.
I like CPO the best, although you pay a premium over a regular used car with the same features and miles, the warranties are a lot of times better than new. Plus, you let somebody else take that deprecation hit for you.
Kbb is owned by big used car dealership corporate there for they set the price to maximize their profit.
I'm going to buy a 2002 Accord. Top trim with leather. It's on craigslist for $2400 with 130k miles. A decent vehicle that most people would have envied just 20 years ago. It's safe with airbags etc. And I save SO. MUCH. MONEY. I can drive it for 50k miles at a cost of 1k or so. If I bought a current, premium Accord the next 50k miles would probably cost me somewhere around $15k. The only difference? I can choose to pick money over vanity for a huge benefit.
An old accord does indeed save you a lot of money in the long run. Given that it is very reliable means you might not have much trouble with it. Serious? only $2400? What a steal!
Yeah I know! It's really nice with leather etc. haha. really a steal.
Be careful, that generation of accord had major problems with the automatic transmissions
Mark Brand....15 years old car with only 130k miles. Look suspicious too me.
4ever Young The average per year is slightly less than 9,000 miles.
An older lady that drives it to church on Sunday and once during the week to a quilt shop would not put a lot of miles on a car.
I'd also suggest self-financing. Either get a loan yourself beforehand or work it out so you are borrowing from your savings and paying it back over time with interest (to match interest you lost from the withdrawal). Of course, paying cash works too. Would also recommend, buying "off the lot". Being too picky with things like options, color, serves to lock you in especially if it has to be ordered from the manufacturer or brought from another dealer/lot.
Save lots of financing fees indeed. If one has the option... save enough to be able to buy it in full.
I just realized the peas in the back keep changing location XD Cute!
Ha! Yes they do! =D
that zip code trick is interesting
services and
cash / finance
looking for a prius two
lowest offer was 21000 out the door.
bay area
=D Best thing you got is time. You have to seem interested and about to pull the trigger, that is when they give you the most attention.
Use a burner phone #.
Yep, the same way dealers get salesman to devalue your trade in . basically salesman job in a " particular scenario" when it comes to car trade in, car value, not losing money, commission is to say your car is a piece of shit.
I've worked in auctions too as a low paid driver for sales- is subcautious to listen to them and not crash the car while driving them through the sale.
Always compare market cost, average market cost, specifications, and know what you're truly paying for.
You are in control of your thinking, your life, and your cheen
Lease the car upfront without a down payment. Then immediately buy out the vehicle from the lease. You will pay MSRP or less doing this way. This method works with only high credit scores.
You can keep some money near 0% for some time but how much does this buy you if the care is not too expensive? Just a durable and low priced car.
honestly, your advice is legit, i subscribed
Thanks for your sub!
Costco has a good auto program. Good advice with the end of the mth advise I heard the end of the year is also a good time to shop
I heard that too and perhaps its worth to give the Costco program a try. I wonder how much lower they can buy the car for you as compared to average prices.
Costco program is just 3% over invoice or right at it. Sometimes it builds cars that aren't even possible with certain options and trims. Just ask to see invoice and you can do about 2200 back of it if you say you'll buy a warranty 1200 back. I work in sales and I think I'm going to start a blog of how to beat the dealer with a bunch of detailed posts
You would be a better Economist, than an engineer.
Ha ha. I have no idea what a economist does for a living. Make UA-cam videos? =D
@@BeatTheBush your like a younger Thomas Sowell
Get a pre approved loan from your credit union or bank then spec out the exact car you want online including all the options and color you want. If a dealer nearby has a match in inventory go there since they prefer to move straight off the lot so you can get a better price. If you have the time to shop around send emails out to every dealer in a 100 mile radius with the exact spec and color, tell them you have the financing secured and you have already made your decision, you just want to sign and go- most dealers will give you a killer deal this way because they literally spend no more than 5 minutes responding to your email, it is the quickest and easiest sale they can make so its like free money to them rather than sitting through conversations, test drives and call backs wasting countless hours that isn’t factored into their commission.
Yup. And if you have that exact info, it's easier to shop around. One thing though is to not need it right now. You need to give it time and wait days for the to respond if needed.
Downside of buying used is that the car could have been abused and it would be hard to tell. Everything could look fine but the engine is consuming oil or has a slow leaky gasket. If the seller cleans it up before sale you won't know a thing until it's too late. Be ready to fix a used car if that's the route you take.
Get it checked by a trusted mechanic.
Awesome video
Thanks! =D
Some of this stuff will be good for dealers who start with MSRP. In many areas though customers are already wise to the internet, and looking up prices, etc. So they are going to publishing markdowns already in a reduced advertised price. These dealers don't have $3000 to further reduce your price. Your (as the customer) research can bear this out. Check to see the going price from several dealers in the same area - then you will easily see the ones that are marked up and have room, and those who don't.
A 1-3 year old used car with below average miles is the way to go to get the best price and value. Let someone else eat that depreciation.
Everyone operates at a different savings level. The older a car you buy the less depreciation you have to endure. Some might want 3 year others might opt for 6 year old car.
Thanks for the information. I liked the advice to go at the end of the video. You can also check the company financial status when you check the company income of the car that you are planning to obtain. I know that is going beyond the basics but it pays off. At this moment, the auto industry is below levels since the interests rates are really low. However, Feds are starting to raise the interest hikes and that helps the cars go at a high price. I know all this info because I usually follow the stock market and the info really relates to the Auto industry.
However, personally I'd stay out of new cars since they lose a lot of value really quick. But I understand why people might want to get a brand new shiny car.
Thanks for the video.
Yup, the fed interest rate hike will cause auto loans to increase in the future. However, they will have a hard time increasing it at any meaningful pace less the economy reacts negatively. It will be a slow crawl up so not too worried.
I think the time to get one is when you have a place fully owned, enough to retire one, and money over that you can go buy a new car. Before that, buying back your time is more important than a new car.
plus I heard its good to get financed at a credit union before you go to the dealer because I heard the dealer interest is higher
The dealer is going to give you a deal that benefits them the most. A credit union sounds like a great way to finance it although I wouldn't even do that if you want to save even more via buying it with cash.
NOOOOO, really???????? God, people are so fucking dumb.
BeatTheBush THE TOYOTA DEALERSHIP SALESMAN TOLD ME I WOULD ACTUALLY PAY MORE MONEY IG I TRIED TO BUY A NEW CAR IN CASH...ANY INFO ON THIS MATTER?
ERICK RAMIREZ You do all the negotiating on the final price and then present cash when that is written.
Always get the FINAL drive off the lot price before you come in. No changes, no admin fees, nothing more!!
I can't afford a new car, what I cannot afford, I usually do not get. BTW, can you please make a video on skipping holiday fiasco to save money? I am considering to skip all holidays to save money!
Exactly how I bought my Sienna, I went to the dealership on the 25th and they treated me like shit, I went to another Toyota dealership on Memorial Day and they need to meet their monthly quota so they sold me a Toyota SE premium with $600 under invoice. You shouldn't buy new cars, but there are certain brands that are worth buying new specially if the depreciation is very slow on these brad's models.
The depreciation might be low enough to justify the new car premium. If you can find the same car for 2-3 years, you are bound to buy it for 1000s less. So that is what you pay for the new-ness.
Good points, but how are you going to get details about your financing if you haven't visited the dealer in the first place? They won't give you a letter with a loan amount and APR if they don't run your credit report and verify employment, etc. I would add to your analysis to simply get pre-approved by a lending company first so now you can negotiate much better with the car dealerships ... because you have cash in hand. Good points, though ....
finally, an ad I watched all the way thru - Rapha :)
The heck is Rapha.
Rapha is cycling apparel brand. :)
If you do all of this online for a used car, how do you negotiate the price because you haven't even seen it or test driven it? I like the idea of negotiating online and over the phone.
For a used one, you'll need to find a similar car in different dealerships. This method is mainly for new cars, the methods will drastically be different for used.
BeatTheBush, there is another video out there where this guy says truecars is a scam, he showed the truecars prices were higher than going to the dealership website and looking at there sticker...
my friend did the exact opposite of what you recommend she traded in a car with negative equity that gave her a whopping 500$ on her car sale she financed it over 6 years at 10 % and BTW it was a brand new car. stupid on steroids, now the car sits on the 4th year of its life with a faulty transmission in a parking lot.
Any time you make a financial transaction, if you are dealing with a car dealership, look to lose thousands of dollars in value.
Never buy a new car
I agree. UNLESS you are already retired and have extra on top of that. Then you might want to enjoy some luxuries of life that you can afford.
Your intro is too long and wordy.Also your tone and pacing sound monotonous. I say this to you because I do like your info but you could do with a bit of 'spicing up' and attract even more views. Go get em' : )
Ed Denoy shutup
That is by far the best financial advice. Let someone else (aka the "sucker") take the inevitable initial depreciation hit. New car dealerships paid Congress for an exemption from the Federal CFPB regulations for a good reason! My own car is 19 years old and still a joy to own and drive. On three occasions, people have approached me in parking lots to ask whether it might be for sale. Nope, hopefully never.
What opinion/advice you have leasing cars? Thank you!
If the car you want is in very high demand, you can basically forget negotiating altogether. Cars with very enthusiastic cultures behind them will always include a premium.
Take the new Honda Civic Type R, for instance. Those cars technically start at around $35k but since the demand is so high, some people are paying $15-25k OVER the sticker price just to get theirs right away so this $35k car is actually bringing $45-60k. If getting a good deal on a car is important to you, stick to cars which are made in vast quantities and which do not have that sort of high public demand.
High demand cars will have to pay a markup even. They can sell it to someone else.
Loving the vids bruh.
Thanks! =D
Your dinosaur is always with bad temper. Maybe he want to say something and you will not let him. Good advise on buying a new car. The key then is not to look too interested in buying from the dealer.
Lol... he is a ferocious t-rex after all. A wild animal but only very tiny. But you need to be a near term buyer and hence be interested enough to get good service.
What about building and pricing a car
There is no such a thing as a best price.. and that's the dumbest way to buy a car. Especially now a days of you think dealers are going to throw out there best number over the phone or though a email y'all are crazy😂 go to the dealership ready to buy a car then negotiate just like everybody else that's when the your so called best price comes out.
What about the part where you should always test dive it? Shouldn't that be at the beginning so you know you even want the car?
What do you think about using the dealers financing and letting them charge you any interest rate as long as you got a great deal on the price? Then when pay it off in full when the first payment is due. I’m just trying to explore ways to get the best deal.
New! Think of the depreciation. Good point. I prefer to buy a 3 or 4 year old car and that way you can pay for cash. F**k finance is my top tip for the day.
Great Video!
I signed to pay $25,000 for a used Chevy impala lt. Everyone’s telling me no Chevy on earth is worth $25,000. So today I have $22,000 left that’s due on it. How can I get out of this and into something else ?
Dude 1k to 2k? Thats the bear minimum you would work off the price....try 4k and 6k+ if its last year model......these new car buy tip videos all say the same thing without giving the price range of what is,considered a good deal.
30k car 3k 4k off is good, 5k+ for last year model.....50k car maybe 7k+ off.
U dont even have to make them bid against each other.....you dont even have to try and they'll knock 1k - 2k off.......
thx will help me buy my first car im 17 ^^
Hmm, I be the sales will try to rip you off due to your age. You might want to bring someone with you to give second opinion.
I would aim for 15% off the sticker price for new car purchases. Most dealers will not allow more than this.
What about gap insurance? I'm scared if I wreck the car the insurance will only pay what it's worth and I'll be stuck paying the rest. I know a friend who wrecked his car, he was way upside down and now he has a wrecked car in his yard that he's still making payments on.
How to solve this? Don't buy a new car and buy one you can pay cash on. If you cannot, then you have to save up longer or buy a cheaper used car. This is the ultimate way to save.
Property Taxes, Auto Insurance and Vehicle Maintenance Expenses are just too high.
If only the U.S. had a decent
public transport system like Europe, China, Korea and Japan.
Seems like Hertz car sales is a good place. I bought a low mileage Toyota for a couple thousand less than everywhere else I looked.
Hmmmm... rental cars... eeek. I wonder how the cars are treated by people who rent then. I assume harsher than noaml.
There are a few smudges on the ceiling but other than that the car is clean. The rental companies do regular maintenance on their cars. I think the best part is that you get to drive the car for three days as a rental before you decide to buy or not.
2:45 "give a zip code that's near that dealership because then they would not know that you're actually shopping around"
Don't you want them to think your shopping around so they'll think they have to compete with other dealerships so they'll lower their price?
There's some wisdom to that but I didn't even want to think about this that I bought from a place that gives fixed pricing online.
2:43 particular STEALERSHIP. hhahahahah
Somehow an 's' slipped in there. I totally was not planning to say that.
Sureee
BeatTheBush, I thought you were going to show us how to buy a car cheaper, all I heard was you talking where is the flowchart? most people already know that... you didn't say anything about the invoice, the MSRP, rebates, incentives, holback etc.
I heard a few times to buy the last day of the year is a good time and to get the financing part done first
Oh man, that might work but it seems monthly also works. Right after Christmas might be slow so it might just well be a pretty good time.
It's best to lease a car when the dealership is trying to make room for the new models.
I think the only car I ever bought from a dealership was the first car I ever bought, I paid $150 and had to replace the head gaskets and rear shocks and the heater core needed to be replaced, all the rest I have bought from individuals. Your advice sounds good but I don't know that I would buy from a dealership again because I don't know if you can get a good deal from them. I remember talking to a dealer years ago where the price was cheaper if you did not have a trade in, so a person is actually paying the dealership to take their old car/truck.
They probably low ball you on the value of the car too.
@@BeatTheBush I think you misunderstood what I said, they don't give you any credit at all for your trade in they charge you to take it, you can buy whatever car they are selling for less if you keep your old car. All dealerships may not do things they way they did, I don't know. Generally speaking all used car dealers are considered to be crooks.
Lol... if they do that then I wouldn't be surprised.
I suggest getting your own fiancing through a personal loan (credit union) and tell the dealer you are paying cash. Then you can avoid all the finance charges. There is a list of 2017 cheapest cars where your note can be under $200 a month.
I suppose they ask if you are paying cash or need to finance at some point early on, no way to avoid that.
Miss desire Independance In sold cars at a major dealership. In short, there's not much difference for the dealership whether you pay cash or take out a loan. Although they make more money when you finance and even more when a customer leases the car...
wtf are you insane dont get any financing?
I think you should have mentioned securing ones financing outside the dealerships, i.e. credit union, or bank. Taking away the dealerships opportunity to make money on the loan they approve by adding percentages to the APR.
Ahhh very true. But you probably cannot use it to get more discount as they see that as making less money.
Do you have video on why you would never buy a new car?
In short. It's because it wastes a lot of money and I prefer to buy time rather than spend the money. More info here: ua-cam.com/video/faSsTAhc_Vc/v-deo.html
Thanks!
Just picked up a 2003 Mercury Sable with 36000 miles on it. It was sitting in a garage in Pasadena the last 5 years. Leather, all the bells and whistles, my mechanic said, "it is in very good condition".
I paid 3250, mostly because it is quite clean.
Great value video... thanks
Hello, BeatTheBush! I have been watching your videos for a few days and I found very useful information in most of them, but now I wanna ask a question!
I work with pizza delivery, I from Brazil and here everything is expensive, I work with a motorcycle and now I need a more powerful one, for personal porpoises and some work related as well. Do you think it's better to buy another and keep two or sell this and just get the more powerful and keep as my only bike? Keep in mind that I have no debt relate to my actual bike, just taxes related ones.
Having another motorcycle means added cost to own. You'll have two parking spots, registration, upkeep, etc. You have to drive both alternating between them to keep them in good condition.
You could be putting a lot of miles on the bike with pizza delivery so perhaps you want to put them on the old bike and keep the miles off your new one. It's a big trade off here so you could add in depreciation due to mileage to the mix after a few years to see if its worth it to keep it.
Glad I listened to this
=D
A lot of dealerships in my area are supposedly one price non-negotiable for the car. Is this true, or just another dealer scam?
They can do that if they want. I actually prefer this which keep the headaches away. If the price is set and not higher than average price in other areas where dealers negotiate price then I wouldn't mind.
Great video, I'm looking to buy a suv.
=D Hope this works out for you. Get them bidding against each other. =D
How to make saving money difficult? Buy a car and start paying insurance, repairs, tolls, fuel, gas tax, parking, tickets, license plates, municipality registration, and spend time in traffic.
Having a car is indeed a huge drain on your cashflow. Sometimes it's not possible to avoid unless you're able to find a job close by within biking distance.
I realize the dealership makes money through making the customer finance, but isn't it also better for the dealership to get the total price cash up front? I thought you had more leverage by letting them know that you have the cash to drop right then and there?
The dealership just wants you to buy it. So if you seems like you are an actual customer rather than just window shopping, they will work with you.
i hear this advice allot but do dealerships actually call you back?
I don't think so especially if they have run your history already. I didn't get a call back even when I seemed desparate to get a car
walking in with cash in hand helps...hard to turn away
You mean actually a briefcase of cash? lol.