I haven't bought a car from a dealership in over 30 yrs . . . and I have absolutely NO recollection of the process. Now - I am ready to purchase a new car from a dealership and I will be paying cash. What is the best way to simplify this process. Ideally . . . agree on an OTD price . . . pull out the ole checkbook, write the check . . . and take the keys and scoot. . . . ? ? ? ?
14:22 - As an attorney, I have two opinions on the Dealer's contract of you have to pay 2 months v. the Sales Agreement. At this point we can all agree the Dealer is acting as an agent of the finance company so the Dealer is technically binding both entities to the deal. 1. My first thought was which contract was signed first? If the Dealer's contract was signed first, then the Finance company will overrule with the "No prepay penalty" and the Buyer could easily argue that the clause that usually says "All parties agree that there is no other contract" will essentially override the previous contract signed minutes earlier. 2. My second thought is when there is a contract that conflicts, its held against the drafter of the contract - not the other party, thus the Buyer will prevail here for not paying. 3. Based on my theories of #1-2, the Buyer will prevail in Court, or it will unenforceable. 4. One could argue that the Dealership is creating fraud against the Finance company, and the Dealer should be in jail for Finance fraud.
Just looked at leasing a Stinger GT1 and asked the dealer in FL to be upfront with all parameters including the money factor. They emailed me all that information and then the salesperson called to tell me they were marking up the price by $4500 to recoup losses from low-volume selling in the current market. I asked why that wasn't reflected on their website, and his response was, "Kia designs our website." I don't think that's true because Kia dealer websites are highly variable in appearance. I told him the car has been on his lot for just over 90 days and to text me in two months went it's still on the lot and he is willing to go with MSRP. This is despite me being a Kia customer for the past 3 years and being willing to finance through KIa Finance again. Customer retention concepts are out the door now!
I love my KIA and hate my dealer. Wanted to purchase a new Telluride nightfall edition. Not a cheap car. The dealer made it so difficult I just walked out with him following me out. Nothing pleasant about the process.
I went to look at a used 2018 Ford F-150. The dealership doc fee was $899. The "accessories" totaled $1500 (+taxes). I told them I did not want those accessories and they said those are included on all the cars they sell and were essentially required. They told me the vehicle was priced to accommodate the condition of the vehicle and were being up front about issues, yet I found something wrong with it within the first minute of sitting inside the vehicle and they were aware of it. They insisted I ignore the broken item and talk numbers anyway. After they gave me all their numbers the price of the vehicle was $5000 over their list price. Granted I know some were taxes/tags/registration. My point is they would not even work with me on price and fixing items because they knew they would get a sucker on the next person interested in the truck.
If you buy a new car you have at least 3yr36,000 mile warranty and the VSC runs concurrent with your factory warranty. So if you buy a 5 year extended warranty you only benefit for 2 years of it.
I give notice to a salesperson they get one chance to give me their price out the door. Not playing tricks. Know the value and msrp. Know the market fair price and have finance set up. There is always another dealership online now. Stand by your statement and walk out if need be. They always call when I get home.
First rule: before you sign anything, always be ready to walk out! Yes Sir, that is my way of thinking! In Quebec, Canada, we can consult a registry (RDPRM) to learn if a loan was inscribed to that vehicle!!!
If the F&I salesperson is too pushy or just makes you feel uncomfortable, just get up and walk out, or better yet, accept everything they offer, then call the next week and cancel all of it, nothing pisses them off more than having to return all of that profit!
We were going to pay the car off early anyway - we cancelled next day. They make you wait 90-days, but we got our price, cancelled extras and refinanced immediately after those were credited back. They lost a customer and all profits. We should have walked out, but we really wanted this particular car - idiots! So much for dealers wanting family business.
I was at a dealership just looking. I let them go through their tactics in the office. I decided I wasn't buying a car that day. As I was walking to my car they chased after me and as I was pulling off he also was still trying to get me to come back in. Man he was acting like he was desperate.. How dare he chase a customer after they were pulling out to go out if the dealership.
I just spoke to a Lexus dealership about factory odering an NX350h, and was given a quote of $2500- 3k above MSRP. Was told that it didn't have anything to do with the chip shortage but that this is going to be the norm when buying a high end vehicle from now on. I said no thanks. I'd rather donate the extra markup than give it to those vultures.
Great video I appreciate all that you guys do. Kimberly teased at the beginning of the video about buy-rate but never elaborated or explained best practices, etc. for instance as a consumer if I asked a finance manager what the buy rate is would they legally have to divulge that information? How would I as a consumer find that out? What negotiating tactic could a consumer use? I would love for her to offer this. Perhaps there was another video on this that I missed if that’s the case please kindly direct me to it. Thank you
No, they do not have to disclose it. And most definitely will not disclose it because that is the private rate between the dealership and the bank. The bank is essentially saying "thanks for bringing me a customer, this is the lowest rate I will accept" and now the finance manager will try to put on couple of points on top of that rate as extra earnings for the dealership. The best way to know what a fair rate is, is to go to your bank or credit union and see what rates they offer you for the amount you want to finance and compare that to ehat the dealership offers you
Last year I wanted to return my leased Subaru to the dealership where I originally leased it. They wanted a $1,000.00 return fee. I ended up keeping the car and writing a check for the balance owned on the car. I definitely think I did the right thing. Oh, I have another Subaru I released through the same dealership and did the same thing. I have two relatively reliable cars and no car payments? Lastly my two Subaru vehicles have gone up in value!!!
Why are the regulators not stepping in, and stopping this? If a dealer is pulling this stuff, can they be prosecuted? If the dealers start getting fined, they will stop it.
So proud of your extended service contract, 6mos later you raised the price 20%. I always have to remember I'm listening to car salemen. Instead of selling YOUR PLAN to help the consumer, how about just telling them that the same companies will sell direct to the comsumer without a middleman saving the consumer hundreds if not thousands!
There may have been a handful of issues with carvana and others like them however car dealers rip people off constantly. I have witnessed someone trade their vehicle in, go home with a car only to have the dealer call and say bring the car back you weren't approved however, the persons trade in was already gone! I have seen a dealer selling vehicle he knew was crap to a young girl. The car died a couple days later and all the dealer would say to her was Oh well make the payment or get sued. So, while some want you to believe that going to a dealer means you won't have to deal with things like you may with carvana and others like them, there are plenty of issues with dealerships as well. So, be aware of both types of purchasing
We have to hire a lawyer to understand the language on these contracts.. The power is in your 🙌. Be a prudent consumer. Would you please do a video with Kimberly only on the Finance portion only.. This was a informative video🚘
The problem with walking out on a dealership in more rural areas is that there are no alternatives. Yes, you can probably find the car you want for a better price hundreds of miles away. And still save enough to cover the cost of traveling there. But, your local dealer will just find another buyer for the same car, who’s willing to pay more than you were. Plus, you still have to bring it to that same dishonest dealership for service.
We have seen these car shortages before. Not on an industry wide basis but I remember the days back in the late 70s or early 80s when you couldn't get a Honda.
The original, dealer, State approved, contract should always take precedence over any addendum that a dealer adds to it. An addendum is something "IN ADDITION TO". So the original contract that is state-approved should always went out. I think we may start seeing some consumer start to sue these dealers in the next few years.
In Most states that is likely true. The case mentioned, was the buyer was asked to sign a side agreement. In that case you are likely creating another contract that you are bound by. Some states ,ay actually bar side agreements. The bottom line as suggested in the video is "walk out" if they pull that on you
Thank you YAA for the education resulting in verifiable empowerment, kindness and encouragement. I will try to pay this forward to others. Best regards Marie Carlton
I once had a car with significant front end frame damage that was restored. Years later I went to Carmax to see if they would buy it. They did a Carfax report and there wasn't any info at all about the significant damage history. I was shocked. (I didn't sell it to them)
What I'm running into is the dealership won't negotiate down from the MSRP they are offering more for my trade than I paid for it so that helps. But I'm working to get my payment the same or less than I'm paying now.
About to factory order! I've been finding out they don't actually order the cars, they just get automatically allocated them by the manufacturer anyway? Also, some require $500-1000 deposit, and some don't. I wonder what else I don't know (yet)?
@@user5871 I've seen that this week the sale people don't even know when they're coming. They might see an allocation. But they can also get some that they had no idea they where coming.
Dealerships could not pull off these "magic tricks" if the consumer was more aware of how the tricks are performed. Kudos to the YAA team for arming the consumer with the verbal judo to develop self respect and to protect.
Interesting video. I was shopping today for a Kia Telluride. One dealership didn't have one like I wanted, but they had some on the way. Problem is, the cars on the lot have some BS protection pkgs , adding $5k to the price. So, the cars in transit do not have these BS pkgs, but I don't have the option to buy w/o them. I can buy one before it arrives, but they WILL add the BS and I have no choice in the matter. Almost criminal, in my mind. The problem I have is that I have to have a car asap, there are only so many dealers, and a 2020 Telluride sells very quick after hitting the lot. Unfortunately, you can be well prepared with knowledge, and willing to work hard in negotiating, but the dealers hold the cards, right now, and they know it. (A little added info... I saw one at 1030am today, left eat lunch and visit another dealer. I called the first dealer back at 2:30 to arrange a test drive and probably buy... car already sold. It's tough times for people who need a car, especially if they are selective, at all)
To avoid F&I I go in and get a purchase agreement and take it to my bank (who I have already been pre-approved) and get a check then go back to the dealer and swap the check for the car. Easy peasy.
@nostudion1037 once I choose the car I want I ask the salesman for a purchase order including all taxes. I take it to my bank and they cut me a check, I go back to the dealer and buy the car.
@@nostudion1037 I am financing through my bank but as far as the dealer is concerned I am paying cash out right. The purchase order is an out the door cash price.
I just went to order a 2022 Subaru Crosstrek the car price was &30,650 went to put down deposit sales manger gives me paper work to sign and now it is $32,750 plus a $500.00 processing fee ? I took my check and walked out .
When shopping know what vehicle you want, know what the price should be from auto trader or kelley blue book. Get pre approved from your bank or credit union. Test drive the vehicle, pull a car fax yourself and have it inspected if it is used. Talk about price. If you do not like deal walk away. Try not to buy extras in finance department.
Getting pre-approved is a good idea, but often times manufacture's financing is just as good, if not better. When we bought our Subaru last year they (Subaru) were giving 1.9% for up to 72 months for anyone with credit score of 700 or higher.
My plan was to wait to purchase a new truck but I did not get the warm fuzzy feeling from you guys that the price would be any better next year, since I was able to buy employee pricing I did order one from DaveB sells chevy, his dealership does not charge the MPA if you order plus I got my GM discount. After seeing some of the used car prices it was worth it for me to spend a couple of extra grand to get a vehicle with no miles as apposed to spending 45 grand on one with 60 thousand miles.
Anyone who buys a new car,truck or anything must know that they decrease in value significantly as soon as you drive them off the lot. Dealers see buyers like you as suckers.
@Vona Kenyon No anyone that spends new car prices on used cars with a bunch of miles are suckers. I keep my vehicles for many many years so I get my moneys worth out of them. Like my 99 Silverado with 180k miles (bought new) and my suburban with 145K miles.( bought used from coworker) I will more then likely (if it holds up) get another 10 years out of this truck. So everyone has there own circumstances you cant just lump people in one comment
I got to watch this video after the live stream. I enjoyed the subject matter immensely. Just this week I found out how important an extended warranty/service contract is. I own a 2015 Subaru Outback Limited 2.5i with about 26,800 miles on the odometer. Last week I went to drive home from a meeting and the "Brake" light was illuminated. Now I take immaculate care of my vehicle: brake system flushed every 2yrs, belts hoses replaced due to age, all fluids changed. I go the brake light to go out, but something did not feel right with the brake system. I made a service appt. at the dealer who I sincerely enjoy doing business with. The end result was found to be a broken wheel sensor and E brake cable on a rear wheel. The cost of the repair was almost $500, however my warranty program with Zurich Insurance enabled me to have no cost out of pocket. This repair was almost the cost of the program.
I believe (if I'm wrong, tell me) that vast majority of the time that if a buyer has great credit, debt-to-income ratio & income that NOTHING beneficial to the consumer can happen in the Finance office @ a dealership.
I have 750+ FICO (anything above 750 is meaningless in lending), 6.3% DTI, and zero down payment on a car. Left my Kia dealer with a 22' Forte GT manual fully loaded package for sticker price last week. They got not a single extra penny out of me aside from their invoice markup which is 99.99% unavoidable. Free weathertech front and back, tinted windows, lifetime extended warranty free of charge, unlimited oil changes for 60 months, a coupon for 1 full vehicle detail job ($300 value) to use within 12 months, and free replacements on the Michelin tires ($270 tires) every 12 months for the life of the car that I am in possession of it for. I robbbbbbbed them.
I gave my unlisted number to Ford service for my elderly fathers car and two weeks later I get a call for extended warranty for a car I don’t own. I told Ford off for selling my number and it was an emergency number use only.
Email addresses and phone numbers……you cant trust companies with them. In Va. the DMV sells phone numbers. Good luck to us that want to keep those things private.
My local new car dealers offer financing through the local Credit Unions at the same interest rate as I get by directly using the credit union myself. I assume the dealership makes some kind of money on the arrangements which is fine with me. Because I'm paying a fair interest rate. Years ago I always arranged my own financing unless the dealer could beat it. But now I get the same rate as I would by going to the credit union myself and it's more convenient.
I bought a 2019 rav 4 xle and the financial manager would not budge on the extended warranty cost, I asked to work with someone else and went from 35.00 a month to 16.00 a month.
I wish that there is a way to let more people join this group which will help passing your valuable message. Im a daily follower and im in the market for a ram truck and trying to hold myself from buying one.
This is incredibly insightful! Thank you so much for providing this information. It truly lifts the vail so that honest customers can just buy an honest product. Absolutely wonderful!
For those who can't wait - get GAP, don't do $0 down even if the interest is low, and watch the market like a hawk and get out and downsize car and payment as soon as you have positive equity. Vehicles with a lower base price still depreciate but not as much as high ticket ones.
No one can force you to do anything. If they show you a piece of crap paper like you guys just explained- RUN. If you sign it- You have done this to yourself. Self responsibility ppl.
When I bought my used car almost 3 yrs ago i pd some down and put the bal on my credit card @9.9%. I pay as much or as little as I want each mo. Almost pd off.
I am not sure YAA has ever discussed this, but what are some tips when you are going to flat out pay for the car all at once? No financing involved, no trade in's involved, just - I have the money for the car i want, this makes things much much easier of a car buying process at the dealership. I plan on purchasing a 2022 Toyota GR86 Premium model, which comes out in December according to Toyota. I know what the MSRP is on the vehicle and i also know there will be some taxes and fees, which i don't know how much that part will be. But back to my initial question after knowing all i have said thus far, when paying in full, are there any questions i need to ask, anything i need to be careful of when i do in fact make the purchase with this method of car buying? Do they have have any secrets i won't be aware of?
Not sure if you bought a car yet but I bought a Toyota last month. I put down a deposit and chose the exact car I wanted and I told them if they put dealer add ons or try to mark up above msrp then it’s a no deal for me and they agreed. The finance manager will try to sell you stuff but other than that there are document fees around $200 and sales tax is paid later at the DMV.
They have said many times, NEVER tell anyone you are paying cash until the deal is done. Dealers make money on financing and want you to borrow from them. If you say up front you are paying cash they will not negotiate on anything.
@@Once800- Finance for the car. Then 7-10 days later either mail a check, or walk into whichever lender it is you borrowed from, and make the early payoff amount. It’ll be a major low blow to the dealerships profits from the products they try and force upon you. And you’ll save a bit of money on interest by only paying 7-10 days of interest vs 30-40 days etc.
I think you should discourage people from ever buying a new car. I used to work for lenders and was amazed at how much a new car depreciated the second it was driven off the lot. It was thousands and was always a terrible shock to the purchaser.
Discount Refund Agreement. In Nevada, Ford called it Red Carpet Lease. I’d assume as if you’re walking down the red carpet and you can get into another Ford fairly easily to get out of the lease.
The behavior a lot of dealerships are engaging in smacks of people who don't value repeat business. They're not interested in building a good relationship with the customer because they know they'll never see you again. I can only speculate as to why. Possibly they think that in 10, 15, 20 years when you buy another new car, they'll have moved on and sold the dealership to someone else. Or you'll buy a different brand. Or they see the handwriting on the wall for the entire franchised-dealer business model and they know they won't be around in 20 years.
You can see if the market will go higher but if you know what you'll get Joe and can reinvest that money into something that will pay off even better, go for it.
You say walk out. That's all well and good but, I would make as formal complaint as I possibly could to the car company itself ! There are too many of these dealerships giving the car company's a bad name !
Your program is awesome and VERY informative! Thanks for what you do. On a side note, Kimberly, is your cat a chocolate point Simanes? I had a blue point. Beautiful cats.
A Toyota dealer told me that when I wanted to buy my car at the end of the lease I would get a better interest rate if I paid for the certified used car fee which was 2k. So he said I got the used certification for free since the interest rate is lower.
Hi Linda, these 2 guys are entertaining, but, remember, they are choosing not to open a dealership, instead, they sell the same products as the dealer, but, pretend that the dealer is bad. These 2 charge a membership fee and get money from youtube revenue to bash the dealer. Be careful out there, I wouldn't buy a extended warranty ever, but, if I did, it would be at the dealer, not from unregulated people on youtube. These 2 constantly tell the viewers not to buy a warranty at the dealer, but, they have warranties for sale, (why do they even mark it up if they wanted to truly help people?) think about what I just said. I hope I have helped you. Tim (Used Car Dealer in Florida).
I drove 3 hours & forgot my title at home. They still let me buy a car and they took my trade in. They gave me a loaner car & when mine was detailed they drove it 3 hours to me and I gave them my title. I thought it was really weird but I was happy they took it without the title lol.
There are more bobby traps to watch out for now in just buying a car than in a Ukraine mine field. What about getting a pre-purchase inspection and using someone like AutoTrader?
Currently we’re driving a 2001 Infiniti G20 with 116K miles and a 2002 Camry with 195K. They both are running strong and both have had their exhaust systems replaced other than the normal maintenance issues so we’re not in a rush to get new vehicles until the price drops to a reasonable level. We plan to buy either a Highlander or a Forerunner. We know we’ll be waiting a while 😂😂
hey guys, i live in Alberta, Canada. love your videos and wondering how much of all your content can be used in Canadian dealer? maybe do a show for canadians or do you know of any content that relates to canadians? keep up the good work
So I have a question for you guys about extended warranty. We purchased one in a past that was not from dealership. When our Suburban broke down, the dealership held our car hostage and put us in no winning position. They put like $600 or more inspection fee up front, which meant the car would have a major component taken apart for inspection (supposedly) and car would not be returned until extended warranty company will approve the repair which they told us may take from additional 3-5 days. If we were to take car back from dealership while waiting for approval, the fee would not be used towards final total part of fixing fee. What are your thoughts on it and have you ever experienced that? For the reference, we have very few dealership choices in the state.
I've heard of shops asking for labor cost for a pinpoint diag on mechanical issues. Not everything can be read on a scanner through the OBD/2 port. If they have to remove and disassemble the motor and transmission to figure out the problem, that can easily be hundreds of dollars of labor cost per AllData (dealership rates are even higher). I'm guessing their labor rate was $150 - $160 per hour so they were basically saying that to determine the exact cause of the problem they were asking for 2 hours of labor time just to tear down the motor and determine the issue, at which point they would have to ask the warrantor if it would be covered. Then 2 hours of reassembly time to put the motor back together. The likely reason that this cost would not be applied to the final repair cost if you take your car back is because they would have to spend another 4 hours tearing down and reassembling your motor when you bring it back. Your warranty company probably won't want to pay for that twice, but the technician wants to get paid for their time, so they were strongly requesting that you leave the vehicle there so they can just dump it in a spare bay and leave everything apart and organized for quick reassembly when they got the approval and the parts to make the repair. When you deal with the warranty companies they want a long story (they actually say internally that you have to story out the work in MPI or whatever the shop uses for notes) with pictures of what was found and what condition the parts are in. They may or may not send someone to the shop to verify in person. And if you're lucky, the shop doesn't have to actually call in and sit on the phone waiting for someone to answer. My service writers can be on hold over an hour trying to get someone to take their call to get warranty work approved. And of course for other customers coming in to drop off a car it can look like a writer is doing nothing but whenever that warranty company picks up the phone you have to stop everything and deal with them and only them, so getting involved with another customer face to face doesn't work.
@@Oxios I totally understand what you are saying. This is no different than trying to get medical procedures approved while patients are waiting for them. This is why I question whether the extended warranty that is sold by 3rd party (including YAA) is actually worth it. We have almost non existent public transportation where I live, and if car rental is not included for duration of time from diagnostic to actual repair then it's a crap deal and not worth it (you were correct they wanted to send their own guy to inspect and due to that dealer also increased the final price of repair by over $400, so we chose no warranty and have dealer repair it to save cost on extra price tag and cutting down time by 3-4 days). So my final question to you based on your experience dealing with repairs and warranties, is it worth it to purchase. If yes then from whom?
@@makb5354 It's worth it provided they are easy to get on the phone, will accept a thorough story from the technician without having to send a 2nd opinion on to low ball, and one that had a comprehensive rental policy. Especially for trip interruption, since some warranties don't cover a rental until diag finds a warrantable repair and that could be up to a week the customer is left waiting. I don't know what's available to you, but I would say you could always ask the technicians or writers which companies they know that have always been easiest to work with.
Oh yes they are the biggest con artist and crooked people They have threatened my of confiscate my car after they worked on it and couldn't fix it because they sad if was unsafe to be driven they are scary bstrds,
Another way to think of VSCs - they don't normally cover consumables - brakes, tires, etc. Also, remember OEM brakes generally last a long time. I bought a maintenance plan on my '14 fusion, they threw in brakes in their estimate to show how much I would be saving. I'm 18k miles past my maintenance plan at this point, still running the original brakes, and anticipating another pass at the inspection station.
Plus they only cover anything after the manufacturers warranty as run out. Plus if you have not maintained your vehicle according to the warranty contract they can and will refuse to cover the repair cost.
I'm looking at a used Lexus RX350 F with approximately 80,000 miles (can't afford new). Putting down approximately 30-40% and my USAA agreed to finance the rest at 3.2%. The price is $34,900 with 86,000 miles. First, can you tell me how much the average markup is today for a used car? Also, what questions I should ask and what info I should not tell them? And can I get a VSC for a used vehicle? No question is a silly question. I have been watching your videos, but is there some you can refer me to on dealer vs customer on used cars?
Extended warranties are a rip off Idc who it's through what they don't tell you is all the preventive maintenance has to be done by shops not by you so you will spend 1000s on that alone
Buy rate is the percentage rate the dealer gets from the bank or finance company. They then add points or percentage points to pad their profit. So example the dealers 2.5% from the bank. They then sell you a car and the deal is financed for 4.5%. The 2% added to the rate is total profit for the dealer.
Uh, F&I deals with compliance but there is absolutely no law that says every customer has to be "offered" service contracts. The compliance they deal with is ensuring the car is titled appropriately and the loan paperwork is filled out properly. Kimberly's assertion that "every customer must be presented and offered" is absolute dealer BS!
Went to a hyundai dealership in texas today and they told me i can't finance through my own bank, that i would have to finance through them and their banks only.
I'm very curious. I agreed to a price and put down a deposit on a car in transit (I did ok but wish I had found this channel before to do better). The dealer said we would work out financing once the car is here in two weeks. Is that normal? Should we be concerned about them trying to sell the car to someone else and/or is this a tactic to have us get excited it's there and agree to more stuff in the finance office?
If you are worried about the dealer selling the car to someone else, you should ask to do paperwork a few days before the vehicle arrives. Many customers get upset if dealers run their credit twice, so most dealers will only ask for a credit application just before delivery. The dealer assumes you have the means to pay for the vehicle before you give them a deposit. Some dealers are more generous about returning a deposit than others. At least some will take the stance that if you gave the deposit and then failed to buy the car at the agreed price, it doesn't matter the reason why. You lose your deposit if you cannot fulfill your promise to buy.
Just curious; over the decades, how many of these practices, if any, did you engage in? As a salesperson, were you morally outraged, and non compliant with management policies? As an owner, how were your salespeople treated, trained? paycuts? demos taken away? demos at all? mounting chargebacks? surprise chargebacks? were they paid salary plus commision? Draw? Straight commison? bonus money witheld? pay raises ever? Easy to be a 'teller', but background info is always interesting
I always get service contracts. Got it on my last car a week ago but I negotiated the price and saved $1500. I need the peace of mind, comprehensive contract svc as well. I always negotiate them.
I went out and brought a 2024 honda rirgeline trailsport. I was using to finance through honda so I found get the 1000.00 lokality program I had to keep financ e for six months it didn't,t pay off to do it
Would you put Lower down payment to cut the 1/2 point on interest? Or would you put higher payment on higher rate? The interest difference is not big. Amazing Shows
When I was an F&I Manager our dealerships goal was to make 100% of all profits, from The Service and The Finances Departments. The sales profit was the "Extra" profits. I had to make at least $1750 per car, in Finance profits, on every car deal. And that was in 2005.
What did you do if the buyer declined everything in the F&I office? Not sell them the car? When I bought my Subaru last year I politely told the F&I manager that I did not want anything that didn't come from factory...nothing. He tried to go into a spiel about how discounted the extended warranty was, blah, blah. I stopped him and politely told him I did not want to purchase anything...he then told me we were done and sent me back to the sales person to close the deal.
@@pinky882 I had that same experience. The F&I guy was like my best friend and went on and on and when I told him no thanks, the color in his face dropped and he asked "why?" like I was insane not to take his offers. I said you guys make good vehicles and I take care of my vehicle and the 4 year factory warranty was enough for me. He sent mt back to the salesman also. 😎
Question to you all. If I was really interested in buying a vehicle but before I make a final decision I want a independent mechanic to give it a look see and go through it at my cost. Would that be possible?
All dealerships have a lot of staff, large facilities and big payments on inventory. Why would anybody think they are going to give the best deal possible. The opposite is true. Can you blame them? Blame your self for not shopping around and not educating yourself.
I haven't bought a car from a dealership in over 30 yrs . . . and I have absolutely NO recollection of the process. Now - I am ready to purchase a new car from a dealership and I will be paying cash. What is the best way to simplify this process. Ideally . . . agree on an OTD price . . . pull out the ole checkbook, write the check . . . and take the keys and scoot. . . . ? ? ? ?
If enough people refuse to comply with this BS, dealers will change.
14:22 - As an attorney, I have two opinions on the Dealer's contract of you have to pay 2 months v. the Sales Agreement. At this point we can all agree the Dealer is acting as an agent of the finance company so the Dealer is technically binding both entities to the deal.
1. My first thought was which contract was signed first? If the Dealer's contract was signed first, then the Finance company will overrule with the "No prepay penalty" and the Buyer could easily argue that the clause that usually says "All parties agree that there is no other contract" will essentially override the previous contract signed minutes earlier.
2. My second thought is when there is a contract that conflicts, its held against the drafter of the contract - not the other party, thus the Buyer will prevail here for not paying.
3. Based on my theories of #1-2, the Buyer will prevail in Court, or it will unenforceable.
4. One could argue that the Dealership is creating fraud against the Finance company, and the Dealer should be in jail for Finance fraud.
Congratulations to you guys you're doing great job educating the comunity against the dealership evils
Just looked at leasing a Stinger GT1 and asked the dealer in FL to be upfront with all parameters including the money factor. They emailed me all that information and then the salesperson called to tell me they were marking up the price by $4500 to recoup losses from low-volume selling in the current market. I asked why that wasn't reflected on their website, and his response was, "Kia designs our website." I don't think that's true because Kia dealer websites are highly variable in appearance. I told him the car has been on his lot for just over 90 days and to text me in two months went it's still on the lot and he is willing to go with MSRP. This is despite me being a Kia customer for the past 3 years and being willing to finance through KIa Finance again. Customer retention concepts are out the door now!
You are not wrong brother!
And not to be a brand snob, but it's a Kia, c'mon dealer dude!
I love my KIA and hate my dealer. Wanted to purchase a new Telluride nightfall edition. Not a cheap car. The dealer made it so difficult I just walked out with him following me out. Nothing pleasant about the process.
Typical. Unfortunately. This is EXACTLY why I’d never buy a Kia. They’re infamous… for this crap.
I have a forte and I’m looking to trade in for a stinger as well. I won’t finance with KIA again lol.
I went to look at a used 2018 Ford F-150. The dealership doc fee was $899. The "accessories" totaled $1500 (+taxes). I told them I did not want those accessories and they said those are included on all the cars they sell and were essentially required. They told me the vehicle was priced to accommodate the condition of the vehicle and were being up front about issues, yet I found something wrong with it within the first minute of sitting inside the vehicle and they were aware of it. They insisted I ignore the broken item and talk numbers anyway. After they gave me all their numbers the price of the vehicle was $5000 over their list price. Granted I know some were taxes/tags/registration. My point is they would not even work with me on price and fixing items because they knew they would get a sucker on the next person interested in the truck.
I fund car loans. The doc fee is negotiable. Or you can go to California they cap doc fees at $85.00
If you buy a new car you have at least 3yr36,000 mile warranty and the VSC runs concurrent with your factory warranty. So if you buy a 5 year extended warranty you only benefit for 2 years of it.
I give notice to a salesperson they get one chance to give me their price out the door. Not playing tricks. Know the value and msrp. Know the market fair price and have finance set up. There is always another dealership online now. Stand by your statement and walk out if need be.
They always call when I get home.
I've had them chase me down in the parking lot.
The dealership model should be abolished.
First rule: before you sign anything, always be ready to walk out! Yes Sir, that is my way of thinking! In Quebec, Canada, we can consult a registry (RDPRM) to learn if a loan was inscribed to that vehicle!!!
Canada generally offers more consumer protections than the U.S.
If the F&I salesperson is too pushy or just makes you feel uncomfortable, just get up and walk out, or better yet, accept everything they offer, then call the next week and cancel all of it, nothing pisses them off more than having to return all of that profit!
We were going to pay the car off early anyway - we cancelled next day. They make you wait 90-days, but we got our price, cancelled extras and refinanced immediately after those were credited back. They lost a customer and all profits. We should have walked out, but we really wanted this particular car - idiots! So much for dealers wanting family business.
I was at a dealership just looking. I let them go through their tactics in the office. I decided I wasn't buying a car that day. As I was walking to my car they chased after me and as I was pulling off he also was still trying to get me to come back in. Man he was acting like he was desperate.. How dare he chase a customer after they were pulling out to go out if the dealership.
I just spoke to a Lexus dealership about factory odering an NX350h, and was given a quote of $2500- 3k above MSRP. Was told that it didn't have anything to do with the chip shortage but that this is going to be the norm when buying a high end vehicle from now on. I said no thanks. I'd rather donate the extra markup than give it to those vultures.
Lmao vultures but I agree this markup on popular cars are insane
Just buy a Toyota.
@@lordt78 Toyota dealer I went to said new rav4 are currently marked up between 1k to 7k.
Thats not even so bad. by me they are 7-10K. I was told "for you ill do it for 5500". lol.
I think that is true, but, I cannot believe they would admit it. I think that is arrogant as h!
Great video I appreciate all that you guys do. Kimberly teased at the beginning of the video about buy-rate but never elaborated or explained best practices, etc. for instance as a consumer if I asked a finance manager what the buy rate is would they legally have to divulge that information? How would I as a consumer find that out? What negotiating tactic could a consumer use? I would love for her to offer this. Perhaps there was another video on this that I missed if that’s the case please kindly direct me to it. Thank you
Did you ever find out what the buy rate is or if you can get finance managers to divulge that during negotiations?
No, they do not have to disclose it. And most definitely will not disclose it because that is the private rate between the dealership and the bank. The bank is essentially saying "thanks for bringing me a customer, this is the lowest rate I will accept" and now the finance manager will try to put on couple of points on top of that rate as extra earnings for the dealership.
The best way to know what a fair rate is, is to go to your bank or credit union and see what rates they offer you for the amount you want to finance and compare that to ehat the dealership offers you
Last year I wanted to return my leased Subaru to the dealership where I originally leased it. They wanted a $1,000.00 return fee. I ended up keeping the car and writing a check for the balance owned on the car. I definitely think I did the right thing. Oh, I have another Subaru I released through the same dealership and did the same thing. I have two relatively reliable cars and no car payments? Lastly my two Subaru vehicles have gone up in value!!!
Why are the regulators not stepping in, and stopping this? If a dealer is pulling this stuff, can they be prosecuted? If the dealers start getting fined, they will stop it.
Half our country believes that regulation (of any kind) is bad.
Definitely it seems like a predatory practice that all dealers collude on so no matter where you go you get the same double talk
can't wait until traditional car salesmans job goes the way of the maytag repair and milk delivery man lol
And the newspaper delivery boy. Don't forget about the public phone change collector.
So proud of your extended service contract, 6mos later you raised the price 20%. I always have to remember I'm listening to car salemen. Instead of selling YOUR PLAN to help the consumer, how about just telling them that the same companies will sell direct to the comsumer without a middleman saving the consumer hundreds if not thousands!
There may have been a handful of issues with carvana and others like them however car dealers rip people off constantly. I have witnessed someone trade their vehicle in, go home with a car only to have the dealer call and say bring the car back you weren't approved however, the persons trade in was already gone! I have seen a dealer selling vehicle he knew was crap to a young girl. The car died a couple days later and all the dealer would say to her was Oh well make the payment or get sued. So, while some want you to believe that going to a dealer means you won't have to deal with things like you may with carvana and others like them, there are plenty of issues with dealerships as well. So, be aware of both types of purchasing
I would like for you to do a video on buying used or certified pre-owned and best tactics to achieve a great deal
Yesss!!!
We have to hire a lawyer to understand the language on these contracts.. The power is in your 🙌. Be a prudent consumer. Would you please do a video with Kimberly only on the Finance portion only.. This was a informative video🚘
The problem with walking out on a dealership in more rural areas is that there are no alternatives. Yes, you can probably find the car you want for a better price hundreds of miles away. And still save enough to cover the cost of traveling there. But, your local dealer will just find another buyer for the same car, who’s willing to pay more than you were.
Plus, you still have to bring it to that same dishonest dealership for service.
We have seen these car shortages before. Not on an industry wide basis but I remember the days back in the late 70s or early 80s when you couldn't get a Honda.
You are being too kind Ray. They aren't creative. They are CROOKS
The original, dealer, State approved, contract should always take precedence over any addendum that a dealer adds to it. An addendum is something "IN ADDITION TO". So the original contract that is state-approved should always went out. I think we may start seeing some consumer start to sue these dealers in the next few years.
In Most states that is likely true. The case mentioned, was the buyer was asked to sign a side agreement. In that case you are likely creating another contract that you are bound by. Some states ,ay actually bar side agreements. The bottom line as suggested in the video is "walk out" if they pull that on you
Thank you YAA for the education resulting in verifiable empowerment, kindness and encouragement. I will try to pay this forward to others. Best regards Marie Carlton
I once had a car with significant front end frame damage that was restored. Years later I went to Carmax to see if they would buy it. They did a Carfax report and there wasn't any info at all about the significant damage history. I was shocked. (I didn't sell it to them)
Carfax is only so reliable. The issue needs to be reported to the DMV.
Carfax isn't perfect and doesn't report unclaimed repairs
You guys are adorable 🥰 I love seeing fathers and sons together!
they don't show up together very often in your culture ha?
What I'm running into is the dealership won't negotiate down from the MSRP they are offering more for my trade than I paid for it so that helps. But I'm working to get my payment the same or less than I'm paying now.
Is it possible for you to do a roll play on factory order? Like y’all did to negotiate the OTD
About to factory order! I've been finding out they don't actually order the cars, they just get automatically allocated them by the manufacturer anyway? Also, some require $500-1000 deposit, and some don't. I wonder what else I don't know (yet)?
Factory orders Been arould for years decades . It's very easy to do
@@dr.who2 Well not everyone has done it. Role playing would be helpful and that is what In Tune Hunter asked.
I know your comment was few months ago, but here's a video for anyone who may be interested. ua-cam.com/video/PYBWZURiyxY/v-deo.html
@@user5871 I've seen that this week the sale people don't even know when they're coming. They might see an allocation. But they can also get some that they had no idea they where coming.
Dealerships could not pull off these "magic tricks" if the consumer was more aware of how the tricks are performed.
Kudos to the YAA team for arming the consumer with the verbal judo to develop self respect and to protect.
Interesting video. I was shopping today for a Kia Telluride. One dealership didn't have one like I wanted, but they had some on the way. Problem is, the cars on the lot have some BS protection pkgs , adding $5k to the price. So, the cars in transit do not have these BS pkgs, but I don't have the option to buy w/o them. I can buy one before it arrives, but they WILL add the BS and I have no choice in the matter. Almost criminal, in my mind. The problem I have is that I have to have a car asap, there are only so many dealers, and a 2020 Telluride sells very quick after hitting the lot. Unfortunately, you can be well prepared with knowledge, and willing to work hard in negotiating, but the dealers hold the cards, right now, and they know it. (A little added info... I saw one at 1030am today, left eat lunch and visit another dealer. I called the first dealer back at 2:30 to arrange a test drive and probably buy... car already sold. It's tough times for people who need a car, especially if they are selective, at all)
To avoid F&I I go in and get a purchase agreement and take it to my bank (who I have already been pre-approved) and get a check then go back to the dealer and swap the check for the car. Easy peasy.
Explain in detail if you can, please.
@nostudion1037 once I choose the car I want I ask the salesman for a purchase order including all taxes. I take it to my bank and they cut me a check, I go back to the dealer and buy the car.
@@MissDebbye Are you taking all the extras off or getting a price? You buying out, leasing or financing?
@@nostudion1037 I am financing through my bank but as far as the dealer is concerned I am paying cash out right. The purchase order is an out the door cash price.
A VSC actually only covers manufacturer defect. Does not cover wear and tear.
I just went to order a 2022 Subaru Crosstrek the car price was &30,650 went to put down deposit sales manger gives me paper work to sign and now it is $32,750 plus a $500.00 processing fee ? I took my check and walked out .
I LOVE this channel. Good job guys. The thought of you guys ever going away is inconceivable!
When shopping know what vehicle you want, know what the price should be from auto trader or kelley blue book. Get pre approved from your bank or credit union. Test drive the vehicle, pull a car fax yourself and have it inspected if it is used. Talk about price. If you do not like deal walk away. Try not to buy extras in finance department.
Getting pre-approved is a good idea, but often times manufacture's financing is just as good, if not better. When we bought our Subaru last year they (Subaru) were giving 1.9% for up to 72 months for anyone with credit score of 700 or higher.
My plan was to wait to purchase a new truck but I did not get the warm fuzzy feeling from you guys that the price would be any better next year, since I was able to buy employee pricing I did order one from DaveB sells chevy, his dealership does not charge the MPA if you order plus I got my GM discount. After seeing some of the used car prices it was worth it for me to spend a couple of extra grand to get a vehicle with no miles as apposed to spending 45 grand on one with 60 thousand miles.
Anyone who buys a new car,truck or anything must know that they decrease in value significantly as soon as you drive them off the lot. Dealers see buyers like you as suckers.
@Vona Kenyon No anyone that spends new car prices on used cars with a bunch of miles are suckers. I keep my vehicles for many many years so I get my moneys worth out of them. Like my 99 Silverado with 180k miles (bought new) and my suburban with 145K miles.( bought used from coworker) I will more then likely (if it holds up) get another 10 years out of this truck. So everyone has there own circumstances you cant just lump people in one comment
I got to watch this video after the live stream. I enjoyed the subject matter immensely. Just this week I found out how important an extended warranty/service contract is. I own a 2015 Subaru Outback Limited 2.5i with about 26,800 miles on the odometer. Last week I went to drive home from a meeting and the "Brake" light was illuminated. Now I take immaculate care of my vehicle: brake system flushed every 2yrs, belts hoses replaced due to age, all fluids changed. I go the brake light to go out, but something did not feel right with the brake system. I made a service appt. at the dealer who I sincerely enjoy doing business with. The end result was found to be a broken wheel sensor and E brake cable on a rear wheel. The cost of the repair was almost $500, however my warranty program with Zurich Insurance enabled me to have no cost out of pocket. This repair was almost the cost of the program.
You still had a cost out of pocket… you just financed it 🤦♂️
Which extended warranty company do you work for?
I believe (if I'm wrong, tell me) that vast majority of the time that if a buyer has great credit, debt-to-income ratio & income that NOTHING beneficial to the consumer can happen in the Finance office @ a dealership.
I have 750+ FICO (anything above 750 is meaningless in lending), 6.3% DTI, and zero down payment on a car.
Left my Kia dealer with a 22' Forte GT manual fully loaded package for sticker price last week. They got not a single extra penny out of me aside from their invoice markup which is 99.99% unavoidable.
Free weathertech front and back, tinted windows, lifetime extended warranty free of charge, unlimited oil changes for 60 months, a coupon for 1 full vehicle detail job ($300 value) to use within 12 months, and free replacements on the Michelin tires ($270 tires) every 12 months for the life of the car that I am in possession of it for.
I robbbbbbbed them.
I hope more people just say No. dealers are making to much money,
Amen to that!
I gave my unlisted number to Ford service for my elderly fathers car and two weeks later I get a call for extended warranty for a car I don’t own. I told Ford off for selling my number and it was an emergency number use only.
Email addresses and phone numbers……you cant trust companies with them. In Va. the DMV sells phone numbers. Good luck to us that want to keep those things private.
People still have, “listed” numbers? 😆
@@MFR22 Doesn't matter, you can find it on the web. Nothing is private anymore.
@@teleguy5699 my comment went over your head.
My local new car dealers offer financing through the local Credit Unions at the same interest rate as I get by directly using the credit union myself. I assume the dealership makes some kind of money on the arrangements which is fine with me. Because I'm paying a fair interest rate. Years ago I always arranged my own financing unless the dealer could beat it. But now I get the same rate as I would by going to the credit union myself and it's more convenient.
I bought a 2019 rav 4 xle and the financial manager would not budge on the extended warranty cost, I asked to work with someone else and went from 35.00 a month to 16.00 a month.
I wish that there is a way to let more people join this group which will help passing your valuable message.
Im a daily follower and im in the market for a ram truck and trying to hold myself from buying one.
I don't see how buying a car now or in the near future is a good idea for me right now. So frustrating.
This is incredibly insightful! Thank you so much for providing this information. It truly lifts the vail so that honest customers can just buy an honest product. Absolutely wonderful!
Time to apply some of the mortgage rules to dealers finance departments including state and federal licensing.
Consumers purchasing vehicles now, are going to be underwater big time in 3-5 yrs from now.
For those who can't wait - get GAP, don't do $0 down even if the interest is low, and watch the market like a hawk and get out and downsize car and payment as soon as you have positive equity. Vehicles with a lower base price still depreciate but not as much as high ticket ones.
only the idiots
@@livingaboard Some us aren’t idiots . Some have 1 car that no longer runs and have to buy a new one
Im learning so much I'm so glad I came across you guys.
No one can force you to do anything. If they show you a piece of crap paper like you guys just explained- RUN. If you sign it- You have done this to yourself. Self responsibility ppl.
When I bought my used car almost 3 yrs ago i pd some down and put the bal on my credit card @9.9%. I pay as much or as little as I want each mo. Almost pd off.
Thank you for all this amazing information. God bless you for being so honest!
Dealer markups should be known as scoundrel fees, and called such to the dealership staff.
love your channel. I am learning a lot from you two!!!!
I am not sure YAA has ever discussed this, but what are some tips when you are going to flat out pay for the car all at once? No financing involved, no trade in's involved, just - I have the money for the car i want, this makes things much much easier of a car buying process at the dealership. I plan on purchasing a 2022 Toyota GR86 Premium model, which comes out in December according to Toyota. I know what the MSRP is on the vehicle and i also know there will be some taxes and fees, which i don't know how much that part will be. But back to my initial question after knowing all i have said thus far, when paying in full, are there any questions i need to ask, anything i need to be careful of when i do in fact make the purchase with this method of car buying? Do they have have any secrets i won't be aware of?
Not sure if you bought a car yet but I bought a Toyota last month. I put down a deposit and chose the exact car I wanted and I told them if they put dealer add ons or try to mark up above msrp then it’s a no deal for me and they agreed. The finance manager will try to sell you stuff but other than that there are document fees around $200 and sales tax is paid later at the DMV.
They have said many times, NEVER tell anyone you are paying cash until the deal is done. Dealers make money on financing and want you to borrow from them. If you say up front you are paying cash they will not negotiate on anything.
@@mungox1 - So it’s better to get a loan then pay it off asap?
@@Once800- Finance for the car. Then 7-10 days later either mail a check, or walk into whichever lender it is you borrowed from, and make the early payoff amount. It’ll be a major low blow to the dealerships profits from the products they try and force upon you. And you’ll save a bit of money on interest by only paying 7-10 days of interest vs 30-40 days etc.
C c ddqdq
Where in Canada can we get a break like you guys give.
I think you should discourage people from ever buying a new car. I used to work for lenders and was amazed at how much a new car depreciated the second it was driven off the lot. It was thousands and was always a terrible shock to the purchaser.
Discount Refund Agreement. In Nevada, Ford called it Red Carpet Lease. I’d assume as if you’re walking down the red carpet and you can get into another Ford fairly easily to get out of the lease.
Where can I find the term analogy codes that is needed when you go into the F&I office?
The behavior a lot of dealerships are engaging in smacks of people who don't value repeat business. They're not interested in building a good relationship with the customer because they know they'll never see you again. I can only speculate as to why. Possibly they think that in 10, 15, 20 years when you buy another new car, they'll have moved on and sold the dealership to someone else. Or you'll buy a different brand. Or they see the handwriting on the wall for the entire franchised-dealer business model and they know they won't be around in 20 years.
Y'all are great! I'm loving my 2011 Crown Vic more and more each day.
Sounds like I need to sell my extra car NOW and cash in while I can
You can see if the market will go higher but if you know what you'll get Joe and can reinvest that money into something that will pay off even better, go for it.
You say walk out. That's all well and good but, I would make as formal complaint as I possibly could to the car company itself ! There are too many of these dealerships giving the car company's a bad name !
Got an offer for 23k on my car. Went to their dealership and was offered 13k 😳 what the heck
Your program is awesome and VERY informative! Thanks for what you do. On a side note, Kimberly, is your cat a chocolate point Simanes? I had a blue point. Beautiful cats.
A Toyota dealer told me that when I wanted to buy my car at the end of the lease I would get a better interest rate if I paid for the certified used car fee which was 2k. So he said I got the used certification for free since the interest rate is lower.
Shell out the big bucks, TIM! This channel is for people who have some common sense!
Hi Linda, these 2 guys are entertaining, but, remember, they are choosing not to open a dealership, instead, they sell the same products as the dealer, but, pretend that the dealer is bad. These 2 charge a membership fee and get money from youtube revenue to bash the dealer. Be careful out there, I wouldn't buy a extended warranty ever, but, if I did, it would be at the dealer, not from unregulated people on youtube. These 2 constantly tell the viewers not to buy a warranty at the dealer, but, they have warranties for sale, (why do they even mark it up if they wanted to truly help people?) think about what I just said. I hope I have helped you. Tim (Used Car Dealer in Florida).
Very informative! I'm so glad I've your videos. It is very helpful for all the ones wanting to be educated and improve their negotiating skills.
Legit, this content is great even if you're not buying a car.
You guys are fun, really enjoying the videos.
Thanks for what you're doing. It's great!
I drove 3 hours & forgot my title at home. They still let me buy a car and they took my trade in. They gave me a loaner car & when mine was detailed they drove it 3 hours to me and I gave them my title. I thought it was really weird but I was happy they took it without the title lol.
There are more bobby traps to watch out for now in just buying a car than in a Ukraine mine field. What about getting a pre-purchase inspection and using someone like AutoTrader?
They penalize you if you pre pay and the penalized you of your late.. There is no way to win. 😣
Currently we’re driving a 2001 Infiniti G20 with 116K miles and a 2002 Camry with 195K. They both are running strong and both have had their exhaust systems replaced other than the normal maintenance issues so we’re not in a rush to get new vehicles until the price drops to a reasonable level. We plan to buy either a Highlander or a Forerunner. We know we’ll be waiting a while 😂😂
Can a dealership refuse to service your vehicle?
I was just at the dealership last week. I wanted to negotiate a price and was told, sorry we don't negotiate. Is this normal?
hey guys, i live in Alberta, Canada. love your videos and wondering how much of all your content can be used in Canadian dealer? maybe do a show for canadians or do you know of any content that relates to canadians? keep up the good work
So I have a question for you guys about extended warranty. We purchased one in a past that was not from dealership. When our Suburban broke down, the dealership held our car hostage and put us in no winning position. They put like $600 or more inspection fee up front, which meant the car would have a major component taken apart for inspection (supposedly) and car would not be returned until extended warranty company will approve the repair which they told us may take from additional 3-5 days. If we were to take car back from dealership while waiting for approval, the fee would not be used towards final total part of fixing fee. What are your thoughts on it and have you ever experienced that? For the reference, we have very few dealership choices in the state.
I've heard of shops asking for labor cost for a pinpoint diag on mechanical issues. Not everything can be read on a scanner through the OBD/2 port. If they have to remove and disassemble the motor and transmission to figure out the problem, that can easily be hundreds of dollars of labor cost per AllData (dealership rates are even higher). I'm guessing their labor rate was $150 - $160 per hour so they were basically saying that to determine the exact cause of the problem they were asking for 2 hours of labor time just to tear down the motor and determine the issue, at which point they would have to ask the warrantor if it would be covered. Then 2 hours of reassembly time to put the motor back together. The likely reason that this cost would not be applied to the final repair cost if you take your car back is because they would have to spend another 4 hours tearing down and reassembling your motor when you bring it back. Your warranty company probably won't want to pay for that twice, but the technician wants to get paid for their time, so they were strongly requesting that you leave the vehicle there so they can just dump it in a spare bay and leave everything apart and organized for quick reassembly when they got the approval and the parts to make the repair.
When you deal with the warranty companies they want a long story (they actually say internally that you have to story out the work in MPI or whatever the shop uses for notes) with pictures of what was found and what condition the parts are in. They may or may not send someone to the shop to verify in person. And if you're lucky, the shop doesn't have to actually call in and sit on the phone waiting for someone to answer. My service writers can be on hold over an hour trying to get someone to take their call to get warranty work approved. And of course for other customers coming in to drop off a car it can look like a writer is doing nothing but whenever that warranty company picks up the phone you have to stop everything and deal with them and only them, so getting involved with another customer face to face doesn't work.
@@Oxios I totally understand what you are saying. This is no different than trying to get medical procedures approved while patients are waiting for them. This is why I question whether the extended warranty that is sold by 3rd party (including YAA) is actually worth it. We have almost non existent public transportation where I live, and if car rental is not included for duration of time from diagnostic to actual repair then it's a crap deal and not worth it (you were correct they wanted to send their own guy to inspect and due to that dealer also increased the final price of repair by over $400, so we chose no warranty and have dealer repair it to save cost on extra price tag and cutting down time by 3-4 days). So my final question to you based on your experience dealing with repairs and warranties, is it worth it to purchase. If yes then from whom?
@@makb5354 It's worth it provided they are easy to get on the phone, will accept a thorough story from the technician without having to send a 2nd opinion on to low ball, and one that had a comprehensive rental policy. Especially for trip interruption, since some warranties don't cover a rental until diag finds a warrantable repair and that could be up to a week the customer is left waiting. I don't know what's available to you, but I would say you could always ask the technicians or writers which companies they know that have always been easiest to work with.
Oh yes they are the biggest con artist and crooked people
They have threatened my of confiscate my car after they worked on it and couldn't fix it because they sad if was unsafe to be driven they are scary bstrds,
Another way to think of VSCs - they don't normally cover consumables - brakes, tires, etc. Also, remember OEM brakes generally last a long time. I bought a maintenance plan on my '14 fusion, they threw in brakes in their estimate to show how much I would be saving. I'm 18k miles past my maintenance plan at this point, still running the original brakes, and anticipating another pass at the inspection station.
Plus they only cover anything after the manufacturers warranty as run out. Plus if you have not maintained your vehicle according to the warranty contract they can and will refuse to cover the repair cost.
I'm looking at a used Lexus RX350 F with approximately 80,000 miles (can't afford new). Putting down approximately 30-40% and my USAA agreed to finance the rest at 3.2%. The price is $34,900 with 86,000 miles. First, can you tell me how much the average markup is today for a used car? Also, what questions I should ask and what info I should not tell them? And can I get a VSC for a used vehicle? No question is a silly question. I have been watching your videos, but is there some you can refer me to on dealer vs customer on used cars?
I had a 2014 Fusion and it was my favorite car of all time and I've had a lot of cars. Unfortunately I totaled it.
The FNI manager is not scary, he/she is sleazy.
Extended warranties are a rip off Idc who it's through what they don't tell you is all the preventive maintenance has to be done by shops not by you so you will spend 1000s on that alone
Just a suggestion, you need more drums & while your at it maybe a little cow bell! 😎
I see what you did there 😏
Exactly what is Buy Rate!
Buy rate is the percentage rate the dealer gets from the bank or finance company. They then add points or percentage points to pad their profit. So example the dealers 2.5% from the bank. They then sell you a car and the deal is financed for 4.5%. The 2% added to the rate is total profit for the dealer.
Uh, F&I deals with compliance but there is absolutely no law that says every customer has to be "offered" service contracts. The compliance they deal with is ensuring the car is titled appropriately and the loan paperwork is filled out properly. Kimberly's assertion that "every customer must be presented and offered" is absolute dealer BS!
Thank you Ray, Zach & Kimberley for this great and informative video ❤
Went to a hyundai dealership in texas today and they told me i can't finance through my own bank, that i would have to finance through them and their banks only.
I'm very curious. I agreed to a price and put down a deposit on a car in transit (I did ok but wish I had found this channel before to do better). The dealer said we would work out financing once the car is here in two weeks. Is that normal? Should we be concerned about them trying to sell the car to someone else and/or is this a tactic to have us get excited it's there and agree to more stuff in the finance office?
If you are worried about the dealer selling the car to someone else, you should ask to do paperwork a few days before the vehicle arrives.
Many customers get upset if dealers run their credit twice, so most dealers will only ask for a credit application just before delivery. The dealer assumes you have the means to pay for the vehicle before you give them a deposit. Some dealers are more generous about returning a deposit than others. At least some will take the stance that if you gave the deposit and then failed to buy the car at the agreed price, it doesn't matter the reason why. You lose your deposit if you cannot fulfill your promise to buy.
Thanks for the information. Trying to buy Ford F-150 Lariat 2023.
very informative!!!! thank you
Just curious; over the decades, how many of these practices, if any, did you engage in? As a salesperson, were you morally outraged, and non compliant with management policies? As an owner, how were your salespeople treated, trained? paycuts? demos taken away? demos at all? mounting chargebacks? surprise chargebacks? were they paid salary plus commision? Draw? Straight commison? bonus money witheld? pay raises ever? Easy to be a 'teller', but background info is always interesting
I always get service contracts. Got it on my last car a week ago but I negotiated the price and saved $1500. I need the peace of mind, comprehensive contract svc as well. I always negotiate them.
I went out and brought a 2024 honda rirgeline trailsport. I was using to finance through honda so I found get the 1000.00 lokality program I had to keep financ e for six months it didn't,t pay off to do it
You say, "My cookies are frosted" like it's a bad thing. Frosting on cookies is a happy thing.
This is a really good point!
Has anyone seen a sticker where the "Standard Features" for a particular model are listed as additional expense at the end of the window sticker?
Would you put Lower down payment to cut the 1/2 point on interest? Or would you put higher payment on higher rate? The interest difference is not big. Amazing Shows
You are great Kim. Thank you for teaching subscribers about F& I.
When I was an F&I Manager our dealerships goal was to make 100% of all profits, from The Service and The Finances Departments. The sales profit was the "Extra" profits. I had to make at least $1750 per car, in Finance profits, on every car deal. And that was in 2005.
What did you do if the buyer declined everything in the F&I office? Not sell them the car? When I bought my Subaru last year I politely told the F&I manager that I did not want anything that didn't come from factory...nothing. He tried to go into a spiel about how discounted the extended warranty was, blah, blah. I stopped him and politely told him I did not want to purchase anything...he then told me we were done and sent me back to the sales person to close the deal.
@@pinky882 I had that same experience. The F&I guy was like my best friend and went on and on and when I told him no thanks, the color in his face dropped and he asked "why?" like I was insane not to take his offers. I said you guys make good vehicles and I take care of my vehicle and the 4 year factory warranty was enough for me. He sent mt back to the salesman also. 😎
@@teleguy5699 Haha...LEGEND! They screw over some many people, it's fun to watch them shrivel a little when you tell them NO
@@pinky882 the Finance person is not your friend. There only goal is to separate as much money from the consumer as possible. They are so unethical.
@@SG-is6vn Did you even read my posts?
Question to you all. If I was really interested in buying a vehicle but before I make a final decision I want a independent mechanic to give it a look see and go through it at my cost. Would that be possible?
I'd say yes. Private sellers do, if dealer won't allow it then you have answer to not do business with dealer. If nothing to hide....
I’ve been doing a lot of research before buying a car. This is all so overwhelming, idk if I can do this without getting boned one way or another !😭
All dealerships have a lot of staff, large facilities and big payments on inventory. Why would anybody think they are going to give the best deal possible. The opposite is true.
Can you blame them? Blame your self for not shopping around and not educating yourself.
Can y’all explain the difference between a car allowance and actual cash value of a trade? Thanks