Internet Pricing Is a LIE. Why Dealer’s Internet Pricing is Bogus. (Explained by a Former Manager)
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- Опубліковано 9 вер 2024
- Never negotiate alone again: joinyaa.com/
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When buying a car, a common frustration for many is seeing one price online and then receiving a different quote in the dealership. Why does this happen? What is the dealers rationale for playing games like this? Ray and Zach Shefska discuss why internet prices are seemingly always lower than the price you are quoted at the dealership.
Please don't apologize for what you say is ranting, because you're NOT RANTING, you're being HONEST and thank you for that👍🌟
Your dad is right! I worked in two dealers, one lied the other told the truth. The one who told the truth sold a lot more cars
How did you decipher who told the truth?
@@Pearl3Drummer Well, The Manager would tell the sales people everyday to just tell the truth, if he found one that didn't they would be gone.. It was amazing to watch a deal go down, when people are told the true about there trade and deal details, like there were in shock..
I found the opposite actually
Honesty gets repeat sales. Friendship gets repeat sales. Bravo for taking the higher ground. Enjoyed the video.
I bought like 7 cars from the same salesman for that exact reason.
wish i could find a toyota dealer in my area that way...
You teach people how to treat you. Rewarding liars by doing business with them, is teaching them to continue lying to you.
same in politics: they know they're lying, we know they're lying; yet we keep voting them in.
Most buyers are liars, so you're probably right.
When I bought my wife's vehicle. (This was 6 years ago and a used vehicle) Was listed on-line, on the dealer's website for $5k, Got to the dealership, wife test drove it, went to negotiate and they tried telling us it was $6k. It took us getting up to walk out to get the negotiations going. Got it OTD for $4800.
Just discovered your site a couple days ago. You and your dad are very unique. I could listen to you guys all day. Very informative. Thanks
I'm no where near being in the car buying market or car selling business but I can listen to these two talk business allll day.
Bro. Tolliver man I’m with you. I’ve watched several videos. They’re great
Yes. Same here
Ray, I'm starting to think you have some Scotty Kilmer blood in your veins with your great Ethics, Bless you Ray🙏👍
Yeah, but Ray has to work on his hand waving and we need some laughing horse pics. :D
Scott Kilmer is a Toyota troll 😂
Endless money salesmen ?
Scotty Kilmer is ethical?
The problem is Ray doesn’t own the dealership so he doesn’t make the pricing guidelines. He’s an employee and needs to follow the guidelines of the dealership or leave.
Dealership add on’s Like LoJack. I asked about removing it and they said they would have to charge to remove it and gap insurance was mandatory. I said goodbye right there. Maybe a good topic.
I was upside down in a car by a few thousand dollars. I got GAP insurance as part of the deal through my credit union. Someone hit me and totaled my car. With GAP I didn't have to come up with the difference. If you are upside down in a vehicle I would recommend GAP. Same thing happened with my motorcycle. GAP isn't much when compared to being upside down thousands of dollars.
Some dealers have put tracking devices on cars so they can immobilize them if the payments aren't made. Nice trick they'll likely not tell you. Mandatory GAP is another dealer fraud. Run away!
My daughter did her research on the internet. Then she walked away from one dealership that was BSing her. The second dealership gave her a good fair deal and she bought a car from them.
My pet peeve is the "steal your trade in" scam. They offer you a price for your trade in vehicle, then charge you the same exact amount for a "fee" of some sort on the final tally. Seen it so many times. Walked out enraged once. I swear, no matter how good a deal I get, I still walk out of dealerships feeling dirty.
So don’t trade in.
I experienced this first-hand years ago. Saw a brand new car for $16k in a newspaper. I needed a car and went to the dealer. I spent the whole day before realizing the price was not going to happen. Bought a used car for a fraction of the price.
You messed up the moment you found a car in the newspaper.
Hello there, I just watched your latest video about dealerships lying about car pricing on the internet. I’m new to CarGurus and have discovered numerous dealerships have been false advertising their cars to get page 1 placement after the first three sponsored vehicle ads. I noticed they receive a “Great Deal” marker due to this false advertising. Yesterday I observed Hertz selling an advertised 2019 Ford F-150 Lariat for a great price ($29K) but the vehicle pictures were a XLT model. I also noticed this is happening with 2017 Lexus RX 350 F-Sport but it’s not. Why do the dealerships get away with this scam and CarGurus allows this to happen? I brought this to the attention to CarGurus and they did nothing about it. I have noticed this happening for more and more by several different dealerships in my area. I live in San Antonio and there a few people that own a majority of the dealerships here. I know this is a factor as well.
You need to review the consumer protection laws in your state. It spells out exactly what they have to do. Long as you know the law for your state you can force them to honor it or they will receive serious fines. In GA a dealer can easily catch fines around $7k just from one customer incident. Well the dealer catches a fine and the salesmen does, but you have to know and call them on it. If you don't they just got away with it and that is what they are counting on.
I saw a new Jetta on the internet advertised at $4,750 off MSRP. Went to the dealer and asked, do you have the car and is it $4,750 off of MSRP, the salesman said yes, I said
write up the deal, and I drove home with a new car one hour later. It was easy
@D J No not really, the salesman went with the discounted price offered on the internet with mfr’s and VWA finance rebates. $4 ,750 off is a great deal and I’m still driving a trouble free car 6 years later. I don’t haggle, I wait for a good advertised price and I say ok, it should be like this for all new car purchases
@D J The dealer didn’t pocket anything, those rebates went against the price of the car. I don’t care how it’s sliced and diced, I can live with the price I got and compared to other dealers it was the lowest I could find.
16 years I bought brand new Ram 2500 , the price was 37500 but the final price I paid was 30000, I spend about 30 days going in an wasting their time getting rides and telling them that 30 grand is all I will pay and finally they agreed, after 5 years I had to go back to do some recall and they still remembered me that I got the best price and how they lost money on that sell but I knew they still made money on that truck, btw I still have that track
20% off MSRP? Sure buddy..
Way to go! You can get 20% off the American car makers if you catch them at the right time. I used to get a GM employee 1 discount and would get about 20% off their trucks but stop buying them because the are junk.
Chris Wilson it’s true my dad bought a brand new suburban for $51k 2020
There's no way they took a loss because they can just simply refuse to sell to you. What's the benefit of losing money on a sale? If a dealer isn't comfortable selling a car they just won't sell a car. You have no right to buy a car from a dealer just because you want a certain price. They either made money still with a 20% discount, or they calculated the back end to make it up, unless it's a vehicle that's been sitting there forever and they needed to move it to stop the loss on stale inventory and get a new car in to sell.
I’ll never step foot in a dealership again. Feel like I need to take a hot shower after just driving past one.
Go in , test drive and ignore them .
I went to a no haggle, no pressure dealer to test drive a car. Felt pretty good about it, then got the third degree from a sales manager. Left steamed for an hour. Will do my deal no contact when ready to buy.
I bought a new vehicle at a big internet dealer in Idaho and nothing changed when I showed up. I also saved about $7,000 from what that same vehicle would have cost locally.
Just tried the Kelly bluebook buy offer. They sent a buy price of 8500. Dealer immediately dropped it to 7200. Then dropped it again to "we don't want to buy it". Then came the we will do better on trade in. Suddenly if it was a trade in, it was back up to 7100. Of course the vehicle they wanted us to buy was way overpriced and beyond what we were going to buy. That is when we walked out.
They also don’t include dealer ads in their internet pricing;some dealers here in AZ charge as much as $2995 dealer ads for window tinting and drop in plastic bed liner on a truck.
Its called bait and switch. I got an entire management team fired at a hyundai dealership in florida. I filed a case with the state of attorney and federal trade commission. The internet manager, finance manager, general manager, sales manager, service manager all fired at same time.
Many dealers will not provide a price when I request one via email.
Not a single dealer in my area will give me a price via email. They all want me to come down in person.
I always send price inquiries to several dealers, the dealers who have what I want in their inventory. I do not call, I use email or the dealer's website to request a price.
The one thing any dealer can know for sure is not sending a price will ensure one buyer looks elsewhere.
Surprisingly, perhaps, I have had better luck with high end dealers such as BMW and Audi. I suspect that is because they view their buyers as a more sophisticated group than those who buy from the mainstream brands.
Any dealer which does not provide a price I ignore. Not providing a price in response to a request is, IMHO, an indication of a dealer which will play too many games.
@Idlia Dosai you're right, as I said the dealers simply will not give you a legitimate quote via email, they always say come down and let's talk about it. if you give them your phone number they will call you way too much. Sometimes they will give you the MSRP over the email but that's it. they will not seriously negotiate with you over email. I guess they are afraid that you will take a price they give you and try to use that with another dealer to lower their price. You can buy a car using Costco, Sam's Club or True Cars auto buying services. But you will probably save more if you negotiate yourself.
I get why they don't want to. They think you are going to shop the price around to other dealers and not buy from them anyway. And yes, some people do this. I look at it this way. If you give the price there is a 50% chance you never see them because they shop it elsewhere, but if you don't give a price, there is a 0% chance they don't come in.
I have emailed dealers saying, what's the out the door price of this vechicle, I am out of town and I have my own financing.
I never get a reply...
Understand what fees they tag on like pinstripes, wheel locks, tint and if you’re looking at a car without those extras then take pictures and tell the salesman that wasn’t the car you showed me. $150 for $50 wheel locks, $199 for pinstripes, $270 for theft deterrent etching while you can buy that on Amazon for $19 and easily do it yourself.
We qualified ...they said the pricing online was a mistake... we left
The ol Bait and switch , but this time it's not illegal cause we made an oopsie
How can we expect real or honest prices online when we can’t even get them after being at the car dealership for 3 hours?
you'll never get a good deal at the dealership. i contact all the dealers with good prices and make the deal thru the phone, and write em all down with all the details (like processing fees, doc fees etc) then i go to dealer and see if they honor it. if not, i just walk out since i got next dealer waiting for me. so whoever most desperated dealer would agree on that price or i can just wait till someone does.
Honestly, a new dealership should START a business with honesty and best purchase experience with no games on pricing but customers should expect pricing to be a bit higher than what the competition lists but will be a much faster and smoother transaction with going with this new honest dealer. The truth is that consumers made dealers lie to get them in the door sadly. Do you think the honest dealer concept would work?
@@jamisont2 o
@@jamisont2 ask for out the door prices. Thats with every fee possible. If you ask for msrp they'll tell you right around the same thing.
Research the reputable dealerships in your area. Not that difficult.
I bought 2019 Silverado last august and only set foot in a dealer to sign docs and pick it up
I bought a 2020 2500 hd Silverado last month and didn't set foot in dealership at all, they delivered it to me
and got great deals on both trucks.....but it takes time, and bit of knowing what to do and when to do it
and yes I have been screwed more than once buying a vehicle in past....with internet now, no way
and both trucks weren't advertised price they were well below.....
#1 mistake is customer asking a dealer what his lowest price is....never gonna happen!....YOU have to make the offer
with the amount of info available there is no reason a consumer shouldn't get a great deal on their own if they are willing to put some time in....if you don't its your fault
don't buy a car on day you test drive....just drive all cars you might want
you cannot count on dealer to give you best deal, you have to get it out of them.....keep your mouth shut for most part and deliver information to them carefully and in a specific order....".everything you say can and will be held against you"
watch videos and research....if someone told you to spend 8 hrs on a computer and they would give 3k, 4k or even 6k would you do it?.....its no different
.
What I don’t get, is how do you lower prices online. For instance, in your case you go Chevrolet.com and costumes your car there, at what point do you negotiate or lower your price?
Just ran into this at a local Toyota dealership. Sticker price was $20k (yes $20k) over online price.
I know in Metro Detroit the dealers list this real ridiculous price. Then you look at the fine print at the very bottom of the page and it says *employee pricing* because they get such a generous deal the general public doesn't get.
Thank you for this video! I'm using one of my mom's extra cars so I have time to walk away and take my time picking what I want to get. I won't settle for less. I keep my cars forever and I want it right.
That's why Tesla is killing it with online one price depending on the configuration. Tesla.com. Legacy / dealership model: Go to website build your car, give your personal info, wait a while for a dealer to get back to you to ask for all the build and personal info again, schedule an appointment and on and on. Tesla doesn't advertise.
Takes me back to the moral/ethical sayings & lessons my father gave to me (e.g. When in doubt don't)
Only later did I understand that the doubt was generated by conscience and should be heeded.
Stuff and more, that I now pass on to my children!
I bought a 2007 Honda civic 4 door ex in 2007 with navigation from an internet price which was the lowest in the country. It was $19,700 and had 12 miles on it. It's now got 168000 miles and the biggest expense was replacing the Air Conditioner($1500) in 14 years. Thank you Greenwich Connecticut Honda!
When KBB first came online in the 90s they showed the invoice, options price, rebates an holdback now it's just designed to hide that info as much as possible.
Them hiding info from you will only screw them if you are an informed buyer and have researched the consumer protection laws in your state. A dealer was forced to sell me a car for $10k less then what they were going to try to get me to pay because I went into the dealer armed. I had print outs of sections of the law to cover everything I knew they would try to pull.... Like dealer fees, Non optional OPTIONS they have installed, honoring advertised price, ect. Do you your research then go to a dealer and make them bend over for a change. If more of us do this maybe they will start operating on the level and post the actual price they want you to pay.
I have a great true story that I’ll try and condense.
Before the whole internet advertising thing, around 2003 I bought a Jeep Liberty for my wife.
The weekly “Camera Ads” print ads advertised the car we wanted for a ridiculously low price about 45 minutes from our home. Went down to buy and was told that was a cash deal only. “Dead Presidents” is the phrase the sales manages said. “Happens all the time”. The next day I came back with the cash stuffed into my socks, all $100bills my bank fronted me the cash on a CC advance. I think the bank fee for the advance was $50.
During the paperwork process the finance manager told me nobody has ever done what I did at that dealership, he’d been there for six years. The same bank then financed the car.
Brought the car home and left my car near the dealership. Went back down with the Mrs to pick up my car.
Best deal I ever got on a car but was pretty stressful as the sales manager and I almost got into it.
The unfortunate thing is that it will never stop. Because there are a lot of people that are going ahead anyway with purchasing vehicles when they're already in the lot and just acquiesce as they have been there for hours and end up giving up. In the name of numbers, more people are just simply going along than people complaning about this in an organized fashion to make a difference.
I've already had some fits of rage shopping for used cars because of this. Walking into a dealership expecting to walk out in a car at the listed online price and either it's not the listed price or the car "was already bought" when I believe it never existed in the first place. The hidden price is out of my budget and I leave. I still have not gotten a new car in over a year because of this. I've abandoned car brand(s) that I loved because of how I was treated and sales tactics like this. So I now am agitated going into a dealership expecting this.
ShadowSiren88 Unfortunately it happens all the time. I just went through it again.
You're describing my feelings and experience exactly.
What you need to do is decide what type of car you want. Then find at least 2 dealers that sell that vehicle. Walk in and get some numbers from dealer 1, tell them you want to think about it over lunch, and then bring those numbers to dealer 2. Put the 2 dealers against each other to compete for your business. If possible, do this on a day with bad weather, so they're more desperate to get a sale. But the number one thing is to not get emotional! Don't act desperate for the car, don't even act as if you like that car. Pretend the car is something you just settled on and not something you really want. You're never going to get a good deal if they know you really want that car.
I really appreciate this video. I’ve been in car sales for 8 months. We would move on price but not much. New management, and owner buyout, came in a couple weeks ago. Now we bump thousands when customer arrives. Some removable, some not. I have lost multiple deals due to this.
I have been the go-to friend to many when it came to buying a vehicle. That was before I started selling. Now I am expected to do exactly what I despise. I have spoken to management about this and they say everyone does it. We were the only one that didn’t and we are losing a lot of gross. I love this business. I’m having a tough time swallowing the new way.
Spot on
We have a dealer here in northwestern Indiana that shows one price and then you click on a tab to form your deal and there is a listing of the charges who can not change. Included in that is a $1500 paint protection and a $400 upholstery protection package. You can not remove them. But that is not the kicker, they has have these charges on used cars as least to the year 2014. We had gotten a decent deal on a car from them a couple of years ago. A salesman I had worked with called me after she saw I had looked at a car. She told me that would not be my price and she would text me a correct price. I haven't heard back from her.
We have a Toyota dealer who is selling new cars for $1200-1800 under MSRP.
Thank you guys, for being a refreshing honest voice in this most shady of businesses. Dealers need to make a profit but at not the expense of gouging or cheating customers. Fair profit is fair profit.
i so hate buying a new car, where can i find a person like you to do all the work.
I test drove a $37,000 (all included price) vehicle at a local dealership, liked it, and they quoted a discount of $5,500 off the $37,000 but it did not have the exact options that I wanted. The Sales Manager said if I could wait two weeks and custom order the exact vehicle I wanted, that there may be more money available from the manufacturer and he could lower the price more. The dealership is relatively small except for its huge inventory, they are low/no pressure and they had awards posted on the walls showing that they were selling 250 to 280 vehicles per month. The moral of the story...volume dealers sell for less. I will be back in 2 weeks.
im betting you got a line of bullshit when you went back? or did they do what they said they would do?
Every dealer I go to for a used car tells me the price is the price, even if I have done my research and can provide lower priced vehicles in comparable condition and miles. Sometimes even better condition for less. But those are also a 4 hour drive away and I’d rather shop locally. I don’t know how to respond to this
Like you guys!!! I am 69 and started out in the car business working in new car prep cleaning cars for a Chrysler dealer in Nashville TN. Went into sales at 19 for a while and then got a really good job a Chrysler Credit when I was 21 and worked there for years. Watching this video made me laugh as my wife decided to trade her 17 Ford Explorer Limited last week for a 20 Palisade Limited which offers a lot for the money and were in short supply. Sales rep proceeded to tell me what a great deal we got to which I said I know we paid way to much price wise and could have bought a less expensive vehicle but it would have been less vehicle so stop lying to me and we will always get along and this was after we had made the deal. Thanks for the great videos.
I have had this happen to my father n law, we went car shopping online and seen a good price and then we get there and the price was higher, we was so mad
I think the issue of morality is a very huge point of contention in the car business and why this profession's collective reputation suffers greatly. As a car buyer WITH morals, I will be honest and up front about what I'm looking for, my budget, etc. I expect the car salesman to be up front and honest about price, known vehicle history, etc., and after 3 months of searching for a decent used car within my budget, I have come across ONE individual who wasn't a bullshitter. That holds true whether through dealerships or private sales. This industry has a very long way to go if they're interested in improving that 'used car salesman' reputation, but I have a feeling the industry as a whole doesn't really care.
that's true --not enough honest sales persons. Car sales industry needs more like you, with your sales ethics. It would make things so much easier. I mean while they may want to sell, the buyer wants (sometimes needs) to buy
What pisses me off is when I asked why dealerships over price a car. They say its "low" compared to others around car industry. Then what's worse is taxes and other charges/fees that isn't included YET!
That’s what I like about it ... sensible talk, father son affection, ethical, etc ... I’m learning a lot from your videos which I recently subscribed.. thanks 🙏
This is true. I have bought 3 cars from the same sales guy and we have now become friends. He and the dealer always treated me with respect and made it easy. I had to drive 90 minutes to get to that dealer but I didn’t mind
I've bought 3 cars from the same sales guy and loved his work after the first deal and then he got darker with each deal afterwards. The last deal was horrendous and I will never step back into that dealership EVER AGAIN! It would really suck to go through life with every single day having to lie to people as part of your job description, and lay on my death bed decades later and take my last breath knowing what a crappy life I have lived taking advantage of people everyday all day.
Your salesperson is never your friend. It's nice that you thought you were treated well, but I guarantee you paid more than you should have. My folks were telling me what a good deal they got from the local dealer on their last car purchase. I never told them that they basically gave away their trade in.
We just got a 'Certified Pre-Owned Car'. The car was advertised for $11,000 with a discount making it $9000. So, we went in, traded in our old car, did the deal, it was VERY exhausting and we're both in poor health. So, it was a drain on us. We had to sign about 100 documents while being told NOTHING about them. We secured our insurance and then drove the car home. We looked at the loan amount from the credit union and it was $12,500!! So, they gave us NOTHING for our car (which has a $1200 value at the LOWEST), didn't give us the discount, and charged us $3,000 MORE than the advertised price!! WTF?!
My new favorite channel. I appreciate the honesty guys.
I stumbled açross you guys today, this was a wonderful gift to my day, thank you for being on youtube
You guys are so right, I wish I had seen this sooner. Four years ago I graduated in May and saw the advertisement for new college grad in Nov (same year), I went for a and they put me into a 2010 Acura MDX with 94k miles. I knew nothing about cars during that time so I took it, now realize I got screwed big time. I am currently looking again for an Acura and I tell you, I'm not going back there (Flow Acura) even though they are only five miles away from me.
BTW, they have a new trick up their sleeves, yeah, we have buyers who are looking for that model SUV we sold you, would you be willing to sell it back to us? So I can come back and buy a newer car? I'll take my business elsewhere they don't screw me.
I tried selling cars for one month after selling furniture for 10 years. I literally sat at an empty cubicle with no training, no modules to watch, And everyday I'd ask for a code to watch such training videos. Only to watch management get too busy to train little old me. Throw me out to customers on memorial Day weekend and expect me to sell cars. Meanwhile observing all their lies and immoral business practices. Put used cars on TrueCar... And like Ray said they had to qualify for rebates, have high credit scores etc. Customers will come from an hour away only to be pissed off because the price of the car went up $10,000. No exaggeration. Advertising was purely a lure to bring them in
Dad is a good man. True upstanding morally right human being.
He's a typical car salesman. He wants to be your buddy while picking your pocket . Don't believe a word he says.
There’s a big chain of dealerships in Orange County, CA which adds an aftermarket alarm to every new vehicle that comes into their inventory. They then try to upsell the alarm to every buyer, and if you say no after a high pressure sales pitch, all they do is remove the fee and disable the alarm system. But your “new” vehicle has already had the factory wiring tampered with before you even drove it off the lot, no matter what.
And the best part? The owner of the dealership chain also owns the alarm company.
What's the name of this chain?
I dealt with a family dealership until they sold out.The principal owner did the pricing. He gave the right price the FIRST time. When advertising.. That was the price less sales tax /transportation.I asked him about it. He didn't want to waste the customer's time! He only had 14 hours per day 6 days a week too.
Last year I bought a used minivan with a trade through Carfax. Found a great deal about 70 miles away with a small dealer. After driving and checking it out, we talked about my trade which he gave me $1000 more than I had figured. We had the whole deal nailed down including finance in two hours. It was absolutely the only car deal I've made in my life that I felt good about. I will go back to this guy, and recommend him. I still have the car, and have contacted this dealer and we're looking for a second car... and I know he's watching for me, he's called me back twice on some maybes.
Here is what I do. I email dealers within a 200 mile radius and tell them what I want to pay and for them to give me their absolute BEST out the door price. Some dealers won't reply, but others will. I then have the dealers compete with each other by emailing them what dealer A is willing to sell the car for ,etc. Eventually, if they are truly wanting to sell the car, they will give you the price you are willing to pay. You can always walk away. I NEVER give them a phone number until they reach the price I want to pay.
Simple intelligent answer: Bait & Switch !
THANK YOU and Kudos! I was shopping for a vehicle a few months ago, and online of course.... they would not even confirm availability let alone price after a week and a half of emails, I did not want to drive 2 or more hours to see nothing, this dealer has multiple locations, and would swap 'specials' between site locations... ultimately bought a used vehicle instead, and still unsure of best way to get a reasonable car deal. All the BEST to both of you for your honesty and information! Cheers ! :)
Interestingly, an ad for a local main street car lot interrupted the video. The fine print stated that the cost does not include $499.00 document prep fees and Smog fee (whatever that is). It went on to say that the prices do not include dealer charges such as advertising, cost for selling, preparing, displaying or financing the vehicle.
It sounds like they are advertising the price they paid at auction and the customer needs to pay for all of their operating cost separately.
Bottom line: read the fine print.
it allowed me to sleep at night great words Ray
For real. I feel bad drinking a $2 chocolate milk from my truck when my boss says I can.
But the people who steal or scam probably sleep well thinking they got one over on someone, for their gain.
I know its your job as a salesman, but lupselling seems like a dirty shameful practice.
dealer i saw last week, add the destination charge back in . its already in the car price. he got mad when i called him on it.
YOUR auto Advocate; I dont think you will believe this, but here it goes! About 15 years ago, i got hired"with no actual experience!" selling cars at a major dealership. They were honest enough to say, if we let you go, dont feel bad, we go through about 5 to 10 salesmen a year! AFTER about three months, and only selling three or four used cars, i got the pink slip. how come i was so lousey? i dident know the con games the other salespersons were doing! They had a sales"lady there, that out sold everyone there! Women would come in to by a car,"new"and they automaticaly gravatated to the sales lady thinking they wernt going to get riped off. BUT THEY DID1 bY THE TIME THEY WENT HOME, THEY BOUGHT THE WHOLE FARM!
One of the First things I ask for is to be shown the invoice pricing for the vehicle I’m interested in and if they don’t produce that in a timely fashion I walk out. If they do that’s where I start negotiating from at 1-4% below as a target.
Online pricing on a dealers website is the biggest scam to get you inside their lot.
11:47 you hit the nail dead center, please do more content exposing this assbackward way dealers are advertising to get leads but no intention of selling at posted low price so they force financing -warranties-fake fees-care pkgs-prep fees and super lowball trade ins
Remember when GM's Saturn cars first came out? They had a MSRP that was the selling price, without negotiation. Just like when going into the grocery store to buy milk and eggs. The price on the shelf tag is the price you pay at checkout. No haggling or bartering. Other dealerships hated Saturn for this. Guess what? Doesn't Tesla do this too? Only for Tesla, there are NO showrooms (or very few).
Tesla's prices are insanely inflated.
A long time ago, I bought my '06 Honda CR-V paying the internet price offered to me. I didn't pay a penny more (not including tax, title, and license, of course). It ended up being a pretty good price. Btw, I'm still quite fond of the vehicle.
The lease on my current vehicle is coming due so I need to do the dirty deed and get to a dealership. I appreciate and am trying to absorb all the info. Thanks for teaching us the wicked ways of car dealers! Wish me luck.
I recently experienced this problem with the internet pricing, then I cam e across a owner with integrity, and boy I wanted to purchase a a car from them. I actually felt bad, determine the orginal truck I was looking at just was not for, so I won'y be purchasing from. Again I wanted to like the truck because of them. Integrity wins out always long term. Thank you for the great video's !
In 1978 my dad took me to a Mazda dealer to see a brand new GLC at a price that was too good to believe. He told me all the way there that there's no way they'll sell him the car for that price.
He ended up buying the car for that price. I think it was $3088.
While I don't have a large background in car sales, but I do have a large background in sales. The retailer/dealer with the largest inventory of a particular product has the ability to offer the biggest discount. My search starts with who had the most of the model I want then go from there.
Hi Guys-thank you! Your father/son banter is really helpful! ; )
Why is it legal to advertise lower prices? Even with the fine print it feels like a bait and switch.
Ya it’s pretty frustrating going to car dealerships. I have no problem walking away though. The problem is they have set arbitrary pricing on their vehicles which makes the situation extremely complicated when you walk in there
Cars, trucks and SUVs have very different values based upon regional sales records. How does a buyer find out the region with the lowest sale price for the model they are looking for? I live in Missouri and would have no problem traveling to another area to make a purchase if I could save more than the trip costs, but I do not know how to research this. As I understand this, it also can impact the trade in value as well. That is why all of the price guides ask for zip code in the very beginning.
Back in the days a car would be listed in a newspaper for a set price. I went in and looked at one and the guy was trying to sell it to me for more. I told him it was in the paper for cheaper. he played the “ let me talk to my boss game” came back in and told me it was a different car the other one sold but they would sell it to me for that price. I called bull shit. Used car with the same exact mileage, color, imperfections as the one listed. I walked out.
Being in the sales industry for a decade, plus it’s so crazy to me that you could price honestly be higher and people will treat you like crap but yet if you advertised a lower price, tacked on a bunch of stuff in manipulated in schemed the customer to get to a price, that’s very likely probably even higher than the original place, we spoke of more people will end up buying from that place
Honesty helps me go back to a dealership. Me going back to that dealership helps me get that lower price, and get it quicker. When you’ve bought your last 5 cars from the same dealership, they don’t want to risk losing you over haggling.
In the process of buying a used car and special ordering a new f250.
Makes preparing for a colonoscopy seem like fun.
Great videos!
You're drugged for a colonoscopy, but unfortunately not for buying from dealers.
@@markh.6687 in context the operative word is "prepared" thanks
I would not even begin to negotiate with a dealer/salesman who won't honor their best advertised price. I don't give a shit what the small print says.
Love to know a Canadian equivalent of you guys. great vids
Dealers and POLITICIANS think we are morons.
Your Dad is super cool! And he raised a handsome, bright young man. Good job guys!
Well I learned one thing today. If you show up for a test drive for a car that's listed online, and they say they can't find it, leave then and there. They even drove me around to find this car that was listed online. They never found it. Next they are offering me a $1000 down and $200/mo car they do have and know where it is. This car was a van listed at $2500. Yeah it's old, but it was fairly low mileage and the car fax report was showing it was maintained, and maybe treated well. It was funny because I showed up to test drive it and 2 seconds into the building and a different sales person comes up and after I tell him why I am there, he's like well we are looking for it, but wouldn't you want a different car, maybe $8,000. It's almost like a bait and switch huh? Maybe I'm lost on that. Anyway, I just left when he went to get keys to other vehicles. I should have been tipped off when the picture on the website was a stock photo. I will be tipped off the next time. I'd rather be buying drugs from a street thug than a dealer. There's no difference between them, except the product. How would they like it if they sat down to eat at a restaurant, and ordered food and ate it at one price and then got the bill that was thousands higher than the original? You would think that would be against some sort of law or something.
I absolutely love you guys and your vids! I as many others are too are totally car buying handicapped! I really appreciate these vids on the truth. It is sooooo refreshing to know there are on the level guys out there 👍👍
Thanks for the kind words! We're just sharing what we know and are appreciative of all those that enjoy and learn with us.
I'm not going back to a luxury dealership that I have done business with for a long time because for some reason, on my last deal I got some shady stuff from the salesman and the finance guy tried to pile it on. I was very insulted they don't recognize me as a long time loyal customer and tried to pull first time buyer stuff on me. For the record, I have bought or leased 4 luxury cars there and have always serviced my same brand vehicles there even if I got it from another dealer due to inventory issues.
It's all nice to know but a customer can prepare all they want and they will still get taken by every dealer. An entire industry, including manufacturers, are corrupt. They stay 1 small step inside the ethical and legal barrier. Sad to say that 90% of Americans don't have a clue about vehicles of any kind. Most don't even want to know about what is involved in the vehicle buying process and, if they did, still would not be able to understand that process. Dealers are professional con artists. If you are honest you can't work for a dealer for more than a day. Many salespeople travel from one dealership to another like Gypsies or Carnival people. And, believe me, they are not as honest as Gypsies and Carnival people. I have found that the only way to defeat them is to research the best equitable price for the exact vehicle that you want. Give this price to the salesperson as the only price you are willing to pay. Refuse any of the addons by the finance office. And, get your own loan or pay cash. Still you will have to fight them off every step of the way.
This is funny and true. When I bought my F150 I went to the dealership in my 911Turbo (I'm a plumber) and after the salesman began his scripted idiocy, I politely interrupted and said "did you see my car? Do you think I'm a fool?" He grinned and said "no".
Bait and switch. Simple explanation.
This reminds me of going to the local dealer with my Dad to buy a new 1957 Pontiac Chieftain. The dealer used the TO (takeover) technique where they kept switching to different managers every hour. After 3-hours and they came back with a lowball trade-in offer, my dad erupted and we left. Bought the Pontiac at another dealer later. He raged about them wasting his time for three hours. MY dad was the senior engineering officer working on the F-105 Thunderchief jet at Eglin Air Force Base near Fort Walton Beach, FL. In my entire life, I never bought a new car, only used. Good discussion guys.
Here in Northern Virginia DC are Criswell Chrysler Jeep Dodge RAM FIAT is terrible about this. This crap should be illegal. The advertise what they call an Eprice which includes every single incentive which no one could qualify for all of the. So NO ONE gets the vehicle at the advertised price. ON TOP OF THAT the dealer adds all weather floor mats, tow straps to jeeps and a bunch of other high cost low value crap just to milk more money out of the customer. I feel like Criswell are scamming people. Its no wonder people hate car dealers.
Well I must have the best luck in the world because I’ve qualified for most of the manufacturer incentives on the last three vehicles I bought and got them for the advertised internet price. In fact, when I bought my new RAM 1500 truck I managed to get it for almost $14,000 off MSRP listed on the Monroney.
I would like your perspective on CPO.
I really enjoy watching your videos! thank you guys. ........ About honesty, it looks like car buyers are now using e-mails as communication tool to buy a car, nobody wants to sit in their shops and listen to all the unnecessary information they share. people go there just to have test drive. that says a lot about honesty.
My experience is that the love sending you auto emails that they won't answer if you respond to them. The internet manager at one Baltimore area dealership never answers her phone and you cannot leave a message, because her box is full.
Dat question at 7:35... Gold.
You guys should do a podcast about all of these topics on commerce, behavior, business ethics, etc. Super interesting stuff!
Its so frustrating to deal with car dealership thats why I refrain myself from buying car. Im in the market for Kia telluride, but they are asking 6k over MSRP. I hope they will learn and go to Tesla model. No haggle, pay what you see online.
That's how some of the used cars have worked online. However, there is a need to backtrack their work still whether it is with the packages, warranties, and/or car features. Good luck! After all, not all of us can afford a Tesla.
Our last Kia purchase made us insane. They presented an internet special price that reflected a number of discounts, including two that were inherently mutually exclusive (financing and dealer cash). When we said we’d pay the price online, they tried to act like WE were the ones who’d come up with the internet price. It is LITERALLY IMPOSSIBLE to get the price they put on their website, not improbable, impossible. I’m sorry but that should be illegal.
Another dealer 3 hours away had the same price on the same exact model/config. Somehow they then were able to honor their published price.