13 CAR BUYING MISTAKES - How Auto Dealerships rip you off - Be an Expert Buyer! The Homework Guy
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- Опубліковано 30 чер 2024
- CAR DEALERS WANT YOU TO JUMP INTO A CAR DEAL UNPREPARED, BECAUSE THAT'S HOW THEY WIN BIG! Don't be the person who commits these 13 Critical Car Buying Mistakes!
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With Titles like 11 Fake Fees, to Don't Say I'm Paying Cash at Car dealerships, and Car Shortage Crisis, and Car Dealer Says Bring the Car Back!... The Homework Guy Team publishes videos to help Car Buyers. Then we added Cash Buyer Negotiations, and Held Hostage at a Car Dealership, No Haggle One Price Car Dealerships, How Much do Used Car Dealers Pay for Cars?, 10 Things You Should Not Say to Car dealerships, and the Costco Auto Program. We hit all the topics, and we represent Car Buyers, a goal that’s often in direct conflict with Car Dealer goals.
A CAR DEALER WANTS TO:
1. SELL every car for the Highest Possible Price.
2. CONVINCE Car Buyers to use Dealer affiliated Lenders / Banks.
3. LOAD every Car Deal full of Fees and Finance Products.
4. OFFER Lowball numbers on every Trade Vehicle.
THE HOMEWORK GUY TEAM (THG) HELPS CAR BUYERS TO:
1. BUY a Car from Dealers or Private Party Sellers at the Lowest Price.
2. PAY Cash or Finance with their own Bank or Credit Union.
3. DECLINE Dealer Fees and Finance Products.
4. TRADE / SELL their current vehicle for the Best Value.
For more than 40 years, dealerships have EARNED their lowly reputation by being the masters of predatory selling. Dealers stalk victims relentlessly, often ruthlessly treating the most vulnerable car buyers (like seniors, for example) with little or no conscience. Car Dealers and their Finance Officers have no problem creating financial devastation for their customers with over bloated car loans, and quite often do. We point out the traps and the flaws of the process, and help car buyers get by all the nonsense without being ripped off. We promote fairness, honesty, and transparency, and we’d love to see a few dealers join our mission!
The Homework Guy Team provides car buying consumers with information, automotive news and updates, industry outlook, buying and selling advice, and other help to level the tables. The public face of THG is Kevin Hunter and the master negotiator, Amazing Elizabeth. Tons of time and research goes into every show, with several projects always on the table, all with the goal of getting it exactly right. From Automotive News Updates to vehicle shopping advice and assistance, The Homework Guy Team is the best there is.
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How can The Homework Guy Videos help Car Buyers?
1. What you need to know before buying a car.
2. Information you need when buying a car at a dealership.
3. Benefits of Buying a Car from a Dealership or Private Party.
4. Questions to ask at a Dealership
5. Car buying tips and tricks from the experts
6. How to Buy and Pay for a Car with Cash
7. Using Carmax, Edmunds, TrueCar, Autolist, or Kelley Blue Book for Car Pricing Info.
8. Buying a Car out of state.
9. Taking Control of the entire Car Buying Process.
10. What to do if Scammed.
11. Illegal things Car Dealers can do.
12. Understanding Dealer Financing Tricks
13. How to Avoid Dealer Scams.
14. Reactions to Sales Training conducted by Car Trainers.
We’ve seen amazing growth with over 359,000 Subscribers and counting. Meanwhile, if you prefer to fix your current car (and we recommend that you do!), check out channels like Chris Fix or Scotty Kilmer! If you wonder where we get such brilliant financial ideas, watch the Dave Ramsey Show! - Авто та транспорт
Never buy a car or get finance from a dealership, i work at a dealership, we survive because people are stupid, do not be stupid, buy privately and buy with cash, and only buy what you can afford. That is the best advice you can get.
must not be a very good one.
DirtybeatZ uk excellent advise , your correct
Im been trying to orde a new escalade but they to make me pay 5000 over msrp is any way i can avoid that?
@@24-7racing You think a 6 year old comment will reply to you huh?
When buying, demand to talk with just 1 person
No way I'm gonna talk with 3 different people when buying a car
This is why anytime I have to negotiate something, I ALWAYS take emotion out and think sheer logic. It's the most effective.
434 people who disliked this video were car salesman
Lots of people say in the negotiation profession. The best advice they could give is to never be afraid to walk away. If the the deal does not work out for you, even just by a little. Just walk away. You might have wasted 2-3 hours of your time, but you saved your pocket book from a $30k-$50k payment.
I like to get the sales guy emotionally involved in the transaction. I know I have them when they start getting pissed at me for telling them no repeatedly.
"The deal and the car will still be waiting for you no matter what they say." What a perfect comment!
As someone who is planning on getting a car this video was incredibly helpful. Thanks.
Thank you for all of this information, you nailed almost every aspect that I warn all of my sons about. Particularly with the GAP insurance, we are definitely on the same page here. Always be prepared when going in to buy a car and better yet, negotiate your deal with the sales person via e-mail and when you're settled on the terms, then go in and stick with what they have agreed to. Thanks again!
Just bought a 2020 Honda CR-V. I watched some of Kevin's videos including this one, and expected every twist and turn in the road. I absolutely loved when they tried to push an extended warranty on me.....by telling me the car I'm buying could be a piece of crap and so I need the warranty. It was the exact same strategy that Best Buy uses to sell extended warranties.
Thanks Kevin!
I would've told the sales person and manager that finance admitted that it was a piece of crap and you'll have to pass on it then wait and see
They admitted that they're knowingly selling defective products hahahahaha
So the TWO consultants you should bring with you to purchase a vehicle is a top grade mechanic to check out the car, and a top grade accountant to check out the financing.
Car buyers appreciate this kind of information.
And these are the people that don't want to allow Tesla to sell directly to their clientele b/c they want to "protect the consumer".
+303manu3l303 "Customer" = sucker
wholeNwon Damn Right.!!
After they test drive your trade in vehicle, get the keys back before you do any negotiation. The mechanic who took the test drive seems to want to hold up the ability to walk away by keeping the keys "missing" for a little while. No keys, no negotiation.
Best advice ever! When I go in to buy a car, I take no BS from car sales people. The deal-making process is a mind game. You usually have to be a good actor with a poker face to snatch a fair deal. I love seeing their faces when they realize I'm in control, not them!
Good and honest video. I sold cars for 15 years and he hit the main points for us to make money...I was good at ripping heads on emotional buyers.... I had to get out of the business because of bell to bell working hours, which made it tough on my family and my conscience....LOL.
Im 32 and have bought 4 cars in my life time. My father however was a negotiator for Starbucks and has been there for all 4. The most important things to consider other than knowing the basics like what the car is worth etc... are
1: to take it to a mechanic. Ive dodged a bullet twice doing this but all 4 cars ive bought i was able to negotiate the price down using the info given to me by the mechanic
2: walk away. 2 of the cars ive bought I walked away from, the dealer called me the next day with the numbers i was looking for
3: put on the poker face, never say you love it or openly express excitement about something.
4: dont fall in love, if the dealer cant hit the price you want it just isnt the car, another one will come up, BE PATIENT!
sandman503 All great stuff! If all car buyers were as savy as you, it wouldn't have been necessary to publish this video. I get a big laugh out of the people from the car business who object to the video content, and then even go so far as to say I "don't have a clue" about the business. Obviously, we hit them right on the head with the truth. Thanks again for your comments.
The Financing guy always gets you......I got GOT by them
that's why you always seek financing OUTSIDE the dealership ALWAYS
Great video. I've purchased 3 cars from the dealership and always thought I had the best deal. But this time I'm going to kill it with the ball in my court.
Don't tell the dealer you're getting financing from a credit union or bank. You can negotiate a lower price, if the dealer thinks you'll get financing from them.
How i got my Vehicle from a Dealer from $11,800 to $10,500.
-Went on a day right after snow storm.
-Went 3 hrs before they close.
-Speak to 3 different sales reps and CHOOSE DUMBEST ONE.
For my situation, $2k cash down plus the stupid sales reps HELPS. He doesn't know anything about a "Corolla Xrs." So he thought its just a basic family sedan. I act like there's a Civic Si waiting for me across the street at Honda dealer which I lied. I spoke to the other 2 sales rep and they told me all the cool features about my Corolla Xrs and its the best of the corolla line, its quick and rare, blah blah blah so i thought to myself these 2 reps will hold their price pretty firm bc they know what the car is worth thats why i choose the dude that doesn't know anything at all. After purchase my dumb sales rep came running to me and ask me "you didn't tell me you spoke to....so and so already. Now you gonna get me in trouble bc i stole their costumer." I just smile and told him "..but you made the sale right?" He smile and i left.
fucked up on the GAP. was gonna walk out with 35k left on car, but ended up getting extended warranties/theft for an extra 6k. live and learn
Do us a favor and clean the language up. With regard to theft protection and extended warranties... Everyone needs to be aware of the fact that you can CANCEL IT after the fact. Some dealers put up a fuss and try to talk you out of it, but don't give up. Take your deal back and tell them you want it cancelled. They will either give you the cash back, or reduce the term of your loan. They will be upset about it, but that does not mean it is not your right to do so, no matter what they say. If they don't get on it immediately, contact the Attorney General in your state. There's a process to go through with filing a complaint, but get it done. IN 100% OF THE CASES WE DIRECTLY KNOW ABOUT... the consumer always got the money back. Some faster, some took longer. You will win 100% of the time. Go for it!
Another Piece of advice I learned buying my latest new car - buy towards the end of the month and insist on speaking with a fleet manager or internet sales manager. They work on volume rather than the price of the car. Meaning they are concerned with selling a lot of cars rather than selling a single car at the highest possible price. Latter involves a lot more negotiation which you want to
avoid. Why at the end of the month? To give you more leverage because dealers want to sell enough cars to collect end of month kick backs from the manufacturer. This saved me a few thousands.
You are quite right. Every dealer is hungrier at the end of the month than at the beginning. All the used inventory on the lot (that was there the previous month) is also 30 days older, and they like nothing more than moving aged inventory. If you don't mind that, ask to see a sheet of call cars, trucks, etc. that have been on the lot for 90 days or more. If you don't find something in that group that you like, ask to see inventory that's 60-90 days old. I promise you that it will make a difference.
One particular car I was looking at was discounted 2 grand 8 months ago. 6 months later it was 3500. Today, after being on the lot for over 8 months its been discounted 13,200. Do the math! :P
Don't forget that there can be Federal and State rebates/tax credits, and even Utility company rebates when buying certain all-electric or plug-in hybrid cars. I got a $4,919 Federal Tax credit, a $1,500 state rebate (California), and a $500 rebate from my Utility company (PG&E). Plus I got 0% financing on my 2016 Hyundai Sonata PHEV. I went though a car buying service (Consumer Reports)--which got me a $2,800 savings, and Hyundai had a rebate of $1,000 (if using their 0% financing deal). Altogether, I saved around $11,000 on a car that had an MSRP of $39,000.
Tim Moore How did you get the rebate from your energy company? I am planning on getting an electric vehicle
I was told my electrical company (Pacific Gas & Electric) was offering them (while watching my local news). I went to their web site, and found a form to fill out. I filled it out and emailed it back to them. Eventually, I got a check.
Just recently bought my first new car. This was my process. I knew what I wanted before I ever set foot on a dealer lot. I spent months researching it and making sure it was what I was looking for, reading reviews from consumer reports and other professional reviewers, and watching youtube videos of amatuer reviewers/actual consumers. I read simple reviews and technical reviews and learned everything I could about it. Then I went for a test drive knowing full well that I needed several more months of saving before I was ready to make the purchase and that making a purchase on that day was entirely out of the question. I wanted to have at least 50% of the out the door price saved up prior to making my purchase. I didn't tell the salesman that of course. When I got to the lot I asked the salesman several questions that I already knew the answer to from my research. Unsurprisingly on multiple occasions he either didn't know the answer or gave me incorrect information. But I respectfully listened to his pitch nonetheless. Then I went home and continued saving and watching for any new reviews or articles to pop up about the vehicle and continued researching. 2-3 months before I was ready to make my purchase I started applying for financing from my credit union. I had been keeping an eye on interest rates and I have not seen a better rate than what my credit union was offering. 1.49% for 36 months. I of course calculated the monthly payment and made an amortization table in excel to make sure that it would fit my budget. I got approved and my credit union issued an Auto Draft, which is essentially a blank check that is valid up to the credit limit that you applied for. You can either choose to use it or take the dealer's financing. It was very satisfying to be able to walk up to the finance manager and say look I am already approved at 1.49%. If you can beat that then maybe we have something to talk about. He was like yeah we can't beat that. We are not even going to run your credit information. No haggling there. In order to get the best sales price I went to the manufacturer's website and built the exact vehicle I wanted and then requested a quote from 3 different dealers. Once the quotes came in I picked the lowest price and forwarded it to the other two and said this is what this dealer is offering. Can you do any better? I also looked on Edmunds and Kelly Blue Book to see what the average actual sale price was and showed that to them as well. When it was all said and done I was actually at about $1,000 below invoice, which I was able to confirm with the Edmunds and KBB information. So it's not like I took the dealer's word for it. I should mention that during this pricing process I took two additional test drives, with two different dealers. One required the salesman be present. The other basically said here is the car, bring it back in an hour. Not having the salesman present for that one was really nice. It allowed me to mess with the various features, test out the acceleration/braking, etc. When I finally said OK I think I am ready to purchase they did not have one on the lot in my preferred specs but they told me they could get one within the next week through dealer trades. The following week was month end and quarter end so they were trying to meet their sales quota. I was not convinced that that was going to happen. Just looking around at various dealer websites in my area I had not seen any in anyone's inventory. I was fully expecting to have to place a factory order. Sure enough they came back with we're sorry we couldn't find one. We can get you one with a different interior blah blah blah or we can factory order but it will take about 8 weeks for delivery. As I think you can tell by now I am a very patient person by nature. I've been researching this thing for months now. Another 8 weeks isn't going to phase me. Plus it gives me more time to save up and lowers the amount I will end up having to write that auto draft for. Lower principle means less interest over the life of the loan. So I told them as long as you can guarantee the price we agreed on let's go ahead and place the order. So that was a few weeks ago. Now I am just waiting to take delivery. I have no intention of letting them talk me into any sort of extended warranties or anything.
+Dustin Dawind too long cant read sorry
+pantelis foutrakis Then don't. I don't care...
+Dustin Dawind cool read. thanks!
what did you end up getting? i need some closure!!
Why in the world would I give a shit about the salesperson's commission? A car is a very large purchase. And I am going to take my time and be damn sure I know what I am getting myself into before I make up my mind. And no the rates won't change. That is the point of getting preapproved for the auto draft. The auto draft is valid for 120 days. The rate is locked in for that time period. And really? You honestly believe a baboon could get a 1.49% rate. Good luck with that. As I said I was watching the interest rates. According to BankRate.com the average interest rate for a 36 month auto loan is 4.6% right now. Go to a a bank or a delaer and I bet you will not find one that can beat 1.49%. Credit Unions are not for profit and can therefore afford to lend at lower rates.
What dealership do you work for?
MY rules for buying a car:
1. buy a used car 2 or 3 years old. ( it has lost most of its original value, have a mechanic check it out)
2. Finance thru a credit union.
3. sell your old car locally ( Craigs list ? You'll get more money).
I have fallowed these rules for many years and extimate I have save many thousands of Dollers and I don't need to deal with the crooks at the car dealership....
You're assuming 0% is available. It isn't always available.
Glad you clarified the difference between financing new versus used. True, when buying new you may indeed get best financing through dealer.
Went to Alexanders in Oxnard a few years ago and was looking to buy. They told me that my credit score was real low and they could only offer me 20% interest. I went along with the scam. Went to my credit union, the next business day and they gave me, 1.6% and my credit score was 150 points higher at the credit union, than what the dealer lied to me about. Dealers will tell you that your credit score is low to jack up finance rates. KNOW YOUR CREDIT SCORE BEFORE GOING TO BUY A CAR -- AND NEVER GO IN TELLING THEM YOU WANT "SUCH AND SUCH" PAYMENT.
Mistake No. 14: Listening to the guy at work who, no matter how good a deal you got on the car, will tell you he got a better one on his.
Read the 2017 Consumer report Reliability Ratings! Then avoid the Ford Focus!
I sold cars for a while, be prepared to walk away. Never buy on the first trip, put car dealerships against each other. Know your credit score, know what your trade in is worth and never go to a dealership hungry. Also, avoid the extended car warranty, undercoating etc., its all garbage. The car coating comes in a 2.00 bottle and the cars usually have rust protection already incorporated in the warranty.
Never go to a dealer when you're hungry... great tip! People get impatient with the process and just want to get it over with, don't they? Leaves thousands of dollars on the table when you pull the trigger too quickly. Great advice on warranties, undercoating, etc. Dealers deserve to make a profit, but some of the things dealers do to people are amazing, and yet many employees in the business are still in disbelief that people don't trust them. it's going to take several more years and a lot of pressure from car buying customers to get dealers to change their business model.
Great advice dude. They should have this as required watching, along with credit card 101 and other videos about financial management to high school seniors.
I'm looking into purchasing my first car and I'm so glad that I stumbled upon this video! Thanks so much for great information, Mr. Hunter!
i cannot believe others would be complaining about this video...to ME, it is ALL common sense!
for what it is worth, thank you for posting it!
:)
HondaMallOfGaUSA Here you go, folks. A car dealership who gets it. EVERY good honest dealer has zero complaint about any of the content of this video because it is all 100% the truth. It has no negative impact on honest people what-so-ever because it has nothing to do with them, just as warnings about high crime in a bad neighborhood has nothing to do with good honest citizens living in peaceful communities. So THANK YOU HondaMallOfGaUSA for going on record here to confirm what we've shared. We know who the complainers out there are, and their clients have every reason to watch out for people just like them in the car business. 60% of the dealers in the market would have serious legal issues if camera's and recorders were in place throughout the company because of the lies and clear violations of law that are made daily in their organizations, and most of the bull shit we talk about happens right in the finance office. For comparison sake, however, when we look at the legal profession and lawyers, many of them make car dealers look like saints.... and the legal profession isn't the only one out there who is worse... there are many. So, we don't need other people jumping on here posturing themselves over a few dishonest car dealers. There are crooks in every profession. On the flip side of this are many great people in the car business, people just like HondaMallOfGaUSA who do a great service every day for their customers, and we love hearing from you. If you are a dealer who agrees and is just as tired as we are of the dealers who shouldn't be out there selling cars, feel free to send us a message directly from your dealership to www.thebusinessforumshow.com and we will be happy to speak with your ownership and write an endorsement for your company. You can send us your contact information by either completing the information on our contact page or by filling out the "Request Interview" tab on the website. Thanks again for your comments!
Kevin Hunter Well said. I couldn't agree with you more.
Thanks for your video.
After watching it I will now be a LOT wiser when it comes to buying my next car.
And stuff those that don't like the fact that the truth has been told.
Wow. I’m speechless. I should’ve just waited and researched for more about purchasing a car. Everything you say in this video is 101% true
I’ve purchased 3 vehicles (2 brand new) in the past 20 years (the car I have now, I’ve had for 10 years), and I’ve made all of these mistakes each time. I was the sucker they got over on who paid too much for the car, wanted to see if they can finance me, and never did research. I never really got the car I wanted, they basically told me what they were going to give me. So I totally understand these points. They remind me of how unprepared and dumb I was. I don’t have time for that foolishness on the next car purchase, though. People need to hear this so they don’t keep getting worked over. Be smart, be prepared. You can never have enough information when buying a car.
Don't feel bad. I saw car buyers just like you, walking into a dealership and hoping everything would just work out. I rarely ever did, in favor of the customer, that is. Knowledge is power. A smart car buyer takes each of these points into consideration, and then with a bit of homework, drives away with a fair car deal that was both good for the buyer and the dealer. That's the aim of this video and any other video I've published. What I never liked seeing on the car lot, and what I never like to hear from car buyers today, was the lying and deceitful actions of a few select people who just can't remove themselves from those kinds of actions the moment they see an opening. When you do your homework, you don't leave the door open for the crooks. While there are many good dealers out there, I'd bet anyone $1,000 that I can walk into any dealership, spend a bit of time there, and identify the people who are fleecing their customers every day. A review of a few of their car deals over the last 30 days would confirm that to be true, and I'd walk away with the $1,000 every single time. That's the problem. Even the good dealers have a few bad apples, and not much is done to get rid of them. When that starts happening regularly in this business, videos like the ones I publish will no longer be necessary. Thanks for your comments! Much appreciated!
Trinity Glover hhgr
Trinity Glover I love
Play some R & B
We play some music
Thanks for this video. This is what honesty and building a relationship with your customers is all about. Too bad most car salesmen are crooks.
I was a complete moron because I trusted the salesman and the finance creep! Will lose more than $10,000 on a Toyota Prius I leased in 2017. Thank you for a very informative and helpful video.
I am so happy I saw this video because I'm about to buy another car soon. The first time I bought a car I went in there with no knowledge whatsoever on buying a car so I was an easy target. Thanks for the great tips👍🏾
I've been buying/selling/trading in cars for 60 years, was even employed as a salesman by a Ford-Lincoln-Jaguar-Aston Martin-Mazda-Saturn dealer for several years, and I never learned as much about the car business as I have from these videos. If you're in the market on any level, you'll find all you need to know right here.
rule number 1 don't be scared too walk away
Exactly right. I'm amazed how often people feel some sense of obligation to a car salesman simply because they have been at the dealership for an hour, two, three, or even more. Much of that slow down is caused by the dealership itself, but the "time investment" still gets a lot of people. They reach a point in which they think "I just want to get it over with," so they stopping look at what's being presented to them, and just sign. DON'T BE SCARED TO WALK AWAY... Great advice.
417 dislikes must be from them thieving dealerships
should watch this video before buying a car. very informative. thank you.
Thanks for this video. Thanks for keeping it short and to the point as well!
When buying a new car, take the out of door final price home with
you and sleep on it.
As a car salesman I want my customers to drive before they buy. Being completely transparent goes a long way for both parties.
Awsome Kevin hate to say it but I got caught up in several of these so called deals. But I have this knowledge for my next car.
Excellent information!! Thank you for taking the time to get this out to people!!
Don't worry about credit score! Worry about price tag .
thank you for sharing this great info with us!!!
I thank you for being truthful. Since I am older I know you are right.
Thank you Kevin, you're doing such a great Public Service.
I see a lot of comments here lambasting the sales reps, but am continually amazed at how many purchasers just say "OK" to whatever is offered....insane!!
I learned a great deal of these the hard way. I am a mechanic so that part was never a problem but when I was 20 I went to the finance desk blind and got hooked for 23k on a 16k car. I'm 32 now and I'm glad videos like this are out there. I know my way around a deal now but it was an expensive learning curve.
And unfortunately, there's a never ending supply of new buyers to replace those of us who have gone through the same experience as you and I have and learned.
Sadly, this is the way the investment advisory business manages to take so much money from people for being average. By the time the older people catch on, there's another generation to fleece.
This, to me, is the best thing about the internet. If you are willing to do some work, you can get some good information on lots of things, and follow up with other venues if needed.
thank god we got people like you, helping beat the youtube algorithm by commenting
Great advice, well done and covering a lot of topics. Thanks!
This is the most well thought out and accurate depiction of what happens in the car business available online today. It is more than amusing to see people attempt to argue with some of the points, yet people see all of this stuff and more every time they go car shopping. Every car buyer should see this before making a purchase. Well done!
Thanks so much it's very useful!
Loved this video so much, I’ve been doing a lot of research and I must say this is a great video.
Better one's cause most of this is common sense stuff, it's more knowledgeable one's out there but this is decent.
The first and most important car buying mistake ever. Buying a ford.
Wow. What honesty!! Ths ks so much for this video
I needed this. Thank you
Thanks for doing this video. I have a 2015 paid off car that used to be my company car. It already has 70,000 miles and I was T-boned by an old lady last year. Everything seems fine with the car, it's just that because of the high mileage and having been in an accident I lean towards getting a used reliable car on which I can rack up the miles for years and I'm proud to own like an Acura (I always had hondas and have always been very satisfied with them, hence always wanted to own an Acura some day), Honda, or Lexus. Yet, I saw a used beautiful Jaguar XJ and thanks to its name's horrible depreciation I've been rather tempted to trade my car in.
I think it's best I don't even drive to the dealership and just keep on driving on in my paid off car.
Great information Mr. Hunter. I appreciate your content and your services.
Good info, really good info in fact. Too many people don't stay 'STOP' I need to know what am I getting myself or my family into.
The prospective customer will never really get to know how much the dealer is into it with any car, consider MSRP numbers, dealer incentives, other kick backs of all kinds.
Therefore there is no point in arguing about his costs, since you'll never know.
You can avoid all the mistakes mentioned in this video and simplify the process by doing it this way:
Firstly:
Don't take out a loan or lease, buy when you have the cash.
(They fleece you on interest, and if you don't own the car, the insurance rates will be excessive). Try not to fall for add-ons, like service contracts or upgrades (that is where they make the most money).
Then:
1. Disregard all the numbers the dealer shows you of what he must get for it.
2. Research (KBB) and check what the average buyer paid for the same model.
3. Make the dealer an "out the door" cash offer with a time limit, and explain that your offer is not open to a counter offer.
4. Go home and wait for the call.
5. If you get a call to come in and renegotiate (he has a new proposal), decline and tell him to call you only when your offer is accepted.
I just bought a new Prius a couple of months ago, giving the dealer 2 days to accept my offer, and sure enough, 2 hours before it expired he called and was ready play ball.
By the way, I paid well below of what they asked for as their "best price", but I am convinced that there was still enough profit in it for them.
Pleasant buying experience, preserving your time (and sanity), and saving you money.
Al Senior There are many different ways to get a fair deal on your next car purchase, and you obviously found something that works for you. Congratulations. Not everyone has thought it through. It may surprise you to know that there are dealers who do share all of their information with clients, and educate them on the process. They are flourishing in their markets (but still in the minority). Obviously, honestly isn't a real attractive attribute in the car business, but it works brilliantly when applied. The process has to be completely transparent for it to be believable, however, and that often trips up even the good intentioned dealers. They think it's better to hold something back. If you've never seen the movie "Fly Wheel," check it out. A few dealers have followed this path and have reaped huge rewards from their customers as a result. I'm not holding out hope that the market will ever do this, but truly honest people are in the minority in any business. Good luck car shopping!
Yes, I have seen some attempts (or shall we call it pretenses?) of honesty by dealers, but my system is much simpler, and I don't have to prove their false pretenses.
Al Senior First, there is no "we" in your claim. It's you calling it a pretense. You likely haven't considered that without a doubt, there is a percentage of the population that views your chosen profession with equally great cynicism. No amount of evidence will change their opinions either. You get thrown into the bag by default, regardless of how good a guy you may be. Doesn't seem fair, but strong opinions held by a closed mind work that way. So, be aware that we aren't trying to change your mind with this video. We are only sharing information and education with people who appreciate the help, and people whose minds are open to possibilities they may not have considered.
Try not to fall for service contracts? Are you referring to the warranty? With my 2003 Honda I decided to go for the expensive warranty since the car didn't have one to begin with as it was so old. Good thing I got it. I was able to avoid having to pay out of pocket for a $5,000 transmission replacement.
Al Senior So true good advice here is some information I got at my last Canadian job interview when they went over how I was going to be paid and didn't request that I sign a disclosure... $2500 for the first 3 months as a training wage base plus commission and the breakdown of that is: A New VW car cost around $10,000 for the dealer to bring in they add $1000 for PDI $1500 for over head $1000 for boss commission and $5000 for sales team commission of which 50% of the $5000 is split between sales manger and salesman. Not to say anyone pays full price but I think $5000 commission is a rip off to the general public and I couldn't see myself doing that for a living. How the sticker price adds up: $10,000 + $3500 + $5000 = $18,500 sticker price. So if you want to know what they paid before you buy just apply for a sales job. All this was learned in one interview.
Thanks so much, your channel is giving me some great car buying tips!
Happy to help! Feel free to come back and comment as often as you can with questions. Often, our viewers reply with advise as quickly as we do, and we have the best Homework Guy viewers!
thanks for educating people. good tips
Thanks Kevin...!
This was very helpful tips and preparedness for me. I immigrated from a different country to USA, and always these tips help me as I am new to all the sales gimmicks in this country USA.
Needed this thanks
Negotiate the price of a car online and through email. If you just show up at the dealership they will make you play the waiting game until you give in. Also, there are usually dozens of dealerships within any area. Negotiate the Out The Door price online between all of them and only show up at the cheapest one.
Right on. You are essentially changes the "rules of the game," and moving it out of their wheel house. They have no leverage when you're off-site, something they dislike a lot. In the dealerships actual training program, they emphasize the need to control the customer... by controlling the conversation, the pace of the transaction, and even the information you have access to. Think about it. When a person is telling you something they want you to believe, most people will not pick up their phone and start reviewing the input of consumers on what was just said. Some will, most won't. When you're off-site, the game playing has to stop very fast if they are going to get you in the door! Thanks for your comments! I'm just curious, how many vehicles have you purchased in your lifetime?
@@KevinHunter I probably bought a total of 6. The most recent was a new car a few months ago. I contacted 10 local dealerships via email and asked for their lowest price. There was a big difference between highest to lowest. I think they offered a low price anticipating they could make it up on financing and other extras. But I already had arranged financing by contacting several banks/credit unions and taking the lowest rate and terms. I only needed a buyer's order from the dealer to take to my bank. In the end the dealer honored their price they offered but I was ready to go to dealer #2 if necessary. Thank you so much for this and other sites that help to educate us!
Keith R .
Friend of mime did that way last year when he bought Mercedes .
Thnks for the tips
Keith R Excellent
This is so useful. Thank you. I feel like I can be a lot more confident going to the car dealership now.
Kevin, I gotta say, I HIGHLY appreciate this video. My wife and I are final at a point in a our lives where we're able to lay solid foundation for our future selves and this video has taught me a *lot* about how to go about purchasing a car! I will gladly take your advice and arm myself for our soon-to-be investment on the next car we purchase. Again, thank you!
Always hated car dealers, and this video illustrates why. Excellent video mate, thanks for the upload 👍👍👍
Well done Freind. Thank you
I wish I would have ran into this video two years ago. This is one of the most informative videos I've seen regarding buying a car. Thanks for posting this!
Great advice,thank you!
I should have watched this before buying!! Great tips thank you so much
Infant Gerald tmmvmfKfm rkrkr
Man that is some great tips thank you
i wish if we have someone like you in our lousy country, Here they do all kind of tricks just to make the deal happen and no one knows you after that.
thank you for sharing the info.
Excellent advice! Good job!
Another mistake salesperson love is bringing your spouse or significant other along with your young children (infant to 3 years) into the dealership. They will try to either pit you against your spouse or say" don't you want the best for your wife or ...." The kids are hungry and tired. Instead of trying to get you out of the dealership, they slow down the process and end up signing any and everything. Also, don't fall for the "good cop, bad cop" scam. I got "duped" once and never again. I now have my financing in place before I go, and when I walk into the dealership, I instantly demand that i close on EVERYTHING in 30 minutes ( I actually use my stop watch!) or less or no sale. More importantly, I tell them up front that I am not here to learn about the car, I've done my research, obviously i would not be in their dealership. If a deal is not complete on my terms, I walk or asked be compensated in cash for going over my allocated time. Keep in mind, you are spending your money and no one should tell you how to spend it. You can find your dream car anywhere. If they sell it, you can get it somewhere else. Sorry for such long email and great post.
I got the "good cop, bad cop" treatment. It was a two year old used car and a senior salesman walked in on us, acting as if he didn't know, and offered me the brand new model price. Pathetic.
Great information! I've worked for Nissan, Chrysler, Dodge, Jeep, Toyota, Lincoln, Scion, Mazda, & Mitsubishi dealerships so I know from experience that this is solid information. Keep up the great work!
Ah.. We have one gone Rogue...
"TIE HIM DOWN, BAG HIM... WE MUST NOT LET HIM REVEAL OUR SECRETS!"
Good info, thanks!
Many thanks!...ALMOST fell for the idea that car looked good on the outside and did not need to be inspected by a mechanic (who was not connected with them)
I did research on the car online before I brought mine n I also talk to salesman by email before I went to the dealership
I worked at a car dealership - Kevin knows the ropes - pay attention! : ). it's GOOD advice
Thanks, David! Good to hear from someone who also knows! It's always funny when I have dealer employees come on this channel to argue that all my points are invalid. The truth is, if I hadn't hit the nail on the head, they wouldn't have cared. They can tell, just as you did, that the advice comes from someone who did the time on a car lot and speaks from firsthand experience! That's what upsets them. : )
Thank you for sharing.
That's great. "Think overnight to calm down all the emotion" works well in all the possible negotiation, even during dating :)
I was totally ripped off when I bought my first car about 10 years ago. I had not done any homework before I bought the car. I got a loan from the dealership, and the rate was 12.75%! And I also bought some unnecessary accessories, I was really stupid at that time. These salesmen are ruthless and the only thing they think of is your money. So really do your homework before making any purchase and also be patient, take your time to make any decision.
first time buyers always pay high interest. Much more of a risk for the bank.
Mike Jordan I was a first time buyer for Honda and I got an 8.25%, This person might have went through one of those "bottomfeeder" banks
***** no finance actually helps if you know what are you doing, I only remember the last 3 cars we purchased at its like this, first one we got riped off because it is 6% so over 4 years a 60k car turns into 80k(Toyota aurion) and we are still paying, our second car was good at 2.5%(Kia soul) and we finished it in just 2 years and third car was cash(Chevrolet captiva) and the next car is going to be 1.5% interest (Mitsubishi Pajero)
***** yes I have heard about it, you only win good money if you have an AMD gpu or the speciall machines
but about the car thing...look at it this way, banks give us interest for keeping our money with them right? its because they get to play with the money and make profit so the same should go for Customers (banks) and dealers (bank account holders) the dealers let us keep our money and take 5-10% interests since they dont have the big cash to play with and -4% interests if a bank is in it because the bank will pay them the full price the first day. the reason the percentage is lower in banks is because banks can play with the money better than dealers and the percentage changes based on the negotiation you do so they make the same profit as they did if it was cash or more than that if they can get you to pay more.
You must have shitty credit? I'm 19 and I have a good interest rate on my car
Good tips. Remember when your monthly payments go down without more money down you often pay considerably more
Bob Is The Builder yeah without more cash down, the only way to get the payment lower is to spread out the term, and of course that means you're paying much more interest on the stupid loan.
The last car we bought, we got a long-term, but then paid it off with a loan from my 401k. Not a perfect solution, but at least the 401K had better terms.
Thank you so much for the tips!!!
Excelent advice. Im about to purchase a vehicle and this video helps me stay aware. Thank you
Jese Carrion how did it go? Can you share your experience? I'm going to be buying soon also
We'd love to hear how that went.
WOW!! Literally learned more useful and helpful knowledge in this video than my entire high school experience. Wow! You are a national Treasure! Never knew all of this before!
Every video you have posted, has helped a lot! Thank you so much!!
Great tips….thank you!!!
this was a pretty good video... thank you!
Hi
I' ve got ripped off twice big I mean big
So I want to advice you that when you are buying a car never sign any paperwork until you check all of this things
1. When you choose a car that you like and when you are sure that that is the car that you want to buy always take some pictures of the price tug lacated on the car take two or more picture from close and far because they can chage the price on the paperwork for exemple if the car has a $12,000 price tug they can raise the price to $16'999 on the paperwork
And if you didn't check that the price is the same with the price you saw on the car's tug they got you.
2 always check interest how much is the bank charging you and ask the salesperson if the interest is per year or for the five or six years term
And always ask how much is the total profit that the bank is going to make on your purches or buying.
Ask the salesperson how much you are going to pay for everything during 5 or 6 years payments including the tug price of the car and the total interest or the bank profits
Including the extra insurance that they make you buy
And you can alway ask the salesperson to ask the bank to lower you the interest on that loan
For exemple if the bank want to charge you 12% in interest you can ask the salesperson to ask the bank who acepted your credit to drop it to 8 or 10 % I 've ask them them And they have drop it down for me
Then after the salesperson has explained every detail about your purchase and you agree then you can sign the paperwork
And if you don't agree you can deny it and walk away.
Also make sure that they show you that they have added the dowpayment or trade in and don't let them pay you low money for your trade always ask for more.
And never act like you are crazy about the car that you have chosen.
Remenber that there are no friends in this business people at the car dealers are there to rip off people and their smiles and coffees
And what ever are always a way to expensive.
They have no feelings for no body.
Make sure that you Always treat sales people deales like the people who smile in front of you but when you turn around they stubb you from behind.
Awsome tips. Thanks!
Tnx for sharing that
When you test drive...put the car in reverse and see if you can backup without issues. Visibility is a problem with many new cars
Good point! Thanks for commenting. Not everyone thinks about the view out of the back of the vehicle until they have to. At that point, it's a little too late to think about bringing your vehicle back. Backing up during a test drive is a great idea!
I learned that the hard way with a 2012 Nissan Rouge, back window way too small and blind spots are ridiculous. I can backup my husband's Ram 1500 better and I'm only 5 feet!
Amen to that! Nissan Rogue has stadium seating in the rear! WHAT???? If you have people sitting in the back seats, you'd be hard pressed to see what you're doing...oh...that's right, that's where they tell you to get the $4k package which includes a backup camera system..,.bastards.
Does not always work, temperature and humidity can greatly change how well they work.
Which is why they all have cameras.
Thanks for this wealth of knowledge. Today my I went with my niece and her mom to help her get a car. She already had outside financing and the dealership salesman didn’t like that right off. Then they came I followed all 13 things you mentioned in this video. Right off the salesman tried to add some of fees you mentioned which jacked the price of the car another $5k. So, he gets frustrated with me being knowledgeable and goes to get his finance manager who immediately start talking over me and wouldn’t let me talk to point of being disrespectful. So, I began to challenge him and told we are leaving. So, he starts trying to persuade me us to stay by saying if I take these off do we have a deal let’s shake on it. I wouldn’t shake his hand. He goes to his office and comes back where he’s taken some fees off only to replace them with other fees. Like I wouldn’t notice. So the dishonesty and lies I told my niece and her mom let’s go. We left and got a call from another finance mama only for me to hang up on him. Thank you for all you do and say in these videos.
as someone that has worked in the auto industry. this is so true. great video. some people will never learn