How to Pay Cash for a Car (Exactly What to Say)
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- Опубліковано 12 лип 2024
- How to Pay Cash for a Car: Cash buyers pay more at car dealerships. Sounds counter-intuitive right? That's how car buying has worked over the last five years. Whether buying a new car, used car, or leasing, paying in cash never has to cost more if you know exactly what to say. In this video I explain exactly what to say to save money in a cash car negotiation.
Cash is not king at the dealerships right now but cash is still king in part of the auto industry. In the last segment of this video I provide insight into how a cash buyer can leverage their cash today to get the best deal possible, especially during this economic climate of uncertainty.
More information about this topic can be found at:
notwaitingtolive.com/cash-buy...
Timeline:
0:00 How to pay cash for a car
0:33 Why cash buyers pay more at a car dealership
4:25 What to say to save money as a cash buyer
8:40 Where cash is still king in the auto industry
I recommend the following videos to negotiate your next cash car deal.
How to Make Lowest Initial Offer in Used Car Negotiation: • How to Negotiate Used ...
How to Make Lowest Initial Offer in New Car Negotiation: • What to Offer First on...
How to Best Negotiate Used Car Price: • How to Negotiate Used ...
How to Best Negotiate New Car Price: • How to Buy a New Car f...
How to Best Negotiate a Lease: • How to Negotiate a Car...
How to Lease a Car (11 Frequently Asked Questions): • Leasing a Car (Know Th...
How to Negotiate by Email: • How to Negotiate Car P...
Cash Buyers Pay More (What to Say to Save Money): • How to Pay Cash for a ...
Online Car Buying (How Much Are You Overpaying?): • Why Buying a Car Onlin...
The Story of the Biggest Discount I Ever Gave As a Car Salesman: • Biggest Car Discount I... How Much Car Can You Afford? (The #1 Rule to Know): • How Much Car Can You A...
5 Myths About Buying at the Car Dealership: • 5 Lies Car Buyers Tell...
How to Sell a Car For Sale by Owner: • How to Sell a Car For ...
Buying a Car Out of State (4 Things to Know Before You Go): • Buying a Car Out of St...
New vs Used vs Very Used (What's the Real Cost of Ownership and Best Time to Buy?) • Cost of Car Ownership ...
Scotty Kilmer 5 Used Cars You Should Buy: • Scotty Kilmer 5 Used C...
What Happens to Unsold New Cars: • What Happens to Unsold...
#notwaitingtolive #howtonegotiateacardeal #cashbuyer - Авто та транспорт
Here’s the current average car loan rates right now for new and used cars by credit score: ua-cam.com/video/gsptK3bV8FU/v-deo.html
DO NOT IGNORE THIS You all have to realize that when you sign a contract to get loan, you promise in it to pay and sign for it. So this note is promissory note which is money, you pay for your car right there on day one, They type up digits in bank system what your note is worth and "lend" them back to you. Then they sell (securitize) this note and get paid again, plus you give them your money (which you think you owe them). So bank not risking with anything get paid at least twice. Same with mortgages and any other loans.
I’m buying a new car next week and I’m glad the Universe brought your video into my experience! I am taking notes 📝. Great Information💯
I Don’t say a single word about being a cash buyer until the deal is drawn up on the price of the car, if they start complaining, I just go somewhere else, there are plenty of people that will take cash, financing depreciating assets is the dumbest thing you can do. (I wrote this comment before watching the video, great advice)
I definitely agree. I appreciate your feedback as well.
So what do you usually say when they ask you questions about payment?? Do you lie & say you’re gonna do finance until the end and say your gonna do cash instead??
Want to drive the dealer nuts as a cash buyer? Get financed, then pay the loan off as soon as you get your payment book or online payment account. Dealers will often lose their profit on vehicle loans paid off within so many days of the sale, because the finance source lost money on the deal.
For the next time you're shopping for a car, I've decided to create new car content on a channel dedicated to car buying advice (The Car Consultant): ua-cam.com/video/sjx8MDH4ss8/v-deo.html
Does this work? Can you agree to a high interest rate to drop the car sale price and then pay off the entire loan immediately?
@@tinetannies4637 Yes, it works, so long as there is no pre-payment penalty in your finance contract or the loan note. If Not Waiting To Live doesn't have a video on it, look up The Homework Guy Kevin Hunter's channel; he'll confirm this.
@@markh.6687 Thanks very much!
👍
I like that you give us the verbiage to use. So many articles tell you not to do this or that but do not tell you how or what to say. I stumble on my words when nervous, and I don't know what to say. So this is helpful.
Great video! Thanks for putting it together, looking forward to going in armed with some tactics for my first car purchase soon :)
This is the 2nd video I’ve watched of yours; very well done spoken and informed. Thank you
Thank you I really appreciate your kind words. If you’re shopping for a car right now I’ve started a new UA-cam channel called The Car Consultant where I answer questions about what people should be paying right now. Here’s my latest video which covers the latest interest rates ua-cam.com/video/gsptK3bV8FU/v-deo.html
You get right to the point and explain things clearly and concisely. You insights are a great help. PP Sinoia
Thank you. I appreciate you saying that.
Great info and delivery!
Thank you. I appreciate you taking the time to leave feedback.
I just found you today. This is the only car buying channel on UA-cam that has helped me. Subscribed.
Thank you for subscribing! That’s really encouraging to hear and it means a lot to me.
If you’re looking for more tips and tricks I have a channel dedicated to car buying advice: ua-cam.com/video/GbG91ksQcvY/v-deo.html
Thanks for the great tips!
You're welcome. I appreciate you taking the time to leave feedback. Thank you.
One thing I always make the salesman understand is that we are negotiating the OTD price. That is the exact penny that is coming out of my pocket. Tax, tag, and all fees have to be included. Just give me the OTD and work backwards from it. I have learned that, yes, you can many times get a better deal if you finance because of the dealership's kickback.
My last new one I told them I was financing and asked what was the least I could put down. The vehicle I selected was a fairly rare no options-base car so it was the cheapest of that model to begin with by a tidy sum. It had all the current safety features, but one. They told me their best OTD price on their special .9% financing deal was 4% off MSRP which was only slightly better than a cash deal.
Then they offered me 11% off MSRP ( remember that's OTD ) if I financed it at the rate my credit score required which was 3.5%. I took the deal and then told them that since the interest rate was higher I had decided to pay 50% down. I probably should have waited a little longer to keep the dealer happy, but I went ahead and paid the loan off 60 days later. Also once we have settled on a number i tell them I want to skip F&I (this dealer let me ) and if they insist on putting me through it ,once I go in I just keep saying no thank you. I have bought from volume dealers, but I seem to do better with small dealers with low overhead.
How bad did they stick me? It's an Outback and my total out of pocket is a shade under $25k. I could have gotten a better deal on a CRV, but fewer safety options, reliability ratings a tad lower, and less room. I also drove a RAV 4, but no base models at that time and their offers were too high.
Very useful perspective and thank you!
You’re welcome. Thank you for taking the time to leave feedback. I appreciate it.
Another great video, Manny. I probably would've gone in and said I already have financing. My plan is to get my loan approval,, go in, settle on price, then have my institution pay them in full. I will then pay my bank back in full, or close to it, then pay off the remainder, quickly.I already know the best word in the finance office is "NOPE".I gave you the thumbs' up #999 \m/
Your video is just what we needed! We need a 12 passenger van for our growing family and we want to pay cash. This is so helpful. Thank you.
Thank you. I appreciate you taking the time to leave positive feedback. Good luck on your negotiations.
If you’re looking for more tips and tricks I have a channel dedicated to car buying advice: ua-cam.com/video/GbG91ksQcvY/v-deo.html
I heard this mentioned before but you explain the reasoning much better.
I appreciate you saying that. Thanks for leaving feedback.
Finally, I found the advice I was looking for on what I'll likely experience and the steps I need to take as a cash buyer for a new car! You're very well spoken and succinct. I've been looking no less than a few days for some strategy building confidence prior to my forthcoming trip to the dealership. There are so many well-meaning but poorly produced videos where information is blurted out, either with no continuity, or so fast with little regard to the incompetency of the uninformed that it's been like listening to someone speak in a foreign language. Thank you for your posts, and I will be checking out more of your videos to help me prepare myself as much as possible.
I really appreciate your kind words. Thank you for your time leaving this feedback. On the off chance that you're the same Michael D that just emailed me I just sent a response back to your yahoo email.
For the next car you buy I've decided to create new car content on a channel dedicated to car buying advice (The Car Consultant): ua-cam.com/video/sjx8MDH4ss8/v-deo.html
Great video and information!! I also gave the internet salesman a 30 minute time limit to make a deal or I walk away to the dealer next door! You are correct sir, another dealer will take your terms in many cases! Thank you for a excellent video!
Thank you Sam. I like the time limit idea. That's a wrinkle that I haven't experienced before. It's a way to create more control as a buyer. How did that work out?
Great video... as usual.😎💯 I'm a NEO westsider. I appreciate your wisdom as it aided me in the positive outcome of my recent purchase. Keep bringing the awesome content.🔥👊
Prickly Pear thank you very much. I appreciate your continued support and comments on these videos. The North East Ohio connection makes it even better. Congrats on the recent purchase. What vehicle did you end up buying?
@@notwaitingtolive , I chose a 2017 Toyota Rav4 XLE. 😎🚗
Thankyou so much .You have really helped me.Take care
You’re welcome. Thank you for taking the time to leave feedback. I’m glad you found this information useful.
This video is amazing!
Thank you I appreciate the positive feedback.
Great video! Thanks!
Thank you. I appreciate you taking the time to leave feedback.
Thank you for your quick reply. I am currently working on getting my credit score higher. Will research my own financing - bank, credit union. Also will work on my 20/4/10 ratio, I hope that it is correct. Please keep up your awesomely informative videos. Would love to see a video elaborating how pandemic will affect car sales on next few months.
Local credit unions are a great place to look for the lowest rates. To give you an idea of the state of interest rates in the industry here's a link to interest rates for new and used cars from a credit union here in Ohio: www.cardinalcu.com/rates/auto-rates/
If you can keep your payment within that 20/4/10 rule your future self will thank you. I'm not sure if you've seen the video but I talk about that rule in this video "How Much Car Can I Afford" ua-cam.com/video/OzLfnZKV9OA/v-deo.html. Keeping your payment to 4 years and your debt to 10% of your income will also help your credit score in the long run as you'll have made a more sustainable purchase. Credit institutions focus on your debt to income ratio anytime you're looking at a loan, so the more monthly debt you keep off the books the stronger your credit will be at the same income.
Thanks for giving me an idea for another car video. I would enjoy diving into the topic of how the pandemic will affect car sales. I'll post the link to your comment when I'm done making it.
Thanks! Excellent advice. I live in the Greater Cleveland area as well
Go Browns!
Thanks for the video :) !
You’re welcome. If you’re looking for more car buying advice like what not to say to the dealer I have a channel dedicated to car negotiation: ua-cam.com/video/GbG91ksQcvY/v-deo.html
I'm shopping for a used car and I will try to do your advice. Thank you and God bless!
This is going to help us a lot!!
Love to hear that. Good luck.
Good video. Thank You!
Thank you for the positive feedback. Glad you found it useful.
I like how this video is tailored to these uncertain times! Also thought the FB market place & Craigslist bit was interesting.
Michael Martins I don’t think I mentioned it in the video but my best friend was able to get a Honda Civic on Facebook Marketplace, drove it for a while and then sold it for a few grand more than he paid for it. The car only had a bad battery when he got it. The woman who sold it to him thought the problems were much worse. There are definitely deals to be had out there (but they’re still hard to find).
@@notwaitingtolive Great antidote, I will keep scouring FB & Craigslist for a deal!
Craigslist is often a minefield of spammers/scammers, curbside unlicensed dealers, and nonsense. I listed a car for sale with an extensive description and some jokes thrown in. I knew nobody read the ad from the fake questions trying to look like real buyers, people asking for MY phone number, offering one price in an email, then lowering it in the next one. The curbside unlicensed dealers often have titles to cars they won't pay to put in their name legally (which means they don't have legal ownership of the vehicle), or are selling the car for a used car dealer posing as the owner. You find out when you ask to see the title (ALWAYS ask to see that title) and they say 1) "Oh, I don't have it", 2) It's my friend's/wife's/daughter's car, and they have to approve the deal first, or 3) you find out a used car lot is selling them that way, and fall into the used car lot rabbit hole of games.
Good value and advice...thx for helping consumers. Subd
Thanks for subscribing. I'm trying to add more value where ever makes sense. Are there any topics you like to see me cover?
My latest video is narrowly focused on Truck buyers, so it can be as narrow or broad a topic you're interested in: ua-cam.com/video/4TgUExlq8W8/v-deo.html
This makes perfect sense. Dead Beat Debtors are the new rock stars.
Great video , you have a new subscriber !
Thank you. I appreciate your support.
This works ! I held out until the last minute of telling them I was buying cash. I didn't give them my ssn. I ended up getting a extended 3 yr warranty with road side assistance and a loaner car until they ship mine. I also got 6 free oil changes. Thanks Manny!!!😃
Great vid will ur tips very soon looking 2 buy in a month or so...thanks will u posted..sharing!
Happy to help. Time is on your side, so you should still be in a great position to buy in the coming months.
A close friend of mine to told me to finance a car even though i have have the money to pay for the car in full. He said i should use the car to build up my credit and putting down alot of money in a car is not worth it,but i think im still going to pay it off. I hate owing people money and ill be being paying a few extra thousand dollars for the car. Thanks for your help mate
Any day you can stay out of debt is a good day.
If you hate owing people money I think you made a great decision to just pay it off.
Congrats btw. That’s no small accomplishment to be paying off your car in cash.
Thanks for checking in.
I was looking at the office that you remodeled, it looks amazing! Your info is very helpful! I am looking for Toyota Rav 4 Plug-in , but they don’t sell them in WA Seattle. My Honda CRV was stolen.
Zero dislikes, now that's a video!
I always want to wave back at you. lol ... thanks for the information. Hoping Cadillac does GM Employee pricing in September or beyond, as the 2021s start to roll out. Right now they are only doing lease specials--wanting that $$.
👋 You're welcome Rich. Although the auto industry has improved much since March, sales are still down relative to what they were projected to be back in January. I think there's a chance you can catch some good deals coming up around Labor Day. It might be one of the better times to buy before the end of the year.
thanks for making these videos
You're welcome. Thank you for taking the time to leave feedback.
This video is great. I’ve watched about 10 of your videos and got some great information. I have some specific questions about purchasing a new car. Do you offer one on one consulting call to people to answer questions?
Thank you for this timely video. Looking to buy a vehicle (new vs used, leased vs financed). Glad to have found your channel. Should I wait a few months longer due to the pandemic for better leverage?
Shinobishin04 The new car supply could potentially shrink as the pandemic drags on. Because manufacturing has slowed or stopped recently, a potential shortage of new cars may keep prices higher even if the pandemic worsens. In general this was scheduled to be a just below record high car sales year, with millions of leases expiring in June and July nationwide. I think dealers are plenty scared right now and willing to cut a deal to get whatever business they can. Holding out may work to your advantage, or it may not (there’s no guarantee things get worse beyond April). Either way, right now is a great time to be a buyer.
Thanks for the great advice.
You’re welcome. If you’re looking for more car buying advice I have a new channel dedicated to car buying advice:
ua-cam.com/video/GbG91ksQcvY/v-deo.html
thanks for the advice.
You're welcome. Thank you for the positive feedback. If you're looking for more car buying advice I have a separate channel where I cover that exclusively with tips like 5 things to never tell they dealer: ua-cam.com/video/GbG91ksQcvY/v-deo.html
I cover the latest car price trends for December 2020 in this video: ua-cam.com/video/fscHzYh01mo/v-deo.html
thank you so much for this. all of my other cars have been financed and this will be my first time as a cash buyer. I do have a question tho (hopefully you see this comment): When you are in the finance office discussing pricing and whatnot and they give you a contract with all of the fees and a breakdown of costs, how do you go about negotiating what you are willing to pay and what you will not pay? and will this occur before or after you tell them youre paying cash?
good advice, thanks
Thanks, I appreciate the positive feedback. If you're still in the market for a car I have a channel dedicated to car negotiation advice that you might also find helpful: ua-cam.com/video/wpbvJPVxwfo/v-deo.html
That was good.....I like the method you describe about getting everything written up,then telling them that you have cash or your own financing
Thank you. I appreciate you taking the time to leave feedback.
Wonderful video, sub’d!
Thank you. I appreciate your support.
Very good
Alright I’m sold, hitting that sub button.
brilliant tutorial
thank you. I appreciate the positive feedback.
Thanks so so much
You're welcome. I'm glad you found this useful.
Looking to buy a Honda Odyssey this week. No rush to buy, so I have time to negotiate. Thanks for the advice.
Im finding more and more dealers just post the price on line and refuse to negotiate at all.
thanks! subbed & liked.
Thank you I really appreciate that. If you’re shopping for a car right now I just made a video about the current car loan rates by credit score ua-cam.com/video/gsptK3bV8FU/v-deo.html
I also see a teaching career in your future . a sincere thank you from a desperate shopper
You’re welcome. I enjoy sharing what I know about the world and hope to learn more so I can teach more.
Very helpful. I'm in the market for a new or very slightly used hybrid or standard medium or small SUV. I'm going to use this strategy.
David Yaw Thank you fro watching. Let us know how this approach works for you.
@@notwaitingtolive It went well although this particular dealership didn't try much except the usual finance guy stuff.
What if I do the deal and just pay the loan off immediately after? Great video... I usually buy CPO cars from the dealer and I am shopping for an R8 V10 now. I am prepared to pay cash but I like the info you have put forth here. Thanks!
Thank you.
Financing and then immediately paying off the financing is a tactic that works to leverage the benefits of financing without paying interest. Usually there isn't an early payment penalty, but definitely make sure to check and confirm that for your specific situation. Most recently the stipulations I've heard from other buyers is they had to make payments for 3 months before paying off the car to avoid penalty.
PS I see your other post on a different video. I will get that response to you later today. Thank you for subscribing.
Thank you! Going to get a car this month and I need to get a good price to have money leftover to install a left foot accelerator pedal. Im unable to use my right foot and hand control are for the birds!
You're a bad ass. Good luck on your search. Let me know when you find a specific car you want to buy and I can tell you what I think is a fair price to pay.
Thanks for your videos they've been informative. What do you think of avoiding this whole song and dance and using CarMax or carvana etc over a traditional dealership? I wonder if their inventory will increase substantially as people try to unload their cars/debt during this crisis
I cover an example of a car, suv, and truck on CarMax, Carvana, and Vroom in this online car buying video on my channel: ua-cam.com/video/HnR8XOMSvs0/v-deo.html
In the example the online platforms were ~$1,000-$4,500 more expensive than the lower dealer listings.
You pay a premium for the convenience of a service that allows you to buy from home and delivers to your door. In another video a man commented that he knowingly paid the premium ($1,000 I believe in his case) for Carvana to get exactly the car he wanted. But he also added that he wouldn't do it again (it was just right for that specific situation)
I think you should atleast know what dealers in your area are charging for the same car and then reflect on how much the added convenience is worth to you.
Thank you
Thanks
Holly Moses.. I changed the 1.9k yo 2k!!
Also.. helpful video. I wanna use this in the future
awesome. glad you liked this.
Having said that, I'd still rather pay cash. I don't care if I don't save TODAY. I'll save over time while the financed car owner will pay much more than me over time.
Bottom line, I like being debt free. Additionally, I'm not naive enough to believe I'm going to "win" and "beat" the dealership at THEIR GAME.
I purchase 1 car every 3-5 years. An average sales person might sell 1 car a week or 52 a year. I'm not foolish enough to believe I can out smart or out negotiate them. Everyone thinks they are smarter than the dealership. EVERYONE thinks they are smarter.
I don't care if the dealer gets a kickback. Doesn't bother me at all. We both can get what we want. I'm not bothered by that.
It depends on the situation. Paying cash is sometimes better than financing it. Depends on model and incentives that are available at the time, paying cash will save you more money vs. taking a loan. Sometimes there are usually hidden cash incentives up to $5,000. You have to do your own research. Find the dealer's cost, available incentives(including hidden cash incentives), that way you know how much mark-up cost you are willing to pay. I would recommend 2-3% mark-up only. Most dealership will sell because they know you have the numbers. If they won't sell you with a 2-3% mark-up, then take your business elsewhere. When you have the numbers, you have the power in your hands.
Al you might enjoy seeing how just just negotiated my fiancé’s new car.
ua-cam.com/video/WWSxOyN_BVQ/v-deo.html
What do you use to determine the cost to a dealer?
How do you make the lowest initial offer in a used car negotiation? ua-cam.com/video/ozkOrmz_8lw/v-deo.html
its the same as mortgage loan officers getting back points from lenders for higher rates.
its why home buyers have to pay in order "buy points" to get a lower mortgage rate.
I'm the one with the money so I'll pay what I want to pay. It's a waste of money to begin wit h, on a depreciating asset, however sometimes you just can't help yourself. Of course dealers hate cash buyers, because dealers make money off getting you into debt for 36-72 months. You work hard & save your money. If you want to waste it on a car, then that's up too you. Don't put up with dealership BS.
Plus they often lose out on the overpriced add-on products and services, because at least some cash buyers are also wise to the service plan/paint protection/VIN etching and other pure profit scams that the Finance Office will HAPPILY let you finance!
You guys are hilarious. If I'm buying a car at your stealership and you decide to charge more because I'm paying cash, I'm no longer buying a car at your stealership.
Martin Smith I agree with you. Unfortunately this is a common strategy dealers use. And it’s really just common sense. How much are you willing to pay to make a dollar? You can charge less for a car to people who are willing to pay more in interest.
Thanks for the insight, I've got a particular question for you though. When is the "last moment" to reveal a cash purchase?
You’re welcome. Say you’re a cash buyer after you’ve agreed to the purchase price of the car.
as a cash buyer;
what should be the response when the dealer asks how much do you plan to put down?
and/or how much payment do you feel you can afford?
Question: "How much do you plan to put down?"
Answer: "I can comfortably pay whatever minimum down payment is required"
Question: "how much payment do you feel you can afford?" (or "what is your budget for monthly payment?")
Answer: As a general rule of thumb with today's interest rates if you throw out a budget of ~$100/month for every $5,000 in sticker price of the vehicle you'll be able to rattle off a reasonable budget to satisfy their question. For example if you said $500/month they would know a $25,000 car is within your budget. You're answering this for them because this is a part of their sales process and they need to check their box. If you hem and haw around this question you're only creating unnecessary conflict. Don't die on this hill and expose yourself as a cash buyer.
@@notwaitingtolive thank you
Don't tell them you're a payment or cash buyer. Tell them you'll discuss financing AFTER an agreement is reached on the price of the vehicle. Otherwise you'll fall down the rabbit hole of them changing the car price or loan cost/terms to drive up the profit PLUS what they take you for on the sale.
You'll get more for the trade-in BEFORE you tell them you're a cash buyer.
I waited the whole video for you to mention this.
I have seen a couple of different videos that advise getting the best deal, negotiate any F&I, accessories, etc, when in the finance office, get financing with half down or whatever, and then payoff the loan within the month. Is there an issue with betting the best deal with sales person while not mentioning you are a cash buyer and not committing to a finance deal, and then once an "out the door price" is determined let them know you have decided to to pay cash rather than finance the car? Could they decide they do not want to sell you the car? Could they say the contract was based on financing and void it?
Always be pre-approved before you go to the dealer. Never let them know how (cash or finance) you intend to pay for the car. Negotiate your best price before you let them know how you plan to pay for the car. But if you do let them do a soft pull make sure you ask specifically for the buy rate of the loan. A bank may offer 4% and F&I may tell you it was 5% and pocket the $500 spiff. The rate from the lender may not necessarily be the rate that the dealer may offer you. And if a dealer's in-house finance offer is less that your pre-approved rate ask them if there is a pre-payment penalty. If not, take the dealer's lower offer, make the first payment, then payoff the balance in cash.
my new favorite person. Where are you from anyways?
Cleveland, Ohio
@@notwaitingtolive Dope! I'm from Orange County, California.
So I'm looking at a used 04 forester for 6k from the dealer. This would be used mainly as a work car bc I have another one already. I want to pay cash. How should I go about this when at the dealership?
The dealer doesn’t care if you’re paying cash or a check from the credit union
They’re gonna get paid either way .. when you say I’m paying cash The only thing that tells the dealer is you’ll be able to close the deal .
It's harder to compete as a cash buyer when a buyer who finances is willing to pay thousands of dollars more for the same car.
Here's a summary of a couple reasons a dealer does in fact care if you're paying cash:
1. In 2020 and 2021 many manufacturers offered rebates for financing customers only. If your deal hinges on getting these rebates as a cash buyer, consider that a deal breaker because the dealer gets paid for those rebates by the manufacturer.
2. If a dealer thinks they may make $500 to $1,000 or more from you financing the purchase that becomes an opportunity from them to reduce the price knowing they will get profit elsewhere. The dealer is looking at the total profit potential on the front and back end.
How I’m gonna know see if that dealer have more than a month for the cars and also I was watching one of video u said you check to CarGurus how ? Answer
Thanks
No, thank you Manny for your prompt response. The content is the same path I follow but my problem is the dealers have some idea that buyers will pay . but as a result of their prices also in one case have 3 raptors 21 's sitting on lot. I always wait until late dec. To buy a new car but calling and offering msrp for a year old truck with no takers sucks. Wtf? Popular truck but see postings on line that my truck is out there for msrp's. So where do I go to search? You mention black book. I have no clue.
Dealers are still able to get away with full sticker. A truck like the raptor rarely gets discounted significantly, the demand is always high for that truck. I explain 2 free and 2 paid methods to figure out what dealers are selling these for right now in this video:
ua-cam.com/video/vlqiNeK8-GI/v-deo.html
Very good, thank you. I'll pay msrp but 10 grand over? Nah , not when i know msrp is somewhere out there
I understand there is no free lunch. Ill pay black book and start there.
@@MT-xl8jy yeah it’ll be money we’ll spent, even if you have to subscribe for a few months you’ll at least know what people are actually paying
Last but not least for tonight. Is there any site that can help my search and the best approach with a dealer, email, phone or whatever
Maybe also a short sample of said communication. I want it all. U tube likes are great but how about some cash and you get done. I have always believed if I don't have the experience then higher an expert. What say ye? Seriously
@@MT-xl8jy About 18 months ago I offered car consultation as a service but it was too irregular for me to keep doing. It wasn’t something I advertised outside of UA-cam.
If you want an outside opinion on your search I would charge $100 minimum @ $100/hr rate. In almost all instances I can tell you about all you’d want to know in that first hour.
You can email me at manny@notwaitingtolive.com if interested.
Otherwise:
I show you what to say when negotiating by email with dealers in this video: ua-cam.com/video/pJxjHpcPQdM/v-deo.html
I lay out some reasons why it’s better to negotiate tough vs nice in this video:
ua-cam.com/video/PUzphzoXH8M/v-deo.html
5 things to never tell a dealer in this video:
ua-cam.com/video/GbG91ksQcvY/v-deo.html
Please do a video on buying a car with cash on a factory order transaction
Gold Coast I will look into this and make some phone calls. If I can assemble some useful insight I will put together a video on this topic and comment you back with a link. Likely the video topic will cover buying factory orders in general. Which manufacturer are you considering?
@@notwaitingtolive RAM 1500 Limited
Due to the sheer number and variety of options on these trucks it's difficult for me to provide reliable data for this truck.
I do know that Ram dealers are offering massive incentives right now in the 15-20% off MSRP range. These would be the types of discounts that normally wouldn't be achievable until fall when the model year changes over. In the case of this truck I'd offer 25% off MSRP and then come back on the last day of the month to see if or how far they're willing to move down.
I would definitely reach out via email to other Ram dealers right now if you're shopping new to see which ones are willing to maximize the incentives. I have a separate video on my channel that covers how to negotiate by email: ua-cam.com/video/pJxjHpcPQdM/v-deo.html
How about Toyota Hilux active 2door. Needs a factory order as everyone wants 4door. It’s going to be maybe£26500 msrp. Where is a good place to start, cash buyer. Thanks so much for your videos.
What do you think of getting the OTD number in writing, then come the next day with a cashiers check (paid in full)? Will they haggle me, or do I let them know before
If the sales person never mentions payment method when getting email quotes, therefore me never even saying I'm open to it, do they just assume I am? Before putting down a deposit over the phone, will they be asking if I'm paying cash vs financing? Just wondering before I could end up driving 3-4 hours only to have to walk out when they try and raise the price for paying cash.
Hey how did it go?
Thanks for the info. Seeing the schooling system has failed to teach me anything useful.
You're welcome. I have an engineering degree and still feel the same!
What about just going through with the financing and then paying off the entire loan immediately rather than having to walk away?
Joshua Smith That’s possible. There usually isn’t a penalty for paying off car financing early, but you would want to check to make sure because a hidden fee could cancel out all of your savings.
not waiting to live what would the hidden fee look like - what would they call it?
This was possible in the UK with VW. A friend of mine got a £1500 discount for taking finance and then paid off the lot the next day.
This is what I did with BMW. The extra discount was if I financed through BMW. I believe I made one payment and then paid it off in full with no penalty. I negotiated the deal all online.
What is a form 833. Something about actual cash over 8K . Pay with a check is different?
How do you get it in writing? Do they offer it?
I have the same question.
If you have any secrets and how to get honest auto repairs, without getting ripped off, your private purchasers would like to know about it. In case you hadn't noticed car repair prices are insane today. The manufacturer is complicated the vehicle so it's harder to repair, at least for you, and mechanics want to make a lot of money with very little effort.
The lack of mechanic and Shop licensing makes things worse.
I wish I had the secret to this problem. It’s only getting worse. Right to repair laws are starting to gain footing which in theory could increase the number of mechanics qualified to make repairs. That might provide a little relief years from now, but I wouldn’t hold my breathe.
www.google.com/amp/s/www.autoweek.com/news/industry-news/amp34394907/heres-why-you-should-care-about-right-to-repair/
With shops charging $70-$120+/ hour including overhead for their labor even minor repairs cost hundreds of dollars.
For now your best approach is getting a good old fashioned second and third opinion.
I am open to financing to get the deal, then paying off in the next week or two. And I know I should find out about potential early payment penalties, but I also don't want to waste my time going through the process only to find out there ARE early pay penalties. If I ask right away about that variable, they will certainly know my plan, and it will reduce my leverage. Any suggestions to avoid this?
i'd come up with something like " I occasionally get work bonuses from time to time. are there any pre payment penalty ?"
Can a car you’re interested in be put on hold or is that not a thing?
Another UA-camr says that that cash buyer problem is a new car buyer problem and really isn't that big of an issue when buying a used car. What do you think? Also, how do you get a dealer to give you an offer in writing on a used car?
I disagree that the cash buyer problem is mostly a new car buyer problem. The fundamental reason a cash buyer is at a disadvantage at a dealership right now is we live in an economic climate where someone else is willing and able to pay more (interest) for the same car as a cash buyer. For this reason, a dealer is able to make make on a financed buyer than a cash buyer and the equation becomes nothing more than “how much are you willing to pay for a dollar?” If I make an extra $500 by selling to a financed buyer instead of a cash buyer on a used car, why wouldn’t I be willing to sell for $250 less to a financed buyer?
Dealers like to keep their offers in house. They don’t like people waking out of the dealership with an offer written down. But it can happen.
The most practical way is to negotiate price, have them write up the deal, then grab the paper on your way out.
Another way is to make them an offer first by email, and get them to counter with price. I have a separate video on my channel about how to negotiate by email.
I have a weird circumstance if anyone has any pointers it would b great. I have alot of money saved up and from a car wreck. The catcher is i filed bankruptcy 2 years ago which complete washed all my bills. I have only worked for two months, i lost my job due to covid. How do you negotiate car price given cant get to the negotiating table for financing because i cant get financed?
Your ability to negotiate is proportional to your ability to walk away. I don't know if you've seen my other car channel but you might find these 8 steps useful: ua-cam.com/video/kcpflwQjHDI/v-deo.html
It's all about building a narrative that you're ready to buy and you have plenty of options, they're just one dealer you're considering. You don't need to disclosure your financial history at all when negotiating price.
I would have at least 2 comparable cars at other dealers that you're considering whenever you're talking to a dealer. And let them know that. (having other brands you're considering gives you even more leverage).
P.S. I cover 5 things to never tell the dealer in this video:
ua-cam.com/video/GbG91ksQcvY/v-deo.html
What would stop a cash buyer from financing with the dealer and then paying off the balance the very next month?
Usually nothing. But sometimes an early payment penalty is assessed to discourage that behavior, but even then that’s limited. The longest required wait until payoff I’ve heard of recently is 3 months, and I believe that was largely due to the short term incentives some manufacturers were offering.
Do you let the finance manager write out the payments for the car before you tell them that you were going to pay cash or do you agree on a price with the sales person before he goes to the finance manager tell him that you’re paying cash.
How does this apply when buying a popular car like a toyota tacoma?
The same approach applies. Toyota has had special financing rates and incentives that are connected to financing this year.
The approach I recommend is floating offers via email to other dealers in the region. I explain exactly what to say in this video: ua-cam.com/video/pJxjHpcPQdM/v-deo.html
What if a certain dealership is the only one for hundreds of miles that has the exact car that I want? I don't want to walk away or risk losing it by pissing the dealer off when saying I'm paying cash at the end. Also, how do you pay in cash anyway? I've read that most dealerships won't accept personal checks. They say bring a cashier's check but how do I know the amount to get?
You're in a tough spot. The two most common methods of "cash" payment is (1) a cashier's check (certified bank check) or (2) cold hard cash (preferably large bills).
The tough part for you is knowing how much to write the check for.
You can either:
1. Negotiate by email. I explain exactly what to say in this video: ua-cam.com/video/pJxjHpcPQdM/v-deo.html
2. Negotiate in person. Once you agree to the final total to the penny you can go to the nearest bank and get a cashier's check for the total amount. This takes some planning to make sure the bank is open when you need them.
3. Negotiate in person. Bring a cashier's check for less than you'll actually need and pay the remaining balance by credit card. Most dealers are willing to accept credit cards to a certain point ~$500 - $1,000. But once you start charging more than that they're likely to pass on an additional merchant fee to you (which may be ~3% of the amount paid in credit).
I actually once sold a car to a pair of guys who came in with their total budget printed on a cashiers check BEFORE starting negotiations. I discuss that briefly in this video: ua-cam.com/video/LXz3mS2PN-g/v-deo.html
Is it possible to finance a car then pay it off in full when the next payment comes?
Yes. This usually isn’t a problem. But do check with them about early payment penalties and restrictions. The longest restriction I heard of this past year I believe was ~3 months. But most have no early payment restrictions at all.
The elephant in the room is NOT the price of the vehicle. It's the Out The Door Price. That's the number you should be asking for from the minute you walk into the showroom.
What if I have declared bankruptcy,it was discharged a year ago.Then,two months ago,my dad passed away and left me an inheritance.I want to pay cash for a Toyota Corolla.How should I handle the fact that I have a bankruptcy and things have turned around and I want to pay cash for a vehicle? Credit score is low,haven't rebuilt my credit yet.
Trying to purchase a Toyota Corolla Im 2018 around 12000 miles. They list at $14485, is there room to negotiate? It’s been on the market for over 60 days ..
Are you crazy ! What the hell is wrong with you? You're going to buy a 15000 car with 120000 miles 😱
If it is 0% apr, do I have to go financing?
Yes. Because you’re still liable for the purchase price of the car. If you don’t make payments they need your information to take legal action against you.
I'm half way through my Chapter 7, will not be able to get a loan.........
The good news is the cars made in the last decade are very reliable.
Here’s a video where I go over 5 of the best used cars on the market right now that are affordable:
ua-cam.com/video/uaRJZXwhWmo/v-deo.html