I absolutely hate car dealerships, I live in Lakeland Florida and there’s a independent dealer that’s been in business over 50 yrs. You will get a car or especially a truck $5000 off what a dealership charges. Paperwork is 20 min and out the door. He does not sell new but can get new if you like. I’m picking up a 2017 F-250 Powerstroke xlt premium with 23000 miles for $41500. He doesn’t talk in circles and confusion. Straight to the point. Your channel is great really enjoy it. Love the father son interaction.
"Dealerships thinking their inventory is like fine wine; aging improves it" That nugget of wisdom made me subscribe😊 You're too funny Ray! Love your videos!
What’s your thoughts about buying a used RAV4 rental car if it’s from a Toyota dealership? Should I take it to a different Toyota dealership to get a PPI? 19:59
On my last car (used CPO) I really wanted to buy a certain car from a one-price dealership. The only problem was that their market price was a fair amount higher than every other car on the local market, including the one I ended up buying which was a year newer, had 10K less miles and more options. I guess they thought their wine was better!
Usually it takes about $1500 to certify a vehicle usually it will come with a 2/24000 mile bumper to bumper warranty or something like that and those vehicles have been through some sort of an 112 point inspection on the car maybe that was the reason it was more expensive.
My strategy for used car is always 1. find a car I am interested. 2. tell the salesman exactly how much I wish to pay for the car , a number I believe is fair. 3. If they say no, simply walk away, and look for the next car. I may not get a deal the first time but eventually I always get a car I like with a fair price I set. No need to waste too much time negotiating, if the dealer doesn’t like your offer, it is possible someone in the market highly likely going to pay more for the car. Just walk away, let that someone get it instead.
@@markrocka8718 Yes! Deny GAP insurance it just puts more money in their pocket during financing the sale price, which is damaging your wallet. Depending on the state you can demand for doc fees to be waived.
Always walk away. I enjoy them begging me not to leave. I had one tell me and the wife they had a girl they would send to the school to pick up our kids, LOL
We have all traded in cars and the dealer never wants to give you what your car is worth on a trade in. They easily mark a car they paid 25 k for on a trade to 31k
This gentleman has an incredible resemblance to Michael Mckean, in projection and appearance. * This video is gold, very well explained. It is so true, most dealers are data driven, that is the price, not a penny less. Let me add to what he said, WHAT MAKES YOU SO SPECIAL? He is wrong for him to ask that, the dealership made consumers FEEL special.
It doesn't matter what is a fair offer. Things are only worth what someone is willing to pay. The value of a car goes down the older it gets. So if a dealer has had the car for a few months he is more likely to accept a lower offer. I saw a car i was interested in advertised for £9,000. I offered £8,200 and my offer was declined. Four months later the same car is on offer for £8,500. I will aim to get it for £8,000. If i am unsuccessful there are thousands of other cars available. He needs to sell. I don't need to buy.
Thanks for the great content! I’m sharing your videos and business with friends and family. This might be out of your scope, but I would be interested in videos on vehicle recommendations (i.e. reliable cars for first time buyer or growing family). I also would be interested in content on financial advice when making a vehicle purchase. I understand that you aren’t mechanics or financial advisors, but I’m certain you’ve gained “nuggets” of wisdom by working in the industry for some time. Again, thank you!
Have been listening to your videos for the last 3 days and wow did my eyes get opened wide.I have been out on a fishing boat in the bering sea for 3 months.my wife is having engine issues with our 2013 ford escape with 112000 miles.the dealer says we need a new motor but cant tell us what exactly is wrong.I had her take it to a second shop and they said they couldn't find a problem.i told my wife tell them to keep it and drive it,2 weeks the no power issue came up.my question is what can I expect to get for it as is.been watching your videos so I'm better informed for my next putchase
Kelly Blue Book, JD Power etc. etc. inflate used car prices, the European market is way more honest and the used vehicles sell over there at realistic prices unlike here in the US.
My question is, how do you determine the fair market value without using Kelly Blue Book? I've heard that KBB is heavily influenced by the auto industry to inflate used car prices, which is why I'm asking. Also, what tips do you have for negotiating with private owners?
I have always used the Nada book value bc that is what my insurance (geico) uses.. you can call your insurance and ask them good chance they are using Nada
As per the " so damned special".... Doubt. BS meter. Experience. Different values. American bullheadedness. It's my cash, it's your car. At the point I buy, I am neutral, I can own a car or hold my cash and I am neutral. Don't care. Either works. As each car and situation is unique, so is the buyer. You explore together, you decide together. Like dating...but cheaper.
Car Nut Guy, I think, said that Car Max will not negotiate the price at all. I am planning to look at a Toyota Rav 4 that they are bringing down from Knoxville. I am trying to figure out if I should wait till the end of Dec. but I think it is a good deal.
How is it that a new car dealer claims to be a market based dealer when all their prices are 2K higher per vehicle than any other dealer in the area? Seems like an easy way for them to try to claim that AND make extra $.
I see many retail outlets that sell used cars charge a "processing fee" (i.e. $299 "processing fee") per each vehicle. Can this be negotiated down or even eliminated from the purchase of a vehicle?
I want to know at the one price dealership like carmax. How often they update the price of there cars. How do i know the car value didnt just go down and they just have not update it? I guess a better question how often they update there pricing ?
If buy an off lease used car, should I tell them I have cash or just pay the car in full on first payment date because they expect to make money on 72 month financing ?
Can a dealership keep a deposit if they were transferring a car from another dealership and you decided to not purchase the vehicle that was being transferred?
My uncle took his clean title 2002 corvette Z06 with 44xxx miles as a trade in and stealership offered 7,000 👊. And I'll give you 900 for that 6000 car. But they're "insulted" when the customer tries to get a few bucks off. This is why people hate STEALERSHIPS!!!
You can take a loss with wholesale, the loss is true cost and not packed. Most dealers are trying to break even with wholesale vs trying to make money retail. Depending on the pack, 1000 dollar retail losing deal is breaking even at auction if sold at the same price.
You guys are truly lousy communicators. Nobody would rather lose money. They don’t know how much they will get at auction before they auction it. If they did, they would do the deal that makes the dealership the most money. It’s business, not personal.
That is hard to believe ..... so you are saying to lose money and not deal....better to only make 500.00 or 800.00 dollars then to lose money and have a lot less cash to buy another car.... i dont believe it...if i had a business and the sales men would not negotiate, he or she would be gone period... i can not believe dealers have that stupid greed mentality .... spite does not pay the bills....
I get the $1200 to $2000 profit the poor dealer is making when they sell it at market price. What about the profit they make in the trade in for that car????
The trade in is like playing craps, they are gambling. The dealer is gambling that the reconditioning costs won't be more than normal, and that someone will want to buy it within their 60 to 90 used car sales policy, there are no guarantees of that expected future profit actually being realized. We all have hopes and dreams, some come true and some don't and that is exactly what the trade in represents, a hope and a dream.
I would hazard to guess that the offs are better than a crap shoot. As far as conditioning costs, I recently traded in a car in the morning and it was on the lot that same afternoon
Your Auto Advocate I had an appraisal done at CarMax and waited for the dealer to make an offer on my trade in. They were 3k off and they wouldn’t match CarMax. They asked me to go sell the car at CarMax and return with a check.
Great videos. I really enjoy watching them. Just purchased an SUV with my daughter using you insight and methods. Saved 4,000.00 on a 2018 Toyota RAV 4. Went and looked at them at 4 dealerships. 2 didn’t have any in her color she wanted. The third had one that was dirty and had small interior parts broken. The fourth is a data driven store and I managed to get another 900.00 off the price. We had cash down and no trade in and did not purchase any extras. The came with the balance of the bumper to bumper warranty plus the 5 year hundred thousand mile power train warranty. You guys are great . Keep the videos coming.
I can ,, they're monetized YT videos keeps em afloat ,, they really haven't brought anything to the table for a educated car enthusiast with a modest amount of financial wisdom
Yeah, he kind of went through that discussion pretty quickly like we should all just accept it. If they kept that up for the year, that would be a huge profit (over 800% yearly if my figures are correct).
So the used wholesale market at auctions is down for the past quarter and it continues to decline, That means that there are currently alot of cars sitting for months at the dealership that with no buyers. Furthermore, Hertz is soon to file for bankruptcy and they recently canceled thousands of car orders for this year from differentmanufacturers; all their used cars will soon flood the market which will cause an enormous oversupply... which means extremely lower prices for you. If your looking to buy a used car, wait a couple of months. Your $15,000 car will go for $11,000 your 12,000 for $9000.. and so on. There are hundreds of dealerships that in the brink of collapse and they will be able to give a sweet deal to survive, dont settle for the ones that just want to give $700-$1000 discount bs. and dont even think to trade in your used car during this time, you will l get $0 to 20% at most for your used car, they are already saturated with inventory.
Thank you for the information I'm currently looking for a vehicle and it stressful I hope I can find a dealer that will be honest and B.S around I just wish I could have someone go with me that would know when the dealer is bullshiting
Michael Viglianco because the money they pumping into people pocket, people have lots of money right now and used car price are jack up af. Fucking inflation.
@@tommydo961 Yup, the original comment isn't true at all. Car sales are booming and cars are flying off the lot with dealers making good profits. Here in Canada people got over $10,000 in government handouts because of COVID and they actually noticed the rate of car sales and finances for cars increased lol. Car sales will never crash, it's a daily commodity people want and need new cars to keep going in life. Dealership crashes were predicted but never happened.
I've been trying to buy a car that has a $12,999 sticker price for $12k (taxes &fees included). The dealer won't go lower than $12,500 plus taxes & fees. I'm really hoping they will give me a deal by June...🤞🏽
Sorry. I learned nothing here. Take three actual used car purchases and show me the documents and numbers and what the buyer did right and what went wrong. For example, show me a $800 processing fee and how the buyer got out of it.
way to groom the minds of those who lack common sense; this makes no sense tbh they mark it up by thousands yet they only have $100-$200 in wiggle room.
Why will dealers that have reached their 90 days selling period rather sell wholesale at auction, rather than lower their price to a retail client who's is offering above wholesale, but below full retail on their vehicle? It seems as if they really despise the retail client, which makes no sense.
Brian, perhaps the customer's offer is less than the anticipated price that the dealer could get at the auction, which from experience is often times the case.
Your Auto Advocate I’ll have to disagree on this one. Speaking from experience I’ve offered higher than wholesale but lower than retail on numerous occasions I’ve gone back to check the dealer on what happened to the vehicle and 9 times out of 10 they have for whatever reason sold the vehicle at auctions or wholesale for less than what I’ve offered dealers simply don’t like to give deals
@@casmithosoicy32 I think there is pride and greed combined with a fear of a precedent. News of good deals travels fast. It is not as though you can have customers sign NDAs (non-disclosure agreements). If you have to do it for one, you would have to do it for all. Therefore, they will take the loss on the one in the hopes that they can find another who will pay closer to the sticker price. In this economy, these salespeople and sales managers are hungry and literally salivating at the possibility of making a higher deal. As they have the family pictures on their desk, they have constant reminders that the end justifies the means. One of the sales managers even brought church into the equation to justify the unethical sales practices of one of his salespeople. It is a new world where we have to be extra careful of not overpaying.
Market based is exactly what I must be dealing with now. They will not budge on the price. Well, not more than $500. And it's been sitting there for 2.5 months.
That "what makes you so special" tactic might work on some people. I would just walk away because I would feel insulted somehow i.e. the customer is always right or at least shouldn't be spoken to in that tone. Informative video. Thx
The customer is definitely NOT always right. BUT, the customer is always just that, "THE CUSTOMER". As such, the customer is important and necessary and deserves respect. It is a 2-way street and I have missed out on deals simply for being a corn-hole.
@@mulljacob Worse, Ag Inputs, Retail. I sell stuff people need rather than what they want. You always get beat up more by someone who needs what you are servicing.
@@PaulSchneider-bp2ic That's a question I don't know the answer to. Its kind of like not knowing your own phone number. Ag (agriculture) Inputs is what ever it takes to grow a crop. Seed, nutrients and crop protection products mostly...coupled with service.
I love your channel! I have binged watch just about all your videos in 3 days!!! On a different topic. What would be a good tactic to negotiate a lease on a new suv that is selling on average at MSRP or higher? If that is not too specific would you do a video on that? Thanks for giving us more confidence when stepping into a dealership.
For full disclosure, I haven't dealt with a used car salesperson since maybe 1995 so what appeared shocking to me could be what most would consider 'normal'. First impression: place - an HGreg facility, they operate in Florida - look filthy inside and out in almost every way imaginable. Customer parking was crowded and I feared for my car's integrity because parking spaces were so narrow. Inside, it looked like a crowded sports bar, only the screen had HGreg propaganda running. I had an appointment for test-driving 2 cars but, since I had test driven the exact same brand and model at another dealership I told them that all I wanted was to see/inspect them and then, possibly discuss terms of purchase. They told us to find the cars in their parking lot - there were hundreds of cars there - vaguely suggesting one area were we were likely to find the vehicles. After 10-15 minutes of walking in a 90F heat we found one and it looked Okay but we never find the second one. Some employee told us to look elsewhere in the lot but 10 minutes later, no success. We liked the one we found enough so we decided to talk with a salesperson. Oh, the sticker price on the car was more than $4000 higher than we saw online but we had a printout of the online price so we didn't worry about that. The salesperson we were given forced us to listen through some BS talk about how special HGreg was because unlike other used car dealers, they were not negotiating prices so we were so lucky to be there. When asked about the online price vs on-car-window price discrepancy he told us that they will 'honor' the Internet price so I suspect that if you just walked in and liked the car, you'd be paying the extra $4000 if you were to buy it because price was not negotiable. To cut the BS short because the bad vibes were almost unbearable, I asked the used car salesman to print us a contract with real dollar figures on it so we can decide whether we were going to buy the car or not. So the contract included: - a $400 BS electronic filing fee - a $980 BS make-dealer-happy ripoff fee (sorry don't remember how they called that) - a $500 made up title, tags and registration fee and he couldn't explain why it was $500 and not $400 or $600. By comparison, Carmax fees for a similar car were $27 for electronic filing, $400 make-Carmax-happy and $402 for title and registration. Carvana's, from where we eventually bought our car were $0 for filing, $0 for making Carvana happy fee and about $300 broken down into precise amounts for Title, Registration and License Plate. I told the used car salesman that I would agree to pay those 'fees' if he lowered the car's price by a similar amount. When he asked why he should do that and I told him that the 'fees' were absurd he told me that that was my opinion and they were not going to touch them. So we left and, as I stated above, we bought a similar car listed at a similar price from Carvana. And 'saved' over $1500-2000 in HGreg's bogus ripoff fees. I hope that not all used car dealers are like HGreg but then, I will probably never know because it's unlikely that I will ever again attempt to deal with such people and businesses. And I believe that we only scratched the surface of potential customer ripoffs here. We were going to pay cash so had no need for financing, had no trade-in and didn't care about a service plan because the vehicle we wanted to buy had some 2 years worth of manufacturer warranty left. But I can only try to imagine the many ways these people would financially abuse a customer who did need financing, did plan to trade in their old car and did want to purchase some post-sale support. Mind is boggled.
I have a question the dealer had a car for the amount of like $ 13567.99 they had the picture online for that price but when we went to look at it they told us about that price and there was a new one car dealer sales person and he told us about the price so when we went to buy the car the manager said it cost $19,999.00. why does this happen. He told us that the new sales person made a mistake but then we saw it online for that price of 13 k. Do this happen often?
Used cars are always marked up huge so I don’t agree with you at all. My friend traded and negotiated on a new car. They marked his trade in up 7k. No idea if they sold it at the mark up but still huge mark up. I’ve also seen this three other times.
Why are we so "Damn Special" because there is NO TRANSPARENCY in what you paid for the car.. Terrible Video! If a car salesmen said that to me I will ask what makes you think you can take more of my hard money that are earned.. 1500K is what a car dealer should get period for any car.. be it 20K or 40K, you did nothing to the car except show it...
I have a question: If you do have a customer that comes in and wants to pay the sticker price for a car, but it has special incentives like rebates or other price reductions, do you ever feel obligated to mention that to the customer or do you ‘go with the flow’ ?
BUT.....I don't imagine dealerships give the market based price to the individual who traded the used car for a new one. So even if they are asking market price they are likely making a substantial profit.
I almost bought a2011 expedition lxt for 16,981 but they are forcing me to buy the LoJack for $895 so plus tax and license and other fees $23,000 total but my wife noticed some rusts on the tailgate and hood painted but swollen and tires are bald still original so we offered $18,000 they countered $20,000 ,they let us walked away the car has been in the market for 24 days,Why do you think they let us go?Also I live 90 miles away and they let us go,seems their lot is full and not moving or selling.
You bring up a point that inspires a question. When a dealership wholesales a car to another dealership, does that show as another owner on the Carfax report?
A customer wants to buy a car under retail the dealer says no. The dealer then turns around and wholesales to another dealership or auction for less than what the customer offered. Why is that?
Why are dealers such sticklers when it comes to price? Me the consumer is buying something typically price above the actual value of the car. Coupled with rising insurance cost, maintenance cost, gas, and interest. It makes sense for me to want to purchase for as little money as possible for the simple fact that it will never be worth more or even be equal to what I’ve paid. If I offer a dealer 10k on a 12k car and the dealer says no and sells that car to another dealer or auction for less, what is the sense in that? Where is the logic??
a single price dealer is going to base on an average of the people that are overpaying and the ones getting a great deal. if you're looking to buy a used car you're looking for a great deal and you're not going to get that at carmax.
I hate one price dealers! Even if you show them stuff that needs to be fixed. They won’t budge. We should all stop buying form them. They put the price a little lower and wait for a idiot who doesn’t know any better. It’s for the people who have know idea how cheap they get the cars for.
I have successfully negotiated a price discount at CarMax -- but it was for a car that had been on their lot more then 60 (or was it 90 days). I vaguely remember a conversation with one of their mgrs. -- they incrementally mark down prices by a certain % after it has gone unsold for a certain number of days.
One word, reconditioning. At my dealership the average shop bill is 2200 dollars, then to certify a car is another 4 digit bill, depending on model, to the manufacturer for the privilege to do so. Detail 240, paintless dent repair, interior guy another 400. You would be surprised, to you it seems the dealer is making 4k off your trade, but they're not. Most people are trading their car in for a reason and we have to fix it and get it right. Some shop bills get up to 5 and 6 grand, those cars go to auction.
Is there any benefit to purchasing cars from rental companies? Ie avis, enterprise etc? Also how does the current information you Just shared apply to those companies?
Wierd. A dealer would be willing to take whatever they get at auction, which is bound to be a fraction of what they were asking retail, rather than sell it to a customer at that or near that auction price?? How is that advantageous to the dealer?? Rather than give a customer a great deal , they are willing to eat a huge loss in most cases??? I must be missing something...doesn't make sense unless it's just a big middle finger to customers...
The thing that might make that person “so damn special” is the fact that that individual is there at the moment ready and willing to pay for the car.. as opposed to the next that may come along say a week or a month later.. 🤔 Great video and info none-the-less! Thanks guys!!
Love your info.but you frequently talk about higher end cars. Would you help out an old lady who's in the market for a new car at the lower end of the market say a Toyota Corolla. I imagine there's probably a wider margin for negotiation on higher cost cars so what about the parameters on the lower end ? Thank you.
thanks you guys, useful and very quick output too :) you guys rock. so identifying what kind of dealer you are working with seems to be the main idea here. If you don't mind diving into that topic and how to find dealer types based on their revenue model , it'll be great. Also could you talk about trade in values. it seems like in most cases when you bring your trade in to a dealer you lose more money vs if you sold the car privately and walked in with cash.
A whole lot of something, beats a whole lot of nothing. Dealerships would rather wholesale or auction a vehicle than build huge customer credibility and loyalty by selling a vehicle at market value or loss.
I understand dealers have to make money and I have no problem paying a couple of thousand above the wholesale value of the car but a lot of dealers are asking 5 to 7 grand above wholesale. How accurate are the posted wholesale values on sights like Kelly Blue Book?
Hey are you planning on doing a video on how to navigate used or new car purchases in this volatile market. Are there deals to be had? Should we buy now or wait a few months? Will lease returns, repos, and rental car bankruptcy drive prices lower? Thanks in advance!
I don't think so much "what makes you special" to get a better price. Consumers (myself included) have been trained to believe that purchasing a car requires negotiation; that the list price is never the real price. And generally people just don't want to feel get ripped off (even more so than actually getting ripped off), whether they're right or not. While it might help in the purchase process, it's generally not front of mind for most consumers to understand the nuances of a particular industry's business model. And it seems like this particular industry is pretty complicated and constantly changing.
This is fantastic content, I’m always going to want money off, it’s showing willingness to work with me, if you don’t move at all then I’m not buying your car it’s that simple, I don’t care what their model is. Your videos are awesome, so much good information!
You two guys are fantastic and I appreciate your efforts. Your channel is great and your DAD is a genius in his own way. I can listen to wisdom all day long and he has the "swagger" to go with the humor, knowledge, and experience. He's a person to be respected and you guys deserve all that you receive. Thank you and thank you again. I'll keep watching more videos, very entertaining and educational in so many different ways.
I appreciate your no-bull approach to the car buying business. I have always felt that I was getting screwed when I went to any dealership and did not believe a thing they told me. I have walked out of many negotiations. Of course, I check KBB before I go--every time. On my last purchase, I ended up paying the registration for more than one year because in California-at that time--the dealers did not have to register the car they way all of us sheep must. Ray comes across as a guy who is telling it like it is.
I could be wrong here, but from my perspective, if you can get ahold of the original Sticker on the vehicle that helps. Take that amount, and subtract 20% off the top of the vehicle. Then also, subtract $1000.00 for ever 10K miles on the vehicle. This give you an amount that the dealership paid for the vehicle. Is that a valid process in your estimation?
Dealers want to make around 3k on finance, on top of what the bank is making.they want use their own finance bank, they hate when you come pre approved with your own bank,
This is really great information, but my question is, why should I care about making a "fair" offer? If I focus on what's fair, I'm going to get raked over the coals. Dealers have no intention of giving "fair" deals.
Do dealerships apply different styles of markup for auction cars versus trade ins? I imagine dealerships have to ability to get vehicles cheaper at auction on occasion, so would they hide that cheaper purchase price with higher markup?
We do not price negotiate on any other commodity except car. Just curious as to how it all started only for cars way back when. Now if we do not negotiate the price down, we walk away with the feeling that we over paid.
They’re not taking a loss in most cases, bigger dealer groups will just rotate inventory between their different store. They have internal auctions where they don’t really loose money.
What is the best process to come up with an initial offer in a used vehicle negotiation with a dealer? Should it be based off of trade in value, private party or dealer retail? So far my research is showing they are asking about 5k over trade in value.
My objective is not to make a fair offer. My objective is to pay as little as possible. But, I’m always at a disadvantage because the sales manager always has more information than me. In the end, the only way to get the best price is to consume their time. If you can get them to wast 10+ hours over several days, without angering them, that is the most reliable way. But if that saves a thousand dollars, you are earning pretty good wages. It just takes patience.
I don’t believe that used cars will be the price they are and won’t come down. I have been watching a few cars a few weeks. All have went down $1000 or more.
Yes. I know some states limit the 'dealer fees' and have read some states require ANY published price be accepted with only title and tag fees (which SOME states limit).and of course Sales Tax. It's confusing -- and doubly so when I'm looking at 2 cars just across state line.
I recently noticed where a couple dealers were selling a car and when you looked at the history of how they were discounting the vehicle you would see several deductions in price, but then you would also see where they added back into that price, and then start the discounting from this new price again. Sure seems like they're game playing by doing that to me especially when you can clearly see the car has been on the dealers lot for 80 or sometimes more days. I would think they would eventually realize that it's simply better to turn those dollars period.
Good video! So if CarGurus has a car listed as Fair or Good price (not above averaged or High), is that considered a market value dealer price? I would lowball them regardless and see what happens, but I have time on my side.
Would love your take on Covid affecting used prices. Dealerships where I am have started to lower prices a bit 10-15%. I like negotiating, and will feel ripped off if I buy now and a drastic price decline happens in a few months. Thinking of pursuing a private sale where their time waiting vs cash now is more in my favour.
Please do some research on the particular vehicle you want. Assuming that you need to get a big discount to buy something is a wrong mindset, especially with many more things being market based pricing or wait for things to mellow down.
I realize this is a few months old, but I'm wondering with regards to the fixed price dealer. Like what Zach said at the end of the video, I'm of the camp to feel it's also BS, that the markup is still there and it was taken out of what the dealer offered the previous owner as a trade in. Dealer market value vs trade in value is where I feel these dealers are simply doing the same markup as the old school dealers and they're just holding firm to their price. How often (and I think it's very often) does someone go to the dealer knowing market value of their trade is probably x, trade is y, and the dealer comes and offers (y - $2000); you say kbb says my trade should be y, and they say they just can't do that because blah blah blah. Next thing you know you see it on their lot for $6k markup, not 2, and they're a fixed price dealer. At least where I am in the North East it seems all dealers are moving to this market price model, but grossing more than ever by low balling trade ins. I wonder if you have any thoughts or comments regarding this, that the dealerships are still playing the old school game with trade-in policy but adjusting to the market value model with selling, and in doing such they're just profiting more than ever and customers are getting the "take it or leave it" more and more.
Trade value is often under book value for a simple reason. Customers want to test drive the potential purchase, take it to a mechanic etc., BUT they want a trade in value on their trade right now!!!! The dealer will lowball because they don't know what they're getting. They need to safety the car, maybe spend money, maybe do mechanical, and then make a profit on top of what they gave you...if it's over market value, it doesn't sell. To keep their price right, cover any unexpected costs, they lowball your trade. It makes sense but people get angry. If you let the dealer inspect your car thouroughly, you might get more but then they have to pay shop rate to their own shop as the time charged to the trade in inspection could have been used to service another car. Either way, it's money.
I absolutely hate car dealerships, I live in Lakeland Florida and there’s a independent dealer that’s been in business over 50 yrs. You will get a car or especially a truck $5000 off what a dealership charges. Paperwork is 20 min and out the door. He does not sell new but can get new if you like. I’m picking up a 2017 F-250 Powerstroke xlt premium with 23000 miles for $41500. He doesn’t talk in circles and confusion. Straight to the point. Your channel is great really enjoy it. Love the father son interaction.
doug hyland I’m in Florida and looking for a Toyota 4Runner. What’s this guys number or website?
L w sorry just saw this, the dealers name is Lovering Auto Sales. Talk to Brant Lovering, the dealer is in Lakeland
"Dealerships thinking their inventory is like fine wine; aging improves it" That nugget of wisdom made me subscribe😊 You're too funny Ray! Love your videos!
What’s your thoughts about buying a used RAV4 rental car if it’s from a Toyota dealership? Should I take it to a different Toyota dealership to get a PPI?
19:59
On my last car (used CPO) I really wanted to buy a certain car from a one-price dealership. The only problem was that their market price was a fair amount higher than every other car on the local market, including the one I ended up buying which was a year newer, had 10K less miles and more options. I guess they thought their wine was better!
Wow! It was great that you've shopped around
Usually it takes about $1500 to certify a vehicle usually it will come with a 2/24000 mile bumper to bumper warranty or something like that and those vehicles have been through some sort of an 112 point inspection on the car maybe that was the reason it was more expensive.
Check out the ceiling in his bedroom. He did well.
But who wears a white t-shirt and bathrobe for an interview?
Too much information made it as clear as mud. I just need a good used car without getting cheated.
Great Video! I'm just waiting for the best time to purchase USED.
My strategy for used car is always 1. find a car I am interested. 2. tell the salesman exactly how much I wish to pay for the car , a number I believe is fair. 3. If they say no, simply walk away, and look for the next car. I may not get a deal the first time but eventually I always get a car I like with a fair price I set. No need to waste too much time negotiating, if the dealer doesn’t like your offer, it is possible someone in the market highly likely going to pay more for the car. Just walk away, let that someone get it instead.
Great advice.
Awesome words thank you
Exactly. I’ve used this technique my whole life and I’ve never been upside down on a car loan. No need for GAP insurance.
@@markrocka8718 Yes! Deny GAP insurance it just puts more money in their pocket during financing the sale price, which is damaging your wallet. Depending on the state you can demand for doc fees to be waived.
Always walk away. I enjoy them begging me not to leave. I had one tell me and the wife they had a girl they would send to the school to pick up our kids, LOL
We have all traded in cars and the dealer never wants to give you what your car is worth on a trade in. They easily mark a car they paid 25 k for on a trade to 31k
This gentleman has an incredible resemblance to Michael Mckean, in projection and appearance.
*
This video is gold, very well explained.
It is so true, most dealers are data driven, that is the price, not a penny less.
Let me add to what he said, WHAT MAKES YOU SO SPECIAL?
He is wrong for him to ask that, the dealership made consumers FEEL special.
I am in Canada trying very hard to buy a car this week having awful trouble with a etching fee I do not want to pay at 499.00
It doesn't matter what is a fair offer. Things are only worth what someone is willing to pay. The value of a car goes down the older it gets. So if a dealer has had the car for a few months he is more likely to accept a lower offer. I saw a car i was interested in advertised for £9,000. I offered £8,200 and my offer was declined. Four months later the same car is on offer for £8,500. I will aim to get it for £8,000. If i am unsuccessful there are thousands of other cars available. He needs to sell. I don't need to buy.
It helps one to know the difference between "want" & "need"...
Thanks for the great content! I’m sharing your videos and business with friends and family. This might be out of your scope, but I would be interested in videos on vehicle recommendations (i.e. reliable cars for first time buyer or growing family). I also would be interested in content on financial advice when making a vehicle purchase. I understand that you aren’t mechanics or financial advisors, but I’m certain you’ve gained “nuggets” of wisdom by working in the industry for some time. Again, thank you!
Visit Scotty Kilmer YT channel for his picks.
Toyota/lexus makes a very reliable product
Yes, scotty kilmer.
Explained everything perfectly. I feel much better about what I paid for my used car knowing what I now know. Thank you
Have been listening to your videos for the last 3 days and wow did my eyes get opened wide.I have been out on a fishing boat in the bering sea for 3 months.my wife is having engine issues with our 2013 ford escape with 112000 miles.the dealer says we need a new motor but cant tell us what exactly is wrong.I had her take it to a second shop and they said they couldn't find a problem.i told my wife tell them to keep it and drive it,2 weeks the no power issue came up.my question is what can I expect to get for it as is.been watching your videos so I'm better informed for my next putchase
Kelly Blue Book, JD Power etc. etc. inflate used car prices, the European market is way more honest and the used vehicles sell over there at realistic prices unlike here in the US.
My question is, how do you determine the fair market value without using Kelly Blue Book? I've heard that KBB is heavily influenced by the auto industry to inflate used car prices, which is why I'm asking. Also, what tips do you have for negotiating with private owners?
I have always used the Nada book value bc that is what my insurance (geico) uses.. you can call your insurance and ask them good chance they are using Nada
@@UsernameUnkwn21 Thanks!
As per the " so damned special".... Doubt. BS meter. Experience. Different values. American bullheadedness.
It's my cash, it's your car. At the point I buy, I am neutral, I can own a car or hold my cash and I am neutral. Don't care. Either works.
As each car and situation is unique, so is the buyer. You explore together, you decide together. Like dating...but cheaper.
Yeah, don't ever fall in love with any car you don't own yet.
Car Nut Guy, I think, said that Car Max will not negotiate the price at all. I am planning to look at a Toyota Rav 4 that they are bringing down from Knoxville. I am trying to figure out if I should wait till the end of Dec. but I think it is a good deal.
How is it that a new car dealer claims to be a market based dealer when all their prices are 2K higher per vehicle than any other dealer in the area?
Seems like an easy way for them to try to claim that AND make extra $.
Should I be concerned if a dealership doesn't want to show me the invoice price?
b
Good information. I appreciate your insight.
Can y'all talk about buying from a private seller. Getting the best deal specifically...
I think Ray's comment about what makes you so damn special I think I would've bought the car that caught me as a good line
I see many retail outlets that sell used cars charge a "processing fee" (i.e. $299 "processing fee") per each vehicle. Can this be negotiated down or even eliminated from the purchase of a vehicle?
I want to know at the one price dealership like carmax. How often they update the price of there cars. How do i know the car value didnt just go down and they just have not update it? I guess a better question how often they update there pricing ?
Great content! is it true that one way (not the best way) to get rid of a negative equity would be to lease a vehicle?
Market based pricing during covid times means 20% markup because all cars are completely overpriced?
Hows the best way to negotiate a good deal with out letting them know your paying cash till the end
Check out Kevin hunters channel. I literally just watched that video right before this one
Could use guys put like bullet points in the video so we can make notes...thanks
So how can I as a customer know what the dealer paid for a used car? would they pay anything other then actual Cash Value?
If buy an off lease used car, should I tell them I have cash or just pay the car in full on first payment date because they expect to make money on 72 month financing ?
What about buying new without any financing? Vehicle I’m looking at at moment has a 46k dealership website price,what’s a great deal for the buyer
Can a dealership keep a deposit if they were transferring a car from another dealership and you decided to not purchase the vehicle that was being transferred?
Wouldn't mind having someone like your dad during the car buying process. 👌
Good thing you can hire him lol
Crotch Banister He doesn’t sell cars. He helps people get the best price. Hence the name and business of Your Auto Advocate.
My uncle took his clean title 2002 corvette Z06 with 44xxx miles as a trade in and stealership offered 7,000 👊. And I'll give you 900 for that 6000 car. But they're "insulted" when the customer tries to get a few bucks off. This is why people hate STEALERSHIPS!!!
I love your videos! I have a question: How can you tell if a dealership is "Old School" or "One Price"?
So you’re saying a dealer would rather lose money at an auction rather then take money off to make the deal 🤣😂🤣 slimy business
You can take a loss with wholesale, the loss is true cost and not packed. Most dealers are trying to break even with wholesale vs trying to make money retail. Depending on the pack, 1000 dollar retail losing deal is breaking even at auction if sold at the same price.
Preston Freyre still a slimy business
You guys are truly lousy communicators. Nobody would rather lose money. They don’t know how much they will get at auction before they auction it. If they did, they would do the deal that makes the dealership the most money. It’s business, not personal.
There is no risk selling it wholesale
That is hard to believe ..... so you are saying to lose money and not deal....better to only make 500.00 or 800.00 dollars then to lose money and have a lot less cash to buy another car.... i dont believe it...if i had a business and the sales men would not negotiate, he or she would be gone period... i can not believe dealers have that stupid greed mentality .... spite does not pay the bills....
I get the $1200 to $2000 profit the poor dealer is making when they sell it at market price. What about the profit they make in the trade in for that car????
The trade in is like playing craps, they are gambling. The dealer is gambling that the reconditioning costs won't be more than normal, and that someone will want to buy it within their 60 to 90 used car sales policy, there are no guarantees of that expected future profit actually being realized. We all have hopes and dreams, some come true and some don't and that is exactly what the trade in represents, a hope and a dream.
I would hazard to guess that the offs are better than a crap shoot. As far as conditioning costs, I recently traded in a car in the morning and it was on the lot that same afternoon
@@CarEdge What percentage of trades would you say end up on the dealers lot? Aren't the vast majority either sold to wholesalers or sent to auction?
Your Auto Advocate I had an appraisal done at CarMax and waited for the dealer to make an offer on my trade in. They were 3k off and they wouldn’t match CarMax. They asked me to go sell the car at CarMax and return with a check.
They rather sale it to the another dealership at the same price they got it for instead of make a profit? Smh.
Great videos. I really enjoy watching them. Just purchased an SUV with my daughter using you insight and methods. Saved 4,000.00 on a 2018 Toyota RAV 4. Went and looked at them at 4 dealerships. 2 didn’t have any in her color she wanted. The third had one that was dirty and had small interior parts broken. The fourth is a data driven store and I managed to get another 900.00 off the price. We had cash down and no trade in and did not purchase any extras. The came with the balance of the bumper to bumper warranty plus the 5 year hundred thousand mile power train warranty. You guys are great . Keep the videos coming.
love you guys , so glad you say used and not that ridiculous " pre owned '
I can ,, they're monetized YT videos keeps em afloat ,, they really haven't brought anything to the table for a educated car enthusiast with a modest amount of financial wisdom
A $1500 profit on a $25,000 vehicle is a 6% return. If that is in 10 days that is a dang good return.
Yeah, he kind of went through that discussion pretty quickly like we should all just accept it. If they kept that up for the year, that would be a huge profit (over 800% yearly if my figures are correct).
Great video. Video suggestion, the fees that they charge on used cars versus the fees on new cars. Thanks
Walid bahhur yes
Great videos, especially about not telling them you are paying cash. My dad would wear his worst clothes and shoes with holes to go car shopping. 😂😂😂
So the used wholesale market at auctions is down for the past quarter and it continues to decline, That means that there are currently alot of cars sitting for months at the dealership that with no buyers. Furthermore, Hertz is soon to file for bankruptcy and they recently canceled thousands of car orders for this year from differentmanufacturers; all their used cars will soon flood the market which will cause an enormous oversupply... which means extremely lower prices for you.
If your looking to buy a used car, wait a couple of months. Your $15,000 car will go for $11,000 your 12,000 for $9000.. and so on. There are hundreds of dealerships that in the brink of collapse and they will be able to give a sweet deal to survive, dont settle for the ones that just want to give $700-$1000 discount bs. and dont even think to trade in your used car during this time, you will l get $0 to 20% at most for your used car, they are already saturated with inventory.
Thank you for the information I'm currently looking for a vehicle and it stressful I hope I can find a dealer that will be honest and B.S around I just wish I could have someone go with me that would know when the dealer is bullshiting
Boy were you super wrong
I read this commonly but its not like that at all. Used car lots are bare and I cant get to the them before they get sold.
Michael Viglianco because the money they pumping into people pocket, people have lots of money right now and used car price are jack up af. Fucking inflation.
@@tommydo961 Yup, the original comment isn't true at all. Car sales are booming and cars are flying off the lot with dealers making good profits. Here in Canada people got over $10,000 in government handouts because of COVID and they actually noticed the rate of car sales and finances for cars increased lol. Car sales will never crash, it's a daily commodity people want and need new cars to keep going in life. Dealership crashes were predicted but never happened.
I've been trying to buy a car that has a $12,999 sticker price for $12k (taxes &fees included). The dealer won't go lower than $12,500 plus taxes & fees. I'm really hoping they will give me a deal by June...🤞🏽
@Travis Foti no doubt!
Sorry. I learned nothing here. Take three actual used car purchases and show me the documents and numbers and what the buyer did right and what went wrong. For example, show me a $800 processing fee and how the buyer got out of it.
way to groom the minds of those who lack common sense; this makes no sense tbh they mark it up by thousands yet they only have $100-$200 in wiggle room.
Why will dealers that have reached their 90 days selling period rather sell wholesale at auction, rather than lower their price to a retail client who's is offering above wholesale, but below full retail on their vehicle? It seems as if they really despise the retail client, which makes no sense.
Brian, perhaps the customer's offer is less than the anticipated price that the dealer could get at the auction, which from experience is often times the case.
@@CarEdge So are auction prices actually higher than KBB trade in values, and if so, what is a fair percentage number higher than trade in values?
Your Auto Advocate I’ll have to disagree on this one. Speaking from experience I’ve offered higher than wholesale but lower than retail on numerous occasions I’ve gone back to check the dealer on what happened to the vehicle and 9 times out of 10 they have for whatever reason sold the vehicle at auctions or wholesale for less than what I’ve offered dealers simply don’t like to give deals
@@casmithosoicy32 I think there is pride and greed combined with a fear of a precedent. News of good deals travels fast. It is not as though you can have customers sign NDAs (non-disclosure agreements). If you have to do it for one, you would have to do it for all. Therefore, they will take the loss on the one in the hopes that they can find another who will pay closer to the sticker price. In this economy, these salespeople and sales managers are hungry and literally salivating at the possibility of making a higher deal. As they have the family pictures on their desk, they have constant reminders that the end justifies the means. One of the sales managers even brought church into the equation to justify the unethical sales practices of one of his salespeople. It is a new world where we have to be extra careful of not overpaying.
Mendacity.
Market based is exactly what I must be dealing with now. They will not budge on the price. Well, not more than $500. And it's been sitting there for 2.5 months.
That "what makes you so special" tactic might work on some people. I would just walk away because I would feel insulted somehow i.e. the customer is always right or at least shouldn't be spoken to in that tone. Informative video. Thx
The customer is definitely NOT always right. BUT, the customer is always just that, "THE CUSTOMER". As such, the customer is important and necessary and deserves respect. It is a 2-way street and I have missed out on deals simply for being a corn-hole.
@@matthewaxtell Do you sell cars? lol
@@mulljacob Worse, Ag Inputs, Retail. I sell stuff people need rather than what they want. You always get beat up more by someone who needs what you are servicing.
@@matthewaxtell what should I google to learn about Ag Inputs?
@@PaulSchneider-bp2ic That's a question I don't know the answer to. Its kind of like not knowing your own phone number. Ag (agriculture) Inputs is what ever it takes to grow a crop. Seed, nutrients and crop protection products mostly...coupled with service.
I love your channel! I have binged watch just about all your videos in 3 days!!!
On a different topic. What would be a good tactic to negotiate a lease on a new suv that is selling on average at MSRP or higher? If that is not too specific would you do a video on that? Thanks for giving us more confidence when stepping into a dealership.
For full disclosure, I haven't dealt with a used car salesperson since maybe 1995 so what appeared shocking to me could be what most would consider 'normal'.
First impression: place - an HGreg facility, they operate in Florida - look filthy inside and out in almost every way imaginable. Customer parking was crowded and I feared for my car's integrity because parking spaces were so narrow.
Inside, it looked like a crowded sports bar, only the screen had HGreg propaganda running.
I had an appointment for test-driving 2 cars but, since I had test driven the exact same brand and model at another dealership I told them that all I wanted was to see/inspect them and then, possibly discuss terms of purchase. They told us to find the cars in their parking lot - there were hundreds of cars there - vaguely suggesting one area were we were likely to find the vehicles. After 10-15 minutes of walking in a 90F heat we found one and it looked Okay but we never find the second one. Some employee told us to look elsewhere in the lot but 10 minutes later, no success. We liked the one we found enough so we decided to talk with a salesperson.
Oh, the sticker price on the car was more than $4000 higher than we saw online but we had a printout of the online price so we didn't worry about that.
The salesperson we were given forced us to listen through some BS talk about how special HGreg was because unlike other used car dealers, they were not negotiating prices so we were so lucky to be there. When asked about the online price vs on-car-window price discrepancy he told us that they will 'honor' the Internet price so I suspect that if you just walked in and liked the car, you'd be paying the extra $4000 if you were to buy it because price was not negotiable.
To cut the BS short because the bad vibes were almost unbearable, I asked the used car salesman to print us a contract with real dollar figures on it so we can decide whether we were going to buy the car or not.
So the contract included:
- a $400 BS electronic filing fee
- a $980 BS make-dealer-happy ripoff fee (sorry don't remember how they called that)
- a $500 made up title, tags and registration fee and he couldn't explain why it was $500 and not $400 or $600.
By comparison, Carmax fees for a similar car were $27 for electronic filing, $400 make-Carmax-happy and $402 for title and registration. Carvana's, from where we eventually bought our car were $0 for filing, $0 for making Carvana happy fee and about $300 broken down into precise amounts for Title, Registration and License Plate.
I told the used car salesman that I would agree to pay those 'fees' if he lowered the car's price by a similar amount. When he asked why he should do that and I told him that the 'fees' were absurd he told me that that was my opinion and they were not going to touch them.
So we left and, as I stated above, we bought a similar car listed at a similar price from Carvana. And 'saved' over $1500-2000 in HGreg's bogus ripoff fees.
I hope that not all used car dealers are like HGreg but then, I will probably never know because it's unlikely that I will ever again attempt to deal with such people and businesses. And I believe that we only scratched the surface of potential customer ripoffs here. We were going to pay cash so had no need for financing, had no trade-in and didn't care about a service plan because the vehicle we wanted to buy had some 2 years worth of manufacturer warranty left. But I can only try to imagine the many ways these people would financially abuse a customer who did need financing, did plan to trade in their old car and did want to purchase some post-sale support. Mind is boggled.
I have a question the dealer had a car for the amount of like $ 13567.99 they had the picture online for that price but when we went to look at it they told us about that price and there was a new one car dealer sales person and he told us about the price so when we went to buy the car the manager said it cost $19,999.00. why does this happen. He told us that the new sales person made a mistake but then we saw it online for that price of 13 k. Do this happen often?
It only happens at crooked dealerships. Run, don't walk away form dealerships that operate that way! Stay safe and thanks for watching, Ray
Used cars are always marked up huge so I don’t agree with you at all. My friend traded and negotiated on a new car. They marked his trade in up 7k. No idea if they sold it at the mark up but still huge mark up. I’ve also seen this three other times.
Can you talk more about Carvana and how we can negotiate with those types of dealers?
You don't.
Why are we so "Damn Special" because there is NO TRANSPARENCY in what you paid for the car.. Terrible Video! If a car salesmen said that to me I will ask what makes you think you can take more of my hard money that are earned.. 1500K is what a car dealer should get period for any car.. be it 20K or 40K, you did nothing to the car except show it...
I have a question: If you do have a customer that comes in and wants to pay the sticker price for a car, but it has special incentives like rebates or other price reductions, do you ever feel obligated to mention that to the customer or do you ‘go with the flow’ ?
BUT.....I don't imagine dealerships give the market based price to the individual who traded the used car for a new one.
So even if they are asking market price they are likely making a substantial profit.
Most spots do, They use resources like MMR to gauge a wholesale price.
I almost bought a2011 expedition lxt for 16,981 but they are forcing me to buy the LoJack for $895 so plus tax and license and other fees $23,000 total but my wife noticed some rusts on the tailgate and hood painted but swollen and tires are bald still original so we offered $18,000 they countered $20,000 ,they let us walked away the car has been in the market for 24 days,Why do you think they let us go?Also I live 90 miles away and they let us go,seems their lot is full and not moving or selling.
You bring up a point that inspires a question. When a dealership wholesales a car to another dealership, does that show as another owner on the Carfax report?
A customer wants to buy a car under retail the dealer says no. The dealer then turns around and wholesales to another dealership or auction for less than what the customer offered. Why is that?
Why are dealers such sticklers when it comes to price? Me the consumer is buying something typically price above the actual value of the car. Coupled with rising insurance cost, maintenance cost, gas, and interest. It makes sense for me to want to purchase for as little money as possible for the simple fact that it will never be worth more or even be equal to what I’ve paid. If I offer a dealer 10k on a 12k car and the dealer says no and sells that car to another dealer or auction for less, what is the sense in that? Where is the logic??
a single price dealer is going to base on an average of the people that are overpaying and the ones getting a great deal. if you're looking to buy a used car you're looking for a great deal and you're not going to get that at carmax.
I hate one price dealers! Even if you show them stuff that needs to be fixed. They won’t budge. We should all stop buying form them. They put the price a little lower and wait for a idiot who doesn’t know any better. It’s for the people who have know idea how cheap they get the cars for.
I cannot tell you guys how awesome and educational your videos have been! Thank you!
I have successfully negotiated a price discount at CarMax -- but it was for a car that had been on their lot more then 60 (or was it 90 days). I vaguely remember a conversation with one of their mgrs. -- they incrementally mark down prices by a certain % after it has gone unsold for a certain number of days.
The profit of a used vehicle is not in the selling of the vehicle. It’s in the purchase of the used vehicle.
Great review. I've learned a lot. I'm saving up right now for my dream car. THE INFINITI Q70L. I plan to have it in 2 years from now.
Top 20 vehicle to stay away from..Unreliable & very costly
Did you get it?
If paying cash for a used car at a dealership when is the best time to disclose it and does the dealer prefer not to deal with someone offering cash?
So how can they justify adding $4-8k to the trade in value when they are willing to make $200-$1000 profit?
One word, reconditioning. At my dealership the average shop bill is 2200 dollars, then to certify a car is another 4 digit bill, depending on model, to the manufacturer for the privilege to do so. Detail 240, paintless dent repair, interior guy another 400. You would be surprised, to you it seems the dealer is making 4k off your trade, but they're not. Most people are trading their car in for a reason and we have to fix it and get it right. Some shop bills get up to 5 and 6 grand, those cars go to auction.
First off, if your buying a car from a dealer you've already lost.
Is there any benefit to purchasing cars from rental companies? Ie avis, enterprise etc? Also how does the current information you Just shared apply to those companies?
Wierd. A dealer would be willing to take whatever they get at auction, which is bound to be a fraction of what they were asking retail, rather than sell it to a customer at that or near that auction price?? How is that advantageous to the dealer?? Rather than give a customer a great deal
, they are willing to eat a huge loss in most cases??? I must be missing something...doesn't make sense unless it's just a big middle finger to customers...
My thoughts too. Makes no sense whatsoever.🤷🏾♂️
can you do one wearing a leopard robe??
lowball the shit out of those scumbags while you still can, thats how you make a fair offer on a used car
The thing that might make that person “so damn special” is the fact that that individual is there at the moment ready and willing to pay for the car.. as opposed to the next that may come along say a week or a month later.. 🤔
Great video and info none-the-less! Thanks guys!!
Love your info.but you frequently talk about higher end cars. Would you help out an old lady who's in the market for a new car at the lower end of the market say a Toyota Corolla. I imagine there's probably a wider margin for negotiation on higher cost cars so what about the parameters on the lower end ? Thank you.
thanks you guys, useful and very quick output too :) you guys rock. so identifying what kind of dealer you are working with seems to be the main idea here. If you don't mind diving into that topic and how to find dealer types based on their revenue model , it'll be great. Also could you talk about trade in values. it seems like in most cases when you bring your trade in to a dealer you lose more money vs if you sold the car privately and walked in with cash.
Happy to help! Thanks for watching!
Almost always better to sell privately and buy privately for that matter!
A whole lot of something, beats a whole lot of nothing. Dealerships would rather wholesale or auction a vehicle than build huge customer credibility and loyalty by selling a vehicle at market value or loss.
How do you get the Manheim Market report? I’m looking for a 2016 Civic for about 8k-9k. Do you think this is possible?
Is Auto Lenders a good place to buy a used car or certified used? Also what does "NO HAGGLE PRICE" Really Mean?
I understand dealers have to make money and I have no problem paying a couple of thousand above the wholesale value of the car but a lot of dealers are asking 5 to 7 grand above wholesale. How accurate are the posted wholesale values on sights like Kelly Blue Book?
Hey are you planning on doing a video on how to navigate used or new car purchases in this volatile market. Are there deals to be had? Should we buy now or wait a few months? Will lease returns, repos, and rental car bankruptcy drive prices lower? Thanks in advance!
I'm really enjoying your channel. Lots of great wisdom being shared.
I don't think so much "what makes you special" to get a better price. Consumers (myself included) have been trained to believe that purchasing a car requires negotiation; that the list price is never the real price. And generally people just don't want to feel get ripped off (even more so than actually getting ripped off), whether they're right or not. While it might help in the purchase process, it's generally not front of mind for most consumers to understand the nuances of a particular industry's business model. And it seems like this particular industry is pretty complicated and constantly changing.
This is fantastic content, I’m always going to want money off, it’s showing willingness to work with me, if you don’t move at all then I’m not buying your car it’s that simple, I don’t care what their model is. Your videos are awesome, so much good information!
You two guys are fantastic and I appreciate your efforts. Your channel is great and your DAD is a genius in his own way. I can listen to wisdom all day long and he has the "swagger" to go with the humor, knowledge, and experience. He's a person to be respected and you guys deserve all that you receive. Thank you and thank you again. I'll keep watching more videos, very entertaining and educational in so many different ways.
Llll
Pploolpllllllllllllolll
Plopp😊plllooo I’ll lol ok ok llllllllpllllll
I appreciate your no-bull approach to the car buying business. I have always felt that I was getting screwed when I went to any dealership and did not believe a thing they told me. I have walked out of many negotiations. Of course, I check KBB before I go--every time. On my last purchase, I ended up paying the registration for more than one year because in California-at that time--the dealers did not have to register the car they way all of us sheep must.
Ray comes across as a guy who is telling it like it is.
I could be wrong here, but from my perspective, if you can get ahold of the original Sticker on the vehicle that helps. Take that amount, and subtract 20% off the top of the vehicle. Then also, subtract $1000.00 for ever 10K miles on the vehicle. This give you an amount that the dealership paid for the vehicle. Is that a valid process in your estimation?
Dealers want to make around 3k on finance, on top of what the bank is making.they want use their own finance bank, they hate when you come pre approved with your own bank,
This is really great information, but my question is, why should I care about making a "fair" offer? If I focus on what's fair, I'm going to get raked over the coals. Dealers have no intention of giving "fair" deals.
Do dealerships apply different styles of markup for auction cars versus trade ins? I imagine dealerships have to ability to get vehicles cheaper at auction on occasion, so would they hide that cheaper purchase price with higher markup?
We do not price negotiate on any other commodity except car. Just curious as to how it all started only for cars way back when. Now if we do not negotiate the price down, we walk away with the feeling that we over paid.
love the business model explanation of used cars, it helps to see the big picture to know how to tackle a negotiation strategy.
It seems strange to me that some dealers will send a car to auction, or another wholesaler for a low price, but not give the customer that same price.
They’re not taking a loss in most cases, bigger dealer groups will just rotate inventory between their different store. They have internal auctions where they don’t really loose money.
Like grocery stores will rather throw away food than give it away. The customers would become the wiser.
What is the best process to come up with an initial offer in a used vehicle negotiation with a dealer? Should it be based off of trade in value, private party or dealer retail? So far my research is showing they are asking about 5k over trade in value.
My objective is not to make a fair offer. My objective is to pay as little as possible. But, I’m always at a disadvantage because the sales manager always has more information than me.
In the end, the only way to get the best price is to consume their time. If you can get them to wast 10+ hours over several days, without angering them, that is the most reliable way. But if that saves a thousand dollars, you are earning pretty good wages. It just takes patience.
I don’t believe that used cars will be the price they are and won’t come down. I have been watching a few cars a few weeks. All have went down $1000 or more.
Can y’all please brake down the fees we have to pay verses the fees that just charge people who don’t know eny better
Yes. I know some states limit the 'dealer fees' and have read some states require ANY published price be accepted with only title and tag fees (which SOME states limit).and of course Sales Tax. It's confusing -- and doubly so when I'm looking at 2 cars just across state line.
Cost+state tax+title plates(see state fees)+ % financing(times years financing)= Total financing price
I recently noticed where a couple dealers were selling a car and when you looked at the history of how they were discounting the vehicle you would see several deductions in price, but then you would also see where they added back into that price, and then start the discounting from this new price again. Sure seems like they're game playing by doing that to me especially when you can clearly see the car has been on the dealers lot for 80 or sometimes more days. I would think they would eventually realize that it's simply better to turn those dollars period.
Good video! So if CarGurus has a car listed as Fair or Good price (not above averaged or High), is that considered a market value dealer price? I would lowball them regardless and see what happens, but I have time on my side.
a
Would love your take on Covid affecting used prices. Dealerships where I am have started to lower prices a bit 10-15%. I like negotiating, and will feel ripped off if I buy now and a drastic price decline happens in a few months. Thinking of pursuing a private sale where their time waiting vs cash now is more in my favour.
+1 - This is important!!
Please do some research on the particular vehicle you want. Assuming that you need to get a big discount to buy something is a wrong mindset, especially with many more things being market based pricing or wait for things to mellow down.
I realize this is a few months old, but I'm wondering with regards to the fixed price dealer. Like what Zach said at the end of the video, I'm of the camp to feel it's also BS, that the markup is still there and it was taken out of what the dealer offered the previous owner as a trade in. Dealer market value vs trade in value is where I feel these dealers are simply doing the same markup as the old school dealers and they're just holding firm to their price. How often (and I think it's very often) does someone go to the dealer knowing market value of their trade is probably x, trade is y, and the dealer comes and offers (y - $2000); you say kbb says my trade should be y, and they say they just can't do that because blah blah blah. Next thing you know you see it on their lot for $6k markup, not 2, and they're a fixed price dealer. At least where I am in the North East it seems all dealers are moving to this market price model, but grossing more than ever by low balling trade ins.
I wonder if you have any thoughts or comments regarding this, that the dealerships are still playing the old school game with trade-in policy but adjusting to the market value model with selling, and in doing such they're just profiting more than ever and customers are getting the "take it or leave it" more and more.
Trade value is often under book value for a simple reason. Customers want to test drive the potential purchase, take it to a mechanic etc., BUT they want a trade in value on their trade right now!!!! The dealer will lowball because they don't know what they're getting. They need to safety the car, maybe spend money, maybe do mechanical, and then make a profit on top of what they gave you...if it's over market value, it doesn't sell. To keep their price right, cover any unexpected costs, they lowball your trade.
It makes sense but people get angry. If you let the dealer inspect your car thouroughly, you might get more but then they have to pay shop rate to their own shop as the time charged to the trade in inspection could have been used to service another car. Either way, it's money.