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.
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
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.
"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
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
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.
Two things: I recently made an appointment with a sales person at a dealership for a used vehicle I liked. The price had been reduced online and that caught my interest. When we started talking numbers, they used a higher price than what was online and when I went to check the website, they had raised the price by 2k. I'm ok with the one price dealership as long as it includes a legitimate 2 or 3 year warranty. The finance manager at a dealership is going to try to sell it to me anyway so at least I feel i'm getting something for the higher price.
Next time print it off, and when they refuse to honor it ask if they'd like to be reported to the State Regulators (whoever it is in your state) and to Better Business Bureau, bad YELP, GOOGLE, etc review just for icing.
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!!!
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.
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.
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).
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.
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 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.
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.
Winter ... during a snowstorm, best time to walk into the showroom or office depending on dealership. Over 50 years of buying used, it sure is a customer advantage. Best months would be January or February. Stocks may be lower during those months, but definitely is right time for very good discounts.
Your channel is incredibly instructive...! I bought my third car and felt I had more knowledge of what I was doing than ever because of you guys. I ended up with I price I was happy with and felt the dealer respected me much more. Thanks a lot, I’m from Quebec
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
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?
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!!
Our one price dealers, have a hell of a lot of fluff in the final sale, over and beyond the set price. Same car, down to the color. Fluff dealer $32k car OTD 39.5k Old school $35k car OTD 37.6k. So again dealer trained to take advantage of buyer even when car has a set 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.
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.
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’ ?
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.
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.
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.
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.
I bought my 2017 Mustang in August of 2017 from a very small used car dealership. There was no finance dept and no service dept. His model was to buy cars at auction that would sell quickly. The car still had some time left on the manufacturer's warranty. He didn't try to sell me a warranty and there was no pressure to buy. The price was fair. Yes hubby and I did research on prices for this type of car. I had the option to pay cash or by credit card. By paying cash I received an additional discount as the dealer saved the credit card fee on his end and passed it on to me. And yes I asked if a cash deal would reduce the price. The car was almost exactly what I wanted. The only thing that it was missing was blind spot monitoring. The only other Mustang EcoBoost premium with the features that I wanted that was available within a reasonable distance would have cost me $14,000 more as it was a new car. So I opted to go used with a car that had 26,000 miles. Nothing in life is perfect but I've really enjoyed this car. Would I like blind spot monitoring? Yes but that's all that I miss. Hubby and I test drove the car on Friday and returned on Saturday to buy the car. The dealership was a two man show and there was never any pressure. Btw, I'm just across the Potomac River from you in N VA. I really enjoy your videos!
what makes me so damn special is that I am here right now with cash ready to buy this car and nobody else is. That is how I would answer that question.
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.
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...🤞🏽
Hey thanks for all the good info We waited to buy . Prices went up a bit . So we just bought 2017 highlander XLE .the original out the door price was 38.000 we got it for 31 out the door . Pre owned certified . We used all your info . To purchase our car . Thank you .
Love your wisdom and willingness to help potential buyers become more savvy. Future video suggestion: How do you know "when it's time" to take the plunge and trade-in? What are the most common reasons (and most ridiculous reasons) you have heard for people wanting to trade-in/purchase a new/used vehicle? I became curious about this after watching the "needs assessment" video on your webpage. Thanks!!
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.
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!
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.
Haha! "Fine Wine Policy". That was AWESOME. Dealt with a couple of dealerships in Abilene, Tx who had that thought process... ... surprise...I didn't buy a thing from them.
Thank you for posting all of your videos lately. As a consumer, I have limited access to information in regards to purchasing cars. But, in the last 21 years I have owned approximately 33 cars. I typically trade in my cars every 6-12 months. I have owned a fairly equal mix of new and preowned cars. Over the last few years, I have encountered more difficulty negotiating than ever before. Whether it’s a lease or a purchase. New or used. For someone who likes to experience a lot of cars, what is the best way to do so in the future? I would like to continue to buy and sell cars frequently, but dealers don’t really care if I’m coming back in six months. They just care about the profits at the time of sale. Obviously I cannot go to auction, but the only way that I can buy and sell cars every 6 to 12 months is to obtain a decent deal where I can be as close to whole sale on my next purchase and as close to retail on my trade. Are my days of frequent car purchasing over? Or do I just have to pay through the nose now? I am accustomed to losing about $3000-$4000 (not including. payments) every year on cars that are typically between $20,000 and $50,000. But not the $8,000-10,000 that I’ve been seeing in the last 3 years. Am I just picking the wrong cars? Thanks so much!
Sunny Day I didn’t know you could do that. I could see that working on a new car. Maybe even with a prepaid lease. What about used cars? I would get more for my money with as 2-4 year old car. The main reason I switch often is to experience different cars. Not just to get into a different car. Thanks!
You make it sound easy but I’m 65 years old and disabled. Don’t have he stamina for hours in a dealership and the let me speak to my manager tactic. Want a slightly used car low mileage that has already took a depreciation hit for a reasonable price.
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!
The "fine wine" method has been a Chasity Belt for dealers selling the P71 Crown Vics and the Mercury Grand Marquise of 1995 thru 2011 years. This year 2000 thru 2011 Lincoln Continentals have become moated. For old men wanting big doors to get in/out it's a sell your body parts to afford a purchase price. THANKS! I know more now than I did before I saw the video.
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.
Would love to see a video on buying a used truck in 2024 what mileage is good, what otd price is fair for both and when because I keep hearing prices are coming down but I've yet to see that. Thank you and keep up the great work!
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 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?
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.
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.
Great program offering info on how to start to develop a strategy to make an offer on a used car. I had an experience with a SoCal Porsche dealership late last year, where I offered several grand less than their price, the dealer came down a little but said their adjusted price was final and the car was going to auction at the end of the month if it didn't sell at that price. Their final price was about ten grand over the trade in value of the car. How likely is it that a dealer would get substantially over trade in at an auction?
What gets me is that I have no way of knowing how much extra is being tacked on to the deal at a one price dealer.. because we dont know what they paid for the used vehicle. So still quite uneasy about it.
So the question is, how do you know for sure that you're shopping at a one-price dealer? Carmax's website, for example, cleary says "no haggling", but Carvana's does not. If you're at some random dealer's lot talking to a salesman and he says "we don't negotiate", how do you know that's not just a negotiating tactic?
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
at 17:56 , Ray you hit the nail on the head, it's not that I want to be more special than the other buyer, It's that i have complete mistrust and feel that I am overpaying for this depreciating liability ( knowing full well that it is already dropping in value exponentially anyway, unless I can get it for less than what the dealer paid), so the only way to convince me that i am not is to show me the price they paid and decide how much more over that i am willing to pay. I believe that the company is for-profit and is responsible t the stockholders to make that profit, so I'll agree to pay a small markup, maybe 5-10%, because i also know ( and this is sad but caveat emptor) they will gouge someone that does not watch and take the dad and kid show. BTW, i laugh when they say "no hassle pricing" and try to make people feel good, because i hear " hey sucker, we are sticking to you with no lube and you have no chance to get a good deal. LOL. Keep up the good work. I love Ray's evolution from these earlier videos where he seem to be a stick to the business, don't smile to now having the one liners and roasting his son on the air. Build my trust in them . ( hey , wait a minute, is that some old school car dealer tactic to get my trust? lol)
I saw today that Spanish banker Santander has agreed to a big fine for sub-prime car loans. Made me think of your show on pending damage to the car market. But the agreement blocked repos on those loans, a new wrinkle.
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!
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.
Man I really love your videos. Father and son, makes a great duo. My question... My local Toyota dealer states the used car prices are pure because in a 50 mile radius comparable vehicles are at or above this said price. Therefore there is no wiggle room at advertised price is final. Any truth to that? Also is the $600 Toyoguard paint protectant on new vehicles, something that can be refused. Thanks again for great informative videos.
Last year I bought a 2017 Ram 2500 Cummins diesel from a one price dealership (big national company not Carmax). Like you said they wouldn’t budge on the price. BUT I was able to get them to waive the dealer fee which was around $700. Not much said here about dealer fees and that’s something I always refuse to pay because it’s pure profit.
Corporate philosophy. BMW is aggressively seeking sales volume and Audi is taking a much more conservative approach towards growth. It really is as simple as that.
Man I really love your videos. Father and son, makes a great duo. My question... My local Toyota dealer states the used car prices are pure because in a 50 mile radius comparable vehicles are at or above this said price. Therefore there is no wiggle room at advertised price is final. Any truth to that? Also is the $600 Toyoguard paint protectant on new vehicles, something that can be refused. Thanks again for great informative videos.
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?
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??
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've seen dealers with cars that have "birthdays"! It's so true. There are all kinds of store policies and so many badly run ones. Like everything else l suppose. My least favorite are those that require store generated financing.
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.
Great videos. I'm so glad UA-cam "suggested' them. You might have covered this before, but I wasn't able to search it. What are you top used car online search sites? Edmund's was mentioned and True car. What's your favorite?
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 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?
I am currently in contact with a Ford dealer that has had the car ( a 32K miles, 2016 Sonic LT hatchback,1.4L turbo w/6 spd m.t.) for 243 daz and has not marked it down even once (Car Gurus).To make matters worse, the sales person will NOT give me an "out the door price".I just decided to quite contacting them until I get both Covid shots. Then I will drive the 120 miles to Rolla, Mo and make an offer. It might be a dry run, but at least I will either own the 2016 Sonic or be free to look else where. I will subscribe and thank you for any enlightenment! RGR in Kansas City, MO.
Always good info on here. Thanks. Is there any way of knowing which dealers are old-school, where it's possible to negotiate, and those which are data-driven, 'the price is the price'?
My initial offer is always 1/2 asking & that includes their doc fees / TL ,, I havent purchased 1 Vehicle with this strategy - and I never negotiate , I walk out and get in my paid off beater & roll on
Lifted trucks! Do a video on specialty trucks, and custom vehicle pricing, negotiation and trades cause let's face it, neither are selling at the moment! Subscriber since the beginning. #TeamShefska
You guys are AWESOME! Love watching your videos. I will be looking for a new or slightly new vehicle in 10 months. I know exactly what I want. This will be very helpful for when I start shopping.
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?
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
You're that dealership owner, aren't you? And this is an ad
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
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.
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.
"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
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
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.
love the business model explanation of used cars, it helps to see the big picture to know how to tackle a negotiation strategy.
Two things: I recently made an appointment with a sales person at a dealership for a used vehicle I liked. The price had been reduced online and that caught my interest. When we started talking numbers, they used a higher price than what was online and when I went to check the website, they had raised the price by 2k.
I'm ok with the one price dealership as long as it includes a legitimate 2 or 3 year warranty. The finance manager at a dealership is going to try to sell it to me anyway so at least I feel i'm getting something for the higher price.
Next time print it off, and when they refuse to honor it ask if they'd like to be reported to the State Regulators (whoever it is in your state) and to Better Business Bureau, bad YELP, GOOGLE, etc review just for icing.
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!!!
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.
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.
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).
I love your videos! I have a question: How can you tell if a dealership is "Old School" or "One Price"?
Great video. Video suggestion, the fees that they charge on used cars versus the fees on new cars. Thanks
Walid bahhur yes
I cannot tell you guys how awesome and educational your videos have been! Thank you!
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.
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 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.
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
Great Video! I'm just waiting for the best time to purchase USED.
Winter ... during a snowstorm, best time to walk into the showroom or office depending on dealership. Over 50 years of buying used, it sure is a customer advantage. Best months would be January or February. Stocks may be lower during those months, but definitely is right time for very good discounts.
Your channel is incredibly instructive...! I bought my third car and felt I had more knowledge of what I was doing than ever because of you guys. I ended up with I price I was happy with and felt the dealer respected me much more. Thanks a lot, I’m from Quebec
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?
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
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?
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!!
The younger man asked some really good questions. Thanks for the video.
Y’all listen to this man he knows his stuff!!
Our one price dealers, have a hell of a lot of fluff in the final sale, over and beyond the set price. Same car, down to the color. Fluff dealer $32k car OTD 39.5k
Old school $35k car OTD 37.6k. So again dealer trained to take advantage of buyer even when car has a set 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.
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.
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’ ?
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.
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.
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.
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.
I bought my 2017 Mustang in August of 2017 from a very small used car dealership. There was no finance dept and no service dept. His model was to buy cars at auction that would sell quickly. The car still had some time left on the manufacturer's warranty. He didn't try to sell me a warranty and there was no pressure to buy. The price was fair. Yes hubby and I did research on prices for this type of car. I had the option to pay cash or by credit card. By paying cash I received an additional discount as the dealer saved the credit card fee on his end and passed it on to me. And yes I asked if a cash deal would reduce the price. The car was almost exactly what I wanted. The only thing that it was missing was blind spot monitoring. The only other Mustang EcoBoost premium with the features that I wanted that was available within a reasonable distance would have cost me $14,000 more as it was a new car. So I opted to go used with a car that had 26,000 miles. Nothing in life is perfect but I've really enjoyed this car. Would I like blind spot monitoring? Yes but that's all that I miss. Hubby and I test drove the car on Friday and returned on Saturday to buy the car. The dealership was a two man show and there was never any pressure. Btw, I'm just across the Potomac River from you in N VA. I really enjoy your videos!
what makes me so damn special is that I am here right now with cash ready to buy this car and nobody else is. That is how I would answer that question.
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!
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!
Hey thanks for all the good info
We waited to buy . Prices went up a bit . So we just bought 2017 highlander XLE .the original out the door price was
38.000 we got it for 31 out the door . Pre owned certified . We used all your info . To purchase our car . Thank you .
Damn nice deal. I want a 2016 Chevy Cruz. They are asking 10,750. Do you think I could get them down to 9500?
Can you talk more about Carvana and how we can negotiate with those types of dealers?
You don't.
Patrick is dropping gold nuggets! What a polished professional salesman!
Love your wisdom and willingness to help potential buyers become more savvy. Future video suggestion: How do you know "when it's time" to take the plunge and trade-in? What are the most common reasons (and most ridiculous reasons) you have heard for people wanting to trade-in/purchase a new/used vehicle? I became curious about this after watching the "needs assessment" video on your webpage. Thanks!!
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.
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!
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.
Haha!
"Fine Wine Policy".
That was AWESOME.
Dealt with a couple of dealerships in Abilene, Tx who had that thought process...
... surprise...I didn't buy a thing from them.
Thank you for posting all of your videos lately. As a consumer, I have limited access to information in regards to purchasing cars. But, in the last 21 years I have owned approximately 33 cars. I typically trade in my cars every 6-12 months. I have owned a fairly equal mix of new and preowned cars. Over the last few years, I have encountered more difficulty negotiating than ever before. Whether it’s a lease or a purchase. New or used. For someone who likes to experience a lot of cars, what is the best way to do so in the future? I would like to continue to buy and sell cars frequently, but dealers don’t really care if I’m coming back in six months. They just care about the profits at the time of sale. Obviously I cannot go to auction, but the only way that I can buy and sell cars every 6 to 12 months is to obtain a decent deal where I can be as close to whole sale on my next purchase and as close to retail on my trade. Are my days of frequent car purchasing over? Or do I just have to pay through the nose now? I am accustomed to losing about $3000-$4000 (not including. payments) every year on cars that are typically between $20,000 and $50,000. But not the $8,000-10,000 that I’ve been seeing in the last 3 years. Am I just picking the wrong cars? Thanks so much!
Dude, if you have money like that, why not do 1-year leases?
Sunny Day I didn’t know you could do that. I could see that working on a new car. Maybe even with a prepaid lease. What about used cars? I would get more for my money with as 2-4 year old car. The main reason I switch often is to experience different cars. Not just to get into a different car. Thanks!
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?
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.
You make it sound easy but I’m 65 years old and disabled. Don’t have he stamina for hours in a dealership and the let me speak to my manager tactic. Want a slightly used car low mileage that has already took a depreciation hit for a reasonable price.
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 guys are awesome. Great information I saved quite a bit on a used car during this lockdown using your advice. Thank you!
The "fine wine" method has been a Chasity Belt for dealers selling the P71 Crown Vics and the Mercury Grand Marquise of 1995 thru 2011 years. This year 2000 thru 2011 Lincoln Continentals have become moated. For old men wanting big doors to get in/out it's a sell your body parts to afford a purchase price. THANKS! I know more now than I did before I saw the video.
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.
Would love to see a video on buying a used truck in 2024 what mileage is good, what otd price is fair for both and when because I keep hearing prices are coming down but I've yet to see that. Thank you and keep up the great work!
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 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?
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.
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.
wow ray seems like a deep thinker , i'm waiting on his every thought
Great program offering info on how to start to develop a strategy to make an offer on a used car.
I had an experience with a SoCal Porsche dealership late last year, where I offered several grand less than their price, the dealer came down a little but said their adjusted price was final and the car was going to auction at the end of the month if it didn't sell at that price. Their final price was about ten grand over the trade in value of the car. How likely is it that a dealer would get substantially over trade in at an auction?
What gets me is that I have no way of knowing how much extra is being tacked on to the deal at a one price dealer.. because we dont know what they paid for the used vehicle. So still quite uneasy about it.
So the question is, how do you know for sure that you're shopping at a one-price dealer? Carmax's website, for example, cleary says "no haggling", but Carvana's does not. If you're at some random dealer's lot talking to a salesman and he says "we don't negotiate", how do you know that's not just a negotiating tactic?
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!
Question: If I buy a used car, should I go to a big dealer or do the little 10-20 car independent car dealer? Really tight budget, college student.
at 17:56 , Ray you hit the nail on the head, it's not that I want to be more special than the other buyer, It's that i have complete mistrust and feel that I am overpaying for this depreciating liability ( knowing full well that it is already dropping in value exponentially anyway, unless I can get it for less than what the dealer paid), so the only way to convince me that i am not is to show me the price they paid and decide how much more over that i am willing to pay. I believe that the company is for-profit and is responsible t the stockholders to make that profit, so I'll agree to pay a small markup, maybe 5-10%, because i also know ( and this is sad but caveat emptor) they will gouge someone that does not watch and take the dad and kid show. BTW, i laugh when they say "no hassle pricing" and try to make people feel good, because i hear " hey sucker, we are sticking to you with no lube and you have no chance to get a good deal. LOL. Keep up the good work. I love Ray's evolution from these earlier videos where he seem to be a stick to the business, don't smile to now having the one liners and roasting his son on the air. Build my trust in them . ( hey , wait a minute, is that some old school car dealer tactic to get my trust? lol)
I saw today that Spanish banker Santander has agreed to a big fine for sub-prime car loans. Made me think of your show on pending damage to the car market. But the agreement blocked repos on those loans, a new wrinkle.
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.
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.
great video guys, thanks for the info as this will help me hopefully make a purchase this weekend. I'll let you know how it goes.
Man I really love your videos. Father and son, makes a great duo.
My question...
My local Toyota dealer states the used car prices are pure because in a 50 mile radius comparable vehicles are at or above this said price.
Therefore there is no wiggle room at advertised price is final. Any truth to that?
Also is the $600 Toyoguard paint protectant on new vehicles, something that can be refused.
Thanks again for great informative videos.
Last year I bought a 2017 Ram 2500 Cummins diesel from a one price dealership (big national company not Carmax). Like you said they wouldn’t budge on the price. BUT I was able to get them to waive the dealer fee which was around $700. Not much said here about dealer fees and that’s something I always refuse to pay because it’s pure profit.
Another great video. Can you discuss why manufacturers like BMW seem to always offer much more incentives than Audi?
Corporate philosophy. BMW is aggressively seeking sales volume and Audi is taking a much more conservative approach towards growth. It really is as simple as that.
@@CarEdge Thank you!
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
Thanks for this video, confirmed alot of my suspicions about pricing.
Man I really love your videos. Father and son, makes a great duo.
My question...
My local Toyota dealer states the used car prices are pure because in a 50 mile radius comparable vehicles are at or above this said price.
Therefore there is no wiggle room at advertised price is final. Any truth to that?
Also is the $600 Toyoguard paint protectant on new vehicles, something that can be refused.
Thanks again for great informative videos.
If they don't want to waive that bs fee, ask them to take it off the price of the car. If not, walk out
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?
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??
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've seen dealers with cars that have "birthdays"! It's so true. There are all kinds of store policies and so many badly run ones. Like everything else l suppose. My least favorite are those that require store generated financing.
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.
Great videos. I'm so glad UA-cam "suggested' them. You might have covered this before, but I wasn't able to search it. What are you top used car online search sites? Edmund's was mentioned and True car. What's your favorite?
.
Brian Kennedy it’s difficult to appraise an used car. The market is messed up cuz of COVID.
Cargurus, cars.com, autotrader, Kelley blue book, carvana
Awesome video guys. Fantastic insight into the inner workings of the car dealership, thanks for sharing.
Love the format of the conversations, Zach. Please tell the expert thanks for us.
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 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
I am currently in contact with a Ford dealer that has had the car ( a 32K miles, 2016 Sonic LT hatchback,1.4L turbo w/6 spd m.t.) for 243 daz and has not marked it down even once (Car Gurus).To make matters worse, the sales person will NOT give me an "out the door price".I just decided to quite contacting them until I get both Covid shots. Then I will drive the 120 miles to Rolla, Mo and make an offer. It might be a dry run, but at least I will either own the 2016 Sonic or be free to look else where. I will subscribe and thank you for any enlightenment! RGR in Kansas City, MO.
This was exactly what I needed to hear right now, thanks gentlemen.
Always good info on here. Thanks. Is there any way of knowing which dealers are old-school, where it's possible to negotiate, and those which are data-driven, 'the price is the price'?
Internet pricing is usually close to their lowest.
Love you guys. I find that I watch every day.
Super helpful video and now I know why several dealer would not budge off of their internet pricing. Thanks to both of you.
My initial offer is always 1/2 asking & that includes their doc fees / TL ,, I havent purchased 1 Vehicle with this strategy - and I never negotiate , I walk out and get in my paid off beater & roll on
Lifted trucks! Do a video on specialty trucks, and custom vehicle pricing, negotiation and trades cause let's face it, neither are selling at the moment! Subscriber since the beginning. #TeamShefska
You guys are great, and I look forward to your contributions within the automotive sales market daily. Keep it flowing gentlemen.
You guys are AWESOME! Love watching your videos. I will be looking for a new or slightly new vehicle in 10 months. I know exactly what I want. This will be very helpful for when I start shopping.
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?