Dealership Finance Managers HATE when you know these 6 things!

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  • Опубліковано 28 лис 2024

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  • @AutoFinanceSense
    @AutoFinanceSense  2 місяці тому +12

    When I speak of "Products", I mean the ones being sold in the dealership finance office. Typically on a "Menu" (see my other videos). For example, the Vehicle Service Contract a/k/a "extended warranty", GAP, maintenance plans, dent/ding, paint/interior protection, tire/wheel plans and so on. I have videos on each of these on my channel. Also, you can jump to the 8:18 Mark of this video: ua-cam.com/video/xicg4_VimTY/v-deo.html And be sure to check out ALL my videos here: www.youtube.com/@AutoFinanceSense/videos

    • @me4654
      @me4654 Місяць тому

      The previous owner must have had a really long loan as my Sister bought me outta my trust a 22 Camry & they neglected to tell us that I need a ATT hotspot even though my phone has it on there, Toyota must have a contract with ATT since nothing worked as far as safety features and the salesman just told me keep my phone plugged in and I'll see the maps? Nope after pressing it different times it said unavailable no subscription when in fact after calling ATT for a trial the previous owner had 8 years bundled with his loan, since I'm handicap & 25$ for a hotspot plus my cellular bill with consumer cellular & My Government plan for internet there's no way I can swing it and my Sister wrote a check outta my trust! I've technically had it a little over 2 week's shouldn't they have to pay the hotspot? I brought it back and paid the rustproofing against my Sisters wishes from the $ for the totaled title on the Mercury 3,300 I believe? I wasn't going to watch this video since my Sister already paid with a check basically cash but I'm glad I did! Any advice on getting them to update the maps and navigation system & take care of the hotspot would be appreciated since nothing is working since Toyota connect navigation system entune no longer exists but they do have updated maps which I believe they uninstalled while it was there 4 days getting re detailed mud in the side pockets and the rustproofing, gosh I hope we didn't get a Florida flood car? Mud in the side pockets of a Camry door is pretty odd

  • @dmk1529
    @dmk1529 8 місяців тому +121

    Do your homework. Walk in the door and make an offer. No matter what they say, walk out. They will either chase you down or watch you walk away. There are 5000 dealerships.

    • @Nagroddy
      @Nagroddy 2 місяці тому +7

      BINGO!!

    • @garyjarvis2730
      @garyjarvis2730 Місяць тому +11

      Better yet is don't go to the dealer and do everything by email. Takes away all their power to play games with you.

    • @averagecitizen8491
      @averagecitizen8491 22 дні тому +1

      Never be afraid to get up and walk right out

  • @mfrank3518
    @mfrank3518 10 місяців тому +793

    I made my deal at Toyota and then said I was putting 20k down and financing the other 15k. Finance told my salesman (who I liked) I had no credit at all. Some crap about it wouldn’t even show up but I could borrow from them for 18%. I called my credit union and was approved in five minutes for 5%. When I picked up the vehicle the finance manager never offered his hand and ran through the paperwork as fast as he could without even offering me to buy extras. I was happy, he was not.

    • @marblox9300
      @marblox9300 10 місяців тому +28

      Yea, but buying any vehicle for $35,000 is stupid to begin with. LOL.

    • @sallyboy66
      @sallyboy66 10 місяців тому +296

      Nothing wrong with buying 35k car. Buy what u can afford. My last 2 cars were 65k each. Don't hate on people that can afford more than you

    • @marblox9300
      @marblox9300 10 місяців тому +1

      @@sallyboy66 Boy if you only knew my net worth you would feel real dumb. Can probably afford waaaay more than you but not dumb enough to blow money on stupid shit.

    • @marblox9300
      @marblox9300 10 місяців тому +1

      @@sallyboy66 < --- Finances expensive vehicles and he thinks he is smart. LOL.

    • @PlayafromtheHimalayas
      @PlayafromtheHimalayas 10 місяців тому +55

      Had a dealership try to say our credit was in the 600's some years ago and threw around a crazy interest rate. We had apps for every credit agency and pulled a report on the spot showing we had well into the 800's. They came back with some bs that they entered the wrong social security number and came back with a report with the correct rating. That was the last time I financed a vehicle. I go in now saying I'm going to trade something or I'm going to finance then, hit em with a check at the end.

  • @Sunshinecoastphotography
    @Sunshinecoastphotography 10 місяців тому +1024

    We recently had planned to buy a car at a dealership, but if I paid cash, the car would be $5K more than if I financed it. We did not want to be making payments, but they told us that they get a kickback from the finance company, so they can sell the financed car cheaper, but the contract would say that we must not pay it off before the 6 months, or we’d lose the $5K discount. They really pushed the idea of getting the financing and just paying the loan off in 6 months with no fees. To me, that was a great deal for them and an unnecessary minor hassle for us. As a result of their inability to make the deal attractive to a cash paying buyer, we walked away and found another car at a different dealership, that we paid cash for with no games.

    • @Leslie83249
      @Leslie83249 10 місяців тому +44

      I wouldn’t mind “financing and paying it off fast if they could give a great rate which I think is still high.

    • @Ryan-rn8gk
      @Ryan-rn8gk 10 місяців тому +122

      We ran into a similar situation and ended up financing the car and paying it off on the first payment.

    • @Sunshinecoastphotography
      @Sunshinecoastphotography 10 місяців тому +90

      @@Ryan-rn8gk They said we had to make payments for 6 months before we could pay it off, or we'd owe them the extra $5K. I was not willing to reward them with buying a car from them under that silly game. Their rate was not great either.

    • @Sunshinecoastphotography
      @Sunshinecoastphotography 10 місяців тому +55

      @@Leslie83249 Their rate was not great, but I refused to be roped into financing. They lost a sale from us, as we ad cash in hand, but spent it on a different car at a different dealership.

    • @Ryan-rn8gk
      @Ryan-rn8gk 10 місяців тому +20

      I don’t blame you.

  • @ogles824
    @ogles824 7 місяців тому +313

    I just helped my daughter buy her first car last year. We had prearranged financing through our credit union at a rate that was less than half what the finance manager had quoted us. They refused to sell us the car after having the deal fully negotiated. We called another dealership that had the exact same car a few miles from the first dealership and told them what was happening and they told us to come on and they’d accept our financing. That turned out to be one of the most comfortable and easy car purchases I’ve ever been involved in.

    • @blakespower
      @blakespower 7 місяців тому +15

      sounds like they were just angry! GOOD it better to go somewhere else! if they are like that. its ok for them to rip off the consumer but when you try to do it to them they get bent all out of shape

    • @anthonyxuereb792
      @anthonyxuereb792 7 місяців тому +7

      You need to practice saying it at home and hear youself to overcome any doubt or hesitancy, it does make a big difference.

    • @Voltomess
      @Voltomess 7 місяців тому +7

      ​@@blakespower No they didn't wanted to rip off the dealer because it's not possible lol , they just wanted to buy a car without being ripped too much.

    • @carljenkins5092
      @carljenkins5092 6 місяців тому +2

      Back in the recession a few years ago, my wife and I purchased a car. The interest rate wasn’t too high through capital one finance since my credit rating was so good. It was only seven point something and then I refinance it through the local credit union where I deal with interest rate is 2.9% you can’t beat that. I almost have a car paid for now. it certainly pays to belong to a credit union. They are much easier to deal with in my opinion than a namebrand bank.

    • @lazyPawdy
      @lazyPawdy 5 місяців тому +1

      Yep, always show them that you got options. Dumb for them to not even consider it.

  • @MrDuds1984
    @MrDuds1984 8 місяців тому +46

    If any finance manager doesn’t accept a full cash offer they are doing their dealership a huge disservice. It’s called cash flow which they could be investing in immediately and cash in the door now should always be a priority to any business.

    • @geographyinaction7814
      @geographyinaction7814 2 місяці тому +6

      Dealerships get paid right away, it's called being funded; it isn't the 70's...cash deals cost money.

    • @MrDuds1984
      @MrDuds1984 2 місяці тому

      @@geographyinaction7814 you can’t get funded any quicker than full cash up front

    • @ME-im3ui
      @ME-im3ui 26 днів тому +1

      Mr dud, you couldn't be any more incorrect.

  • @deanl2427
    @deanl2427 8 місяців тому +173

    Great video! In 2020 I needed a car now, and found one. The dealer played the keep them here all day so they will sign anything. I paid the cashier my deposit and when I finally got to the finance butthead, he turned out to be a shyster. I kept asking the APR and he kept avoiding it. When I bought an extended warranty but none of his other crap, the APR rate changed. He actually said, since I am buying less he can't give me the better APR. I was livid! After almost 6 hours in the dealership I was wishing I walked out. However, the next day I called my wife's credit union and they gave me an APR less than half of the dealer. They paid off the loan that day, which was the next business day from when I bought it. I also left a bad review to the manufacturer. The finance guy actually called me at work and started yelling at me! I hate being manipulated. I hope he lost all of his commissions!

    • @sammysleeves33
      @sammysleeves33 8 місяців тому +28

      If you're in the US, the practice of charging you a higher interest rate because you're buying less of their products at the finance table is called "tied selling" and is very illegal.

    • @deanl2427
      @deanl2427 8 місяців тому

      I wish I knew this back then.
      @@sammysleeves33

    • @barrybolton1396
      @barrybolton1396 7 місяців тому +6

      Weak finance managers do this. REAL finance managers can actually build value in their products with out playing these games....and yes, some of their products do have value.

    • @dh5341
      @dh5341 5 місяців тому +11

      you got suckered into an extended warranty. don't buy that until the regular warranty ends. it didn't extend anything

    • @jeffconley819
      @jeffconley819 5 місяців тому +2

      When I bought my truck I get it through the employee purchase plan for ford motor.
      Ford sets the price which in my case is 2 percent under dealer cost. The dealer is compensated by ford motor for a predetermined amount.
      As far a extended warranty goes I also pay wholesale price plus 100-200$ that goes to finance guy.
      The finance guy actually got out a book and showed me the dealerships cost price on the warranty only then did I agree to buy it . The cost was only $1100.00 on a $95000.00 truck for a 7 year 200,000 mile warranty .

  • @mrh3085
    @mrh3085 10 місяців тому +178

    This is why you should always get the OTD (Out The Door) price for the vehicle you’re interested in.

    • @trvman1
      @trvman1 9 місяців тому +17

      NEVER answer when they ask you how will you be paying till you have the PRICE for the vehicle. You know it's going to be higher if you say cash.

    • @Babyshark2469
      @Babyshark2469 6 місяців тому +5

      Yes. well said always ask for outdoor price first once u see them numbers than you can bring up a trade in never b4 and double check that paperwk very carefully because then bs add on will be on and if you don't catch them guess what that's coming out of your pocket and if that sales person or Mgr isn't willing to work with you, you go to the next dealership it's that's easy!

    • @dacripe
      @dacripe 4 місяці тому +4

      Exactly! I hate it when the salespeople ask me how much I am looking to spend per month. No, I want to know how much the vehicle is going to cost me after everything in total. They can make the monthly payment be whatever I want it to be, but I might be paying for the vehicle over a decade or more.
      You also have to watch those low APR deals like 0%. The finance managers always try to hook you with giving extra money towards the vehicle if you take a higher APR deal. It never works out unless you plan on paying off the car quickly (like paying it off the following month to a year max).

    • @TC1Z2L3
      @TC1Z2L3 4 місяці тому +9

      I need to know how much the car is going to cost before I know how I'm going to pay.

    • @buffuniballer
      @buffuniballer 4 місяці тому

      ​@@Babyshark2469 - or just drive the car until the trade is effectively worthless. My 2012 Mazda3 with 200k miles was a $900-$1500 trade.
      I didn't even bring it to the dealership other than for my first drive of the prospective vehicle. Once I decided and got a number, we came back with the bank draft in my wife's car.
      I drove my car around with a for-sale sign in the window and sold it in a week to a family with a new teen driver.
      | got 3x-4x what I'd get in trade allowance and a family got a good starter car for their kid.

  • @nicholasbaker2904
    @nicholasbaker2904 8 місяців тому +60

    Bought a mint used jetta in 2020. Dealership pulled every single scam but I wouldn't budge. Wanted me to pay $400 for nitrogen filled tires. Lol. Said I'd walk and got that for free. Tried to sell me oil change package. No. I'll take it to my mechanic that's closer. You HAVE to be willing to walk away. Know what the vehicle is really worth (kbb) and be financed thru a credit union ahead of time.

    • @norfolknwhey4787
      @norfolknwhey4787 8 місяців тому

      Use nada values, it’s what a bank will use to determine LTV. KBB is a scam designed to lower trade-in values and raise retail values.

    • @me4654
      @me4654 Місяць тому

      Is it possible to get the MSRP sticker for a 2022 Camry as long as I have the Vin # I asked my salesman and was told it wasn't something he could get? I'd like to see what the original price was and what options it came with, I'm sure there's a way

  • @brendak7781
    @brendak7781 8 місяців тому +91

    As a woman, I’ve walked off lots when no salesperson has time, even when I had the money In my pocket.

    • @944clogue
      @944clogue 5 місяців тому +4

      I as well

    • @butterflygirl2285
      @butterflygirl2285 3 місяці тому +6

      For some reason there is a built in bias towards women buying cars. I am exactly the same way. When buying a car for myself, and the salesperson tries to speak to my spouse, as if I am not there, I tell the representative to look at me, and speak with me. Sometimes, the sales person seems surprised.

    • @IaintTrynaGoOutLikeBIGnPAC
      @IaintTrynaGoOutLikeBIGnPAC 2 місяці тому +2

      ​@@butterflygirl2285That doesn't make sense as men window shop the most.

    • @oleskool4908
      @oleskool4908 2 місяці тому

      ​@@butterflygirl2285😅

    • @tiffpinson7743
      @tiffpinson7743 2 місяці тому +1

      @@IaintTrynaGoOutLikeBIGnPAC It's because women tend to be more vulnerable in the dealerships.

  • @callmefrog76
    @callmefrog76 8 місяців тому +225

    I’m not going to a dealership to be friends. 😂. I couldn’t care less about the finance managers feelings or his bottom line. Either we do business on my terms or I’m going down the road to the next guy. Great tips! Empower the buyers to be educated!!

    • @butterflygirl2285
      @butterflygirl2285 3 місяці тому +2

      Exactly.

    • @jorbedo
      @jorbedo 3 місяці тому

      I love seeing their faces when I'm the one screwing their "deals".

    • @Katrn30
      @Katrn30 Місяць тому +1

      Yeah, right on! I have enough friends!

    • @averagecitizen8491
      @averagecitizen8491 22 дні тому

      Quite a few of them wouldn't lose any sleep over marking up full commissions on their own families. They'll try to say it's a business. That's true however you give a discount to your loved ones

    • @vace8914
      @vace8914 17 днів тому

      Yup, boss up. They lie so much. They sell the financial instrument, purchase margin stock for the credit provided to you or on your behalf, get FDIC or other insurance and still want people to pay, which is like the third time they're paid, lol. Gain financial literacy or be owned by the CFOs, Finance Managers, brokers and dealers etc.

  • @CryingOrc1
    @CryingOrc1 10 місяців тому +235

    “Finance managers” are just another level of sales people. Remember, what they present you on the table is their profit center.

    • @antoniodavid2253
      @antoniodavid2253 8 місяців тому +2

      Exactly!

    • @yiehnewtamiru7324
      @yiehnewtamiru7324 7 місяців тому

      @@antoniodavid2253 the world revolves around is profit; its a job

    • @davesmith3530
      @davesmith3530 5 місяців тому +3

      There's a reason they don't have their finance degree diploma on the wall 😂 you don't even need a associates degree to be a finance manager

    • @yiehnewtamiru7324
      @yiehnewtamiru7324 5 місяців тому +2

      Yall mad that people make a living; you do know that how Yall get paid too by profit made by your company

    • @darlsbarkley3493
      @darlsbarkley3493 4 місяці тому

      ​@@yiehnewtamiru7324people who sell useful products or services usually don't need the pushy sales tactics and other bullshit that finance managers at dealerships make their money from. There's literally no reason for that job to exist.

  • @johndaniels651
    @johndaniels651 10 місяців тому +191

    I used to work for a bank.. If you really want to make the F&I guy sad, FIRST negotiate your best deal... THEN tell him "oh by the way, I'm paying cash." Lots of times they'll work you a great deal on the price, with the back end finance profits in mind.. Also (forgive me if its been said) but always (if you can) buy on the last day of the month. The dealers are desperate to unload units on the 31st because on the first, they get hit with a flooring bill for each sled still on the lot.

    • @highwayhash007
      @highwayhash007 8 місяців тому +5

      What's "sled" ? You said "for each sled still on the lot"

    • @johndaniels651
      @johndaniels651 8 місяців тому +23

      @@highwayhash007 Car dealers are very sarcastic, bitter, fussy people; and they often refer to unsold cars no one wants, as "sleds" (pejorative not literal) and if a particular dealership has lots of unsold inventory (like say Ram Trucks which has like a 787 day supply) they refer to that dealership as "a sled lot" like trying to sell sleds in the summer. Good salesmen avoid sled lots, and try their hardest to land a job at a Toyota (which has 60 day supply) or some other more popular make, because they're easier to sell. Anyway, "a sled" in dealer slang, is just a car that no one really wants.

    • @milfordcivic6755
      @milfordcivic6755 8 місяців тому +8

      I guess thats why they keep nothing on the lot except overpriced used cars

    • @TGriffiths-ve6nw
      @TGriffiths-ve6nw 8 місяців тому

      ​@@milfordcivic6755It is true that there can be a big advantage to buying at the end of the dealers month because the dealer has to refinance all of the inventory on his lot every month. He is working on borrowed money too.
      One problem though is knowing when the dealers month end is.
      They can all be different depending on their agreement with their financial lender.
      Some will be the 30th of every month while others might be the last business day of the month. Or some other date?
      If you don't know and the dealer has already refinanced the inventory yesterday you will have no advantage today.

    • @LEP021085
      @LEP021085 6 місяців тому

      @@milfordcivic6755I was thinking this as well. What dealership are they at that still has new Toyotas on the lot (not counting the monstrosity that is the bz4x)

  • @igorcvetkovic2112
    @igorcvetkovic2112 8 місяців тому +23

    ask for out the door price. pay cash, say no to extras, get the keys and drive home. best yet is get everything done over the phone, and not expose yourself to dealers tricks and waste time on their tactics

    • @arlenboyer-v9v
      @arlenboyer-v9v 5 місяців тому +2

      thats what i do never even went to the dealership got the agreed price wired the money and they delivered to me im not going to waste my time at a dealership ive had no problems with selling my old one

    • @johnringo1145
      @johnringo1145 4 місяці тому +1

      Naw lease then buy after, new car rebates could save 4-8K

    • @ttautogarages
      @ttautogarages 25 днів тому

      ​@@johnringo1145smarter

  • @michaelmccotter4293
    @michaelmccotter4293 4 місяці тому +20

    I negotiated a deal with a Salesman at the dealership. Then I went to my credit union and secured financing without the salesman knowing.
    When I returned and the salesman heard what I did he was physically ANGRY.
    I simply smiled and said my Credit Union gave me a better deal. It was very satisfying actually.😂

  • @Spaethon
    @Spaethon 10 місяців тому +182

    This should be shown to every high school student, with the final explanation, "If you want a car, use self-discipline save your money, and buy with YOUR cash."
    People who scrape money for years to make a big buy will make damn sure they're getting the best possible deal they can find. You respect the dollar amount much more when its money you already labored for.

    • @davids.9834
      @davids.9834 10 місяців тому +24

      I cant wait until the dealer model is gone. Pay cash and just drop it in my driveway, leave the title on the seat and I will register it. Take that $1000 doc fee and shove it.

    • @Lobsterman5481
      @Lobsterman5481 10 місяців тому

      💯@@davids.9834

    • @Terri-qm2th
      @Terri-qm2th 10 місяців тому

      ​@@davids.9834 I don't understand... explain.

    • @Leslie83249
      @Leslie83249 10 місяців тому +3

      I definitely wish I had this knowledge back in high school, I would have made smarter money decisions.

    • @stevedawson3863
      @stevedawson3863 10 місяців тому +2

      Well said this younger generation wants instant gratification. Make a plan and save your money!!

  • @411sponge72
    @411sponge72 5 місяців тому +74

    Back in 2010, I was looking at purchasing a new Camry. The finance manager wanted me to finance through the dealership even though I was pre approved through my local credit union. He was very adamant that I financed through them. He said he would take 6,000 off the price of the car if I went with them. I agreed and he was smiling ear to ear. What he failed to realize is I knew there was no pre payment penalty so the next week, I paid the car in full.
    I came in for an oil change soon after and he wouldn't even look at me. 😅😅

    • @dh5341
      @dh5341 5 місяців тому +7

      doesn't affect him in the least. probably didn't even recognize you. he's there just to get you in the finance office nothing more. and that tactic is well known

    • @411sponge72
      @411sponge72 5 місяців тому +6

      @dh5341 In the long run, you're right. It didn't make or break him financially but I'm just happy I got 6k off of the price of the car. 🤣

    • @brendak7781
      @brendak7781 5 місяців тому +2

      Dealerships get paid for all loans they place but only after six months. They make profits from the loans.

    • @qntainmnt
      @qntainmnt 2 місяці тому +1

      Hahahahahaha beautiful..

  • @acreguy3156
    @acreguy3156 10 місяців тому +38

    Excellent video thanks! Cars have become stupid expensive because they are overloaded with too much gimmicky crap we don't need. When a dealership looks more luxurious than a true 5-star resort, you know you're about to pay WAY too much for a piece of tin.

  • @richardsemuta1089
    @richardsemuta1089 9 місяців тому +150

    This lady could literally make a career out of sitting there with buyers at the dealership and negotiating for them.

    • @livetroy
      @livetroy 9 місяців тому +9

      Thought the same thing. She could be a consultant for car buyers

    • @rudert56
      @rudert56 8 місяців тому +13

      Eventually they would lock the doors when they saw her coming.

    • @nokosha1
      @nokosha1 5 місяців тому +5

      Yes! I was going to ask her if she would be that “friend” I would call while negotiating the deal.

    • @oceanwavesES
      @oceanwavesES 4 місяці тому

      I would hire her for a fee!

    • @beverly4702
      @beverly4702 2 місяці тому +2

      I literally was sitting here thinking that very same thing watching this video.. What the world.. why is buying a car so frustrating hard to get the vehicle you want at the best price.. sure a dealership has to have some profit to stay in business but all these back door “money makers” only to take advantage of people is insane to me. It’s hard enough in today economy to survive with rising prices and inflation affecting the market interest rates to have these unethical and deceitful money making tactics being used on people. Very frustrated as I am in the market to buy a new car soon.. uggh 🫤

  • @deys2832
    @deys2832 8 місяців тому +20

    I bought an extended warranty on my last vehicle. It was around $2,700. I changed my mind about a week after signing the contract, called the finance manager and canceled. My loan was through Wells Fargo. I went onto the WF site about 10 days later, accessed my account, and it showed a credit for the amount of the rescinded EW. My loan monthly payments were a little over $300/mn. The net result is that i didn't have to make a payment of my loan for nearly a year.

    • @chrissyscorpio
      @chrissyscorpio 6 місяців тому +2

      Because they still made money off your loan sitting there

    • @rattlecat5968
      @rattlecat5968 6 місяців тому +3

      And you still paid the interest on the money you didn't pay over that year.

  • @shilver101
    @shilver101 8 місяців тому +60

    I Just bought a car with cash couple months ago. The finance manager didn't say a thing just counted the cash we signed paperwork in and out within half an hour Loved It!

    • @hansmoleman9720
      @hansmoleman9720 8 місяців тому +3

      The less you hear from those snake oil salesmen the happier you'll be. Good job paying cash!

    • @TheHef12345
      @TheHef12345 7 місяців тому +8

      Most legit dealerships will only take a cashiers check. Very few are taking cash….

    • @WildBikerBill
      @WildBikerBill 6 місяців тому

      When it comes to large sums of money, apartment managers, car dealers, realtors, mortgage companies, banks, and the government are all much happier with checks or debit/credit cards of one variety or another. It means there is a paper trail as to where those dollars came from and orders of magnitude less likely to be drug/illegal money.
      Also, if a cop pulls you over and finds a large amount of cash on you, he can simply confiscate it. Many people have been nailed by this. It's called 'Civil Asset Forfeiture' and they don't have to charge you with anything at all to do it. Look it up.

    • @LEP021085
      @LEP021085 6 місяців тому +1

      Was this cash transaction over 10k ? because if so, I have questions if you were still able to drive off with in the half hour.

    • @MrCaw77
      @MrCaw77 5 місяців тому +2

      ​​@TheHef12345 nah most will also take debit cards

  • @matt1234link
    @matt1234link 8 місяців тому +118

    I put 6k down on a 15k vehicle. The finance manager told me I need gap insurance. I asked if he thought the vehicle wasn't worth 9k

    • @hansmoleman9720
      @hansmoleman9720 8 місяців тому

      What an @$$hole!

    • @black-square4141
      @black-square4141 8 місяців тому +3

      What did he say? XD

    • @barrybolton1396
      @barrybolton1396 7 місяців тому +15

      Selling GAP on this transaction would be unethical....

    • @spanishatown
      @spanishatown 6 місяців тому

      How does it go ? Because I’m about to do the same to a 17k vehicle

    • @sebell1000
      @sebell1000 6 місяців тому +4

      I put 6 grand down on a 30,000 4runner and he told l told me straight up that I would never need it. Then my wife totaled it and I got all my down payment back.

  • @domingoperez4258
    @domingoperez4258 6 місяців тому +46

    Kimberly is the real deal. She answered my texts in real time when I was buying my brand new 2021 Toyota 4Runner TRD Pro in Lunar Rock and had questions during the finance stage. She helped me tremendously. 😊

    • @MKB1L
      @MKB1L 6 місяців тому

      Hardo

  • @fredgarv79
    @fredgarv79 6 місяців тому +50

    First new car deal I stupidly bought an extended warranty for like $3,000, went home and realized this was crap so went back and said I want to cancel this. Oh, they were pissed! Never forgot that. But in this video she talks about paying cash and how they hate it, In every other video they say never tell them you are paying cash until either everything has been settled, you get the out the door price, then at the last minute say you want to pay cash, or...just agree to their finance terms to get the best overall price of the car, then just pay off that loan in cash within a few weeks. Because if they know you will pay cash they won't negotiate the price of the car as much

    • @AutoFinanceSense
      @AutoFinanceSense  6 місяців тому +2

      💯 I go over that in a few of my other videos 👍

    • @shepardsmith3235
      @shepardsmith3235 4 місяці тому +4

      If you dont get an extended warranty from the manufacturer you are asking for big trouble down the line when the regular warranty expires. And if you get one on the cheap from a third party company, same thing, you are asking for trouble, because they will screw you when you make a claim. Mark my words and sell the car when the extended manufacturers warranty expirees. You cant imagine the costs of repair as the car ages. Electronics are huge and can run into the tens of thousands down the line. We got rid of our X3 when the extended warranty was going to expire. BMW wanted 13,000 dollars for one more year on the extended warranty. Shows you how much confidence they have in their cars. Really.

    • @paulw508
      @paulw508 3 місяці тому

      @@AutoFinanceSense Thats when they say, "Because I like you, I'll give it to you for $1500. (Actually happened to me.When I refused the extended warranty)

    • @Tf34233
      @Tf34233 Місяць тому

      @@shepardsmith3235bruh you buy a new car to have for 20+ years. Selling it after the extended warranty ends would put you under thousands over the course of your lifetime. Treat your car good and it will treat you even better. Unfortunently old age on my 98 yoda finally having major issues so will be looking into another 😊

  • @jamesclapp6940
    @jamesclapp6940 10 місяців тому +50

    In 2017 we bought a new Chevy Impala with a base price of $36500K GM offered a flat20% discount on the vehicle. We already had a valid approved quote from Navy Federal CU at 2.69% the dealer said that it would take a week to get a check from the CU 100 miles away location they offered a 2.79% offer from Chase.(for 72 Months) WE had told the F&I person that we intended to double pay the note and be done in 3 years. We absolutely refused any of the "special coverages" that he wanted to add to the deal. we ended up cutting a check for a down payment of $6K to the dealer and paid off the car loan in 21 months! .

    • @AutoFinanceSense
      @AutoFinanceSense  10 місяців тому +2

      Excellent!! @jamesclapp6940 💪 🙌

    • @TheMajictech
      @TheMajictech 8 місяців тому +3

      The Chevy even last that long? 😅

  • @joer1678
    @joer1678 6 місяців тому +36

    Never fall in love with a car at a dealer. You can find the same car somewhere else

    • @WildBikerBill
      @WildBikerBill 6 місяців тому +8

      The greatest negotiating power the consumer has is the power to leave.

    • @AutoFinanceSense
      @AutoFinanceSense  4 місяці тому +1

      💯💥

  • @CYCO1631
    @CYCO1631 7 місяців тому +93

    Walked into a dealer two weeks ago with paperwork (Carfax, consumer reports research, advertised list price, etc.) on a car they'd taken in trade, posted for sale, but hadn't quite finished prepping. Stopped at the gas station during an extended test drive, and was paid to fuel the car... all good, exactly as expected. I 'accidently' popped the hood to look at the engine compartment... all good. Said I'd be back the next day with my wife. 24 hours later, wife test drives... all good. Dealer then asked me to talk about monthly payments, and handed me their sheet with 7k in add on's. Took my pen, crossed out their add on's, circled the asking price (which was actually below my well researched expected cost)... said... cash or check? As predicted, finance manager was less than happy with me. Salesman however was impressed, and asked if I wanted to sell Toyota's.

    • @knowone6214
      @knowone6214 4 місяці тому +4

      ROFL.....good for you

    • @crisrose521
      @crisrose521 4 місяці тому

      Did you get any of the proverbial/ nominal fees waived ? Title , tax , doc fees , etc ?

    • @CYCO1631
      @CYCO1631 4 місяці тому +1

      @@crisrose521 A bunch, but not all. There's a mandated fee by the SC State Government, and sales tax which I'd researched, and didn't ask to have taken off. Everything else I had taken off the bill.

    • @davidrosenau3136
      @davidrosenau3136 Місяць тому +1

      Salesman was just trying to impress you. He has NO authority.

  • @easternyellowjacket276
    @easternyellowjacket276 4 місяці тому +18

    Last new car I purchased, I went into the Finance office, told them don't waste your time, I don't want anything other than the car and the manufacturers warranty I've got the money for the agreed upon price. They said ok, and that was it.

  • @dtsang508
    @dtsang508 Місяць тому +9

    Awesome vid. Used all your tips at the Porsche dealership. After buying the vehicle & moving through the finance room, nobody came by to congratulate me or shake my hand when I took delivery of the car. That's how you know I got a GREAT deal!

    • @AutoFinanceSense
      @AutoFinanceSense  Місяць тому +1

      Big congrats to you! 🙌

    • @chrisfleming6560
      @chrisfleming6560 17 днів тому

      That’s also how you know you bought at a BAD DEALERSHIP!!!!!! Do you want to deal next with the service dept.

  • @robjuice1858
    @robjuice1858 9 місяців тому +25

    I bought a 2022 C8 Corvette that I was planning to pay cash for but when I looked at my investment returns I borrowed the money at 2.9 % and left my money in the investments to continue to make capital gains and dividends. Sometimes it pays to use someone else’s money !

    • @jiggidyjam
      @jiggidyjam 9 місяців тому +4

      You lost a lot of money on that vette. Ouch

    • @craigstege6376
      @craigstege6376 4 місяці тому +2

      ​@@jiggidyjamCorvettes are usually buy and holds. He is more than likely going to own it until he dies. Its a calculated loss as a result. Life's too short to drive boring cars for auto enthusiasts, its just something accepted.

    • @SonicProvocateur
      @SonicProvocateur 3 місяці тому +1

      I was going to pay cash for my Porsche but ended up using a private financier that specializes in exotics. There's a reason they put you on waiting lists for Porsche's GT products - they *REALLY* want you to go through their financing services and pay extreme markups.

  • @kenarthur6253
    @kenarthur6253 11 місяців тому +72

    Excellent video. Thank you. So sad buying a car is such a battle.

    • @AutoFinanceSense
      @AutoFinanceSense  10 місяців тому +4

      Thank YOU @kenarthur6253 and yes - it's certainly can be a battle, for sure.

  • @texaswunderkind
    @texaswunderkind 4 місяці тому +26

    My ex-girlfriend came to me really excited about getting a new Nissan Altima. She was trading in her used Honda Accord, and thought she got an amazing lease offer. It was only $349 a month or something like that. Looking over the paperwork, I saw that they subtracted the value of her trade-in from the price of the car BEFORE dividing it in half for the lease computation. In other words, the dealership STOLE half of her trade-in value. I went back to the dealership, put the entire value of the trade-in on her half of the lease, and the payment was less than $190 a month. The sales guys looked like they wanted to kill me. Then I broke up with her. On her birthday. Not a great boyfriend, only a great negotiator.

  • @brianszymanski2971
    @brianszymanski2971 6 місяців тому +34

    Never paid for a new car always bought vehicles that were used with low mileage, paid cash always. Learned a lot from watching this video. I actually enjoyed the fact that you were honest.

    • @scottleggejr
      @scottleggejr 6 місяців тому

      If you put $40-50k in to ticker ARCC, you would get a 10% return (taxed in 1099-DIV). Average auto loans are ~7% for good-to-great credit. The car is going to go down in value while the fund is going to stay relatively flat and pay yields. You've been making a financial mistake by buying cars cash.

    • @731fault
      @731fault 6 місяців тому

      The majority of people can't pay cash.

    • @brianszymanski2971
      @brianszymanski2971 4 місяці тому +1

      To live beyond what one makes is foolish , all my current vehicles were purchased 5,000 and up to 10,000. Saving money is easy when you work 40 hours plus, 7 days a week 365 days a year.

    • @viacheslavfedunov111
      @viacheslavfedunov111 3 місяці тому

      @@scottleggejryou are very wrong. For example i just bought a used lexus rx350 2021 with 38k miles for 29000. From which 10000 were coming from a credit card that will immediately give me around $1500 in points and have 0 apr for 18 months (could buy it fully cash though) The new car will always cost double from 3 years old with some mileage on it. Now, I don’t pay any interest, fees for financing and most of all pay $60 per month for the car insurance which saves me ton of money in the long term, compared to people who has to purchase full coverage.
      You gotta be smart at it

    • @scottleggejr
      @scottleggejr 3 місяці тому

      @@viacheslavfedunov111 Nothing you said invalidated my point of interest/asset. Buying cars full cash, up-front is a bad financial move. As bad as carrying gap insurance imo. Let the bank carry the float of the depreciation until it has positive equity on the float and is a positive-cash asset - although it will still depreciate.

  • @AC-kp8sp
    @AC-kp8sp 9 місяців тому +8

    Former f&I guy. Ya she pretty accurate. The reason we hated hearing "cash deal" is bc it destroys averages on per deal gross and product penetration. I've lost thousands of commission dollars in my previous career from cash deals lowering my monthly % on my total numbers. You can always negotiate all products. Finance managers would rather sale at low profit then take a zero on numbers

  • @AV84USA
    @AV84USA 9 місяців тому +28

    I canceled an auto purchase from a dealership I had previously bought three new vehicles from when I found out they had marked up my buy rate. I expected the advertised top-tier rate because I had an excellent (820) credit score and they came back with a higher rate. The finance manager did a victory lap, pretending to be excited that he got me “approved“ just glossing over the fact that I had been approved for the top tier rate, and he had added on an extra 3%!
    That was the sleaziest, most slimy, used car salesman BS I had ever encountered. What made it worse was that I never even imagined such deceptive practices.
    I have never bought another thing from that dealership, in spite of me buying that auto brand exclusively for the past 20 years.

    • @snowcrash4286
      @snowcrash4286 9 місяців тому +1

      The first time I bought a car with my own financing secured ahead of time they pulled something similar. I agreed to let them run my credit and they came back with a “better rate.” The payment was higher than I had calculated with my already secured loan. As soon as I asked them about that, they yanked the paper work back and reworked it with my own funding. I never knew how they managed to arrive at that monthly payment.

    • @charlescuthbertson709
      @charlescuthbertson709 8 місяців тому +1

      Never have I ever heard of a 3% Mark up on the buy rate. One point or a point in a half. Maybe 2 I don’t think theirs any bank that lets you markup the rate that much. You’re playing with their money. It adds risk to the bank.

    • @AV84USA
      @AV84USA 8 місяців тому

      @@charlescuthbertson709 Honestly, it seems like it was more… but I do not remember the exact amount. What I do remember was them displaying a good APR for those with excellent credit, me having excellent credit, and them coming back in the room proud of themself that they got me approved, albeit at a higher rate reserved for those with ok credit. It didn’t add up so I immediately did some digging, and when I found that I had indeed been approved for the best rate and that they had lied and tacked on an additional percentage, I was livid. I walked out and never returned.

    • @TheTankFG
      @TheTankFG 8 місяців тому +1

      @@snowcrash4286they are car salesmen… they aren’t the brightest hunch. They only know sleezebag math. I make it a game with those bozos.

    • @TGriffiths-ve6nw
      @TGriffiths-ve6nw 8 місяців тому +11

      I made a deal on a Toyota once with the salesman. It was tough negotiating but we agreed and I told him that the agreed to price was every penny that I was going to leave in his dealership and I wouldn't even buy a Coke out of his vending machine and that he had better tell his finance guy that because if he starts dicking around I would walk.
      Well the finance guy did try slipping something in and I got up from his desk and walked out and never went back.
      He killed the deal because he thought he was so smart that he could slip one by me.
      No. No sale.

  • @JamartaviusWebber
    @JamartaviusWebber 5 місяців тому +5

    Just as a general "rule of life" for me, personally, having lots of cash in savings is so much smarter than tying it up in a vehicle. I'm solidly middle class, and I don't know too many people who have at least $5k-$10k cash, in savings, for emergencies. Once you sink that much cash into a vehicle, you obviously lose the liquidity and you'll probably not get it all back if/when you sell the vehicle down the road.

  • @Wild1BillS
    @Wild1BillS 8 місяців тому +5

    This explains why when I went to buy my last truck I found my own financing had a check in hand when I went to pick my truck up. When it came time to pay up I said I want the cash back option since I already have my financing done already. They left the room for a few minutes then came back in and told me that they would give me both the 2.9 financing and the cash back.

    • @adunnio
      @adunnio 8 місяців тому

      1.5 is better. They always try to get something out of consumers even a penny. 😂

  • @1970sRacing
    @1970sRacing 10 місяців тому +59

    three simple rules
    1. never finance at the dealership (always get bank-credit union pre approval if you need financing)
    2. never purchase any additional products--you are here only for the vehicle
    3. never pay for any fee that is taxable

    • @Peye-pv4cb
      @Peye-pv4cb 10 місяців тому +3

      Yes, I went to the bank and got what was required then went to the dealer to pay cash to them, this was 12 years ago when interest was OK

    • @JeremiahAlphonsus
      @JeremiahAlphonsus 10 місяців тому +17

      Last week I got 0% financing for 5 yrs at the Mazda dealership. Should I have not done that?

    • @InfoSecGuardian
      @InfoSecGuardian 10 місяців тому +4

      Exactly right! And if you want Gap Insurance, just contact your insurance carrier. If it's one of those that doesn't offer new car replacement in first 2 years, then change Insurance carriers. Simple.

    • @AutoFinanceSense
      @AutoFinanceSense  10 місяців тому +4

      That's awesome! @JeremiahhAlphonsus 🙌

    • @mytencentsc7594
      @mytencentsc7594 10 місяців тому +2

      If the interest rates were good I would say yes. But most manufacturers are giving better interest rates for well qualified buyers.

  • @ronbrotherton1006
    @ronbrotherton1006 8 місяців тому +20

    I call the salesman with a specific vin I want to lease/buy, tell them I don’t want additional products, do not agree to meet the finance manager, provide info up front so the paperwork is ready when I get there. Get ootd pricing on the phone. If buying, I arrange financing. I usually pay leases up front - saves money. Sign papers. Need keys in hand in 30 minutes and out the door. They don’t make much money however I don’t take up much of their time. Fair trade.

  • @gilberthale7777
    @gilberthale7777 8 місяців тому +9

    Solid info, and that comes from me being in the automotive retail industry for over 45 years. What I do, with dealers I am friendly with, is let them know I cam able to pay cash, but will agreed to finance. But in 120 days I will be paaying the note off in full. Then, I get the name and address of my finance company, and the account # of my loan. I pay off all but a litle more than three payments of the balance before I even get my first payment statement, so I am not paying interest on anything other than maybe a few hundred dollars. Then for the first three payments I pay the regular amount due, which will leave off the remaining balance. And for the fourth payment I pay off the balance. The interest $ I am charged is minimal, the dealer gets his finance reserve, and the F&I rep get whatever commission with no walk backs. The folks know I understand the game,a nd am eating a few dollars in interest in trying to keep their game in play. My approach sets a nice tone with these folks, but for the credit company likely not so much.

  • @moushunter
    @moushunter 10 місяців тому +17

    I've been to 2 dealerships that will not sell a car unless it is financed through them. They don't care if you have a sack full of cash in hand. They insist on creating a loan.

    • @toddrunyon
      @toddrunyon 9 місяців тому +12

      Let them do the loan and then pay it off immediately. Just be sure to verify there isn't a pre-payment penalty in the paperwork you sign.

    • @h.t.2416
      @h.t.2416 6 місяців тому +4

      Run away.

  • @bluelightguy1
    @bluelightguy1 8 місяців тому +50

    Rule number 1 establish an out the door price before deciding on how your going to pay

    • @danettewelborn5577
      @danettewelborn5577 7 місяців тому +2

      *you're

    • @bluelightguy1
      @bluelightguy1 7 місяців тому +6

      @@danettewelborn5577 thanks dad

    • @zeusse2212
      @zeusse2212 6 місяців тому +10

      You are correct..then walk out with that price and shop it to other dealers and let them bid for your sale. I do it by email so only the winner will see me. They never get my phone number

    • @h.t.2416
      @h.t.2416 6 місяців тому

      @@danettewelborn5577Get a life.

    • @amya9597
      @amya9597 5 місяців тому +1

      @@bluelightguy1
      😂👏

  • @FullThrottle61-t6p
    @FullThrottle61-t6p 9 місяців тому +8

    The best is always cash, but not everyone is in a position to do so. Best advice is to buy 1 to 3 year old - spend some time on the internet and you can find the exact car you want. The original buyer took the biggest depreciation hit. These days, dealers mark these up to about the price of new so you have to do your research which is easy today with the internet on the true market value. If you can find an individual seller vs dealer, will be way better for you. Plus, some states do not charge sales tax if you buy from an individual. Never pay for any of the add on’s they try to sell you at closing!! Repeat, NEVER! You don’t need them and it will be way cheaper to just pay for it if you damage a wheel or something. Great video and no need to be intimidated by the finance guy, they are just another car salesman and not as smart as they try to present themselves.

    • @johnringo1145
      @johnringo1145 4 місяці тому

      Gap I would buy depending on the situation but other than that yeah

  • @stevemccooleq
    @stevemccooleq 10 місяців тому +21

    No pre payment penalty means that you can pay the loan off the next day if you wish and there is NO penalty to the borrower.

    • @thegerm574
      @thegerm574 10 місяців тому +2

      You can’t typically pay off your loan the next day because your account hasn’t been set up with the lender. This can take up to 2weeks to 30 days.

    • @Leslie83249
      @Leslie83249 10 місяців тому +1

      Are there any loan companies that have this, seems illegal.

    • @thegerm574
      @thegerm574 10 місяців тому +3

      @@Leslie83249 how that seem illegal? Some dealers send paper contracts to the lender. It takes time for the lender to receive and process the paperwork and set up an account and mail a statement If you looking to payoff a loan that fast you probably shouldn’t be taking out a loan.or didn’t need to.

    • @Leslie83249
      @Leslie83249 10 місяців тому

      @@thegerm574 stealerships are being greedy and its much worse since the pandemic. At one point, dealers were turning away cash buyers (I don't if this has changed since I hear no one is buying and they are getting desperate) forcing customers into loans.

    • @stevemccooleq
      @stevemccooleq 10 місяців тому +1

      @@thegerm574 I think that most judges or legal entities would view a contract that states "no pre payment penalty" as just that....unless there was language in the contract saying you cannot pre pay for the first 2 weeks or 30 days while administrative work was being done. If a borrower could show the judge that they were willing, able and wanting to pay the loan off right away on a contract that simply states no pre payment penalty then the borrower would be awarded back any interest or fees charged.

  • @JFreakZa12
    @JFreakZa12 4 місяці тому +6

    All of this information is very helpful. After my car purchase in 2022, I eventually determined that I was ripped off. I successfully sold that car and purchased a new car using my credit union. They were so mad. There was so much drama with this transaction but I successfully walked away with the car without dealing with the finance department.

  • @PacShore
    @PacShore 10 місяців тому +38

    I've gained plenty of knowledge between you and Car Edge Father/Son team......it's just trying to retain or recall it all whenever I get around to actually purchasing a new car!

    • @K03sport
      @K03sport 10 місяців тому +4

      put it on note cards and number them or color code them depending on the level the transaction is at...

    • @ForestToFarm
      @ForestToFarm 6 місяців тому +1

      Practice at a dealer(s) before you go to the actual dealer you want to buy from.

    • @joelthepizzawizard493
      @joelthepizzawizard493 5 місяців тому

      I may do this for my third and second choice actually. ​@@ForestToFarm

    • @GUITARTIME2024
      @GUITARTIME2024 Місяць тому

      Write on a piece of paper and scratch off each item as it comes up. 😅😅😅

  • @spinxt
    @spinxt 8 місяців тому +9

    Great things to point out, but also all things that buyers wouldn't have to worry about if they were well educated and finance managers weren't crooks in disguise.

  • @richardkawucha1232
    @richardkawucha1232 8 місяців тому +4

    When I retired, I bought/ordered a new car as a retirement gift to myself. First, I sold (as always) my old car for thousands more, than the dealer would give me for it. Secondly, I am not afraid to walk out of the dealership. Third, the dealership offered a rebate, that had a requirement to finance through them. I checked the numbers and if I paid it off early I didn't get the lower price. Did my homework and put 1/3 down when I ordered it. And the last day, of the time stipulation, paid it off totally. Saved a few hundred there.

  • @patrickstephens1203
    @patrickstephens1203 5 місяців тому +8

    Most dealerships sell reputable warranties. I am a technician, parts are outrageous and labor is no joke! We sell policies that cover your vehicle bumper to bumper for 10 years or 100,000 miles. Your extended warranty will pay for itself the first time you need it. Especially when your radio head unit is five thousand dollars, not including labor. I can repair my own vehicles, but purchase extended warranties to cover part costs. If I never use it, great - just like my car insurance. If my transmission fails, I just saved twelve thousand dollars.

    • @valerierodger
      @valerierodger 4 місяці тому +1

      That was my view with my additional warranty - it’s an insurance policy just like any other insurance policy, and it was worth it to me, even though I never used it.

    • @GUITARTIME2024
      @GUITARTIME2024 Місяць тому

      Which policy would you recommend.

  • @dr.nigelcool3771
    @dr.nigelcool3771 10 місяців тому +29

    Thanks for this video. It's a shame that we have to go through life assuming that every person we buy something from is conniving to rip us off. I am not sure how as a society we arrived at this state.

    • @danmarjenka6361
      @danmarjenka6361 10 місяців тому +2

      And it is the learning disabled and those who have bigger issues going on in their life (like a family member in the hospital, or a recent death) who get ripped off the most, because they don't have the brain power or energy to defend themselves. I agree there is always room for better ethics.

    • @RichardHarlos
      @RichardHarlos 10 місяців тому

      dr, wrote, _"I am not sure how as a society we arrived at this state."_
      The simple answer is 'capitalism'. People often bristle when I mention this but it's pretty obvious to anyone who dares to take a careful look at the point.
      Prices are arbitrary. They're based on 'what the market will bear', rather than on anything remotely related to 'how much it costs to manufacture'. When people are doing well financially, it's the legal responsibility of corporations to maximize profits for their shareholders. Let that sink in: it's their **legal responsibility** to maximize profits.
      So, the car may cost the same, but if everyone's swimming in disposable income, and willing to spend it, then corporations have a *legal responsibility* to 'game' for some of that money. Not because their product or service is 'worth' it, but because they're obligated to maximize profit.
      In essence, a capitalism-based economy requires -- yes, it **requires** -- infinite growth. So as long as one lives and transacts in such a society, those on the selling end of the transaction will alway be looking for ways to extract the maximum amount of profit from the buyer. If this doesn't sit well with you, I understand that feeling. It doesn't sit well with me, either. But, that's how it goes.

    • @tmo4330
      @tmo4330 9 місяців тому +1

      Let the buyer beware.

    • @WildBikerBill
      @WildBikerBill 6 місяців тому

      @@tmo4330 Caveat emptor

  • @incredibleshrinkingfungus1731
    @incredibleshrinkingfungus1731 10 місяців тому +7

    My seven things that I know are: the invoice price, dealer holdback, whether the dealer floorplans or not (almost always yes), the residuals at 36/39/48 months, the lease factor, how long the dealer has had the vehicle in inventory, and my state doc fees. I have a little folded piece of paper I consult in my pocket that they see me reading but can't see what's on it. Drives the sales people crazy. Another thing the dealer absolutely despises is when I'm walking out or terminate an e-mail exchange because of an inflated price, BS or both, I say bluntly "I can't afford this vehicle." Emphasis is not on afford but rather THIS VEHICLE! "I'm not going to waste any more of my or YOUR valuable time." What are the first words out of a dealer's mouth -- what if we could lower your payment or we have this other vehicle which is cheaper.

  • @rafaelm.2056
    @rafaelm.2056 10 місяців тому +13

    I bought a niche car where only 10,000 were sold for that model year. Because it was so unique I paid sticker price because the dealer would not have budged on the price anyway. In the finance office the guy tried to sell me on wheel protection and a extended warranty. I told him that I never buy extended warranties because if something is going to happen then it will happen during the warranty period, plus I been screwed in the past by warranty companies. I also told him that the savings of not buying an extended warranty over the last 20 years means I can afford to take a hit if I have to shell out a few thousand dollars on a repair and still be ahead. I handed over the check from the bank and it was a done deal.

    • @meatball6930
      @meatball6930 8 місяців тому

      Ummm 10,000 of a vehicle is a lot bro. That’s not rare and special. I have 1 vehicle that only has 500. Another one has 3000 made and 5000 on my 3rd vehicle. Not too many companies sell more than 10,000 of a vehicle. Somebody has fooled you with that number. Just think first example there were only 3000 2019 ZR1 corvettes made and it’s not considered a limited run. If your car is numbered with a plague it’s not special and even some are numbered and 2000 were made and they’re not considered special it’s just the manufacturer who tried to make it feel special to try and sell for more but it only has a sticker package that makes it different from their other exact model.

  • @17713bb
    @17713bb 10 місяців тому +10

    I just go through the process, decline all the options. Then, circle back with my credit union which buys out the financing and I get a great rate. Currently paying just a bit more than my mortgage rate, 3% something.

  • @kevinhamilton6256
    @kevinhamilton6256 9 місяців тому +9

    #7 (late mofel used) they hate it when you say "NO" to buying an "EXTENDED WARRANTY"...even though the dealership WON'T HONOR that "extended warranty"!!!
    Because they get a kick back for selling that warranty! About half the price to you.

  • @kaiorafael429
    @kaiorafael429 6 місяців тому +4

    Ask from finance folks: what is the buyer and seller rate? You will see their spirit leaving their bodies. As newcomer to this country. I used Kimberly tactics and avoid getting 18% interest rate. They told me I would never get anything lower than that as I had no credit history. Went to my credit union, got a 9% offer, instead. For new people coming to this great country, sometimes it’s not that easy to simple say no, but one must learn the tricks to reduce massive loss.

  • @Steve_in_NJ
    @Steve_in_NJ 10 місяців тому +14

    I've found in the past (I always lease my vehicles, since 2001) that dealers add "port installed" options like mud guards and roof racks that I don't want and when I tell them I won't pay for it, they say you have to, it's on the car already. I'll be more aggressive when I order my 2024 crossover, as unlike 2021 (pandemic), I will have a choice of vehicles and manufacturers this time! Also, my husband always accompanies me to the dealership; he's a CFO and has a MBA in Accounting and Finance, so I trust his knowledge and math skills. He can also add big numbers in his head and works with multi-million dollar budgets, so he knows a thing or two about wasteful costs and bloated profits.

    • @AutoFinanceSense
      @AutoFinanceSense  10 місяців тому +1

      In the southeast, certain dealers are adding options at the port so they go on to the monroney label (sticker) on their lot. It's sneaky!! Sounds like you're on the right track 👍

    • @xtnuser5338
      @xtnuser5338 9 місяців тому +4

      "When I tell them I won't pay for it, they say you have to, it's on the car already."
      If you fall for that line, you lost the negotiation. You don't HAVE to pay for any of their dealer add on crap. The "it's already on the car" thing might be true in some cases, but it's a negotiation tactic all the same.
      I have told a Porsche dealership that I won't buy the car at all unless they take off the stupid "anti-theft" device they added. They wanted $1200 for it, and of course the car already has a factory alarm. I'm pretty damn sure an installation tech comes around to their dealership on a weekly basis, puts one on every car they have on the lot, and charges them $45 each. I made them call the tech, make a special trip to the dealership, and remove it in my presence. It was under the hood and simply unplugged...no wires cut. Also declined all the other crap they tried to push.
      I have told a Honda dealership that I won't buy the wheel lug locks, and in fact I won't buy the car with them in place. They argued they had already spent $380 adding them to the car. I walked back to their parts department and found out a set of them was $19. They put the standard issue lug nuts back on in my presence and it took them six minutes. $380 my ass. Also declined all the other crap they tried to push. One of the items was pen stripes, which they said were hand painted by a specialist. Really? The exact same stripes are on the car pictured on the Honda USA website, and they are clearly stickers that are under the factory clear coat. They wanted $250 for those. $250 my ass. They didn't even do anything for those except make up their pen stripe paint specialist story.
      I've been doing this for years. Never owning less than eight cars at any one time, and NEVER pay for ANY of that crap. Yeah, it's an annoying negotiation fight, but it's worth it. Actually I've gotten used to it, and it's kinda fun to see what bullshit argument they'll come up with next to support the outrageous prices they ask for those things.
      It's best not to bring any of this up until after you've spent a couple hours at the dealership. Test driving, making the salesman tell you all about the car, letting them bring you cokes or whatever. Don't bring it up until the final moments of negotiations. This way they've invested a fair amount of time on you and got their hopes up. And if they let you walk out it's all wasted.

  • @Sandman60077
    @Sandman60077 9 місяців тому +20

    Just to add to the "phone a friend" part. Make sure you let the friend know ahead of time that you might call for advice and around what time you might be calling. Don't just cold call someone and put them on the spot when you're looking for important financial advice.

  • @peterhess2610
    @peterhess2610 6 місяців тому +3

    The most important thing I’ve learned after spending countless hours at a dealer with them trying every trick in the book they have to rip me off is never give them your license or keys. You’ll be held hostage until you’re worn down to the point you’ll sign anything they put in front of you. The last time that happened to me I told the sales person either give me back my stuff or I’m calling 911. Amazing how my stuff reappeared.

  • @housingbubbleboy3466
    @housingbubbleboy3466 10 місяців тому +23

    I love these videos! I couldn’t give a sh!t what the finance manager hates hearing! I hate sitting in that room as they try shake me down for every useless option! My next car will be through a subscription I hope subscriptions kills the dealership! I bought a warranty for my last car. Whenever I bring my car in “it’s not under warranty” I ask for the manager & “the service manager put in the wrong code, of course it’s covered!” 🙄

    • @AutoFinanceSense
      @AutoFinanceSense  10 місяців тому

      I like the subscription model!

    • @steverichdrummr
      @steverichdrummr 10 місяців тому

      When they try to sell me an extended warranty, I tell them I buy right now when they give me a list of everything that ISN'T covered.

    • @cashcowcommissions6790
      @cashcowcommissions6790 8 місяців тому +2

      @@steverichdrummrdude, read what you wrote and try to make
      Sense of it, because, I can’t!
      What are you TRYING to say?

  • @epi2045
    @epi2045 10 місяців тому +9

    Having owned a two car lots, never had a F&I person. Wish I had one because I hated the finance part just like my customers.

  • @oasisfullfilled7617
    @oasisfullfilled7617 8 місяців тому +13

    I just recently bought a car. I have bought 3 cars through Capital One. When I went in I say I will purchase a car through Capital One and no one else. They wanted me to go with someone else, they were like Get a better rate. I know Capital One and they are awesome. When I finally get to the finance manager he was trying to sell me a warranty. I got it and realize when I ask how do I use the warranty. He was hemming and hawing. He wouldn’t cancel it. I called the warranty company myself to cancel. When you already have approval from the bank and you are not desperate

  • @kenhoward3512
    @kenhoward3512 10 місяців тому +10

    After all the bad experiences I've had with different car brands and dealers, I don't care what "deal" they're offering, I'm paying as much cash as I'm comfortable with and getting a loan for the balance from my credit union. The less I deal with anyone at a car dealership, the better; they are vastly more experienced at having an advantage over the average, only once-every-so-many-years buyer.

  • @lordxenu2487
    @lordxenu2487 Місяць тому +2

    It’s simple…pass on all of the garbage add-ons dealers try to push on you. You can get MUCH better products cheaper through the aftermarket.
    Once I purchase a vehicle, I NEVER want to step foot back in the dealership again…I don’t care if I get free oil changes.

  • @milfordcivic6755
    @milfordcivic6755 5 місяців тому +3

    I bought a new Ridgeline in May. I had a low mileage trade, $10k down and my credit score was 805. I knew what I wanted to pay. Got it for $2k under invoice and $11k for the old car

  • @mrdeeks-s1n
    @mrdeeks-s1n 4 місяці тому +4

    dealerships don't sell cars they are loan originators. show me an extended warranty that extends the manufacturers warranty....you can't. if you think you need more warranty wait until the manuf warranty is near the end. they're going to send you offers in the mail

  • @blackhillsrider2626
    @blackhillsrider2626 10 місяців тому +8

    Know the out the door price. Dont pay for taxable addons. Pay cash and if all else fails walk.

  • @Kay0Bot
    @Kay0Bot 2 місяці тому +3

    Being able to buy in cash or have a loan already in place saves so much time !

  • @Vigilant-Citizen
    @Vigilant-Citizen 6 місяців тому +4

    Excellent video breakdown of how F&I departments work at dealerships, Kimberly. You are 100% spot on!

  • @brucethecurmudgeon8538
    @brucethecurmudgeon8538 10 місяців тому +8

    I have NEVER seen a offered "product" in the F&I office that was a true useful and fairly priced advantage to a consumer.

    • @carolynlong4999
      @carolynlong4999 6 місяців тому +1

      Here In Louisiana our roads are horrible, so the tire, wheel and key fob protection plan is well worth it when they repair or replace your tires and wheels for 5 years unlimited miles

    • @middleburg11
      @middleburg11 4 місяці тому

      Depends some are worth it..

  • @BCNeil
    @BCNeil 2 місяці тому +3

    I was buying a car. They offered me 18% interest. I said I am paying cash. She told me I would be better off investing that money. I said earning 18% long term after income tax isn't reasonable. She pretended not to understand that concept. I bought private.

  • @Retiredmco
    @Retiredmco 10 місяців тому +3

    Absolutely agree Kimberly on pitting one dealer against other on cost of products. 4 months ago purchased 2023 Hyundai sonata limited CPO with cash only. The selling dealership price for a 10 year wrap VSC was $1900. They originally wanted $2900. But i used car edge vsc against them. Once i was back home in Tennessee. I purchased car in PA due to so many Hyundai dealerships near me played games with OTD price. So im F & I manger of dealership near me. He says $1700 for same VSC. Immediately call the F&I i purchased the VSC from and put him on speaker phone. After back forth got it down to $1450 from dealership i purchased. Dealership i was in only down to $1578. Yes i was well within 60 days to void. So saved $450 by using this technique. Thanks again Kimberly for all you do.🎉 Frank from TENNESSEE

  • @joseromanavila6194
    @joseromanavila6194 8 місяців тому +3

    And dont feel bad for sales guys loosing anything...they get so many kick backs from banks and other financial companies they always win, besides their expense account that most of the time is used personally...

  • @RandomGuy-j8t
    @RandomGuy-j8t 10 місяців тому +4

    Yeah...saying you're calling a friend for advice is great...this will sicken them. Also...be in NO hurry...they hate when you are like "let me think about it overnight" - LOL
    I've had sales people say stuff like 'someone else is interested, so it might be sold if you don't jump on it now' - I always advise them to go ahead and sell it then, because I can find another car LOL - They HATE that - They want you to be emotionally invested in the vehicle, or really need to buy soon.
    Best to be indifferent to the vehicle, and especially to buying ANYTHING...'just thinking about it' - Now YOU'RE in the driving seat - if you love the vehicle, THEY are driving the deal

    • @grgygantz6760
      @grgygantz6760 9 місяців тому

      I have used all of those myself. I am in no hurry to buy today. I’ve got all the Time in the world. I don’t know. I don’t really care for the color but maybe I could live with it. I don’t know if it’s gonna fit in my garage. They always say to someone else is interested. I always tell great sell it to them and then they default on the payments called me. They hate that.

  • @mommaoinnh2674
    @mommaoinnh2674 8 місяців тому +2

    I’m 67 and I buy my (still under warranty) used Volvo from sellers, not dealerships. Never knew they add on junk. I use my credit union to make a $300/ mo payment.

  • @stargazer57813
    @stargazer57813 10 місяців тому +7

    I guess finance managers hate me because I buy cars with cash. Always ask for the out the door price and dont tell them how your are paying until you get this number. That way, they cant change the price once they find out that you are buying with cash.

  • @mk8530
    @mk8530 8 місяців тому +2

    1. Paying Cash
    2. Phone a Friend
    3. Large Down Payment
    4. I'm all already got Finance
    5. I'll take my time
    6. I changed these things or I don't want something you left

  • @co3g921
    @co3g921 10 місяців тому +6

    Best advice ever for new car buyers. Kimberly is the real deal and a must follow.

  • @pigxstix
    @pigxstix 8 місяців тому +5

    I didn't even know you could cancel products like warranties after the fact, I thought it was part of the legal contract made at the time you signed docs and bought the car.

  • @boedilllard5952
    @boedilllard5952 3 місяці тому +3

    I think they hate it most when I say this is too much trouble. I'm just going to the dealership down the street. Thanks for your time.

  • @davidgapp1457
    @davidgapp1457 4 місяці тому +2

    I do buy extended warranty and servicing because in the past it has served me well. On a $51K car, it came to around $3,500 combined (Toyota) and given how sophisticated the mechanics are (it's a hybrid PHEV) you are at risk of severe out-of-warranty bills. In the past it has served me well, but be aware that in many cases you can bargain-down the price. These days I pay cash, always, but in the past, when I was poor, I used my Credit Union as they offered the best rates. I hate going to dealers, but as I tend to buy rather exotic (aka halo) cars or unusual models (Rav4 Prime), I consider it a win if I buy at sticker price. My goal, buying a car, is to be in-and-out within two hours, everything signed, with the car ready for pickup in the afternoon or next day. My overriding advice to all car buyers is this: be entirely ready to walk out if it isn't going your way 100%.

  • @teekay_1
    @teekay_1 8 місяців тому +2

    Always go to your local credit union first. Most will let you just join these days. Then you show up with the deal from your credit union, and unless they offer an amazing deal from their lenders, you tell them you'll be back with the check tomorrow, and have the car ready.

    • @RosettaStoned462
      @RosettaStoned462 Місяць тому

      Most credit unions are on something called CUDL and they can actually find your pre-approval at the dealer as long as that credit union participates in the CUDl program.

  • @leerubin4303
    @leerubin4303 2 місяці тому +2

    Thanks, going tomorrow to buy a used car. Not looking forward to it at all. I hate sales BS. I smell it a mile away. My statement on financing is usually, "As a member of X Credit Union, I would give you an opportunity to beat their rate, AFTER we talk price." This helped me prep.

  • @allan9603
    @allan9603 2 місяці тому +6

    Also, NEVER tell the dealer how you will pay for a car UNTIL you come to an agreement.

  • @Ihaveseenthings577
    @Ihaveseenthings577 8 місяців тому +1

    This is for the Toyota Buyers, If you are offered the PPF " Paint Protection Film" they offer to protect the paint, don't fall for that purchase...that only last 3 years and will cost you 600dllrs. It's a very bad decision. Do it outside from the dealership with a 10 year warranty....

  • @Robcadams1974
    @Robcadams1974 10 місяців тому +3

    Don't buy a product if you're not 100% certain you want it.
    I had a situation where I bought a warranty because I was exhausted and wanted to get out of the finance office, and I could not get the F&I guy to return my call. Eventually I had to call the warranty company to cancel.

  • @kelsycunningham8452
    @kelsycunningham8452 8 місяців тому +5

    The Golden Rule.
    You as a purchaser have ALL the gold. Just say no.

  • @DrunkenRhinoceros
    @DrunkenRhinoceros 10 місяців тому +11

    Car Edge is a business model to sell prenegotiated deals at a profit, as well as finance products. Zack understands how social media can influence people.

    • @tiktokjourney8472
      @tiktokjourney8472 10 місяців тому +5

      That is why he pushes all that stuff so hard. Ray knows the money is made in the F&I office, so Zach is trying to be the F&I office without having to sell cars. At best, most of these products are about covering up that people are massively upside down and overleveraged in the car loan. The rest are just flat-out scams.

    • @bad_vaporizer
      @bad_vaporizer 10 місяців тому +4

      I have more of a problem that Zachs dad used to be a car sales manager and have probably pulled the same tricks on others. Now that he's done, he's telling us some of the tricks.

    • @BDBD16
      @BDBD16 10 місяців тому +4

      @@bad_vaporizer Whats wrong with that? I'd rather they snitch on the industry than continue to support sheisters.

    • @bad_vaporizer
      @bad_vaporizer 10 місяців тому +4

      @BDBD16 the problem is that now that he's had his fill he's now using the knowledge to help monetize what he can for his son. To each their own. I'll get my info elsewhere but you do what makes you happy sir.

    • @GiveThx4Him
      @GiveThx4Him 10 місяців тому +2

      The homework guy is my go-to!

  • @MrLoungist
    @MrLoungist 10 місяців тому +8

    Another useful video. Despite all I have learned from car edge and you, and the fact that the prices are finally coming down to a more sensible point, I’m still staying out of the market because I’m saving somewhere in the neighborhood of $8400 a year by not buying a car. That makes it really hard to pull the trigger.

    • @HardWorkingKat
      @HardWorkingKat 10 місяців тому +3

      I’m of the same mindset as you. I couldn’t agree more. I just think of all that money I got retain every month that passes by with no car payment. I then dump it into more stocks instead and smile into the next month.

  • @nancienordwick4169
    @nancienordwick4169 6 місяців тому +8

    Seems to me the employees pay should be based on a salary and not sales. That would be much more ethical for the entire industry.

    • @AutoFinanceSense
      @AutoFinanceSense  6 місяців тому +1

      💯💥

    • @axelgarcia-holweger1858
      @axelgarcia-holweger1858 6 місяців тому +2

      The root of the problem isn’t the employees or even the dealerships. It’s the government which forces this system onto us. The car manufacturers lobbied the government to create dealerships.

    • @WildBikerBill
      @WildBikerBill 6 місяців тому +1

      Almost regardless of industry, sales lives on commission. Whether it's selling vehicles to the consumer, or selling hardware to Home Depot, software to Uncle Sam, etc.
      No sales, no commission, no life.
      And the salesforce turnover rate in vehicle sales is pretty high. Go back in a year or two and it's likely most faces will be new.

  • @nan5715
    @nan5715 8 місяців тому +3

    No I don’t need scotchguard and clear film for $1000…no no no no, where do I sign.

  • @drsysop
    @drsysop 10 місяців тому +3

    I normally lease my vehicles & GAP is automatically included. Dealers not make to much on leases. Only downfall no more $0 down $199 lease deals on Civic, Corolla etc. like they use to have & you need to put hefty down payment to get that price & not worth it.

  • @Funkydood
    @Funkydood 8 місяців тому +13

    NEVER say "I'm paying cash! to a Finance Manager OR car salesman!!!

  • @trevorb5557
    @trevorb5557 10 місяців тому +8

    Just bought a Hyundai 2 weeks ago with 0% financing. Not sure if the finance manager was overbooked for the day or short staffed but he rushed right through everything and did not push for any additional products. I was prepared to say no no no, but didn’t even get the opportunity. Lol

    • @bigdog4574
      @bigdog4574 10 місяців тому +5

      It’s a Hyundai… they’re just happy to make a sale!

    • @vincentvanderbilt5598
      @vincentvanderbilt5598 10 місяців тому +2

      Which hyundai dealership that is offering 0% financing? And does it apply to all hyundai vehicles?

    • @trevorb5557
      @trevorb5557 10 місяців тому

      @@vincentvanderbilt5598 it was a manufacturers promotion during the month of December.

    • @NickChemist-yf6oj
      @NickChemist-yf6oj 9 місяців тому +1

      Of all the cars available and you choose a Hyundai ? 🤣 you got hosed no matter what you paid for it

    • @trevorb5557
      @trevorb5557 9 місяців тому +1

      @@NickChemist-yf6oj it’s my 3rd Hyundai in 30 years. Buy a new one every ten years when the old hits 150k plus miles. Until they give me a reason not to buy them, I’ll keep coming back. Started with an Accent, then a Sonata and now a Santa Fe.

  • @watagump1
    @watagump1 8 місяців тому +2

    Took me 4 hours to buy a used car in Oct, paid in cash. The good ole finance manager tried to add 13k in junk. Its funny how they sell the cars with no haggling, yet try and jack up the prices so absurdly high. I spent over 51k with taxes and they tried to make it over 60k.

  • @couryrussell7653
    @couryrussell7653 9 місяців тому +5

    Hey Kimberly, I recognized you from car edge and am very grateful for the clear and concise information you’re sharing. I’m getting ready to buy a new yo me vehicle and there’s been so much I didn’t know before starting my binging of informative videos such as yours. Much appreciated and love from AZ :)

  • @Miranda3730
    @Miranda3730 2 місяці тому +1

    A dealership did it once to us and lied to about financing thru our credit union! After that for our next 4 vehicles, we have walked into a dealership with a credit union check in hand!

  • @xentaatnex8261
    @xentaatnex8261 8 місяців тому +4

    If you have the cash, why not take the loan and then pay off a finance loan before the first payment is due?

    • @JohnAvery-wc3zb
      @JohnAvery-wc3zb 7 місяців тому +2

      Because once you sign there are usually penalties for early pay off. Read the fine print.

  • @arrozconmgtow5026
    @arrozconmgtow5026 8 місяців тому +2

    I've learned that the only time GAP is beneficial is when the purchaser has gotten a really bad deal which should be avoided. If you're not getting the deal you want, use your feet and walk off the lot. You should never absolutely have to purchase gap coverage.

    • @beatrixbrennan1545
      @beatrixbrennan1545 8 місяців тому +3

      I'm going to venture to say that 90% of purchasers are upside down on their car loans. They owe more than what the car is worth thus need to be able to cover that middle ground that the insurance won't in the event of a total loss. Please don't listen to anyone that says you shouldn't get GAP. Through your own insurance is like $10 a month and it will pay off THOUSANDS you would otherwise be liable for. The only reason you shouldn't need to get GAP is if you put a huge chunk of money down. Most people can't afford to.

    • @RosettaStoned462
      @RosettaStoned462 Місяць тому

      It's beneficial if your LTV is higher than 70% for the most part.

  • @beachbum77762
    @beachbum77762 10 місяців тому +9

    Don't ever by GAP or any other stupid products. It's better to pay cash, but if you do have to finance get the lowest rate possible with your credit union or other institution. Never believe what a finance manager says!!! Also, don't ever tell them you are paying cash until you have made a deal. You'll get the best price if they don't know you are paying cash.

    • @BB-sc1jv
      @BB-sc1jv 9 місяців тому +1

      Wow! Glad my niece didn’t read and use this poor advice. She totaled her car and owed $6500 after insurance settlement. This after paying $2500 down and purchasing at a deep discount. Gap paid the balance.

    • @beachbum77762
      @beachbum77762 9 місяців тому +1

      @@BB-sc1jv, Just because it worked out one time, doesn't mean it's a good idea. It only works out when you owe more than the car is worth and you should never be in a car loan it you owe more than the car is worth. It's just dumb.

    • @BB-sc1jv
      @BB-sc1jv 9 місяців тому

      True, but not everyone is in your financial position. My niece paid as much cash down as she could without completely draining her savings. She needed transportation for her job. Waiting to save more to pay more down was not an option for her. She also chose 72 months which I don't recommend, but again, she had to have transportation and stay within her budget. Some people can self insure because they have the financial means to do so. I'd say the majority aren't in that situation. What makes a sound financial decision for you may be a poor decision for another.@@beachbum77762

  • @steves7716
    @steves7716 4 місяці тому +2

    No one is obligated to purchase all the extras. Get them if you want, but you do not have to buy them regardless of how aggravated the finance manger is. It's my money, and I will choose what I want to spend it on.