Never negotiate at the dealer. Research the vehicle. Calculate a discount based on market data and include the factory holdback. Add in tax and plate fees. Request the vehicle sticker so you know exactly how the car is optioned. Call the dealer/sales person back and ask them if they are interested in selling a car today. Give them your best OTD offer and tell them they have 10 minutes to call you back. Handle financing outside this purchase negotiations. They will call you back and try to tell you that can’t do you offer. Thank them and state that if they change their mind to call you back today. Your offer is only good for today. Hang up and go to lunch. I promise you they will call you back and accept your offer on OTD. You can then discuss financing and compare that to your local bank or credit union. I have purchase 6 cars this way and it works. Enjoy!
I have no ideas how dealers work these days, it's probably been about 8 years since I bought a car last. But, what I used to do is just get a spreadsheet of local dealers, even ones a state over, and contacting (usually via email) their internet sales dept. I'd tell them exactly the model, trim, colors I was looking for and ask for their best OTD price. I'd usually hear back from about half of them, and some would be lower than others. I'd take the top few and see if they could beat the price of the lowest dealer. I'd take the lowest price and then go in and talk to them, with intent to buy. I'd always go in with an approved car loan in hand from an outside lender, and in both cases the dealer was able to beat the rate. The only negotiation would be with the trade-in. Since our cars were usually well used, there wasn't a ton of negotiation there. If I didn't necessarily like the trade in price, I'd have them throw in some all weather mats or something similar to kind of balance it out a little. To me, this saved a ton of time and ensured that I had the price I was comfortable with before even stepping into the dealership.
As someone who works for a dealer, we wouldn't call you back if you did that here. I have no reason to try and decieve anyone in this thread I have no chance of selling any of you a car. I'm simply giving you feedback. I would like to actually help all of you be able to negotiate better. It would make both of our jobs easier if there was a mutual understanding between salesmen and consumer of what to expect.
This video saved me $5000! Specifically I refused to tell the agent what my “monthly payment goal” was and kept telling them I know my budget and I am not concerned about the monthly payment. I just wanted to pay for the car, the legal car registration fees, and none of the fluff. I was firm the whole time and got what I wanted!
Good salespeople take that information and show you what you can afford with what you say. I don’t get why this process has to be so complicated for the salesman and for the customer. Guys that go in there and haggle like this usually end up getting ran out the door and FINALLY find success after shopping for weeks.
Thank you very much for this video. I am not a good negotiator and had to buy my first car. Watched several of your videos. I walked into the dealership, had a test drive, and then they put a ridiculous number in front of me. I shook my head and said I was not interested in add-ons. The manager "graciously" knocked off part of the price of the "mandatory" add-ons. I said I'm looking for x price and I would check other dealers. They said this was the best price any dealer would give me. I said I'd check with other dealers anyway and get ready to walk out. Suddenly they said, "wait wait wait"! I held firm on the price I wanted, and after some back and forth they magically brought out a paper with the price I wanted. This video saved me $4,000. Thank you so much.
I'm really pleased to see your videos, they are mostly common sense, but common sense I've come to after 45+ years of going thru the hell of buying from dealerships. The whole "out the door" concept is what I came to focus on after letting salesman intimidate me/wife over several new car purchases. I love to hear your phrases used that I used as well - "Let me relieve you of that last year model", "I don't care about the payment, tell me the total cost", "Give me a loan rate lower than my bank". The last sales guy threw up his hands and came back with the (good) deal I got on my last purchase after I stood up and started to walk away when he insulted me with MSRP, telling me he was ready to give me a great deal. Bottom line, a little education goes a long way to getting a reasonable deal.
Even when I thought I was getting a deal I was ripped off. I’ve been ripped off for decades. Buying used=ripped off, buying new ripped off, car repairs=ripped off. I did extensive research still got ripped off. Now I take the train, not bc I can’t afford a car but out of spite.
I was able to negotiate what would have been a 43K OTD deal down to 38K thanks to you all. Negotiated a hair under MSRP thanks to everything I’ve been learning from you all! I’ve watched literally every single scenario scene y’all have done and I was able to also away from a 63K golf r that was marked up way too high. Pushed as far as I could with the FM to no avail. Found a dealer that didn’t do markups and I’m at home happy with my 40th Anniversary Golf GTI thanks to your work. THANK YOU
What I appreciated most about this conversation is the way that he showed us how to avoid the whole 'what's your payment?' conversation. I like the idea of forcing them to make the first offer and keeping the focus on the OTD price. My main worry is that most of the cars I am looking at fall in that 'low inventory/high demand' category. How do you steer the conversation in that situation? Since you can't necessarily say 'I know there's plenty of inventory' without looking like you're full of it, how do you still negotiate? Or do you have to accept some defeat in that situation?
There's really not much you can do in that situation unfortunately. Dealers like mine when we have a vehicle that is low inventory high in demand, (For mine its Ram ProMaster 2500 Cargo Vans) we can't really justify lowering the price. In our case with the ProMasters, we get calls from commercial businesses daily asking about availability, some of them even trying to buy multiple units but we only get them so often. For us to come down on price on something like that would't be a great business move when we can have another buyer who will pay full price tomorrow or even later that day. It really depends how high in demand it really is.
@@DantesCarTours I bought a Volvo years ago that was in fairly high demand. I had researched the price I should get. I got the dealer to make the first offer, and it was substantially below what my research had suggested. After buying the car, the salesman told me that because it was the end of the quarter, the dealer would qualify for factory incentives on every sale in the quarter if they sold a few more cars that afternoon. So the dealer might have been looking at $20,000 or more in factory incentives if he sold three cars in three hours. So they made offers you couldn't refuse! I got lucky in this case, but spending time with salespeople and learning about factory incentives has been part of my playbook every since.
I watched a few of these videos before going in to negotiate on a 2023 ford bronco sport big bend and managed to get the price from $42k to $32k (all after taxes, which i know is MSRP range, but they're not going any cheaper in my area unfortunately due to the high demand) and got my APR rating down 8%. Really appreciate this informative channel and just wanted to let you all know you're helping people!
@@fv5267 about 2 weeks ago brand new GMC Sierra pro. GM had a special going on not sure if they still do but you get 2.9 percent with 60 months financing if you want to finance for more time it goes up to 4 percent which still isn’t bad. We do have a credit score of 780 not sure if that helps and we only put 2500 down. Our payments are about 760 a month though.
Zach, Love theses videos, can't get enough of them. Your Pop is the gift that keeps on giving. My favorite line at the dealership always is, " If you get the price right, the payments will work themselves out"
A lot of good advice in here. Before I bought my first new car 35 years ago (Acura Integra) I read a book called "How to Buy Your New Car for a Rock Bottom Price". A lot of the advice was similar, but there was one useful point I'll always remember: be nice to the salesperson, he/she is a person with feelings too, and, like all of us, wants to think of himself as a good person. I see that Ray in this video follows that rule quite well. "Thank you for considering my payment. Thank you for your hard work with the manager" etc. Also, key to remember, you as a customer have money. That is your ultimate power. If you tell the salesperson "at XX price I will write you a check right now", that is exactly what they want to hear.
Recently was in a Nissan dealership. They had a discounted NEW car that I drove, but they refused to give me any price on THAT car. I was floored. Kept giving me other cars with higher prices. Would NOT give me a price on the car I actually wanted AND test drove. I even made sure the stock number matched their online price for that stock and had one manager confirm but the sales manager kept bringing me other deals. Ludicrous! I was willing to walk out with the car, but ended up just walking out.
Remember that they want to sell you the car so YOU have the leverage in the negotiation. (Assuming you already have a car, if you don’t, and they know that, they know you NEED the car and there goes your leverage) What worked for me after some minor negotiations ultimately came to me saying “I don’t need this car, I want it, but I don’t need it. 34 scares me, 33 doesn’t. If you can’t do 33, then I’m not gunna be upset to not spend 33 thousand dollars today” while confidentially saying it and maintaining eye contact. And they’ll know that’s all you’re doing, period. Worked for me on my 2022 wrx 😎good luck y’all!
In 2015 I bought a new car for 25% off MSRP, the MSRP was 32k. I recently made an offer on a used car, listed at $59,500 and I asked for 7% off. I received a counter for 1% off, after that the negotiations died. Some dealers are just too greedy.
OR you are asking the dealership to take a loss on the vehicle. Not all manufacturers, models, and deals are the same. Just because something worked for you once, doesn't mean it is the same scenario again. Maybe YOU were too greedy trying to get a deal that wasn't truly possible. For example buying a chevy at 7000$ below MSRP in many cases isn't unheard of because of the value and market. However buying a Honda for 7000$ under msrp just isnt going to happen. Hondas have much smaller margins than most American manufactures have or they can't get rid of their 55 jeeps sitting on the lot.
@@Snugs_TTV UPDATE: Bought a new 2023 Lexus GX460 for over $8000 off msrp. Thats about a 9.24% discount, 60% cash down and 2.49% for 48 months for the rest. YES the vast majority of dealers are extremely greedy and china virus made it all the worse. Now, dealers try to artifically create china virus conditions to support their bs stories/excuse so they can try and charge more. I don't care qhat the real story is, if you're not working with me on pricing, I aint buying.
This is really good guys! I just did this yesterday, and I walked away without a truck. The dealer tried to sell me a lease (monthly payment) and the only thing I am looking at is the OTD price. So they offered $50,325 OTD on a lease, and later said $52,325 if I purchase with cash. So I walked. (Leases are a lot more expensive because of all the interest built in.) If they would have offered $50,325 cash/finance, I would have the truck today but the Dodge is only offering incentives for lease. BTW this is about an 12K discount off MSRP on a Ram 1500.
Yes they do push back harder and more stubbornly. It’s easy to do that when “the guy in charge” is behind a curtain. That’s when WALK OUT is a valid option… not the threat to walk out but real footsteps.
I went into Honda with a great credit score. I walked out with a zero percent interest, financed by Honda with gap insurance, tax, tag and fees for under 25K for a new Honda HRV EX, this was in 2021.I did my research ahead of time and I took advantage of their promotions. I turned down all the dealer add-ons!
I would love a role play the other way around. Ray has tons of experience selling cars and would love to see his techniques as a salesman. Zach would be more similar to some of us who have only purchased a few cars in our life time.
Simply walk in, ask for the OTD price, and then subtract $2,000-3,000. They will definitely say they can't do that. Then, just walk out. As you're leaving, you'll likely see a salesperson following you, saying, 'Let me go talk to my manager.' Yeah, also don't forget to subtract their version of "warranty." Most of the time, the factory extended warranty is cheaper and you don't have to buy from the dealer that you bought your car.
Went to a car dealership yesterday (of course, after researching the vehicle on CarEdge), and the salesman refused to give me the OTD #. He claimed there was a shortage of the vehicle, which supposedly justified the $20k market adjustment, when I knew that to be false. How the hell do you expect me to buy the car if you won’t tell me how much you’re going to sell it to me for? lol
I’m going to go test drive some cars for the family today. I was feeling a little anxious about being overwhelmed and maybe not getting the best deal. This helped a lot! Thanks for all the information.
$1099.44 is 3% of $35950. There are states that are at or below this car sales tax rate, but the average rate nationwide is 5% which would be $1797.50. If we updated the discount from $1500 to $2800 and removed the $2495 "Team 23 For Life", that would be $32155. 5% of that would be $1607.75. Add the fees, the OTD price is $34563.75 which is very close to $34500 offer OTD price.
I appreciate how you guys help educate car consumers. In the summer of 2021, I went to Nissan in Universal City in Los Angeles CA, to get a Nissan kicks, they mark up the cars $2K plus they hide a 2K fee for a paint glaze that will keep the car like show room they said. I told them I did not need that and they said all their cars have it and they come like that from the factory. So there are other ways to hide and inflate prices that you did not mentioned. I walked out of that dealer so fast. I also encountered that paint glaze fee at a Subaru dealer, where it was $1,600 for the glaze but they agreed to get me a car without it. I also went to Hyundai and cars were marked up 3K, the same at Toyota, both were straight forward about it. In the end we got a new Subaru crosstrek at a more honest dealer and got a lease with 5K down:( I wished I had seen your videos before, now I know that was money in the trash.
Just put my name on a Tacoma coming in later this month. Of course I negotiated the ODP, however Tacomas are hard to budge because they have the shortage and they sell all the time. The color I want doesn’t even make it to the lot before someone claims it. According to KBB fair purchase price, the final price I got was slightly under the maximum. So I feel like I got a good deal, just because they are hard to get them to budge on. I did however walk out when they low balled me on my trade in, and then they called my shortly after and increased their offer by over 2K, so the walk out worked well I believe. Anyway this was my first car buying process so hopefully I did all I could, although when it comes in, I will have to deal with the finance still. But I didn’t give them any info on my budget.
Really good video. This is how you do it. Know your numbers and simplify the deal. Then give the dealer a reasonable offer. At that point, hold firm and walk if they won't get close. No need for a lot of back and forth or games. If you can't get there in 30 minutes, then it's not worth it. Just remember, they are building new cars every day of the week. There will be another car.
Never have I ever seen a car salesmen sit quietly for 3 minutes (6:00 ish to 9:00 when Ray stops talking) while you monologue about the price of a car.
What about options? Do you negotiate the MSRP then add the options or do you add all the options, then haggle the OTD price? And, are options even negotiable?
Options are always negotiable. It's a tactic to stick more gross on the vehicle. What you want to find is a dealership that doesn't try to stick you with add ons in the first place.
You said something about Hondas being hard to find/buy, how would you go about buying one of those (new) and negotiating a price that isn’t inflated for a highly sought brand?
When Unc brought the point back to “Micheal Jordon”I hollered very clever 😂✊🏾I immediately liked the video thanks you’ll for sharing this very informative
Keep in mind, different manufacturers have different amounts they can go below MSRP till its a negative deal for the dealer. You can get several thousand below MSRP on a jeep because they can't get rid of them but trying to get 5000$ below MSRP on a Honda or Toyota is extremely unlikely especially since they don't depreciate in value nearly as quickly as most of the American manufactures do. For example 2000$ below MSRP on a Honda accord LX is excellent. However for a grand Cherokee that is nothing.
For someone who ordered and got an allocation for a car, would they have any negotiating power when the car arrives/ and able to walk away from the deal if it's no longer feasible? Or is it a situation where they're e obligated to purchase the car?
You don't need to buy the car. You can walk away. You do have to pay for your order but for me it was $100. I didn't know if that is a lot or a little so i took it.
Any tips for negotiating price on the upcoming 2024 Chevy Equinox EV (if and when those become available)? My guess is that the dealers won't be as amicable.
I have negotiated A price on a 24 Outback how does this look. Market Value 32,490 Discount 1,846 Taxable Fees 255 Tax 1,928.97 Non Tax Fees 541.90 OTD 33,370.47 I already negotiated the advantage plan of 1,495 out and Doc fees of 994 out
You guys should create a service where people like me can come to you and say I want this car, get it from the dealer at your best price for me. with a fee of course as long as Im not the one dealing with the dealer but trust you guys knowledge enough to do that and pay you for that.
I like your videos but all of the dealerships I have been to always want to run your credit first, to see what you qualify for. I don't want someone randomly running my credit ruining my score so I usually give up and buy a cash car.
This kind of negotiation may only work for brand like Nissan or other that don’t sell. Toyota and HONDA Dealers don’t even consider (too much) negotiation. And this is before chip shortage even started. So, you can better deal for a car that’s not selling like crazy.
Trade in is tough because it gets complicated. Every used car is super different in condition and options. Adding the condition, accidents, scratches, maintenance adds a lot of factors. Hard to put in a 10 minute video.
I'm confused about the negotiability of OTD and the influence of financing. Sometimes I hear it said that pre-approval for third-party financing is a bargaining chip that can lower prices but I also hear that bringing 100% payment in cash down will hurt bargaining power. But in either case, if financing influences the price at the sales stage of negotiations, wouldn't it be in the buyer's interest to give a number for their preferred monthly payment (maybe deflated artificially low so as to appear to be a source of long-term interest or high to appear to be an immediate payoff)?
That's how I buy cars. I play the payment game. I know the OTD target, lowest interest rate, # of payments, and value of my trade in. I back all of that into my target budget. This eliminates the hastle of negotiating each part of the transation. I'm not concerned how they move the numbers to make the deal work for them, as long as it works for me. It also makes the transaction non-confrontational. This is what I can afford to pay, not what I am willing to pay, or some other dealer quoted me. Their first offter will be the target price, but longer payment terms or down payment. The secont offer will be lower payment, but not target price. At that point I say I really like the car, but I am on a tight budget. Can you see if there is anything else that you can do to get me into that car? That will be their take it or leave it price. Be willing to walk if you don't like the number.
I have a habit of buying cars that are brand new in the market ( I’m thinking of my next car which is a Lexus TX PHEV), will CarEdge be able to help me so I won’t get ripped off from the dealer?
Heads up, Do your research I purchased this SUV 23 PATHFINDER three months ago. Today I got home in rental paid by Nissan. There are issues with this vehicle that they do not know if it software, or something related in the electronic technology in it. That’s constantly on or off even when they not supposed too. It’s a safety issue & hazardous to B driven locally or on the expressways.They kept it cause they don’t know how long the glitches patch or permanent fix is made.
Just ran into a brick wall with a dealer with a used car. Refused to move on a $599 paint protection thing that they added and we didn’t want to pay for. We ended up $175 apart on a $55k car. They told me that I really didn’t want to buy the car and to “have a nice day”.
I had an experience at a very upscale dealer in my area while searching for my last car. They were a Mercedes dealer but had a pre-owned full-sized black Lexus on the lot. I saw the numbers and they wanted to add $600 for paint protection (ceramic coating). I already test drove the car and it wasn't applied yet, so they could simply take it off the bill of sale without losing anything. I hate the work that dealerships do with car detailing. I'm very finicky with my cars and would prefer to spend twice as much for a professional to do it than some high school kid with a buffer. I once bought a black car that was "detailed" from the dealer, only to take it back 3 times because you could see the swirl marks throughout the clearcoat. I eventually dropped $800 for a real detailer to turn the paint into glass. From that moment on, "paint correction" from a dealership is a deal braker. I'm not paying you a premium to ceramic coat and seal all the swirl marks your high school detailer puts on my car.
Can you give us all the fees that we need to consider when buying a car. cost of the car State sales tax (is it the price of the car at its initial msrp or the price of it currently if it a used car) Registration Title Plates Etc
Be careful in this conversation. When you start saying I'll do it for $34k you're still thinking out the door price. You'll initial it. Later they'll say, oh no we were talking about the price of the vehicle. Keep saying out the door price until you are blue in the face.
Love this I am looking into a 2024 Chevy Trax and I think they dealership has the upper hand in Supply & Demand but if they want an end of month sale I have the upper hand. I’m going to use his advice to negotiate. 🤞🏼
Not sure if I’ll be able to get anyone’s attention but my family is trying to buy the 2024 Toyota Sienna XLE and no trade in. The MSRP is $44495 and they’re charging a nonnegotiable factory installed package of $2840 and port installed package of $410 and delivery processing & handling fee of $1395 which adds on to TSRP of $55690 not including taxes and non-negotiable fees (~$5000). In total the total out the door cost of the car would be ~$61k. I’ve been to three dealerships so far and I’ve gotten the car down from 10% markup to 4.88% markup which makes the total out the door price as $56139. I’ve put down a refundable down payment. Can anyone please give me advice on how to make out OTD price go even lower? And how am I doing so far? I got close to 5k down. If we have already put down a deposit, can we negotiate the OTD even more? Thanks all!
This is so surreal. However, it is best to perform a real-life car dealership experience. Try to make a video with a hidden camera and blur the faces, locations, and names. I almost got into huge trouble by signing a contract but I got away with it luckily. The salesman was sp provocative and aggressive unlike in this video. Thanks so much for the effort guys. But, let's do a real deal next time.. cheers!
can you do this for a used car? like how would you bring the mileage and depreciation value in the negotiation? (specifically a kia sportage 2021-2022 or an compact suv)
How do you feel about Courtesy Transportation cars? The Chevy dealership is telling me it's a brand new car but it has 3k miles already on the car. Are aren't moving on the price they said the discount was provided already in the price and this is the best they can do. They took it down just a little but something feels fishy!
What if I want to buy a new car on credit? Like paying every month because I dont have the money to buy it full price at this moment. What should I do in that situation? Any advice? With my family we always buy cars through 3rd parties or only buy used cars and pay cash. But I kind of tired of that since we always get bad luck and we have to put a lot of money on fixing it when we buy from 3rd parties because at least buying used from the dealership the cars are in better shape.
I have a question on leasing. I do find leasing more attractive versus buying, especially the way the economy is at its current state. Car prices will eventually come down, way down. Does the car leasing prices also fluctuate up and down as per the economy? I have never leased a car and my wife can write it off thru her business. The only reason I would lease is listening to Scott Kilmer, most new cars are junk. The only vehicles he recommends are the heavy duty trucks in the 2500 series or 3500. So, with that said, if the car she chooses ends up abeing POS at the end of probably 3 year lease I would just turn it in and lease another. She wouldn't come close to over mileaging the car over 12,000 miles a year.Thanks, I enjoy your channel.
Leasing rates don't necessarily fluctuate much because its not based on APR. However what positive or negative equity you have left in the car will fluctuate depending on the economy. In many cases leasing is an excellent option.
I have about 6k in equity in my 2020 Cx5 touring lease. 3 yrs and 16k mileage. The car is still same as new. I Didn’t even come close to the 30k allotted. How do you know they are giving you your equity?
I always appreciate Ray's insights about what's going on behind the curtain but I'll never understand his position of polite deference. I mean I understand that he's personally invested, but every car salesman I've ever encountered is a smarmy lying disrespectful con man who clearly holds the customer in abject contempt. I don't understand why they don't deserve the same attitude.
How could this conversation be had when leasing though? It seems like with leasing there's some more hidden information since you're not really paying based on the MSRP.
If I have an 830 credit score will that help in negotiations and when do I disclose that credit score? I’m planning to purchase a vehicle the week between Christmas and new years as I have off of work that week. Also, looking at a 2024 Honda CR-V Hybrid Sport-L, having trouble finding and invoice price for that vehicle. Thanks for any help!
Ok fellas I need your help... Trying to improve my credit and I'm looking at a 2014 Honda Accord Sport (Black). Nice car but it's got a TON of miles on it. 213K. The sticker price is $8688 and they want $1000 down. There's no way in hell I'm paying that sticker price for a car with that many miles. What price would it take for you to walk out the door with this car? P.S. the carfax is clean as far as I know..
Oh crap!!!! How about a Toyota RAV4 at about OTD $1000 less than this Rogue? I walked out on that deal just a couple hours ago. I still thought it was too high 🤣🤣 BTW: 2023 XLE AWD
We want to buy a new Outback and we’ve been looking at different dealers. One thing I noticed on the window sticker is there’s the MSRP and then under that it says “Option package” and depending on what that includes depends on the added price. Can this be negotiated and really is an option?
Was thinking about getting a Honda Civic brand new. The dealership says 26 grand and I’m getting 20 grand from my insurance company. Could I get that car for 20 cash?
So, I have a funny dealership story. I woke up one morning with a spider bite and decided to go to the doctor the following Monday. I figured it could wait. During the day, the bite became more and more painful. I just so happen to be hanging out with my friend and he dragged me to a car dealership to look at cars. We were swarmed by 2-3 different salesmen. We were all sat a table talking about options when I told my friend that I didn't think I could be there any longer. I needed to go to urgent care. I was rocking back and forth in the chair in pain. BUT the salesmen wouldn't let him go too easily, even when I showed them my bite - which was a pink/purple hideous mass on my arm. They continued to give him a sales pitch with me dying in pain, waiting for it all to be over. Finally, I persisted and we used the emergency as an excuse to get out of there and went to urgent care. I ended up spending 3 days in the hospital (it was a nasty brown recluse bite) and it became a funny story that my friend and I talked about years later. It was just funny because they really were not about to let us out of there despite all that.
hi can u please give me a suggestion i bought a benz c300 year 2015 at a dealership in the loan they put preferred warranty for 4500 dollar's towards my loan i call the warranty and they looked me up with vin and all but said u have to call the dealership to get it activated but now the dealership is permantyly closed what should i do?
Been endlessly hunting caredge for the past week for 06 or newer Cadillac XLR that’s under $15k & under 80k miles it’s like impossible everyone that’s under $20k has 100k+ miles on it definitely not worth 20k 😢
