bay area415: You probably need to be concerned about fees, warranties, and taxes at that point. Unless you are able to negotiate fees and warranties as part of the final price.
I did exactly what you said and it worked. I went into a dealership and they did every step you said they would do. I stuck to my guns and left without a car. They called me the next day begging me to come back. I told them that my offer yesterday is off the table and that it would have to be cheaper. We were one thousand dollars apart and they tried to play hard ball. I won and I am still looking with confidence. Thanks Jeremy for this wonderful channel.
I literally did everything you said in this video and negotiated the price down by $5,500. What’s funny is the salesman did the exact thing you said he would do. I just kept telling myself to be stern, stay confident and say everything you explained on this video. And it worked! Big thanks for your help!
Wow this video blew up!! Just a month ago this video had like 1k views and now it has the most views of any video I have ever done! Also is the only video I have ever done that has over 100 thumbs up! Cool stuff 👌🏽👌🏽
great video, wanted to say i work in the service dept. at a mercedes dealership, and yea dealerships make more money off used car sales than they do new cars, i hope people learned a lot from this video, and you are completely correct with all of it
Credit Unions you can say look out for you, not big name banks like Chase. Banks are there to help dealerships make money because the BANK will make money as well by loaning you the amount the dealer reports to them.
The video had some good tips, but I strongly disagree about doing any negotiation while sitting in the dealership. That is THEIR TURF, not yours, and they can play all kinds of stupid games with you to make you feel uncomfortable while you're sitting there -- giving them an obvious advantage right off the bat. This is called "staging," and in my opinion, the very first thing a good negotiator does is NOT allow your opponent to "set the stage" this way. Rather, YOU set the stage. Since they want to sell you the car, and if you are genuinely interested in making a deal for the car, they will always agree to YOUR staging terms. So, if you are otherwise happy with the car and want to try to make a deal, tell the salesperson that you are seriously interested in buying at the right price, and that you will back this up by giving them a (completely refundable) deposit on a credit card to hold the car off the market while you talk about the final price/deal. They will agree. Then ask the salesperson for his direct EMAIL ADDRESS, and give them yours. They will always give it to you. Then tell them you will contact them VIA EMAIL either later that day or the following day (or whenever), and that all further contacts will be VIA EMAIL ONLY, until you can reach a final agreement on the terms. THEN LEAVE. When they object or drag their feet, don't back off. Simply tell them you are uncomfortable negotiating in any other way, and that if they don't want to work on the final deal via email, then you will have to go elsewhere. ("Look, there are a ton of dealerships out there, with millions of cars, so I'm going to keep shopping around. Thanks anyway."). They will ALWAYS agree to the "email method." Now YOU have done the "staging," not them. By using email rather than face-to-face negotiations, (1) you can spend more time thinking about your negotiation "moves" before responding to theirs, (2) you can discuss those particular "moves" with others, (3) you can do more internet research about specific issues that will arise during the negotiation, (4) you can formulate your offers and reasons carefully and clearly, without any misunderstanding that can easily occur with face-to-face talks, and (5) you can avoid the pressures and games they will use on you when you are sitting at the dealer table, like a stooge, being "staged." Most importantly, using this method will give you a WRITTEN record of everything that you say and everything that they say, meaning that they can't promise something and later on, pretend they didn't say it. DON'T BE STAGED. One more suggestion that will almost always give you an advantage. At some point during the negotiation, casually ask the salesperson this simple question -- "SO, WHAT'S YOUR FLOORPLAN ON THIS CAR?" Not many people know what a "floorplan" is for car dealerships. (FYI, it's the monthly interest payment that the dealer must pay for the loan that the dealer used in order to buy the car, meaning that the longer the car sits on the lot, the more money the dealer is losing via "floorplan" payments.) And the thing is, you don't really even care what their response to that question is, or even if they decline to tell you. You are only asking it as another "staging" tactic, to let them know that you must know more than they think you know.
+drglebov I love this comment!!!!!!!!!!!! Everyone that watches this video should read this comment! Some out of the box ideas that I believe would work very well!
Thanks for the appreciative comment on my comment. I first became aware of "staging" techniques when I was in law school, and I used them to my advantage during my thirty-year legal career, most of which was spent as a prosecutor. Let me add one more thing.... The most common "staging" technique that car salespeople use is "posing constant questions to the potential buyer." In other words, they will IMMEDIATELY pepper you with canned questions, e.g., "So, what kind of car are you looking for today? So, what do we need to do to finalize this great deal today? So, exactly what do you need to 'think about?' Just tell me your concerns and we can resolve them -- why go home and 'think about it' when we can resolve any issues right now?" Etc. ALL of these questions, even the most trivial ones, are intended to do only one thing -- to put the buyer in the defensive position, and to give themselves the upper hand. By continually asking you questions, they are establishing up front that THEY are in control of the interaction, not you. THIS IS PURE STAGING. Most potential buyers aren't even aware of this "constant questions" tactic, and so they play along, blindly answering the salesperson's questions -- with each answer reinforcing their defensive role. What I've done with car salespeople to avoid being staged is to do some staging of my own, by saying something like this to the salesperson, as soon as they begin asking their canned questions -- "Tom (or whatever their name is -- always learn their name and keep repeating it), I need to explain something to you up front. You see, I came to your dealership today because I'm obviously shopping for a car. That means if I do find a car that interests me, I will have a lot of questions for you. So Tom, I really didn't come here to answer anyone's questions, but to ask them. That's all I need from you right now, to answer my questions, not to ask me questions. So tell me, Tom, is that too much for me to ask? Am I being unfair to ask you that?" In response, Tom the salesperson will ALWAYS agree with you, which means that YOU will have "set the stage," not him. And later on, when he predictably relapses into "asking questions mode," you should ignore his questions and simply remind him, "Tom, remember what we agreed when we met? We agreed that I'm here to ask you questions, and that I'm not here to answer them." He will then apologize to you. The upshot is this -- NEVER LET YOURSELF BE "STAGED" INTO A DEFENSIVE POSITION.
drglebov I did exactly what you said about a year ago except that I didn't ask them permission to negotiate by emails, just went online and started emailing 3 dealers, it worked perfectly! Great advice, thanks for sharing.
Back in 2013, I had a salesman tell me "I can get the payments down to $xyz" and I told him that I would rather know how much I am paying total. With a straight face, he said "Well that's silly because there is no way to calculate the total for the entire car... Cars are all based off of monthly payments." ...dead serious. I laughed and walked out. Dodge dealership in Norman, OK. Stay away. Hahaha
I bought three new cars in my life and only one of those were up front with the price from the get go. The first thing they usually ask is that damn question, "how much of a car payment do you need?". I was like you, tell me how much is the lowest price you will sell me the car for? They don't want to say. Waited too long at one dealership where I should've walked out but I was out of town and wanted to make a deal.
Exactly my experience for a first time buyer. I was very nervous. Saw the car online for $8500. Set an appointment with the dealership. Before test driving the car, the car was on sale for $9500. When the negotiations came i said how low are you willing to go. he didnt give me and offer. So i said $7500. He gave me that shocking look and said that's insane. I just told him that's the lowest I'm gonna go. I also told him I'm from out of town looking for cars and this was my first stop. Guy comes back and said $8000. I told him I have other options too so I shook his hand and walked out the door. A few secs later he rushes outside and said how about $7100 and you take the car. I was like ok. Forgot to say I checked kbb and fair price was at 7500
Funny, if I was in your place I would have said, OK What's wrong with it?. LOL. Sometime you got to move the product and some cars sit on the Freaking lot and not move, just get it the hell out of my sight what the manager says.
you did wel.. subsequently dealer has to sucker somebody else.. maybe we should change the way we treat eachother .. i am a verry good sales person .. but i choose to be just and honoust .. and there for i hate most sales people .. you did well
Great advice!!!!! Looking to buy my first car soon, this video actually had me laughing out loud. Comparing to now and seeing how much the channel has grown is so inspiring. Every video is great I haven't missed a video since I found your channel
Just put a down payment on a New Car (First Car ) today. I watched your video before going to the dealership. It really prepared me on how to negotiate and what they will say next. It played out almost similar to what you said. long story short I got the car for my asking price. Thanks for the help. Great video simple, easy and straight forward to understand.
I bought my 2011 WRX for a great price today. This video helped me so much in terms of getting the price down. I wholeheartedly recommend this video to any one who is planing on buying a car. This was my first car buying experience BTW.
omg. this totally worked!! my husband and i walked out of the dealership and they came out and made us the deal we wanted. seriously ur advice saved us couple of thousand dollars.. and thanks to your video. my family and i appreciate your advice
This is really helpful coming from a first time buyer and still looking. This past weekend I went to a dealership looking for a Grand Cherokee and I did a bunch of things wrong and wasn’t feeling confident about it. Seeing many of these videos and reading the comments is really helpful and will use these tactics next time I go to another dealership!
Hello. I wanted to thank you for your advice. I bought a vehicle for the first time ever and followed your exact steps. I got them to come down to the KBB price, $100 over it but I figured that was close enough. So thank you so much. I'm a female and I've always heard they try to take advantage of females but thanks to you, I got the price I wanted. So thank you!
This is for UK viewers but might be usefull for others. I looked at a car the other day priced £17000 on the forecourt had a chat both dealer he knocked £2000 off the price. Wow l thought me long time happy. Until my daughter went on line and told me the same car at the same dealership is advertising at £15000. I am SO glad l did not put a deposit down, so do your homework, look on line and don’t be a sitting duck like l almost was. Thanks for this video it helped me a lot.
I know this video is about three years old but your video was really helpful getting us a used car a 2018 Mazda CX5 Grand Touring with 1,108miles out the door price was $25.5k asking price was $28.5k plus fees and crap . thanks for the help
You forgot to add one more thing that they do, they always play the financing game. The financing is also negotiable. I always negotiatenegotiate the financing they always start with a higher number
I think this is wonderful being a women and buying a car I am sick and tired of getting ripped off I just want to u to know I appreciate this thank you
I found Carmax usually offers the most for a trade in. You can ask the dealer to match their offer. You really have to watch them when they try to slip in a crapy interest rate on a car your buying.
Whenever I am that far off on numbers I find their is usually two trips to the sales manager before they try to get me to go for another car that is closer to my price I said I wanted to pay. I've never had them accept my final buy price when we are that far apart.
U are a good person, ur explanation is easy to understand and very informative, thanks for sharing, big thumbs up for this great guy and surely subscribed
One thing though, one has to know the total fees a stealership will add to the "negotiated price" before even showing up there. I'm in NJ and there are dealers that add about $2K in BS fees, yes some can be negotiated out but I say this as this is another price hurdle that can "void the deal" for the buyer IF they can't rid of the BS part of the fees. I was at a dealer the other day that charged this plus a $599.00 doc fee! Yes, you have to pay taxes and should only pay a small doc fee to process the title, registration and tags/temp and permanent license plate(s).
Thank you for the information... We are shopping aroung right now and we dont want to get screwed again... We are doing our research this time. Thanks.
One thing i wish you had talked about is all the crap dealers throw in and the ultimate "out the door price". I have seen them lower the "car" by thousands, and add lots of fees, and change the interest rates to be higher... there are other things to negotiate on the harder guys....
Yep, had a dealer do that to my mother on a truck and I happened to be in town visiting. We both saw it on the final form and we said THAT doesn't add up. Guess they are used to people not doing math. They corrected it and acted like it's a mistake...SURE. If it was just me I probably walk out, why because you can buy a truck anywhere.
KM Reviews They always sneak in the documentation fee when your signing papers as well.. So be sure to tell them in online quotes. you want real OTD price including the doc. fee. Mine came to $169 after I emailed this dealer again . (Deception is their game)
I was in the market for a new toyota Tacoma. Went by myself two times and did not want to give me a loan even with my credit and job history. I offered 20k in cash the rest financing. They did not want to do that and totally disrespected my intellegence and research. 3 weeks later I went with my dad to completely new dealership. I looked gross and "poor" but we went in with confidence. We offered all cash offer and got my new 2019 tacoma in calvary blue within 2 hours. Nicest dealership ever! girls you have to go with and older man or not they disrespect you bad!!!
I'm in the process of buying a car. I love that negotiation approach first. They ALWAYS ask what you want your payments at! I have been doing research so that when I go in, I'll have my ammo!
It’s ok to look online for a vehicle, but before going to test drive the vehicle just make sure that the vehicle is TRULY there in good condition. Salesmen in the dealership will lie to you about the vehicle being in the inventory to lure you in, when in fact, they knew from the beginning that the car was not in inventory.
I am actually practicing by trying to negotiate via email. I will need a vehicle in about 4 months when my lease is over so I figured I would try now so when it really matters I might get a a better deal.
Timothy Bourgeois What car brand did you buy? I'm currently leasing a Honda and as far as I know they don't let you negotiate the final price on leases. How did it go and were you able to get a price different than what the..residual value? Was on the contract?
The biggest misconception is this idea that dealers make 3-4-5k or more on the front end of the deal (on the sale of the car). This simply isn't the case. Those days are over. The easiest way to buy a car for what you want to pay is simply email every single dealer you're interested in and start an internet bidding war between them. Whoever gets closest to your number...go there. That's it. All this other shit is a waste of everyone's time. Want the best deal? Go through internet sales. Just give you bottom line number and wait. They'll get there or at least get close. There done deal. No 1-2-3 hour shit back and forth shit show.
Upadhyaya Family yea im trying to get a 2018 wrx and the internet sales is offering me $1000 below msrp. I was like huh? You just offered me $1000 below INVOICE on a subaru legacy and you cant do that for the wrx? He said no. I said well lemme think about it. Hopefully they drop it to at least invoice
There is no such thing as an internet sales department which is separate from the sales department in any dealership. They are all the same department. However, some dealerships recognize the person who contacts them via internet is looking for a reason to visit the dealership. Usually that reason is a price. Dealers who respond to an email request with a price quote and more information are generally the better dealerships. The best way to price a new car is to start at invoice. Invoice is far more than a dealer pays. Reduce invoice by holdback and any incentives, both to the consumer and to the dealer. Edmunds and other online sites have such information. That will give you a target price and a price from which to negotiate. That price is likely still more than a dealer paid for the vehicle but the dealer does need to make some profit. But such knowledge will ensure the buyer is not screwed on the deal. Go to any dealer, better to choose one with a good reputation, and offer your price. Or do it via email. Let them try to meet or come close to your price. I avoid any an all dealerships who refuse to offer a price via email. Any dealer who tells me to call or to visit is immediately removed from my list. Those dealers are generally dealerships who want to grind with the customer over every dollar. As you noted, why waste time with those clowns. And ALWAYS, NEVER, EVER buy anything offered for sale in the F&I office. All are grossly overpriced and all, included extended service contracts, have very dubious value.
no one is 100% accurate either on the consumer side or the dealer side because there are so many variables that determine monthly payment price of car such as credit and the amount the car is actually invoiced for. most dealers on average only have a markup of about 6 to 8% where is Jewelers have anywhere from 2 to 300% markup, but yet you don't see anybody trying to haggle with a jeweler!
I plan to buy a new car from my local main dealer in the next year. I know what car, model and trim level I want, and, unfortunately for me, is the only option I have. (I want an electric city car brand new). This will be my first time buying a car, so is a very new experience for me. This video is very helpful for me.
I wouldn't do any of my negotiations in person, I do it all over the phone or via email. Don't forget when you're looking at the price of a car there maybe the options on top of that that add to the vehicles worth. Like vehicle stability control or the sunroof. So like my vehicle on Kelley Blue Book is far less than what it's actually worth because I had costly options added on. So you have to consider that.
I sell cars personally I would say for alot of dealerships that can be a good tactic but its not going to work at a honest dealership also DONT use KBB!! Use NADA its much more acurate, because banks use NADA for their book values
This video helped me so much... i had to negotiate for a brand new car, and had no idea what i was gonna do. I suck at negotiating. But with this info, i just got a fucking great deal!! THANK YOU
Financial Education Yea man. I wanted the 2016 Toyota Prius Four Touring with all the special stuff. Basically the most expensive prius you can get right now lol. It started as an out the door price of $37,000. I got them down to $31,500 out the door, with 0% interest.
for some reason I never got around to watching this, but I am glad I did. 1. The F bomb was appropriate.....twice...... because car dealerships are without morals. 2. I loved the "5,000$.....HUH?!" moment! 3. And yes, this was good advice. I can hear from the voice you still hadn't got your confidence yet. But it didnt hurt the quality of this video at all! Please make more of these non-stock market videos, once in a while obviously!
car dealerships are without morals? That might be the case for some but not all. This advice was terrible. Read the reply above by Juan. He is exactly right.
if you offer 12 500..... thats an extremely low bid, and the dealer might just tell you to have a nice day.. I dont think a dealer sells a car for 40% above blue book very often though
no they dont, typical mark up on used varies between 8-15% after recon. A reasonable offer would start at 15500 and youd likely still have to come up a little. its give and take in reality
I appreciate your help and discussion I’m about to walk into a Cadillac dealership and I’m 21 so I’m sure they gonna sucker me in they keep callin my phone but thank you for giving me the leverage I needed
Good advice...mostly... but don't give a phone number until you are sure you want to negotiate. Because you will be hit by constant phone calls, texting and all kinds of nonsense. We've been looking for about four months now. And every online dealership is the same. Same pop ups, same "Good choice," same chat, same company that designed the websites. I think they are all in Minnesota or someplace. They are not at the dealerships. And websites that require a phone number? Say "Placeholder for the phone" and put in a weather call or the dealership.
I work for a dealership that doesn't work this way, it's a Toyota dealership, no negotiating and no games. One price, One person. No other Sales manager or finance manager gets involved, in and out in two hours. most of the info in this video is right, but only in a traditional dealership, those are going away. find a "One price, One person" dealership, they are priced right and they are willing to let you walk away because car is actually priced as low as they are willing to sell it. Save money, time, and have a great experience. I'm in the city of Avondale.
+Claudio Escobedo Thanks for sharing! I like Avondale by the way. I was born and raised in AZ. The type of dealership you work at are becoming more and more common yes. Kind of reminds me of Carmax since I don't think they negotiate either
Claudio Escobedo that's not true in fact they the ones fucking you the most. have you heard of CarMax? They make the most out of any other dealership in the us for used cars because there super markup and guess what they sell because people buy that bulshit idea because people think they're getting the best price with no hassle
Heard decent reviews about you guys out there. Fair warning to others out there in AZ don't go to Right Toyota. Total scammers there! Will be looking for a 4runner here soon and Avondale is on my list of dealers to check out. I have a '98 4runner with 300k now and I'm in no rush to get another cause that vehicle with last forever! So price is the ultimate deciding factor for the new one! OTD Price will win my sale!
Here's a question/tactic I don't see often. If you are buying a used car, can you ask the dealer to show you the invoice and inspection documents for that car when they took possession of it? Could you use that price to play good cop/bad cop and let them know that you understand they need to make money but you're also trying to pay the right price so why not work together and make a win win situation? Using the 2014 Nissan Altima example: if KBB says its worth 13,500 and they list it for 17,000, chances are they got it for around 8-9k. Knowing what they paid would probably give you a good base to start at.
Why would it matter what the dealership owns the car for? What if they own it for $0 dollars? What would you pay? What if they own if more than the asking price because it needed more in service than anticipated or has been reduced in price because it is aged inventory? Look at the market and compare to what other 2014 Nissan Altima's are selling with similar miles and options.
Hey Jeremy, can you do a follow up to this cause after you got the price to where you want it, they feed you to the finance guy that sells you a bunch of insurance and thats where they get some money back from you.
Best way to get a car for cheap is make a low ball offer and when they say “we can’t do that” say how about we flip a coin if I win I pay (insert price here) if you win I pay the sticker price and if they say “yes” say well you just lied to me you told me you couldn’t sell it at that price and say “I’m gonna go now or you can sell me the car for the price I offered” something like that works on some salesmen because it makes them feel like they lied and that you don’t trust them
Awesome video dude! Really helpful. I'm actually going into the dealership on Wednesday hopefully getting a Nissan Altima. And ironically the KBB value is a couple thousand dollars higher than the listed price. I'm not sure why, but I know it was a rental car so maybe that's the main reason. But it has good milage and a clean title :)
I always thought it was a great idea to accept all those warranty things that are fully returnable within 30 days and use that as a mechanism to get a cheaper base price. Salespeople, in general, are likely to negotiate a lower price if you are getting that extra stuff. Watch the that person's eyes widen, flip the sale, and reverse it within 30 days like Missy Elliot said.
This depends on the culture as well. In Germany, bargaining is not common at all. You will only get more than 5-10% off if there is sg. wrong with that car, and that is said by people who are exporting used cars from Germany on a daily basis. But the psychology of the negotiation is spot on, and it does not cost money to practice it.
It's worth finding out when the sales teams 1/4 bonus is as they need to hit their targets so do the deal towards the end of the 1/4 - they won't want to lose a sale!
On KBB there are 3 prices. 1. Fair Market Range - $17,647 to $20,706 2.Fair Purchase price - $19,177 3. Typical listing price - $19,393 Which purchase price should I aim to get out of the negotiation with the dealer ? Thank you !!
While there are some bad dealerships and sales people, not all of them are how you described in your video. Generally in the case of used cars there is a larger margin (depending on the car), but when it comes to new cars there often times isn't as large of a margin as you think. Nonetheless, a lot of your tips are really accurate and helpful! Another tip you should really add is that before walking into the showroom, you need to be clear on how high you are willing to go. Make sure you stick to that price and you'll be happy with the deal at the end of the day.
To me, the best option (most efficient) would be to just give the dealer the price you're willing to pay, in this case the $13,500 and leave them your name and number and walk and let them decide if they want to sell it for that price.
Most car dealers are aware of the kelley or truecar price. If you cut the BS and the back and forth and just offer the price that it's worth, an honest dealer may just accept it.
Always best to go in and negotiate. If they don't seem to lower the price then it's best to bribe the sales guy if he can lower it. If it's a very expensive car best to bribe the finance manager direct.
@@NoName-lm7nk Unless you are a corporation buying a fleet of cars the phone isn't going to help you get anything. They just lie on the phone and inflate the price once you arrive at the dealership.
+Financial Education Love this little more low key style you have in this videon more than the slightly hyped up version you are going with in your stock vids. Maybe it's because you you see some difference in views but I honeslty took in alot more of this info than I usually do from your videos. Nice vid. Keep up the good work :)
An hour or two? I tell them look you got 30 minutes and none of this back and forth with the "manager", if they didn't give you the power to haggle then why am I talking to you I should be talking to the "Manager" who decides these things. I'm a lot more blunt nowadays, I don't care if you have 8 kids at home and you make $100 on this deal only it's not my problem you better get snipped will be my comment. By the way $100 is more then you had at the end of the day so stop being a hard ass sales guy I either buy now or go elsewhere as dealers are a dime a dozen. The reason they drag it out is so you get broken down and say OKAY because it's been 2 hours. Best haggle I ever did was I walked into Sears right after Christmas and they were packed to buy an HD TV, back when they were mainly Tube TV's still. No research I walked around and say a top model on for like $2,200 on sale that day for $1,800. Salesguy comes over (and note they were packed)...I look at him and say I'll give you $1,200 and he looks at me like WTF but then looks around and says "Deal"...LOL There was so many people shoulder to shoulder he didn't have time to haggle or anything it was quicker to just accept and let me out of there. I was out in 20 minutes...LOL I once proved to the wife (at the time girlfriend) you can haggle on anything and I did so on some rodent pets at Meijers (like a Wal-Mart). Pretty much I offered half, the manager laughed but said "okay"...LOL He probably never saw someone haggle in a department store. Hell I have haggled at Wal-Mart what's the worst they say? NO, either I needed the item anyways or I didn't and I walk away. Never hurts to ask. So yep, for Auto's don't play the time game, walk in and say I have 30 minutes or an hour. If I use an hour that includes finance. Because they will drag you through the ringer int here too. Literally get up and start to walk out of the finance guys office. When asked what is going on, be like "look I said I have an hour" I got to go you keep asking if I want extended warranty and paint protection I said NO and either you close the deal int he next 5 more minutes or I'm out of here. They never want you to leave because 99% of the time you are not coming back. No reason why the whole process has to take so long. I have an uncle that won't even go into the finance guys office and he tells them that. NO "I just want to buy the vehicle and I can sign THOSE papers out here". They don't care about YOU so why should you care about them?
I had one customer say she said she was on lunch he with 30 mins in one ear out my other ear. 3 hrs later they signed and drove. Before they drove away i looked at my watch and said. I hope your boss isn't mad about coming back 3 hrs late. she said.... What ??
There is a second side to the dealership not mentioned at all and that is the finance of the car... I know this cause I use to be a finance manager... they will mark up the interest rate that the banks offer... the bank will offer the dealership to sign you out at what is called the "buy rate"... lets say the bank buy rate is 5 percent... the dealership will tell you the interest rate is 7.5 percent... aka a 2.5 percent mark up!!! So the moment you sign the finance paperwork if you are finance a $50,000 car will make $1,250 instantly... in the car dealership world they call this the "kick back" from the financing lender... worst part is that they can jack up the rate without you even knowing about it... this isn't even getting into the additional products like a maintenance plan, service warranty, and additional products sold with the car... you should make a video on this side as well and feel free to hit me up if you would like to chat about some of this insider knowledge on how the will rip you off as the car price is just 1 part of the scam
Matthew Johnston I had no idea this was a thing. I'll be buying cars with cash from now on to avoid this. It almost seems criminal to mark up the interest rate.
So far, I've tried this process two times in the last couple of days. Not only did they not agree to my offer, they refused to give me a counter offer. One of the dealers (the manager, in fact) was so offended by my offer (based on KBB) he asked how I would feel if he offered me $1000 for my car. (Note, I was NOT offering $1000 for the car he was selling). This car was advertised as being in "excellent" condition, yet there were key scratches all over the car, only 3 out of 4 tires matched and they had 4/32" tread, the car wouldn't even start because the battery had died (they had to jump start it). I asked them directly, at the very beginning, if they had done any mechanical work to the car. Zero. Upon inspection, it was obvious they hadn't really cleaned or serviced it, either. Air filter was dirty. Inside had stains on the panels. They had this car listed for just under $15k. I offered $11.5k. Another dealer had a similar car listed for $17.5k. Listed in excellent condition. Except, when I inspected the car, one wheel had significant curb rash and paint peeling. Another wheel had the same, but only minor. Additionally, the front bumper was cracked in one spot, and very badly scuffed up in another spot. Headlights very hazy. Plus, the vehicle was supposed to have an 8th, removable seat. It was missing. I did not make an offer at the dealership. I waited two days, and made the an offer of $14k over the phone. No deal, no counter offer. TBH the 14k I offered is absolutely more than the car is actually worth, and if I hear from that sales person again, I'm going to inform them that my offered has expired, and reduce it down further. So I'm 0/2 so far. Not deterred. I didn't think this was going to be an easy process, but surprised so far that I haven't gotten any counters.
Two days ago I bought a brand new ram rebel msrp 54k internet price is 43k, I have a Chevy Colorado to trade in kbb said 20k, but the salesmen give me 13k for my trade in I spent 3 hours to negotiate finally I got my trade in for 19500.
Looking at a 2015 Civic right now priced at around 12.8k claiming to be about 1.6k under kbb value (doesnt even have the touch screen or side mirror cameras for some reason) my plan of attack is to get my own financing set up, and tell the dealer via email that I'm willing to pay 12k including taxes and fees and boom they just got a free commission. Car buying is a terrible deal. The moment I reverse out of that dealership I'd never even be able to dream of getting 10k for it the next day.
absolutely not how the car business works. you don't actually have the margin you think every car dealer has. 7-8 k in owners cost and selling for 17k is unheard of. I've been in the business many years and you are filling these people BS. If a car is worth 13.5K thats generally what people sell for. Big Gross dealers don't exist anymore. You build this notion that we are out to screw customers when in fact, you are ignorant because you think you know it. General statements such as "they have no remorse for you for you getting screwed" is absolute trash. But I guess it makes sense, you aren't very smart. Best of Luck Asher Paul, if you use this advice, you are gonna run yourself out of dealerships more quickly and take more dings on your credit this way.
most likely when you call a car dealership to ask if they still have the car available, they will says YES.. it happened to me.. they said yes, a few minutes before I got there..once I got there, I got the old "oh, it was just sold", and they wanted to sell me a more expensive car... yup, the old bait-n-switch tactic... a lot of them still use it.. they put a car online at a very low price as bait.
