Update! SPOILER I actually picked up the car today (it came in early) and I love it! Going from driving for seven years in a '99 beater to now driving in a '24 brand new hybrid- the improvement is absurd lol. I've learned so much from reading the comments on this video and I wish I had a time machine to go back and use some of your tips 😂 Thank you all for watching!! Edit: ALSO, because I'm tired of responding to the individual comments. Yes, 8.29% apr for 84 months is high, if I paid on schedule it would amortize to about 5k in interest. I plan to pay it off early, but chose the longer term for lower payments as a financial "cushion." The credit card I'm using for the remaining 4.8k is a new credit card with 0% apr for 18 months, not something with 15-20% interest. Update 5/22/24: This vid is public again. There was some drama with the dealership but basically I agreed to censor the salespeople's names as a courtesy. The first salesman was only two weeks into the job so be nice in the comments, we all have to start somewhere.
I don't mind at all! No extra discount from what you see in the video, it was 26,800 all said and done. I turned down all the warranties and lifetime packages of course ;)
@@fourdashergames That seems fair. 👍🏻 I haven't finished watching your video yet as it was elevating my BP a bit. You have way too much patience 😀, I would've walked out by now. Last month, I went looking for a Corolla Hatch but was told, it's a 12+ month wait. So, went to Subaru and got myself a Crosstrek. Two minutes of negotiating and it was down. I hate salespeople, they suck. Congrats. 🚗
Dealerships today try to keep the rhetoric going that there's some kind of supply shortage in new cars, like during the covid years due to transportation delays. There's no longer any shortage. Toyota and Honda happen to be good cars so they sell fast and have trouble keeping inventory. Go to Ford, Chrysler, Dodge, etc and they have cars sitting for months. They are taking $4000-7000 off sticker.
@@DaveDepilot-KFRG dude my local mall, the southbay galleria in la county has like atleast 300 cars parked in the lot from dealerships that aren't selling them. stickers adn all the information on them lmfao its so bad.
hybrids are in fact hard to keep on the lot these days. The EV's are taboo for many clients, which lands them on a hybrid model in search of better fuel economy. And the corolla is one of the best selling cars on the planet, so this checks out tbh.
What was really meant by that statement is "I think I'm more intelligent than you and I'm going to try to get you on my side by playing you with a comment". I had a former detective try some bullshit like that on me at work one time and I didn't know what it was but I didn't appreciate it. I told him I wasn't changing my position and to talk to my boss. When I talked to my boss about it afterwards to see if he had gone to him, my boss said no and I told him what the guy said. He kind of chuckled a little bit and said that's just something that he did as a police officer to try to trip up the person he was interviewing and he tried to use it on you. That is what pissed me off.
I was looking at a certified used vehicle, which I had confirmed over the phone that the asking price included the certified used price. The sales manager typed up an order with an added certification fee of $1500, and a "acquisition fee" (on a sale, not a lease)of $2000. I laughed at him and walked immediately. He chased me out the door, and repeatedly called my phone. "Nope, we're done".
@@genoaoak I had a similar experience many years ago, buying a BMW m3. I walked out, and by the time they called me a couple of days later I had already purchased a used CLK55. My only regret is not keeping that car forever. What a joy to drive. When I bought it I told the MB dealer my tale of woe and basically said, you can have my business if you don’t make me feel like you’re trying to screw me. They did a great job of it.
i honestly don't know how swarmy dealerships stay in business. Anyone who does a little bit of research when car shopping can instantly tell when they're getting priced gouged. One look at those fees...I'm out of there. Don't put a out the door price on your website...I'm out of there. I'm not even showing up.
@@Novaximusdealerships understand youre probably desperate for a car and your other option is the used market which is horrible right now. I can imagine most dont fold
@@NovaximusYou’d be SHOCKED just how many people do zero research. Tons of people walk into dealers, tell them what they want to pay per month, test drive a few (or even one) car, and then drive off with it. Thats why you see “sign and drive” events with zero down because people WILL make these huge financial decisions impulsively. When my cousin got her first car, I kid you not she bought THE very first car she test drove. Was at the dealer for less than two hours and drove it home.
Actually he said 'in a couple years' or something like that. The response meaning they were SO overpriced it would take him more than a year to save up the difference! LOL
The name of the sales game is persistence. They'll keep working on you, playing good cop; bad cop. That's why the manager gets involved. They won't take a loss.
I wouldn't have been that polite, and just said, " 'See ya later." I actually wouldn't simply go to a dealer, starting from scratch with a salesperson.
Once was haggling hard for a new car and salesman used the line "whats this car really worth to you?". Well i could not resist. I said " if i drive it off the lot, turned around and wanted to immediately sell it back to you. Whatever you offer is how much its worth to me.". He had nowhere to go with that argument.
@@TrendyTryhard Unlike buying a toaster, you have all the hidden adjustments behind the scenes in pricing. Also, the higher cost of automobiles affords wiggle room. Plus buying a car is "making a deal" as opposed to shopping prices on a hang tag. Buying a car is not the same as buying a toaster in Walmart. That's a false comparison.
@@jeffrey3498 Actually, depending on the circumstances, sometimes you can negotiate the price of smaller ticket items as well. I once bought a $500 vacuum cleaner for $225. It was new at the time and I still have it.
That just made me think, this could be great education content for kids. Show them what a sleezebag is like and inform that drug dealers will also be full of shit. Obviously also educate about negative effects and addiction and money et cetera, but this could help too.
@@DBCOOPER888 Still takes him from A to B in the same way and probably has more 200-300k miles before it gives any major problems. So yep, a new car is not a need for 99% of people out there.
@@bobpiff5161 Historically most service is not done at dealerships. In the past 10 or so years dealerships have put a lot of time and effort to change this, so most recent polling suggests around 35% of American's service their vehicle at the dealership VS a service center.
So they bought out the rights a long time ago, making it illegal to buy cars that way. Forcing us to buy thru the stealership, which adds on their profits.... (Corporate junior accountant for a stealership, until i one day become the comptroller)
You know there's like a million people who make a living working at a dealership?? Sales/service/parts/body shop/office. You want to put all those people out of work?? Seems like a short sighted solution to not getting f'd by a dealer. The other option, and more simpler imo would be if you don't like the deal they're offering, walk away.
UK here. There are a number of non-dealer car retailers who have the windscreen price and that's it. You will not get One Penny discount. People have become so sick of all the haggling, fees, bull, that they are quite popular. Years ago, I went with my bro to buy a car and he wont stand for any nonsense. After the sales guy said 'I'll have a word with the Manager' the second time, he said, 'if you walk off one more time I'm out of here.' So, a few minutes later, he was 'Off to see his Manager' Rick just walked straight out, with the salesman pleading with him to come back in. 'Nope! Told You!' And off we went.
I worked at a car dealership for a short period of time when I was in college in the late 1970's. The training program was literally called, Putting the Customer Through the Tube. The customer was put in a hot claustrophobic office and made to wait unnecessarily. The idea was to wear him down. I was dismissed because I talked a young man with a pregnant wife and two kids out of buying a Mustang convertible that I thought was priced way too high. I suggested a sedan or station wagon instead. The sales manager overheard my conversation and sent me packing that afternoon.
OUTSTANDING dude! You did the right thing. And you will be blessed for it. I've heard horror stories. Senior citizens literally being locked in those little offices until they sign, etc. Once over 20 years ago, I went with a guy to buy a new car. It was one car only listed in the paper at a special price. The salesman said it had not been sold yet and they guy said he would take it. The salesman told him to look at it first and proceeded to drive us to their 'other lot' where the overflow of cars were. Some dark field. Once there, he refused to take us back until my guy agreed to make an offer on a more expensive car. It was cold and then freezing rain started as it was February. I told the guy 'you have 2 choices. Either you take us back right this minute or I get on my phone, call the cops and tell them you kidnapped us and are holding us against our will. You have exactly 10 seconds to make up your mind.' He took us back.
You just described the Judge Reinhold stereo shop scene in Ruthless People - talking the client out of a bad purchase, but toward a more reasonable purchase. Watch it sometime if you can.
Lol honestly bartering is fun. Even if you can't talk them down on the price, walking away is empowering because they thought they could getcha but they didn't.
Haggling for a car is easy. You don't. Here is the process to use. Step 1- Go to first dealer and find the vehicle you want to buy. Tell the salesman you want his best out-the-door price (this includes tax, title, everything) for the vehicle and that you will be paying cash. Only ever talk about the out-the-door price. When he brings you the out-the-door price, ask him if he can go $1000 lower. Whether he can or not, now tell him that you are going to his competing dealers around the area and if he has the best price then you will be back or call him to beat his competitors. Step 2 - Go to another dealer and ask them the same thing, then take $1,000 off the previous dealers price and tell them that this is the price they have to beat from their competitor. If they can't beat it, then say thanks and walk away. If they can beat or match it, then tell them you are still shopping around and going to another competitor to see if they can beat them. Step 3 - Repeat Step 2 for all the dealers in about a 4-5 hour radius around where you live. Eventually you will get the bottom price that any dealer can offer you because saleman will start making comments to you like, "They can't sell you that car for that price. They are lying to you." Tell the salesman that if the other dealer is lying then you will be back to purchase the car. I have done this with every car I have owned. My last vehicle purchase was a new Subaru Forester. The MSRP was $32,500 (not including tax, title, etc.). The first dealer's out-the-door price was $30,000. I took the car home for $25,000 after visiting 5 dealers around the Tampa & Orlando areas. We also financed the car and never planned to pay cash for it. When the saleman asked about me saying I was gonna pay cash, I just told him I changed my mind. This only works for new cars, but I have been doing this for about 10 years now for myself and my close friends. Saleman will be frustrated and mad at you all day, because in the end, they think the other dealers are out bidding them, but really you are just the one in control without them knowing. I was taught this technique years ago by a sales manager at Mazda that was a friend of my dads.
NEVER tell a salesman or dealership you're paying cash. They make really good money on financing and if you aren't financing through them, they will not come down as low on the price.
The last time i bought a car, they wanted me to finance it as opposed to paying cash. They said just pay it off after the first month. So idk how saying you'll pay cash is a selling point. Be that as it may, i'm in the market for a new car soon and gotta refresh my haggle skills. Dealers dont' seem as desperate to sell cars today for some reason.
Depends on how many cars they have standing and if they think you are a serious buyer or not. If you give off window shopping vibes they won’t waste time. If the car really is selling like hotcakes, they know they will get another buyer. You gotta hit the dry seasons.
I was on the Toyota lot the other day looking at an '05 Prius they were trying to sell for $5k.. pretty hard to justify that with an $899 processing fee. Pretty ridiculous lol.
First off, 7.9% for ANY car loan is robbery (even with today's inflation) but any financial planner will tell you that a 84 month car loan is a TERRIBLE idea. You'll be upside down in that car until the last 12 months of the loan.
@@ddjohnson9717 Bro considers a Bugatti or smth a high demand vehicle but doesn't understand that vehicles in demand = mass produced that sell hundreds of thousands quite comfortably so they keep the factory at full speed for years
@@fourdashergames bro not even, when these mfs are clearly circle jerking each other to try and squeeze every unnecessary cost out of the customer, u cant help but just sit back and laugh (on the inside) knowing their high school level psychology isnt gonna do shit, like when the sales manager came over to check on his associate, wildly tapping the desk with his pen, like that was some kind of distress call that he cant get out of this 😂😂 or when he already knew the "outrageous" price you countered, 26, cause he thought him spitting that out would get the point across its WAY to low, or was that what the morse code desk tapping was for 😂
@@fourdashergames Idk man doesn't seem like you're awkward in the way you seem to mean. Maybe you were a bit quiet / reserved but this shows you understand both conversation and business really well, not awkward at all.
@@Dexteritas55 I think the distinction there would be the internal feelings of awkwardness as opposed to an external projection of awkwardness, if that makes sense. With years of dealing with personal awkwardness some may improve on the external projection but still retain the internal. Just my thoughts anyway, every situation is different and "awkwardness" is a relative term
I love how he's negotiating the whole time like the $899 "processing fee" isn't pure profit for them, lol. The whole dealership model is such an embarrassment. Congrats on negotiating it!
definitely, to help pay the titling office fee, and storage of your private information. They needed tp dp thos because times before this they would invoice quite a few vehicles and they need to protect other aspects of their business. I mean, have you not seen the closing cost fees of houses nowadays?
I went to that same dealership looking for a Tacoma, the employees were rude to me until they asked what I do for a living. Once they found out that I’d be making good money, their attitude completely changed and they were all of a sudden willing to work with me.
New car sales here: the processing fee is for documents required to buy and own, title, registration, plates. The adjusted market value is the pure profit part. A lot of east and west coast dealers have that as an addendum because they know it will sell eventually. On the proposal we usually show 899/900 dollars because we over estimate and then the state tells us what it will be to register on the day of delivery. Hope this adds clarity
Nice work. Your commitment to always understanding their position of a fair market value, making a profit, was so perfect. On top of that, your babyface reply basically said " My fault, I guess I need to go home and save some more money for another year." Was perfect. You never changed your shifted your script. The dealership did, but you had them in checkmate.
It is kinda fun. Did this on a 2020 Camry Hybrid they advertised at $23,200, then it ended up at $29K+ out the door. The dealer had the vehicle since last August and couldn't sell it. He finally came back to me saying his cost was $27+K. I wasn't going to go higher than $25. It's not my fault he over paid for the car.
Dealerships are there to scam car buyers, don't buy from them unless you have excellent credit buy through ur bank, if he had 750 or above credit for sure he'll get a better offer than $26k
When you are willing to walk away, they will deal. I've had to completely leave the dealership, then I'd get a call later offering me less. Lol. But you can do better buying a used one so someone takes the initial depreciation hit. I'm not sure I'll ever buy a new car again
High demand, low supply. Then you look at the lots of a ton of these dealerships and they have the exact same cars on their lots for months on end or more.
I think this is a fantastic video for anyone who wants to learn how to negotiate in the dealership. Friendly, confident, firm, and not desperate. Well done.
It's a good video to check out, though he didn't strike me as completely confident and firm, rather, gullible to the typical car salesman's lines ( pressuring, attempting to get him to be grateful for how lucky he is, "below MSRP" ), being convinced it's a "great deal". In all fairness, on a bad day I could possibly do the same thing as the buyer. It's not a good thing. Which is why I watch these kinds of helps and videos to strengthen my skills as a buyer. Gotta do the work. Part of that is admitting when someone's taken you / when you've played the sucker. ( Been there, done that. With practice I got better at being in control of such business encounters, though if I'm not careful I can be buttered up again like a Thanksgiving turkey. )
He should’ve walked out $23k OTD tbh. 😂 he’s playing badly. I got a Volvo XC 40 2024 model. $330 a month lease 36 months 2.8k OTD. It’s a bad model Corolla 😂 all he had to say “I’m at $26k, either you can do it or you can’t. I’m here to buy rn. Tell me ball is in your court. They won’t play games. They want business they’ll do it”. Don’t play the game. Be honest
Seems like the trick is being totally ok if the sale falls through - that's where the power is. Don't buy when you absolutely need a car or else your emotions become a factor.
Absolutely. My first car I needed desperately as the car I was given (beater worth a few hundred) was screaming its last breaths; ended up getting completely fleeced by the dealer...but it was a honda and I knew as long as I kept it well maintained I was good for a long time. Fast forward to buying my fiances car and it was obvious to dealers I didn't NEED it. Got a great deal with addons thrown in for free after I walked from about 6-7 different offers from different dealers.
The number one no-brainer for any sale or negotiation: ALWAYS BE PREPARED TO WALK AWAY. Never settle for anything until or panic buy/pressure yourself into buying anything unless it works for you. If it doesn't, leave and keep looking elsewhere. It's truly pathetic that this previously golden rule is no-longer practised.
I went car shopping with a friend once. He wasn’t in need, he just didn’t love his car or the MPG and was interested in getting something smaller. We went to this lot and the car salesman was pushing him hard to make a purchase well beyond the amount my friend had gone in expecting to spend (which he’d told the salesman at the start, obviously the salesman didn’t care). After the salesman went to talk to his manager about the insane discount he was risking his job to give us, I had time to speak privately with my friend and I talked him out of the purchase because it was a) unnecessary, b) more than the car was worth, which he was aware of, and c) he only wanted to buy it because the salesman had told him there was a time crunch on the offer than the salesman himself had come up with and now needed to clear with his boss. Clearly the whole thing was just a technique to pressure him to buy or he’d miss out. I’d been sort of making discouraging comments the whole time, so when my friend decided not to buy the car the salesman tried to pressure him a bit harder while I kept reminding him that he didn’t need to buy it and there would be other cars he’d be better off buying since it wasn’t his dream car, etc.. The salesman gave me the dirtiest look every time, which really showed his true colors, and when we were driving away he even ran up to the car to offer ANOTHER deal. At that point my friend was now thinking more about buying something based on what he actually wanted and not something he sort of wanted and would only buy because of FOMO, so the salesman should have known it was over but he couldn’t let it go. I think he thought that because we were young (23ish) we’d be easy to manipulate, which I guess we almost were. But yeah, he looked at me like I’d killed his pet or something just because I used rational thinking instead of letting him dictate the logic of the decision. I get that these salesmen need to make sales to pay the bills, but it doesn’t justify the manipulation. Leveraging the financial desperation of the customer to make a sale, often times one that places them under greater financial burden than necessary, is pretty messed up. Especially when you consider that for so many Americans, a car is a necessity and not a luxury.
The script is always such a slog to work through. Took me an hour to get mu price last time, and that before COVID and the "adjusted market value" nonsense.
The other day I answered the dealer's cold call, they pushed hard to make an appointment because "the car you're interested in [online] is in high demand, we can't keep it on the lot" - so I go in there anyway a few days later like I had planned, and walked the lot to see. Lo/behold, they have several dozen of the same model and color including the one I was looking at and others. All of them quite dusty having been there a while. Oops.
We should create a culture where we are all sharing our experiences during negotiation, one of the main ways we get screwed is because this kind of stuff is all behind closed doors
Exactly! I bought my first motorcycle from a family member a few years ago, I tried to negotiate a price and it was awkward as hell and tough but it worked in the end. It's nice to see how someone else does it.
If this is interesting, imagine how a conversation would go as a single female trying to buy a car and negotiate. 10x more condescending, but I use it to my advantage because if they want to treat me like an idiot, I have more reason to not do business with them. I had one dealership make such rude remarks to me that I flipped the switch and ended up purchasing from them anyways, suing them for their illegal finance practices and won. So I got the last laugh there.
@@markbracey7711 The taxes in the UK push up the price, there is no 20% VAT in America, its insane what Brits pay for cars, but they do swap cars often as they want the latest thing, Many Americans buy a car and drive the wheels off it, I have a 91 4 runner and a 94 Camry.
I was in sales too, but for furniture. People appreciate it if you treat them like a person not prey. I've had tons of people come in knowing what they want. We just narrow it down and talk about what they really want to get. Sometimes I show them better things for a higher price, but I never forced them. Literally had people coming back to me because they liked my attitude.
I learned at an early age not to try and buy a car from a dealer. The way they act is astonishing. They must take advantage of so many people who are not savvy
It’s ridiculous. They put in every hidden feature they can. Weather tech type mats & cloth, no more dealing in the “buy back” money. They still try getting you in a loan whether or not you pay cash or not. I’m going back to an 80’s car where I can swap and rebuild an engine and trans in a week. This is just absurd. With the $ you spend buying it’s better to rebuild an old chevelle, mustang etc. It’s gonna cost the same and at least your car will increase in value
@@bookmarked-9771I hate shit they don’t even mention too, like I was buying a corvette from a dealer and Mf added digital license plate for 2k but didn’t mention it at all until I saw it on the paper and told him about it and he was like “oh yeah this is a new digital license plate we’re starting to sell in California now”
The MAJORITY of salespeople are folks from other places, working with very limited training, limited English skills, and very limited knowledge or experience with the typical middle-class buyer. I’ve been in the business since 1999 and I’ve seen it (literally) hundreds of times. It’s just the way it is. Sometimes buying online can make things easier, but not necessarily less expensive. These people sell and negotiate for a living, so getting over on them is nearly impossible. Unfortunately.
Having been laid off from a senior role in a failing tech company several years ago (and scared about money), I took a job with a marketing company who supports retail car dealers (working with GM's, GSM's, and Service Managers). My new employer invested a ton of money in me to get me trained up and ready to go, so I felt like I owed them a good ROI. Long story short, my resignation, without another job lined up, was submitted barely 6 months later. That's all I could stand. In all my years in business I had never encountered a scummier, more loathsome group of people than I experienced at the management level in the retail car business.
Same here- I resurrect poorly performing businesses and did two dealership fixed ops (parts and service). I turned them around by making them be honest- and they hated it. It worked though- increased profits bigtime. I saw the sales side work and saw all their books and heard their meetings and what they told people. Wow. After I left each dealership, with them making FAR more than they ever dreamed- they immediately went back to screwing people, warranty fraud, and selling useless shit to screw people. Now their profits are down again.
@@GenXPertChannel It's like people are naturally stupid or something. This sounds similar to a story I heard about African farmers being given all the tools to succeed but after the foreign management left them to carry on themselves, they fell back into poverty letting resources and equipment go to waste, sellign the seed instead of growing it and having nothing like before the help came.
@@Haddley333 to get you to stand up for your bruised ego by showing them that even if you have a baby face, you can still spend big money like it's no big deal as if you're a high roller.
I think it was freudian slip in that the salesman was thinking the guy was a young, inexperienced, easy mark but said part of his disappointment out loud.
Yes. Nobody wins in a shouting match. It just isn't a good thing ever. Just calmly get up and leave if you're being pressured into buying something you do not want nor asked for.
@@Iz0pen Haggling is a third world disease. I'm surprised anyone can deceive another under god's eyes, especially in a country as religious as America.
People hate the experience of buying new cars but honestly, the sleazy dealerships are only half of it. The other half is all the men that will invariably jump up and tell you what a chump you are and how they would have done this and done that and gotten this and gotten that, even if you actually got a great deal. Car buying is just one of those things men turn into dck measuring issues.
As a former salesman, makes me mad at comments like this. If you refuse to do your homework, if you're lazy and dumb, and you think you 'deserve' a fair price or good price, then you're living in la la land. Basically, you're saying you want equity, socialism in car sales. Those who work hard, do research and negotiate deserve better prices and value. Those who don't deserve what they get.
@@mutteringmale I don't know about socialism, but equity would be nice. Like how when you go to a grocery store, the price of milk is equal for everyone at the store regardless of how good your negotiating skills are and how familiar you are with the milk market. Also the OP didn't say anything about the prices. He was talking about the car buying experience. I have better things to do with my time-off than to spend it arguing with a lying, two-faced fraud for 2 hours. You should be able to buy your car on-line after researching the best price. Just like with everything else. And people who don't want to negotiate aren't lazy. They're just not getting paid to be there. You are. So can you blame them for not wanting to stretch that out? And how convenient that the thing you expect everyone else to research on their own time is the information you get handed to you by the dealership, so you don't have to do anything.
@@kesayo You can buy a car online if you want, but it won't be the best price. You can buy milk at one store for one price and the same milk at another store for another. It's all called "Capitalism". You're free to leave the dealership and go somewhere else, and try and get a better price. I"ve done that, but then I researched things like: Inventory on hand, 30-60-90 days? Same car other states, same car other parts of the state. There is a lot of research involved. Lazy people expect to get the same price I did with all my hard work, I get $1,000 for lazy or uninformed or slow gullible people to buy a car btw. Interested? I guarantee you will get more off the car than $1,000.
Last time I bought a new car, the salesman approached me and asked “What will it take for me to sell you this car today?” My response was “Can YOU sell me this car?” He said “Of course” We went to his office, threw some numbers back and forth and he said “Excuse while I see if he’ll take this deal”. I got up and followed him into the managers office and sat down. They both looked at me funny. Manager said “you can wait in Jakes office.” I said to Jake “you said you could sell me this car, clearly you cannot. So the negotiations are over, thats my number, deal or no deal.” He said no, I walked and two hours later I got a call to ask if I still wanted the car at that price it was a deal. Drove it home that night. I just hate the car buying process.
I feel like I’m watching Fargo - “Well - he’s never done this before, but being that it’s special circumstances and all, he’s gonna take $100 off that Tru-Coat”
If the car was in such high demand and would sell immediately after arrival, the dealer wouldn't have wasted so much time negotiating, having the same discussion over and over again.
It's all a game of bluff from both sides. You have to be prepared to walk away - but that's the last thing they want you to do. So really, you have the upper hand.
I think it's a near certainty that they would have sold this car to someone else for more. But the key is they had a potential buyer for a car that wasn't even at the dealer yet. A potential sale TODAY even discounted below typical is still a win in that scenario compared to a potential sale in a week or two.
Best way to deal is like this guy did. Agreeing that their price is fair but more than he wants to pay and be willing to walk out the door. Very respectful and straightforward.
Another five years of this and the Kelley Blue Book prices will start to warp in accordance with their industry wide collusion...which is what I think their ultimate goal is. The used car market is going to be all flimsy trash like Toyota's new line up of "V6-turbos CVT-Hybrids" for all sizes of vehicles. We've already seen V8's go nearly extinct and these V6-Turbos are NOT engineered to handle the pressures, it's like they forgot how to engineer correctly OR they're making them so wel-engineered that they break exactly when leases are up so they can't be put on the used car market...forcing people to "just get new". Every 5-10-15 years back you go, you're always looking at a "potential $10k repair" which always funnels you back to "just get new". It's their whole strategy from the ground up, now, and no one's calling it out as predatory to the point of damaging the GDP and the Mortgage/CarLoan-apocalypses that people have been shackled into with these lower quality cars and houses for slavery-loans and interest rates. It's pure evil that needs to be addressed at the Congressional level. Imagine the Boston Tea Party but with cars. THAT"S where this needs to go. **BOSTON CAR PARTY, NOW**
The vehicle initially stood at $29,379.56 but was ultimately sold for $26,800, indicating that its original price was significantly inflated. Always be ready to walk out.
I was proud of my wife when she bought her first car on her own. She took immediate control where I might have caved in. Women are not as horny about cars as men are.
Not hard to do when its grossly overpriced! Dealerships always start super high because they know this will happen. I think the most important lesson here is be OK with walking away no matter what and show them you mean it.
@@fourdashergamesman, how many times did you read “never split the difference” before coming in there? the cost/value of a new car is irrelevant to what you’re actually negotiating- Regardless of how people feel about the price tag. I think you budged only as much as you needed to, probably not a dollar more. A clinic in negotiating skills. Enjoy the new whip, I hear the modern QoL features are pretty nifty lol
The manager went out on a whim and approved did the deal for 26800 after saying he don't know how they did it to get down to 28800 LMFAO....LIERS!!!! All of em'
Naw he means they physically don't see them too often since it is the #1 selling car they sell before they have even left the factory most of the time. They are used heavily as fleet vehicles for a lot of travel-related companies.
Tips on buying a new car. 1. Go car shopping a month or so before you go to actually buy. Try dealerships you wouldn’t necessarily shop at 2. Set your budget and monthly payment 3. Go in on the day you’re ready to buy and know exactly what you want. Tell them. Don’t back down 4. If they have a better offer listen to it. DO NOT SIGN ANYTHING UNTIL UR FINALLY READY
I bought a used car recently and the dealer didn't even consider haggling. Not even a penny. AND they acted shocked when I didn't want any of the "protection packages" that would have added more than 50% to the cost of the vehicle. I love how the floor manager makes it sound like he's doing you a huge favor by letting you have it for MSRP.
To me, when they want you to get all these protection plans, I would say to them , "Well, you're basically admitting the car isn't good enough out of the factory. Is your product good? Cause if it is , you shouldn't need any extra protections"
The car market is absurd, and the taxes they throw on them is rediculous. Somehow a car goes from 4k to almost 7k after taxes and bullshit fees. Then they want to sneak their bullshit warranties in. It's like when you install an app and it already has all the predatory bullshit check marked, then you have to go through and uncheck them. When I asked the guy selling me my 05 Matrix "Whats that maintenance thing for 700 on there?" he pulls out the pamphlet and starts explaining to me how their bullshit is gonna help me get repairs on am almost 20 year old car. So I go "I'm dropping 5k on a used Toyota with 117k miles. Any repair I have in the next few years should be LESS than your warranty, and the car won't be worth anything by the time my kid is in school." Rediculous with the mark ups and the added packages. It's why people are holding onto their cars longer and longer.
The manager is always “busy” when their manipulative salesperson is trying to close a deal. They will make you wait for hours to frustrate you into either buying at extortionist rates, or just waste your own time.
"You'd be buying the car at MSRP" Like that's supposed to be a good deal LOL. Plus them acting like it's a privilege to be getting the "rare" hybrid. They can take all their "rare" hybrids and their "hot-selling" full electric cars and park them back at the vacant malls for the birds to poop on.
I don't work in auto but in medical, MSRP pricing is usually around 200-500% cost. Crazy margins even at MSRP and a lot of times there is a markup on top of MSRP.
Car dealers are S C U M B A G S. They keep pulling these “market adjustment” BS because dumbasses keep paying them. Always refuse to pay them and walk otherwise. Buy a different brand if you must. This is the only language they speak.
I think they are probably just playing an old game at this point but there really was a time about two years ago where I was trying to buy a Hyundai hybrid and had to call to about 15 dealerships in the Sacramento and surrounding areas just to find an Ioniq that wasn't being sold above MSRP. I never got a call back from any of the dealers I tried haggling with that had theirs priced $5000 above and the only dealer I found with decent pricing was one about 2 hours south of me in Stockton who was offering it for only $1000 above. Hybrids got extremely ridiculous during the gas pricing surges a while ago.
You have to understand that if this guy doesn't want it, someone else will gladly take it for MSRP. So really it's up to you if you want to wait around for a better deal or take it this way.
@TheBrandoDavidson Only in a few places is this true, and even then it’s not for long. People’s money is gone and their credit cards are maxed. I know car dealers. It’s bad and it’s going to get real bad.
As a former salesman, these are the best people to deal with, here's what I want, if you do that, I'll shake your hand. Usually end up with them happy with a "close enough" type deal. The easiest deals are other salespeople, cards on the table, here's where I am, let's make something work.
Yeah, it's great when a guy comes in and is willing to pay over MSRP (doc fees should be a criminal offense) and brags about what a great deal he got. I can hear the salesman swinging the fake bat and making the fake "bat hitting ball" sound because the salesman just hit a home run and has a nice commission check waiting.
@@fishingthemidsouth he paid 26.8K, that's barely even over MSRP at all, you know tax exists right and is legal? Everything is taxed. He got a literal MSRP corolla, MSRP on the cheapest Corolla is 23.5K. Title fees are real, taxes are real. That's a good deal
I was a car salesman for a long time and I can confirm your statement. These people absolutely suck to be around. They are almost all out of shape and play up this whole “alpha male” persona behind that glass while working deals- the way they talk about the customer is awful.
Man did the most important thing anyone can do when buying a car. Be quiet and let them panic, only talk when you absolutely have to. Sold cars for a while and that was funny to listen to good for you man 🎉
@@modernNeanderthal800 i believe he said he wasn’t going to keep paying for the full term so i assume he is going to pay it off before the interest would become a problem. And 84 at 8% is pretty decent for current times. I would also never recommend going above 60 months but that’s life sometimes.
if it was really that high demand the first salesperson wouldn't have come down that much that quickly. the car would sell on its own the next week/month
I sell bread. Imagine going to the grocery store and when you check out, the cashier says, since we only have 3 loaves of that bread left, it's going to cost you $1 more. Market adjustment and "processing fee" charges need to go away.
how often can you get the bread for less by negotiating? many food companies added market adjustment as well but they dont need to tell the buyer. also, different stores sell the same bread for different prices...dealer markup.
@@albundy3929 Other than the fact bread doesn't have an MSRP, you basically said exactly why those things need to go away. The reason stores don't tell the buyer for the market adjustment is because there's no set price for a specific loaf of bread, the price you see advertised is the price the store has determined what they're ok with profiting on bread per cost acquisition/sale price. The reason dealerships don't add the "market adjustment" to the price advertised is because it's bullshit and they want to add it in after you've gotten the mindset that you're buying that car but will throw it out the window to make the deal, because it's bullshit lol. The store actually buys the bread to sell, the dealership pays a fee from the manufacturer to have the vehicle on site in hopes of selling it and being the middleman of a deal between the manufacturer and buyer to snag a percentage of the profits. MSRP allows the dealer to always make profit, the manufacturer to clear it's stock and for vehicles to sell at a certain, competitive value to buyers.
@@Martin_Vail_Esq. Only on used cars, new cars are financed from the manufacturer/third party using floorplan financing that gives them options/incentives to move certain cars or easily trade to other dealerships if something isn't moving. It is basically leasing at the end of the day due to all of the options over traditional financing. (in-laws own two dealerships)
@@randomhero123 who cares if if a product has an msrp. Msrp now becomes law? Get a grip. If you don’t like ADM don’t buy it. Stop with. Ring the victim and walking around entitled. If you can’t afford it then earn more or wait until adm can be negotiated away or buy something that you can afford. Stop being a little B and grow up.
@@Azagthoth12average front-end profit for my brand on my market was -($275) before covid, and is nearly triple that loss now that the market is back to normal. $684 could make a huge difference in whether or not I can continue to pay the dozen of employees required to seek you a car.
This is so satisfying to hear, more people can really benefit from these recordings bc it's easy to get pulled around at the dealership when you don't know what to expect. - When the salesperson "goes to the back to see what they can do" etc. etc. it's a bunch of BS, they're just acting like they're meeting you halfway for something still marked up. - If you aren't in urgent need of a new car like this person, time is your greatest asset against dealerships. Drop your contact info, communicate your firm price, and some dealerships will sell at your price without you ever having to visit in person. - You can literally tune out what they say if they are not agreeing to your number, especially if they're throwing out monthly payments and APR bs, just stick to your OTD price, let them flap their mouths on what "deal" they're getting you, and just act like you didn't hear anything and repeat "my budget only allows me to buy for $XX,XXX"
i speak for myself but when i used to work at the dealership and would have to go back to the sales office to see what i could do, that’s exactly what i did, i would go to war for the customer who wanted to purchase and try to close both the customer and my manager to approve of the deal. not every dealership is out to get you. I worked at frontier toyota in valencia.
@@nicoindigodit actually is a battle between the customer and the house. salesman wants a sale with some meat, but has to get it approved. the guy or gal behind the big desk decides what the final price is. sales person is a go between. I've worked in service for 20 years. different places. I've met decent sales people. A lot more scum bags though. If prices weren't so high, I get a defined discount and none of the markup. I just refuse to pay a $400 a month payment for a basic sedan. Guess I'm gonna hit 300k in my current car.
This reminded me of when I was a little kid in the late 50s and I'd go new car shopping with my dad. More than once we were halfway out the door when the salesman came running after us with "the best he could do" offer. Usually the offer was what my dad could accept, but he always got the salesman to throw in something more. "Throw in the heater (yes, optional then in Michigan believe it or not) and mats and we've got a deal". It backfired in 1966 at a Pontiac dealer. After beating the salesman down for an hour, the salesman said "Look, this car has power steering and that puts it $100 over your price, $2600 is the best I can do!". My dad said, "Take it off then and we're at $2500!" and with that the salesman stuck his hand out and said "Deal". Now my dad figured it would cost more than $100 to remove it, so they'd leave it on, but he was wrong! When he picked up the car he said "This damn thing steers like a barge!" He pops the hood and uttered a few choice words that echo today whenever I see a car buying video. Different times!
So cringe, this guy is a moron, over pays for a terrible car, no clue how to haggle, and the person at the "dealership" sounds like a 12 year old girl. This is so staged and fake. You never buy new cars, always well maintained 4-6 year old cars. You are losing about $4k+ the second you drive it off the lot. Also, if your financing is anything over 2% you must have terrible credit.
"Before you leave, let me talk to the manager..." What a load of BS: an ancient system using a salesperson going back-and-forth to a manager (supposedly) just to wear the customer down until he/she just wants to get the damn car and get out of there. Such a frustrating waste of time. I tried using email to contact dealers for my last purchase, and only 1 out of the 5 even cared to reply.
The market adjustment did exactly what it was supposed to do. It gets you to begin negotiating at higher starting price so when you end up paying full MSRP you feel like you won LOL.
Exactly he got no deal. All he got was less then $500 under msrp. Look at the final paperwork they took off $2472 discount but still added the $1995 mark up lmao
Never bought or owned a new car in my life and I'm 34. Thanks for posting this and letting people with little experience see how this goes down. I appreciate how you handled yourself.
Hard to tell what kind of a deal it is based on the displayed numbers. I don't know what the MSRP was on the Monroney sticker. There's no line item that specifies MSRP. One thing is for sure - the $899 Processing Fee is a garbage add-on that's nothing but pure dealer profit. I wouldn't pay it. I was once at a dealer where they had a $200 line item for advertising costs. Like I'm responsible for their advertising budget. I was at another dealer that added pinstriping to every single car on the lot and charged $150 extra for it. I walked. And another dealer where all the cars had an alarm added on. Virtually ALL dealer add-ons are not worth it and are only added to squeeze more money out of you. If you're at a dealer that has garbage fess and they won't remove them then WALK. So what should you pay for? MSRP + tax + title. A "reasonable" doc fee is $100, but even that is unreasonable. How much do you think they pay the clerk who processes the documents? But I'd let it slide for $100-150 max. $200 if you're feeling generous. THAT'S IT. Anything above MSRP + tax + title + $150 doc is just taking money out of your pocket and putting it into the dealer's pocket. Just how generous are you feeling? They already have more money than you do. My recommendation? New cars cost way too much and drain your financial resources. Insurance is higher as well. Get a decent used car and invest your hard-earned cash. I drive a 2008 and I have ZERO car payments. I hope you can go another 34 years and still able to say the same thing. Except I guess at some point it would be nice to buy at least one shiny new car. Just remember you start losing money as soon as it's driven off the lot (it's impossible to "invest" in a new car). The best way to maximize the value on a new car is to keep it until it dies, saving your money along the way. And don't buy an all-electric vehicle -- the resale value is horrible. Last thing - if you manage to organize your life in such a way that you're flush with cash then good for you and you can ignore the above and do what you want!
I’m 48 and haven’t bought a new car. I’ve negotiated on a couple of house purchases though. The key strategy is to be prepared to walk away. That’s it.
The key takeaway here is BE POLITE! Notice he never got insulted at their price, never got bent out of shape, he simply said thanks, I will save up and come back. He gave them a legit reason to walk and they hate it. I use this exact technique and it works like a charm. Be prepared to walk and walk if they don't meet your price. Go in with a stupid low-ball then yes, they will let you walk but otherwise, keep your cool and don't get upset.
The car buying experience in general, is typically the worst purchase experience ever. The sellers make it the way it is by always trying shady tactics, being pushy, and misleading with pricing.
UK. I've watched a number of car-selling 'tuition' videos on here by a chap called Dean Richards. They are The most frustrating videos on the internet. Here, there's some haggling, but Nothing like the US 'grind 'em down and baffle them' system.
@@danteb925quit bullshitting, you guys are predators crawling around the dealerships. You could put a hidden camera on 1,000 different customers and the outcome will always be the same, pushy douche Salesmen trying to extract every last dollar out of everybody.
Not really. I saw the price of a car online, it checked out in person. They had no add ons like this one. I asked for $500 off just to ask. Dude said no and I bought it. They gave me NO hassle. Actually I hassled them to see if I could get more lol.
I fk'n hate car dealers, even when you're prepared it sucks. Soooo many head games they try to play. Oh by the way, once you come to a price, hard sell round 2 starts in the finance office. They even tried to get me to switch insurance to their preferred company X, who had salesman on site. They said I couldn't take the car without insurance (which is BS, if you have insurance you're covered just like you're covered on a rental). However to play the game, I got on my app, got the VIN, got it instantly insured.. the were just left sucking their thumbs.. oh ok, here's your car.
@@PleaseNoMoreFarmhouseDecor It's because humans by nature do not like silence in conversation (especially in the US). Leaving that gap is definitely going to cause the other side to say something, and it's usually something at their disadvantage. But unless you've been practicing this for years, you almost have to be a psychopath to pull it off correctly without showing your own uncomfortable body language. Unlikely this soyboy did it correctly - he just got a "floor manager" who was weaker than he was. But they have the last laugh at the dealership, because they still won. No one pays MSRP, and ADM (at dealer markup) and "processing fees" are made up bullshit they stick on that sheet so they can make you feel like you "drove a hard bargain" or are "a tough guy" even though "you have that babyface" and got a deal. You didn't get a deal. You got exactly what they wanted you at, minus the bullshit most other stupid people fall for.
Very Powerful? LOL. That floor manager read his ass like a book and merely lost out on the nonsense most even dumber buyers pay (ADM & Processing fees). If you pay MSRP for ANY vehicle, you. are. an. idiot.
That big silent pause near the end was awesome, people feel a need to fill silence. When the saleslizzard said, "make a counter," he signaled he was willing or able to go even lower. Perfect.
My conscience wouldn't allow me to be a car salesman. I recently bought a new KIA Sportage for my wife. They went from $33,800 to $25,210 in about 20-25 minutes. Sweet deal!!!
You've been had. KIA means Killed In Action ... don't get into an accident. Seen a 2021 KIA Sportage t-boned a RAV4 and the KIA was in pieces and several air bags were deployed and both people in the KIA Sportage were dead. The one person in the RAV4 only had chest bruises from the seat belt strap.
And if you don’t crash, the motor will blow up shortly after warranty. My ex had a 2018 KIA and it blew up in 2022 with 71k miles. 11k out of warranty…