I have watched this like 4 times in the past 3 days to get me pumped to take on the salesman!

@HonestFinance

5 жыл бұрын

Thanks for watching my video!! Here’s a playlist of all my car buying videos. These will help you prepare even more kzread.info/head/PLOmIpJDqCR-L6xTFH83iG-hGK9aDpy17r

@utube4vast

4 жыл бұрын

lmao ....

@lissaunique

4 жыл бұрын

JC Williams 😂😂😂😂 right

@youarerightboss

4 жыл бұрын

LOL

@michaelspence1854

4 жыл бұрын

Me too😂

Dealer: 13,000 Me: 600 Dealer: Did I show you the door?

@HonestFinance

4 жыл бұрын

That’s a low ball :)

@mjuberian

4 жыл бұрын

@@HonestFinance But he got it for that....

@SajatulA

4 жыл бұрын

Saynt Duke lmfaooo

@rexr3306

4 жыл бұрын

Dealer: 13,000 Me: 600 Rich Harrison: The best I can do is 5 bucks

@jcardosa02

4 жыл бұрын

Rexr Gaming LMFAOO

This man could negotiate the price of a big mac from $6 to $1.50 with fries and a drink

@Tellyawhat4

4 жыл бұрын

You'd have to pay me big bucks to eat that crap!!

@apatheticAnxiety

4 жыл бұрын

I'm picturing him standing there waiting for the cashier to speak to their manager, and then they just cave and comp him the meal that would have been their own lunch so that the next person in line stops complaining.

I never fold when negotiating the price. The one thing I always leave them with before I threaten to walk out, is say "Listen, I'm buying a car/truck today. What you guys have to ask yourself, is if I'm buying that car/truck from you, or some other dealer?" That really puts things into prospective as far as how firm I am about what I'm willing to pay. Then I'll extend my hand, say the number I want, then say something like, "C'mon guys, shake my hand and let's get this done". It helps that I have a credit score of over 800 and I've already secured financing through my credit union, so I know exactly what I can pay. But knowing I can save an extra $1000-$2000 that can go to a lift kit or exhaust system means I'm going to squeeze my leverage for everything its worth.

@mikexcanxjerk

4 жыл бұрын

FamousMortimer How do You secured credit union finance ? Like they already tell you how much you are approved for and the interest rate ? What if the car is higher than what you are approved for what happens there ?

@IzzyTheNose

4 жыл бұрын

@@mikexcanxjerk You would have to either put down more to "fill the gap", or negotiate the price down to where you need it. Which is another reason to ALWAYS negotiate the price, EVEN when the car/truck you want is already at a price that works for you. $2,000-$3,000 might not seem like a lot of money, but that's potentially 5-7+months of car payments.

@mikexcanxjerk

4 жыл бұрын

FamousMortimer so you saying get approve first at credit union then go the dealership dont tell them i got pre approved yet , negotiate the price down then tell them i have about 5k down to put ? And i have my own bank ?

@IzzyTheNose

4 жыл бұрын

@@mikexcanxjerk If you secure financing with the credit union, they'll ask what car/truck you're looking at, then you give them all the information you have (usually the VIN), they estimate the value, and based off of all your information (down payment/yearly income/credit score), they'll either ask how much you're looking for, or tell you the maximum they're willing to finance a loan for. If you secure financing from your bank, you don't have to tell the dealership anything. But if you'd like to give them the opportunity to beat your bank's APR, let them run your credit and negotiate with them if you think you can get a better deal. But you never have to share any information regarding what your bank offered you. It's better for you that they not know.

@NoName-ov8qi

4 жыл бұрын

@@mikexcanxjerk i have never ever told a dealer how much i was going to put down. I go to my credit union, with a budget i know i will stick very close to, then go to the dealership, find a car that fits in that budget and negotiate the price. I've done the online research ahead of time so i know the sticker prices before i even walk in the dealership. If the sales person doesn't want to negotiate an out the door price i find acceptable, i thank them for their time and leave

Can you just come with me to buy a new car? I’ll pay you 😂😂

@HonestFinance

4 жыл бұрын

If you’re in Utah :)

@MrMicroBeats

4 жыл бұрын

Honest Finance I live in Utah, is there any place you recommend to go to buy my first car

@HonestFinance

4 жыл бұрын

I really like ken Garf brand :)

@Dani-ladyy

4 жыл бұрын

Honest Finance can u come with me if im in colorado 😂😂

@mystikgaming2k

4 жыл бұрын

Honest Finance would you actually do that? 😂

I watched this video before heading to the dealership to trade in my old vehicle....thank you so much!!! I did my research so I was able to stick to my guns, call their bluffs, and negotiate like a pro. Out the door was 23% savings on the sticker price. And they TOTALLY tried to trick me with fees.

@HonestFinance

5 жыл бұрын

Glad it helped :)

The last car I brought I was pre-approved and knew what new car I wanted. Not only did I go to a dealership and asked for the bottom price several times. I also when to a auto broker and did the same. After a while I got the lowest price. You just have to be brave and willing to negotiate. Ultimately you save $$$

Here is my philosophy with car dealers: I want them to make money, but not off of me.

I’ve gotten the doc fee greatly reduced by knowing how much the dealer pays the state for their required, official forms. And then I say “when you go to Wal Mart, do you pay extra for the receipt?” And when they hem and haw, I’ll follow with “that’s just the cost of doing business!” It’s worked at both regular dealerships as well as luxury brands. Do not be intimidated to drive a hard bargain just because it is a luxury brand vehicle!

@HonestFinance

6 жыл бұрын

Thanks!! I’ve never gotten out of it. I’ve always had to pay the full $300 for it

@jerrylundegaard2592

6 жыл бұрын

Any dealer fee, such as document fees, are nothing but fake fees. A dealer sells a vehicle at price. Price includes all dealer costs plus dealer profit or loss. The minimal cost dealers incur to process those "official forms" is a dealer cost. Hence, those costs are included in the price. The only legitimate fees are those imposed by the government. Things like sales tax and registration. These are not dealer costs and are not part of the price.

@MrScott1212ful

5 жыл бұрын

They don't pay a commission to the sales guys on the fee, so they would any price reductions come off the sales price. I don't think it should matter to us, as the bottom line is the bottom line. Focus on the sale price otherwise we are just focusing on semantics that mean nothing to us.

@MrScott1212ful

5 жыл бұрын

I agree, but as I stated below, they don't like to give that away, so just focus on the sales price.

@citrinewitch1882

5 жыл бұрын

How do you find that out? 🤔

I like how you get straight to the point and keep things clear You earned yourself a subscriber

@HonestFinance

5 жыл бұрын

Welcome to the channel

“Car buying will Always Suck” at the beginning of every video is much appreciated because he is keeping it real at least

After listening to all this. I think I’ll just keep driving my old car.

@HonestFinance

5 жыл бұрын

Ya. It’s a bit of a process to get the right price ;)

@Alumnikiid

5 жыл бұрын

Sometimes your car is worth more to you than it is to the dealer. You can have a car with 150k miles, well maintained with new tires, brakes, timing belt, all fluids changed as per manual intervals. However to them the value of your trade in will not include all the maintenance you did. It would just be another 150k mile car to send to the auction.

@bushyfly2

5 жыл бұрын

Your right. I get 250,000 to 400,000 miles out of each of my vehicles. On average I buy vehicles with 20,000 miles on them and keep them till they are "DONE". I have never had a fair offer from a dealer.

@HonestFinance

5 жыл бұрын

I need try this route. Probably a lot cheaper :)

@khangdang2165

5 жыл бұрын

@@HonestFinance same thought ROFL

I actually got out of all the fees on my last purchase. The salesman told me it was going to be 15k dlls total, so I wrote 15k on the check. When they sent me to the finance guy, he gave me an invoice for 15280 (15k plus processing fees) and I told him I already wrote 15k on the check. The guy told me he couldn't wave the fees so I told him I couldn't change the check and that now it was ruined because I wouldn't buy the car for 15.3k and I was going to leave. The guy had an angry expression on his face, went to see the manager and came back with a revised price + fees totalling 15000

@HonestFinance

6 жыл бұрын

That’s how you do it!! If they’ll sell it, then the deal is still worth it to them

@HonestFinance

6 жыл бұрын

I’ve never gotten out of doc fee. I’m guessing that’s what it was :)

@jerrylundegaard2592

6 жыл бұрын

Your experience simply demonstrates those processing fees are fake. I had a similar experience, actually one of several, a couple of years ago. Negotiated a price for my daughter. The sales guy came back with a summary which had a $299 doc fee. I said no way. The dealer increased the agreed to trade amount by $299 to compensate. Actually better for us since we do not pay sales tax on the trade value, saved $18. Interestingly, I overhead another guy buying at the same time who refused to pay the fake doc fee. I think he also got it adjusted as well. FYI, most dealers who use the fake fee scam actually write the fee on the contract. They do this for a couple of reasons. One, of course, is to attach some sense of legitimacy to the fee. More importantly, they know they must show these fake fees were charged to everyone. If they do not, they risk being sued for disparate treatment. That is why dealers will never remove the fake fee from the contract but will adjust the price or trade value rather than lose a sale over a few hundred dollars. Now I always do what you did. I give the dealer my net price (selling price less trade value) and let them structure the deal to meet that net price.

@HonestFinance

6 жыл бұрын

That’s great advice. Thanks

@jimmosier3548

5 жыл бұрын

@@jerrylundegaard2592 those processing fees are very much real. -Ford Dealership Salesman

I have most definitely never paid a doc fee. The last car I purchased was listed at $6,900. I got it for for $5,400 out the door, tax, tag title, everything included. Yes , it was an inexpensive car. But it's a Toyota made in Japan that had 46K on the odometer at the time. Still runs great. Do your homework, and don't be afraid to be aggressive with the sales people. It's a game, play or be played. I talked trash about the car the whole time, told them there was another one I liked better closer to home ( kind of true)

It's really interesting to watch these as a car salesman.

Some really good advice I’ve gotten is to not tell the dealership that you have a trade in until you get close to the end of buying your new car. It will stop them from lowballing you

I'm a college student looking to purchase a car for the first time. This was incredibly helpful. You the real MVP. Thanks Jason :)

@HonestFinance

6 жыл бұрын

You’re welcome! I should have a bunch more car videos coming out soon ;)

@vickyandersen8660

4 жыл бұрын

Buy from a used dealer!

@magnetlacrosse27

4 жыл бұрын

Don't listen to this guy. I've sold cars for 5 years. The doc fee has to be charged to everyone. Even employees have to pay it otherwise it would be considered discriminatory practices. Also if you want to buy a car at a certain price and the dealer agrees it doesn't matter what me make off of it. It could be a car that was someone's mother who died and just wanted to sell it while they were In town or we might have paid too much for a used car just so we could move a new unit .Doc fee's have a cap in every state . Florida has one of the highest doc fee's. It doesn't vary from dealership to dealership. It varies state to state . This guy has no idea how to actually buy a car except for his first point of using Edmund's and truecar to get a fair value on the car.

@mikexcanxjerk

4 жыл бұрын

magnetlacrosse27 why can't ppl just use credit union and call it a day smh, better interest rate , better terms , better monthly payments

@ajred8870

4 жыл бұрын

Id never buy from used car dealerships 😂

Whatever u said in the video it actually happened with me exactly step by step. Salesman back and forth and finally manager showing up. I held my grounds.

@HonestFinance

5 жыл бұрын

Good job. It’s a waste of time, but you’ve always gotta do it

I lucked out. The Jeep I looked at was listed online for 30% less than it should’ve been. I came in to the dealership and all the other Jeeps were priced 30% more than the one which was listed online, and the one online was the higher trim level. I mean it was WAY lower than all the others sitting next to it, like there was something wrong with it. Something didn’t jive. They looked at the ad then said they apologize but their ad people prob messed up and it was a typo. They said they obviously can’t sell for that due to a typo. I said by law (I had no idea if it is law) that you have to sell it for what you advertised it for. They spoke with their manager and said I guess we kinda have to offer it to you for the ad price but that ad is being taken down and listed for the correct price today. I wrote them a check and said thanks lol. I looked up blue book value and couldn’t believe it. I just saved over $10K. Lucky me.

@HonestFinance

6 жыл бұрын

I don’t think it’s a law. Just good, honest business if it really was a mistake.

@autumnonpurpose

6 жыл бұрын

Honest Finance it’s a law

@daltonhayden1804

6 жыл бұрын

Most dealership websites have a disclaimer to cover their butt in this situation

@khafo4143

5 жыл бұрын

Dalton Hayden that's not how that works. Don't be fooled by this. NOBODY can exempt the elves from a law with a disclaimer. A lot of businesses try this and often times get away with it. If it is the law it's the law, and no amount of disclaimers or excuses will change that. Or can you carry a sign saying anyone who looks at me gets a punch and there's nothing you can do about it?..... So don't let them fool you.

@everybuddy5924

5 жыл бұрын

Not if they have a disclaimer. The advertiser, the marketing consultants ect may have made the mistake. Retailers will always put up signs that a sale item was mispriced in their current ad, example a $800 item on sale for $80 and that the actual sale price is $725 or no longer being offer as a sale item. But please correct me if im wrong, with state statue that makes it illegal not to sell at the error price as well as the state you live in since the laws can vary state to state. In most cases if the mistake is a couple dollars, the retailer will sell at the advertised price, but will then make the correction before any other customer can buy at that price. It is one thing to think you know the laws and it something else to actually know the laws.

About the documentation fee. I’ve always negotiated everything with the salesman and GM ahead of time knowing full well that they will try to hit me with that in the office afterwards. When I’m done dealing I say “ so this is the final price I’ll pay correct?” They always say “yes,of course, that’s what we’ve agreed to”.so when I’m now in the office I know the buggers are going to show me the contract with the already embossed figure in dark black ink ( it’s always really prominent like there’s no way out of it. In Canada here it’s always 500 or 600 dollars ) They will say “oh, we have to collect that, it’s our policy “. So now I go “ get my salesman up here” . Do you remember when i asked and you assured me that the final price I will pay was what we agreed on? Then I get a little pissy with them “ what’s this shit your trying to pull? They ALWAYS give in right away! Remember folks, DO NOT give in. You are about to earn 500.00 with ten minutes work. That’s the way I look at it anyways.

@HonestFinance

5 жыл бұрын

I agree. I now have them compensate in another area to make up for the fee

100% True, followed a similar layout from another youtuber. Gave an offer, got a laugh back, and said "Take Care" and walked away, as soon as my hand hit the door handle, the dealer called me back and said you "have a deal!" Can't be afraid to walk away.

@HonestFinance

5 жыл бұрын

Good job!!

@fallback8314

5 жыл бұрын

LOL this is such BS....these are happening with cars that ARE NOT in demand LOL...this is SO not possible with a E63 AMG S Mercedes Benz or a BMW X6 lol

@kylebarreto5749

5 жыл бұрын

@@fallback8314 lol. go ahead baller

@fallback8314

5 жыл бұрын

@@kylebarreto5749 has NOTHING to do with ballin. i'm calling into question the supposed effectiveness of these bluffing tactics. go try that at Mercedes Benz dealership with an E63 S AMG or at a BMW dealership with an X6 M. if those bluffing tactics REALLY work (lol and don't hold your breath at THOSE places) you'll end up with one sweet bad ass ride

@kylebarreto5749

5 жыл бұрын

@@fallback8314 back to my original post, this tactic has worked several times for me, a no I am not talking getting 10K off a high-end 70k truck. We can go in circles so I will leave it at this at this last point which is WHAT THE VIDEO IS trying to say. DO you research on KBB, get the true "closest" trade in value for your vehicle and do your homework on what you are looking to get should be worth. I aim for Fair to Great deal (1K-3K off). If the DEALER has the vehicle ridiculously priced there is wiggle room to negotiate unless it just arrived. The dealer has bills to pay also and does not want to hold the vehicle in their lot for over a month or 2. If they don't want to move, YOU AS THE CONSUMER have the power to walk away. Hence the entire point of the video. Final Note: No it was never said this tactic is full proof and the dealer will beg you for your business no matter what price you throw at them

Thank you to everyone for sharing and liking this video. Here's a link to my preferred auto lender, Lightstream loans if you have any interest. Thanks. bit.ly/auto_loans_ls

I normally asked for the "out-the-door" price and negotiated based on that price. For example, if they agree with $23000, then all the tax and fees should be included in that $23000. So I don't have to worry about negotiating the fees.

@artdogg50

5 жыл бұрын

That's what I did on my best deal. I really think that is the best thing to bring up.

@angelicazampallo4801

3 жыл бұрын

Wait can you explain this to me more

I got out of the doc fee on the last car I bought. I just adamantly told them that every Google search result will tell you that it's a BS fee that's just a way for them to make more money off of you (and their fee was over $1K). So they removed the fee (my sales guy was in shock). And then failed to disclose the extended warranty they sold me, and marked up my interest rate by at least 2% because I was able to refinance the next month and halve my rate. You win some, you lose some, but in the end you've gotta be bulletproof or they will screw you over one way or another. Keep running the numbers in a loan calculator and if you're not getting the same monthly payment off of the sales price, then question everything.

@GoogleAccount00

2 жыл бұрын

👏🏾👏🏾👏🏾 atta girl

Use the doc fee as a negotiation tool. The dealerships make it seem like the doc fee is non-negotiable but it is and instead of paying it, use it as a way to lower the total price of the automobile you are purchasing.

@ttbeezy

4 жыл бұрын

How would I use it to lower the price?

@1337kakash1

4 жыл бұрын

ttbeezy maybe he means offer like 300 less than what you were going to pay, so inward of 13,900, offer 13,600? Lol

@steviesevieria1868

3 жыл бұрын

@@ttbeezy out the door price is the only answer. Just educate yourself on that and use it.

Here’s a link to my Car Buying Playlist if you wanna watch more videos. kzread.info/head/PLOmIpJDqCR-L6xTFH83iG-hGK9aDpy17r

@andrewhookano3801

5 жыл бұрын

The destination/document fee is federally regulated by the US government. If you want to know more reach out to me and I can explain.

I bought a used Dewalt drill yesterday. Asking price was $40, I offered $20 the salesman came back at $30 I added a big flat head screw driver $5 value. They ok the deal

I love this. We the buyers have the leverage. Always remember that there is the option of going to another dealership.

@HonestFinance

4 жыл бұрын

Very true

@nevergiveupnevergivein7655

4 жыл бұрын

@@HonestFinance 😁

Thank you so much. I stumbled across this video, and I'm so happy. I'm currently in the market for a car, and holy biscuits, car dealerships and the people who work there are vicious! And you're good looking too.

I found this hysterical when this happened to me15 years ago when I purchased my Chrysler 300M special. They wanted $35,000. I did my due diligence and research and also used Consumer Reports and had a check from the bank in my pocket. Just like you stated, I told them is what I'll pay "out the door", meaning tax and licensing as well. I saved over $5,000 on the purchase, and the sales guy kept doing just as you have stated trying to wear me down. When I noticed what he was doing, I knew I had him by the balls.

@jerrybnasty5115

2 жыл бұрын

Did you ever let go of his balls?

@benth162

2 жыл бұрын

@@jerrybnasty5115 Nope, he sold it to me at my price. He even went to the supposed manager and then came back and asked if I could just add another couple of hundred dollars I would be willing to give. I said no and that was it. That was 17 years ago, and we have since given the car (in almost like new condition) to a young relative who was headed off to college. On another note though we also went to an Acura dealership and they flat out said NO DEALS, because at that time Acuras were a hot item. You lose some and you win some.......

You can get out of a document fee by having them reduce the price by the amount of the fee and being prepared to leave just before you sign the paperwork

@HonestFinance

5 жыл бұрын

Ya. Add more to trade or take less of the price. I’ll get out of it next time

I see a lot of people struggling with these problems, 1. What ever they are asking low ball them by 10 percent so a car is 20000, say I can pay 18000 no more. When they tell you about fees which they will. Say no thanks and then leave. If they don’t call you well hey they got another sucker. But they will likely call you later and offer it at your offer. Another thing I think people should take into account, cars depreciate in value even if you never put another mile on the car. It will keep losing value. I have heard a car loses value when you buy it and drive it off the lot. Trucks lose value also but not as fast as they are more usable and have more need from people. Cars have a drop off period around 3-4 years. Meaning, a car is worth 40000 new but after a car has very low miles maybe 20k or fewer and after 3-4 years the car will now be worth 20000 Hopefully I helped someone

@GoogleAccount00

2 жыл бұрын

You did, thanks!

As a former car sale person, I loved my job it was fun because u meet the nicest people selling cars. However, if u called me asking for a price i was NOT permitted to give u price because we were paranoid the customer would take that quote and go to the next dealer and never let the customer know the dealer invoice price.

@HonestFinance

5 жыл бұрын

Good point. Thank you

Not sure why this video is demonetized... Once again, good delivery. I tell my girls, “If you only buy what you really, really want then you’ll always be happy with your purchase.” Your advice indirectly makes a similar point. Stick to the number you believe is fair, and move on if the dealer doesn’t budge. I appreciate the step-by-step details, by the way. Funny how this kabuki theater always plays out the same way...

Really great. I appreciate there was no chirpy music in the background or weird little effects. Straight up and fair. Love it. Heading in today to check out a new car. Wish me luck!

@HonestFinance

4 жыл бұрын

Good luck!!

All the fees are negotiated into the out of the door price. In other words, subtract the fees (ask ahead of time what they will be) from your target price.

I'm still driving my 2000 sienna (with 296k mileage) with no major issues. When I'm tempted to buy a new-to-me car, I usually ask myself this question, "Should I pay for at least 10 to 15k for another used car and face a higher insurance rate or just pay for the repairs on my Sienna and just keep on driving with no monthly payement and maintain my insurance rate? " The latter always win.

@marcussavina2726

2 жыл бұрын

You're driving a car that was built when I was in 8th grade

I’ve never been able to get out of a doc fee but I’ve said I’m not paying more than $100 for a doc prep fee because there was more paperwork on my house and the title company didn’t charge me more than that on doc prep and they dropped it down to $100 from $250

I am sure who give thumbs down They must be car salesman and dealership manager

@HonestFinance

5 жыл бұрын

Probably. Hope you gave it a thumbs up 😎

@juangimenez9950

5 жыл бұрын

Not really, on the other hand I sell cars, and I agree with alot of what he says, but you also have to understand that he's not 100% accurate, though techniques of how to negotiate are correct, at the same time, especially with used cars, theres so many variables, that affect the price, and the sellers cost. For example, if I were to just get rid of a doc fee, the dealership would have to enter a legal battle with everyone that's purchased a car from that location. And just so everyone is a aware, the doc fee is legitimately there because we do all your paperwork, do you go to an accountant and expect him to do your tax paperwork for free? No. Its the same thing.

@johnsims5627

5 жыл бұрын

Or people who are educated, experienced and informed.

@NoName-lm7nk

5 жыл бұрын

Juan Gimenez BUT why should doc fee be specifically passed on to costomers? Its a cost of doing business. Do you want me to pay for your rent, paper, ink, electricity too?

@dh1163

5 жыл бұрын

@@juangimenez9950 Yes and No. Unless there are special circumstances, or you own a business or have a lot of assets, (or are lazy and don't like to read) there's really no reason to go to a tax preparer. What further invalidates this "doc fee" bs is the fact that it's not regulated in any way. You can get wildly different "doc fees" for similar deals / vehicles from different stealerships. That's what makes the doc fee highly suspect. Not that it exists. I understand that they're just "doing their jobs," blah blah blah. But add the fee into the cost and stop insulting people's intelligence by ballooning up the numbers right when the buyer is ready to sign. Most people, after spending hours doing this "highly unnecessary dance," just say fk it and bend further over. EVERYTHING is negotiable. Some people just don't have the will.

So, FYI you can find invoice numbers on new cars. You will know how much they paid for the car. You also know there is a dealer holdback of 3% by most car manufacturers. That is more money they are making. Then there is the rebates and incentives from the manufacturer. Subtract that as well and you will have the absolute bottom price. Dealers got to eat too though so if you give them 500$ over THAT number you should be happy. 30,000$msrp car has 1500 rebate and 2000 dollar dealer incentive. Actual invoice price might be 27,000. A 3 percent hold back of 900. So 27,000 - 900 - 1500 - 2000= 22,600. Now you can ask below that but I would just start with that number in negotiating and not go over 23,000$. They are still making money on this vehicle at 23,000.

@HonestFinance

6 жыл бұрын

I agree. They make an easy $500 and the depreciation on your car will be far less because of the great price too

@jerrylundegaard2592

6 жыл бұрын

Dealers pay far less than invoice. Both dealers and OEMs know many folks use invoice as price point. As a result, dealers and OEMs concocted a scheme of, as you note, hold back and various incentives many of which occur after the vehicle is sold. This scheme makes invoice meaningless. This scheme is why dealers often sell at or below invoice and still earn a hefty profit. Your calculations are 100 percent correct.

@zxaviermiller4767

6 жыл бұрын

You guys are right. Depends on the dealership, but as a car salesman, I don't make any money invoice and below. $50 mini. Being a 20 yr old, I'll tell people that being a car salesman isn't what it is anymore, from what I've heard. I've had customers tell me "Oh I bet you make great money." If I sell 15 cars a month (good month, usually less than that), mini on all that's less than $1500 a month lol. But we're the evil ones, making a living is evil nowadays. Let's go to Best Buy and buy a TV marked up 500% and not say shit about it.

@jerrylundegaard2592

6 жыл бұрын

I always tell folks it is not the car sales person who is the "evil ones." They are just doing their job. The true "evil ones" are the F&I managers. Those border line criminals will do virtually anything and say virtually anything to sell a litany of grossly overpriced items of dubious value and will almost always attempt to pull the dealer reserve scam on unsuspecting customers.

@JMP350

6 жыл бұрын

You should make the video. Great comment. No one ever mentions the dealer halfback cause they don't know.

I love how this video is just straight and to the point. No need for the ridiculous openings with a whole story and/or scenario that explains the problem the video is trying to answer. This video is just like, "Hi, here's the problem and now here's the solution" Perfection. Also thank you for not trying to add stupid jokes that just take up my time and frustrate me every other sentence. Happy new subscriber to learn more on finances from a straight forward channel, keep up the good work!

@HonestFinance

5 жыл бұрын

Glad to hear that. I hate long intros too, so I just say what’s in the video, and then move on. That’s how I write all my scripts. Welcome to the channel :)

@notsojoerogan

5 жыл бұрын

@@HonestFinance Could you do a future video on charge cards like American Express. Such as the pros and cons, who they're beneficial to and in what financial scenarios. I keep getting recommended to get one but also not to. I think it'd be a good piece especially with the way you script the videos

@HonestFinance

5 жыл бұрын

Here’s a playlist of all my car buying videos if you have any further interest ;) kzread.info/head/PLOmIpJDqCR-L6xTFH83iG-hGK9aDpy17r

@HonestFinance

5 жыл бұрын

Funny you asked about Amex. I’ve thought about doing a review of the blue cash everyday cards, but I wasn’t sure how much my audience was liking them so far. Here’s one video I’ve got on the 3 best cash back cards. One of them is the Amex everyday. kzread.info/dash/bejne/fa11wbSyl7nIico.html

@HonestFinance

5 жыл бұрын

And thank you for the video suggestions. Keep em coming, cuz I love to hear what my audience wants

its a b/ s game...2 3 salesman and then the finance guy.... its the worst purchase procedure youll ever go through.... its easier to buy a house...

@HonestFinance

6 жыл бұрын

Agreed. Maybe Tesla’s business model will change the industry

@ckm-mkc

5 жыл бұрын

You have to treat it as a systems or a game and figure out how to work it. Patience, timing, research and sticking to your guns are all very important. I would also say that figuring out how to make this process work for you will also help in other parts of your life as most things are a negotiation at some level. And if you just don't want to deal, use a car buying service.

@dennissvitak148

5 жыл бұрын

Not if you are a true numbers guy. With a complete lack of modesty, I do numbers in my head faster than they can do it with a calculator. This helps..and I try to intimidate them as much as I can with this.

Finally, a KZread channel that actually stated all the helpful tips and facts of all the information I need to know without listening to someone who’s yelling, cursing 🤬 etc. New subscriber here

@HonestFinance

4 жыл бұрын

Hey thanks !

Thanks for the tips. 1. Many people get little for their trade-in and would be better to sell it separately. 2. Buying from a private owner is probably lower cost.

@HonestFinance

6 жыл бұрын

Yes it’s better, but if it’s worth enough the tax savings can compensate. Plus, selling privately can get hairy if the cars worth a lot too

@HonestFinance

6 жыл бұрын

Buying used privately has its pros and cons. Probably cheaper though

@imagreatguy1250

2 жыл бұрын

@@HonestFinance thanks for input bro 👍

Renegotiate the price of the car minus the doc fee. Another good trick is to ask about the doc fee when negotiating the price of the car, if the doc fee is $300 I minus that from my final offer. The doc fee will always be there. So keep that in mind when negotiating cost. Dealerships really hate when customers involve the doc fee with the car price 😂😂

@HonestFinance

6 жыл бұрын

Thanks for the tip ;)

One thing to think about is that with used cars the dealer is much less open to negotiations. Each vehicle is unique due to the mileage, customization, etc so when they see you are attached to a used car, they know you won't walk away because it will be hard to find another used car with similar specs. There's a few things like this I've learned because my family does car dealerships.

@HonestFinance

6 жыл бұрын

Good point. Apples to apples though, the consumer has to do his part to get the best deal available

@RockofAgesTheBand

5 жыл бұрын

I have recently retired due to medical problems after working 37 years as a trucker in Southern California and am now on a fixed income. I've been scouring every avenue for a used Suburban or Yukon XL (With plans to be Moving to a rural area of Tn. So I need 4X4 ) Searching for The best,newest,lowest mileage car with the best options at a certain "Out the Door" price limit.I found what appeared to be the Perfect Vehicle for me in Las Vegas Nv. ( 5 1/2 hour drive from me) It was marketed on Auto Trader for 23,600. It was a 75th. anniversary (Badged) White Diamond coated 4 wheel Drive with most every option that I wanted. I went back and forth with this lot's "Internet Sales Pro" for over 3 weeks trying to , Number 1 - be sure that the car was California Emissions Compliant, and number 2 - work the best out the door price. The first number she gave me on 23,600 was...$29,900.00 OTD. I told her that even if I bought the car at full asking price , and at California's almost 10% tax Her dealer fees were ridiculous for an 8 year old car. She went back and forth to her "Mgr." Who I learned was the lot owner and Got the price down to 26,000 OTD. I figured they'd be willing to negotiate the price even more once I got through inspecting the vehicle so I actually drove all the way to Las Vegas to drive the car and it was nothing like what was in the photos nor their description of "Excellent shape inside and out" which is to be expected on an 8 year old car, but there were a number of Small items that had been neglected (drivers seat had a broken gear and did not function fully, pass. seat had foam exposed, paint had chips . dash had small cracking , broken ash tray lid, tires at about 20% life left on the tread etc etc. Anyway, I did test drive it and when I got back to the lot I listed the problems that I saw on the car and offered the owner $24,000 TOTAL. He rejected my offer , saying it was a very rare car and would not go below the 26,000 the sales person had quoted me over the phone. ( I assume he figured that if I had driven that far to see the car I'd buy it at whatever price he wanted (as you said) I told him I was going to step out to confer with my Wife...Grabbing her hand and walking out the door towards our current car to leave. The sales person had followed us out the door saying "Wait , I can talk to my Mgr" I told her that I had just done that and we got in our car and turned around and headed back to our home in California. Yep, After 6 weeks I'm still scouring the ads and internets looking for good a vehicle at a good price and not willing to let some slicked back haired sales scum take advantage of me or my Family. Something will show up...It always does.

@HonestFinance

5 жыл бұрын

Very true. Thank you

@lancevivianmarsh4274

5 жыл бұрын

Bought a 5-year old Lexus GS300 with low mileage from a Toyota dealer here in Canada. Refused the 3-year Toyota warranty offered to me, but instead asked for the third-party 3-year warranty that will reimburse the up-front fee of approx. $2,450 (CND), but only if that warranty was never-ever used in that 36-month period. I purchased the warranty only to cover a catastrophic malfunction like a big motor job or transmission rebuild. Needless to say, Lexus lived up to its stellar reputation for reliability. I got my money back within 3 weeks after the application form was sent in. The Lexus is a 2002 with 266,000km on it, and the motor just purrs, no rust to be seen, even though we live less than 100 meters from the ocean. Even the exhaust is original. The year before we were made aware of this type of insurance by a KIA salesman when my wife bought her 3-year old KIA Sorento with 79,000km. Never used the warranty, and got the money back ($2,500). But the caveat was that the window for the refund application was 6 weeks only, once the 36 months warranty protection were up. The same salesperson just couldn't believe that we had not missed the 6-week window. interestingly, we received also 5% interest for those 36 months!! Now 270,000km and it works, but the rust problems cannot be ignored.

@lancevivianmarsh4274

5 жыл бұрын

Oops, typing from my wife's computer so her name shows up (Vivian)

I liked this episode. I have purchased perhaps 20 new vehicles, and agree with everything you said. I am also a big-time numbers guy, and I LOVE to see the fear in the salesman's eyes.

I think that at the beginning of this video you hit nail on the head. Call every dealer and go to the one who shoots you straight numbers prior to arriving. You can tell who is bsing and who isn’t.

@HonestFinance

5 жыл бұрын

kevin woody Thanks ;)

@kevinwoody5151

5 жыл бұрын

Absolutely sir! I’m actually a salesman but I personally believe that we are all salesman and your video does a great job of not demonizing profit, but just presenting a fair deal. I really appreciate it and I hope my subscription matters!

@HonestFinance

5 жыл бұрын

kevin woody Thanks for your comments :)

It's only a FIVE step process. 1) Get the trade in value of your car, before anything else. In writing. 2) Determine the purchase price of the vehicle you're purchasing, in writing. 3) Negotiate the interest rate and number of months financed. 4) Use the differential between the trade in, and purchase price, to get the EXACT amount financed, adding in tax and other minor charges. 5) Using your numbers, go to an on-line finance site, and determine PRECISELY what your monthly payment should be. Compare this to what the F$I (Finance and Insurance) guy tells you. If there is a discrepancy, walk away.

@Buckeye2Orange

4 жыл бұрын

✔️ Better yet, pull & print your own Carfax and comparables off Edmunds. Both for your trade in and the car you want to purchase. Everybody says be willing to " Walk Away". I say Be willing to " Deal & Stay". If dedicate a WHOLE day. I might leave and come back. I make them do the math... stating YOUR " Out the Door" price. Most will tell you the must add Tax & This & That. " I'm willing to wait for you to figure out the Line By Line numbers as long as they add up to This $_____. To me that's a Good Faith Purchase. Heck I gave you a nice Chunk of My Time.

my parents are looking for me an accord ex and we found one at a dealership a town over. catch is, it’s not yet on the main lot [they got it in as soon as we pulled up] and salesmen said they have it valued at 21000 but will probably let it go for 19500. everywhere we’ve looked online has them priced between 16500 and 18600. its gonna be a messy talking them down but i’m ready.

@HonestFinance

5 жыл бұрын

You can do it!!

I’m working on a deal now. Asked one dealer for the invoice. They denied me it and laughed and said it has no relevance to the situation. The other dealer is offering their invoice. Shows me which one is honest and will help me get a great deal so screw the other dealership. They said they aren’t allowed to show a dealer invoice. Bullshit.

Lol I'm not paying for the sales managers Porsche and cocaine habit.

@NeverTalkToCops1

4 жыл бұрын

The store owner usually has a large boat.

@tac2oo7

4 жыл бұрын

How else will he afford his 4th summer home's mortgage? He can't cut employee benefits, he already doesn't offer those!

Personally, I value my time and money. I will never go into a dealership to negotiate, it's a waste time. Here is my story on how I purchased a new 2018 Toyota Tundra CrewMax Limited back in 12/2018 (short version). From the seat of my office, I researched Truecar.com and Autotrader for going car prices. Understand my cost expectations, I sent out an inquiry to 7 local Toyota dealerships and had them bid for my business. I used their pricing to negotiate over other dealerships. Yes a few dropped out, but most hung in there but ended up getting $6000 off MSRP. I also used my local credit union to get the lowest interest rates as well. All in all, I probably spent a total of 2-3 hours over a 2 week span and 2 hours at the dealership to complete the deal. The key is knowing the exact model/specs you want or you'll end up changing your mind and not save as much. I hope this helps.

@jamesec1949

4 жыл бұрын

You’re doing what’s called a dutch auction. I sold for a long time. We never got involved in that. Never.

@NeverTalkToCops1

4 жыл бұрын

Why do you trust "Truecar" prices? Why?

You had less than half the amount of subscribers that you do now when I first saw you! Great work. Your hard work is paying off.

@HonestFinance

6 жыл бұрын

Thanks. I’m Working hard ;)

Dunno why watched this video but I did help my father negotiate a car deal. When I recommend my dad to walk away from a ridiculous deal, he agreed with me, we both started to walk away then the dealers stopped us and called their boss who gave him the deal I recommended since he had great credit. Always take someone who may know about purchasing vehicles and knowing how to be sort of assertive.

If you have the ability to walk away you'll be fine, if you dont you'll get hosed most likely You do it once every 5-10 yrs, these guys do it everyday, who's gonna be better at this?.......research as vid says and walk out friggen door if you cant get a fair deal....

Also wait until the end of the month around the 28th and the dealers are more motivated to sell and give better deals to meet quotas... ask to look at the vehicle invoice if its a new car as you can see things like delivery fees they were charged which is a fee passed on to the consumer and often jacked up. Most delivery fees are 700 to 1,000 and have seen dealer try to charge 2500 which is just another trick they use if they drop the vehicle price they jack up other fees to make it back.

@HonestFinance

5 жыл бұрын

So true. Thanks for the comment

I've flipped cars for 30 yrs and I'd say mostly good advice, but for a couple things. 1.Refuse to pay ANYTHING extra in the finance office-it's all a ripoff. 2. If you have a trade in, don't even mention it till after you negotiate best price on what you're buying. After that tell them you do have a trade in, and stick to what you want, don't give in to their high pressure. If they don't agree just get up and walk out, then see what they do. Hollywood actors could take acting lessons from car dealer as far as lying, etc. goes. I go to dealers just for kicks to beat them up with no intention of buying anything.

@HonestFinance

5 жыл бұрын

Agreed :)

@creekhed697

5 жыл бұрын

Yup.... avg "extras" at my old dealership was ~ $2700! THAT IS WHERE THEY MADE THE MOST MONEY!

@juangimenez9950

5 жыл бұрын

You sir, are a prick.

@charismaticaazim

5 жыл бұрын

What kind of extras is being talked about ?

@Alumnikiid

5 жыл бұрын

The top employee at the dealer is the finance guy. Smooth talkers, he told us once we sign the papers we can not change anything. Yet the paper said in fine print the extended warranty can be canceled with in 90 days if no claims are made. Now I never buy anything extra unless if its 5 oil changes for the price of 3 or something like that.

Went to look at a Dodge Ram today. Truck was listed at $24k. After negotiating a reasonable payment I multiplied the payment by the term years and the total was $39k. I didn't need to ask them what the interest rate was to see i was being screwed. I laughed and said no thanks. This is why I prefer to buy older vehicles using bank loans on private deals. Two people agree on a price and that's it. Theres no bs.

@HonestFinance

5 жыл бұрын

Glad you said no and saw through the bad math.

So, I watched this video and a couple others to get a feel for the negotiating. The best thing I did was get prequalified for a loan. It gave me more leverage, for someone that was also trading in. In the end, I ended up telling them that I want the car for $xx,000K price and that’s with my down payment. I walked out with it and I’m so proud of myself!

@kieyanab

4 жыл бұрын

They gave me $2000 more for my trade in and took off $2000 on the car. So, in total, I negotiated about $3-$4k. I was happy with that. I let my salesman know that this wasn’t the first dealership I walked out of and I don’t mind doing it again. I had a month to find my new baby and if it took that long I was willing to wait for the right deal.

@HonestFinance

4 жыл бұрын

Glad to hear your happy w the purchase. It’s a good feeling when you don’t have to look back

You do not have to pay the Doc fee (at least in Texas) I only get out of paying it once my grandmother in law who was a tax accessor for over 30 years talks to the salesmen. Tag teaming really helps sometimes!

@HonestFinance

5 жыл бұрын

That’s a really good idea. Thanks!

Very helpful. I did get out of the doc fee by reducing the sales price. Makes me think that I was not to their bottom dollar, but I got closer to it.

@HonestFinance

4 жыл бұрын

Great job!!

In NC, if a dealer charges doc fees, they have to charge it on EVERY car and it has to be in the paperwork. They can't take it off the final sale. HOWEVER, if you know that amount upfront (from your research and calls to dealer), you can use that in your negotiated price by either subtracting that amount from the offer but having it in your head as expenses of buying; OR... let them know that you are including that fee amount in your offer and final offer price. Doc fees can be awful. Make sure you know them BEFORE you sign anything.

@theparttime1

4 жыл бұрын

If I am reading this right, you pay the dock fee but try to get that amount off the price.

@randycarlisle6814

4 жыл бұрын

@@theparttime1 yes. You can try to negotiate that amount of doc fee of of your purchase price. Just make sure you find out ahead of the game so the dealer doesn't stick it in there and the not expecting it

I got screwed over when I bought my 2014 Nissan Altima; high APR + monthly payment was too much for a 2014. When I get my Camaro, I'll definitely used the tactics you mentioned! Ty!!

When I was 21, and just got back to the USA from being overseas in the Navy for 3 years, I bought a new car. I got screwed every way imaginable. Price, financing, trade-in... and I learned A LOT. This guy is correct... do all your research first. Education is key, because the dealer will screw you in any way he can if you don't know your stuff.

NEVER PAY DOCUMENTAION FEES. Markup is usually 30%. so you should be able to get a vehicle for 75-80% of the listed price or MSRS. (Why do you lose 30% when you driveit off the lot? Cause that is what they can buy it from the manufacturer for.) Don't buy extended warrenties, buy a reliable vehicle. Sealent: don't wax the car for the first year. Fabric protector: you can buy 2 cans of scoth guard for 20$ at Walmart.

@HonestFinance

5 жыл бұрын

100% agreed

@PhoenixPreferred

5 жыл бұрын

Peter B. It depends on the state you are in. Yes I see it in New Jersey and New York regularly. Doc fees from $300 to $2000. To also how they can advertise lower price on used cars. I have clients that come to pa regularly because of this. The state charges $133 and that is what dealers have to charge

@suggesttwo

5 жыл бұрын

@@Hitman2679 re-read the comment.

@suggesttwo

5 жыл бұрын

@@PhoenixPreferred its a way to jack up the price.

@suggesttwo

5 жыл бұрын

Re: used cars: Consumer reports and KBB are now advertising agencies. KBB proces are way to high. They fail to take onto consideration when you buy a used car you are taking a chance. Some people don't do the maintenance. Some women don't know the oil needs to be changed every 3000-5000 miles. Some men don't eighter.

At what point in the process do you negotiate the price? 1. When you first walk in the door? 2. After you visually inspect the vehicle? 3. After you test drive it? 4. After you've had your mechanic inspect it? 5. Some other time? I personally think if you can get the price set before #4, that's a good plan. If you want until after #4, you might find out that they won't agree to your price and then you are out $100 for the vehicle inspection. Plus, if the mechanic finds something major, you can probably use that to negotiate your price down further, or have them repair it.

@HonestFinance

5 жыл бұрын

After the test drive because you can call out issues you want fixed. After an inspection has leverage too

Around here, you can't easily go to another dealer if you can't get your price. Most dealerships are exclusive to the area and you have to travel 150 miles to the next one, then the next.

@HonestFinance

5 жыл бұрын

Good point. Try emails and calls then

I will help explain the DOC as it applies in New York. Most if not all states have passed a law requiring dealerships to maintain and submit records to the state regarding all transactions on vehicles they sell. The dealerships in turn claim that this costs them money to do, A fee that they are subsequently allowed by law to pass down to the buyer. This is called the document (DOC) fee. The law states that they are allowed to charge this fee and it also states that if you charge one person you have to charge everybody. The amount of the fee varies by state. A dealership will claim you have no choice and paying this fee because it is the law, which technically is true. In New York the fee is $75. $72.50 of this fee pure profit for the dealership as it barely cost them anything to maintain and submit these records. The way to get around this is to explain that they are taking your $75 and you’re getting virtually nothing in return. So in return demand something of equal value such as a few oil changes or a detailing. I’ve bought three cars in the past and I’ve always Received something in return for this BS DOC fee.

This topic is always stressful no matter who you are lol. Thanks for the advice, especially with your experience in sales. I got my car a few months ago and wish I did more of these steps. Still did ok, but like you said, the key word is CONFIDENCE, do not feel bad haha. Thanks Jason

@HonestFinance

6 жыл бұрын

Ya. It’s your money, so you gotta make it stretch for the purchase. You don’t want to look back and realize that you overpaid by 1-3k. That’s just too much money to be thrown away

@HonestFinance

6 жыл бұрын

There’s a lot of profiling in sales, so you wanna come across as the “hard sale”

@2AForever-wi8yj

6 жыл бұрын

if buying a car is the most stressful thing you have in your life God Bless you. imagine being on the other side of the negotiating table knowing no sale equals NO PAY.

There are a dealerships that don't negotiate anymore - Toyota being one of them. But you can also get a lot of different new vehicles from Costco at very fair prices. My mom recently did this and had a great experience.

@HonestFinance

6 жыл бұрын

Modern Maximalist Great advice!! GM does a special offer through Costco every fall that looks perfect if you’re in the market for a new car. I just hate that they all depreciate like crazy (new and used). But why the heck do you have to pay sales tax on used cars? If it’s bought and sold five times in its life, why does the government get to tax it five times? Doesn’t seem fair on a liability like a car

@GeraldLaz38

6 жыл бұрын

I purchased three toyota's in the past two months (I am an auto broker) and in every instance they negotiated. Certain dealerships might not negotiate but a manufacturer not allowing negotiation is rare. Saturn used to do it and Scion did it for a while.

@HonestFinance

6 жыл бұрын

Thanks for the info

@TheIdiots499

6 жыл бұрын

Mark Burk I got 2 cars with my local Toyota. I battled them down from $27000 to $24000 then up from $900 trade in to $1500 aswell as battled my final battle of 6.5% interest down to 3% interest on a 84 month loan! That intrest I had to walk out the door they had the truck ready and cleaned and ready for me that night and they would not go down on the 6.5% and I said forget it that's $6000 extra and $60 a month extra and I walked out. I got a phone call the next day saying Toyota can approve me at 3%

@TheIdiots499

6 жыл бұрын

Mario Smack fuck them show them the deals going on around a 100 mile radius of you. And if they don't match it your leaving. Garantuee they will match you first try with proof of course

Here's a nice trick, Look online for a car at "Carvana". There's no doc fees, no haggling, games or aggravation. You find the car you want, buy it online, they bring it to your house, and you can return it within 7 days if your not thrilled with the deal. They also will buy and pick up your trade even if you don't buy a car from them. I sold the 2 cars this way and the people are very nice. Lastly this is just my experience. I don't work for them but its a great way to avoid all the stupid games related to buying a used car.

@HonestFinance

5 жыл бұрын

Thanks for the tip

IMO, the best way to negotiate is in the comfort of your own home via email. Why waste your Saturday sitting at the dealer? Offer what you're willing to pay (the out-the-door price). As it gets closer to quota time (or a holiday), the odds are stacked more in your favor, and the dealer is much more likely to sell at your offer....again, this can (and should) be done in the comfort of your own home. Once the deal is made, drive to the dealer to sign and pick up the vehicle. Oh, I almost forgot.....when you sit with the finance guy, just say NO........

@tanyakerd6849

5 жыл бұрын

All of the dealer here in NJ, they wouldn't give u that direct price. I email them for TOD and asked for break down for any fees or doc. They said they cannot not give that price over email beacuse they don't know if I was a robot...lol. I replied to them that i am a robot and i will look to buy a car somewhere else. They list the car to lure u in, and once u walk in their show begin.

I would say negotiate the same way on the extended warranty as you did on the purchase of the car. You would be surprised how low you can go on them. Also, you can usually see a dealers invoice on new cars. You can usually get the car 250-500 above that.

Jason, good video! Seems like a lot of 'car salespeople' are hiding as regular viewers and making passive aggressive comments like 'you dont negotiate your hamburger' or 'you dont negotiate a pair of pants'. But they all fail to realize that the customer negotiates all those prices by choice! Instead of McDonald's, go to Burger King. Instead of Macy's, go to JCPenney. Thats negotiation by freedom of choice. I've worked at a sports store in the past and realized that managers will sell expensive items for less wherever possible. Say a Full Body Gym set up is worth $300. If a buyer says another sports store is selling the same model for $260 (but that store is a far drive). If they cant do a 'PRICE COMPARISON' and say 'sorry its $300, tell them that you will call the other store and they will make the sale and provide free shipping and handling. They will usually reopen discussions. At this point, ask the manager to input his manager's discount (usually 10%) and that should bring it down to $270. They will realize this is a big sale on the day and make the sale. You just negotiated a deal at a retail store. Yes. Negotiations can happen anywhere, not just on houses and cars. Negotiations suck, but consumers should enjoy them more than we do because they put a lot of power in the consumer's hands.

@HonestFinance

6 жыл бұрын

Great points!! It’s funny cuz I won’t go to Burger King because their drinks cost more than McDonald’s. When I was in sales, there was always a point where the sale was worth it to me or not. If I’d lose money, it might have still been worth it for other goals that I was close to. I remember winning a Cruz by one sale. And that sale got a very good deal cuz I knew they got me the incentive.

@jerrylundegaard2592

6 жыл бұрын

Anyone who attempts a straw man argument such as "you do not negotiate hamburger" is missing the point. The car buying process has evolved over many decades to a cat and mouse game of listed prices (MSRP and invoice) and haggling. Dealers know this, OEMs know this, buyers know this. Anyone who buys a vehicle above invoice most likely paid too much. The reason, as has been noted, the plethora of incentives and hold back which OEMs and dealers have concocted to render invoice essentially meaningless.

Im planning to save up money to buy a Mercedes Benz. I took some sales tricks and knowledge on which vehicle a dealership or store wants gone so I can get the car. Added with this video I can finally get the Mercedes I want at hopefully 10% off 🤤

I kind of got out the Docs (I assume you also mean the dealer processing fees). I spend about three hours negotiating and did cane to an agreement on the price of the car below invoice. Once have have the salesman break down the cost out the door he gave me the car price I will be buying, the state title and registration and taxes for the car then tell “finally here is the dealer processing fee of 499 (typical in Colorado)”. Told him, wait I’m not OK with paying that fee. I basically give him two option, just find a a way to waive that 499 fee for me or lower the price of the car by another 500 to compensate me for paying that dealer fee or I’ll walk. Since he’s so invested in the sale he wouldn’t let me walk over a small fee, so he agreed to lowered the price down another 500. I guess the dealer can still make more money by lower the price of the car than waiving that fee all together.

@HonestFinance

5 жыл бұрын

Good call. Lowering price or raising the trade can get you out of it. You saved $500 which is a ton for a doc fee

@jerrylundegaard2592

5 жыл бұрын

Your story is just one more example of how those dealer fees (doc or processing fee for example) are actual fake fees. Nothing more than the price separated into two parts, price and fee. The selling price plus the dealer fake fee equal the real price. In your case, your negotiation did not result in a price which was near the dealer's bottom line price. For the dealer that bottom line price would be the negotiated price plus the dealer fee of $500. As a result you were able to lower that price to compensate for the $500. Essentially by balking at the separate dealer fee you ended up $500 closer to the dealer's bottom line. Your example, as well as my experience, is why no car buyer should ever simply pay any dealer fake fee without making the dealer believe the buyer is walking away over that fee. In fact, that is the only time the buyer will often see the dealer's best price. Many times, the dealer will call after the buyer has left the dealership with its best price. As you suggest, no dealer wants to see a viable buyer walk away without having provided that buyer the best price. The only legitimate fees involved in a new car deal are those imposed by the government such as registration or sales tax. Any other fee is fake, period.

@HonestFinance

5 жыл бұрын

Spot on. Thank you

Never get a loan from a dealership. Dealerships alot of times won't guarantee the loan and later say you got rejected and you might end up with a separate high interest loan. Better to get your financing sorted separately with a pre-approval.

@HonestFinance

5 жыл бұрын

If you’ve got good credit, then big dealers get the same rates, but for sure get pre-approved if you’ve got bad credit. They’ll get a cut and you’ll just pay more

Last new car I bought in 2015, I found it dealers online inventory. Called n spoke to salesgurl. Told her price I'd pay drive out. Asked her to add the door guards at price I offer to pay for this new SUV. I had spoken w 4 other dealers on phone. They kept asking me to come in. I never did. Talked/emailed w her a few days. I had my bank approved finance. I only went in to show them my very nice trade. They gave me a good offer. I test drove, signed paperwork n left after 2 hours. First time I ever did this buying new auto. I'm looking online at a new car now. I felt prepared then. Will try it again

Good information. I'm a former car salesman who would actually prefer to meet customers who did their homework and had a reasonable expectation. The people who had no clue could be such a waste of time. They were the ones who thought they could get the $200/mo. payment on a $30,000+ car with 0 down, or even offer $10,000 for a $20,000+ vehicle. Amazing how nobody bats an eye when a realtor takes 6%, but is willing to argue over a few hundred bucks when buying a car.

@HonestFinance

5 жыл бұрын

Ya. The 6% has got to end

@GoogleAccount00

2 жыл бұрын

A car depreciates, not a good argument. 🙃

I watched this kind of vid for 4 hours and darn!!!, was like BS big time... this video fully comprehensive and this dude knows his sh....t. Need no more. Thx for the info, feel ready to go to "the jungle" for a car now.

I've heard the best way out of the Doc fee is just to negotiate the price of it and/or reduce the overall price of the car by the amount of the doc fee. I've also heard from dealers who gave me the inside scoop that doc fees should never really be more than $75.....but I've also never had luck negotiating it down to $75 so idk

This is good advice. I am looking to buy a new truck at the end of the year so I am looking and researching now. I don't squabble over pennies when buying a car but I know what I am willing to spend and I will drive away if they are not working with me. I have been called back a couple of times and given the price I offered. Over all good video.

Just an FYI, there are Motor Vehicle Commissions in every state to my knowledge, or similar agencies who license and regulate car dealerships. If a dealer advertises a price, they have to honor that price minus TT&L as mentioned in the video. If they aren't doing that, file a complaint with your state motor vehicle board or commission. In regards to doc fees, those are only applicable to finance deals. Most dealers won't waive or reduce that fee if you aren't buying outright. I don't remember where this happened, but there was a class action law suit several years ago, whereas dealers and lenders were found to be racially discriminating in fees and apr. Most dealers don't want to be subject to that kind of action, so they don't even waive doc fees for their employees. It's too much legal risk. As said in the video, ALL other fees are negotiable, but on a financed deal, you're most likely looking at a doc fee, notary fee, convenience fee (if they use a public tag agent). VIN etch, VPP, etc. are all just BS fees and in most states it is illegal for dealers to exclude these from the advertised sale price. Don't be afraid to walk out. The sales team isn't doing you a favor, they want your business.

Just get pre approved through a credit union and avoid all the bs haggling.

@cryptozay5975

4 жыл бұрын

How

@NeverTalkToCops1

4 жыл бұрын

@@cryptozay5975 Join a credit union. Apply for loan.

@Jtuonov4

4 жыл бұрын

This does nothing for you but get you pre approved for a loan, doesn’t buy the car

@mikem9270

3 жыл бұрын

@@Jtuonov4 I was thinking the same thing...

Can’t get out of a doc fee, but every state has a cap that dealerships can charge for it. Here in Texas, doc fee cap is $125.

@NeverTalkToCops1

4 жыл бұрын

That's why you subtract that fee in your offer.

I don't know about USA market but in Australia, dealers have to make 40% profit from selling a new car to be called a profitable business. Which means if they sell a new car $100,000, what they paid the manufacturer is $60,000. If they successfully sell the car to you for $100,000, they make $40,000. Within that $40,000, they have to pay rent, 5% for the sale staff who sold it, wages, transport fee to move the cars around.... so what ever left will go to the owner pocket. We have worked out, the fair price for both buyers and sellers is 15% off that price tag. in short word $100,000 can be purchased for $85,000 and dealers will sell it at that price. I bought a Mitsubishi Triton 2015 brand new for $43,000 with the advertised price is $51,000 and the time i bought it, there were only a few of them in where i live. I also bought my mom a brand new Nissan Pathfinder at Andy Mohr Nissan Indiana for $33,000 with its price tag was $42,000 but I paid cash though coz I was a tourist in USA

@HonestFinance

5 жыл бұрын

Wow. Thanks for the insights

Check out car buying services. My credit union offered the service for free if you finance through them. And their interest rate was really low. They negotiated the vehicle down $1500 (to a more than fair price) and all I had to do was walk in, make sure I wasn't being charged any BS fees, and sign paperwork. It was so worth it. I DID have to fight with 2 sales people to get the OEM seat covers back that were in the vehicle the day I test drove it. They swore up and down they didn't have them. Turns out they were "found" in a mechanics trunk. AKA (The sales guys trunk) LOL.

@HonestFinance

6 жыл бұрын

Great idea! Thank you

I watched this video before I went to look at a Certified Pre Owned. They listed the car at $ 14,993. I used your number of $13,900. which was reasonable in comparison. The salesman took my license (to check my credit etc.). He came back with the pricing sheet. I noticed they switched the APR from 4% to 6.5%. The saleman told me which is because they did not know if I have good credit ( my credit is in the 800's). I named my price and he got his sales manager who then asked me to justify my price. Which I did. They offered me $ 100.00 off the car. I also asked them to explain the blanket statement of tax and fees which included a $ 400.00 doc fee. They told me they would be loosing money. I told them that's my number, they would not budge. I got up and left.

@HonestFinance

5 жыл бұрын

Good call. Watch this video on buying a used car because I go into a lot more detail on fees and pricing kzread.info/dash/bejne/qqqouLWAoK7KpNI.html

@HonestFinance

5 жыл бұрын

Sorry they wouldn’t work with you. That’s always frustrating

@tl7975

5 жыл бұрын

I

@andreaviola8675

5 жыл бұрын

Just check back on the car...they dropped the price another $400.00. I'm going to watch it because my guess is they will drop it again soon to move it off the lot. I will go right after christams

@HonestFinance

5 жыл бұрын

Good call. And try to buy before the new year because they’re more incentivized to hit sales goals before the year ends.

Hey, honest finance. Went and looked at a car in April 2018, and the dealer obviously thought they had a one-of-a-kind Taurus SEL made of platinum, plated in gold sitting there on the lot. My trade, while it isn't top notch by any means, was worth about 8,000 at that time. They offered me "5,000 real dollars" and, needless to say, I said "thanks, but no thanks" to their offer. As I peruse the interwebs today (January 5, 2019), it turns out the car is still for sale, with probably no more mileage on it than when I drove it last April. This Taurus has not moved in almost nine months, and they have finally lowered the asking price to less than the comparable market offerings; I would think they would be motivated, but my prior experience would indicate otherwise. That being said, I realize that they pay to have this car on their lot every day, and, as such, they are losing money keeping it on hand ever day. Furthermore, I'm sure FoMoCo has asked at some point "why haven't you sold it yet?", and probably would like to see one more notch on the car sales bedpost as a result. Do you think I could go in there in the near future, and say "hey, you haven't sold this thing in almost nine months. Just give me my asking for my trade, and finance the 125% and we'll call it a day?", and come out on top? Background: I currently owe 15,000 on my truck while it's worth about 6,500 to 7,500 today. I feel like they could make it happen, but they might once again cut off their nose to spite their face. Thoughts?

@HonestFinance

5 жыл бұрын

I’m sure they’re desperate at this point. You need to find out why it hasn’t sold because that’s way too long to be sitting . You should 100% try again though

ROFLOL! As a 30 year car sales vet these channels are extremely fun and funny to watch! Love em

NADA will give you the wholesale values of the used vehicle. Dealers usually pay less than wholesale for a used car. I use this when negotiating. Along with Carfax, edmunds, truecar, kbb. Print everything out that will help you, and take it with you. Never be afraid to walk out. I've walked out many times and been called back agreeing to my price or finding another dealer that would. Also you can get dealers to throw in services for free. I helped someone find and negotiate a car recently. I got the dealer to throw in 2 oil changes with tire rotations. My last new car purchase, I negotiated 5 synthetic oil changes in my deal, along with a good price I was happy with.

@HonestFinance

5 жыл бұрын

Thanks for the insights

Great video, I've tried these tactics before and they definitely do work. One thing to mention is go to a dealership at the end of the month. They need to hit their monthly quotas and they will be more desperate to close the deal. Keep up the great work.

@HonestFinance

5 жыл бұрын

Thank you

After negotiating until the dealer friendliness wore thin, I demanded to see their dealer invoice. The cash price we had negotiated was $123.27 less than that shown on their invoice. The new car window sticker showed $29,050.00. I walked out with it after paying $24,877.73 including tax, title, tag, and everything. Why do I still feel like I could have gotten it for less?

@HonestFinance

5 жыл бұрын

It’s normal to feel like that. Watch my new car buying video and see if you missed anything. It sounds like you got an excellent deal. kzread.info/dash/bejne/aqqV2LuKmba9k6w.html

@everybuddy5924

5 жыл бұрын

here is why you included everything in the vehicle price. Although you got the vehicle for $123 below invoice (yet there is $800+ in holdback) meaning you could have gone at least $500 below invoice. The dealer collected anywhere from $500 to $2000 in factory customer incentives. These incentives you could have gotten once you negotiated the price first, to lower your overall price even further.

@reaality3860

5 жыл бұрын

Honest Finance, Thank you for the service you provide with your KZread Videos! We, average income mortals, need all the help we can get,...And you deliver!

@HonestFinance

5 жыл бұрын

Thanks!!

Well aJason thar was pretty helful , wush U knew about your channel before I bought my last 2 cars. Im thinking about to buy a truck but I dont kbow if to sell it on the side or trade in my car. It has been helpful to listening ti your video Im goung ti get more informed and bettwr prepared this time before I buy another car . Thks for the info. Im glad you are mentioning all this tips because some dealers really ripped you off .

Uber to the dealerships so they don’t jump on your trade in a deal. Get approved at the credit union before you go. Don’t tell them any of this until you are negotiating with finance. Use any fees included as negotiation numbers against the price. They’ll want you to focus on payments and trade in. Don’t, focus on the price only. If you are already approved on an interest rate with the credit union then you know what’s already there for you and the payments amounts. If the dealer can beat your situation with interest, months and payment, without raising the price you are going to stay stubborn on, let them beat it and take that deal.

I wish i found this video before i bought my new jeep. if what you say holds even a shred of clout then i over payed by 1200 bucks. You are very informative

@HonestFinance

5 жыл бұрын

We live and learn. My first car was sooooo bad and that’s why I make this content now

This is some good info and basically what I say in my car buying seminars. I don’t call myself a broker but a personal shopper, my company helps people navigate the car sales process over 200 times a year. You can actually ask a dealer what they paid for a car. The amount they own a car for is the price they paid, repair and inspection, plus dealer pack. Usually you can negotiate with a few hundred dollars of the pack. This generally is a very under market deal on a used car. On new cars find out all the incentives including dealer cash. Then ask for invoice and what the hold back is on that particular car. If it’s a high volume car you can get all the holdback if it’s slow ask for 50 to 75% of holdback. You are correct never negotiate on monthly payment.

@HonestFinance

5 жыл бұрын

Thank you for the great inside info. Transparency is the only way to negotiate, so that’s very good advice

I made my offer on a used car. January 31st of that year. Told them my “out the door price offer and after brief back and forth they agreed on my price. Total price was a bit below their asking price of just the car (price before their added fees). You could say I “got out of the doc fee” if you look at it that way.

This is very helpful with actual example numbers! Im buying a new car soon and i feel way more confident now that ive watched this video!