SUBSCRIBE HERE!! https://www.youtube.com/user/kevinhunter7 How to buy a car from a dealer with cash, with no credit, with bad credit, with your own bank financing, or with dealer financing. You need to know how to buy a car from a dealership. In this series, you'll get the best car buying tips anywhere. CATEGORIES: car, truck, suv, auto, used cars, autos, mechanic, automobile, vehicle, dealer, automotive news, auto shop, warranty, loans.
Car buyers wonder "How do I buy a car and not get ripped off?" Beating the finance man at the dealership is a big part of it. From the Author of "13 Car Buying Mistakes" and "Car Scam of the Decade," Kevin Hunter presents these ten tips for beating the car dealership finance office. Has the Dealer Finance Manager ever ripped you off? Car Dealers have a right to make a profit, but do they have a right to lie to you? From the author of "13 Car Buying Mistakes," here are the "10 BEST Auto Finance tips" if you are buying a car! Want to know how you beat the Car Dealership Finance Man? This MUST WATCH video for Car Buyers is the advice you've been waiting for on how to survive the finance office at a car dealer. Kevin Hunter lays out the products, strategies, and tricks the finance officers pull every day on unsuspecting car buyers, and many of them get away with what they do. You don't have to be one of the people they succeed in deceiving.
The F&I Manager, finance man, loan officer, business manager, or whatever the car dealer wants to call him or her... just remember this is the most skilled salesperson the dealership employs. They make more money than any other person in the dealership for a very good reason. They are sharks, and they are NOT looking out for you. They are looking out for themselves and the interests of their dealership. When they "shop" your car deal to many different banks, they are looking for the bank that allows them to pack the most product into your car deal. When you start seeing bank names like Santander, Capital One, Chase, Wells Fargo, Space Coast Credit Union, Regional Acceptance Corporation, Ally... just to name a few, you know you're sitting in a car dealers finance office.
Kevin Hunter covers everything from extended warranties, GAP insurance, theft protection... otherwise known as window etching, paint sealers, carpet and fabric protection. All the details on HOW TO BUY A CAR, TRUCK, or SUV.
This video was published to help you discover how you can save time and money on your next new or used car purchase by doing your homework first, and then going car shopping as an informed buyer.
We are more than amused by a few of the car salespeople or car dealers who contact us and state that we are making a 'small problem' sound far worse than it is. We know there are honest people in the car business, and we receive positive comments from many of them, but it's definitely a buyer beware world out on the car lot!
For all of you car buyers who are well steeped in reality, if you watched the video "Confessions of a car dealers backroom" you understand why you need to see this video. By understanding what mistakes to avoid, you'll not only become a smarter car buyer, but you'll also better understand what not to tell a car dealer when buying a car. It's true that you can play all your cards up front with an honest dealer, but unfortunately, they represent the minority of dealer owners (truly transparent and honest dealers make up about 40% of all dealers), and you are unlikely to know the difference until it's far too late. Be smart, do your homework, and you'll come home with a car deal that's good for you and the dealer. After all, that's what fairness is all about. We encourage you to be fair and honest. As a car shopper, live up to your end of the bargain, because it works both ways. Respect the dealers right to make money in your quest to get a fair and honest car deal, proving to them you're an honest person too. It's this kind of attitude by car dealers and consumers alike that will change the car business. We wish you the best!
Shady as it is, sometimes getting hooked into "plus sells" like insurance can work out all right.
My son got extra insurance that cost over $2K when he bought his truck
I asked him why he had since he had no dependents & he had to have regular insurance (PL, PD & collision)
It's mainly to cover the life of the person & he had no dependents???
But it also covered payments while he was recovering from his broken ankle.
So that paid off 5X the cost ($10K) but at the peril of breaking his ankle :(
The other good thing was that it was 0% loan.
Normally the extra insurance scam is added to the loan amount so you're paying interest at 6-8%
My experience was that they make it sound like you have to have the extra insurance.
They'll say you have to sign a waiver like it's against the law or something
It's not against the law for you to NOT get it but it may be against some law that says if they don't offer it then they can be sued??? (Canada)
I ordered my truck online & picked a 5 year period & was satisfied with the payment
When I went to sign the papers, the "loan officer" had changed the loan to 6 Years
I said that it was wrong & she said that she had "conveniently" changed it so I would have a lower payment
Like she was doing me a favor???
I said I wanted the 5 year period & the payment was fine -- I could handle the amount I had picked online
Then she got persnickety & said that she would have to change the paper work
I said I'll wait :) Don't let them push you into something you don't want or need!!!
I purchased a fifth wheel trailer from an RV dealer. I added $3500 in "cash accessories" on my purchase contract for items I wanted installed on my fifth wheel and truck to pull the fifth wheel. The dealership had another company order and install the parts. The items failed and broke immediately and I removed them from my fifth wheel trailer and truck and returned to the dealer I bought it from. He then took the defective items to the 3rd party company that ordered the items. Both are refusing to give me my money back for the defective items. Since these items were purchased in the financing of my purchase contract, is the dealer responsible for refunding me the amount they received in the financing for those items? Is it just a 2% over the life of the loan (15 years). How do I prove that he needs to pay me back for something he got paid for and I no longer have in my possession? Is there some kind of law that protects me in getting that part of the finances back?
Excellent video, thank you so much. I've owned a few cars over the years but have learned something new today. I am contemplating a new car purchase in the near future but will be going about it a bit differently this time. I have watched a few videos along with yours and will be doing all the ground work on-line before I find myself at the dealership. My last car purchase lasted no less than 5 hrs. and was a nightmare. The final contract was $2,000 more then it should have been because the finance officer neglected to subtract the rebate. I noticed this as I was signing and initialing the half ream of paperwork. He claimed he knew nothing about this rebate and spent the next 45 minutes speaking with the salesperson. When he returned he shredded the contract and produced a new one. I can't remember at this time what exactly went wrong the second time around, as he gave me credit for the $2,000 rebate but the final total remained the same. We nearly argued as I would not sign the contract until he found the mistake. I finally told this man that I was leaving, (contract unsigned.) Saw the salesperson and demanded my car keys which he would not provide and instead rushed off to speak with his manager. The manager then spoke with the finance officer and a third contract was produced. By this time the dealership had locked its doors, and you guessed it, they did ask me to go ahead and initial and sign the contract stating it would be completed correctly and my copy would be mailed to me while in the meantime I should drive the new car home. They were not happy when I would not do this.
Wow, what a nightmare! I'm curious about something. Do you mind sharing when you plan to go car shopping again? Here's why I ask. Recently, I was contacted by a car customer from Florida. He ran into a complete nightmare with a Nissan Dealer known as Southern 441 Nissan. He had arrived at the dealership to purchase a vehicle sale priced at $13,426 on Auto Trader. He left with a loan balance over $21K!!! You might enjoy hearing his story (for a learning experience) https://www.youtube.com/watch?v=Gv-RYdm82Go Here's what I'd be willing to do to help save you from this same nightmare. If you'd like us to, we will "participate" in your car buying journey. How? Well, we will give you a contact number for our broadcast studio for starters, and you can call us anytime, including when you happen to be sitting in that nasty finance office. I'm sure the finance officer would be "delighted" to know you have car consultants helping you! Lol... We would do a little mini series on the homework process with you, have you give us updates along the way, and then call in a report at the end. Now, of course you don't have to do any of this. That's your choice. If you're interested, we'll be glad to have a little fun with it, and help you get a fair car deal too. If you were wondering, there's no cost. Email our broadcast studio at NorthWest Digital News at [email protected] or call/text our studio line at (360) 545-3501. Thank you for commenting!
Tired Of Made In China Garbage? Tired Of Terrible Customer Service? Buy Made In The USA Underwear Built To Last! Comes With U.S. Patented Waistband That Prevents Plumbers Crack Embarrassment. Excellent for Sports, Lounging, Infertility, and Obesity! The Only Underwear Manufacturer In The World That Makes Everyone's Size: (Extra Small to 25XL)
best extended warranty and cheapest is available through the insurance companies. Geico has it. Usually you have full coverage on a new car warranty on first few years, but insurance companies only offer this on the first year of a new car purchase.
There are many finance options that involved no down payment. However, think about something. You'll be driving an asset that will depreciate somewhere in the ball park of 20% the minute you drive off the lot. In some cases, it's even 25%. Now you're driving a car that is worth a lot less than the loan you have on the car (because you didn't put any cash into the deal). You wind up paying another $1,000 bucks for a dealer GAP policy because of the "no down payment" idea. Your interest rate can often be fatter too because of no buyer cash. Do you realize how many ways this can cost you? I always think its a good idea to put money down. A minimum of 10%, preferably 20% or more. Any financial advisor will tell you the same thing. Don't be caught driving a depreciating asset that you didn't put money into.
chad doesn't believe someones story. chad hasn't been around car dealers. or he is one hisself. but ill tell you what I got BAIT-N-SWITCHED a years ago at a big dealer and when they didn't come across with the car I filed a complaint and the STATE tells me that theres not supposed to be a car lot at that location. I was wtf???????? so they go there and close down the entire lot with 300 cars on it. and it was a HUGE DEALER. a world name. I was cracking up at them for screwing with me. lol hahahaha
I had a good friend who got caught up in a yoyo deal. His wife was actually trying to finance the car with a trade in as part of the deal. They took the car home pending loan approval. Meanwhile there was a hot buyer on the new trade in. A few days later the loan is denied and the trade in has already been sold. After a long battle BMW wound up giving them a $60,000 for about 20K to prevent a court battle.
Purchased a truck. Finance manager bugged me until i purchased an extended warranty. Next day i went back and cancelled it. It took 6 weeks to get my money back. When i did the check stub showed the cost of the warranty was $1495.00 and i payed $2340.00 The stub showed they would have made $845.00 on me. Worse the warranty was only good for 56000 miles which was less than the manufacturers warranty.
MANY lies in this video! First, if a dealership has a SET Doc Fee, EVERYONE MUST PAY IT BY LAW! A dealer cannot have a $399 doc fee but let you pay $75 because you simply "refuse to pay it". That is against discrimination laws. Next, GAP Insurance. Unless you have more than 25% of the vehicles TRADE value in either down payment or trade equity, you NEED GAP and many insurance providers do not offer it. Last, EASYCARE Extended Service Contract....Yes SERVICE CONTRACTS are excellent and are exclusionary. Which means they have a very small list of items they do not cover, if it is not on that list, IT'S COVERED! There is NO SUCH THING as an Extended Warranty. Warranty implies FREE and FROM the Manufacturer. My guess is the gentleman that posted this "how to" video either tried to make it in the car business and sucked or he is just parroting what he has heard but not verified. As for other mentioned products like fabric protection, very true it can be done yourself for cheap...do it. If you decide to take this guys advice and later find yourself needing coverage and don't have it, think he is going to pony up the dough to cash the check his mouth wrote? Yea, I doubt it too.
Another car lot junkie gets his nose out of joint. Lol. Thanks for your comments! Do you have a learning disability as well as misunderstanding law? Your comment about Doc Fees is actually quite funny. After a decade of helping millions of car shoppers, I have more than a clue what I'm talking about. Tens of thousands of car buyers have exactly what I suggested with the doc fee, and walked out with a net effect of $75. Apparently you missed the part about how that happens. Go back and watch it again, and see if you learn anything the second time. Maybe your follow up comment won't have as many lies (or clueless misunderstandings of your own business) in it as the first one did.
We have always researched, secured finance through our credit union or bank and have a cashiers check in hand with all applicable fees once we know the car we want. Walk into the dealer tell them this is the car I want and this is all I will pay for it.Take it or leave it. Worked every time but once and the asshole at DCH Honda called the next day and said he will sell the car at our check price. Told him sorry, we found the identical car at another Honda dealer 21 miles away.
Besides those last couple tips I don’t see why the other tips were a scam at all. A scam is if u paid for something and then U didn’t get it. They may be over price but if people see value in it and buy it then how is that a scam?
Are all the items called out as being "scams" as you say? The only item noted as a scam in theft protection, which isn't theft protection at all. The dealer charges the customer for a service that will never be performed. That is a scam. All the other items are simply a discussion of merits, whether you really need them or not, or should be putting them on your car or not. I think you misunderstood the message.
How about this, us as American consumers demand the franchise laws be changed so we can get rid of dealerships as a middle man so we can get rid of their mark up. We should just be able to buy cars directly from the manufacturer.
A tip to add; if you have a trade in, take an extra set of keys with you. I've had dealers ask for the keys so they could check some things. Once they have your keys, if you want to walk away from the deal don't have an extra set, you are at the mercy of the salesman 'finding' the guy with the keys.
Meanwhile, you're at the mercy of whoever they want to send over to try to salvage the sale.
Been there, learned from that!
Awesome! These dirty pricks have been scamming the well-meaning public for decades... Crying about tighter margins when in reality it's the greedy owners pushing for more profit... Time to fight back with knowledge of their game... I'd love to watch the finance officer squirm as a potential buyer heads him off at every greedy pass - and still have to sell the car to him!
+Kevin Hunter Great story! ... Wish you lived in Toronto. Wouldn't mind having you by my side during my next car purchase... Hey, you could offer yourself as a service and charge a fraction of what the customer will save! :)
You got it! Over the years, I've been invited to make a dealer trip with a local customer to keep up to date on what's happening in the car business. I'm always delighted to do it if it works out. The customer simply explains that I'm a friend who is helping them. It's usually in the finance office that things get rough. I excuse the finance manager out of his/her office a number of times to speak privately about what has been offered. About the second time the finance guy is sent to get a drink of water, he knows he's not in control of the deal anymore. On a rare occasion, if the guy gets testy, I'll share with him where he's already made false statements or claims, and how this can be a reflection on his job and the dealership. That's when I tell him who I am, and instruct him to look up a few of my videos. This video is always a "favorite" of the finance office, as you can imagine. They pull all the junk off the table after that, and just write up a simple car deal. We are out the door. I'm sure each time we left a sweating finance manager in his office.
Paint protection is a different animal. If they applied the product, you can't "give it back." Extended warranties, wheel and tire insurance, disability insurance, theft protection, service warranties, gap insurance.. anything on that level can be cancelled and refunded at any time. If you cancel soon enough, you get all your money back. If you do it months (or even years) down the road, you'll get a pro-rated amount back. I've assisted a lot of customers with this, been through it many times, and I can tell you it's quite simple to get done. It's the dealer that wants you to believe that once you sign that contract, you are stuck with everything that's in it.
The finance manager at Classic Toyota Galveston added GAP insurance to the car loan. He claimed that the bank would not finance the car unless we got it, what a bunch of crap. It was somewhere around 1000-1500 dollars. I wish I would have watched this video.
751 thieving, con artist Finance Producers give this tell all a thumbs down.
This video is 100% truthfull. There are unfortunately about another dozen scams the Producer (finance scam man) and the other thieves at the Stealership will try to pull on you, all while dming and acting like they are your best buddy.
Get educated, NEVER deal with anyone besides the General Manager, NEVER pay more than $500 over ACTUAL DEALER COST. PERIOD. Do your research, deal directly with the GM (eliminate several others commissions). The very first time the GM attempts to insult your intelligence, so in and start walking out of the Stealership. Make that SOB beg for your business. Or go to the next dealership.
Or, be a victim and pay $1000's of your hard earned $$$ to these heartless scam artists.
I went in to buy a Lexus with an 827 credit score and the finance manager tried to pawn me off on a 4.75 interest rate. I told him Lexus is offering 3.9 why didn’t you offer me that. He apologized and said he overlooked it. I’m sure he did!
I bought a 2002 in a different state a few months ago and had it shipped to me. The dealer hooked me up with financing from Wells Fargo for a $5,000 loan at 13.59% for 48 mos. What the heck? Such high interest for a guy with a 761 credit score!!! They actually thought they were gonna make a killing off me taking 4 years to pay that off. I just made my last $1,000 payment last week. So Wells Fargo is only gonna make about $130 off of me.
I'm a former car sales woman. OMGGGG I hated myself everyday going to work! I eventually got fired cause I just refused to sell people cars I knew they couldn't afford or that wasn't good. I made my money I needed to pay bills and after that I kicked back. I told my boss that he is wrong for ripping off seniors, college kids, single moms, etc.. I would advise anyone looking a to buy a car to pay cash! Making a down payment is totally the same. I've sold cars to people who ONLY had $500 at the time of sale and that was more than enough for them to leave with a car. My finance manager still made me go out and sell the car for a $1000 down payment, "or don't come back in here" is what he would tell me. My boss even made me commit bank fraud, or else I would get fired. That dealership is now getting audited. I've never had to work with so much grown babies! And not to mention how much they drink and do drugs, on the job! Lmao I HATED THE CAR BUSINESS. Now I work for the railroad and don't have all the stress of getting a bad name in such a small town.
I actually had a dealership switch cars on me during delivery. I picked out the one I wanted with the equipment I wanted, negotiated a fair price and agreed to the deal. The dealership was busy and I had another appointment so I told them to bring the vehicle to my house and we could sign the paperwork and complete the deal in a couple of hours. I got home from my other appointment, called them and they said they would be right over. When they got there they brought a vehicle that was the same color as the one I picked but without 3/4 of the options I had chosen but at the same price we had agreed on for the one I wanted. In effect they would end up making thousands of dollars extra in the hopes I wouldn't notice the change. Sadly most of the really are scumbags.
I absolutely LOVE this video and will be sharing!! My advice? Do not EVER finance your car through a dealership!!! Who the hell does that?? You are literally begging to be cheated or overcharged! Most banks will let you fill out an application online and give you a decision in a matter of seconds. Now you have a budget for how much you’re going to spend, the bank website will give you an idea of how much your payments will be with finance calculators, and now you CANT be pressured into all those add-ons because, hey, that’s over my pre approved loan amount. 🤷🏾♂️😉When faced with a take it or leave it proposition, most dealers will TAKE THE MONEY. Only the swindlers and ego maniacs will let you walk out because they know a sucker is born every minute. They’ll just victimize the next person!
Don’t make the mistake of picking the car first or being dead set on the EXACT car you want. That attitude is fine BUT you will pay handsomely for it. Get your financing FIRST based on your income and credit THEN choose a car. My bank approved me for 22.5k. The car i bought is a nice 4 dr sedan with low mileage, good resale value and a decent reliability record listed at 18.1k. I offered 18.5 out the door for it and didn’t budge! Had i let the dealer BS me with add-ons after the fact, lies about my credit and how I have to oay a higher rate, etc., they would’ve eaten up my entire loan amount with crap that amounts to nothing but pure profit for them! Instead, I came out with consumer surplus (in my mind, that is. It’s not like they bought the car for 18 and added a hundred bucks for resale. I’m sure they made a nice profit just not a windfall).
Bottom line, if you walk into a dealership cold, having done NO homework or secured your own financing—You. Are. Doomed to overpay!
I’ve purchased GAP on the last 3 out of 4 vehicles. The first vehicle got totaled within 5 months and paid $3,000+ on the remaining balance. The other two vehicles I paid off in less than a year. Because the GAP insurance is intended to cover the length of the loan my wife and I received a pro-rated refund. Ex: $600 on a 5 year (60 month) loan would get you a $480 refund if you paid off the loan after only 12 payments. I will admit that paying $30-$35 per year is better than paying let’s say $10-$15 per month.
I got the yo yo trick pulled on me by Land Rover Las Vegas. Had me take the truck home stating all my terms and payment. 4 days later they said it wasn’t approved yet. Then they called me with “good news” saying they can get it approved but all they need is another 5k down. That would have been a total of 10k down overall! I told them (not so nicely) to get my trade in ready to give back and learned a hard lesson.
yea well my grandmother took me with her to get a car and right off the dealers were asking her WHY IS YOUR GRANDSON WITH YOU? she was like 70 but had aaaa plus credit and coudve bought the stupid car outright with cash but she preferred getting it financed.
anyways she handed ME the contract before signing and the dealers ASKED HER WHY SHE WAS HANDING ME THE CONTRACT TO LOOK OVER? LOL
so I whip out my calculater and add the 60 payments times the monthly amount and they were $2500.00 over.
I handed it to grandmother and sked them why they were 2500 over. so we poured over it and THERE WAS A "CONSIDERATION FEE"
I asked what that was and told them she aint signing crap unless they removed that fee.
they removed it and she got the car and paid it off but GMC sent her a letter stating that they were very dissatisfied with her and didn't want her as a customer ever again.
A "destination charge" is a fee that the manufacturer charges to deliver a vehicle from the factory to the dealership, and that is passed on by the dealer to the consumer; it is not included in the MSRP of the vehicle. Destination charges are typically not negotiable. In fact, even customers who arrange to take delivery of a vehicle at the factory are often expected to pay the full destination charge. The destination charge is the same for a particular vehicle no matter where the dealership is located (with the exception of Alaska and Hawaii in some instances). That's because manufacturers average the cost to ship a vehicle from the factory to the furthest dealership with the cost to ship a vehicle from the factory to the closest dealership. Some manufacturers do this for each model; others average costs across an entire make.
Destination charges are taxable, so the destination charge is added to the price of the vehicle before sales tax is calculated.
Don’t buy anything then lol. Since profit is a crime and should be limited. Then no one buy iPhones since they literally have more money then they know what to do with lol. There the Kings of profit freaking apple 🍎 lol
Can't you just go to your own bank after 25 days and refinance at a better rate? Its what im going to do because going with their bank allowed me to take the car the same day? I was stressed over not being sure if i should have gotten the extended warranty. the car is just 2 years old, one owner and 30K miles. No accidents and a known reliable vehicle. It was a hard inquiry and my score dropped 3 points. I'll speak to my banker about refiniancing through them and if it will cause my score to go down more :(
In most states they are legally capped. However, doesn't mean you have to pay what they have noted as their document fees. The fee they establish is nothing more than what THEY decided to charge, and the state law usually says the dealer has to charge every customer the same fee. The reason for this is that dealer commonly used document fees to pad profits into car deals all the time. If they screwed the customer bad enough before they got to finance, or with other finance products, they might let the customer off with a $25 document fee. The next guy comes in, a skilled negotiator, and they would hit him with $800 just to try get some money back from the previous negotiations. Happened all the time, so state legislators eventually passed laws saying they had to charge the same fee, whatever that fee was, not to exceed a given amount (if they added a cap). In any event, I'd never pay any dealer more than $75 for a document fee. I'd let them record their fee as $699 if that is in fact what they charged everyone else, but I'd demand that the price of the car be lowered by $624 or I was out the door. That simple. I've purchased vehicles in six different states. Never paid a single dealer more than $75 for a doc fee... ever.
In some states all the add on stuff like extended warranty is subject to sales tax. I know in Arkansas anything you add one you'll pay taxes on it as well. If you need extended warranty purchase after you bought the car.
It's because all the add-on stuff is "product"... not simply a warranty. These products all fit in an unofficial dealer category from suppliers known as "Additional Dealer Profit," or ADP... not to be confused with the payroll company. It's funny that I've had comments from viewers who have denied that this is true (likely car lot guys), but it's dead on the money. Everything in that finance office is sold to boost dealer profits. No more, no less. Nobody should ever forget that.
Great strategy. Do expect them to get a little upset with you for doing that. I would add to that by saying you want the price of the car written down on dealer letterhead (with all the specs on the car, including miles and the VIN) and tell them you want to go home to "think about it," and will be back the next day. You can come back the next day with a check from your bank! Thanks for your comment!
A lot of them do! Because there are both good and bad people in the car business, I get both supportive and critical comments from people in the business. One thing they do recognize, however, is that the content clearly comes from someone who has spent time in a dealership, and understands what really does happen in finance. Thanks for your comment!
Great observation. First time car buyers, in particular, are the most vulnerable when it comes to visiting a dealership. I hope they find my videos, and avoid some of the common mistakes people make purchasing a vehicle.
First Argue Price... NEVER Argue Payment...! Payment is entirely the seller's business once a PRICE has been reached. Then argue all "fees" as the seller's costs of doing business... and as such, and like a real estate transaction, are the sellers closing costs...!
They got me with the GAP insurance. They also lied to me, claiming if I paid off the loan, without having to actually use the insurance, I could get a refund for most of what I paid.
And I’ve also dealt with the yo-yo thing. 🤦🏻♀️
Thank you for all of the tips. 🙏
Driving cars for more than 20years, always bought used cars from real good people and paid cash. Never bought a car from dealer. Although I tried to purchase from dealer/scammers it didn’t work out. Thank God!
I was an honest finance manager. (I no longer work in it), It got to a point where I would only sell a manufacturer's warranty and only the top one with the exception of a powertrain warranty on a used car. However most dealers are self insured now. But why would you not buy one considering the cost of repairs? I will correct you on the doc fees. That is the dealer "keep the lights on" fee. Finance has no control and it is generally not negotiable.
Thanks for your feedback, Bonnie! I always love to hear from the honest players in the car business. From the years I spent in the business myself, I know there are plenty of good folks. Thanks again for commenting!
extended warrantys are god only if you buy a factory warranty, if you buy a honda, only get a Honda company warranty. My honda extended warranty paid for itself in year 5 and six of ownership of a 7yr factory warranty
When in the "finance office" never.......never......never....... sign a "power of attorney" form. These forms are usually never filled out and are said to be used "if a mistake was made" thereby requiring you to return to the dealership to sign the corrected papers. Simply tell them ......."don't make a mistake". But do not sign it.
After spending tens of thousands of dollars on a car, it's quite natural that a car buyer falls prey to ideas about "protecting their investment." Finance officers know this well, and exploit it at every turn. Wheel and Tire warranties are no exception. On the surface, it may seem like a good idea... until you actually need the warranty. What constitutes wheel or tire damage is very subjective, and many consumers report that they didn't receive any coverage at all. Like other pieces of "insurance" a finance officer may offer to jack up profits on the car deal, wheel and tire warranties get a big thumbs down from many experts in the industry. I agree. Don't buy it.
When Chrysler received the government bailout, they offered Lifetime powertrain warranties along with a bumper to bumper warranty. Seemingly for free. I bought a 2009 dodge Ram. I had several repairs that were covered under the warranty. I called Chrysler years later to inquire about a similar warranty on my wife's Cherokee. It costs around $2,000-2500 I think. I would buy it. My dealership (Jim Burke CDJ in Bham) is great. On the hand, I had a 'free' warranty on another car.. It was from 'Warranty Forever'. The company voided my warranty for getting my oil changed at another Chrysler dealership (rather than the place I purchased the vehicle). According to their rules, you have to get pre-approval every time you get the vehicle serviced outside of the original dealer location. 100% garbage
We purchased an extended bumper to bumper warranty for our car, which contained gap insurance. Two years after purchasing the car, someone crossed the center line and hit my wife head on, totaling the vehicle. My wife was ok, but now, over a month later, we're still trying to get the payout from the gap insurance. They keep changing what they need from us, telling us they are missing documents they had already confirmed receipt of, and aren't responding to our calls and emails. It is quite clear they are trying to get out of fulfilling their obligation.
You just nailed this "dealer GAP insurance" problem right on the head. Of course, there are dealers who sell a legitimate product and help their customers do everything they can to work with the insurance company to get a claim taken care of. However, your story is becoming more and more common. I'd like to know who this dealer is who sold you the GAP policy, and who the insurance company is who is supposedly standing behind this product. They need to be held accountable, and I'll be glad to do whatever I can to help get this resolved. Please also share the city and state the dealer is located in. It will help us do a little more background work on our end. There's pressure that can be leveraged with your state attorney general's office, state legislators, and federal level legislators offices. Make sure you put a @Kevin Hunter in any of your responses so I don't miss the messages. You can also email me at NorthWest Digital News: [email protected] This is the email that comes directly to our news desk, and my co-hosts will get a chance to take a look at it too. If none of the other avenues work out, we'll be glad to call them during a live broadcast and ask a few questions on the air. I'll need you to send me documentation to validate your claim (before we air it), but I will be happy to do it if you'd like. However this works out, keep me in the loop. Thanks for your comments!
It likely has to do with the year, miles, etc on the used vehicle you are talking about. That's why a new car is easy for the dealer to do. If you want to go used, shoot for something in the 3-5 years old, without miles being too high. Older vehicles with higher miles are almost always the reason a deal is killed (when credit challenges exist).
True, for a short period of time. Once the bankruptcy is complete, you'd be surprised how quickly bankers are willing to finance a car. They just want to know that your previous obligations are discharged and there remains no recourse from other creditors. You might wonder why they would finance you soon after a discharged bankruptcy. The answer is pretty simple. Cars are a necessity for most people. If you just finished a bankruptcy, bankers are aware of two things about you: 1. You are inclined to be more careful with your credit, at least for a period of time, following a bankruptcy filing. Most people don't want to screw up again... at least not immediately. 2. You can't declare bankruptcy for a period of time after you've just had one, so the asset is reasonably secure. You won't be able to legally block them from coming to get the car if you default. These two factors are behind a bankers considerations when financing a vehicle shortly after bankruptcy.
Everything this guy said might happen in the US but NOT IN CANADA ! Canadian Finance Offices are there to get the deal FINANCED . Also Factory Extended Warrantees are very important option if your financing the vehicle longer than the standard warranty . One of the number one reasons to be late on a monthly payment is if you have to pay for a repair on your vehicle !!!
There are good dealers and bad dealers for sure. Remember if you buy a warranty or gap insurance and want a refund, it’s possible. I used mywarrantyrefund.com to help me out and get the refund for me. So worth it.
Dealt with manufacturers warranty plans only (Ford) for our families vehicles and they have saved us tons of money in the long run as we keep out vehicles for a long time. I love my local dealership. I wonder why he doesnt talk about life insurance and disability insurance and the large mark up in that.
There's no doubt that manufacturers warranties get the highest points. Not only do you have a credible company standing behind it, but you can go to any authorized dealer to get work done. The same is not true of many of the third party warranties. In fact, I hear regularly of warranties not honored at all.
Great video and I didn't realize that about the doc fees but you are correct the window sticker has a delivery fee on it. I'm about to give this a test in a few days when my car is delivered..ok I'll give them the $75 but that is going to be the max.
Thanks for your comments! Come on back and let me know how your next car buying experience goes. When it's all over, let them know you got some of your car buying savvy from this video. It's sure to make the finance man very happy... NOT. lol. Anyhow, I'd love to hear how your experience goes. Expect to see many things on the "product menu" in finance that aren't mentioned on this video at all. They are very skilled at getting car buyers on one thing or another, and sometimes on a lot of things. Here's a piece of advice that wasn't on the video. You don't have to sign any of the documents they put in front of you that are "waiving the extended warranty" and "declines this product" etc. These documents only serve one purpose. To make you the buyer feel like you're stupid, and declining stuff you really should be taking. They will say stuff like, "This is what everyone gets on their vehicle" or "Here's the route that MOST people go." What they don't say is... MOST people they fool into buying crap they don't need. Don't sign any of the documents that say you're saying NO. There is no law, and no requirement, that you have to sign anything to say you don't want their products. Just say, "I said NO... that's enough. I'm not signing anything to tell you I said NO. Do you understand the word NO?"
Dealers make fuck all profit socialist cock sucker , In Australia most dealership are small business franchise that are paying high regulations and high taxes to fucking Government 50% . Cars are taxed in Australia 10% gst , 5% tariffs , 33% luxury car tax ' 3% stamp duty . Bmw 330 is $77,000aud drive away / taxed $17000 . The same car in usa where you live is $47,000usd drive away / taxed $5000usd . So who rips of Consumers Government 35+ yrs . My Dealer borrows money to buy stock and upgrade dealership . My company has millions dollars of debt like most small business owners in Australia
Some of these make sense. However, GAP insurance is used quite often because the insurance companies aren't required to use a set value like KBB, NADA, or Black Book. People are upside down on a car. What happens if that car is totalled, stolen, flooded (I'm in the Houston area where 600,000+ vehicles were flooded last yer!) and you owe more than the insurance wants to pay? You either have to make payments on a car you don't have any more, or it ends up as a repo on your credit. This guy thinks everyone is a lying scam artist, but its you who has to pay the price if you avoid GAP or a warranty. Warranties can't be too big of a scam, one of the main reasons people buy new cars is to avoid problems knowing its under warranty if anything goes wrong. I believe in a middle ground- Buy a used car thats 2-4 years old for half of what a new car costs, and buy a good warranty. Best of both worlds. Piece of mind at half the cost. I agree that scotchguarding the seats, undercoating, and "paint protection" is a rip. The doc fee is regulated by the state, and at the most is only $100-200. The real scam, which he didn't even mention, is "Dealer Service Fees" and/ or "Dealer Prep Fees" that can be as high as $5,000. These fees allow people to see a low advertised price and go in and only see the fees at the last minute. The warranty or GAP should be removed, and the other fees put in the next video. Its all common sense. If it sounds too good to be true, it probably is.
+ronniepike1972 Went to the tow yard to retrieve personal items yesterday. I was told the car had massive frame damage from the accident. I was T-boned on the driver side B pillar and the frame was twisted on the passenger side pillar! Toyota has my business from here on! Side note, my very expensive paint sealant from Toyota was missing!! Unethical tow drivers!
As far as the GAP insurance claim it will be handled by a third party so it may take 3-6 weeks to settle the pay off on the car! That's a hassle!
+Brian Waller I agree with what you said. You are correct. Plus I would like to add that a total loss isn't just accidents. A stolen car or a flooded car are just two other examples of how a car can be totaled by an insurance company. I've even had a friend who had her car badly vandalized by her ex husband and it was totaled because of that too. There are way too many people in cars that are upside down, and it only makes sense to pay the $8-10 a month to not have to live a nightmare scenario.
+April Sutterfield Thank goodness you had GAP. It is one of the best "bang for the buck" things you can get. This video assumes everyone at the dealership is a snake, and everything they sell is a rip off, but that's not accurate. Like you found, many people would be in a world of trouble if they skipped GAP. At the most it adds $8-10 to a payment, and in today's world that is nothing. Unless someone is putting a huge down payment towards a car, that $8-10 additional payment will be a life saver. There are people driving around that are $5k and even $10k upside down on their cars. Without GAP people end up with no car, an open loan on their credit making it almost impossible to get another one, then a repossession on their credit unless they pay payments on a car they no longer have. I'm with you, I'll gladly pay a few bucks a month to not be in that nightmare scenario.
I have to chime in here, I purchased a 2018 Toyota Corolla on Nov 10th 2018. We bought a plan for GAP coverage as well as an extended warranty through the Finance Dept. On January 3rd 2019 I was T boned by a 1970's Chevy truck. My car was deemed a total loss. We are having to use the Gap insurance because the car was so new we had zero equity in it. Had we not had Gap insurance, we'd be out $2000. The extended warranty is being added back to our next vehicle. We stand by our decisions and plan to always carry Gap insurance for the 1st 3 years on our new cars!!!
+Kevin Hunter I disagree with your analysis of the odds of a total loss. The real odds of a total loss should be calculated based on the actual vehicles involved not total on road. You will find that in 500 accidents involving 1000 cars, probably 500-600 of them will be totaled. Meaning the if your vehicle is in an accident the odds of a total loss is 50-60%. There are several factors. 1. Salvaged values are higher than the cost to repair. 2 the cost of parts and labor for electronics, or specialized parts has gotten expensive. 3 the demand for occupant safety more vehicles today are designed to completely crumble. For example cars are being totaled with as little as $7000 in repairs because the salvage values are fetching 8-10k. Another example is the Ford f150 and its aluminum construction. I've heard it has nearly doubled the cost to repair over the previous sheet metal.
What would you call the presentation made to a customer in the finance office where there are no witnesses, and car buyers are lied to frequently? Would you call that "one sided?" This video provides the OTHER side of an often one-sided presentation made by finance officers all around the country. I receive over 12,000 comments and emails a year with just nightmare car buying experiences. SOME dealers are not as bad as the industry once was, I'll give you that. Other dealers are as bad as the business ever was, and yet others are worse than any of the horror stories of the past. You see a small part of it. I've heard from car buyers all over the country, by employees who work currently in the car business, by former employees, and folks from NADA, Consumer Reports, and Edmunds. As one of my NADA contacts recently said, "It would be nice if videos like this were unnecessary, but sadly, we haven't reached that point in the car business." He is right.
So simple…. I do it every two years when i buy or lease a new car. Get the monthly price down to what you want, papers are filled out, go to finance manager and simply say " Don't even ask if i want ANYTHING extra that will raise my monthly payment because ill walk right out". Once they start to say ONE thing about selling BS for your car, Get up and start to walk out.. PROMISE you'll walk out with the price you negotiated with the salesman….. GL to all buying a car!
I Agree but when you know what the lowest payment a month a car or truck should be and you get that number then its on us to either sign or walk! Example, Just picked up a brand new grand cherokee overland, I know the true leases out for about $700 a month with zero down but i went in and picked one out, said I'm not paying a dollar over $475 and i didn't think id get it for that low but i did! I never put money down on a lease ever and nobody should. If you can't afford the monthly payment then the car/truck is priced out of your affordability zone. BTW always 36 month lease unless its a car i buy..+Kevin Hunter
Your overall idea makes sense... however, I have frequently warned people that a monthly payment should not be the "goal" or the deciding "factor" in a car deal. Why? Because a monthly payment goal can always be reached by the finance office getting creative. Not a good idea. If you know what you qualify for because you talked to your own bank or credit union first, then you already know the rate, the term of the loan, monthly payment, and how much cash you are putting into the deal to make it all work. So, bottom line... don't let the finance man fleece you because you focused on a monthly goal. These guys are pro's at making any one factor work out for you. $350/mo at 36 months is a lot different deal than $350/mo at 84 months... just to illustrate a point. Remember that it's the entirety of the deal that should make sense to you.
You can't renegotiate a car price, and you can't get things like document fees or delivery fees refunded, but nearly every other thing in your car contract can be cancelled and/refunded... if products are cancelled right away, you likely get entire amounts back. If they are cancelled later, you typically get prorated amounts back. If you were put into a car loan with an interest rate that is not right for you, you can refinance the loan at any time. Tell me what (and when) you think you were ripped off on, and perhaps I can give you more specific feedback.
Great video. when I bought brand new Honda Pilot. Paying cash, still have to go finance manager for the paper work . He sure offer me so many thing. Example: extend warranty, rust proof, rim protection.
I refused all the offer, he lower the price three time , I still refused them all.
He does not look too happy. So what ...
Video saying document fee less than 75$
I paid 210$. This fee was never mention to me up front. I learn something new today.
Anyway when I walk in to the dealership I see the car that I like. I talk to salesman quick and simple way.
I told the salesman go talk to the sale manager what is the best price you can offer me, if the price is right I buy it, if not I will leave and don't want to wastes time between us and no hard feeling. Simple as that. Just tell me a solid one time price.
He coming back and give me $2600 off. I was thinking $2000. I end up better deal .😂😂😂😂
Rust proof dealership want $1200. I got it done for $375. Dealership is middle man to made profit on rustproof.
Bingo. They went out and made a hasty decision. Got talked into a bunch of extra products that made the vehicle a financial drain on the household. The unhappiness over the next several years is due to a pretty simple fact. Who wants to be car poor? A vehicle depreciates rapidly, and it's only the unwise who make it a worse investment than it already was by purchasing all the finance man's products.
who ever made this vedio, you sound so stupid. Dealerships make their money in the service department.
why are you putting a bad name on car dealerships? GAP protects the loan especially if there is negative equity. insurance company offers gap but not upto 150%.
The most common software used in a car dealership is called "Dealer Track." When the software company itself reports that the finance office is the number one money maker in the dealership, it most certainly is. There's something you are obviously unaware of, and failed to consider when you attempted to call me stupid. Do you have any idea what the average bill is in service? Any idea? How many car owners do you think would take their vehicle to a service department that charged them thousands of dollars every time they visited? You would be correct if you said.... NOBODY is that stupid. Keep that in mind for a moment... The dealer finance office adds $2,500 or more to every car deal that comes through the dealership, on average. AAA reports that an average consumer will spend $50 per month in a given year on their vehicle for maintenance and repairs. Sound like thousands of dollars per visit in service? NO. Given the entirety of the evidence, still think that service department out-performs the finance office? Lol... Finally, let's discuss your calling me stupid. You mention that good old dealer GAP being so wonderful because it covers 150% ... meaning your loan balance can be $15,000 while your car is only worth $10,000. Does anyone reading this comment think that a smart person would have a car loan that is 150% of their vehicles actual cash value? Of course not. Only very stupid people do that. Since Oslyn clearly thinks that the "smart" person puts themselves in such dire financial position that dealer GAP is a good deal... I will let my viewers decide who the stupid one is here.
If you decide that an extended warranty is right for you, I totally agree with you. Go with something from the automaker, not a third party. The fraud that happens in the extended warranty business is typically third party warranties that do nothing more than add profits onto the dealerships bottom line.
Typically a used car, but finance officers definitely try to sell extended warranties to new car buyers as well. You might wonder why? Well, it just reduces the likelihood that the warranty will ever be used, and that means even bigger profits for the dealership and the finance man commissions.
The first stop in anyone's car buying journey should always be their own bank or credit union. If it is totally impossible to get help from your own banker, then you don't want any of the options at a dealer car lot either. Thanks for your comment! If you've gone through your own bank or credit union, do you mind sharing what the process was? It helps other car buyers understand what to do... yes, unfortunately many people have no idea how to talk to their own banker. Thanks in advance!
They told me I was buying a car for 14,000 dollars after the deal was done .....I went home decided to look at my papper work ..and noticed the car papper work..was 30,000....I returned the car and demanded my down payment back....I got it back...I never went back again..Also the car warranties, don't cover nothing ....if the car goes over so many miles....And also added car cover she it breakes down , they say pay an added 400..dollars and when your cars breaks down just bring it in....what they don't say..is dummie ..bring it in and we charge you again....they don't leave you alone until your car payment is over 400 dollars..I don't buy cars any more ...the car business is about to blow...Cars have no value ....New or used ....and they still lie to you ...made to many of them ...they sit in open lots just rusting....that's why you only trucks being sold...For 75, k.....car industry is done...W.w.g.1....W.g.a..In god we trust...
What a crock of shit 😂. I’m an F&I guy and the drama queen that made this video either used to be in finance and got launched or is trying to sell something. TELL ME YOU’RE not selling something 😂.
Inbox me and I’ll give you advice for free on how to get an awesome deal everytime. Don’t buy anything from
Monster Truck Guy 😂
Dealers profit margins are less these days than the 90s , you're lying that dealers make Big profits when they don't , The Government take more money from business to pay for democratic socialism horseshit . Most small Business franchise have million dollars of debt . Our company borrows money to buy stock and upgrade dealership in Australia
With your next comment, share the dealership you do all your financing wizardry at, and the city, state that people will find your dealership in. You want to tell people you're the know-it-all in finance? Let's have some transparency... After we get your dealership information, we can inquire in your area about customers who had Omar Elahi as their finance man, and learn how "great" your process is. This ought to be fun!
Nobody should inbox Omar.... nice try, though. Funny that you think somebody sharing with car buyers what they should expect from people like you is "drama"... lol. Look at all the comments from car buyers who get up and walk out of a finance office after talking to people like you. You follow them out the door, you don't understand the word NO... and you push push push until car buyers cave in and buy your products. You do this for your own pocket, not for the buyers benefit. It's like Car Dealership "Finance Theater" as you dance around one NO after another NO trying to peddle that finance office "investment protection." I think everyone has a clue who the drama queen is (and the conartist, solicitating inbox requests for financing... lol): Omar Elahi. You really take the cake...
Brokerage fee amount by transaction value 1.
Trade online and settle your trade to a CDIA or CommSec Margin Loan 2.
Trade online and settle into a bank account of your choice.
Share Trades over the Phone 3.
CommSec Share Packs online 4.
CommSec Share Packs over the phone 4.
Trades requiring settlement through a third party 6.
1 For GST rounding reasons, the final brokerage fee may vary from the stated or expected brokerage fee by a couple of cents.
4 Normal brokerage will apply when a stock acquired through CommSec Share Packs is subsequently sold.
5 Amount per share will be noted as brokerage on each confirmation issued. There will be no substitution should a stock have a trading halt placed on it.
6 Includes third party Margin Lending, and where the Commonwealth Bank exercises its rights under the loan Terms and Conditions.
Other fees may apply. Please see the CommSec Financial Services Guide.
Open a CommSec Share Trading Account.
Buy and sell shares using a CommSec Share Trading Account with our cash account - with it you can seamlessly settle trades, transact and earn interest.
Buy and sell shares using a CommSec Share Trading Account with your existing bank account.
Frequently asked questions.
Shares held with another broker.
For the transfer to be successful the name and address registered on your issuer holdings must match your CommSec account.
Your request will be completed within 72 hours.
Shares held with the share registry To transfer shares held with the share registry into your CommSec Trading Account you need to complete an Issuer Sponsored Holdings to CHESS Sponsorship Transfer Form.
Your request will be completed within approximately 48 to 72 hours of receipt.
When you have bought and sold shares on the same day and the next trading day, your payment may be partially or wholly offset. For more information refer to the New Client Guide.