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!
The guy chased us down the hall, through the showroom and out to the parking lot where we were joined by the manager and salesperson. They tried every trick and finally accused us of wasting their time. My phone rang continuously for 3 hours. I didn’t complain because I knew the owner condoned everything they did. I did, however, take our new car we bought elsewhere and took the GM of the dealership outside, showed him the car, pointed to the dealer logo and gave him the finance mans business card and smiled.
Mike brady the dealership I tried to go through and worked for at one point tried to pull a Bait and Switch on a Ford Fusion I told the guy no I want to get the fusion... I had to call the bank I would have financed through and they had no records of me even in there system. I like fords and pontiacs they wanted to pawn me off in a Hunday veloster I don’t like that car
Of course it does. I solved the problem by arranging financing before going in. Telling them they don’t need a credit app. Make them get to where I want to be or walk (I do my research and know what’s fair). Never trade a vehicle... usually pass it down to family or donate it. Things tend to get pretty simple when you take away their smoke and mirrors. Realistically most people need to finance their cars and folks with lackluster credit may have to get the dealer to facilitate financing at higher interest and put them in “get her done” vehicles, but if you have decent credit, try to arrange beforehand. Not many people can pay cash. To me it’s critical not to take the car without an approved contract and leave emotion at the door. It’s their most powerful weapon.
Every time I have gone in to buy a vehicle I always have the information and homework done. Dealerships hate an informed customer. I have been kicked out of a dealership in washington state before because I lay out all that info on them and then asked if they want to revise their story on price, interest and invoice data. I refused all of the so called "add ons" saw they were trying to slide in a couple and after I told them they weren't going to scam me they ran me out.
In florida, the truck I bought I gave them what I knew the truck was worth, told them I want no extras and when they go back to bullshit with the FO that he should know that if he comes back and doesn't have exactly what I know I can afford, what the payments should be interest and so on that I wont barter. He tried it once, I said sorry for wasting his time and they came running back out to my truck. They said that if I just came up on my down payment that they could get me in that truck so I left. They called back a few days later saying they had another older truck for me and I told them no. A day goes by, they call again, another truck. Next day goes by they said I should come in to sign the papers for the original truck. I thought I would play the game and went in. I saw that they had everything ready to go and I asked to see the vehicle again and they said it was in detailing which they wanted me to pay for and I told them no, that it was a waste of time. They buckled and drive it to the front. I opened the door to look and make sure it was THE truck and got a face full of what could only be described as the smell of a nuclear grade baby diaper smell. I was told it was just the fabric protectant and that it would go away in a day. I asked if they were going to charge me fore that and they said they always do. Needless to say I left that place angry. I ended up getting that same truck but with more accessories, $1000 less in starting price and the guy came back and said that my payment was going to be a bit less than I wanted with no changes to down payment or loan length. One thing I did do was ask if they would give me a second key and fob since it had only one and they said sure with no questions. Just took a day to get it but I got my truck at my price at my payment and the extra key and fob because I stood my ground. My GF was saying the whole time...just sign the paper and lets get the truck...... She isn't my GF any more.
Thank you so much for this video! I am in the process of purchasing a used car which is my first from a dealership and I have felt completely lost. I have been trying my best to figure things out on my own but there is much I don't know and that makes me nervous because I worry of falling victim to a trick. there are some great tips in this video and I definitely plan on applying the information shared
Many car buyers make two really big mistakes.... 1. They don't do very good homework before they go car shopping. They just get the idea to "go and look" one day, and find themselves driving a car back that afternoon. That's not very smart, so you've got a head start on this one. 2. They are afraid to say NO, think they can't say NO, or are just too nice to say NO. Practice saying NO, NO, NO, NO... you'll get a better car deal. Best of luck to you!
I've never once financed through a dealer, I always use my bank and get pre-approved for the loan amount Im looking for. I then call my insurance provider and ask for a hard quote for the make and model I am looking to purchase to see how it will affect my current policy. As for the vehicle purchase, I do a "bid style". I research all the packages etc. I want and send the requirements to every dealer within a reasonable distance I'm willing to travel and let the dealerships fight it out for my business, of course I will try and see if a local dealership will match or beat the best quote I get but aside from that I treat it like the Hunger Games, best one/last one wins.
Great info, but a little late for me, I already but a car at BILL LUKE in Phoenix Arizona (10/10/2018) and got charged $499 for dealer doc fees and $895 for a 60 month Gap Contract. Can I get my money back?
You can't do anything about the $499 doc fee at this point, but you can certainly cancel the $895 GAP policy. Here's what you should do first. Contact your own insurance company. Have your loan papers handy, and ask them if you need GAP insurance at all. There's always a good chance that you don't, because car dealers are famous for selling people products they never needed... including GAP. If the insurance company says NO, go back to the dealer you bought the car from and immediately cancel the policy and demand your money back. If your insurance company says YES (you need GAP), ask them if they sell it, or where they can direct you to get a reasonably priced policy. Most GAP policies run around $35 per year... and you aren't likely to need it more than the first three years you have the loan. Bottom line: GAP will cost you just over $100 total from your own insurance company. That saves you pretty close to $800. I'd get the ball rolling on this sooner than later. Come back and let me know how it goes.
Couple experiences/ recommendations.
Experience wise, I have not had a good experience with the finance guys, first time with my vehicle, second time with my friends vehicle. My friend had a much nicer guy than I did when buying his Toyota, me on the other hand I almost reached over and considered smashing his head into his desk several times. Luckily I ended up getting a decent warranty and everything stayed the same.
Recommendation: After that I experience, personally I would recommend getting your own financing set up and purchase private party from a great seller. My dude was super chill and he transferred me his warranties and pre paid maintenance. There was no dealer bull shit, I got a better deal on the truck, and cheap ass interest. Save yourself bull shit people and set up your own financing! I saved on taxs, doc fees, and my TIME
As a finance manager in Canada I was super curious to see what your tips were for buyers coming into my office. My first reaction was wow, there are dealerships that still do 3/4 of these things? You'd lose your dealer license here in BC. I'm reading comments about people spending 3 hours in finance being pressured and thinking, I wouldn't sit through that so why would you? I always aim for under half an hour from credit app to done signing, full disclosure and no pressure, and from a dealership profit standpoint my numbers are very good. You can do your job without all the other bs and clients will respect you more for respecting their time and wishes. Repeat buyers and long term service customers are the key to a dealerships overall success in a world where you can buy anything from anywhere.
John, it's always nice to hear from an honorable person in the car business. Some car buyers tell them that there are no good people in the business. I know better. I've met many of them, and call many of them my friends. You are proof that there are good people in finance. Thanks for your comments!
Last year, I went to a notorious car lot, painted a decent deal, tried the antics, one, not trying to get the interest rate I expected, tried get me use their sky high financing, refinance next day at my credit Union on my lower 5% than their 24.9%. I told them no, they tried the customer waiting for it trick, I walked, 3 days later they was calling me to sucker me again.
the best way to buy a new vehicle is to negotiate everything online prior to ever stepping into the dealership. The internet sales manager is now the person with the most power. Welcome to the new age!
In 2012 I bought two brand new vehicles. One was a Gmc terrain (complete Trash, thank goodness for lemon law) the other was a custom built Dodge charger. I bought a Mopar lifetime warranty I believe it was like $1800. I never had any major issues with the charger. I bumped a parking lot light that's surrounded by concrete, and it cracked my headlight, used the warranty and got it fixed. I also have an issue with my radio stations coming in staticy, dealership said use my lifetime warranty and I pay 150 they will replace it. So far, I have to say I'm happy with the Mopar lifetime warranty.
I tell them up front that extended warranties are a money maker for insurance companies. If they lost money, they'd be out of business.How can they argue that? I just bought a Silverado and they had a $1500 or 2000 discount for using GM financing. No wonder at 6.6% they would make $3k over a 3.2% loan I can get. I'll be refinancing tomorrow, fine print states they can charge me $75 for paying back early.
I’ve bought extended warranty for a Mini Cooper with a maintenance warranty and it was best thing I did. My oil changes were covered, break changes and an expensive dual sunroof leak that I wouldn’t have been able to repair on my own. These warranties were for 5 years and well worth every penny.
Hi kevin thank you for the very informative video. so i have a question about the end of the video that caught my attention. what if im in the finance office and i casually sat my phone on the table easily visible by anyone and the finance officers saw that it was recording, are you saying that this tactic will speed up my paper work process? and maybe keep the paperwork honest?
My finance guy got me in the room 1 on 1 & tore my pants down slapped some used motor oil on my ass & raped me something awful! And he did it while I was just signing away on everything, in my own BLOOD! For the luv of CHRIST!
LOOK WHAT THIS VIDEO HAS DONE! I'm going to bed now crying!!
And holding my heinee hole.
I work at a Ford dealership for about 4 year (sales, Leasing manager and than Finance Manager). This is probable the best and most informative information that I have ever read or viewed. I'd like to say though that I bought a preowned Cadillac DTS from Carmax about 7 years ago and for the first time I purchased a extended warranty. I new that Cadillacs can have problems with electronics. So I paid $1,300 cash for it. Well, I had to use the warranty on about 12 different things within the 7 years or after the first 3 years when the original warranty expired. One day I decided to take my car to an auto shop other than Carmax because I didn't want to wait 2 weeks for there appointment availability. The office manager said she love this warranty company because they did not give them a hard time on claims like most companies. I save thousands of dollars with this particular warranty. But, I'm about to buy a new Ford Explorer and NO extended warranty.
The first thing they ask is how are you going to pay. I told them cash after all the dancing about price the finance guy ask me and I told him cash he said if I agree to finance he gets extra money and I asked how much. I said give me half of that. We agreed and he said I couldn’t pay it off until 6 months otherwise the bank might get suspicious
There is no such thing as the bank "getting suspicious" about early payoffs. What does happen is if you pay off early is that the finance man gets a charge back on the commission he earned from financing you in the first place. The only thing you were doing by following his advice was to make sure he was paid a commission, and he gets to keep that commission if you don't pay off too early. Understand that the only way he gets paid a commission is by making the bank money. He makes the bank money by charging YOU. Typical line of BS. What he should have said was, "If you are willing to finance your car, and promise me you won't pay it off before six months... well then, I can earn an additional commission on this deal and I will like you more." Maybe you would have wanted to be a nice guy and do it, who knows but you? Anyhow, that's precisely what he was doing.
I bought a brand new Nissan Altima two years ago. I was charged delivery fees. Can I go back to the dealership and get that money back? Also, paid $500.00 for gap insurance. I was told that if I decide to cancel this insurance I can get a portion of this amount back? I was ripped off by the dealership on the price. My regrets for being in the rush. Please let me know if I can get any of these fees back. Thanks so much!!!
Too late to do anything about the "delivery fees." That's something you have to discuss at the time of purchase. As far as GAP is concerned, contact your insurance company first. Find out if you even need it. If you do, you can likely purchase GAP from them for much cheaper. That is usually the case. I'm kind of surprised the dealer only charged you $500 for it... they are going much higher these days. Greed is an amazing driver...
Kevin, my name is Steven, and i really wish i had seen this prior last labor day....i ended up buying a 2017 Chevrolet Sonic that had over 80k miles....well after it had supposedly been re-conditioned prior to their lawfully being able to sell it as a certified used car here in Arizona....first noticed one of the windshield washer prayers was not producing any fluid, called the dealership and was told no problem to just come in see the used car mgr., who would then happily hook me up to the service dept. wouldn't take any longer than an hour to have it fixed...so being that i live over an hour away agreed to come by in the morning....meanwhile back at the ranch....i am being told i have a low tire at 27lbs., have my own mini air compressor that also measures air and it read 38lbs.!!!??'...any how i prefaced this with this story, to better see where i am going here... on labor day Mid-Way Chevrolet offered $4500.00 a junker trade-in which my '96 Mercury Sable qualified for so after agreement with the sales guy, we were handed off to the fi-girl, who was getting sorta agitated with me because i really did not require any if the products she offered as the car was out of warranty due to mileage, i would be more than capable of 99% of any mechanical work that may arise, my insurance covered roadside emergencies, and every other benefit she said we needed, stating the keyless entry fob with a coded key is $300.00, to replace if lost or damaged...i asked about battery replacement was told it had to done only at the dealership, knowing better, I still said no....now i have become a yo-yo, as financing was pending, and after signing a paper saying as much i was allowed to take the car home....to cut this short.....after seeing Your video i feel they are attempting to have me pay for an extra $3200.00, in a Doc. Fee, Service contract that i failed to catch being tired, frustrated, and You know, and aftermarket they had previously added before putting it up for sale, was told it was already included in sales price, that they were required to list it separately, as an itemized breakdown of the car's price.....the area this conversation took place beginning to end was fully covered by security cameras, as we were now in a security zone...i figure all verbal reasons, excuses, are filmed and has audio...so bottom line i feel i have been lied, to cheated, and misled that the vehicle has had some sort accident damage repaired though the Fairfax i was shown reported no accidents. I am planning to meet the used car manager again on Tuesday morning to initially have the car fully re-conditioned since that is where he has take it to fix my washer sprayer anyway, as quite a few glitches are starting to crop up though we've had the car less than a month, and not even racked a 100 miles on it.....ok I'm done but would be appreciative of any advice or thoughts You might have for me.....Thank You..
There is no such thing as a Service Contract that is "already part of the car." If they told you this, it is pure nonsense. Any Service Contract can be cancelled at any time, so they have no choice but to drop it if you don't want it. The Doc Fees you are stuck with, they needed to be negotiated at the time of purchase. I'd like to know what the "aftermarket" stuff is that they claim was already there. You may have some cancellation opportunities there too. $300 is pretty typical for a key fob, so while the price may seem high, it is what they are going for these days. With regard to damage, do you have the report which indicates no prior accidents? That can be very helpful to your case. Dealers usually end up taking a car back when they've misrepresented accident history on a car, and they routinely do it.
Don't be hesitant to either call an attorney, or contact the Attorney Generals office (or do both). Dealers don't like to have to deal with either one. If you let them know you are very willing to take the next legal step (and involved the AG office), they come around to listening better pretty quickly.
Do other viewers a favor, and let us all know what dealer, city, and state they are in. It helps other people avoid the nonsense you just went through.
I remember going to a dealer ship to buy a car so I can use it to work for uber. The dealer told me he proud of me being a young entrepreneur and he like to see more young men like myself and he remind him of himself when he was my age. The dealer even said I look a lot like his son. I was flattered and moved. But then when we get to the negotiation I didn't like the deal and told him i'll think about it he started crying I couldn't believe it a grown man crying so I signed the paper work big mistake. I almost took him to court for not return my 500 down payment.
I want to explain the circumstances faced in Hyundai dealers showroom.
I went to Hyundai dealers showroom to check the car prices, this is my first car don't know many things. The salesman showed some vehicles, he also pressurized with the deal, and 0% finance is going to end tomorrow, so I went there with my brother and asked the salesman can we quit the agreement if we don't like the price or financial issues, the salesman told me yes you can quit it and the paper is only for financial approval process. The salesman mailed me, and the finance approved. I called him to cancel the deal because of economic issues, and he didn't respond, and I mailed him and called him to stop the process, but he didn't respond then I went to the dealer's office to talk in-person but he was not there, so I spoke with finance manager to stop the process he told me I have to discuss with salesman only. Then I went to the dealer's shop again to meet salesman he just came and showed up the car VIN number and everything, and I asked him about the mail he told me he just saw now, and he is pushing me to take the car, I explained everything and I also requested and apologized but he forced me to take deal. I went there with a friend as the support he was so rude to my friend and said to my friend you're not taking the car so I wont to talk with you we told oaky the salesperson took me to the room and asked the reason, and I explained the reason. my friend told its better to talk sales manager as well so me and my friend was entering the room of financial manager to discuss the cancel agreement. And the salesperson was rude and closed the door right to my friends face.the financial manager said we can cancel the deal but there will be consequences and threatened with legal notices and court and I explained to him what happened with purchase agreement document, and I told to the finance manager your salesman said its the purchase agreement is for financial approval process only. I didn't sign the ownership papers and hand over documents and insurance paper, and I didn't give void cheques for the monthly installment moreover they didn't deliver the car still.
Please help me with this issue.
He told me it's for the financial approval process document, but now he changed his words and saying its purchase agreement.
Thank you in advance.
Wow, am I ever glad you wrote to me. Sorry I didn't see this earlier. First of all, you are NEVER OBLIGATED to sign out on any car deal, and there is NOTHING THE DEALER CAN DO about it. If you don't want the car or the car deal, demand that your information be permanently removed from their files, demand any documentation that has your personal information on it, and never go back to deal with these idiots. Only a crook operates in this way, or an extremely broke salesman/sales manager who are so desperate for a car deal that they are willing to use strong arm tactics on their customers. YOU ARE THE ONE IN THE RIGHT. Don't cave in to them. Do not take a car you don't want. The paperwork, the contract, all of it means absolutely nothing when you do not take delivery of the vehicle. End of story. Please also be aware that you should file a formal complaint with your state Attorney Generals office. Send them every detail, pertinent dates, copies of emails, etc. Let the dealer also know you are doing this. You don't have to worry a bit about court, legal action, or any detriment to you whatsoever. This dealer is nothing but a crook who is taking illegal action to force a customer to buy their product. By the way, please respond below with the dealer name, and what city and state they are in. You can also share the names of the salesman, the sales manager, and anyone else you have talked to on this deal. This video is one of the top videos in the country on dealer finance, and you'll be helping others in your community avoid the same disaster. If you need any additional help, please email to [email protected] The email comes directly to our news desk on NorthWest Digital News. We'd love to hear from you.
Not everybody has $$ like you to fix their cars .... I always buy warranty for everything washer and dryer cell phone etc ! And yes I have a piece of mind and it it breaks they fix and I have no worries
If you cant afford a warranty dont buy a car or dont buy the warranty
Almost like tipping a waitress if you cant afford tipping dont go to the restaurant order to go
Your an idiot I have never heard worse advice about anything in my life. I totaled my car and listened to you and getting the cheap gap from my insurance company. It covered nothing. I owe thousands to the bank and lost my job. Thanks a lot.
Easy Care Total Care Warranty was a God send for my 128i BMW that I
bought from Park Cities Ford Dallas The warranty was purchased at BMW of Dallas and the warranty company paid for all approved repairs.
Thanks Kevin when I get ready to buy what if I tell the salesman if I step into that room with that finance manager I’m not buying anything and get it straight because I’ve had bad experiences before and almost come to fist with the finance robbers
I always find my own financing, credit union. So when I go to buy a car I tell them don’t talk to me about payments. Payments tell me nothing about the car value. I want to see invoice pricing and all fees. I also want out of the door pricing. I always go with cars that offer manufacturer rebates. Once I have out door pricing and purchase order on the car I want I go to my credit union and talk loan terms with them. They don’t offer 0% financing but in many cases if you go with that option at the dealer you loose out on the rebates and discounts. When comparing to the life of interest on the loan the special financing in some cases cost you more then taking the rebates and going with a 4% loan financing terms. Always try to get your financing and tell dealer you are paying cash.
Don't ever buy the warranty. You can go online after you get home and purchase one out of state or over the phone for much less and through the manufacturer not some third party. Only exception is Florida, you have to buy the extended warranty in state.
Hey so I have purchased a car with a loan and then I signed paper's and then after 3 months I got a phone call saying that the loan interest is increased and they made me an offer of another bank with the same interest rate but I don't trust them. I made a downpayment of 1000 before getting a car so I want to return this car now can u help me on this
*Matthew Perry-* So many people are just BAD with money and get into keeping up with the *_"Joneses",_* for bragging & self-importance, knowing full well they can't really afford the shit they want. $1200 IPhones, buying convenience/restaurant food everyday, buying the latest around Xmas and broke by January, for example.
Nothing wrong with having nice things. I myself will buy *QUALITY **_over_** QUANTITY* when it's *_affordable,_* especially when it's on sale.
My GrandMother told Me: *_"Cheap people always have money, don't be fooled and You's a po' ass rat if You got one hole to get out of."_* I took that statement and applied it to My life.
I own 2 rental houses & a small business. 1st House I inherited, the 2nd, money saved the from 1st house renting bedrooms, I purchased the 2nd. Money saved from both houses I got My print shop, now working on a take out restaurant.
Sure it takes awhile and there are overhead expenses & maintenance, outside of that is $aved. Before all this I was piss poor, I am not rich, but I & family are comfortable.
I just don't live beyond My means.
*Matthew Perry -* Save Your money like I did. I will never be ripped off by financing anything. If I can't pay in full I don't need/want it.
Financing gets more people in trouble than not. Impatience to save also gets fools to pay more. So the real MONEYBAGS are the ones who finance and pay interest.
Some of the info here is completely fair - there are a lot of scummy dealers out there who only care about their bank accounts. But there are a lot of blanket statements that are just plain bad advice.
At the end of the day, it's the customer's responsibility to do their due diligence especially with the availability of information today. The problem is, not all information is good information.
1. Not obligated to buy anything no matter they say.
The majority of the time this is very true. BUT there are some instances where this is not true. Sometimes, depending on the situation, you may have to take a warranty or other finance product in order to make the deal work per the bank.
If a customer is trading in a vehicle and carrying over a lot of debt from that vehicle, the negative equity might be too much for the new car to hold. The banks will only lend so much against any given vehicle. This is called Loan to Value. If the LTV is too high on the new car, the banks will decline an application even if the customer has good credit.
There are two types of profit in car sales - front end and back end.
Front end is profit on the price of the car and back end is profit from the finance office. Front end profit goes against Loan to Value and back end typically does not. Sometimes, the finance manager will have to put a warranty on the car and mark it up the most they can, then pump up the trade in value or decrease the selling price in order to get the LTV in line with the bank's parameters. This is called transferring gross.
2. Obligated to sell to you.
Yes this is true. Any finance manager I've ever known is paid on straight commission and so has to sell product.
Manufacturers include a limited perforation warranty on defects in factory workmanship or materials. Typically they are about 5 years.
To say that you don't need to rustproof a vehicle is only partly true. Where I live, most vehicles rust out before they die mechanically. Whether you get it done at a dealer, or somewhere else, rustproofing is not a bad idea depending on the climate you live in. But to say you never have to rustproof a vehicle isn't entirely true.
It is true that rustproofing some vehicles can void warranties - for example hybrid vehicles are not supposed to be rustproofed.
4. Fabric Protection.
Off the shelf is a waste of time unless you want to scotch guard your pants and shirts because that's all you're doing if you use an aerosol off the shelf version.
Some applications require a high pressure wand. Granted, there are definitely dealers out there who 'sell' the high quality product but apply the cheap ones in the interest of profit. It's a personal preference on this one.
5. Paint protection.
Same as previous. Some products are certainly better than others and some dealers might sell a high quality product but apply a low quality one. Again, personal preference. I've never heard of manufacturers advising not to wax or polish a car for any period of time. Either this isn't true or it's new to me.
This one is true. Never bother with it. And if a dealer automatically etches all their cars, refuse to pay for it.
7. GAP coverage.
There are some situations where you don't need GAP. If you are leasing, you don't need GAP. If you are buying brand new and carry a full replacement value endorsement through your insurance provider, you don't need GAP if you did not carry any negative equity over into your new vehicle. I assume the video is referring to this type of endorsement through the insurance provider for $30 a year.
If you're buying a used car - or a car that does not hold its value well such as a Kia or Hyundai, GAP can certainly be a good idea. Your insurance company will pay to replace your car, but only its market value unless you have one of the above mentioned endorsements.
If you are refinancing debt from your trade in vehicle into your new vehicle loan, GAP is a good idea. Your insurance company will replace your car if it gets smashed, but they will not pay your old debt from a previous vehicle. Imagine smashing your car, owing 20k because you rolled 5k from a previous vehicle into this one, and the insurance company only pays you out 15k? Then you have a 5k bill and nothing to show for it.
This one always grinds my gears. First, a couple caveats:
There are some warranties out there that are garbage and not worth the paper they're printed on.
If a dealer tries to sell you a warranty in the hundreds of dollars price range, it is probably crap and a cash grab.
Sometimes you do need a warranty to be approved depending on the situation as mentioned above.
If it's a manufacturer warranty, you should be safe. There are some manufacturer warranties that are crap, as well, but most manufacturers will offer a warranty that is the same as what comes on the car from factory.
If you don't have several thousand dollars in a savings account to cover an unexpected repair, you should have a warranty. Realistically, the majority of the population does not have the discipline to save the money required for these emergency situations. It's much more realistic for the average Joe to pay 15 bucks on his payment to be protected than to expect him to throw money in a savings account in case he needs to use it. Also, for anyone that argues that you can just put an unexpected repair on a credit card, that's not smart. Credit cards are typically much higher rates than auto loans (unless it's sub prime).
If you're on a very tight budget, you can't afford not to have a good warranty. Notice I said 'good' warranty, as it will protect your credit and you won't be forced to decide to fix your car vs buy groceries or something else important.
I hate places that advise never to buy a warranty. Do your research on the reputable companies, OR stick to manufacturer coverage. Not all situations are the same and some people DEFINITELY should have warranty coverage.
Lastly, for anyone that thinks if a vehicle will have problems they will manifest early on while the car still has warranty, isn't completely correct. If a vehicle has a mechanical issue or a faulty part from factory, then yes this holds true. But doesn't it make more sense that the more miles, time, and wear and tear parts have on them the more likely they are to fail? Even if a car was 99.99% reliable that still exposes you to about 20 parts or components that could fail.
9. Doc fees.
These are pure profit in most case and you shouldn't pay through the nose for them. Someone decided to begin charging doc fees and now everyone does 'just because'. But, consider this: when you use the services of a lawyer or an accountant, or any other professional that charges and admin fee or a doc fee, do you negotiate it out or refuse to pay it? No, it's just a cost of doing business. That being said, certainly don't pay an outrageous amount.
10. Changing prices on new car or trade in.
This one is true. This is not necessary and these numbers should not change between the sales person and the finance manager.
You should always get full disclosure if possible for a breakdown on the numbers you are quoted and BRING THOSE NUMBERS WITH YOU. Nikki must have been on her phone or something when she signed because clearly she wasn't paying attention.
11. Rate, cash down, payment, and term.
The banks can dictate these things depending on the situation. If you have bad credit, the bank dictates the interest rate, maximum payment, and sometimes term depending on the vehicle you're looking at. Sometimes the sales people will quote an incorrect figure or number. For example, on a used car the sales person may quote a term that cannot be done because of the age of the vehicle. Sometimes this is a mistake, sometimes it's intentional to get you into the finance office.
BUT, at the end of the day, if the bank says we need $xx down to make it work, then you have to put money down if you want the car. A dealer will always quote the most attractive numbers they can, but these don't always hold true, especially if you have damaged credit or debt servicing becomes an issue.
If the finance manager changes these things without justifying why, then this holds true. But as a blanket statement, this is not completely true.
I've never heard it called this but this one sounds legit. Dealers will do whatever they can to get a potential buyer to take mental ownership of the vehicle they're buying so that they feel more committed to doing whatever is necessary to make the deal happen.
Some of this information is good, but it doesn't apply in all situations.
wow- thank you but I am so glad that I did not take your advise. My vehicle was a total loss and I am so thankful that I did purchase the TOTAL LOSS/GAP - it saved me several thousand. My bank WOULD NOT SELL GAP to me if I was going to put 30% of the value of the car as a downpayment. I didn't have that IF YOU DO THAT IS AWESOME DONT BE STUPID - BUY THE GAP TOTAL LOSS PROTECTION OPTION PLAN - I AM GLAD I DID SAVE ME $$$$$ THANK YOU
Last year I got 2011 Jeep Grand Cherokee with 100K miles on it , I got extended warranty and I was thinking will cancel it in a couple months , 3 months later got check engine light on and eventually ended up in 1000$ bill to fix it, gladly the warranty paid for that i just had to pay 100$ deductible
for me its important to have for some vehicle mades as the video states.
Why are people so terrified of buying a car? People don’t think twice about paying $10 a month for insurance on their cell phones that cost roughly $900 but think they’re being ripped off for spending $30 a month for what honestly is a person’s second biggest purchase in their lifetime. Yes some dealers and finance guys are deceitful in their presentations but overall the products are honestly beneficial. Also in another point why is everyone butthurt over a dealer making money? Research suggests the average profit in a vehicle transaction is less than 7% everyone is perfectly fine paying 500% markup on shoes, handbags, clothing, etc.
The 'dealer handling fee' was supposedly mandatory on the bill of sale, so i negotiated that it come out of the price. We agreed, but the numbers in the finance office didn't reflect it. They tried to get me comfortable signing sheet-after-sheet and then pass the bill of sale though hoping I wouldn't check the numbers. Great perspective. Thank you
1 thing finance managers do that wasn't stated in the video was adding finance points to a loan. example- bank tells dealer "ok with their credit we can offer 3.9% financing." they will try to tell you 5.9% ALWAYS ASK IF THE % YOU ARE TOLD IS WHAT THE BANK IS OFFERING AND FLAT OUT ASK IF THEY ADDED POINTS!
How is it possible for one to go back to the dealership to remove something out of the buying order that one has already signed? im already 3 months into paying for the car and am wondering? does it matter if its a lease??
True. Never buy a car without negotiating an out the door price, at least know exactly what your paying for the car regardless of your finance option. Walk out at least once since I guarantee your negotiated price will not be on the top of the managers computer screen.
Hey I just got doubled scammed, I bought a car for 9950,but I noticed the sales price is now 10,995 on paper Wrk, plus fees, so now I'm paying 11,900 the car was sold as is,but now the car is falling apart & on buyers guide there was no problems listed,here in Wisconsin, the dealership is Car planet
I have bought cars from dealerships, helped family and friends shop, and in my law practice successfully gone after a few car dealers. Finally, in my practice I have represented employees who were "ramp employees" (the person to whom you drop off your car for repairs or service), F & I folks (Finance & Insurance), and a few dealer owners. Some comments and memorable cases, and tips.
- Every disclosure in this video is accurate. And the guy has saved you thousands of dollars by posting it. IMO, you need to like and subscribe, or at least like it.
Research: Like he says, everyone knows that consumers are filling their heads with knowledge before shopping for a car. Nevertheless, do your research beforehand. Know everything about the car you want. Generally, research, for example, "Rav4 2017 complaint" and see what turns up. Note: Keep in mind every product ever made has complaints. What you are looking for is a long list of people complaining about the same defect. E.g., the notorious Porsche Boxter IMS bearing failure, which made many year models of the Boxster worthless. The issue even has its own Wikipedia page! (Unfortunately, my own brother called me one day and said he bought a used Boxster from the Porsche dealer. Yeah, it was one of the years with the noted IMS bearing failure issue. Even worse, it was the year for which a mod/fix would not work. So he was stuck. He ended up selling the car 18 months later due to health reasons, but he was so ashamed of the price he sold it for he wouldn't tell me how bad he got reamed, no doubt because the buyer told him it has the IMS bearing failure issue. Oy vey, my brother bought on emotion and failed to do any research, the perfect buyer at a Porsche dealership looking to unload a worthless Boxster, for which they probably took in trade for pennies on the dollar.)
- Pricing and Profits: Know prices being paid for the car you want. Don't expect to get a car for zero profit for the dealer. IMO a fair PROFIT for a dealer is $500 to $1,000. (A dealer would sell cars all day long if each salesman could sell three cars a day, each assuring $800 in net profit. But dealers can't resist the siren call of extracting as much money as a buyer is willing to give everyone involved in the sale.)
- BE RESPECTFUL AND NICE to the car salesperson and other employees. Most simply want to make a good living and don't need customers treating them like lowlife or dog sheet. Besides, the way to get the best deal is to NEVER let car "people" know what you know. You don't tell them you have done your homework. E.g., you don't tell the F & I person you have read up on how worthless car extended warranties are, or say "in fact, did you know that in this state you cannot call this an extended warranty because it is neither of those things, it is NOT an extension of the manufacturer's warranty, and it is NOT a warranty, at best it is a maintenance contract or useless insurance that provides no coverage for the things most likely to fail on the car." If you know this kind of information, keep it to yourself.
Look at it this way, buying a car is like playing poker. What kind of poker player are you? Do you get visibly excited when your first cards are a pair of aces? Or do you play it cool like everyone is watching ice melting.
- Don't Buy On Emotion: Don't let on to the salesman you really really want the car. If they see any indication of your loving a car, they will try every trick in the book. The more time they get you to stay on the lot, the more they know you will do the deal, on their terms. Bonus Tip: Don't stand looking at the car while talking money, etc. You have to always show by your behavior you can take or leave the deal, it is very easy for you to walk away.
Interesting statistic: Everyone in the car sales business knows that if you leave the lot without buying a car, there's statistically a 95% chance you will NOT return to do a deal. That's why they will do anything to keep you on the lot. One time I went with my dad to buy a used car. I told him to hold firm at the price I said he should pay and that we must leave if they don't agree. (We were paying cash and there was nothing to haggle). They would not agree to his price. So after three or so different ways to say they just couldn't do the deal, we left. As we were driving off the lot I told my dad not to look at the car, that was sitting in the front of the showroom. I said pretend we are looking toward other dealerships, I would point to one as if I was saying to drive there. As we reached the exit to the street I said go slow to give the guy time to run out to us. But the guy didn't run out. Just as we got to the driveway the salesman ran up to my dad and said "Are you paying cash at that price?" My dad said yes, and we ended up getting a Toyota Avalon advertised for $21,000 for $16,500 out the door.
Always be willing to walk away from a deal, and actually do it if necessary. (And only suckers drive home and call the salesman later to say something like "See, I meant it when I said I would leave."
- Documents: Like he says, always check what you are signing. The law in all states, whatever the contract says, that controls. If it is NOT in writing, signed by both parties, it is not part of the deal. For example, all the extras you asked for and they agreed to include at a stated price or for free might be written down on a "preliminary deal worksheet," a document that might even have a line for you to sign. That's NOT a contract. That's simply an acknowledgement that you guys talked about those things. If when signing all those papers that comprise the contract does not include all those things you asked for, then you are not getting that stuff. And you can bet the worksheet you signed will be lost if it ever becomes an issue. Moreover, the salesman will deny ever saying you would be getting upgraded wheels for free.
Salespersons and F & I people know you will NOT read every page that comprises the sales contract. So do state legislatures. That's why the law in all states require, e.g., financing terms be in plain English, numbers in big boxes, disclosure of total price paid AFTER finance charges and interest are added in, what the deal includes, etc. Trivia: one time I got a client out of a very bad car deal because the dealer failed to fill in all the boxes required that disclosed her finance charges, etc. The remedy here in California was that a buy can void the contract if all the boxes are not filled in.
The main document to pay attention to when you are overwhelmed with paperwork is the Sales Contract. That's the document that reveals the total price you are paying for the stated vehicle, and what you are getting in return for all the money you will be paying them. If you are trading in a car, they must reveal the total price they are giving to BUY your car.
Agree to disagree on many levels. It's all about value and if the products cover a repair that would cost thousands then why would you get screwed? I mean if I pay let's say $2-$3k for a complete service contract/warranty i.e. 10/100,000 at a good APR over how ever many months. I have repairs of over $5k plus in 5,6,7,8,9,10 years. Who will be happy to not have to pay now? Also think of costs are they ever going to go down? NO! So why not save now and in the future. Just being honest
Holy shit, my brother almost got yoyo'd then.
Recently he was looking to buy a 2015 Mustang, and he went to the Ford dealer just to figure out the numbers for the payments and stuff. When they had that stuff sorted out, my brother told the dealers that he'd have to come the next day as he had left his downpayment money at home, and it was already closing time for the dealer. At that moment the dealer started telling my brother that the money was no problem, and that he could drive out of the place with the Mustang if he wanted, but thankfully he turned down the offer.
It sounds like my brother potentially dodged a bullet here. Tbh, I thought the whole thing sounded wrong, but I had no idea that this yoyo scam actually existed.
1st question: can I still return the car that I bought 2 weeks ago and still get my down payment back?
2nd question: how many day's do I have to still return the car from the day i purchase?
3rd question: is returning a car will destroy or ruin my credit?
Please reply to this I need some advice
If you took it home then nope sorry. If they advertise with a 3 day maybe 1000 mile return policy then possibly but other than that you'll have to sell it back or trade it and that will cost you a lot.
A friend of mine has a 2010 Honda Accord. They bought it new and added a 10 year/75,000 mile warranty. Two days ago they had to have a new A/C compressor and some other A/C related items. The car has 71,000 miles on it. The bill came to over $1,700. They had to only pay $106. The warranty worked in their case, but the mileage was awful close to expiring..
Why would you need 13 minutes and 50 seconds to answer the question, ''How to beat the car dealer finance office?'' The simplest, most honest, most direct answer is, "Stay out of the dealer's finance office!" Those seven little words could be taped in ten seconds. That leaves 13 minutes and 40 seconds for something far more important in the buyer's life to do something really creative.
Viewers , when you guy a car short term many of these products are useless. Long term buyers, much of this guys advice is horrible, i wont tell you this without explaining why. Dont buy a extended warranty?? you cant be serious. Look at JD powers IQS from 2015-2018. Cars are now filled with electronics and their reliabillity has become worse then ever. Most extended warranties are now refundable if not used, for those of you who have concerns with ROI. So lets imagine a common situation, after 6 years with your car the AC lets go and you have to have it replaced. You are looking at 2500$ plus the payment your already making. This guy said you dont need it therefore if you dont buy it because of a ignorant video, send this guy the dealer invoice he will be happy to pay it for you. Gap is bad?? really....hmmm....why is that? you could buy new car insurance directly from your insurance company but for cheaper. But heres the problem. You can no longer shop around to save on premiums. GAP allows you to shop annual and have a 1000$ deductable without actually having to pay it... many studies have been done and proven that the diference the gap saves you by having the freedom to shop pays off the GAP even if it is 3k. (canadian prices, benefits may vary pending on location and insurance provider) not to mention if you crash you have a new car. So go ahead dont take it and pay more , or take no protection and find yourself 18k in negative equity.
Rust proofing. In my region a car wont last more then 4 years before rust shows up, solution , rustptoof. A reasonable price for RP 10 years would be 999$ anything above that and your getting shafted for sure.
Insurance, example D.I. life insurance. Life savers. In my region even federal gvt employees have a 19 week perioud before receiving a salary reduced by 44%. In the meentime there is E.I. which takes 2 weeks to process and 130 days additional to pay. Thats if the person processing your file makes no mistakes. So your debt ratios in most cases will crash. Insure your loans, all your loans. People who dont and have no problems got lucky. I could show you all thousands of articles of people who lost it all because they listen to goofs like this who claim all products are not important or a waste of money. Is there profit ? YES. Ever seen a product on a shelf at walmart with no profit? ever payed for a service thats free? NO.
Not all products are necessary for everyone but keep in mind there are important products for you in every dealership. My tip, negotiate the products, cut some of their profits. Dont buy nothing because it will end up costing you more money in the long run. A vehicle price or payment simply represents a hunk of steel loaded with tech and future problems.
boy... dealer will hate me if this is the case. they be like “u are worthless customer u r wasting my time as i am not making more money out of u!”
oh well i never bought any of what they offered after getting 3 bnew cars in the past 😎
Good tip to save money in the dealership finance office is to shop around for your loan before you even go to the dealership. Contact banks and credit unions before hand and get pre-approved for the best possible loan. So, by the time you sit down with the finance guy at the dealership, you already know the best loan you were able to get on your own. Then, if he can’t beat it, tell him you’ve secured your own financing.
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