Traded in car over holiday weekend with a finance balance remaining in the early 1970's for a new Pontiac Firebird. Signed deal and drove off the lot. Following Tuesday recieved call from finance manager stating that they miscalculated the payoff balance on the trade and I owed them the difference. Told them the problem was theirs. The following Friday morning woke up to find that the Firebird was missing from my driveway. What a coincidence! Filed a police report of a stolen car and advised police that they might begin their search at the dealers lot. End of story, Dealership found liable for theft, misrepresentation and incomplete documentation on sales contract with total responsibility for bad deal made even worse and fined with additional compensatory damage of $10,000 and return of new vehicle to me.
My issue at the dealership happened in the service department. I had taken the new car in for the first oil change. The service rep informed me that the car needed an alignment as well as a new cabin air filter at which point he showed me a very dirty filter and informed me the cost of the filter with installation would be an addition $60 and the alignment and additional $189. I explained that I would have to reschedule for those services and left. I went directly to my local tire shop and was informed no alignment was needed. When I got home I checked the cabin filter and discovered it also did not need to be replaced. I never returned to that dealership again.
I am a retired female and was given an estimate of $130 to replace my air filter and cabin filter. I watched a video on RUclips that showed me how to do it myself…I saved $100!
The best way to shop for a car is to call up the local dealerships, ask for the Sales manager, explain that you've seen Car X on their website, and you're ready to buy. Ask them to email you their best out-the-door price and let them know you're talking to 4 or 5 other dealers. I did that for my last car and I got the best price from the comfort of my home and I didn't waste an entire weekend.
While guiding my daughter through her first used car purchase, she lined up appointments to test drive specific cars that were on the dealer's website. Five dealerships and one car at each. Even though we arrive as scheduled, three of them had "customers in the office making a deal for that one but we have...". Walk away from bait and switch.
The answer in that case is "Oh, that's great for you guys. But Joe's Motors has one just like we want. Thanks for not wasting my time" and then walk out.
More excellent content from our man Geoff! Honda Store. I walk in, I would like to test drive that car. Great, we need a check for $1000 before a test drive. So long. Toyota Store. After test driving a small truck I ask for a price. Sales jerk immediately opens his desk drawer and puts a credit application in front of me. I said I asked for a price, not credit. Adios.
Right move. Pretty stupid dealer, though. It's been my experience that they'll usually play ball if you make it clear that you'll walk if they don't cooperate. They won't like it, but a difficult customer is better than no customer.
@@NorbRetEngineer I told a salesman to tell me only the price, not the payment, and he *still* kept telling me the payment. They cannot help themselves. Customers should be allow to taze salespeople who give them a payment amount instead of a price.
Had the same experience with a Honda dealer. We did a test driver and I asked for a price. He said "If I give you a price, you'll take it some place else and try to get a better price". And I admitted that was true, but I said, if you give me a great price, you don't have to worry, I'll be back. He refused and he never gave us a price. I don't know how they stay in business.
Early 1980s. My father went on a test drive at a Chrysler dealership (I know, bad idea already). He didn't like the car, and was going to leave, but the salsman had put the keys for my father's car in a safe, and the only person with the key had supposedly left for the day. Oh, sorry, he won't be back for a few days, but the car you test drove is available. . . My father was a locksmith. He had his picks on him, and popped the safe open before they realized what he was doing. The cherry on top was when he sent a bill to the dealer for locksmith services.
I went to a BMW dealership on Long Island wearing work jeans and a work t-shirt. None of the salesmen would speak to me. I went to the sales desk and was assigned a salesman who was obviously not happy to be burdened by my presence - to the point that he would not walk out on the lot with me to look at the car I wanted to purchase. I went to a different dealership wearing exactly the same clothes and one of the salesmen immediately approached me and asked how he could help me. I purchased the car from him, and drove it back to the other dealership just to show them the sale they had missed…
Ii did almost the exact thing at a porsche dealer. I was approached when I tried to open the door. He tried to bs me. I went elsewhere and bought a RX7 convertible, rare in Australia. Better, faster, more exclusive car.
I had the same kind of experience at a BMW dealer in Kansas City. I wasn’t dressed up or down, just jeans and a polo shirt. What I wear everyday. But the salesman just didn’t take me seriously. I could have written him a check for the full purchase on the spot, but he never found that out. At the time I was considering either a BMW or a Cadillac, both about the same price. I’m sure I got worked over at the Cadillac dealer also, but they were nice about it and they wanted my business. I really liked that Cadillac. And it had turn signals. Apparently BMWs don’t.
In 1978 I was a commissioned salesman in a high-end audio shop and one afternoon a guy that looked "homeless" was looking over some of the equipment we had on the showroom floor. None of the other salesmen would speak with the guy. Long-story-short, he was a neurosurgeon at a local hospital, where he'd been at work for so long, hence the smelly, wrinkled clothes and five o'clock shadow. I sold him an over $38k audio system (in 1978 dollars).
In 1982 I made a deal to trade in our VW Rabbit for a Toyota Corolla and the salesman worked out me taking the new car home, so my wife could drive it. When we showed up the next day to finalize the paperwork, the finance office added $1000 to the sales price and 2% to the loan, from what I had negotiated the day before, signed offer in hand. When he wouldn't budge on those items, I asked for them to return the VW and they let me know that returning it to us "would be a problem"...the "problem" was that it left on a wholesaler's truck the day before. My response was "that's strange, I have the title to the VW in my hand, so I guess your are telling me that the car's been stolen off your lot?" In the end they made good on the price and interest rate.
Never take a car “home” until the entire deal is finalized & payment fully arranged & signed off. Take the wife with to the dealer for test drives, if you want her opinion. It’s all games, don’t play
@@richardbambenek2601 Last year I bought a new Tesla Model Y Long Range car, taking one from inventory at my "local" dealer and the process was MUCH better than buying from a traditional dealer.
If I may also add, do not pay the dealer for " market adjustment" which can tack on several thousand dollars to the price. You may have to travel from home to a different dealership who doesn't charge for that. Well worth the time.
If you repair damage on your car without going through an insurance company, it won't show up on any reports. Always get a used car inspected by an independent mechanic before buying. It can save you a lot of regret later.
Happened to me. Liked the car. Clean Carfax. Took it to a "weekend mechanic." He said it looked to him as if it had been repaired/repainted and pointed out items to me. Sent me to a friend of his, a pro, who agreed it had definitely been in an accident. Returned the car to the dealer....he was not happy. In fact, to my surprise, did not offer any alternatives nor contact me again. didn't bother me; lots of cars available!
The way to avoid the issues in the finance office is to arrange financing yourself. After test driving the vehicle, leave and call back and ask for the bill of sale with the total net price to give to the bank. You then walk into the dealership with the exact amount and eliminate the opportunity for add ons.
Many years ago I bought a new car with the wife and small children present (bad idea in retrospect). We knew what we wanted and just wanted to pick it up and go home, but the dealer managed to drag things out for hours. Around 8pm the finance guy wouldn't wrap things up until I agreed to an extended warranty which I didn't want. He offered to lower the interest rate if I agreed. I refused again, so then he said I could cancel the warranty and get my money back within 30 days. I asked if I would still have the lower interest rate. He said yes. Aha! So with tired kids, and me suspecting he didn't think I would cancel the warranty, I agreed. Next morning I called and cancelled the warranty, got my money back, and kept the lower interest rate. Maybe tying the interest rate to a purchase wasn't illegal back then (?) but anyway I feel that I "won" because I finally got to home and I kept the lower interest rate. Makes me tired just relating the story. I hate buying cars, so I buy new Toyotas so I can take of them properly from day one and I keep them FOREVER. Depreciation doesn't matter if you keep it for 10-15 years.
Having a wife along can be great. She plays the bad cop, you play the hapless husband who has to listen to your wife. I've gotten hundreds off from a dealer using that approach.
I sold used cars in the 80's.. People sometimes just want that shiny object no matter what. I went to a dealer several months ago to look at a 'deal'. It was 27k, but after the fees and other BS charges the balance was about 29k AFTER MY TRADE IN. So I left and said no thanks. They emailed me and lowered it several times, but finally I said forget it, I don't like the games... They are ALL BS. You should not pay anything but The Price, sales tax, and the Tag and title fee (and no upcharge either). I call it "out the door" price and I tell them that is it for me no matter what line you put it on. The 'recommended' price includes all the profit they need to run their business, clean up the car, transport it from wherever. I have seen some pretty shady crap in all the years since I worked in Used Cars and I hope people just walk away from the BS. I have gone with friends when they wanted to buy a vehicle and they will totally ignore what I have told them. So I stopped offering. I absolutely HATE buying a vehicle. And I never tell them that I used to sell cars..
Why do they make you sit around waiting for hours once you decide you want to buy the car? One time I was even paying cash and they still made me sit around waiting. I forgot what excuse they gave me but you'd think they'd be happy to make the sale and get you out the door as soon possible. Why do they do the waiting game?
I would rather have a root canal than go through the car buying process. My Honda dealer told me Honda paid the dealership to clean up and process the car when they were delivered off the delivery truck and he would never double dip and charge the customer again. He was the owner of the dealership and the last of any honest dealer. I've been trying to buy again recently and couldn't stomach the bs so I just quit the process.
I do my homework on what price I am willing to pay. From that point I will only discuss what the OTD price will be. Now I don’t care how they arrive at it and if they aren’t willing to do business that way I will walk.
I absolutely hate when it time to buy a new car because of all the bs that goes along with it. I don't understand why it just can't be a straight forward transaction like buying anything else.
When I was young and dumb, buying my first car at the dealership. It was a used car and the salesman told me the car was on sale for 1700. Believing I got a fantastic deal I was ready to sign the paperwork and being so excited I didn’t notice right away that the price on the paperwork was 17,000. Luckily I did catch it before I signed. My brother was with me. He heard the man told me 1700 you can’t trust these guys these videos are very helpful. I hope the younger generation pays attention.
My last two vehicle purchases, from eleven and six years ago respectively, I did 100% online. Initially, yes, I went to dealerships but only to drive vehicles that I already narrowed down as far as what I wanted with brands and models. Once that was done, I did a lot of research and narrowed down even further, to color and trim, and finally, what's a fair price for both me AND the dealership, and also what others in my area paid for the exact same vehicle. I get that dealerships should make between 2 and 3% profit on what they paid for the vehicle, and that's fair and fine. This information, albeit is hard to come by, CAN be found online. At that point, I made it very clear that I'm READY to buy, that I WOULD be buying almost, if not immediately, and that I do NOT go back and forth. In other words, I don't haggle. I also worked with no fewer than two dealerships, and sometimes three, simultaneously, and also paid cash. It's worked beautifully for me, but usually the dealerships I INITIALLY dealt with, were tone deaf to my statement about NOT going "back and forth" as I requested, several times - AHEAD of time, their BEST out the door price. When they gave me a price and it became obvious that they didn't take my statement seriously, I simply thanked them and went on to the next one and informed them that I already dropped a deal with another one due to the price being too high and them not listening to me or taking me seriously. The BOTTOM line is they want to sell cars, and I want to buy one, and I'm all for everyone being happy, but I'm not going to be taken advantage of either. I am ALL for them making a fair market value profit - and let's face it; we all know dealerships and car salespeople make VERY good money. I personally know several and I was blown away at how much a couple have confided in me about their salaries. I'm NOT saying they don't work hard and long hours for it, but damn. Fun fact: contrary to popular belief, including ME, the REAL money is in USED car sales. Anyhow, make your money guys and gals. It works for me. Of course, I already inform them that I (truthfully) don't NEED to by anything, but I'd like to, so if not deal materializes, it's okay. If the deal isn't there, cool, it's not there.
I am very grateful to be in NZ. In our country there is a Consumer Law to null any sale with those practices. Also there is a National Motor Vehicle Dealers Institute that all dealers must belong to and which certifies and guarantees all vehicle sales. If a car fails in under 90 days or a dodgy car is sold, then the MVDI must "Put it Right" which can be anything from repairs to replacement or even a full refund.
@@georgejetson4378 Oh, don't get me wrong we are not all angels. But the US is too large for community oversight. Here we have a community of 5.5million across 1,200miles of country. Our neighbours know what you are up to so regulation is needed. We also have a comprehensive Social State support structure so too many rip-offs and the govt bears the cost. Better to nip the idiots in the bud (butt) before too much mayhem ensues.
I always buy certified pre-owned cars. One time, I had two dealerships essentially bid against one another. Long story short, there was basically the same car being offered in two dealerships and I bargained between the two, one over the phone while standing in person at the other, and it helped getting the price down. Another time I was test driving a car and wasn’t keen on it. As I was pulling up, the salesman said someone who had already looked at it had come back to buy it so if I wanted it, I’d have to say so then and there. I said that was great and that I hoped they’d like it. I then carefully walked the lot and tucked away was a better model with all the bells and whistles that the salesman hadn’t brought to my attention. I testdrove it, etc., and then told the salesman I’d buy that one if I could get it for the same price as the other one I had just test drove. It took some wrangling but I bought it and love it. I would recommend buying certified pre-owned cars from a dealership that does service itself.
Do the research so you'll have a ballpark number for the vehicle you're interested in. Fix a price in your head that would make the deal satisfying. Offer that and be prepared to walk away if they start to grind you. There are plenty of vehicles available so it's now a buyer's market.
I was in my 20s when I went to a dealer to buy a car I liked, but I wanted the manual (stick shift) version. The salesman insisted that the car only came in automatic, probably because he didn't have any on the lot. I pointed out that it showed the option in the brochure, but he told me that I was misunderstanding what it said. I walked out and bought it at another dealer.
I always tell them I want to negotiate the "drive out" price including tax title license and fees. They always object. I always walk out. They always stop me before I get to the door. As far as illegal or unethical acts, I've had two. One time I bought a brand new car, which was transferred from another dealer. That's not unusual. However, 2 years later I had electrical problems. The shop said it had been in a significant accident. The dealer was out of business, so I had no recourse. The other experience was the dealer that wanted to evaluate my trade in. No big deal, but he refused to return my keys unless I purchased the car. I started to call the police and he threw the keys at me and cursed me out.
On 2.26.2024 I bought my dream truck. For over two years I had been looking for a Toyota Tundra Crewmax Platinum. I wanted to find one with low milage and in good shape. I did not want to buy one in older than 2015. Finding a Toyota truck with low mileage in that year is almost impossible. I live about two miles from my local Toyota dealer. I told my wife, I am going to the dealer, tell them what I want and let them find it. I did just do and less than 15 minutes the salesman told me they have buy truck on the other side of town at one of their other dealerships. I told him I would be back tomorrow to see the truck as they had it brought to my local dealer. That truck was so clean you would think it was brand new. It is a 2018 years with 53,000 miles one owner and was bought here in South Carolina and not from some rust bucket state up north. The Carfax was damn near perfect with all maintenance kept on schedule. The price was a little more than I wanted to pay but finding another truck like this was impossible. The dealer had put a new set of quality tires and serviced the front brakes. I had cash. One thing I will not do is finance a vehicle. If I can't pay in cash, I will so with out. In the end I did have to pay their stupid fee of $1,100 for whatever. At this time I knew this was a deal I would not find anywhere else on my dream truck. The original owner also had added some nice Toyota accessories to the truck as TRD exhaust and running boards. The truck is in my driveway at this moment 12.28.2024 and is a pleasure to drive. So, sometimes you just have to suck it up and pay the damn fees.
They don't make any money off a new car sold for cash or outside financing, that is the simple answer. So they sell the financing ( for a fee or commission), they sell the service agreement for a fee or commission. They pad the fees and prep which is just cash in their pockets on day one. When a new car needs $500 to go from as shipped to as sold, that is in the price makeup however if the salesman puts a $2,000 fee on the customer and then negotiates a $200 title fee ( cost $25 ) even if he cuts those fees or uses them as negotiations it is still you paying for things you should not pay for.
Another time, I agreed to a price on a Toyota Prius. Agreed to come back on Friday to close the deal. The original salesman not there, and was told the original deal was not agreed to. I walked away, called a dealer in a neighboring town, got the price I wanted, and leather seats and tinting to boot. Walk away.
From an old mechanic, not a financial advisor...... The world's auto makers are in a state of transition from unreasonable government regulations. And generally poor quality control in most brands. I can NOT recommend buying any new vehicle. Possibly excluding Toyota Tacoma with the 4 cylinder engine. Buy at least FIVE year old vehicles. That gives time for the recalls and lawsuits to be known.
Good to know; always feel as a single woman have "SUCKer!" emblazoned on my forehead. Will be looking for a new (to me) car about a year from now....absolutely NOTHING I have more.
I bought and paid for my new Tesla on my phone while driving home. Picked up the car about six days later after being at the showroom for about 20 minutes. Best experience we've had when buying a car.
We've got a "no haggle" dealership in town that's fairly good. They'll still try to sell you some add-ons of course but the deal on the car itself is fair and all you have to do is say no to the add-ons. We've bought our last 4 cars from there over the past 25 years (it would have been 3 but one was totalled, I still miss that car, it was my first halfway nice car). But I have walked out of other dealerships - and I don't let them talk me out of leaving or ever go back. If they're slimy in how they sell cars you can bet they're equally slimy on how they service cars.
I used to "seed the lot"... I threw change around the car lot so customers would think it was "their lucky day" when they found a quarter after finishing a test ride. You'd be amazed how well that worked.
@@1wheeldrive751 I can't explain it, but it does have an affect. Like asking questions that elicit a positive response.... "Nice day, isn't it?" That kinda thing. Psychological tricks, that's all.
I actually had a dealer offer me a lower interest rate if I bought the warranty. I told him I didn't want the warranty, but I did want the lower interest rate. He agreed to it.
Easy to cut out the BS.... 1)Buy for Cash... 2)Get a "Out The Door Price" from 8 dealers. Buy the lowest. Nothing else matters. (I enjoy "Walking Away")
Cash doesn’t make a difference anymore. Dealers get kickbacks from financing. Better to make the best deal, finance and then pay it off. My last car I bought at 1.9%. My MMF is paying over 4%. I’m not paying cash when I can get money for 1/2 the interest my savings are paying.
@@SpookyEng1 This is very true... But those Interest rates DO NOT exist today. ANother way to play this though is to Finance at the lowest rate you can (and best Price among all dealers) and then Pay off the balance after 1-2 months payments. This works if the buyer makes sure there is NO EARLY payoff fee/penalty. Quite often, just to move the vehicle off the inventory... the Dealership will know what you are planning and still do the deal.
If you tell a dealer up front you are paying cash and want no options etc they will not give you their best price, as they have no way to make money on financing or options. Negotiate your best deal… BEFORE discussing financing and add ons. If necessary to get the best out the door price …. Take their financing and then pay it off within a day or in the first week. I believe most if not all states ban pre-payment (paying off early or immediately) penalties.
Once , at a dealership , my wife and I were sitting on a couch watching tv , waiting for paperwork to be drawn up for signing. Soon after my wife got up to go to the restroom , our salesperson discreetly walked up to me and presented a document stating that the vehicle had previously been involved in a collision. But that the vehicle was repaired as good as new and wouldn’t be a problem. She asked me to sign it and I reluctantly did. Then she hurriedly walked away before my wife came back. My instincts said for me to walk away but I didn’t listen. I didn’t tell my wife and ended up regretting that purchase. The vehicle started presenting problems a few months later.
I bought and financed my first ever vehicle in 2003, it was a 2 year old Honda Odyssey with 30,000 miles on the clock from the town Honda stealership. Terms and price were all great. 6 months in the transmission is failing, so I return to the dealership for the warranty repair, only to be told there is no warranty as the van came in from Canada. No one told me that I was buying a grey import! Dealer wouldn't help, Honda USA refused to even reply to all my letters, so I threatened to park the van in the entryway of the dealership and let everyone know how dirty they are. They wouldn't fix the van, but the deal I walked away with was a full trade for the van, paid off the whole financing, and I took another car off their lot, which I traded 3 months later for $3,000 more than I bought it for. Ended up winning, but no thanks to the Honda stealership or Honda USA.
Hey Geoff , my son is currently working through an issue on a used car he bought from a dealer. After he purchased the car he had to have some repairs done which were costly and not in this young family’s budget. He then decided to see what it was worth to sell so he got a carfax wicked clearly showed the mileage when the dealer got it which was about 120,000 miles more than it had when my son purchased it. Waiting to the dealers response from the attorneys letter now !
I was selling a car to a new car dealer and not buying one from them. They didn't want me to sign the title. I advised them it was state law for me to sign it and write in the miles. They told me to leave, no deal.
Thanks for this video, which I'll be sharing with my family. I hate car dealerships and the car buying process. My first new car was a 1981 VW Jetta. I told the dealer I wanted air conditioning and cruise control. I got those things but as I found out later, they were not OEM accessories. No way to get them fixed under warranty.
Never pay for “protection packages”, or “nitrogen” or “window tinting”, all of these costs a lot less outside the dealer. I’ve told them they can remove the window tinting if it’s on the vehicle. I never finance through the dealer. I have before and paid it off on the first payment. The dealer wasn’t happy about it, must of affected their kickback.
Back in 1981 I bought a $4000 car where I had $2000 in cash and another $2000 in a CD that would mature in a month. So I had a very strange loan where I had one payment due in a month - of $2000. So you could say I paid that one off on the first payment as well ;) Up until '96 that was our only car loan. In that year our car died unexpectedly just after we'd closed on our first house and cash was a bit tight.
I had a dealer wanted to “fee” for cash, almost 800.00$. If we took the loan we could pay it off in a month, we took the loan and paid it off the next business day.
Never tell them you can or want to pay cash. If they don’t think they can make money on the financing or other stuff then they won’t give you as good of a deal
I bought a pickup and then found out three years later when I went to trade it in that it had a branded title. Original dealership told me it wasn't their problem. I lodged a complaint with the state dealer board and the dealership was told to buy the pickup back from me. They drug their feet until the board showed up to pull their license.
It is illegal not to disclose a “salvage title”. It definitely happens. That is a question to ask when buying a used vehicle. The vehicle reports generally show it but buyer beware. Car dealers will do nearly anything.
The area we lived in had a massive hail storm. The numbers of cars being totaled by insurance was shocking- millions of dollars of damage. The insurance agencies would not reinsure the totaled vehicles. Customers really had to be watchful of the vehicle description from insurance agencies. Many vehicles had been assessed as not having four wheel drive, larger engine size, towing packages and etc.-causing the claim to be smaller. When people would go to the car dealerships to find a new car, some dealers would charge them an extra $2000 fee for NOT having a trade-in. Oklahoma’s spin on price gouging.
One time i negotiated a 7.5% interest rate, took the contract home and they had actually put a 12% rate in the contract. I called them to let them know i found it, they tried to lie their way out of it and wanted me to come back in. I told them no and they hung up on me. Most rewarding hang up i have ever had.
I bought a used car and checked Carfax so everything looked good. I had no idea that Carfax only tracks repairs going through insurance companies. Needless to say it had been damaged in ways that i didn't see. The secondary headlight bulbs (brights) were missing. The driver's door car leaked in the carwash and the trunk will pop open unexpectedly. I've been making a list to better inspect when I buy my next car. And to take a negotiator with me. All they see is just a little old lady as an easy mark. I want backup!!
I had a dealer tell me I had to pay a subscription fee to use the remote start function. I heard of fees like that and I've heard they were trying to charge subscription fees for a number of functions that were already on the car, but wanted to charge you to actually use them. 18:23
I am 73 years old and have bought several new cars and only one time did I walk out of a dealership without buying a car. All other times I began to walk out, they called me back to meet my terms. You have to set your price and stick to it. Otherwise just flush your money down the toilet.
Last new car I bought was in the dealers show room for a brand new 2017 Toyota Corolla IM for $16,500. I brought in a check and dealer didn’t stick with add-ons so I’m happy. Still have the car and it’s working great. 😊
Lesson One: Best time to purchase a car used or new when you do not need the car immediately. That way you CONTROL all communications and negotiations. Since you do not need the car, you can take all the time in the world to get the car on YOUR terms.
In 1987, I was 21 years old and was looking to buy my first car. I was interested in a slightly used Ford and went to the dealership to check it out. The salesman looked at me, talked about how it was a new shade of blue, and pulled down the visors to show off TWO makeup mirrors. Then he told me to come back with my father or boyfriend and he could let me test drive it. I took my money elsewhere.
My newest car is a 2007; my oldest is a 1972. I'd rather go to the dentist then set foot on a car lot. True story: a Honda Dealer had a wrecked (totaled) on display outside. A prospective customer was driving with the salesman in the front passenger seat. A friend of the customer who was sitting in the back seat, leaned forward and said "let me show how great this car handles" and jerked the steering wheel causing the wreck. I heard that the salesman quit
When I first talk to a car salesperson, I tell them that I have several rules that they need to know: I negotiate ONLY on sales price, not monthly payment. When a price is agreed upon, if there is ANY mention of ANY extra fee, I walk out without saying goodbye. I will take care of tax, tile, insurance, and license.
70 yr old female, just bought a Tesla..so easy, no haggling, $7500 rebate, GREAT car! No oil changes, no dealership service dept ripping me off…Don’t knock it till you drive one….EV’s are amazing
Went to look at a car and the salesman sat us down and we talked. We told him that we already have an offer from Carvana and we need them to offer the same price. The salesman said that he would have to talk to the manager. The managers office had a glass front so we could see what they were doing. All we saw was what looked them joking around for a little while. Then the salesman came back and said that the manager could not give us anything more that what he offered. So we got up and walked out. Two days latter the same salesman called us and asked us if we still wanted the offer they proposed. We told him that we had already sold the car to Carvana and the other end of the phone was in silence for about a minute. I think that he was shocked that what we said was true and no B.S. We have since brought a second car from Carvana and are much happier with the deal than with the dealership. My suggestion is DO NOT BUY FROM A DEALERSHIP. They are a bunch of ripoffs!
I just bought a 2021 truck in Tennessee on Dec 26, 2024. During negotiation, I noticed an $895 Doc fee, and said I'd be willing to pay $500. The price of the truck was good enough already that even a $500 Doc fee left the truck price well under market value, so I didn't mind that line item. The salesperson fed me the line that they'd have to just lower the base price by $500 because TN law sets the Doc fee, and they can't lower it. I subsequently found out on internet searches that there is no such law in TN. I plan to email the salesperson and let her know that the nice experience I had just got tarnished because I found out she flat-out lied to me (imagine that). I'll be curious to see how she replies.
Many states have a cap on dealer doc fees. My state, Oregon has these legal iimits: (a)$150, if the vehicle dealer uses an integrator; or (b)$115, if the vehicle dealer does not use an integrator. Some states like FL think they are in the wild, wild west and let the sky be the limit on doc fees. Also, when it comes to interest rates, there are two rates - the "buy" rate and the "sell" rate. The buy rate is what the bank tells the F&I guy how much interest they need on the loan. The F&I guy is allowed to mark up the rate up to two or three percent or more and get a commission based on the difference. This is called the "sell" rate. Always ask the F&I guy to see the bank approval to see what the "buy" rate is and NEVER pay over the "buy" rate. If they won't show you the "buy" rate or give you the "buy" rate, walk out.
I think doing research online changes things. I communicated with about half a dozen toyota dealerships in my area, got the best price ( from the closest dealer, awesome ) got the out the door price I wanted, got a reasonable price for my trade in, and picked up the car freshly washed and full of gas. Corollas were in short supply so I had to wait 3 months but that wasn't an issue, my new Corolla has been great so far.
Retired several months ago and considering getting a smaller new vehicle. My 2004 Honda Pilot served me well. I figure the next car I get will be my last. Great info. It's been twenty years since I last bought a car.
The law requires every new car to have a Monroney sticker. I looked at a car that did not have one, and asked to see it. The dealer wanted me to commit to buying the car before seeing it. I told them where to stick it and left.
I once had a dealership call me a week after the sale to tell me they had miscalculated the value of my trade. My trade in was a fairly new Benz and the way the deal was made they actually owed me about $3500 on top of the price of my new Suburban. They said their trade in evaluator and made a mistake and thought my Mercedes was a turbo. They wanted to "make it right" by keeping the $3500 they owed me. Long story short my attorney neighbor had the check for me that afternoon and only charged me the price of his lunch where we met for him to give me the check. :)
I had a similar experience. Signed all of the paperwork and took the car home on a Friday. Monday morning, I got a call from the dealership saying that I need to put down a $1,000 and redo the paperwork. I told them absolutely not and I'll be there within the hour to return the car. They said no, you can't do that. If you do that, that will be like a voluntary repossession. I was like, no, it won't be because we never had a deal, according to you guys. They were like, it's only a thousand dollars, you can't come up that or borrow it from somebody? Here are the keys sir, have a nice day. Shady as hell!
Bought a new car a couple months ago. I know my stuff. Went to a dealer two blocks away. They undervalued my trade by $3500, wanted sticker, and couldn’t be bothered to include all the rebates. I literally got up and left without comment. Got online and negotiated a purchase with a dealer 330 miles away. Saved around $16,000. I don’t understand dealers that love to screw everybody.
Why would anyone buy car without simply dealing on "out the door" price? And interest rate if you are going to finance? If you do that, none of the other things matter. And yes, driving a new car away without the deal fully cemented is crazy. No reason for "games" when buying a car.
I made a terrible mistag buying my first new car. I told the salesman I could pay x per month and they actually raised the price of the car 3500 over msrp to accommodate me. Whet was worse they told me I had to take the deal because I said I wanted the car. When I walked out my troubles just started. I went to another dealer and tried to buy the same car and found out GMAC re flagged me the wouldn’t sell me the car unless I got another bank to finance it.
Don't finance a car. Cars depreciate quickly, often faster than you can pay off the loan, meaning you might owe more than the car is worth for part of the loan term (negative equity). Pay cash. If you don't have enough cash, you need a cheaper car.
Buying Cars is like buying a home (big ticket item with a lot of details) so of course there is going to be a negotiated price. If you don’t want to negotiate or haggle just pay the sticker price. If they want to add on other costs or a higher interest rate than you can get somewhere else then walk away and try the next place. Not overly difficult for a high cost item
Bought a new car for my wife a couple years back and got a good end of the year deal (best time to buy IMO). This was after all the stupid fees were taken off and didn't even discuss trade in until I got the price. I had the cash to buy outright, but, I knew the next step was the finance manager who would press me on every add on and other BS. I let him give me a higher interest rate than I know I could get with excellent credit and the rest was easy cause he had earhed his money already. I paid 1 month of the loan then paid it off in full (made sure no penalties for that). So after working thru the sales guy - exhausting - 1 month's interest was what i was willing to pay to avoid the next round of exhausting negotiations.
I buy reliable, non-flashy, comfort cars and keep them 10-20 years. I've saved enough for an all cash deal but now I find that cash is NOT king in the car buying world. :( My current "master" plan is to go to my credit union, get pre-approved, negotiate the best deal I can on the loan, confirm no pre-payment penalties, then pay off the loan in 1-2 months. Good plan or not? If not, please say why. BTW, I love Holy Schmidt's videos. Great info. I love his calm, smart demeanor.
I didn’t have any undisclosed fees but I did have trouble having a dealer take my order for a factory build car. Initially I didn’t have enough options for the dealer to place my order 🙄
Worked on the service side of several dealerships for nearly 20 years. Boy! Could I tell you some stories. They all had one thing in common; they are a den of thieves.
Always get prefinanced at a credit union, they sell generally some of the BEST warranties at 1/2 the price of the dealership. I helped my customers purchase cars and walked in and out and back home within 1 hour. Know what you want and never deviate or tell the salesman that you’re leaving and mean it! Put them on the clock. Lastly rent cars for a day and see if the car fits your needs , not a 10 minute test drive . Good luck
I have put off buying a new car for over seven years because of bad stealership experiences. For example, My first bad experience that I had was when I test drove a new 1985 Toyota Corolla that was selling for sticker price (a rarity at the time). So, I was in the process of finalizing the deal with the salesperson when he said, "I need to get this signed off by my manager." He went down a spiral staircase and I could hear him with my good hearing, discussing my deal with the manager who said, "Tell him that the car is not available and we will have to order the car for him at 2000 dollar higher price (this was nearly 30% markup in 1985!). I was so disgusted with this bait and switch tactic that I untruthfully said when the salesperson returned, "I'm having second thoughts about spending so much money." I left and then wrote a letter to the company that had advertised christian ethical values in the yellow pages, and I never returned. I'm actually considering a Tesla, despite what I feel about Musk, to avoid a stealership.
We think we dodged a bullet at a Toyota dealership in Orlando some years back: we saw a specific Camry advertised, and we caught a new salesman who - when asked to see that specific car by the inventory # in the ad - actually brought out THAT car. When his manager came out, he was really ticked at the sales guy. I have no doubt he was supposed to say "sorry THAT car is no longer available but here's this other car (at a higher price)." We actually did buy the car we wanted, but I've always felt that we dodged a very common bullet on that one.
Been there. Driving away after saying no to the price they quoted. Salesman flags me down, pulls out a piece of paper with a better price. So, go back to the office, he goes away for quite a time, comes back with a different higher figure . BTW, the paper disappears.
The state of Illinois makes a significant profit from issuing salvage titles. A vehicle doesn't have to be in Illinois to have a salvage title issued. I had a brand new Jetta titled in Montana, and it caught on fire three months after I bought it. The insurance company totaled it, and three months later. The car was sold in Washington, and the title was from Illinois. If your fax cars start in Illinois. I would not purchase it.
I'm taking a hybrid approach with VGT, SCHD, and VOO as my foundation over a 20-year horizon. I still enjoy life, travel, and buy what I love. It's the best combo, plus I enjoy the small victories of dividends, dividend growth, and share price appreciation.
Had a Kia dealer that after we had a deal with trade. But when he came back the price was 199.00 more. I said that is not the price agreed to. He said they add admin fee to every sale. I said I was not paying and if he wanted the sale he had to get it the the agreed price. He finally gived me 199.00 more trade so the price is what we agreed to. They are not your friend and you have to be ready to walk away.
When i was way less learned about buying a car- My first new car purchase, a 1990 tercel for $7.1k, left me salty as the salesman said my credit my 'bad' and my financing would be costly. I told him no way. I was gainfully employed and simply got a car loan from my local bank, with ease. This was pre-internet, all paperwork and telephone calls, and the delay in approval time made the whole experience like an ordeal. I still harbor some ire to this day, for the salesman hassling me.
I found incorrect calculations and told the dealer at a buy here pay here lot. The man was amazed ... i had to do the math in front of the salesmen. I got the car at my correct calculations. Sad to say... I'm sure they continued to sell cars with incorrect calculations benefiting them.
Always check the math with a calculator as many times it is incorrect and not in your favor. I had a friend who sold cars for a living and he said you will never get your best deal unless you get up and walk away at least once. Yes there are some cars that are in high demand and the dealer knows he's going be able to sell them to someone else but most salesman know that a sale today is better than a possible sale tomorrow. I've been told before by a salesman that he knows he can sell that car for that price and I respond maybe but you won't sell it today. Also when negotiating a price always make the dealer start with a price. If they ask you how much you want to spend say I want to spend nothing. I learned this from the movie "Tin Men".
Traded in car over holiday weekend with a finance balance remaining in the early 1970's for a new Pontiac Firebird. Signed deal and drove off the lot. Following Tuesday recieved call from finance manager stating that they miscalculated the payoff balance on the trade and I owed them the difference. Told them the problem was theirs. The following Friday morning woke up to find that the Firebird was missing from my driveway.
What a coincidence! Filed a police report of a stolen car and advised police that they might begin their search at the dealers lot.
End of story, Dealership found liable for theft, misrepresentation and incomplete documentation on sales contract with total responsibility for bad deal made even worse and fined with additional compensatory damage of $10,000 and return of new vehicle to me.
Good for you LOL!😝
It's highly surprising that the state took your side rather than of the dealership.
@@vadr1651 "It's a civil matter."
@@vadr1651 Dealerships screw up all of the time. They are under investigation constantly. Listen to Lehto's Law.
My issue at the dealership happened in the service department. I had taken the new car in for the first oil change. The service rep informed me that the car needed an alignment as well as a new cabin air filter at which point he showed me a very dirty filter and informed me the cost of the filter with installation would be an addition $60 and the alignment and additional $189. I explained that I would have to reschedule for those services and left. I went directly to my local tire shop and was informed no alignment was needed. When I got home I checked the cabin filter and discovered it also did not need to be replaced. I never returned to that dealership again.
I am a retired female and was given an estimate of $130 to replace my air filter and cabin filter. I watched a video on RUclips that showed me how to do it myself…I saved $100!
I keep my cars 20 plus years to avoid the stress.
Well done 👏 ✔️ 👍 👌 😀
I do, too. I'm more interested in home ownership than having a new car.
Dittos! Buying my wife her first new car in 20 years tomorrow
Most of the new cars today will not make it 10 years, forget about 20 year ownership unless you have thousands of dollars for repairs.
The best way to shop for a car is to call up the local dealerships, ask for the Sales manager, explain that you've seen Car X on their website, and you're ready to buy. Ask them to email you their best out-the-door price and let them know you're talking to 4 or 5 other dealers. I did that for my last car and I got the best price from the comfort of my home and I didn't waste an entire weekend.
While guiding my daughter through her first used car purchase, she lined up appointments to test drive specific cars that were on the dealer's website. Five dealerships and one car at each. Even though we arrive as scheduled, three of them had "customers in the office making a deal for that one but we have...". Walk away from bait and switch.
The answer in that case is "Oh, that's great for you guys. But Joe's Motors has one just like we want. Thanks for not wasting my time" and then walk out.
"That one is in the detail shop. This one is ready to go."
More excellent content from our man Geoff! Honda Store. I walk in, I would like to test drive that car. Great, we need a check for $1000 before a test drive. So long. Toyota Store. After test driving a small truck I ask for a price. Sales jerk immediately opens his desk drawer and puts a credit application in front of me. I said I asked for a price, not credit. Adios.
Once a dealer would not tell me the total cost of a vehicle. All they would tell me is what my payment would be. I walked.
Right move. Pretty stupid dealer, though. It's been my experience that they'll usually play ball if you make it clear that you'll walk if they don't cooperate. They won't like it, but a difficult customer is better than no customer.
@@NorbRetEngineer I told a salesman to tell me only the price, not the payment, and he *still* kept telling me the payment. They cannot help themselves. Customers should be allow to taze salespeople who give them a payment amount instead of a price.
you did the right thing, for sure
I would do the same!
Had the same experience with a Honda dealer. We did a test driver and I asked for a price. He said "If I give you a price, you'll take it some place else and try to get a better price". And I admitted that was true, but I said, if you give me a great price, you don't have to worry, I'll be back. He refused and he never gave us a price. I don't know how they stay in business.
Early 1980s. My father went on a test drive at a Chrysler dealership (I know, bad idea already). He didn't like the car, and was going to leave, but the salsman had put the keys for my father's car in a safe, and the only person with the key had supposedly left for the day. Oh, sorry, he won't be back for a few days, but the car you test drove is available. . .
My father was a locksmith. He had his picks on him, and popped the safe open before they realized what he was doing. The cherry on top was when he sent a bill to the dealer for locksmith services.
The main thing that should be prepared for is to be able to walk away.
Don’t fall in love with something that can’t love you back.
For that, get a dog.
@@southbound1969 My exact thought...
I went to a BMW dealership on Long Island wearing work jeans and a work t-shirt. None of the salesmen would speak to me. I went to the sales desk and was assigned a salesman who was obviously not happy to be burdened by my presence - to the point that he would not walk out on the lot with me to look at the car I wanted to purchase. I went to a different dealership wearing exactly the same clothes and one of the salesmen immediately approached me and asked how he could help me. I purchased the car from him, and drove it back to the other dealership just to show them the sale they had missed…
Aw, you had a Pretty Woman moment 😂
Ii did almost the exact thing at a porsche dealer. I was approached when I tried to open the door. He tried to bs me. I went elsewhere and bought a RX7 convertible, rare in Australia. Better, faster, more exclusive car.
lol high school drop outs looking down on you because you didn’t finance a fancy suit like they did 😂
I had the same kind of experience at a BMW dealer in Kansas City. I wasn’t dressed up or down, just jeans and a polo shirt. What I wear everyday. But the salesman just didn’t take me seriously. I could have written him a check for the full purchase on the spot, but he never found that out. At the time I was considering either a BMW or a Cadillac, both about the same price. I’m sure I got worked over at the Cadillac dealer also, but they were nice about it and they wanted my business. I really liked that Cadillac. And it had turn signals. Apparently BMWs don’t.
In 1978 I was a commissioned salesman in a high-end audio shop and one afternoon a guy that looked "homeless" was looking over some of the equipment we had on the showroom floor. None of the other salesmen would speak with the guy. Long-story-short, he was a neurosurgeon at a local hospital, where he'd been at work for so long, hence the smelly, wrinkled clothes and five o'clock shadow. I sold him an over $38k audio system (in 1978 dollars).
In 1982 I made a deal to trade in our VW Rabbit for a Toyota Corolla and the salesman worked out me taking the new car home, so my wife could drive it. When we showed up the next day to finalize the paperwork, the finance office added $1000 to the sales price and 2% to the loan, from what I had negotiated the day before, signed offer in hand. When he wouldn't budge on those items, I asked for them to return the VW and they let me know that returning it to us "would be a problem"...the "problem" was that it left on a wholesaler's truck the day before. My response was "that's strange, I have the title to the VW in my hand, so I guess your are telling me that the car's been stolen off your lot?" In the end they made good on the price and interest rate.
All transactions with cars is crooked as hell. You WILL be screwed somehow
Never take a car “home” until the entire deal is finalized & payment fully arranged & signed off. Take the wife with to the dealer for test drives, if you want her opinion. It’s all games, don’t play
@@richardbambenek2601 Last year I bought a new Tesla Model Y Long Range car, taking one from inventory at my "local" dealer and the process was MUCH better than buying from a traditional dealer.
If I may also add, do not pay the dealer for " market adjustment" which can tack on several thousand dollars to the price. You may have to travel from home to a different dealership who doesn't charge for that. Well worth the time.
If you repair damage on your car without going through an insurance company, it won't show up on any reports. Always get a used car inspected by an independent mechanic before buying. It can save you a lot of regret later.
Happened to me. Liked the car. Clean Carfax. Took it to a "weekend mechanic." He said it looked to him as if it had been repaired/repainted and pointed out items to me. Sent me to a friend of his, a pro, who agreed it had definitely been in an accident. Returned the car to the dealer....he was not happy. In fact, to my surprise, did not offer any alternatives nor contact me again. didn't bother me; lots of cars available!
The way to avoid the issues in the finance office is to arrange financing yourself. After test driving the vehicle, leave and call back and ask for the bill of sale with the total net price to give to the bank. You then walk into the dealership with the exact amount and eliminate the opportunity for add ons.
Many years ago I bought a new car with the wife and small children present (bad idea in retrospect). We knew what we wanted and just wanted to pick it up and go home, but the dealer managed to drag things out for hours. Around 8pm the finance guy wouldn't wrap things up until I agreed to an extended warranty which I didn't want. He offered to lower the interest rate if I agreed. I refused again, so then he said I could cancel the warranty and get my money back within 30 days. I asked if I would still have the lower interest rate. He said yes. Aha! So with tired kids, and me suspecting he didn't think I would cancel the warranty, I agreed. Next morning I called and cancelled the warranty, got my money back, and kept the lower interest rate. Maybe tying the interest rate to a purchase wasn't illegal back then (?) but anyway I feel that I "won" because I finally got to home and I kept the lower interest rate. Makes me tired just relating the story. I hate buying cars, so I buy new Toyotas so I can take of them properly from day one and I keep them FOREVER. Depreciation doesn't matter if you keep it for 10-15 years.
Having a wife along can be great. She plays the bad cop, you play the hapless husband who has to listen to your wife. I've gotten hundreds off from a dealer using that approach.
I sold used cars in the 80's.. People sometimes just want that shiny object no matter what. I went to a dealer several months ago to look at a 'deal'. It was 27k, but after the fees and other BS charges the balance was about 29k AFTER MY TRADE IN. So I left and said no thanks. They emailed me and lowered it several times, but finally I said forget it, I don't like the games... They are ALL BS. You should not pay anything but The Price, sales tax, and the Tag and title fee (and no upcharge either). I call it "out the door" price and I tell them that is it for me no matter what line you put it on. The 'recommended' price includes all the profit they need to run their business, clean up the car, transport it from wherever. I have seen some pretty shady crap in all the years since I worked in Used Cars and I hope people just walk away from the BS. I have gone with friends when they wanted to buy a vehicle and they will totally ignore what I have told them. So I stopped offering. I absolutely HATE buying a vehicle. And I never tell them that I used to sell cars..
Why do they make you sit around waiting for hours once you decide you want to buy the car? One time I was even paying cash and they still made me sit around waiting. I forgot what excuse they gave me but you'd think they'd be happy to make the sale and get you out the door as soon possible. Why do they do the waiting game?
@@smiles36njcp The reason is you were paying cash. They make most of their money on the financing interest.
I would rather have a root canal than go through the car buying process. My Honda dealer told me Honda paid the dealership to clean up and process the car when they were delivered off the delivery truck and he would never double dip and charge the customer again. He was the owner of the dealership and the last of any honest dealer. I've been trying to buy again recently and couldn't stomach the bs so I just quit the process.
I with ya. A root canal only takes an hour of discomfort.
I do my homework on what price I am willing to pay. From that point I will only discuss what the OTD price will be. Now I don’t care how they arrive at it and if they aren’t willing to do business that way I will walk.
I absolutely hate when it time to buy a new car because of all the bs that goes along with it. I don't understand why it just can't be a straight forward transaction like buying anything else.
Greed
When I was young and dumb, buying my first car at the dealership. It was a used car and the salesman told me the car was on sale for 1700. Believing I got a fantastic deal I was ready to sign the paperwork and being so excited I didn’t notice right away that the price on the paperwork was 17,000. Luckily I did catch it before I signed. My brother was with me. He heard the man told me 1700 you can’t trust these guys these videos are very helpful. I hope the younger generation pays attention.
My last two vehicle purchases, from eleven and six years ago respectively, I did 100% online. Initially, yes, I went to dealerships but only to drive vehicles that I already narrowed down as far as what I wanted with brands and models. Once that was done, I did a lot of research and narrowed down even further, to color and trim, and finally, what's a fair price for both me AND the dealership, and also what others in my area paid for the exact same vehicle. I get that dealerships should make between 2 and 3% profit on what they paid for the vehicle, and that's fair and fine. This information, albeit is hard to come by, CAN be found online. At that point, I made it very clear that I'm READY to buy, that I WOULD be buying almost, if not immediately, and that I do NOT go back and forth. In other words, I don't haggle. I also worked with no fewer than two dealerships, and sometimes three, simultaneously, and also paid cash. It's worked beautifully for me, but usually the dealerships I INITIALLY dealt with, were tone deaf to my statement about NOT going "back and forth" as I requested, several times - AHEAD of time, their BEST out the door price. When they gave me a price and it became obvious that they didn't take my statement seriously, I simply thanked them and went on to the next one and informed them that I already dropped a deal with another one due to the price being too high and them not listening to me or taking me seriously. The BOTTOM line is they want to sell cars, and I want to buy one, and I'm all for everyone being happy, but I'm not going to be taken advantage of either. I am ALL for them making a fair market value profit - and let's face it; we all know dealerships and car salespeople make VERY good money. I personally know several and I was blown away at how much a couple have confided in me about their salaries. I'm NOT saying they don't work hard and long hours for it, but damn. Fun fact: contrary to popular belief, including ME, the REAL money is in USED car sales. Anyhow, make your money guys and gals. It works for me. Of course, I already inform them that I (truthfully) don't NEED to by anything, but I'd like to, so if not deal materializes, it's okay. If the deal isn't there, cool, it's not there.
I am very grateful to be in NZ. In our country there is a Consumer Law to null any sale with those practices. Also there is a National Motor Vehicle Dealers Institute that all dealers must belong to and which certifies and guarantees all vehicle sales. If a car fails in under 90 days or a dodgy car is sold, then the MVDI must "Put it Right" which can be anything from repairs to replacement or even a full refund.
A government agency that reasonable and worthy would never be allowed here in The Corrupt States of America!
@@georgejetson4378 Oh, don't get me wrong we are not all angels. But the US is too large for community oversight. Here we have a community of 5.5million across 1,200miles of country. Our neighbours know what you are up to so regulation is needed. We also have a comprehensive Social State support structure so too many rip-offs and the govt bears the cost. Better to nip the idiots in the bud (butt) before too much mayhem ensues.
I always buy certified pre-owned cars. One time, I had two dealerships essentially bid against one another. Long story short, there was basically the same car being offered in two dealerships and I bargained between the two, one over the phone while standing in person at the other, and it helped getting the price down. Another time I was test driving a car and wasn’t keen on it. As I was pulling up, the salesman said someone who had already looked at it had come back to buy it so if I wanted it, I’d have to say so then and there. I said that was great and that I hoped they’d like it. I then carefully walked the lot and tucked away was a better model with all the bells and whistles that the salesman hadn’t brought to my attention. I testdrove it, etc., and then told the salesman I’d buy that one if I could get it for the same price as the other one I had just test drove. It took some wrangling but I bought it and love it. I would recommend buying certified pre-owned cars from a dealership that does service itself.
Ummm, certified pre owned means absolutely zip zero nothing.
It’s only marketing speak.
"certified pre-owned" means the dealer certifies that the car is good. I never knew of a car dealer that didn't say that about every car on the lot.
Do the research so you'll have a ballpark number for the vehicle you're interested in. Fix a price in your head that would make the deal satisfying. Offer that and be prepared to walk away if they start to grind you. There are plenty of vehicles available so it's now a buyer's market.
I was in my 20s when I went to a dealer to buy a car I liked, but I wanted the manual (stick shift) version. The salesman insisted that the car only came in automatic, probably because he didn't have any on the lot. I pointed out that it showed the option in the brochure, but he told me that I was misunderstanding what it said. I walked out and bought it at another dealer.
I always tell them I want to negotiate the "drive out" price including tax title license and fees. They always object. I always walk out. They always stop me before I get to the door.
As far as illegal or unethical acts, I've had two. One time I bought a brand new car, which was transferred from another dealer. That's not unusual. However, 2 years later I had electrical problems. The shop said it had been in a significant accident. The dealer was out of business, so I had no recourse.
The other experience was the dealer that wanted to evaluate my trade in. No big deal, but he refused to return my keys unless I purchased the car. I started to call the police and he threw the keys at me and cursed me out.
If he threw keys at you, that constitutes assault. I would’ve filed charges.
On 2.26.2024 I bought my dream truck. For over two years I had been looking for a Toyota Tundra Crewmax Platinum. I wanted to find one with low milage and in good shape. I did not want to buy one in older than 2015. Finding a Toyota truck with low mileage in that year is almost impossible. I live about two miles from my local Toyota dealer. I told my wife, I am going to the dealer, tell them what I want and let them find it. I did just do and less than 15 minutes the salesman told me they have buy truck on the other side of town at one of their other dealerships. I told him I would be back tomorrow to see the truck as they had it brought to my local dealer. That truck was so clean you would think it was brand new. It is a 2018 years with 53,000 miles one owner and was bought here in South Carolina and not from some rust bucket state up north. The Carfax was damn near perfect with all maintenance kept on schedule. The price was a little more than I wanted to pay but finding another truck like this was impossible. The dealer had put a new set of quality tires and serviced the front brakes. I had cash. One thing I will not do is finance a vehicle. If I can't pay in cash, I will so with out. In the end I did have to pay their stupid fee of $1,100 for whatever. At this time I knew this was a deal I would not find anywhere else on my dream truck. The original owner also had added some nice Toyota accessories to the truck as TRD exhaust and running boards. The truck is in my driveway at this moment 12.28.2024 and is a pleasure to drive. So, sometimes you just have to suck it up and pay the damn fees.
Why do car dealers have to make purchasing a car so difficult?
They don't make any money off a new car sold for cash or outside financing, that is the simple answer. So they sell the financing ( for a fee or commission), they sell the service agreement for a fee or commission. They pad the fees and prep which is just cash in their pockets on day one. When a new car needs $500 to go from as shipped to as sold, that is in the price makeup however if the salesman puts a $2,000 fee on the customer and then negotiates a $200 title fee ( cost $25 ) even if he cuts those fees or uses them as negotiations it is still you paying for things you should not pay for.
Another time, I agreed to a price on a Toyota Prius. Agreed to come back on Friday to close the deal. The original salesman not there, and was told the original deal was not agreed to. I walked away, called a dealer in a neighboring town, got the price I wanted, and leather seats and tinting to boot. Walk away.
From an old mechanic, not a financial advisor......
The world's auto makers are in a state of transition from unreasonable government regulations. And generally poor quality control in most brands.
I can NOT recommend buying any new vehicle. Possibly excluding Toyota Tacoma with the 4 cylinder engine.
Buy at least FIVE year old vehicles. That gives time for the recalls and lawsuits to be known.
Good to know; always feel as a single woman have "SUCKer!" emblazoned on my forehead. Will be looking for a new (to me) car about a year from now....absolutely NOTHING I have more.
Excellent advice!
Adding 1% interest would be more like $10 - 20 /mo. Nowhere near $100 unless you're financing over $100K
I bought and paid for my new Tesla on my phone while driving home. Picked up the car about six days later after being at the showroom for about 20 minutes. Best experience we've had when buying a car.
You paid full asking price.
We've got a "no haggle" dealership in town that's fairly good. They'll still try to sell you some add-ons of course but the deal on the car itself is fair and all you have to do is say no to the add-ons. We've bought our last 4 cars from there over the past 25 years (it would have been 3 but one was totalled, I still miss that car, it was my first halfway nice car). But I have walked out of other dealerships - and I don't let them talk me out of leaving or ever go back. If they're slimy in how they sell cars you can bet they're equally slimy on how they service cars.
I used to "seed the lot"...
I threw change around the car lot so customers would think it was "their lucky day" when they found a quarter after finishing a test ride.
You'd be amazed how well that worked.
You’re kidding, right?
@@1wheeldrive751
Nope. True story.
@@my1vice - that’s ridiculous. Someone “finds” 25 cents so they are more willing to buy a $25k-50k car?
@@1wheeldrive751
I can't explain it, but it does have an affect. Like asking questions that elicit a positive response.... "Nice day, isn't it?" That kinda thing.
Psychological tricks, that's all.
I actually had a dealer offer me a lower interest rate if I bought the warranty. I told him I didn't want the warranty, but I did want the lower interest rate. He agreed to it.
Easy to cut out the BS.... 1)Buy for Cash... 2)Get a "Out The Door Price" from 8 dealers. Buy the lowest. Nothing else matters. (I enjoy "Walking Away")
Even better, if you really want a specific color, take the best deal from the 8 to the place with the one you want and have them beet it.
Cash doesn’t make a difference anymore. Dealers get kickbacks from financing. Better to make the best deal, finance and then pay it off. My last car I bought at 1.9%. My MMF is paying over 4%. I’m not paying cash when I can get money for 1/2 the interest my savings are paying.
@@SpookyEng1 This is very true... But those Interest rates DO NOT exist today. ANother way to play this though is to Finance at the lowest rate you can (and best Price among all dealers) and then Pay off the balance after 1-2 months payments. This works if the buyer makes sure there is NO EARLY payoff fee/penalty. Quite often, just to move the vehicle off the inventory... the Dealership will know what you are planning and still do the deal.
@@RyanBerich-u1w This is the best way and I always do this. Got a super decent deal from Schrute Farms recently.
If you tell a dealer up front you are paying cash and want no options etc they will not give you their best price, as they have no way to make money on financing or options. Negotiate your best deal… BEFORE discussing financing and add ons. If necessary to get the best out the door price …. Take their financing and then pay it off within a day or in the first week. I believe most if not all states ban pre-payment (paying off early or immediately) penalties.
Once , at a dealership , my wife and I were sitting on a couch watching tv , waiting for paperwork to be drawn up for signing. Soon after my wife got up to go to the restroom , our salesperson discreetly walked up to me and presented a document stating that the vehicle had previously been involved in a collision. But that the vehicle was repaired as good as new and wouldn’t be a problem. She asked me to sign it and I reluctantly did. Then she hurriedly walked away before my wife came back. My instincts said for me to walk away but I didn’t listen. I didn’t tell my wife and ended up regretting that purchase. The vehicle started presenting problems a few months later.
I bought and financed my first ever vehicle in 2003, it was a 2 year old Honda Odyssey with 30,000 miles on the clock from the town Honda stealership. Terms and price were all great. 6 months in the transmission is failing, so I return to the dealership for the warranty repair, only to be told there is no warranty as the van came in from Canada. No one told me that I was buying a grey import! Dealer wouldn't help, Honda USA refused to even reply to all my letters, so I threatened to park the van in the entryway of the dealership and let everyone know how dirty they are. They wouldn't fix the van, but the deal I walked away with was a full trade for the van, paid off the whole financing, and I took another car off their lot, which I traded 3 months later for $3,000 more than I bought it for. Ended up winning, but no thanks to the Honda stealership or Honda USA.
When I walk into a dealership they catch hell, been kicked out a few times but I get my price or don’t buy.
How to avoid all of the dealer BS? Buy one car that is extremely reliable and hang on to it for 30 years maybe longer. Maintain it.
Still got my 2001 Corolla & 2007 Forrester. But I'm really living on borrowed time now with the Corolla.
Hey Geoff , my son is currently working through an issue on a used car he bought from a dealer. After he purchased the car he had to have some repairs done which were costly and not in this young family’s budget. He then decided to see what it was worth to sell so he got a carfax wicked clearly showed the mileage when the dealer got it which was about 120,000 miles more than it had when my son purchased it. Waiting to the dealers response from the attorneys letter now !
Wow - shameful.
I was selling a car to a new car dealer and not buying one from them. They didn't want me to sign the title. I advised them it was state law for me to sign it and write in the miles. They told me to leave, no deal.
I firmly believe that car dealers and attorneys are in an eternal contest determining which is the most despicable and scummy.
add politicians to that list
@MH-fb5kr Bingo, that's correct. It's a three-way tie!
Thanks for this video, which I'll be sharing with my family. I hate car dealerships and the car buying process. My first new car was a 1981 VW Jetta. I told the dealer I wanted air conditioning and cruise control. I got those things but as I found out later, they were not OEM accessories. No way to get them fixed under warranty.
Never pay for “protection packages”, or “nitrogen” or “window tinting”, all of these costs a lot less outside the dealer. I’ve told them they can remove the window tinting if it’s on the vehicle.
I never finance through the dealer. I have before and paid it off on the first payment. The dealer wasn’t happy about it, must of affected their kickback.
Back in 1981 I bought a $4000 car where I had $2000 in cash and another $2000 in a CD that would mature in a month. So I had a very strange loan where I had one payment due in a month - of $2000. So you could say I paid that one off on the first payment as well ;) Up until '96 that was our only car loan. In that year our car died unexpectedly just after we'd closed on our first house and cash was a bit tight.
Buy a Tesla, Rivian or Lucid on line to avoid dealer hassles.
🤮
I had a dealer wanted to “fee” for cash, almost 800.00$. If we took the loan we could pay it off in a month, we took the loan and paid it off the next business day.
Never tell them you can or want to pay cash. If they don’t think they can make money on the financing or other stuff then they won’t give you as good of a deal
A true man of the people.
I bought a pickup and then found out three years later when I went to trade it in that it had a branded title. Original dealership told me it wasn't their problem. I lodged a complaint with the state dealer board and the dealership was told to buy the pickup back from me. They drug their feet until the board showed up to pull their license.
Good info!!! Thanks, Jeff!
It is illegal not to disclose a “salvage title”. It definitely happens. That is a question to ask when buying a used vehicle. The vehicle reports generally show it but buyer beware. Car dealers will do nearly anything.
The area we lived in had a massive hail storm. The numbers of cars being totaled by insurance was shocking- millions of dollars of damage. The insurance agencies would not reinsure the totaled vehicles. Customers really had to be watchful of the vehicle description from insurance agencies. Many vehicles had been assessed as not having four wheel drive, larger engine size, towing packages and etc.-causing the claim to be smaller. When people would go to the car dealerships to find a new car, some dealers would charge them an extra $2000 fee for NOT having a trade-in. Oklahoma’s spin on price gouging.
One time i negotiated a 7.5% interest rate, took the contract home and they had actually put a 12% rate in the contract. I called them to let them know i found it, they tried to lie their way out of it and wanted me to come back in. I told them no and they hung up on me. Most rewarding hang up i have ever had.
I bought a used car and checked Carfax so everything looked good. I had no idea that Carfax only tracks repairs going through insurance companies. Needless to say it had been damaged in ways that i didn't see. The secondary headlight bulbs (brights) were missing. The driver's door car leaked in the carwash and the trunk will pop open unexpectedly.
I've been making a list to better inspect when I buy my next car. And to take a negotiator with me. All they see is just a little old lady as an easy mark. I want backup!!
I had a dealer tell me I had to pay a subscription fee to use the remote start function. I heard of fees like that and I've heard they were trying to charge subscription fees for a number of functions that were already on the car, but wanted to charge you to actually use them. 18:23
I am 73 years old and have bought several new cars and only one time did I walk out of a dealership without buying a car. All other times I began to walk out, they called me back to meet my terms. You have to set your price and stick to it. Otherwise just flush your money down the toilet.
Last new car I bought was in the dealers show room for a brand new 2017 Toyota Corolla IM for $16,500. I brought in a check and dealer didn’t stick with add-ons so I’m happy. Still have the car and it’s working great. 😊
Lesson One: Best time to purchase a car used or new when you do not need the car immediately.
That way you CONTROL all communications and negotiations.
Since you do not need the car, you can take all the time in the world to get the car on YOUR terms.
In 1987, I was 21 years old and was looking to buy my first car. I was interested in a slightly used Ford and went to the dealership to check it out. The salesman looked at me, talked about how it was a new shade of blue, and pulled down the visors to show off TWO makeup mirrors. Then he told me to come back with my father or boyfriend and he could let me test drive it. I took my money elsewhere.
My newest car is a 2007; my oldest is a 1972. I'd rather go to the dentist then set foot on a car lot. True story: a Honda Dealer had a wrecked (totaled) on display outside. A prospective customer was driving with the salesman in the front passenger seat. A friend of the customer who was sitting in the back seat, leaned forward and said "let me show how great this car handles" and jerked the steering wheel causing the wreck. I heard that the salesman quit
Great information! I wish I had more self confidence when buying a car. We had to buy two cars this year, it was the stuff of nightmares
I am in pursuit of a Used Nissan Frontier. I am paying cash. This video helped me out quite a bit.
Clear and calm , thank you very much!!
When I first talk to a car salesperson, I tell them that I have several rules that they need to know:
I negotiate ONLY on sales price, not monthly payment.
When a price is agreed upon, if there is ANY mention of ANY extra fee, I walk out without saying goodbye.
I will take care of tax, tile, insurance, and license.
70 yr old female, just bought a Tesla..so easy, no haggling, $7500 rebate, GREAT car! No oil changes, no dealership service dept ripping me off…Don’t knock it till you drive one….EV’s are amazing
@@lmb4876You're welcome for the $7500 taxpayer funded rebate.
Went to look at a car and the salesman sat us down and we talked. We told him that we already have an offer from Carvana and we need them to offer the same price. The salesman said that he would have to talk to the manager. The managers office had a glass front so we could see what they were doing. All we saw was what looked them joking around for a little while. Then the salesman came back and said that the manager could not give us anything more that what he offered. So we got up and walked out. Two days latter the same salesman called us and asked us if we still wanted the offer they proposed. We told him that we had already sold the car to Carvana and the other end of the phone was in silence for about a minute. I think that he was shocked that what we said was true and no B.S. We have since brought a second car from Carvana and are much happier with the deal than with the dealership. My suggestion is DO NOT BUY FROM A DEALERSHIP. They are a bunch of ripoffs!
I just bought a 2021 truck in Tennessee on Dec 26, 2024. During negotiation, I noticed an $895 Doc fee, and said I'd be willing to pay $500. The price of the truck was good enough already that even a $500 Doc fee left the truck price well under market value, so I didn't mind that line item. The salesperson fed me the line that they'd have to just lower the base price by $500 because TN law sets the Doc fee, and they can't lower it. I subsequently found out on internet searches that there is no such law in TN. I plan to email the salesperson and let her know that the nice experience I had just got tarnished because I found out she flat-out lied to me (imagine that). I'll be curious to see how she replies.
Many states have a cap on dealer doc fees. My state, Oregon has these legal iimits: (a)$150, if the vehicle dealer uses an integrator; or
(b)$115, if the vehicle dealer does not use an integrator. Some states like FL think they are in the wild, wild west and let the sky be the limit on doc fees. Also, when it comes to interest rates, there are two rates - the "buy" rate and the "sell" rate. The buy rate is what the bank tells the F&I guy how much interest they need on the loan. The F&I guy is allowed to mark up the rate up to two or three percent or more and get a commission based on the difference. This is called the "sell" rate. Always ask the F&I guy to see the bank approval to see what the "buy" rate is and NEVER pay over the "buy" rate. If they won't show you the "buy" rate or give you the "buy" rate, walk out.
Thank you 🙏. Thank you 🙏. 👏👏👏👍👍👍😍
I think doing research online changes things. I communicated with about half a dozen toyota dealerships in my area, got the best price ( from the closest dealer, awesome ) got the out the door price I wanted, got a reasonable price for my trade in, and picked up the car freshly washed and full of gas. Corollas were in short supply so I had to wait 3 months but that wasn't an issue, my new Corolla has been great so far.
Retired several months ago and considering getting a smaller new vehicle. My 2004 Honda Pilot served me well. I figure the next car I get will be my last.
Great info. It's been twenty years since I last bought a car.
What models are you considering
@@hungoverpilot7351 Was thinking HRV but it appears to be underpowered. Hybrid HRV would be nice if available.
The law requires every new car to have a Monroney sticker.
I looked at a car that did not have one, and asked to see it. The dealer wanted me to commit to buying the car before seeing it.
I told them where to stick it and left.
I once had a dealership call me a week after the sale to tell me they had miscalculated the value of my trade. My trade in was a fairly new Benz and the way the deal was made they actually owed me about $3500 on top of the price of my new Suburban. They said their trade in evaluator and made a mistake and thought my Mercedes was a turbo. They wanted to "make it right" by keeping the $3500 they owed me. Long story short my attorney neighbor had the check for me that afternoon and only charged me the price of his lunch where we met for him to give me the check. :)
I had a similar experience. Signed all of the paperwork and took the car home on a Friday. Monday morning, I got a call from the dealership saying that I need to put down a $1,000 and redo the paperwork. I told them absolutely not and I'll be there within the hour to return the car. They said no, you can't do that. If you do that, that will be like a voluntary repossession. I was like, no, it won't be because we never had a deal, according to you guys. They were like, it's only a thousand dollars, you can't come up that or borrow it from somebody? Here are the keys sir, have a nice day. Shady as hell!
Bought a new car a couple months ago. I know my stuff. Went to a dealer two blocks away. They undervalued my trade by $3500, wanted sticker, and couldn’t be bothered to include all the rebates. I literally got up and left without comment.
Got online and negotiated a purchase with a dealer 330 miles away. Saved around $16,000.
I don’t understand dealers that love to screw everybody.
Buyer beware - it's the wild west inside that showroom.
Why would anyone buy car without simply dealing on "out the door" price? And interest rate if you are going to finance? If you do that, none of the other things matter. And yes, driving a new car away without the deal fully cemented is crazy. No reason for "games" when buying a car.
I made a terrible mistag buying my first new car. I told the salesman I could pay x per month and they actually raised the price of the car 3500 over msrp to accommodate me. Whet was worse they told me I had to take the deal because I said I wanted the car. When I walked out my troubles just started. I went to another dealer and tried to buy the same car and found out GMAC re flagged me the wouldn’t sell me the car unless I got another bank to finance it.
Don't finance a car. Cars depreciate quickly, often faster than you can pay off the loan, meaning you might owe more than the car is worth for part of the loan term (negative equity). Pay cash. If you don't have enough cash, you need a cheaper car.
I bought my car new (hated the experience). It still has 3 years left on the warranty. The dealer keeps trying to sell me an extended warranty. 🙄
What an experience at 25 years of age.
Even then you had a good head on your shoulders.
Car salesman can be annoying.
It shaped a lot of decisions in my future.
Buying Cars is like buying a home (big ticket item with a lot of details) so of course there is going to be a negotiated price. If you don’t want to negotiate or haggle just pay the sticker price. If they want to add on other costs or a higher interest rate than you can get somewhere else then walk away and try the next place. Not overly difficult for a high cost item
I can't explain because I get anxiety and it makes me sick to my stomach remembering the experience.
Bought a new car for my wife a couple years back and got a good end of the year deal (best time to buy IMO). This was after all the stupid fees were taken off and didn't even discuss trade in until I got the price. I had the cash to buy outright, but, I knew the next step was the finance manager who would press me on every add on and other BS. I let him give me a higher interest rate than I know I could get with excellent credit and the rest was easy cause he had earhed his money already. I paid 1 month of the loan then paid it off in full (made sure no penalties for that). So after working thru the sales guy - exhausting - 1 month's interest was what i was willing to pay to avoid the next round of exhausting negotiations.
I buy reliable, non-flashy, comfort cars and keep them 10-20 years. I've saved enough for an all cash deal but now I find that cash is NOT king in the car buying world. :( My current "master" plan is to go to my credit union, get pre-approved, negotiate the best deal I can on the loan, confirm no pre-payment penalties, then pay off the loan in 1-2 months. Good plan or not? If not, please say why.
BTW, I love Holy Schmidt's videos. Great info. I love his calm, smart demeanor.
Don’t fall in love with anything that can’t love you back. Not a car, or a house, or any other inanimate object.
Very wise.
I didn’t have any undisclosed fees but I did have trouble having a dealer take my order for a factory build car. Initially I didn’t have enough options for the dealer to place my order 🙄
What a shady dealership, wow!!!
Worked on the service side of several dealerships for nearly 20 years. Boy! Could I tell you some stories. They all had one thing in common; they are a den of thieves.
Always get prefinanced at a credit union, they sell generally some of the BEST warranties at 1/2 the price of the dealership. I helped my customers purchase cars and walked in and out and back home within 1 hour. Know what you want and never deviate or tell the salesman that you’re leaving and mean it! Put them on the clock. Lastly rent cars for a day and see if the car fits your needs , not a 10 minute test drive . Good luck
I have put off buying a new car for over seven years because of bad stealership experiences. For example, My first bad experience that I had was when I test drove a new 1985 Toyota Corolla that was selling for sticker price (a rarity at the time). So, I was in the process of finalizing the deal with the salesperson when he said, "I need to get this signed off by my manager." He went down a spiral staircase and I could hear him with my good hearing, discussing my deal with the manager who said, "Tell him that the car is not available and we will have to order the car for him at 2000 dollar higher price (this was nearly 30% markup in 1985!). I was so disgusted with this bait and switch tactic that I untruthfully said when the salesperson returned, "I'm having second thoughts about spending so much money." I left and then wrote a letter to the company that had advertised christian ethical values in the yellow pages, and I never returned. I'm actually considering a Tesla, despite what I feel about Musk, to avoid a stealership.
We think we dodged a bullet at a Toyota dealership in Orlando some years back: we saw a specific Camry advertised, and we caught a new salesman who - when asked to see that specific car by the inventory # in the ad - actually brought out THAT car. When his manager came out, he was really ticked at the sales guy. I have no doubt he was supposed to say "sorry THAT car is no longer available but here's this other car (at a higher price)." We actually did buy the car we wanted, but I've always felt that we dodged a very common bullet on that one.
Been there. Driving away after saying no to the price they quoted. Salesman flags me down, pulls out a piece of paper with a better price. So, go back to the office, he goes away for quite a time, comes back with a different higher figure . BTW, the paper disappears.
The state of Illinois makes a significant profit from issuing salvage titles. A vehicle doesn't have to be in Illinois to have a salvage title issued. I had a brand new Jetta titled in Montana, and it caught on fire three months after I bought it. The insurance company totaled it, and three months later. The car was sold in Washington, and the title was from Illinois. If your fax cars start in Illinois. I would not purchase it.
My father-in-law used to say that we are at a disadvantage because we are amateur buyers and the dealers are professional sellers.
I'm taking a hybrid approach with VGT, SCHD, and VOO as my foundation over a 20-year horizon. I still enjoy life, travel, and buy what I love. It's the best combo, plus I enjoy the small victories of dividends, dividend growth, and share price appreciation.
Had a Kia dealer that after we had a deal with trade. But when he came back the price was 199.00 more. I said that is not the price agreed to. He said they add admin fee to every sale. I said I was not paying and if he wanted the sale he had to get it the the agreed price. He finally gived me 199.00 more trade so the price is what we agreed to. They are not your friend and you have to be ready to walk away.
When i was way less learned about buying a car- My first new car purchase, a 1990 tercel for $7.1k, left me salty as the salesman said my credit my 'bad' and my financing would be costly. I told him no way. I was gainfully employed and simply got a car loan from my local bank, with ease. This was pre-internet, all paperwork and telephone calls, and the delay in approval time made the whole experience like an ordeal. I still harbor some ire to this day, for the salesman hassling me.
I found incorrect calculations and told the dealer at a buy here pay here lot. The man was amazed ... i had to do the math in front of the salesmen. I got the car at my correct calculations. Sad to say... I'm sure they continued to sell cars with incorrect calculations benefiting them.
A major dealership would not let me test drive a car unless I purchased the car first!
I’m so glad I live a block from the subway. Never again will I live anywhere that I NEED a car …!
Always check the math with a calculator as many times it is incorrect and not in your favor. I had a friend who sold cars for a living and he said you will never get your best deal unless you get up and walk away at least once. Yes there are some cars that are in high demand and the dealer knows he's going be able to sell them to someone else but most salesman know that a sale today is better than a possible sale tomorrow. I've been told before by a salesman that he knows he can sell that car for that price and I respond maybe but you won't sell it today. Also when negotiating a price always make the dealer start with a price. If they ask you how much you want to spend say I want to spend nothing. I learned this from the movie "Tin Men".