CASH CAR BUYERS Beat Dealers At Their Own Game In 2024 - A Genius Homework Guy Plan

[@KevinHunter]

Public Service Announcement! Lenders are prohibited by law from charging a prepayment penalty for an auto loan of 61 months or longer. So, when using this method, focus on a payment plan that's 66 - 72 months. This guarantees there is no pre-payment penalty!

[@jhernan11]

Is that a federal or state law?

[@1laimmiss]

So if i take a 60 month loan there is a prepayment penalty? And how much is it?

[@KevinHunter]

Doesn't mean there is. Likely not, but a 72 month loan quote guarantees there is not.

[@robertblaney5033]

Great advice !! I’m definitely going to use this strategy when I go to buy a car 👍👍

[@CrackaSlapYa]

@@KevinHunter lower payments if it takes a month or two to get all the money together, too.

[@dsbennett]

Many years ago, my boss told me how he bought a truck. He got a low price financing through the dealership. Next day, he went to the bank and paid the loan off. A few days later, the dealer called him and accused him of ripping him off! My boss had the pleasure of getting a lower price and pissing off the dealer.

[@gymfloor169]

I did this same technique, paid it off a week later once the bank sent me the loan details

[@Halomotooo]

So cool

[@SamSteeles]

That's pure genius! If someone is able to get the funds, then this is beating them fn crooks at their own game. Take the family out for dinner!

[@matthewmckenzie7687]

@@SamSteeles What's better is waiting for the "finance did not come through" call and settling then.

[@msk3905]

I’ve been looking for a new car for my wife, had every intention on paying cash but knowing that they’d give a better price if I finance so I was planning on doing the same as long as no early payoff penalty. I actually bought her car last week but things have shifted and since it is very hard for many to get financing and rates are high they gave me a better price for paying cash.

[@KevinHunter]

What's funny about this method, is that it's actually ok if that smile on the back of your mind shows on your face. The dealer will simply think you are excited about the car you're getting!

[@neonnoir9692]

That's called the Duping Delight, just don't get a salesman well-versed in psychology!

[@skepticsamuel]

Be careful they don't try to front load the interest. Meaning any prepayment is applied to interest before principal. Read that financing contract!

[@TheBerkeleyBeauty]

This is a TERRIFIC comment! Absolutely something to watch out for!! Thanks for leaving this gold nugget here.

[@gagavacha8060]

Totally agree with you! Most loans have front-load interest into your principal. So even if there is no prepayment penalty, you are obligated to pay the front load interest in your loan.

[@MrSteelermaniac]

How do you find that out. Special wording in the contract? Thank you

[@chrisvig123]

All loans do that from what I’ve seen

[@griffinreitz7041]

If you look at an amortization chart, all loans are mostly interest when they start. That is why you can take so much off a new home loan, the first few years if you pay extra towards the principle. It's not a big deal if you are paying off the loan the first few payments. At 66 I just paid off the first car loan of my life, and the first loan I let run full term. When I am paying 1.9% and drawing 3.5 to 4.5% on the money I was in no hurry to pay it off. LOL

[@frankrothiz4u]

This video is so needed for those folks that lack the skills needed to successfully take on the aggressive dealer tactics. Bravo !!

[@KevinHunter]

Yes, that's exactly why we did this show!

[@frankrothiz4u]

@@eshelly4205 I Believe it , what you say is likely true for at least 85% of the folks coming in to buy. I usually buy at 15 - 24 % below msrp and that can take a month or a year to achieve because there are so many unskilled buyers in the market that I'm a last resort for sales to tap into

[@bp39047]

Excellent advise as usual. In 2012, I had a friend who wanted to pay cash without financing but did instead financed to get the $2k bonus if the vehicle was financed thru the dealership. He paid off the loan off when he got the payment booklet. Another reason to finance if you are still paying cash.

[@rasheemthebestfirstone3274]

What 2k bonus

[@bp39047]

@@rasheemthebestfirstone3274 It was a promo Ford was running then to get buyers to finance your car thru them. As soon as he got his money and payment booklet he immediately paid off the loan.

[@timcat1004]

I was a Lot Boy at a dealer. I was 16 at the time. The corruption and high fives I saw the salesmen do behind the customer backs was beyond belief. They even started to groom me. They got me to disconnect odometers on used and new cars that the salesmen drove for personnel use. I will never buy from a dealer.

[@rob-442]

It's no wonder why people hate having to buy a car from a dealer. What a ridiculous process you have to deal with. It completely turns me off. My car is 19 years old and, because of the dealer process, I have no intentions of buying another one any time soon! I am really hoping the dealerships end up going away and we can buy a car directly from the manufactures as easy as buying a loaf of bread. Thanks for all your videos as they are eye openers to the disgusting methods of the dealerships.

[@apopisso6302]

Very soon all car dealers will be charging fixed price perhaps? Saves a lot of f’ing around.

[@cnobillbradley9673]

No matter. Still negotiate. Stay Sharp!

[@CitEnthusiast]

I was looking at a Kia Kona EV, just looking. The dealer in NoVa sat me down to talk money. They included a $900 fee for the dealer installed theft tracking device. I told them I wouldn't pay for it as I didn't need the 'protection'. But they refused to remove it. No sale. Keep in mind, this was NOT mentioned other than as a line item on the price sheet, so read every line, challenge any fee you don't understand. They also had a fee for the sale, I don't recall what it was called, but I compared it to going into Walmart (or any other store) and being charged a fee just for being able to shop there! Will never deal with that dealership chain.

[@evolvedape9171]

I got a great purchase on a new Acura two days ago using your strategy. I negotiated for an out-the-door price with the salesman and totally vague about how I was to pay for the car. In the finance office, I refused all their add-ons and the finance lady was getting edgy with me. She then rolled out her finance plans, and after listening to her politely, I gave her a check for the car. I could not have done that without watching your videos. Thank you for saving me thousands of dollars.

[@KevinHunter]

Music to our ears! I'm glad we could help and inspire you!

[@jeepsarefun21]

Why pay cash though?

[@evolvedape9171]

@@jeepsarefun21 I was fed up with the finance woman and the dealership. I wanted to get out while I was still ahead.

[@zzanatos2001]

Congrats on the new car. What did you get? I've been looking at a new Acura TLX Type S. I currently have a 2003 TL Type S, and it has been and still is a fantastic car.

[@evolvedape9171]

@@zzanatos2001 I bought my daughter an Integra A-spec. She is over the moon.

[@mitchellferre1652]

My favorite part of negotiating is when I get to take my own fat tipped marker and draw a big obnoxious line through every item and fee I will not pay ! Then I drop the hammer and tell them "no loan , thanks". Learning from your channel has saved me a ton of money. I get satisfaction from knowing I got a great price and I don't care how long it takes. You guys are awesome !

[@sunshinedaydream911]

My favorite bogus charge when I bought a used Lexus from the dealer was the "nitrogen-filled tires." When I read this on the form, I started laughing loudly and the loan officer's face actually blushed when I said, " WTF" is this shit? He replied, well some customers want this included. I got a great car with ZERO extras and paid almost 3k lower than the advertised price since it was a Sunday evening an hour before closing on the 31st of the month. I actually was in the dealership 45 minutes past closing with another couple.

[@1wheeldrive751]

Air is 78 percent nitrogen already.

[@BunkMasterFlex77]

My loan was set up with 3 days of getting my car. I signed up for the lenders website and paid it in full online the same day. Poor dealer lost their commission and the bank only got 3 days of interest 😭

[@KevinHunter]

That's awesome!

[@plushie2007]

That's great. I'm wondering if there was a bank fee for the loan? If so, does that mean you merely lost 3 days of interest in addition to the loan origination fee?

[@BunkMasterFlex77]

@@plushie2007 there should never be an origination fee for a vehicle loan. If a dealer tries to charge you that, just get up and walk out. I only paid interest for 3 days bc that's how long the loan was active till it was paid off.

[@bartonthom4166]

I would like to add two items that happened to me----do NOT MAKE THE SAME MISTAKE I DID! NEVER MAKE A DEPOSIT ON A VEHICLE UNTIL YOU AGREE ON A PRICE AND HAVE THE CONTRACT SPECIFY EXACTLY THE VIN # OF THE VEHICLE!! After I picked the vehicle I wanted and wrote a deposit on it --they did not let me drive the vehicle home---and when I returned the following day the price of the vehicle was $ 25,000 HIGHER than the agreed price the day before. READ THE ENTIRE CONTRACT AND THE PRICES BEFORE SIGNING THE CONTRACT!! i HAD ONE CONTRACT I AGREED UPON AND THEN WE WERE INTERUPTED FOR 10 MINUTES--THEN WHEN i RETURNED --THE CONTRACT HAD BEEN SWAPED TO ONE WHICH INCLUDED EVERY DEALER OPTION!!

[@aljenabi3230]

Da !!! When you make a deposit on anything by definition you agreed on price

[@Pound_Shift]

You always have 24 hours to rescind the contract

[@celticlightning9703]

We have cameras at the ready today and I will take a picture of the contract before I move to scratch my a$$.

[@buffalo_wings8224]

I've been reading up on "prepayment penalties" and there is such a thing as a loan that does not technically have a penalty, but you're still on the hook for paying back the entire amount of principal and interest, regardless of how quickly the loan is repaid. It's called a pre-computed loan. You really have to read the fine print. My nightmare is not understanding the fine print, and being thrown a curve ball when I try to pay it back quickly.

[@shackrat2331]

I haven’t seen a Rule of 78 loan for years from a bank. Good credit, no problems. Mouse houses may still use those loans, but I really don’t deal with secondary lenders. CIAO!!

[@Funexpected]

This is exactly what I worry about. I may not understand the convoluted way the rules or loan policy is written, then get screwed with an early payoff.

[@TheRyanandKimberly]

@@Funexpected I just did some Googling on this, and you want a "Simple Interest" loan, NOT "pre-computed interest."

[@KevinHunter]

Ask for loan terms that exceed 61 months. Penalties for prepayment are against the law on loans longer than 61 months.

[@Funexpected]

@Kevin Hunter The Homework Guy Noted. I read your other comments, and this is important information and the way to proceed.

[@thetruthyes]

I called many dealers and walked out on many dealers. None gave me a lower price, they kept blaming everything on the market. None called me back either. Most of these tactics don't work anyway because the next person is gonna go in and pay full price with a 10 year loan.

[@ProfessorOzone]

Yeah, that's my fear. I'm about to do this and I'm concerned they'll just let me walk and I'll have to keep looking. One time I negotiated a deal and when they offered financing, the rate was ridiculously high. When I told them I would just get a loan at the bank, they told me that price was only good if the car was financed with them. I believe that's illegal. Of course, I didn't know that at the time and they got out of a deal they didn't like because they had offered me too much money for my trade sight-unseen.

[@rasheemthebestfirstone3274]

@@ProfessorOzoneis it illegal?

[@ProfessorOzone]

@rasheemthebest First one I didn't verify. I was told it's called coercion.

[@beltycat5490]

They believe they will “get it all back in the finance office “ an Excellent Point!

[@johnschroeder3591]

I did that on my last car purchase. I also looked on line for cars, (new), and was offered a deal on the exact model but the dealership was quite a ways away. When negotiating I brought out the email offer and told the finance guy to beat it or I will spend the gas . He beat it, I took it home and paid off the financed loan.

[@rightwingsafetysquad9872]

In addition to what you've said I find financing to be a more convenient way to pay for a car purchase. I usually don't keep much more than the money I'm planning on needing for a couple months in a checking account. The rest is usually in a money market account, which takes about a week to get access to. Pay a minimal down payment, take the loan, and by the time my payment book arrives the money has been transferred.

[@weekendhero7411]

Last time I bought a new car - 1995 - I had the lot salesman and the fleet salesman unknowingly bidding against each other. The same car had two different newspaper ads. Financed with my CU for the bonus, paid it off soon as the bonus hit my account.

[@notahamsterr]

I JUST turned down a brand spanking new car I’d been on a list for, for over a year waiting. Aside from the inflated price, a HUGE red flag for me was when the car was coming in, they sent me a text wanting to start the credit application process via email. Before the car was even delivered and I could even test drive it! They had no idea I wanted to pay cash.

[@kirkdunn1379]

Thats OK, you can finance it and just pay it off a month later

[@goblinzl1]

on my last purchase i negotiated an OTD price online and brought a certified check. i got a great deal and i never told them i was paying cash. i politely turned down any extras and said im paying enough.

[@FLY2KO]

1980 I was 18 and went to a dealership with $5,000 cash on me and a guy who worked with me and was 40, we looked around and found a just 2 year old 1978 Z28 with 18,000 miles and it was literally driven by a little old lady and looked brand new, I told Fred I wanted that car and we told the dealership, we asked how much and the dealership said $4,000 I guess thinking I was financing it?, we went inside filled out paperwork and after all that the guy says "so which bank are you financing thru?", I pulled out my $5k and said cash, which got a very strange response from the dealer because as Fred said they expected me to finance so the car price was lower than if had paid cash which Fred seemed to know all about and got us a good laugh as I drove my Z28 off the lot for $4,000.

[@tlhm465law]

I am so thankful to have found your videos. My husband passed away last year. He was the car buyer and mechanic in our home. I am wanting to replace my 2008 Odyssey with a newer one, but I have not been looking forward to dealing with a dealership for all the reasons you point out! Thank you for all your help and information! I'm going to keep doing my homework!!!

[@dsbennett]

Dealers are ignoring the new FTC rules. (Of course) Here’s a comment from another car video. “The Toyota dealer in Marietta GA that I visited 3 weeks ago wanted the following on top of MSRP: 1: $2,000 market adjustment, 2: mandatory Toyoguard at $699, 3: mandatory extended powertrain warranty at $1,999, 3: lots of dealer added accessories, 4: an extra $2,500 because I wanted to pay cash. I walked and bought a Subaru. Great dealer experience at the Subaru dealership.”

[@KevinHunter]

Right there is a buyer who is unaware of the FTC regulations and failed to hold the dealer accountable for violating them. That right there is the difference. Passive buyers get handed a laundry list of extras and fees.

[@davenone7312]

@@KevinHunter You just dot get it do you? They will easily watch you walk out the door as they will get another buyer no problem. So do you want the car or not? This is what you will pay...Period! The only negotiating will be with youre trade in!

[@ProfessorOzone]

@@davenone7312 I think part of the car buying process is to ALWAYS be ready to walk. Sometimes, they leave you no choice, like Padwan commented. In his/her case, I think it was the right choice.

[@skimanfree1073]

They should put them in all the empty warehouses@chillwill5080

[@veger5872]

@@davenone7312 And I would tell them "and you will be negotiating with the FTC to keep your job and business from receiving a hefty fine!"

[@scuddrunner1]

I LOVE dealing with car dealers. I've been kicked out of deals and I always pay cash AFTER we come to a price with them thinking I'm financing. I know dealers are as sleazy as they come.

[@aljenabi3230]

Many dealers are hardworking, work weekends , nights, holidays to support their families and more honest (to get long term business ) than many other professions so before you use these words know many car sale people I’ve dealt with are more honest than your lawyer, politician, transporter, dentist , broker, contractor, blanket rants like ur not healthy

[@panpanaderia2163]

​@@aljenabi3230 Not dealers, sales people. Unless maybe u talking about used car dealers, who are everything at ones. What finance manager doing?

[@solice8844]

@@aljenabi3230 Hardworking doesn’t mean honest. And hardworking never gives them the right to lie, deceive, withhold information, slip in prepayment penalties and unwanted warranties, etc.

[@-rudy-]

I bought two used cars several years ago, less than a year apart. They both went rather smoothly and were financed, but it was interesting in how the salespeople estimated my payment, and the finance managers' figures were $100-$150 higher. The first finance manager was understanding, though--we were both looking at his monitor and he even said the boxes were checked off by default, and it was more a matter of him asking for a yes/no for each line, no drama at all. The second one wasn't quite as friendly, and shook her head in disbelief each time I refused their add-ons, especially the extended warranty, where I got a stern warning about buying a used car without one.

[@leonardyoung6821]

This is good negotiating advice if you have no qualms about being deceptive. I just find it funny that the people who complain the most about dealerships being deceptive are the first to use the same tactics. It would be nice to live in a world where people can just do business honestly, but all of us, buyers and sellers, are greedy and are willing to lie to gain or save material wealth.

[@kcender3771]

Leonard: I understand you're being sincere and I endorse your integrity, however I have purchased three new cars in eight years and stated up front I was paying cash to the dealership. How was I treated in return? Well, the first car my wife and I sat in a tiny room for two hours doing some hard negotiating, which I actually thought was fun, bc I got my deal. The 2nd and 3rd time was for the daughter's car (her new car was totaled in less than a year by a drunk driver and a new one purchased). The daughter and I sat for five hours for the first one and three hours for the second one. So please tell me what you think was fair about that. Being passed from one closer to yet another one was SOP. I'll have to disagree in this case.

[@leonardyoung6821]

@@kcender3771 , dealers make you wait only when you make them an offer that, if they accepted 100% of the time, they would probably lose their jobs. The occasional skinny deal makes sense depending on other factors, but we have to make enough money at the end of the month, after all the deals are counted. If we don't, the owner will not keep us around. Or, we don't take home enough money to the spouse to justify a 6-day-week job that keeps us away from our family. (Look up divorce rates for car salespeople.) You can always "pay sticker and leave quicker" or just wait until the market turns to be more in your favor. If you spent hours at the dealership haggling, it's because both sides were being unreasonable. I don't let it go longer than 30-40 minutes. If we cannot get to a deal by then, I send the customer home.

[@drj1781]

Speak for yourself.

[@nismo370z4]

Very good advice. However, I also like to know what my pre approval rate is, then when the dealer asks if you are going to finance I tell them I am pre-approved, but will go with them if they can be the rate. Several times they have, and this is a good way to get the very best rate - then keep the loan or pay it off with cash !!

[@wakeupworkout7781]

Why not use the pre-approval letter as an additional leverage point to decrease the out the door price? Show that your pre-approval price is lower than their dealer rate but say "I'm willing to take your higher interest rate if you can decrease the OTD price on the car". Then make sure the loan is for 72 months so there's no pre-payment penalty (I'd like to confirm the comments on this video saying that all loans over 60 months can't legally have a pre-payment penalty), get the loan, then pay it off in a week when you can the loan book.

[@Funexpected]

​@@wakeupworkout7781 I've searched and can not find law regarding 61+ months with no prepayment penalty. Have you seen it in writing?

[@jamesbrown7521]

As a finance manager with 27 years experience in the business we always have backup plans. If we aren’t making money on the deal we are no more obligated to accept a deal anymore than the customer is. There is always an acceptable deal to be found where both the dealer and customer will both be happy.

[@ynotbloom]

You folks are AWESOME! I'm one of your listeners that has got too big of a heart to go in, guns blazing, even when I know I'm getting the shaft. I SO appreciate this approach!

[@KevinHunter]

Glad we could help!

[@dave3657]

Twice I have financed a vehicle when I didn’t need to. The first time I bought the vehicle without a trade in and financed it. Before the payment book arrived I sold my old car privately, and I paid it off in two payments. The second time I had pre-approval from my Credit Union. So once again I purchased the car with payments and paid it off on the first payment. Then I paid my CU off early to boot. Although I did buy a vehicle and the dealer who found me a better rate at a CU better than mine, so I took it.

[@JackbenimbleJackbequick-dc9lj]

Wouldn’t it be a better world if we all just did the right thing and not try and choke each other to the point where everyone loses in the long run

[@Kenneth_R]

Dealers have to be furious at you guys for posting videos like this. How are you going to buy a car now after you are celebrities pretty much? You are doing a great service to us consumers! Thanks!

[@KevinHunter]

I'm sure there was a lot of "You gotta be kidding me!" conversations going on in dealerships out there..

[@pidpot]

Great video, thanks for all you do. On an Experian Nov2021 article about prepayment, I just read: “Prepayment Penalties for Other Loans Thirty-six states and Washington, D.C., let auto lenders charge prepayment penalties for loans with terms of 60 months or less. Lenders are prohibited by law from charging a prepayment penalty for an auto loan of 61 months or longer.” If thats true, an option for those faced with an early payment penalty contract could be to negotiate for a longer (than 60month) loan.

[@KevinHunter]

Yes. Great point!

[@KevinHunter]

We have verified this point as being correct! Thanks for bringing it to our attention! Lenders are prohibited by law from charging a prepayment penalty for an auto loan of 61 months or longer.

[@bryanburgess6478]

When I buy a new car, I'm going to be a cash buyer so this video is extremely helpful!

[@BradKwfc]

This is EXACTLY what I was looking for. If I'm understanding correctly, the dealer will lower the price because they can make up for it by upping the rate. So if I want a lower price my best bet it to finance through them, ignore the interest and just work on getting a good OTD price while eliminating added fees. This way they think they made a good deal then you eliminate all that interest by paying it off.

[@KevinHunter]

Yes!

[@speedfreak9342]

@@KevinHunterif I pay off the loan in the beginning, will I have to pay the full interest amount for the term of the loan?

[@skimanfree1073]

@@speedfreak9342 No

[@habbadabbado5765]

@@speedfreak9342check to see if there is a prepayment penalty. There is interest that accrues daily, which you’ll have to pay.

[@NateClay]

I think this information is super useful and awesome.... I'm a little puzzled with the production quality of these videos though, in 2023.

[@steveblake4187]

Excellent advice. If you have a loan approved at you credit union, you can say with a straight face "I am going to finance it".

[@davepetro5676]

Always pay cash like I do. Always buy below your means.. So I just buy usedNot new I bought new 1 time never do it again. I buy used now a used car of van or trucks I save so much money.

[@ourv9603]

What me & my Mrs have done for the last several cars is, finance thru the dealer, then a week later pay the loan off in full. Make sure the dealers financing does not have a early payoff penalty. !

[@michelegrunwald6073]

I financed a car through my bank, got it for many thousands less, then paid it off the first month no penalties.

[@KevinHunter]

Well done!

[@Retiredtraveler1961]

I’m a very shrewd negotiator and a savvy buyer. I bought six or seven new cars never used. I hear what you’re saying about their loan package. Would there be anything wrong with last minute saying well I actually have my own credit approval through the bank, who’s going to finance this? Last time I bought my Lexus it was no thank you no thank you no thank you. No thank you over and over again.😊

[@dwdwone]

I'm seeing a couple of potential pitfalls. 1. About 6 years ago I did something similar. The bank made it extremely difficult for me to pay off the car a few days later, even though there was no prepayment penalty on the note. It took over three weeks to get them to accept the payment and then apply it. And since they weren't a local bank, I couldn't just walk in. 2. After getting pre-approved, the dealer did a hard pull and I would have ended up with two hard inquiries. But instead the dealer ran it through like 10 banks. This ended up knocking down my score. I felt like this was a tactic to prevent me from applying somewhere else. They also offered me a worse rate which I suspect was a result of their multiple inquiries.

[@KevinHunter]

FICO consolidates inquiries to one after you make a purchase.

[@dwdwone]

@@KevinHunter But does the credit bureau?

[@neonnoir9692]

Yes, all pulls within a 45-day period are lumped together as 1.

[@davidleonard6021]

What a bunch of bull crap, like the dealer hasn't seen this weak plan 1000 times!

[@markjones5860]

The last time I filled out a loan application from the dealer , and we collectively agreed that I would do better at my credit union, they processed the loan application as soon as I left the lot. DO NOT SIGN IT.

[@sdpumas619]

Used pretty much this technique back in 2017 when I bought my truck. At the finance office, after rejecting all the add-ons, I pulled out the check for the full amount. The finance guy did a complete 180, oh was he pissed. Got a great deal on the truck. Ended up paying only around $100 in intrest in 6 months using a home equity loan.

[@crimestoppers1877]

I tried a different "trick" and they accepted it and tried to back out. We got the price down to the original MSRP with zero dealer addons. Whew! I gave the fast talking car salesman ( con artist) some of his own medicine. I asked him a series of stupid questions that can only be answered with a "Yes". Example: Can I buy THIS car today? YES Can I drive it home today? YES You agree the OUT The Door Price is $ XYZ as written here with no addons or oher charges? YES ! Do you agree to buy me and my wife dinner and drinks at the at XYZ Bistro tonight so we can all celebrate that I bought his car now? "Yes, of course what ever you want on the menu is paid for". Can I pay with my Credit card? and I smiled and he said YES again. Me: DEAL! Here is my credit card lets go write it up? followed quickly with AND ....Can you make dinner reservations tonight at XYZ Bistro? Yes ha ha ha . It is a 5% cash back credit card and he choked! The F&I crook allowed me to pay the first $5k on the car and the rest with a bank cashier check giving me back $250 from my bank! I really wanted that cash back on $30k = $1,500 + we ordered the Biggest Ribeye steaks on the menu + a bottle of Dom Perignon. We will take Doordash if you don't want to eat with us. Con Vs Con Vs Con like Mad magazine Spy vs Spy vs SPY.

[@drew6116]

Things haven't changed in decades. It's critical that consumers are educated on how to save thousands (sometimes MANY thousands) by not just buying a car payment. Thanks to the internet and people like you, it's working. I spent a short stint selling new Fords in the the late 70s and we always loved it when someone financed. The commission was lovely even if our commission on the car itself was sometimes nominal.

[@davenone7312]

As of late dealers here in California have been asking AND GETTING $5-$12 grand over factory invoice!! So you can't really bargain much as they will just show you the door and say "NEXT" to the line of buyers outside their office door! Good luck with that!

[@jamesarendale6607]

Started watching your videos. Found a car. Got down to the nitty gritty. Looking at the deal. I saw a charge for 1198 dollars. I said what's that. Windshield wipers and oil change. Lol. Of course I had that removed. I even asked the sales guy when we were test driving what was going to be added to the price we had negotiated he said tax was all Lol. Thanks

[@jopaum7546]

Seems like it would be a good idea to find where in the contract that there is no early pay-off penalty.

[@1VaDude]

Excellent advice! When I paid cash for a car a few years back, I wish I had known about this strategy. I got a good deal, but should have gotten a great one.

[@rafaelhernandez4766]

I've gotten great deals by negotiating with the dealer on the out the door price I am willing to pay for a vehicle which includes taxes, fee, etc. I always check the contract in the finance office to ensure my out the door price doesn't change to anything other than what I am willing to pay. You guys are awesome for teaching the average consumer how to protect themselves from these greedy dealerships

[@irongoose3865]

Yeah they can play around with the numbers and call them anything they like but the bottom line is $18,000 out the door is $18,000. If they want to charge you a $3000.00 dealer profit fee as long as it's within that $18,000 out the door price who cares?

[@marckrol8581]

This is a great video! I think this is a much better way to negotiate than the original video Elizabeth did a few months ago. This is much less confrontational. My only question is, if you plan all along to finance your purchase through a credit union , let the dealer set up financing, and pay it off on the first payment, won't you be paying a lot of interest in that first payment before your credit union loan kicks in?

[@ronj9124]

You would likely be paying a few days of interest. One way to minimize that is to put down a larger downpayment as well. I am guessing that the interest would stay below $100, or even $50.

[@seand99x]

Great idea & video guys however The one problem that I have had with that strategy is that I then have had to go back and deal with the bank who originated the loan and follow up with usually a few times to have them send a lien release & then I need to go to my state and get a new title.

[@blackhillsrider2626]

OK question! I know exactly what car I want. The model, make, and package. I have checked numerous car buying sites and have a good idea what that car should sell for. I have an 840 FICO score and have been pre-approved for a loan from my CU. Knowing all this why can't I go into a dealer and ask what is your out the door price? If they don't come close to my number, I can just leave. What's wrong with this model of purchase? Why do all the song and dance? I know what I want, how much it should sell for and I have the money? Where am I wrong?

[@SODAKFORD]

Pro tip: if you really have to pay cash Or don’t want extras at the dealership tip the finance manager a $50 bill and say get me out of here as fast as you can. I don’t need any extra stuff. You will have your title work done in no time flat. The finance office takes the most heat from the general manager or owner if you don’t buy a warranty or finance. They are just doing their job.

[@paulsanpedro6707]

This is perfect. I will for sure use this strategy when I purchase the car in May or June. Thanks, Kevin and Liz.

[@KevinHunter]

Our pleasure! Thanks for watching!

[@vegasprogambler5336]

own businesses. bought most of my cars this way. saved me tens of thousands.

[@LindaLovesLofts]

Sounds like great idea if you have the time to sit through the finance office, get your credit run, etc, etc. But to me time is money, I just prefer to get to negotiate the price up front out the door. If it doesn't meet what Im willing to pay, I just walk. You can do this over the phone so you don't need to walk into a dealorship and avoid bait and switch later when you talk to the Fleet Manager.

[@jeffrey3498]

The OTD price worked for me. They agreed to my price ($100 under MSRP for a Subaru Crosstrek during the car shortage) so I went to the bank and got a cashiers check. No add on just a $300 shipping fee from the dealer a few hundred miles away and a document fee (which I didn’t bother haggling). 2023 Subaru Crosstrek Premium 6MT, $26,145 OTD, brand new. I paid taxes and registration in a different state.

[@cwhouser]

Great information and tips. Something people should be aware of though is this works best on new or late model vehicles (5 is years old or newer). If a car is 10 years old and/or 100k+ miles, bank programs are often limited in what they can offer. Plus, older vehicles are typically cheaper, therefore reducing amount financed and that means a lower reserve for the dealer. Also, older, higher mile vehicles are limited in bank programs on what after market products can be added because of LTV limitations. Because of this, cash is still king on negotiating vehicles that have limited to no financing options.

[@erivera9313]

I played this game in 2005 when a sales manager told me "You can get a better price at a higher interest rate or a lower interest rate at a higher vehicle price". I too the higher APR and refinanced one month later. Screwed the dealership over big time.

[@ME-kb8qg]

Negotiation days are over. I went to 4 different dealerships and non of them budged. There’s a car shortage and so unfortunately they have the upper hand

[@shaunbava1801]

There is no shortage at this point, it's all being manipulated(automakers are sitting on the inventory and not delivering to their dealers, banks are sitting on repo cars, etc) and the buyers are falling off due to lack of affordability at high rates. At some point the flood gates will open and we will be awash with inventory.

[@ME-kb8qg]

@@shaunbava1801 until then the best thing to do is to manufacture order you car or truck to avoid the markups. I did that and paid sticker price for my truck. Sure I had to wait 6 months for delivery but it saved me $10k in markups

[@daisywilson8867]

@@shaunbava1801happening right now !!!

[@alanswanson5642]

The one problem with this strategy is as soon as you state loan they start talking payments only and not price

[@retiredleo3679]

If you intend to finance the vehicle at another institution, what's the downside to staying with the dealers bank? Some new car manufacturers are offering 0% interest.

[@michaelheffernan3753]

I’ve been buying new cars off the lot for over 50 years but I doubt if I will ever buy another new car from these greedy dealers and manufacturers again!

[@MikeHudson-px2gc]

It's a buyers market. On a truck or SUV offer them 70% of the invoice price without mark-ups, leave your name and number, then go home. They will call as they are still making a good profit.

[@ourv9603]

Its a shame buyers have to play a game at all. Ford is so pissed at their dealers they have put ALL electrics online fixed price purchasing & they are thinking about doing the same for all their vehicles. !

[@blessings6595]

In 2019 I bought an SUV from a small dealership. I had 3 to choose from the owner had no problem paying with a cashiers check. Now we are in 2023 and it’s a nightmare dealing with these car dealers that it feels like the home market it is crazy. 1 dealer had assesories add on when asked if it was optional I was told NO. He he was a new salesman and whispered to me. “Help me out”. I got up and told him thank you and he told his supervisor that I will be back. This past weekend at another dealership I test drove a car and the sales manager left to his back office that he need to call “corporate “ about the deal and had us waiting for 30mins in the lobby with no interest to offer the vehicle because I’m financing through my credit union. I tried a private seller paying cash and pulled out of deal. My last option is going to auction sales purchasing salvage vehicles. I’m so frustrating with this process. I would like to sell my vehicle but can’t until I can purchase one first.

[@KevinHunter]

There's no doubt that it can be rough out there. Dealers have been playing games with their customers for decades. It's something that is is very difficult for them to stop. Think of it similar to a drug addict. They may miss on one opportunity with a savvy car buyer, but be right back at it with the next opportunity.

[@justlostintime]

We went to a Toyota dealer to buy a Toyota Prius Prime. We were stupid and said we would pay cash although we did get them down by $1000.... But the dealer tried to take us in a sneaky way. We said we would write a check for the full amount. They then told us since we would pay with a check, they needed a backup finance in case the check failed. It was 2500 to buy the loan and a monthly payment. They told us the amount of the check needed to pay off the amount needed for the car and we wrote the amount onto the check ...... But how they tried to take us is they did not include the 500 registration fee for the car that they rolled into 'Backup' loan(they told us the loan would not go through if the check paid the complete amount owed) . We noticed when we got home and called and paid it with a credit card. But for sure they would have taken the 2500 and started the loan..... We did some research and saw they had perhaps had a habit of done this ... man talk about sketchy practices. And this was the dealer.

[@genocidelves]

Refinancing or paying off a loan isn't some sneaky trick. That was always allowed...

[@mannyk1986]

I was told that a good negotiating tactic is to ask the dealer what is the best price they are willing to give if you decides to finance and how for how long before paying it off. Sounds like your way is to suggest to the dealer that you'll keep the financing for 6 months, when in fact, you plan to pay it off immediately.

[@firstlast1732]

The problem is in your scenario the The finance manager ends that he doesn't say anything to your comments in the real world that's not how it goes they argue with you they try to persuade you unfortunately the way you make it is not that easy they don't just sit there and say nothing to your responses

[@georgedailey5596]

Or. . .you could buy a Tesla and avoid the stealership altogether. I have to say, your plan is amazing. Thank you for sharing it. If I'm forced into a stealership scenario, I'm using it. Too bad all non EV cars have to go through stealerships.

[@BigEvan96]

Your EV will cause you just as. Much frustration as a gas car.

[@johnf8877]

The video is about real cars not toys that can’t escape an oncoming hurricane.

[@michaeldaltonsr8954]

I tried to buy ONE new car, in my life!!!(I was @ a good financial point, ONCE!!) It ended w/helluva lotta "mistakes" being removed/ payments being upped $200+/mo/me walking out door!! Ended by salesman chasing me, jumping through window/grabbing onto me/ me dragging salesman X lot, AND, when I reached street, I had to pull weapon on salesman, to get him to release me, before I drug him onto highway in path of moving vehicles!! It was talk of town for months!!( salesman eventually became Sales Manager!! Then Dealership closed 6mo later. Left no forwarding address)

[@largelarry2126]

In 2022 a Nissan dealer in Bloomington, Indiana told us that if we didn't finance with them they wouldn't sell us a car, any car. This is after we drove down from Indy two days in row trying to buy a used 2022 Armada. It was lie after lie and they worked hard to wast or time. Save yourself a bunch of grief and only buy like new used cars from privet owners. To prove my point, months ago we bought a like new, one owner, 2010 Mercury Grand Marques with only 23,500 miles that has been indoors from day one. We also bought a 200 series Land Cruiser that is absolutely beautiful after our failed attempt at the Armada last year. Skip the car dealers and do yourself a favor.

[@JohnnyRay920]

Sometimes they will have really good interest rates, even 0% , so why wouldn't you want to take advantage of that?

[@jefffreestone8476]

This is exactly what I two years ago, it worked out great! Everything they said was spot on and it was fun too. I got a very clean car deal and they easily dropped all the junk ads ons because I used their bank. I had it paid off with my credit union loan before the first payment. I’m guessing the sales staff never knew the difference. Total time spent was less than an hour in process and very covenant because I did not give them dime that day and just walked out with the keys. It went easy because we were preparing for two years on what to buy and spend. My transmission went out on a Thursday night and wife had her dream used Lexus at 10 the next day.

[@ricomajestic]

Can you talk about precomputed interest loans and how to determine if you are being offered such a loan? What are the things to watch out for? In a precomputed interest loan there are no benefits to paying off the loan early. Because interest is worked into the cost of your loan, paying it off early won’t reduce the amount you owe.

[@bluangl9wingman]

This is such valuable info! I am contemplating buying a new car. I watched some of your previous videos today as well. I am excited to try these tips out soon 👍

[@KevinHunter]

Welcome aboard!

[@elliott3991]

People keep saying ftc. but don't forget to check your state laws that often seem to already do that.

[@nello8630]

In 2005 I bought a 2003 accord from a Toyota dealership and financed through them only after they agreed to my price. I had already gotten approved for 4.7 percent from my credit union, the dealership offered me 6.9 percent. That was Friday afternoon, Monday I took the loan to my credit union and put down $5000. Always check with your credit union because they are not in the car business so if the car is not worth what it is being sold for they won't finance it.

[@jmbfinesse8223]

Man I’m so glad I’m doin all this research before buying a new car man I love YT

[@KevinHunter]

Thanks for joining us!

[@LukeO-1234]

My grandparents live in the old times. They say that telling the dealer you're paying cash is the best because they get their money right away and don't have to worry about if you're approved. I have to break it to them with your videos lol.

[@TheBerkeleyBeauty]

Old habits die hard with most of us. I hope you got through to them with the THG videos, and maybe you’ll even go with them the next time they decide to purchase a car, just to make sure. Gotta look out for GiGi and PawPaw

[@just_jake6050]

Yes, see that a lot actually. Typically older folk or even some younger ones going by their elders advise that cash is king. Hey, it's no secret dealers make a little money when arraigning financing thru one of their lenders. But honestly, it's not all that much and I have no problem telling a customer that we lose money on cash / outside financing sales. Key is to be upfront, honest and transparent with your customers.

[@weekendhero7411]

I was waiting for the part when you write a check in the financing office. Haha. Got me.

[@KevinHunter]

Lol... not for this time!

[@josephkelleher8820]

Even if you have the cash to pay for a new car it's best right now not to buy ANY car right now because they are way over priced. It;s better to fix up your present car in my opinion. It's going to be a lot better than paying thousands of dollars in buying a new car that will rapidly depreciate especially in the first few years.

[@markrichardson9999]

Just watched a few of your videos. But this one, wow! This is brilliant. But I have a. question. Example - a car listed for $14,999 at a dealer came out with a KIBB cash value of $9,582. Crazy? So are you guys saying that you can walk into a dealership negotiating for this price along with standard tax, registration, state dealer fee, and nothing else? Why would they not tell me, they refuse to sell it for that, because they can get what they want from all other buyers? Seems like a logical dealer response.

[@davidheuser2119]

we are going to try this method this week, I will follow up on how it goes.

[@richardyates1033]

You need to mention how to work a trade-in into this scenario.

[@nonamem5213]

I would finish the deal with the salesman, shake on that, but before going to finance office say by the way how much would you offer $ for buying my vehicle. Already know the bluebook value and what you could likely get from Craigslist for it. Just be prepared to not trade it in. You don't want to introduce a possible trade in before the original deal is done because they can then do all kinds of manipulations to make you think youre getting more $ for the car than you really are.

[@kushkingla7385]

Private sale the car. You’ll get more out of it.

[@johnqcitizen9177]

When was the last time “Elizabeth” purchased a new vehicle ??

[@user-jr1cs6ob3m]

Just don't take your car back to that dealer for service or warranty claims.

[@timberwolf7341]

What if you don't want them to pull your credit report? As in, there is nothing there because you've been buying with cash for 20+ years?

[@johndrake3472]

Exactly what I do - It works very well

[@8383kathy]

Well this explains the H-ll I have been going through. Went to 3 different dealers. Single 55 year old female been buying cars 🚗 for 18 years. When I tell them I have secured financing through my credit union I am lucky if the dealer knocks off $500-436.00 dollars off of a new 29k suv. 😢. Feeling frustrated

[@KevinHunter]

Yes you're playing the game wrong.

[@8383kathy]

@@KevinHunter I see that. Thanks for the clarification

[@chrismaddox15]

Really great advice. Thanks. One of your best guys and gals.

[@TheRealJonsMind]

Y'all should make a guide like this for canadian cash buyer. Be extremally helpful!

[@Flash023]

I need you two! Thanks for posting this

[@dwnmddl]

I need a new farm truck. Ya’all have saved me some money. Thanks for your channel.