CASH CAR BUYERS Beat Dealers At Their Own Game In 2025 - 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!

[@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.

[@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!

[@Jonny.Mac.411]

Yes, I agree with you car dealerships are the definition of corruption and just awful places.. You are delusional to think that they are going anywhere any time soon.. Your hope is in vain and not based on reality unfortunately… Also, most people if any aren’t going to go on a 19yr no new car 🪧 because they hate dealerships man.. It’s just unrealistic and has many other factors and you know it..

[@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?

[@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

[@wisenber]

I have a pretty low credit score due to not having any debt for a couple of decades. Both of my houses and all of my cars never had a loan. I haven't had a credit card in years. About all that shows are my utility bills. I get them excited by thinking I can't possibly qualify anywhere, work out the the best price, make sure there's no pre-payment penalty, sign a deal with horrible rates but no addons.....then pay it off the next month.

[@raypalermo1603]

How big is the finance charge for paying off early?.

[@wisenber]

@@raypalermo1603 I did say "make sure there's no prepayment penalty". If you do that, you pay one months worth of interest when you pay it off.

[@janicemajor]

​@@raypalermo1603Don't pay one!!!!

[@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.

[@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.

[@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.

[@drhuby6292]

About 4 years ago when I bought a 1 yr old used car, the sales guy came right out and told me to finance a portion to get the $2k savings and told me to then pay it off within 7 days to avoid any interest/fees. I admit though, that I wasn't so savvy about looking for added fees, I wasn't familiar with this channel yet! So I probably paid more than I should have anyway. But I sold that car last year for several thousand more than I paid 3 years earlier. After backing out my cost of gas, insurance, and registration for those 3 years, it was basically a wash. I consider that a win.

[@shawnmason8543]

I have talked to tons of dealers while I am looking for a Toyota Tacoma that I want to pay for with cash. Wow I have been shocked at how I have been lied to. These videos have been great! I had a guy tell me just this weekend that his doc fee was so high because “Doc fees cover the cost of getting a vehicular ready to sell. Like new break pads, cleaning, etc…” I just laughed out loud. He was disturbed by that. 😂😂 Then I googled Doc fee and read it to him. He was very embarrassed. I told him that I don’t like dealing with dealers that lie to their customers, so I marked them off my list.

[@leonardyoung6821]

Some salespeople are not lying. They just are not professionally trained. They think they know something, because they heard (or thought they heard) a more experienced salesperson tell that to a customer. Most dealerships invest little time or money in actually training their salespeople.

[@robertboudrie2234]

My reply is "Your expecting me to believe that tells me one of two things - either you are stupid or you think I am stupid, and I don't think you are stupid". I was told it costs $500 to maintain the paper records for 7 years.

[@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.

[@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.

[@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.

[@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.

[@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.

[@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.

[@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$$.

[@donhebel1011]

Yikes! That's crazy stuff.

[@beltycat5490]

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

[@-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.

[@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..

[@JA-gx4hb]

Maybe dealers will just learn to get an educated buyer out the door quickly so they have more time to screw somebody else.

[@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!!!

[@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.

[@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

[@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.

[@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.

[@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.

[@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.

[@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.

[@Jayone180]

In 2003 I was buying a Jeep and they had offers of 0% financing or a rebate. The finance mgr ran the numbers both ways to see which deal was better without me asking him to. The rebate was the better offer and Jeep gave an additional rebate if you financed with them. I financed with Jeep to get the rebate and the finance mgr suggested I go to a local bank and refinance to a better rate after the deal was done. I never bought another Jeep but was impressed the finance mgr was trying to get me the best deal. Dealer was Kimberly Jeep in Davenport, IA.

[@KevinHunter]

Pretty amazing. Not your typical finance officer!

[@AshleyOlson1111]

If you refinance after the deal is done, wouldn’t that be at a used car rate instead of a new car rate?

[@rasheemthebestfirstone3274]

@@AshleyOlson1111what

[@plantbasedtheo]

@@AshleyOlson1111 It may depend on how the bank defines "new car." In 2023, both my bank and CU offer "new car" rates as long as the vehicle is a 2021 or newer with less than 20K miles.

[@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.

[@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?

[@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.

[@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.😊

[@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".

[@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.

[@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

[@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!

[@bryanburgess6478]

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

[@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. !

[@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.

[@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!"

[@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.

[@AnalogWolf]

I don't think it's deceptive. The way I see it is "I was genuinely thinking of financing with you, but I changed my mind. Thanks for the opportunity though!" Or, you can just think of it as not letting people take advantage of you. In my 20s I had some guy on the phone acting super aggressive trying to get me to buy something from him and no matter how many times I said no or gave a reason, he had an answer ready. He would not get off the phone and I finally agreed because I wanted it to end. Thankfully I was able to cancel the charge later but when my dad found out he just said that these people take advantage of your kindness and if you tell them no say twice and it's obvious they are not going to take no for an answer just to hang up on them. He is very polite as well, but he doesn't suffer fools.

[@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.

[@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.

[@irongoose3865]

Seems to me this is the easiest way to get the best price on a vehicle rather then trying to trick the dealer into giving you a price in writing and then springing a cash payment on them at the last moment. See if they don't walk you out of the dealership after you do that to them or just flat out lie to your face and tell you they can't sell you the car at that price.

[@jopaum7546]

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

[@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.

[@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.

[@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.

[@vegasprogambler5336]

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

[@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.

[@ArtificiallySweet]

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

[@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.

[@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.

[@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!

[@dane1234abc1]

Even if I ask about no prepayment penalty and told "none," how do I check to ensure that a prepayment penalty isn't still somewhere in the fine print? Do I still need to read through several pages of fine print?

[@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!

[@ProfessorOzone]

Well. . . that didn't go as planned. I think this information is really good to have. Unfortunately it just didn't help me. Went into the dealership for a used car. It was $46k. I wanted to be under $40k. Yes, I realize that may be a long way to go from $46 on a used car (but not always, see below). I offered $34k. They rejected that verbally. So I came up to $36K. They gave me their offer in writing. It was $46k, plus $2k in dealer fees. I told them that I went up on my offer, but they didn't move at all. So the guy leaves and comes back with a new offer in writing. It was $46k plus $1.5k in fees. It never even got to financing. They wouldn't budge on anything and after some unproductive back and forth, I wound up walking out. I'm guessing they paid too much for the car, but honestly, why couldn't they just put $46k FIRM on the ads then? And FYI, I once test drove an Audi. They had it priced at $32k. It was the only car on their lot with a manual transmission, which I'm guessing made it hard to sell. My wife and I decided not to buy it so I returned it to the dealership. The next day I saw it advertised for $25k. So $7k drop. My point is, you don't really know how far off of the sticker price you can bargain until you try, right? Unfortunately, I'm still looking for the right car. Oh and one other thing. They had fees that were labeled, Taxable fees and Non-taxable fees. I was told one of them was mandatory.

[@KevinHunter]

Sorry to hear about your bad experience.

[@ProfessorOzone]

@@KevinHunter Yeah, me too. Really liked that car.

[@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!

[@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.

[@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.

[@MyFord77]

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.

[@MyFord77]

@@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 !!!

[@georgemartin1436]

EXACTLY. I let them think I'll be using their terrible garbage financing until the price is NAILED DOWN.

[@zzanatos2001]

I recently bought a used Toyota Rav4 XLE Hybrid with just 15,000 miles. Even with an 800+ credit score, the dealer wanted 12% interest. I told the dealer I could probably get a lot better rate through my credit union, called to get their rates and got instant approval for 4% for 36 months. I also used a down payment of 50%, so my payments are very reasonable.

[@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.

[@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.

[@thebeddoctor4273]

When i was is the car business i would give my absolute lowest price to those who financed because i could make money on the back end from the finance company and just tell the customer to immediately pay it off when the 1st payment is due. If you just paid cash you would not get the best price

[@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?

[@KenEDuke-y9p]

Yah - I do the same thing.

[@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?

[@johnqcitizen9177]

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

[@HALWG51]

I always take out a loan from the dealer and as soon as the first payment is due, I pay it off. Works for me. I have done this since 1973 when I bought my first new car.

[@KevinHunter]

Excellent!

[@GG-pr3yo]

I used this in 2012 to purchase a Silverado with Ally Bank. The dealer was almost frantic at the end that I don't pay off the loan before 6 months. They got 1 reg payment and then I paid it off entirely (at the dealership finance office). I saved myself $2500 more by financing with the dealer - sucked up a little interest, but came out way ahead overall.

[@KevinHunter]

Way to go! We love hearing stories like that. Thanks for sharing.

[@alanswanson5642]

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

[@crlaw75]

The vehicle I have now, I paid cash and the dealership I dealt with had no problem with it. Originally, they wanted me to do the financing stuff, but I held my ground and said I didn't want to do that and pay cash right on the spot.

[@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.

[@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.

[@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.

[@repetiveredundancy]

Thanks!

[@KevinHunter]

Thank you! Much appreciated!

[@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.

[@genocidelves]

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

[@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.

[@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.

[@MarlinMoore-s3c]

Like your channel. Please comment on the pre-priced process with TrueCar. I used this in the last two purchases and it eliminated a lot of the games dealers play. Also, I went both times with a competitive pre-approved loan from my bank. In one case the FO asked about a loan. I stated that if you can at least match mine with all the same fine print, I would go with theirs, because I knew it got them a commission. Sure enough, took their loan and paid it off about a year later. For the second car, same story. Went with my loan to the FO. Then, he said the manufacturer was offering zero percent. I was suspicious and pored over the paperwork. I’m now two years into this loan and am enjoying watching inflation eat away the value of my principal payments each month. Pretty sure the dealer got a commission from the manufacturer, so that was a win-win! Bottom Line-I know how to be a pit Bull, and I was, but, sometimes “playing nice” and helping the dealer as a part of a good deal can be beneficial! Besides, you may be relying on them for warranty service. No need to make enemies unnecessarily!

[@KevinHunter]

I'm responding to your comment about "making enemies." You could buy the entire sales staff dinner when you go to buy, and nobody would know you the next day. Most dealers are a transactional based business, not relational. They only want your money, they don't want a relationship with you. Also, service rarely if ever talks to sales. Quite often the two departments hate each other. No matter what you do or say on your purchase visit, there's no worry of them ever seeking revenge in the service department.

[@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!

[@davidheuser2119]

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

[@declanmellett7826]

Good morning, great video! How do I know for sure there is no early pay off penalty? Can I take the dealer’s word or should I get it in writing? Thanks Declan

[@KevinHunter]

If the loan term is more than 61 months, a prepayment penalty isn't legal.

[@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!

[@SusanScrapPassion]

What if you simply don’t want to get involved in credit applications? Is there a way to do this without going through this extra step and get a good result?

[@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.

[@dwnmddl]

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

[@dajo4349]

I think you've mentioned that in the finance office, if you want to adjust the sale price, go back and talk to the salesman. Is that ever true? Thanks.

[@Subjectiveopinion.]

Also make sure they have adequate ink in the printers a lot of these buy here pay here be printing up illegible paperwork from ink being faded in case you do read the fine print.

[@KevinHunter]

We're not suggesting that you do this at a buy here pay here lot. You should avoid those dealers entirely.

[@neonnoir9692]

That's the least of their shady tactics. The odds of getting a car with rolled back or paused mileage from a place like that go up exponentially. Avoid at all costs.

[@Subjectiveopinion.]

@@KevinHunter i agree with you kev. I’m just throwing it out there from experience. I sued I buy here pay here in 2015 for 09 maxima I bought that I couldn’t get a title too because it had a lien on it already prior to me buying it. After 6 months and major mechanical problems needless to say I had exhibit A through O in evidence to get my money back and force them to buy back the car. Some shady azz Arab. After that experience I don’t do business with them people no more. Ps always upload your contracts because it’s too many businesses using disappearing ink.

[@glabutis]

I recently went to a dealership looking for certified used car. They told me that if I finance through them I could not pay it off or refinance for at least four months. Can they legally make you stay with them for four months? Also, what if I wanted to pay cash and didn’t want to take out the loan and pay it off how would you go about doing that at the end with a finance manager? I don’t want another ticket on my credit. Thank you

[@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)

[@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.

[@neonnoir9692]

Some dealers are catching on and making their offered price contingent on using in-house financing. Can easily work around that, but just something to be aware of.

[@KevinHunter]

Let them think they've won, and then do as you wish after the fact. That's the point.