How Car Dealerships Rip You Off (The Truth) FACT CHECKED 2021

[@briangriffith4574]

Hey man I just picked up a 2012 toyota highlander from a dealership and paid cash. Your videos helped me quite a bit and I ended up getting a pretty good deal I was very happy with. Thank you!

[@notwaitingtolive]

Happy to help. Thank you for taking the time to follow up and leave feedback. That means a lot to me.

[@Ron-cz8bt]

What a pleasant surprise to see this 'reaction' video. My viewing and learning experience here was doubled. Thank goodness I'd watched Marco's video a few days back, prior to seeing Manny's input. This guy Marco, I believe, gives some good insight, for sure. But, I'm grateful that Manny chose to give 'alternative' advice in regards to what Marco posted. Bravo! Thanks as always, for the free advice/content Manny!

[@mrallan8063]

This video has some very complex concepts, which is difficult for the typical person to digest. The car dealer is making money off three of the four squares, so they are maximizing their position based on the how the buyer is responding (price, trade, financing). Plus, they are also getting some of the cars they sell feeding into their service dept as new customers. I would agree the worst thing thing is buying the wrong car.

[@Ron-cz8bt]

Okay, class is in session, I've got pen/paper, ready to learn! Thanks Manny!

[@Ron-cz8bt]

Off the top of my head, years back I was considering buying from CarmXX. They push no haggle, no pressure, blah blah. Okay, so they don't negotiate, good for them, but not always for us! But, because I have to if I want this particular car, I agree on price. This is all done in front of their computer, as many of you probably know. So, he's asking all the questions that I don't have a choice in and ones that I have a choice in. One in particular, did I want a warranty. Nope. He reassures that they get no profit...they don't care if you agree to one or not, blah blah. My reply, thanks for sharing ...no. So, we move on, finish the computer questions. Waiting for the actual document to print (about 30mins), it's time to sit down and sign the document according to what I'd answered while sitting at the computer. I scan every line, almost feeling confident that CarmXX doesn't screw us over but come to a halt at one line. 'Uh, what's this charge for?'...The extended warranty, the 'sales' guy says. I wasn't instantly pissed. It's when I reminded him that not less than 30 mins ago, we talked about me being adamant that I didn't want a warranty, and when he instantly became agitated and asked, "You mean to tell me, that you're NOT gonna get an extended warranty? You''re buying a valuable yadda-yadda car. You'd be foolish NOT to get a warranty." ..was when I became agitated and put him in check. I asked and rec'd the physical paperwork from the gal who was printing and putting them in front of me to sign, torn it up and took it with me when I left.

[@MT-xl8jy]

bought a classic corvette, 75 convertible, last year for convertibles until 84, so just a little classic, lol. paid retail but then finance got me by selling me on credit life. holy crap! you know the line well chip you dont want someone else responsible for your debt if you die right. expensive lesson

[@puravida5683]

I love the way the so called expert Talking Heads contradict each other in the U.S.! I live in Central America, everyone buying a particular car, pays the same price and no negotiation, and no dealer BS.

[@notwaitingtolive]

Interesting. What do you think is responsible for that difference?

[@RockNey82]

I was charged for equipped items on my car when it was a basic model ... didn’t know til my car was totaled and my financial institution gave me all the paper work and asked if my car was equipped with all the items on the list . I took that list to the dealership and they refunded me ASAP cause they knew it was about to get ugly.

[@notwaitingtolive]

Wow. That is unforgivable. What dealership did that?

[@RockNey82]

not waiting to live Santa Maria Nissan In California.

[@notwaitingtolive]

RockNey82 good to know. Thanks for sharing. I just read through a number of their 1 star reviews on google.

[@RockNey82]

not waiting to live always thanks for all your knowledge given in your videos. I will be using them when I purchase a new vehicle . Keep it up.

[@adriandenson8855]

Well done videos , and the biggest scam I’ve seen is where they make you use their “ in house” title agency 199 for a title fee. Which is obv. Much higher than what the state ( FL ) charges.

[@notwaitingtolive]

That’s a useful one to point out. Juiced up document fees can hundreds to the total cost of the car without even noticing. One way to challenge this is to find out the actual state cost by calling the DMV/BMV in advance. Then tell the dealer you’ll just register the vehicle yourself at the state rate to avoid their document fee. The dealer may or may not comply, but they will at least consider lowering the price closer to what the state charges.

[@MT-xl8jy]

hi Manny, k so went to blackbook but was informed that they do not deal with private individuals just businesses , banks credit unions dealers. now what?

[@johnlacroix1639]

Very kool info. TY Sir

[@notwaitingtolive]

You're welcome. I appreciate the feedback.

[@mrallan8063]

While this isn't a ripoff, one thing I find annoying is how they always say I got a great deal at the end. I've been told this was the best deal he's ever seen, to I can't believe you got that deal. Yes, I know it flattery, but its fake. I actually feel the more flattery they use, the worse deal I actually got. You might want to do a video on sales coaching. I did find it interesting how your sales mgr knew the right words to say to close the deal. I'm also interested in understanding why they seem to always bring in a second guy when negotiating a deal (more experienced in closing, good guy/better guy, or just to wear you down).

[@themadnomad5361]

Hi I am living in my Car right now and just got out of debt, my FICO score is 760 and I want to buy a Van, my take home pay is $1800.00 a Month, I cannot decide on what to buy, new or used, a Ford or Chevy, I am thinking that buying at the end of the Year and hope to have around $4000.00 for a down payment, do you have any advice for me? Thanks. Mike

[@notwaitingtolive]

Congrats. Getting out of debt is a big deal! I think any good answer to this question in going to focus on what you want to do. So what do you want to do? What is the van helping you accomplish? My answer will depend on that. In general I have a video on my channel which explains how much you can afford to pay for a vehicle based on income: kzbin.info/www/bejne/d4WWoKRrmMeglZI According to the 20/4/10 rule based on your income your total budget will be ~$14,000-$16,000 (including $4,000 down, making ~$230-$280/month payments over 4 years). This puts you squarely in the used van market. Or even the very nice fairly recent Coachmen trailer market. I have a 2017 Ford Transit van that I love. Even though my original plan was to live in it (until I met my fiance who will not live in a van), I still use the van often for renovating homes. I sold Mercedes Sprinter vans, and still preferred my Ford. I even said as much at a corporate training once which really challenged the instructors who probably never had a student who simultaneously owned a new Ford Transit. If you're looking at Chevy too I'm assuming you're looking at express vans and maybe even transit connects? There are plenty of routes to go with your budget, and even more if you want to stretch your budget to get into a newer or larger van. Let me know what you're thinking and I'll follow up. -Manny

[@themadnomad5361]

@@notwaitingtolive Hi I am going to live in the Van, I have seen your Video on how much to spend on a Vehicle but since I will be living in it and not having to pay for rent I figured that paying more for the Van would be better, I also would be going into off Road locations to camp something I cannot do right now because my Car is to low to the Ground, I have tried with bad consequences to the Car and my Wallet. I know I need a reliable Van if I am going into places that are off Road where I might not have Cell coverage to be able to call for help, I have been watching eBay for a while now and like what I see for around 20K, the economy has me worried that things might fall apart before I save enough Money and I am ready to purchase a Van, I am retired so hopefully I don’t have to worry about my income going away, Thanks. Mike

[@notwaitingtolive]

THEMADNOMAD combining the value of your rent and car payment significantly increases your budget for a monthly payment by a factor of 3-4x. The rule of thumb I commonly see is limiting rent to 30% of your gross income. You could reasonably afford monthly payments up to $800-$900/month (including the cost of improvements) which could get you a van project cost $40-60k. I spent ~$2,500 to add a propane tank, gas heater, and gas stove to my van. There are cheaper solutions nowadays. Solar was $1/watt (480W on my roof) but the inverter I bought was over $1,000 so I could run high current for things like a portable air conditioner that people normally use in their home. My van is RWD. I’ve driven in some heavy snow. It’s been fine on the highway but the biggest trouble I have is on side roads starting from a dead stop in a few plus inches of snow and going uphill with some scary drifting. This is nothing new with RWD just something that I feel is less than ideal. I would not consider my van off-road capable in any remote locations. I’d recommend looking at 4WD vans if you’re considering the backcountry at all. It really opens up your options, especially BLM land. 4WD can add $4-6k to the price of the van. But there are more and more options now as the Mercedes have been 4WD for several years.

[@themadnomad5361]

@@notwaitingtolive Thank you for returning my email and for your advice, I seen your Video on how you would do the negotiations for a price and I will contact you again before I make a purchase to see if you can help. Thanks again. Mike

[@notwaitingtolive]

THEMADNOMAD you’re welcome. Reach out again and I’ll help if I can.

[@oilburner225]

Somebody needs to tell this fella his hat is on the wrong way round..... lol!

[@notwaitingtolive]

You are right. I wear this hat almost every day straight forward, but the shadows cover my face for the camera so backwards is the compromise...

[@biancam8653]

Hello. I’m interested in a 2019 Lexus ES. Sales price 30,788 that’s with a listed “dealer discount” of 9,207. Miles are 24,530. I watched some of your other videos on like paying cash. And I would be paying cash. Can I get a lower price for this vehicle? If so. How much lower do you think I can get?

[@notwaitingtolive]

The lowest recent comp sales I see for a Lexus 2019 ES are $30,997 w/ 13,000 miles (Midwest) and $31,587 w/ 21,000 miles (NY and LA). I'd say the price you're currently quoted is near the very bottom end of prices. Your best bet for a lower price might be to make an in person ready to buy right now offer of $30,000 and be willing to walk away. They may not accept, but presence is buyer leverage.

[@biancam8653]

not waiting to live thank you very much for replying. I appreciate it. Love you videos 👍

[@notwaitingtolive]

You’re welcome. And thank you. I appreciate your support.

[@leemorrison1700]

Dealership's get kik backs from the manufacturer right

[@notwaitingtolive]

Yes. The dealer gets paid the manufacturer rebate discount to the customer. The dealer can also get additional compensation based on how many units they sell per make, model, month, quarter, year.

[@looking511]

Don’t fall for the salesman that walk in and joe I’ll be taking that car to key west this weekend try to force a deal and the best is your isn’t worth anything they want for nothing then hold on to your keys I threaten the dealer to call the police if he didn’t give me back my cars all this was in Orlando Florida be aware theses dealer are con artist leave and don’t look back

[@notwaitingtolive]

The ol’ boss said I could borrow the car for the weekend trick. Reminds me of the badger car sales commercials: kzbin.info/www/bejne/nnubeo2pm999e6s

[@butterfly-pf8lj]

The first expert sounds about right

[@notwaitingtolive]

What were your favorite insights they had?

[@notwaitingtolive]

Just to summarize my biggest issues with the original video: 1. Waiting until the last second to mention you have a trade in is simply bad advice as it adds potentially hours and layers of complication to the end of the deal with no significant increase in probability of a higher trade in offer (the dealer will more likely be irritated than anything else). The best trade in practice would be to get quotes for your trade-in in advance from multiple dealers by email and use those to support the value of your car when it’s time to buy. 2. The most likely point of deception on trade in value is the dealer showing a Kelley Blue Book value for a car in “poor condition” when the seller has received no indication at all that the car is allegedly in “poor condition” (severe, difficult to repair problems or salvage titles). Theres only 4 categories (poor, fair, good, and excellent). Misrepresenting or obfuscating the KBB trade in value condition category is probably the biggest scam at that part of the process. Not pointing out ticky tack issues infront of you as the original video suggests. 3. The original video is misleading about where profit is earned at the dealership. Dealers do make as much or more profit on the sale of the car as financing. The original video continues to support a widely held myth that doesn’t hold up to the data I included in the video. 4. New cars do not cost about the same to dealers everywhere. Incentives vary regionally and by performance of specific dealers. This misconception could influence someone to accept a price on a new car where they live instead of looking elsewhere. 5. The add ons they offer in the finance office are not all junk. Tire and wheel and paint correction are options that I think have tangible value for specific needs. I personally have bought two new cars, one with a warranty, one not. I haven’t had any problems, but my dad had his air conditioner break on his 3 year old Honda Civic outside of the manufacturers warranty. Things can go wrong. I’ve seen people come in paying thousands to fix faulty electronics and parts on cars that were less than 5 years old. Overall this is just my two cents, a layer of commentary on top of an otherwise massively popular car video.