How NOT to Negotiate a Car Deal (Mistakes) Kevin Hunter the Homework Guy

There's definitely a right way and a wrong way to negotiate a car deal. Especially in today's car market. Sadly, there’s a lot of you out there who consistently do it the wrong way. So how do we fix these car buying mistakes?
We’ll go over several No-no’s in car negotiations and offer advice on what to do instead. We've already taught you about one of the most effective negotiating techniques, which is OTD negotiating, and we covered it in a recent show, so we won’t talk about it again here. Instead, today we are focusing on some of the worst habits and techniques some of you are still using out there at dealerships. These are not just things that we've made up, and these are not techniques that we've heard about people using just once or twice. These are techniques that people continue to try over and over again. I see evidence of these techniques in viewer emails I read on a daily basis, but good on those of you who reach out, become members, and allow us to steer you in the right direction!
The number one mistake that many people make in the car industry is not realizing you’re actually working three separate transactions in one car deal. Yes, I said there’s three transactions to negotiate. Most often, people look at a car deal as being just one transaction and that is a big mistake, friends. As I’ve said, it is actually three transactions, and you've got to look at it this way when you're buying a vehicle.
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A CAR DEALER WANTS TO:
1. SELL every car for the Highest Possible Price.
2. CONVINCE Car Buyers to use Dealer affiliated Lenders / Banks.
3. LOAD every Car Deal full of Fees and Finance Products.
4. OFFER Lowball numbers on every Trade Vehicle.
THE HOMEWORK GUY TEAM (THG) HELPS CAR BUYERS TO:
1. BUY a Car from Dealers or Private Party Sellers at the Lowest Price.
2. PAY Cash or Finance with their own Bank or Credit Union.
3. DECLINE Dealer Fees and Finance Products.
4. TRADE / SELL their current vehicle for the Best Value.
For more than 40 years, dealerships have EARNED their lowly reputation by being the masters of predatory selling. Dealers stalk victims relentlessly, often ruthlessly treating the most vulnerable car buyers (like seniors, for example) with little or no conscience. Car Dealers and their Finance Officers have no problem creating financial devastation for their customers with over bloated car loans, and quite often do. We point out the traps and the flaws of the process, and help car buyers get by all the nonsense without being ripped off. We promote fairness, honesty, and transparency, and we’d love to see a few dealers join our mission!
The Homework Guy Team provides car buying consumers with information, automotive news and updates, industry outlook, buying and selling advice, and other help to level the tables. The public face of THG is Kevin Hunter and the master negotiator, Amazing Elizabeth. Tons of time and research goes into every show, with several projects always on the table, all with the goal of getting it exactly right. From Automotive News Updates to vehicle shopping advice and assistance, The Homework Guy Team is the best there is.
Paying with cash for your next vehicle? Before you start thinking you should waltz into a dealership and flash that cash, No NO NO and NO! Hold that thought! It’s a good thing you saved up your cash for a car purchase…
But, you gotta know this! DON’T SAY, I’M PAYING CASH the moment you talk to a Car Dealer!
Coming up in this show is WHY you shouldn't reveal you're paying with cash… too early in negotiations… at a car dealership, and before this is over, I’m going to help you cash buyers understand how to defeat a car dealer using their own business model against them! It’s a patented THG Secret! There’s also a giveaway at the end! Let’s roll!

[@Dac54]

I would add a fourth element to factor into the purchasing process of a vehicle: the cost of insurance. Typically, whenever I've considered purchasing or leasing a vehicle, the first thing that I've always done is to make a list of around three or so makes or models that I would be okay with. I then provide the information to the insurance agent, who lets me know what the cost will be, within minimal approximation. Having this knowledge beforehand is quite helpful in deciding which vehicle(s) will or will not be considered for purchase or lease.

[@frankrothiz4u]

Smart and good advice.

[@JasonDoege]

Some guidance that has worked for me: 1) be willing to walk away. 2) be aware that while they will try to get invested by wasting your time, they are burning their time as well and will be more motivated to sell just as they expect you to be more motivated to buy. 3) have a price, not a payment in mind 4) be pre-qualified for a loan with your bank before you walk in 5) for the best price, be flexible on color and features, be prepared to choose from what is on the lot 6) sometimes take their financing even if you can afford cash, the manufacturer kickbacks can improve the deal, but *after* you've negotiated the cash price. If you can afford cash, just pay off the loan a month or two after you buy.

[@charliedeluca5756]

I know nobody will believe me but I negotiated a deal 72 hour ago be email. The OTD they gave me was $12 more than what I calculated to be a fair price. Great, told them I'd be there in 2 hours to get the car. After some fooling around I asked the baby salesman to round off the number by 78 cents.because it's too hard to fit a car purchase number on a personal check. He said he had to ask his boss. The boss came out very angry saying that I already got a 6% discount and he wasn't going any lower.. He basically called me a jerk for asking. for another 78 cents. When he said that I thought if that's the way they treat you before the sale, just imagine what they do after the sale. I said thanks and walked out. The sales manager chased me across the parking lot, telling me I was a jerk to walk out over 78 cents after his great discount at least three times before I got to my car and drove out.

[@georgemartin1436]

A dummy guy I worked with, back in 1999, went to a dealer and told the salesman "if I could get that car for $350 a month, I'd take it". The car was a used Chevy Lumina...in 1999 dollars! SHOCKER: they were able to get to his price by simply extending the term a few years! He then told us (the shocked listeners) that once he built up some EQUITY in the Chevy Lumina he'd use that PROFIT to buy a better car. EDIT: I said if he got much more "equity" he'd soon be riding a bicycle.

[@googleusergp]

I'll add to it: 1) Do ALL of the negotiating from home. Only show up at a dealership when you have the numbers on paper. If they refuse, go to someone else. Burn through every dealer within a 100 mile radius of home if you have to. 2) Don't buy what you can't afford. If you couldn't buy the car in cash and still pay your bills, then you can't afford it. Fix your current car or buy a good used one until you can get something better. 3) Offer to do the paperwork yourself to save money. This will likely cause them to possibly remove the fees if that's the holdup point. 4) Sell your car on your own rather than trade it in. It keeps the transaction simpler. 5) Some dealers will not sell outside of their local area, especially if stock is limited. 6) Stock and inventory impacts pricing. Sure, you can negotiate a deal on some brands but most of them are complete crap and not worth buying. The better makes are harder to find dealers that will deal on. Not impossible, but harder. Toyota and Honda are notorious for inventory "trimming".

[@diggman33]

A long time sub, a month ago I was in the market for a new VW, and reviewed many of Kevin and Liz's videos on various tactics. I was a cash buyer, so there weren't as many layers, but by far the OTD tactic is the way to go. Thank you Kevin and Liz, you have saved me thousands! Also, engage with several dealerships using the OTD method. I was able to get written and signed proposals from several dealerships and played them off each other to get additional hundreds off the vehicle.

[@wwz1011]

Way to go! One of the biggest financial decisions in a person's life. In the end it's just a transfer of wealth, from your family to the dealer. Who is more important? It's obvious, my family.

[@Deborah-le6yl]

Kevin, I’ve been watching your videos to get ready to purchase my new car with cash. Thank you very much MSRP of this vehicle (2025 Toyota Camry LE $32062. You were correct in them trying to give me a bunch of add-ons which would have added up to $36,000 plus. I was able to get all the fees taken off (which they did not seem to care for too much) I walked out of there with the premium package that I told them that I didn’t need, a full tank of gas and my outdoor price was 33,200 tax license.everything I probably couldn’t negotiate a better price, but since this was a brand new car that I know that didn’t stay on the lot very long, because I did my research like you suggested, I feel like I got a good deal. They did ask me to get the extended platinum warranty, which I just politely told him no thanks I don’t need it and that was it. I can’t thank you enough for all your help. If you want to know of a good Toyota dealer in Saint Augustine, Florida, it’s Beaver Toyota. The salesman was Luis

[@MrNickb-s500]

Great Work THG Team ❤👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍😊😊

[@jimmulderig743]

Great information

[@The173gispa]

Thanks again, y'all are so right in the information . Getting my feet wet in the Negotiating field, still need a little help. Out of state buying sale taxes. Ga-Fla

[@wwz1011]

My father always focused on one number, the trade in value. So he often got insanely high trade ins, like 2 X the car's value. But then he got taken to the cleaners on the price of the car. He would come home bragging about the trade value he got. He kept using the same salesman at the same dealer, so they were well prepared to meet his needs while maximizing their profit. He also would pay $$ for extended warranty, yet he never kept cars long enough to exceed the manufacturers standard warranty .

[@JoePvpii]

Hey Man, can you do a Part 2, Step by Step on how to Beat the Finance Office and their Rats 🐀😂. This is where many of us Get lost, especially when the Stealerships say, "You have high credit, but because you don't have pay stubs, so your interest percent is higher." 🤔

[@robertmcknight170]

I listened to the rest of your presentation and got my answer. Thank you

[@KevinHunter]

Excellent!

[@la435kubota]

A fourth part of a vehicle purchase is that part of being in the F&I office. Besides discussing the how you are going to pay is the part you need to be prepared to say NO to all the other Extra stuff they want to sell you.

[@robertmcknight170]

I am not in the market for a car for likely 3 or 4 years. Do you have a pay for service option that I can get guidance when I am ready to replace my car? Thank you.

[@KevinHunter]

We most definitely do, and it's the best there is in the market today. Nobody else comes close!

[@husseinabd6937]

Kevin Please Your insight about HERTZ SALES DEALERSHIPS Are they good? They don’t negotiate their prices The price what you see what you get? Their is cash or financing is the same?

[@scotts.515]

From what I heard, rental cars are abused, and they don't have to report damages or maintenance to places like car fax. If they sell the rental car, they are usually the best of their cars they had, and the worse are the ones that are sold at other dealerships. Rentals are like having 100 previous owners and if the car was in a heavily rented area maintenance might get delayed since they want the money and will wait tell the busy season is over before changing the oil.

[@ahmadghosheh3104]

If I got a dollar for everytime I heard someone says, "I am going to see what I get approved for" or "I need to see what payments I can get ". Usually they are lower income or middle class pressed for a newer used car since the POS they are driving just blew an engine. They always over pay and get crap cars.

[@Truthandjusticeforever]

Love your honesty!

[@KevinHunter]

I appreciate that!

[@Truthandjusticeforever]

Please do an update on how your auction purchasing process is coming along. I live in Ann Arbor, Michigan and am very interested in this service. In the market for a Jeep Gladiator Rubicon or Mojave with low miles and the safety package. Dealership prices are all over the place.

[@1supser]

Following all this, How would some go about getting a deal on a vehicle that’s in high demand and/or high end model? For example Acura Type S, or Toyota TRDPro. Is it even possible?

[@rorosnusnu2035]

It's not. Just find a dealer that sells at msrp .might have to go out of state

[@KevinHunter]

It's possible but it does take some time and patience.

[@JasonDoege]

There is no process. It's not impossible but highly unlikely. If the dealer is confident that a model will move with dealer markup they will just let you go. Some dealers are MSRP only but they are hard to find.

[@CO84trucker]

Mike Judge depicted car dealer & salesman antics pretty well in King of the Hill, most notably in the 2008 episode "The Accidental Terrorist". Despite Hank Hill being a salesman himself, it doesn't prevent him from buying cars over the years at sticker price. This all comes to a head where Hank repeats his old habit despite his wife Peggy doing the "homework"... y'all's should check out that episode if you haven't done so already!

[@ethiopia7387]

Why do you guys talk about zero percent APR? I just got approved but I would like to know if something is fishing their deal.

[@carolynsee7089]

I am shopping for a truck. I found one that said 7gs below msrp. Can i still negotiate or will they say thats the lowest they can go. I got Capital One pre-approved yesterday. Is ok to see if they will beat the apr offer?

[@googleusergp]

What is the true market value of the truck? Price it on Edmunds or other services to see what they say you should pay.

[@IAmJeka]

Go to car edge you’ll get good advice as well But Check how long the car has been sitting on their lot as the longer they are the more they are willing to negotiate z Be comfortable with getting up walking away

[@jdmather5755]

I was recently in the market for a 1 or 2 year low mileage car to replace my current 14 year old car that needed some repair work. One thing I was concerned about is the dealers all tried to push me to text messaging rather than email. I only communicated with emails as I didn’t want them calling me rather than texting. What was the experience of some of you here that opened communication via text messaging? Did they start calling you? I think I enquired at 5 different dealers for similar car. They all acted like it was aggressively priced and might be gone tomorrow if I didn’t come in right away. I had lots of questions one-at-a-time to string out time. Two weeks later I was still getting emails about price drops. In the end I ended up getting my current car repaired and dropped out of the market for now.

[@googleusergp]

Set up a Google Voice number that doesn't reveal your real number but it is routed to it. You can toss the number when you're done and they never have your real number. Text them back and say, "I don't negotiate via phone call, only e-mail". I had one dealer that just recently called me (after two years of calls) and I finally took his call. I answered and said, "Before you start, you blew it. I bought a car from someone else" and he was deflated. I just hung up on him.

[@hctim96]

What would be a good negotiated price on a car? 7-10% below MSRP? What should I shoot for to know if a deal is "good". I'm planning on buying in August or Sept so I'm doing my "homework" now...

[@gtech66]

It all depends on how long the vehicle has been on the dealerships lot. The longer on the lot, the better the deal since the dealership wants to get it off the lot.

[@ppg19782]

Working in the past selling cars...ppl don't do research and unfortunately they get taken. That's why I left that business. You have hard Working ppl to buy a car and the sharks come out and get destroyed. I would ask for invoice straight up ..the only thing that the invoice could be re-printed differently from a dealership. Then from the incentive from the manufacturer to a dealership they make at least $300 - $500 which is the hold back. Ppl don't know what. Due diligence is transportation not an investment like a house. Don't miss that business at all, long hours, you don't have a life. Research, research, due diligence.. Much blessings 🙌

[@JWFas]

It depends on how high in demand the vehicle is. Higher demand cars will spend fewer days on the lot, so in some cases MSRP might be fair. A month ago I got 27% off an EV because EVs are lower demand vehicles right now. Whichever vehicle you choose, get final OTD prices via email before visiting the dealership.

[@KevinHunter]

Good thing to get your homework done in advance. The amount below MSRP depends heavily on the brand you're shopping for.

[@viccionetti5907]

I’m considering a new Lexus NX or UX both in high demand. However, I would need to factory order as getting the color and exact options I want is never found on their lot. Based on your experience does Lexus deal at all? MSRP? All local Lexus dealers in Colorado tack on an additional $699 ‘dealers’ fee.

[@NWcpl]

how do we get in contact with Stuart?

[@SmittyAZ]

Well, since the dealers know ALL of these tricks that consumers use, who's got the real power vs making us feel better about the negotiations?

[@incredibleshrinkingfungus1731]

Another / separate video on this topic but for lessors would be helpful. I know most people frown on leases but there are many hidden or unrecognized advantages to leasing and always having a payment is not a bad thing. Most people who buy new are looking to trade in or get rid at three years anyway.

[@terrycurtis2633]

Good info in your video's information, could you make speed of your speech, speed the Video "SLOWER" make it more personal with the Viewer.. Slow down

[@67Mannheim]

I got a car last year $3k below sticker price - by asking for a quote then, waited...😊

[@googleusergp]

Never use sticker price to negotiate----only true market cost.

[@josephkelleher8820]

Better to not buy any new car and keep your current ride. I keep my cars for 15 years and preferably longer. If you are middle class like me best way to do it in my opinion.

[@redhatbear1135]

There comes a point when that no longer works, we’re at 22 years now.

[@KevinHunter]

No argument here.

[@brianjohnson3833]

I'm driving a 2018 Hyundai Elantra with 44,000 mi on it. Bought it new. No way am I trading it in for a $700 car payment?

[@LLPOF]

I am not reading off cue cards.

[@deanmitchell9568]

So where do you go to do the homework about price?

[@googleusergp]

Edmunds for one.

[@laurasc84366]

I was told “ once we have added it to vehicle, we can’t take it off”. By law , is this true?

[@KevinHunter]

It's Tying the Sale which is illegal. Sellers (like car Dealers) put drap on a desired product (like a car) that wouldn't necessarily ever be sold on it's own and thereby illegally force someone to buy an unwanted product. It's been illegal for awhile: www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/single-firm-conduct/tying-sale-two-products

[@googleusergp]

That's when you tell him, "Well I'll just help you out and take it off the price for you.....". If they insist, just walk away.

[@oliverencinas1136]

If I got approved by my credit union they pulled a hard pull on my credit so if the dealer offers better financing is that another pull on my credit?

[@Pasadena97-]

Took me a moment realize why this sounded familiar, you just copied Chevy dude’s video lmao.

[@jackychandler8594]

I'm about to buy a new truck. I'm paying cash, and no trade in. Will use the advice of not disclosing that until they offer me financing. If they try to change price I won't just tell them it's illegal, I will turn them in for their illegal tactic.😮

[@mppetrikas4919]

Why doesn'tn your commentary Match your videos?

[@oliverencinas1136]

I would literally spend weeks just reading reviews on all the different car dealerships here in Arizona

[@KevinHunter]

You could but that isn't necessary. Not every dealer is worth checking out in detail.