Is money down on a car deal a SCAM? How dealers turn your cash into PROFIT!

Most Car dealers want you to put money down when financing is involved. Is that a scam? It could be. Here's what to look for when you are putting money down on your next car purchase.
SUBSCRIBE and help me reach 1,000,000 subscribers! subchevydude.com
Enter to win My apple Watch. Now thru 11/30/18
Enter HERE: chevydude.news/apple-watch-giv...
A MAJOR NEW KZbin FEATURE!
⇒ Become a channel member for exclusive features! Check it out here:
chevydude.news/channel-membership
If you want to see more videos like this make sure to click the like button and leave a comment.
Got a vlog Idea? Tell me here: chevydude.news/vlogidea
Get your Chevy Dude Merch: bit.ly/chevydudemerch
Support my channel when shopping at Amazon.
bit.ly/chevydudeamazon
Follow me on all my Social Media Outlets for different content. www.FollowMikeDavenport.com
SEND ME MAIL for a shout out in my next video!!
Chevy Dude
P.O. Box 99272
Louisville, Ky. 40269
You can contact me for sales related inquiries at ChevyDude.com
You can now find me at my own dealership in southern Indiana. My wife and I started Mike’s Car Store Located in Georgetown, In. Where Buying a Car Doesn’t Have to Suck™
We specialize in Late model Used cars for all types of buyers. If you have challenged credit we can definitely help you and ensure you don’t get scammed or pay too much. If you are a cash buyer or have excellent credit we will be glad to help you as well.
We are also specializing in our new Car Grabber service. If you are looking for a late model car and don’t want to contact a bunch of dealerships just to have them show you cars you didn’t ask for. We got you. Just head over to mikescarstore.com and tell us what you are looking for and we will get it for you.

[@fredkuhn165]

Too bad dealers can’t figure out that they could sell more cars and spend less on advertising if they were honest

[@kawa1755]

Its not about selling more cars its about profit. The sad thing is people line up to get ripped off. Every dealership is gonna fuck you there is no way around except by not participating in it. Its funny people line up to get screwed over.

[@christopherrosas2738]

Not all dealerships are out to screw you, but you have to educate yourself so you don't get reeled in...... There's nothing wrong with walking away from a deal...... If it's not going to work for you, you have every right and responsibility to walk away from a deal...... There's no rule saying you even have to put money down on a vehicle...... I've actually done it where I've flipped the rebates to act as my down payment..... No money out of pocket and I've walked away with a vehicle...... Of course if a dealership sees you aren't paying attention, they may set out to screw you in the end because they see they can..... That's why on my latest vehicle purchase I paid attention to down payment, monthly payment, interest rate and term...... Talked myself into a payment that works for me and didn't put down any more than I could afford and now I'm actually a bit ahead of my payment schedule because when I could afford to pay more on the vehicle, I did

[@88thebluedemon]

I can't wait for the day where everyone sells cars at the same price from warehouses and no negotiating. And if you don't wanna pay that price at that point, you can just go fuck yourself 😍

[@christopherrosas2738]

@Asniel Figueroa you would be correct....... There's no rule saying you can't walk away from a vehicle if the dealership isn't working with you or if they're being dishonest....... You should be the one controlling the deal instead of them

[@coopsnz1]

Dealership owners mostly small business owners have huge debt , so they have to make a bigger profit when Democrats tax and regulate them more , happens in Australia with the left democratic socialist

[@vcash1112]

The Manufacturer should sell straight to the consumer and skip the dealer ship.......🥊

[@youtuber6609]

@ vcash holdfastThats what Tesla is trying to do, but law ban car makers from selling cars as stated by @Roscor Dogg

[@lsimpson8307]

Roscoe Dogg i have to wonder why that is, because the dealership union sent a lobby to the state legislature? It only serves to benefit the dealership industry and not the consumers, it disenfranchises them. Maybe they donate to political campaigns. There is a reason i bought my iphone from an Apple store and not my carrier store.

[@youtuber6609]

@ray bee I think you missed the point or just skipped my comment altogether, Tesla Inc has been doing this already... they are their own manufacture and they sell cars directly to the average joe. If a car has a recall or needs warranty work done... you bring your car to Tesla Inc and they'll do it for you.

[@youtuber6609]

​@Gus Goose a1 comment

[@AntilleanConfederation]

vcash holdfast got to get rid of the fucking lobby first. Money in politics is 100% legal bribes.

[@unproven13]

NEVER TELL THEM YOU HAVE MONEY TO PUT DOWN. Settle on a price first then tell them you have money to put down

[@douglaswegener6463]

Asking for money down is illegal. 15 USC 1605 knowledge is power

[@theeconsciousman]

do you need to sign anything before saying you have money to put down, could they take that offer off the table

[@RyansReaper]

@@theeconsciousman you wait till the final itemized bill is handed over for you to review and if you agree say that and say you have money to put down.

[@alexandreazevedo8228]

I can 500 or 1000 put down any car price

[@jasminejagger3292]

If putting $ down dosen’t change the interest rate save the $ to use for payments

[@youtubetrollking1880]

Good to see Biff from back to the future turned over a new leaf and is helping folks out.

[@youtubetrollking1880]

@@ChevyDude good info. I'm looking to buy a new ranger when its out early next year. I feel I've done pretty well in the past when buying vehicles, but always trying to learn new tips. Thanks.

[@taelorwatson9822]

What do you recommend for a wax? I've been using mothers I can't think of the type right now

[@endocry]

Good to see Sweetchuck from Police Academy has a KZbin profile.

[@youtubetrollking1880]

@@endocry lol. That was a good pull. The obscure reference gets bonus points.

[@Hammerdownproductions]

Chevy Dude good come back and reference.

[@davemount2607]

After watching a bunch of your videos I’m about to the point of just walking everywhere as opposed to going through the whole car buying ordeal new or used

[@SegaDisneyUniverse]

For real, so many scams, so little money.

[@Andy-im3kj]

Exactly. It's like the only thing we can really own is our own bodies and lives.

[@BlackTrunksPodcast]

@@Andy-im3kj 👁

[@michaelhorner4011]

I once walked into a car dealership at the ripe age of 21. Looking for a used car....looked up the kelly blue book before going to look at the car. I knew they got the car for less than kelly blue book. I had them marked so low on the deal. Played with them for about 30 minutes. Was not liking the price and walked away. As I walked away, he wanted to know if I wanted a job at the dealership. I said nope I already have a job and it is not a car salesman. The buyer holds the power and the object is only worth what the buyer is willing to pay for it. Happy car shopping everyone!

[@GaryFowler2906]

The worst car accidents happen on the showroom floor

[@James-wx9bf]

Jim Cooke Dave Ramsey!

[@TOMVUTHEPIMP]

@@James-wx9bf Dave Ramsey is a fraud.

[@anthonyd.jacksonjr.2139]

@@TOMVUTHEPIMP Explain.

[@TOMVUTHEPIMP]

@@anthonyd.jacksonjr.2139 He makes money in the fastlane by telling you to make money by saving pennies. Total racket. Like Suze Orman.

[@anthonyd.jacksonjr.2139]

@@TOMVUTHEPIMP Interesting...

[@brianschott8162]

Key advice. Never negotiate on the final payment, focus on all of the prices. When they come at you with final payment value, ask to see ALL of the numbers in the math. It helps if you are fully willing to walk away at anything regarding the price that makes you uncomfortable.

[@kfstreich4787]

When I had to negotiate as soon as the salesman acted like it was difficult I would tell them I'll give them time to figure it out and come back in 30 minutes, it flips the control from them to you.

[@TeXasDadBod]

This makes me never want to buy a car again lol

[@amb3cog]

Why is that? He never actually said anything. At ALL!

[@amb3cog]

@@fredberfal1246 Yea I see your point. He is like a bitch! Out for your money, and can't be trusted. Basically worthless. However, at least a bitch actually has something to offer. Even if it's short lived. Lol

[@1redrubberball]

I try to do it as seldom as possible. That's a reason I am more conscientious with car/truck maintenance.

[@sarahann530]

@@amb3cog Do you work for free ?

[@ugladden]

Never discuss a trade in or down payment until u have the price locked in

[@CjMk4GLi]

How would you get the price locked in? They always wanna know what downpayment you have or what trade in. Well at least to the ones I’ve gone to

[@raydavies6236]

@@CjMk4GLi That has nothing to do with the price, that is how you are going to pay off that set price. Of course they want to know that first, so they can try to rip you off 3 different ways.

[@arizona71189]

Yep!

[@Fume1337]

Ray Davies 😂😂😂😂💀💀💀

[@tommak6516]

Tell them you are going to finance, then at the last minute grab the contract and tear it to shreds and pay cash. They will appreciate your candor.

[@cecho9367]

I’ve been buying and leasing cars for years. I do a lot of research and calculations before even going to the dealer. I never put any money down. Not even taxes. And after making my mistakes along the way of which there were many, I’ve gotten to the point where I’m happy with the deals I get and don’t need to spend endless hours at the stealership

[@germandelariva3754]

How do you do that every single dealer always asks for a DP they’re money hungry

[@normogaard5223]

Best way to play their game is go in with YOUR out the door price and if they won't do it then move to another of the 5 billion dealers. Make sure you do your homework on the value of the cars you want for the year you want. And never play their skiing price always always cut it and NEVER COME UP WITH A PRICE First Ask THEM WHAT THEY ARE ASKING.. And if they won't give you a price first move to another of the 5 billion dealers. Remember you have the $$$ SO YOU HAVE ALL THE POWER!

[@drwisdom1]

Mr. Dude is being quite informative here but he doesn't outright state his conclusions - that the vehicle sales business employs shady practices and leasing is a scam.

[@drwisdom1]

@Mr RandomTV9000 I have only discovered one reason that makes leasing a good deal. My friend's wife wrecked her car twice. When the lease was up he was more than happy to give it back.

[@bodystomp5302]

The last time I bought a car it went shockingly smooth. I called up, gave them the stock number of the car I was interested in, offered 15% less than MSRP on a Honda Civic, not really expecting them to agree, but they did. I was at the dealership when they unlocked the door the following morning. No problems, no games. The whole process took 90 minutes, and this was from a local dealer who many people do not like.

[@Andy-im3kj]

Count yourself lucky because alot of dealerships love to play games and toy with people's time and lives.

[@dadreiantennyson4489]

@@Andy-im3kj need a tissue?

[@Andy-im3kj]

@@dadreiantennyson4489 Your mom needs one.

[@CashLit]

What about taxes? let’s say the vehicle is $30,000 MSRP and you offer 15% less and taxes is 10%. Are you adding the 10% to the 30,000 or the subtracted amount, which would be $25,500?

[@jmilz08]

Every squirrel finds a nut one day !! Congrats for real though lol

[@tonywong8134]

My dealer actually limited me to $3000 down payment. It was bs, but the interest rate was .9% so I relented. Over 3 years of my loan I'll pay about $400 in interest, but I'll pay off the car in a year.

[@AlanSmitheeman]

Good grief! Purchasing a vehicle is so perilous I'll just use a skate board.

[@CoIorful]

AlanSmitheeman lol

[@Jp-yd2ke]

Lol I got my mountain and road bike... I'm good

[@eliziocantio1111]

For if only motorcycles could keep you dry

[@SegaDisneyUniverse]

@@eliziocantio1111 And carry more than 2 bags full of groceries, lol.

[@SegaDisneyUniverse]

For the price of an average new car, I could just invest that money into creating a device that just teleports me to my desired locations!😂

[@carycoller3140]

Your video is proof of why I don't ever trust car salesman. Every time they open their mouths they're lying.

[@billyfranco1374]

Simple recommendation, buy the car cash or finance through YOUR bank. Never ever ever finance through the dealership. They will scam you and will have a bank help them scam you for their cut.

[@Deckdefender]

Short of government taxes and health care buying cars the next biggest scam you'll ever have in your life

[@fubarexress6359]

That's why I've never financed besides one time and I'll never do it again. Paying cash and not buying new and being smart witn what brands you chose to drive. If you do buy from a dealer do your research! There are honest dealerships and even honest salesmen! (Gasp)

[@2584024]

Can't take money to the grave. If you can afford it safely, why not spend a little extra to finance a nicer car that you're gonna use every day?

[@jamesgarrison6430]

Marriage

[@dedalliance1]

Buying cars is not a scam lol. Everything is upfront as long as you do your research lol.

[@FootballRob2010]

You forgot student loans

[@beaulong3270]

90% of the time. Depends on the lender and dealer check you get depending on someone’s credit, income, vehicle and a few other things. Sometimes it takes the down payment to make any money at all and most of the time it’s just gravy on top.

[@chadpugh1490]

I bought a new car about a month ago. I put 5K down. I started watching this video, dreading to hear Dude say that "Its a waste" or "don't do it". I've watched it all the way through and I can say that I think it was a good idea to put that much down. I bought a Nissan but THX CHEVY DUDE.

[@johnq8135]

Thanks Chevy dude. Nice video keep them coming

[@johngriffith7315]

Keep the dealer finance department out of the transaction. I finance with my own credit union. Saves a lot of hassles.

[@luismendoza7739]

You can get more rebate if you go through their financing

[@luismendoza7739]

Just make sure to have a good credit score so you can get a nice interest rate

[@bcar1ify]

Just finance through them to get the rebates, then within a week refinance with your own. Easy.

[@Martell276]

What if the dealership's finance department gives you 0% interest financing?

[@tvang464]

Don't worry about the monthly payment number. If you did your math(many calculators online) before going, you already know this number and buying in a price point within your comfort zone. Hustle your final price first. Then give them the down payment. If they can get you a better rate than your bank, take it. Yes, this gives them some more profit. It's ok. It allows them to give you a better final price because they want to make profit somewhere and you're taking some profit away from them by getting a lower price on the vehicle. Sign papers, drive home.

[@bobby5951]

This is why I wait on lease returns and buy them used. There isnt as much to worry about. Plus I used to be a new car salesman and the managers were trying to get me to do shady things to make more profit. Needless to say i quit selling and became a mechanic in the fleet industry six months later.

[@waltbullet1287]

So damn sad a new car to buy should be enjoyable! And a great experience! Now you have to were body armor! They pulverize you! I'd. Probably like to buy again but I still sick of my last Esperiance

[@kevinaalberts9251]

Your a mechanic now,and still ripping people off !!! Nice touch!

[@bobby5951]

@@kevinaalberts9251 I work as a mechanic in the fleet industry you dumb ass. If you new about fleet then you would feel stupid right now. You should really think before you speak to keep from sounding ignorant.

[@raydavies6236]

@@waltbullet1287 Car dealers are the only stores that treat paying customers like crap. Well, airlines too.

[@screamingsavage001]

Thank you for all the info you have GIVING me!!! Keep it it up man.

[@clerissonmesquita]

Thank you so much for your invaluable information, highly appreciate it, keep it up the outstanding job, have a great day.

[@FrenchieFries]

And that’s why Tesla is so nice. You order what you want online... no other bs don’t have to deal with a dealership. Wish other companies started doing this but it wouldn’t be good for the car dealership industry

[@FrenchieFries]

ohhh shit chevy dude with the tesla roast!!

[@micahjohnson6719]

If I’m putting down $4000 down on a 2010 4runner that’s $11500 and my payment per month is $319 for 36 months, that equals $11,484 in the end, so where’s my down payment going? 🤔

[@rogersmith2036]

To their pockets and interest rate with those numbers the interest is 21.2%

[@jc209714]

Great video thanks for explaining in good detail.

[@whitewaterkayaker]

I negotiated with multiple dealers over the phone/internet. Narrowed it down to two dealers. One said we'd beat any advertised price in an email. Went to another dealer, negotiated down 3.5k to where we were about to sign the deal. I pull out that email and get them to take off another 10%, then told them I wanted to lease. I put zero down on the lease. I got a 2019 Impreza Sport with Eyesight and H/K sound system for $275/mo

[@xxZerosumxx]

1) Don't talk about your money. 2) Talk about how low you can get price down on the vehicle. ( You may have to shop different dealers) 3) If you have a trade in, get a price first before giving them your ss#.(If financing) 4) Once you like the price, start talking about your money.(Down payment/Financing) Keep track of the price at all times. Take a paper and pen if need be. 5) If at the end of the day(because it will take a whole day) something doesn't sound right. Go home,think about it and don't rush it.

[@daniilivanov9601]

Sounds like a good way to waste a whole day 🤷‍♂️

[@mrklimczyk]

Always talk price not payment!

[@brandonmiller9423]

Johnathan Gonzalez it’s the 21st century, he most likely knows this but would rather not be bothered to put the comma in. People literally abbreviate everything when typing... plus no one likes a grammar nazi

[@ericmorton6893]

Johnathan Gonzalez, you forgot the period at the end of your sentence.

[@AlanJWatkins]

@@brandonmiller9423 Two opposable thumbs up for grammar Nazis!

[@David-or8oh]

Awesome if I can get you this car at 10,000 out the door with a 500 payment for 72 months are you ready to move forward? Since price is more important for you and your family is that correct sir?

[@brainwashingdetergent4128]

@@David-or8oh thats exactly how it works. I just picked up a new buick didnt get the rebate scam deal. With no rebates i am paying 8k less than if I got the rebates and payed piles of intrest for the prevelage of receiving a rebate 😂😂😂

[@fx4den540]

Enjoy your vids bud... keep up the priceless info !!!

[@zabrinatheteacher]

Great info. Thank you!

[@indycustommade3568]

They wonder why the are in the top 3 of the most hated people in business.

[@GamingJGBdbz]

It really comes down to the down payment. Your going to want to put 30%, or more down. Never want an APR rate over 15%, because your going to be paying $5,000 or more in interest. Depending on the final price of the car.

[@GoogleAccount00]

Thanks for sharing this information.

[@Alexi7666]

Nobody is charging 15% these days. Unless it's a scumbag outfit like JD Byrider.

[@imso1stplace]

Not necessarily, at least 15% down payment should suffice

[@Alexi7666]

@@imso1stplace : 15% interest, not 15% downpayment.

[@imso1stplace]

@@Alexi7666 no, he said verbatim “it really comes down to the down payment, your going to want to put 30% or more” when in reality anything more than a 15% on down payment is just extra leeway on your monthly but 15% down payment is more than enough.

[@shahbazkhanjs]

Highly appreciated your videos lighting up on inside tricks

[@RobjJohnson-sk1wg]

You are big help we need more people like you out here to let people know about the car game thanks

[@Carl_Jr]

I'm sure Mike will cover this in another video, but 2 other reasons may be 1.) The purchaser is upside-down in his/her trade. Sometimes that payoff can put the LTV higher than the bank will buy. If the dealership can't sell the loan, they can't sell the car. 2.) The buyer's Debt-To-Income ratio is high, and the down payment will drop the monthly payment (by dropping the amount financed) below the magical 42%. Actually, a third reason can be because the car dealership is in the car too deep and needs to unload it. If they haven't balanced the inventory then the amount they own the car for may be keeping them from making any money at the price they have to drop the car to, in order to get the buyer financed. Maybe more complicated than non-car dealers would understand but I've been in a few situations were getting even just $200 from the buyer as a down payment = $200 in profit, and that's it. People with bad credit are the ones that get the dealership into that position, more than not.

[@jefftalbot8371]

All car salesmen are liars. If they told you the truth the dealership would fire them. I have been buying cars for 40 years and in that time I have purchased 1 vehicle where I feel I got a straight deal. It was December 30th and salesman needed to sell a vehicle. I bout my last new vehicle in July of 2018. I told salesman I was going to buy product x and would not be purchasing extended warranty. Got into the little room and guy just keep hammering a warranty I did not want. I finally told him if you keep pushing I am walking. Stop the extended warranty crap.

[@timroberts917]

So basically fuck F&I managers they shouldn't try to do their job...

[@WJ-cg1de]

If you don't get a warranty and something happens to your car your fucked... You should probably get a warranty genius.

[@cesarnyc]

I also heard from someone else that buying a car at the end of the year might get you a better deal, I wonder if that is accurate.

[@slowpoke4547]

Thanks dude. Great video!!

[@thomassoltis5862]

Great video brother keep up the awesome work Happy Thanksgiving to you and your family

[@samuelramirez4774]

Car dealerships are so shady. That old school “strong” sales style needs to change. The car industry as a whole needs to innovate. It’s not the 1950s anymore. If dealerships don’t innovate they’re gonna be out of business soon enough. (like some taxi companies *cough* Uber)

[@derekcomingo2197]

Why it's important to negotiate each step. And not give up all the info up front

[@edubb2491]

Aww..i scrolled across another wise man!

[@martinritch5241]

GREAT JOB. GREAT INFORMATION . THANKS.

[@diegogonzalez9086]

I listened to the whole video and understood nothing.☹ I was left the same before starting the video. Buying a car can get really tricky

[@mohnjayer]

Diego González It’s not tricky at all. Buy used cars with cash. Financed new cars and ESPECIALLY leasing are both total ripoffs. This guy wants you to believe buying a car is complicated so he can sell you a car as an “ethical” car salesman. He’s not ethical, he wants you to make huge monthly payments to him just like every other salesman. Cash. Used cars. Nice and simple.

[@sarahann530]

@Amanda G Or in your case give good head and have guys drive you around

[@donaldspring8408]

@@mohnjayer Yeah it’s awesome seeing how much that car you own depreciates by the day and a ton of fun dealing with the mounting mechanical issues over time. Leasing is far superior, efficient and just flat out the smarter move. By far.

[@graphguy]

Never put a down on something that will depreciate the minute you take the keys by more than your down payment.

[@Alexi7666]

If depreciation is a concern, maybe you shouldn't be buying a car. Buy what you can afford, not what will impress people.

[@toadguy9501]

As a former car dealer I'll tell you the real secret. Do NOT finance through the dealership or the manufacturer, this is the golden mistake millions of people make. Go through your credit union or financial institution. Make sure any money you put down you give to them, not the dealer!!!!

[@ericdiekmann11]

I bought a new 2018 Silverado December 2018 and financed thru GM financial scam rip off ass clowns then refinanced a week later at a local credit union. GM was at 6.7 percent my place is 2.7 I did it to get the extra "rebate" . The dealership asked me to wait a few months before doing that lol fk that my loyalty is to my wallet not the dealership.

[@jamesgarrison6430]

Were you a dealer or a seller

[@Scotty_in_Ohio]

More often than not a "down payment" is a way to line the pockets of the sales consultant and finance manager. Unless you are arranging for financing outside of the dealership (always a good idea anyhow) then it's usually pretty easy to bury your cash in the deal with other discounts or rebates as Chevy Dude mentions. Don't be a "payment buyer" understand the rate, term and total cost of the vehicle - know those things before you go and never let the dealer take your credit app before you understand the terms of the deal. Remember too that these guys/gals are professionals - they do this all day long and you do it a few hours every few years - it's not an even playing field. If you think for a second that you'll know what they (truly) paid for the car/truck/suv you're kidding yourself - most of the time even the sales manager doesn't know - they just know about "how low they can go". Dealership owners many not know until all the "program money" is back in and any other factory to dealer incentives are accounted for.

[@ARCENAULT]

Absolutely...I been trying to explain to people but the non believers send me nasty ass messages on how they are right financing their vehicles and I am wrong... LMAO..oh well...good to see I am not alone in understanding the value of 💰

[@joesilvestre5817]

hi chevy dude, I watched your video about being prepared b4 buying a car. thanks for all the advice, my mom & I are now well prepared when we go buy the Durango she wants!! thanks!!

[@whoswho156]

I'm more lost now than before i watched this that being said I agree with Alan Smith on being pre-approved prior to shopping for a car know your financial limits and hold fast if you've got good credit you should have no problems buying a car now if your a person who can afford to purchase a new vehicle (or a person who doesn't care that your throwing a few thousand bucks out the widow of a new car as you drive it home then go for it I myself have never bought a brand new vehicle and I never will I can't see paying that price for something that I'm not keeping past 7 years (the longest I've ever owed a car)

[@mikeyfinance2431]

That’s not true , because dealers will take advantage of down payment and raise interest rate and deceive customers by adding more products, I was a finance manager at a Chevy dealer and I had to quite because I couldn’t sleep at night out of guilt !! You better get a check from your bank or credit union .

[@TheFuzzyboy1976]

Mikey Finance what’s the best option to buy a car that cost $7000 , should I finance with a down payment say $1000 and finance the rest or get a credit union loan and negotiate a cash price at the lowest price possible?

[@chasfischer2844]

Great videos, thanks

[@glennmiller394]

In my county (PA), the sales tax on a lease is 9% of the monthly lease payment, where state tax is only 6%. What a racket.

[@ricwestdoesitwork]

I have got to point if I don't like how a dealership comes at me I get up an walk out of the dealership. Thanks for all the information you provide. Love your videos.

[@LuciensMusic]

We called it "pencil whip" in the service. Dealerships take pencil whipping to another level,lol.

[@Rbhawk3rd]

Thanks for the awsome video

[@jondoe5894]

And that's is why I just buy from a private sale when I have the money to buy it in one shot

[@beetleything1864]

You didn’t really explain why a deposit is bad. 🤷‍♂️

[@Danny-iu1fq]

It isn’t

[@Fume1337]

Put down the minimum of 20%. If you can’t put down at least 20%, you can’t afford the car. He’s gone through this on multiple vids.

[@allthingsconsdrble]

A lot of words. Dude doesn’t make a single insightful point.

[@Fume1337]

allthingsconsdrble Then you don’t fully comprehend. Re watch the videos until you get them 👍💯

[@jessicam522]

@@Fume1337 can you please explain to me a little more in regards to a down payment on an auto loan? So, my credit union financed me 30k with a 2.9% APR for 60 or 66 months (up to me to decided) and I don’t need to put a down payment. Now if I go to a dealership and they want me to put a down payment is it smart to do so? I don’t really understand this. What’s the point of the down payment if I’m comfortable with the payments I will be making on my 30k loan from my credit union. (Not that I want or am going spend 30k) just an example.

[@adrianreining9533]

Exactly why I don't disclose monthly payment preference or down payment. Also, I go in pre-approved. I wait to see if the dealership can beat the rate I got. If not, I go with my pre-approved loan.

[@fromnothingtosomething8102]

Can you explain this more please

[@wertz987]

Just go to a credit union and get the best rate for your situation. It doesn't matter what you put down. The key Is never finance through the stealership.

[@dominickirkwood]

Very good my bro keep up and love video 💯

[@tobylynn75]

I dont tell dealer anything other than I want lowest price. Internet sales and in person sales. I can buy a 1 way tkt to many dealerships in my State for 200 bucks and yes, I've walked away from deal over $500 bucks.

[@UFCLodawg]

Toby Bridges you and everyone else lol

[@tobylynn75]

I'm fine with a dealership making money. I'm not fine with dealerships screwing people over.

[@coopsnz1]

No local taxes on mrsp lefty

[@robertguille8784]

you sound like the problom not the solution lol

[@Ed-lz4jv]

Big deal everyone does thaat

[@jsangre1515]

Go to your union credit ask for car loan once you r approve walk in to the dealer like you have money because you do from the bank.never tell dealer what do you want to pay monthly.

[@apostlerayharless5792]

I myself have done some research on the legal way that businesses have to go by the codes when selling an automobile to a customer. It's illegal and it's fraud to ask customer for down payment on an automobile up front.

[@josephc8440]

Man, I love this channel

[@choward874]

I'm saving up so I can pay cash for a new truck screw financing and going in to debt.

[@TheIncredibleHoosier]

Good luck. You’ll be saving for 30 yrs

[@lincolnrhodes1548]

yep, this guy is definitely a car salesman. he talks a lot but in a totally incomprehensible way. I know less now than before watching the video.

[@drwinlied]

lol "Tip #2!" I was like, where tf was tip #1? This vid is essentially, 'dealerships will screw you out of money'...which everyone knew before watching the vid

[@edubb2491]

The Chevy dude liked ur comment too with a heart..lmao..omg!!

[@pastrana37]

Thank you so much...I'm looking getting a Pre-owned...You help me out a lot...I'm gonna keep looking for more videos until I learned Little More... Thank You

[@Bear0328]

pastrana37 interest rate will be high if pre owned

[@thesoliloquist9428]

I had a dealership do that huge down payment percentage and I just immediately walked out. Put a really bad taste in my mouth and I just immediately didn’t want to do business with them.

[@BerserkerMaro]

Every thousand dollar you put down only takes $20 of the monthly payments

[@scottjames5498]

Depending on the term of the loan

[@briangoodie3420]

I don't think it's $20 anymore, maybe more like $16. If see a car commercial pause it and read the fine print, it will tell you.

[@guhbe385]

@@briangoodie3420 or like do the math yourself....

[@amb3cog]

@@guhbe385 LOL God Bless you sir!

[@kais295]

Yeah.. put like 5 grand down.. rather keep that 5 grand and use that money and save it for the payments or 5 grand after you take it out and put it towards the car

[@mattsloop2736]

How do we know if they are scooping the rebates for themselves? Is there a way to figure it out?

[@julykhoovlog1979]

Thank you for sharing here . Looking forward more in the future #ThingstoKnow

[@liljo911xxx]

I wish this guy was in my state..I would definitely go see him..He seem like a good guy..

[@chuckleroy3992]

I hate when car dealers talk in down payments and monthly payments. It is an easy way to confuse most customers and hide the bad details of the deal. Could lease an S class for $50 bucks a month with enough money down...

[@workingshlub8861]

banks offer 10 year loans on ferraris and lamborghinis etc....i could afford that payment if i want to give up eating

[@Dirtnap300]

ok, interesting discussion.. for me, i only talk out 'the door price' (price with taxes, tags and their fees).. and i dont mention any trades or downpayments until we have agreed on that number... Then when i get to the finance desk i break it to that person that they are wasting their time. I never buy extended warranties or any of the dealer 'treatments' like paint sealing or undercoating... I never feel taken advantage of but who knows?

[@noegallo552]

Dirtnap300 same I do. It’s funny to see the pissed off look in their faces when they can’t take advantage of someone

[@TheMotorGuyDirect]

Undercoating can be worth it if it’s $500 or less. But I live in the salt belt. I use to work for an extended warranty company. If you pay less $1000 you got a good deal.

[@raydavies6236]

@@TheMotorGuyDirect All modern cars are undercoated, all you are doing is blocking drain holes and making your car rust faster with those aftermarket ones now.

[@MichaelJones-uw8gi]

Amazing how back in the 60's, dealership would sell cars above cost, by few hundred dollars and sell more in one day than most sellers do in a month. Ie, Worthington Dodge. Neighbor dad worked for Cal and said most people would pay 2 to 3 hundred dollars above cost, sold 40 plus cars a day. Many forget that the dealership gets hold back and floor plan from manufacturer, plu and add ins or extras. My dad bought half ton truck for under 3 grand.

[@Kilnor]

Great video brother!

[@endocry]

I focus on total cost and interest rate since I know my credit is good.

[@skidawg79]

Love your videos. I don't care what my payments are, I want to see what my trade value is, what my interest rate is and everything that goes into the total. This might not be the right way to go about it, but if a car salesman asks me what i want my payments to be....I walk out.

[@wildcard9724]

Hey Dave, I typically wait until I get the freshly printed itemized contract to scrutinize. Plus thats usually the apex where they sell ext. warranty, undercoat, and tint....... Until my signature is on it, they ain't got diddly squat!

[@1hard2findbro]

Problem is, they have something i want. Especially if that vehicle is a more desirable trim level and is used to attract people to buy cheaper cars. They won't want to part with it easily. many dealers would not sell to me unless they can rip me off. Even if I had cash. Everything he's saying is right. My additional advice would be to be prepared to shop nationwide, be patient, and understand that you may have to spend hours at multiple attempts in negotiating unless you leave a blank check. Happy hunting 👌

[@superchief15]

My dealer was straight with me and my C8 was built and delivered as soon as possible against events they had no power to influence. Money Down was to secure the deal and mine was applied to the purchase of my C8 and I paid list price! $67,885.00. I had my own financing so it wasn’t to buy a payment with the down payment. It was to buy equity in a future delivery. No trade in left no place for a dealership manager to play with my out of pocket cost.

[@xXAust1n46Xx]

Buy your car with cash and you don’t have to deal with any financing trickery and nonsense. I recently purchased my first car, a used 2013 Ford Mustang v6 with cash. I certainly could’ve walked away with a brand new 5.0 mustang GT but I’d rather buy something I can afford in full and then save up at my own leisure than go into huge debt for instant gratification now. Plus it’s extra satisfying to buy something after saving up for a while. Just my 2 cents from the Dave Ramsey within me 👍🏼

[@mertz313]

Buying out right does not grow your credit which in turns hurts you

[@xXAust1n46Xx]

I'm a tree Financing a car to “build credit” is an excuse you tell your wife when she wonders why you have a new car 😄... you can build credit for free by using a credit card and paying it off at the end of the month. 99% of people that finance and lease cars do so because they simply can’t afford it. But they want instant gratification so they buy it anyways. The banks love it. Easy money for them.

[@xXAust1n46Xx]

Daisy Juice Establish how much you want to pay before you even start looking. Look for used cars between 2-5 years old for the best overall value. That works best for a budget of $10,000 and up. If your budget ends up being less than that, look for reliable used cars like a Toyota Corolla or a used Honda. And from there if you’re not satisfied with the car you can afford, start a savings account and deposit into it every paycheck and work up to something nicer. And at any time you can use that money for other purchases if need be. Unlike financing a car where you’re on the hook for a bill every month even if your living situation changes.

[@mariamatias5801]

From where I'm from if you pay a car up front they investigate you for money laundering 🤣 everyone wants you to just be in debt it's kinda crazy

[@Kingsec10]

But you bought a V6 and you won’t feel the same way about it in a few months!

[@fretster3]

Should a downpayment be deducted from the price before or after the sales taxes?

[@beaulong3270]

Plain and simple it’s always to get the icing on the top. Secondary financing for people with bad credit a down payment helps to fill the gap on how much that company is willing to write a check for but it’s always to get the icing the top.

[@rickyscz28]

Wow this is awesome for you to put this kinda stuff out there if I do get to buy a newish car I'll definitely come see you as your not far from me

[@joeybaltz582]

i would assume you're making as much youtubing as you are selling cars. nothing bad about it. You run a good informational channel. Keep on the grind.

[@TristanWeberNFL]

My finance manager when i first started in the car business told me "down IS gross (profit)" Glad you explained this.

[@Alexi7666]

Down payment is GROSS profit?? In what world? Money down is just that; part of the payment, a committment on the buyer's part.

[@talltom0690]

My dad always said to apply your down payment to your first loan payment, avoiding all this uncertainty.

[@PHILIPXNC]

Such a great content of video. So informative and we'll said. I like it. #ThingstoKnow

[@231mac]

1. Never use a dealership for financing. They jack up the APR and run multiple (read: unnecessary) credit checks, hurting your score. Always go through a credit union if possible. 2. NEVER give a down payment unless you're going to keep the vehicle for many, many years, or unless you have to in order to get financed and then, ONLY give the absolute minimum.

[@motorcitymanman7711]

LISTEN UP FOLKS.....0% financing for 72 months is ALWAYS available if you have over a 725 or so credit score. The dealer won't tell you that but it is......insist on it! The higher the finance rate you agree to the more money the dealer makes!!

[@willjacobs4101]

Is this through a credit union or how would you recommend finding 0% financing at any given time?

[@motorcitymanman7711]

@@willjacobs4101 Most dealers promote it for the big holiday sales, Memorial Day Sale, 4th of July Sale, Labor Day Sale ect....... But.......you can ask for it at any time from any dealer, some will yell you it's not available or they will refuse to do it.

[@raymonheyer1801]

that's literally not how any of this works

[@motorcitymanman7711]

@@raymonheyer1801 How about a explanation?

[@christravels4704]

100% incorrect

[@Ezekiel33USA]

Unlike a lot of states the state of Texas does charge full sales tax on a leased vehicle up front and if you decide to purchase the vehicle at end of lease do not terminate it at dealership or you will be paying the sales tax on the remaining amount you are purchasing the vehicle for. The dealership will sell the car to you as a used vehicle and to the state of Texas it will look like a new sell thus why you pay the sales tax again. Always purchase vehicle from leasing company directly, so you don’t have to pay sales tax again.

[@ROMANEMPIRE69]

Thanks for the info Dexter Holland! When is the next Offspring music video coming out? 🤪

[@benitojr4332]

i feel like, Every dealers Sales are at the Mercy of Banks Approving clients, matter how pushy Salesman is!

[@antoniogonzales3206]

No down payment with a credit score of 650 or higher. Not a lot of people know this

[@M0chaJ0J0]

antonio gonzales how come?

[@Vongaming12]

antonio gonzales why?

[@JustinWayneDawg]

Well? Why? Explain yourself.

[@Joseph96752]

How the fuck explain please

[@nkemeze1768]

My first car I financed I made no down payment with a credit score of 699.

[@jimmydeen58]

Excellant Video Mike..

[@ericf.4286]

A down payment is not a scam but you always need to look at dealer fees. Dealer salesman always want you to focus on the monthly payments and that how they cover up what you're actually paying for your car. If you're buying a car make sure your getting the vehicle at a good price, calculate taxes, title and then plug that into a car loan calculator. Also always negotiate your interest rate. Some financing companies let the dealer raise your interest rate and so that they can earn revenue over the lifespan of your loan.