Things You Should Avoid Saying When Buying a Car

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[@CarEdge]

Thank you for featuring our video, Rachel. We appreciate your perspective and are proud to see you referencing our content. We would be thrilled to collaborate with you if that would ever be interesting. - Ray & Zach

[@OfficialSeth]

I love you guys.

[@NeilNatic]

Car edge is an incredible resource. Take them up on it.

[@sandyseibelhager7131]

Love you guys. I just subscribed to your channel.

[@VeryCoolAlan]

Yes! I want to see this! 🎉

[@abrareads]

Great advice guys!

[@willcasp]

The point Car Edge is making is not to necessarily finance. It is to keep out of the monthly payment conversation. The dealer uses that to make more profit on the car. Keep the conversation about the out the door price. The cheapest way to buy a new car is to work out a loan with the dealer, let them pull their financing shenanigans. Check the contract for no prepayment penalty.. and then just pay the bank as soon as you get home. Same as cash, but you may be able to negotiate some of the money the bank is giving the dealer for the loan into the price and lower it further. Ethical? debatable. It is business. It is in the contract.

[@SilverPonyProductions]

I just bought a car and there was a $2k “discount” if you financed through the dealership. (Without this, the car was overpriced). I checked on the no prepayment penalty and just paid the whole thing off in 3 months since I had the cash to do so. And I got the boost to my credit score for having paid off the “loan”.

[@aolvaar8792]

The Rule of 78 is a method used by some lenders to calculate interest charges on a loan. The Rule of 78 requires the borrower to pay a greater portion of interest in the earlier part of a loan cycle, which decreases the potential savings for the borrower in paying off their loan. There is a box on the loan agreement.

[@sidewinder3434]

Awesome video Rachel ! Thank you so much for sharing !

[@travisharms9772]

Chevy dude also has great content to work through car deals. CarEdge brings all these details and explains them so well. Car salesmen make deals every day and it’s important to remember they are way better at this than you. Like not even close. I’m working through getting a truck for my business and I’m planning to pay cash. It absolutely makes you think much harder about what I actually need to do the job.

[@coryvb3056]

Great advice, appreciate it Rachel! Thank god I just purchased my Tesla online in about 10 minutes. No 2-3 hours dealership wait and haggle junk. That said, my wife wants a hybrid Toyota Highlander this coming year. So I know we will have to play the lame dealership game and use your advice.

[@kckuc310]

I like these guys , great video perfect example of spending more with credit.

[@thedopplereffect00]

No more stealerships for me. Bought my last car from Tesla. No high pressure sales tactics. No sitting in a room with a sweaty finance guy for an hour. Did the whole process on my phone while sitting at home.

[@luaragreen4429]

I appreciate the knowledge you've provided, There’s this woman I got in touch with during the last economic recession which cost me my job. Ms. Norman Davis helped me manage my assets by introducing my to the best trading method, I earned a lot of $$$ working with Norman at the comfort of my home. I still keep in touch with the amazing lady

[@haleyconnor5365]

Hi there, I’m commenting from Switzerland . Interesting to know she connects with people from different parts of the world. Such an ambitious woman. I got in touch with Ms. Davis early this year. As a newbie in the market, I had little knowledge on predicting the stock market, but with Ms. Norman weekly analysis and advise profits are guaranteed! I received three times my initial deposit in a week!!

[@damontolhurst]

My main strategy, which they suggest without saying directly, is to not tell them any more information than is absolutely necessary at the given moment. I always pay cash, but never tell them that. Let them think it'll be financed so they're willing to commit to a lower out-the-door price (since they can assume the profit will come from financing) before bringing up how it'll be paid for. Don't tell them your preferences, why you're buying, what timeline you have, what your budget is, anything. Ideally, you can say, "This car, this much out the door: yes or no?" And always be willing to walk away.

[@damontolhurst]

Has that happened to you? I haven't encountered that. The other option is to take take the financing, then just pay it off the first month (having made sure there's no penalty for that).

[@vickieclark5931]

@@damontolhurst That's actually not a bad idea. Then you could get a lower price for the car with them assuming that you will be making monthly payments for the next 8 years. They worry about how much they will make off of tens of thousands of dollars of interest that you pay than what they will make off of the car itself.

[@tomdriscoll7041]

If you watch Ray .. kind of regular basis like a lot of people do, they're very informative very intelligent. The reason they don't talk about paying cash is you will always get a better deal on. A new car because of their loan set up ...and then they tell you to pay off your loan,with cash, Once your first payment is set...

[@andidede3653]

Maybe once upon a time it was not a good idea to tell the dealer that you were not paying cash but today I would be surprised if those tactics work. It's not like they don't know what people are trying to do. Like you said the main focus should be out the door price regardless of paying cash or financing, you know what the total amount you can afford for that car to be and that is it.

[@mdees88]

@@andidede3653 These tactics still work perfectly. I bought a 2024 Camry SE 2 months ago. During the price negotiation (and after already reducing the price some), he asked how I was paying. I told him I was looking into financing it. We negotiated further and he reduced the OTD price down even more when I agreed to finance with the dealer at a terrible interest rate. We finalized the loan and I paid it off in full on the first payment. Had I told them upfront that I was paying cash, they would not have lowered the OTD price as much.

[@arcane7298]

The guys in this video recommend paying cash, but you shouldn't tell the dealer that because then they will inflate the price of the car to recoop the profits they are losing. Instead, you pretend you are financing and get them to nail down the out-the-door price. Only after you have that agreed upon price should you tell them you are paying cash.

[@aolvaar8792]

The Dealer started out with the Out-the-door price and added there was 0% interest, if I wanted to finance.

[@sabrinaliu66]

Remember to shop around before buying too gonna do your homework

[@haley2486]

I watched their videos for months leading up to purchasing another pre-owned car. They were so helpful and I believe it helped me to not get talked into upping my budget and I walked away with a great car in my budget.

[@Bethelgal42]

When we bought our used Sienna van, we were up front about what our budget was. The sales guy knew that we weren't financing and we weren't paying more than a certain amount because that's how much cash we had. When he got to the part about selling us the Extended Warranty, we told him we couldn't purchase the warranty because that went over our budget. The salesperson lowered the price of the van enough to fit the warranty within our budget. Win-win. We got a great deal on the van and he got his warranty commission.

[@trebmaster]

If you look like you don't know what you're doing, you're going to get preyed upon by the sharks.

[@Retiredmco]

Car edge was very helpful in purchasing my CPO 2023 Hyundai sonata limited couple months ago. OTD price is must. Rachel both ray and Zach were pleased by you showing their video clip.

[@hanwagu9967]

not a nicer car, you mean a more expensive car.

[@stevenanderson3151]

Near the end of the video you mentioned a car is a depreciating asset. I look at this a little differently at time of buying. When I go to buy a car/truck I look at it as an expense that will continually depreciate in value over time. This way when the care salesman tries to present a vehicle as a investment or asset, I politely turn that around and say no this is actually a calculated business expense that will depreciate over time. That stops the salesman's approach of trying to convence you this is a great investment and for a little more you can have an even better investment....

[@cdewey5115]

I purchased my 2011 Honda Accord and drove it 10 years with no major problems except routine maintenance. I sold it in 2023 for 2000 less than I had initially paid for it. Then, I purchased my next vehicle. I think the key is to not get caught up in having to have a new car every other year like so many I know.

[@rg-mi5hh]

Such good information! What a game they play. Service agreements are not necessary either. If something on your car breaks and it costs $2500 just take it to a mechanic to fix it. No need to buy a service agreement for that. You may never need it. Waste of money

[@aolvaar8792]

Someone tried to steal the car and activated the Theft CPU, which wiped the memory. No fobicks to start the car, Dealer said: $6K to make a pair of "keys" had to scrap the car. Everyone else said: you HAVE to take it to the Dealer. They will install a new Theft CPU and program it. A Factory Rep has the Super-secret unlock to program. The way of the world. $250 for a brake module, AND $250 to "wake" it up. I bought a new car, $900 for "Key" insurance, The car only holds 2 keys in memory.

[@aolvaar8792]

Saying you have a loan approval at your CU, is the same as saying you have Cash.

[@A2thaLO]

I walked in last week, not pre-approved, and bought a certified pre-owned car. After my trade and $1k down payment, I owe less on my new car than on my trade 😃.

[@generector8583]

Lawyers for Americans All numbers from a car dealer are useless, most are made up. What you want to know is the total amount for the new car when paying cash, in other words, the amount that you put on the check and is this amount with or without tax. The amount should be agreed to by both parties and including the vin number before you go into a dealership. You have to decide whether this is a fair price. 1. Objectives : Establish total or the check amount price is with or without tax and with the vin number 2. Alternatives : Find dealership with base models in stock or in route that have listed the correct MSRP and a less insane destination. No destination should be over 600 in your calculations. You can travel great distances, to almost any dealer due to insane markups. 3. Offer or Counter Offer: Calculate your offer Copy this into your email.

[@gekkehenkie0001]

Maybe I am naïve on this, but when buying a car I know what I can spend (cash that is) and what kind of car I would like for it. So I would go look for that budget and that type of car. This whole "being unprepared" when being at a car dealer sounds like buyers NOT preparing or even knowing what they want. This whole "buying on credit" thankfully hasn't poisoned all people here in "socialist" Europe

[@paristroopa]

Jesus Christ is Lord & He's coming soon ❤️🙏🏻👑

[@jmtraylor1]

Awesome video. My son worked as a finance manager at an RV dealership. It is shocking what they do to customers to take more of their money.

[@suzanrupp3902]

Cash, cash!!! Thank you Ramsey people for teaching us!!! We only pay cash!!!

[@maxwellspeedwell2585]

“I still can’t afford a new car.” -Warren Buffett

[@emoney1231]

ALWAYS get multiple offers for a trade-in. We were offered $4000 as a trade-in, and one salesperson told us that the most we would get anywhere else would be a few hundred dollars more and it probably wasn't worth our time to look around. Luckily the salesman we liked better suggested the Carmax 2 minutes away, and they offered us $7500.

[@thedopplereffect00]

Carvana and car max will often pay more than the cars are worth and won't do thorough inspections for problems. It's amazing they stay in business

[@emoney1231]

@@thedopplereffect00 Yeah, I've known multiple people who had issues with cars they've bought from Carmax. One of them got a new engine provided by Carmax at least.

[@DanielGarcia-zz9eg]

I purchased my 09 ram new. Got tried of buying ppls problems It's 14yrs old going 15. It may have lost 80% of what I paid but last 11yrs I have gain it back over 2 1/2 times back. Meaning I put 750 a month back in my pockets since 2013. No car payments and no ppls problems because I take care of the maintenance, I know how it's driven. Nothing wrong buying new as long as u keep it 10 to 13yrs Was it hard to pay 4yrs 0%? Not really Did I live paycheck to paycheck? No For once it felt good knowing no more break downs and dealing with mom and pop shops Now since 9yrs old to 14yrs old it has cost me on average 1,600 in worn out parts and maintenance which is still cheaper then today's car payments. Gonna ride till it blows up

[@philipgerry5228]

My wife and I buy new and keep car 10 years. With 2 vehicles we try every 5 years so one is always newer.

[@tduck828]

Agreed. I'm still driving my 09 as well!

[@d3r3kyasmar]

Car dealership will hate this video.

[@martyi398]

We purchased a used car in cash for a family member recently, happened to find the SUV we was looking for at a dealer lot on the last sales day in September, it was on the lot for over 45 days and price had been reduced they were holding off sending SUV to auction, we made an offer got a great deal (close to wholesale price) paid cash and refused to pay for any add-ons, spent 2-3 hours in the dealership it was brutal although worth the time spent to close the deal!

[@floridanativelh568]

Excellent video. So well done. Those two are awesome ❤

[@masonr1666]

So, here is a conundrum: Let's say you want to get out of debt. The suggestion is normally to "sell your car..." What do you do after you sell it, and you only have $1,000 or less in equity? How do you get back and forth to work? Or, do you change jobs so you can simply walk to work? Or, does it make better sense that as long as you have debt, you must have a Second Job to fulfill the baby steps?

[@anthonys5568]

Go eccentric when you go cash, It can stymie a dealer. I have a Labrador Retriever and made a Jeep dealer let me take the Dog out for test drives on a few of their models. If she could not comfortably stick her head out the window from the back seat and enjoy the breeze - it is NO DEAL on the model. And it worked! I got price cut, a free extended warranty, and free Weather Tech floor mats. Dog hair and slobber is a good motivator to get the car sold and off the lot.

[@masonr1666]

The assumption you make, is that you are a good negotiator, when you attempt to do a private sale. Furthermore, that you will locate an honest person. For some of us, this isn't in our skill set. How many hours will it take you to find a seller, verses how much freedom do you get by using a dealership so you can work extra hours at a side job.

[@kathleenmathews6096]

I had a salesperson ask me what I wanted my payments to be. I asked what the price of the car was. This went back and forth several times until I finely said I wanted my payments to be $100 a month. He was upset and informed me he couldn’t do that. I replied, then don’t ask ME what I want my payment to be. Note: this was for a company car. I paid cash for my auto.

[@MiraMira0ntheWall]

So helpful. About to purchase my first car. ❤

[@15KHPCLUB]

The sales rep asking me how I’m going to be paying before I even run a background check, perform a road test and hook up the Autel aggravates me the most out of everything.

[@backyardgrillmaster2910]

I don't care for this father and son what channel is all about fear tactics in Big Bend claiming that the car market has been dead and coming back and the used car market is going to fall and they just say things to get they're just clickbait they might have a few things but they don't they don't have a channel those two are clouds just like the other ones are clowns that they just try to fear Monger the whole thing there's no way I would respect the Ramsey team if they would collab with those two

[@Justicenow6510]

I agree. Found them a while back, was interesting..then I noticed the same thing...they have been saying "hold" for a long time, but keep watching us. I no longer watch.

[@briangistover5050]

You really should do your research to couch your answers. Car Edge has talked about paying in cash. Just not in the video you reviewed. Your research team needs to do better

[@kckuc310]

It’s a great video and you complain?

[@sabrinaliu66]

Rachel is awesome!

[@MadmaxMusic93]

Red flag only cash nope 👎