How to Get the Best Car Deal
Are you looking for a great deal on a car? Car buying can be a daunting process, even with the aid of tools like dealer websites, online auto trading, and the Kelley blue book becoming digital. As you look around to see each dealership offering you will find a wide variety of car pricing, with the sales manager often employing flashy sales techniques. A sales manager can use these sales techniques to get you into a test drive, and entice you into a financing offer or car loan with a long loan term, monthly payment and high interest rates. This can lead to a door price (total cost) far higher than the sticker price, which is already inflated from the invoice price. So how do you make sure you walk away with a good deal (and maybe even an extended warranty?). Here are some tips to make sure you get a great deal and keep your total cost down when car buying.
1. Don’t use credit, limit yourself to what you can pay with cash. You might need to downgrade your purchase aspirations, but if you enter a financing offer or get a car loan you will be paying a much higher door price. For example, a $10,000 dollar vehicle financed at 5% APR for four years would result in $11,000 total paid: You’re paying 10% extra just for the cost of borrowing money! And never, ever, use a credit card to make such a large payment!
2. If you are using credit, get pre-approved by a bank or car loan company before approaching the dealership. You will almost always be able to get better interest rates and auto loan terms from these institutions than the dealership offering. If you are able to talk to the sales manager with your car loan term and monthly payment pre-approved, you can spend more energy negotiating a great deal like extended warranty. It needs to be said again, for young first time buyers: NEVER USE YOUR CREDIT CARD! The rates on a missed payment could sink you!
3. Research the vehicles you want to see before walking into the dealer. Really do your homework! A good sales manager can take the uninformed customer for a ride (pun not intended) towards car pricing far above your capacity, but if you have already secured financing and narrowed down which vehicles you are interested in then you can easily compare sticker price to find a great deal. Tools like Kelly Blue Book and TrueCar are most useful once you already have a few models in mind to compare.
4. Additionally, your research should tell you the true cost of owning the vehicle. There are all sorts of hidden costs which depend on the vehicle: Depreciation, the gas cost, maintenance, and the differing insurance rates for each vehicle can make a big difference in the lifetime price of the total cost of the vehicle over its lifetime. If you read about common issues with the vehicle, you can look for them during the test drive and bring them up to the sales manager, and you will know whether you are purchasing a vehicle which really requires an extended warranty.
5. The timing is important, and so is the age of the vehicle. Look at the dealership offering of older vehicles: A sales manager hates to have old inventory sitting on the lot, you can get a great deal from finding these vehicles and pitching an officer close to the invoice price. The time of the year will also play a major factor here: the end of year sales are usually the best times to find a good deal as sales managers attempt to unload last years car models. You can even benefit from the sales manager having to meet their monthly quota by coming back at the end of the the month for a discount on the sticker price!
6. Membership warehouse stores like Costco or Sam’s club sell new cars! These large membership commercial giants have already negotiated a good dealership offering, so going through them you can find a great deal with no need to negotiate with the sales manager yourself.
7. Avoid adding options and higher trim levels. These increased option levels do not hold their value during resale, their expensive addition will depreciate more rapidly than the invoice price of your car. Also avoid the dealership offering options like undercoating, custom paint, or fabric protection: The price quotes for these minor additions will be far higher at the dealership than you can find elsewhere after purchase.
One major option to avoid shelling out money on is a larger wheel size. It will cost you a lot more to make the initial purchase, and you will be paying for that increased door price in your monthly payment. Large rims will also increase the lifetime cost of your vehicle, with heavier tires and rims increasing your fuel consumption as well as larger tires being far more expensive to replace. Your extended warranty will likely not even cover tires and rims, so look closely to see if it’s worth i!
8. Learn to drive manual transmission / stick vehicles. So few people know how to drive stick that the demand for these vehicles is almost always higher than their supply. You can get a great deal with this skill! These stick shift vehicles typically have a lower invoice price right out of the gate, and over the lifetime of your vehicle you can save money on gas, as well as brake and transmission repair costs.
9. You can buy below invoice price! Most people think that you always have to pay a sticker price higher than the invoice price so that the dealer can make a profit, but in many cases the manufacture negotiates with the dealership offering incentives for moving certain vehicles. The sales manager knows their incentives, so get them under the invoice price if at all possible! It will translate to a lower door price and reflect in your car loan term.
10. Use your access to technology to snoop out a great deal. If you reach out to the dealership by email you can possibly get a price from their internet department which undercuts what the sales manager at the dealership has access to. Using email negotiation, you can be in simultaneous car pricing negotiations to find the best dealership offering or online offering. Once you find the lowest price through email, you can book the test drive for further in person negotiation. You should also keep your smartphone out while negotiating – you can refer to Kelley Blue Book, Edmund’s, and other online resources to verify what the sales manager is telling you. If you get a string of false or misleading statements, you know to leave!
11. You negotiating attitude can make a big difference in the door price you walk out with. You should be nice to the sales person or sales manager, and tell them that you are planning to buy as soon as possible so that they have ever incentive to give you the best deal. If you are bringing a trade-in, treat it like a separate deal and not as part of the negotiating process for the new vehicle to make sure that you get a good value for it.
You should also negotiate to pay less (or nothing) for options on the used vehicle, if you can convince the dealer that you didn’t want them in the first place. If a vehicle with a sunroof wasn’t on your list of priorities, you should think twice before accepting that you will pay extra just because the sunroof model is the only one on the lot! With your interests in mind, you can also ask the dealer to throw in cost saving extras to sweeten the deal: Floor mats, key fobs, free oil changes are all on the table. If the negotiation isn’t to your liking, be willing to actually walk away – you may get a dealership offering more in your favor when they decide in retrospect to salvage the sale.
Lastly and perhaps most importantly, as you wrap up the deal make sure you read the paperwork before signing anything! The verbal agreement with the sales manager isn’t enough, especially when it comes to numbers. Your door price could be significantly altered with even a small variation in interest rates. Don’t let a good deal be spoiled at the last step because you didn’t take the time to read over the paperwork!
My name is Dan. I used to work at the biggest car dealership in the country and now I teach. Fine folks like you how not to get f•••ed when buying the car. Now in this video, I want to show you some clips from a movie called Suckers. I have found this movie completely by accident. I was actually looking for some more, you know, creative inspiration, a little content that I can show you because I wanted to show you what some of the things are being taught to salesmen when you’re going to a dealership. So I wanted to show you some things that are being taught to salesmen. But I found this clip by accident. And then I actually watched the whole movie. This movie is frickin amazing. It’s called Suckers. You got to watch it. But if you don’t want to watch it, I’ll show you just a couple of things from it, which is about car sales. And it is so f•••ing true. Like. This is so real. I don’t think this could actually be made in 2018. How real this is. Let’s get started.
If you’ll come inside, then we can work out the numbers. Well, why don’t you go inside and get your boss’s best price and then come out here and tell me what it is?
Well, it doesn’t. That may, sir. You see, I need you to come inside and followed the papers. The other would look believe you hit his home. I’m serious, but I’m not coming inside.
This bald dude is looking at a car. He’s at the dealership. He was looking to buy a car.
He doesn’t look like he’s there to get donuts. He doesn’t look like he’s there because he is looking to get entertained by a salesman. He is not there because he has nothing else to do. All right. He is there to buy a car. And he is about forty five years old. Probably he knows exactly what the f••• is going on. He knows that salesman is just a mouthpiece for the dealership. He knows that salesman has no control over the price.
He can’t negotiate for sure. The only people that can you go vitiates is the GM or the manager of the dealership. That’s it. So this ball do this telling the salesman, go talk to the manager and tell me what’s the lowest price in the car. Because I’m not f•••ing around.
My time is valuable. I have family. I have a job. I got s••• I got to do in my house. I got a leaky roof. I get it fixed. I got a trim. The f•••ing hedge. I got to mow the grass. I get s•••. I have to do my actual house. I don’t want to waste time. Go give me the price. And that’s it. That’s what he’s asking for. The salesman is telling him you can’t get the best price by being outside. When you step into the dealerships lot, salesman has a couple of different things they have to do, which really comes up to only being one thing. So step number one, they have to take control of you. They have to take control of your time. They have to take control of your decision making. They have to take control of your money. They have to take control of the sale process. And they have to bend you over and f••• you. That’s what the salesman is there for. Pizza place doesn’t have a salesman. McDonald’s doesn’t have a salesman. When they go to buy a cell phone, they don’t have a salesman like they don’t. I want the cell phone here. Seven hundred dollars. Just wrap it up. I want to take it. That’s it. I want the pizza. Make it. I want to buy it. For some reason, those places don’t need a salesman. Do you know why? Because dealerships would not exist without salesmen. Nobody in their right mind unless they are being mind thought. That’s what salesmen are taught to do, is to mind f••• you. Unless salesmen can trick you into going inside the dealership and following every single little step that they tell you to do. That’s how they take control over you. That’s how they do it. And this guy is just trying to cut the chase and make sure he gets the best price by zakari. Get the f••• out. That’s what we all want. I want to get in. Get my s•••. Get the f••• out.
This is the sticker price. If you cannot come inside so this is the best we can do.
Maybe you don’t comprende a snowflake. I will buy this car, but I refused. Come inside.
Either way, now there’s two times in your life when you got to say this first is in the bedroom. Second, he’s in the dealership. All right. This guy is serious about buying a car and you can see him getting angry and the salesman is f•••ing with him.
Literally salesman has nothing else to do. Salesman in the car dealership sit there f•••ing around on their phone all day long. All day long. Playing video games, watching YouTube videos all day long. That’s what they do all day long. And if there is a customer that comes in to holy joy, there is. That’s a miracle somebody came in. Bunch of salesmen are going to swarm on them like I’m like f•••ing piranhas. And that’s why I teach people in my course. Donald, go to a Jewish ship. Unless you prepared unless you have your financing prepared, you know exactly what car you’re gonna be buying. Not seeing or test driving. OK. There’s only two reasons why I should go to a dealership. Test drive a car. You’re literally come in. Test drive a car. Get the f••• out. As soon as you’re out of their car, you go to your car. You don’t go to the dealership. You don’t go inside. You don’t bulls••• with the salesman. You tell. Thank you for showing me the car. I’m leaving. That’s it. Have some f•••ing balls with you. Thank you for showing me the car. Appreciate your time. Appreciate your skill. I’m leaving. That’s it. I’m not going to take a look at your best possible deal. I’m not going to look at numbers.
I know what numbers look like. 1, 2, 3, 4. I have seen numbers before. I’m not going to look at what can a sale you have. I am carried by your special. I’m going to go home by 60 minute course. Learn how to properly buy a car, find that car on the internet. Or if I don’t have time to do that, I’ll just have Dan and his team find me a car. That’s it. Why would they buy a car from you? Literally. Ask any salesman at the car dealership. Why should I buy a car from this dealership? Because we have best customer service because I’m so good looking. Don’t you like me? No, I don’t like you. f••• your customer service. I’m not f•••ing you. I don’t care how you look. Simple as that, like, really, why should you buy a car from them if they don’t have the best possible price? Why should you buy a car from them? You shouldn’t. You have to put your self in front of the dealership. You have to put your family first before the dealership. You have to prioritize your family saving money against them making money. Literally, when you go to a dealership, you’re in the ring. I’m going to talk about that later. But let’s let’s keep going here.
Said my friend.
Oh, God.
I gotta tell you, this salesman is so creative, like I actually like if I met this guy is in real life. I actually liked him. Look at this. He is going out out of his way to sell a car. Like this guy is doing whatever it takes to sell a car. He’s being creative. He is going out to make a f•••ing sale, you know, and he’s not being a dick. He’s not f•••ing around with this customer because he’s a piece of s••• person. No. He’s a piece of s••• salesman. But as a person, I think he’s actually a good person. You have to differentiate between a person and a salesman. Okay. When they’re a salesman, they put on their mask. They put under certain f•••ing tie and they have to pretend to be something they’re not. Not all sales people are s••• people, but all sales people, far as I know are pretty s•••ty salespeople. They’re scumbags. Here’s the thing. This person is doing all this f•••ery because his dealership because his managers require him to. The reason I was doing all the things auto was doing with the customers was because my dealership told me to do all those things. My ideal car sales would be What car? You want that one? Perfect. Let’s write it up literally. That’s it. They don’t even really need me. They just need a finance person. That’s it. If person comes to a dealership with the car they want to buy and they’re financing and ready from bank or credit union.
There is no reason for them to talk to a manager, to GM, to salesperson, to anybody except sign the paperwork. They can literally come to a dealership without a single word. Sign the paperwork and get the f••• out. Literally, the wholesale can take 30 seconds, but because dealerships are making their salespeople squeeze, you was a customer for every single f•••ing penny and make sure that you don’t get, you know, any serious discounts. That’s why salesmen are their salesmen are there. They’re like f•••ing, you know, a warrior with a shield and a f•••ing sword protecting profit on the car salesperson is like a bouncer in the front of the club. And that club is called profit. If you start getting into their profit. Is going to eventually say, hey, we’re not going to be able to sell you a car for a new low or not. Because they can’t. They just don’t want to because there is profit that went down to the lowest amount that they can sell that they want to sell. You know, they’re not gonna sell a car at zero profit. They want to make some profit. So what you’ve got to do is you’ve got to make sure that you find a car that you can get for the lowest price, because there’s hundreds of these cars there. It’s not one of them.
Almost done with the figures we have up for you.
What the hell is this?
Your payments? See, what this guy did was the best that he could have done in nineteen. They didn’t have Internet like we do right now. I teach all of my students to hop on the Internet and find the best possible deal, negotiate on the phone, do everything on the phone. I don’t care if you see the dealership from your f•••ing window. I don’t care if you drive by that dealership every single day. Do not go in to that dealership unless you’re going to sign the paperwork and pick up the car. Why would you go to a Jewish Shipton? You go, she couldn’t do that. You know, that’s ’90’s. They didn’t have access to information like we do right now. I teach all of my students, prepare everything outside of the dealership. You don’t need to go to a dealership even to sign the paperwork, even to pick up the car. Everything can be done outside of the dealership. When I find cars for my customers, they never talk to any salespeople. And they mean managers. They talk to nobody from the dealership. That’s the beauty of it. Like I am so excited when when somebody is buying a car with us. Oh, my God. It’s the best feeling ever.
Sometimes I’m like, how was your sales experience with the dealership? I don’t know. I didn’t talk to the dealership. I didn’t talk to anybody. But you do. And the amount of time that we actually spend talking was like maybe five minutes at the most. Yeah. That’s not a sales experience. There’s not much to judge. You know, they have no sales experience with the dealership. It’s the best thing ever.
Something that the salesman is doing is he is moving this guy’s attention. Does bald dudes attention this customer’s attention from whole price of the car into monthly payments? What’s your monthly payment? What’s your comfortable monthly payment? Three hundred dollars a month. Not a problem. We’ll stretch it out for one you five f•••ing years. By the time you die, you should be able to pay off this car. You don’t care about monthly payments. I don’t care about dumping mail and caring, but not that s•••. I care about the entire price of the car. I want 25 30 percent off the price of the car. That’s what I’m aiming for. And that’s what we all got to do. Well, that’s a little high.
You can also follow this girl. Thank you for stopping. No, wait, wait.
And the salesman is playing a little game here. Well, if you can’t afford you know, he’s he’s playing emotional games here. That’s that’s what salesmen do. They’re artists. They’re f•••ing corrode their karate masters. Mind games. Okay. That’s what they are. They’re like, meh, whether or f•••ing CONOR McGregor at mine. f•••ing people. It’s not that I can’t.
Well, can I get a better deal?
You have to give some of it is better to leave.
Are you kidding? These are harder to find. And tits on a catfish, especially in this color. I know.
That’s too bad. There’s something else that the customer did which I teach my people not to do that and my people as if it’s a f•••ing game. Hell yeah, we’re a f•••ing gang. So this is what I teach my people. Don’t tell the dealership that you want this specific car with this specific leather. You know, don’t don’t do that. Tell him you have three different options, you know, and most people have three different options. And most people don’t really care. They don’t have any specific really, really to the detail what they’re looking for. So you got to have control of the sale. Don’t tell the salesman exactly what you’re looking for. Let’s say you’re looking for a blue car with blue sheets. Don’t tell him that. Even if they have it on their lot and it’s the only one, it’s really hard to find. You go in and you test drive a white one with black seats. And then after you negotiated the price over the phone while you’re drinking a beer on your couch or eating a f•••ing cheeseburger on your on your you know, in your kitchen, you come in and you say, you know what? I guess I’ll take that one. You know, the one in the corner, the blue with the blue seats and the car and the salesman is like, okay, whatever. See, you got the best deal, you’ve got the car that you won, you got everything that you wanted, but you didn’t give any of the power to the salesman.
There was one other place you could have gotten a better deal where.
This customer here is looking for a Pontiac Grand AM. That’s what he was looking for. You said this car is very hard to find, especially with this color.
I understand that was nineteen nineties. He didn’t have access to Internet. But when you think you’re looking for one of a kind car or special car, it’s something so rare. What can a car you’re looking for? Lamborghini Kuhne Tosh, Ferrari 250, G.T. 0 forty eight million dollar car. What kind of car are you looking for? I guarantee you there’s thousands and thousands and thousands and thousands of the same cars that you’re looking for. And there’s at least a thousands of them in the exact configuration that you’re looking for with your exterior color, with your interior color and with the options that you want, unless you’re looking for something very, very, very specific, like exotic cars like Ferrari’s, Lambo, Range Rovers, Porsches, then, yeah, it’s it’s a different story. It’s a little sometimes it’s it is truly hard to find. But if you’re looking for a Ford Chevy, a Lexus means that the Yodok come on. It’s there’s thousands of these cars do not get hooked on to one car. What if it’s a really good deal? OK. Let’s see if it’s a really good deal. Send that car to me and I’ll tell you if I can find anything cheaper. Start researching the Internet. Is that a really good deal? Is it ten thousand dollars cheaper than anywhere else? If it’s not that, probably not. It’s not a good deal. If it’s not at least $5000 dollars cheaper. It’s not a great deal, really. There’s a shift on the cars like this everywhere. Don’t be afraid to walk away from the sale.
Don’t ever be afraid to walk away of the sale. This video is getting a little long. I was hoping to have it short. I’m actually going to have a second part of this and I’m going to upload it tomorrow. Now, the second part for this video is going to be a link in description. So go to description, click that link and you’re gonna be able to see second part for this video. There’s actually a whole different scene from this movie that I want to go over. Hey, if you enjoyed this video, give me a thumbs up. Below and lick the subscribe button over my head or watch one of those two videos if you want to see more money saving tips about cars. This is Dan with 60 minute car. I’m signing out and I’ll see you on the Internet.
