😮How To Buy A Used Car From A Dealership-Ex Salesman Exposes Their Trickery🚗 (2023)

Introduction

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How to buy a used car from a dealership . How to buy a car from a dealership can be very confusing stressful and exciting all at the same time. I have many years of experience in selling cars as well as buying them. In this video I explain how to buy a car from a dealership the right way. Be careful and keep your eyes on your money and don't get ripped off by being led astray.

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KW's:
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Video

Hey: what's going on everybody, it's rodney here again with another video about buying a car.

Okay, this video is going to help you not to get ripped off when you're at the dealership.

Looking at a new car all right for those of you don't know, I was a car salesman for quite a few years in the business, so I know a lot about the ins and outs of buying cars.

I've been a salesman.

I've also been out there buying cars, of course.

So I know I know the game, so I'm going to teach y'all something that you need to look out for when you're at a car dealership so that you don't get ripped off.

So you can keep some of your money in your pocket and you get good deals.

All right, don't forget to give this video a thumbs up and subscribe to my channel, because on my channel I teach a lot about financial things.

I have a lot of videos on my channel about real estate, investing um, so just um give it a thumbs up check out my channel subscribe to the channel alright, but this video here is going to be about cars when you're in the dealership looking to buy a car all right.

I want you to keep your eyes on the prize, which is your money.

You want to keep your money so you're, going to a dealership, you're ready to go you're nervous, you're excited at the same time.

I know I've been there so when you go into the dealership, looking you're, not always thinking clearly you're kind of emotional, all right and it's uh very easy.

It's very easy to get misled all right, so I'm going to draw something on the board that you've probably seen out there and if you've seen this before or some variation of it before leave a comment down below and let me know all right.

Let me know how it worked out for you if you've seen it, what I'm going to show you you you've, probably seen it or some type of variation of it.

Okay.

So here we go, and if you see me looking down I'm just looking at my notes, because I don't I want, to make sure I don't miss anything all right.

So this is called a four square.

All right check this out, you might see something like this up here is your trade-in.

This is your msrp, which is the price of the car okay, money down down payment right here and over here monthly payment.

Now I'm gonna put some numbers on here: okay, you don't necessarily have to pay attention to the numbers and see if they all add up to make sense.

I want you to just grasp the concept.

These are going to be hypothetical numbers on a hypothetical car, but the concept is the same.

You got to keep your eyes on the money all right.

So let's say you look at the car.

You're all excited you're ready to buy it.

You think you want to buy it.

You go to the you.

Go into the dealership.

Right, you're, nervous.

They sit.

You down at the desk and like okay, so you know they.

Start talking to you.

Making friends with you becoming your friend right and you decide? Well, you think you want to buy a car.

I said: okay, you! Let's do this right, so they present you numbers and it looks like this.

They might present something like this right.

So let's say you have a trade-in okay and they offer you three thousand dollars for your trade-in.

Okay, the price of the car you're looking at is 25 000, all right money down five thousand dollars out of your pocket, all right and your monthly payment.

They might show you something like this.

You'll be at 375 a month for 60 months, you'll be at 360 a month for 72 months or you'll, be at 3 45 a month for 84 months.

Okay, so they present you with these numbers and they say okay, which one of these numbers right here.

This monthly payment is comfortable for you now.

This is where we all fall victim right and it's our own thinking.

It's our own lack of knowledge.

I want to say a lot of us are monthly payment buyers.

All we want to know is we need a new car.

We want to know, can we afford this monthly payment plus our car insurance? So a lot of us are only thinking about this monthly payment here.

So that's why they start off with this monthly payment.

They start off down here in this bottom half.

What monthly payment is good for you, okay! Well, you might pick you might be thinking in your head.

Well shoot! I like this 345, because it's low 84 months, that's a long time to be financing the car by the way, the longer you finance a car, the more interest, you're gonna pay all right, so five thousand dollars down right now, you're, like man.

First of all, I don't have five thousand dollars down.

Okay, I can't do five thousand dollars down the salesman, might say something: well, okay! Well, how much do you have down? Well, you say- oh, maybe I don't know- maybe I might have I don't know 2000.

Maybe salesman says I don't know man 2 000 down.

If you only put 2 000 down here, these payments are going to go up.

It's simple, math, less money down means your payment goes up.

Okay, so they might switch it back to the car payment.

Well, where are you trying to be at every month? Where do you need to be at every month? Well, I'm trying to be at 300 a month.

Okay, 300 a month you got 345 for 84 months.

I don't think we're gonna be able to get there in order to get there.

You're gonna need a whole lot of money down all right, so they're gonna play this game back and forth here now, keep in mind with these numbers here these payments that they're showing you these payments are high, they're sky, high they're loaded with profit from the beginning, loaded with profit for the dealership to go in the dealership's pocket.

All right, you got to keep that in mind, so what they want you to do with they want you to work.

Them quote: unquote, work them down to a comfortable payment here and a comfortable amount of money down out of pocket here.

Okay, they want you to work them down, and what will happen? Is you work yourself down to some place where you think you're comfortable, but that price is still profitable for them? Okay, so they bring you up high and then they let you work the way down all right.

They're gonna play it again, going back and forth to the manager.

Oh, they only have two thousand dollars down right.

Okay! Well, if you want to do 84 months, this is gonna shoot up to.

I don't know 370 with 2 000 down now.

The real problem is up here with the trade-in and the msrp.

They want you concentrating.

They want you concentrating on this, because that's where we all train to concentrate on the monthly payment and money down out of pocket.

But up here is where you're getting jerked around.

Okay, your trading value.

This trade-in value has to show you three thousand dollars that trading value.

Your trading is probably worth six five, six seven thousand dollars, but they're only showing you it's worth, three thousand guess where the extra money goes right in their pocket, that's profit for the dealership, so you got to know what your trading is worth.

Okay, the msrp 25 000., you probably didn't even pay pay attention to the msrp on the paper, because you already know what the car costs out there, but you're not negotiating a good price on the car.

Your mine's, not there you're all you're worried about is.

Can I afford this carving month down here you got to work yourself, a deal on the car and on your down payment.

I mean.

Excuse me on your trading value, all right.

You got to work both.

Let's bring this to another point.

This is why I have another video where I explain this: how about trading in the car? If you have a trade-in with the old money on it or not, I recommend bringing the trade in to the picture last.

If they asked you, if you had to have a trade-in, you say you know what I don't have a trade and I have a car, but I'm I don't even think I'm going to trade it in, but you really are but you're going to bring it in last.

The reason why is this gives them all you have to only all the dealership is working with is the price of the car.

They can't jerk you around on a trade-in value, okay, because they only have one item to negotiate with on here, which gives you the opportunity to negotiate on the price of that car.

All right, you get this price of the car down as low as possible.

Right now that you know that you have a good deal on the car, then you say: okay yeah! I do want to trade in my car and you bring in your trade-in right.

Go to kelly blue book find out what your trading is worth, because you don't want to get jerked around on your trading value all right.

They don't really like when you do that.

But if you do it that way, you'll be better off okay and don't be surprised if they lowboy you on your trade because they know they already gave you a discount on the car you're saying you're not going to go back on your price on the car.

You already told me I'd get this 25 000 car for 23 or whatever right, so they might come in and lowball you on your trade-in when you bring it in last.

They don't really like that.

So that's why you got to know what your trading is worth and fight for every dollar.

You can get all right, but the moral of the story is don't be fooled by just concentrating on your monthly payment and your money out of pocket, because this is loaded with profit for them make sure you get a good trade-in for your car and a good price here.

The dealership makes a lot of their money most of the money on a car sale here right here, and you know how they do that it's called interest financing.

Here's what happens.

They tell you 375 at 60 months.

So let's say you have decent credit and your credit and the interest rate they're, giving you when you get back to the office to fill out your paperwork, you gotta um, 12 interest rate hypothetically.

They say: you're financing at 12, really the bank that they're putting you through the the wells, fargo or whatever xyz bank that that's financing the car for you is giving the dealership 10 interest.

Okay, they say: okay, we're gonna, approve mr customer for this loan at ten percent, but the dealership, when you're sitting down in an office signing papers, tells you that your finance rate is twelve percent.

Guess where that two percent of interest goes right into the dealership's pocket, that's profit for them, and it's all built in to here another thing: to keep in mind these numbers here, a lot of times, they're padded with enough room to get you a warranty.

You know the aftermarket warranty that you buy that covers you for an extra 100 000 miles after the factory warranty.

Those warranties have two prices.

They have the price that the dealership gets it for and then there's the price that they sell it to you.

For so they might have a hundred thousand mile warranty for 500 bucks, but they sell to you for a thousand and you you buy it and it bumps your payment up a little bit right, but you're paying for it over the long haul.

So maybe a payment only goes up 15, but you're still making a higher payment because they're selling to you at a markup, okay, warranties, are a good thing to buy.

I always recommend you buy a warranty, but do yourself a favor ask them if you can get it at cost? Okay, let's say yeah, I buy a warranty, but why don't you give it to me at cost? Keep in mind that a lot of times your warranty money is already built in here.

They can give it to you all right.

Just keep those things in mind.

Keep you up keep your eyes on everything on the board.

Okay, everything is important, but don't don't forget to get a good trading value and get a good price on the car.

Don't just concentrate on your monthly payment all right.

I know it can be kind of hard to do.

You're excited you're nervous all right, but make sure that you're doing it right when you're in there.

All right, like I said, give this video a thumbs up share.

It leave a comment down below I'll answer.

Any questions.

I can alright see you guys next time.

Good luck out there.