A former car salesman reveals 4 tricks dealers use to get you to spend — and how to outsmart them

[jagu]

no... he is right, but 30 days is too short a period


insist on no early termination penalty and READ the contract- make it a deal breaker

with cash on hand, you can save $5k to $10k, by paying off the car in 3 to 6 months by financing, a good way to knock off the sales tax if you live in NY

You don't save anything if you pay in cash but the few finance charges on the interest.
As they said above, the sales price will not change if you buy in cash. In fact they will be more willing to screw your because they're not making a cut on the financing.
Interest rate is so low these days, it makes no sense to throw valuable cash on a $30k car whe you can finance for 1.99%.

Also, most manufacturers throw in a shit load of incentive if you finance through them. I got an extra $2500 off my car for using the manufacturer's lender. The cash guys got nothing.

 

[PDQ21]

Can't front they got me for sum protection money on sum bullshit lmao but it's all good cause I use everything

Made them honor everything

 

[jagu]

How is paying interest on a depreciating asset any less stupid? By the time you've finished the car payments, you've paid more than you would have had you bought the car outright

Remember sir, interest is the penalty one pays for their excess consumption.

Enough with the elementary thinking. If you had $100k to buy a car or do something else with it. Why wouldn't you take the cheap financing of under 5% and do something gainful with the money. Oh wait, you heard it in bgol and ran with it. Lol

 

[RepostKing]

Enough with the elementary thinking. If you had $100k to buy a car or do something else with it. Why wouldn't you take the cheap financing of under 5% and do something gainful with the money. Oh wait, you heard it in bgol and ran with it. Lol

Jag any way you can give me props for using my home's equity on a rental property that cash flows instead of buying a BMW 5 series?

 

[nibbs]

Enough with the elementary thinking. If you had $100k to buy a car or do something else with it. Why wouldn't you take the cheap financing of under 5% and do something gainful with the money. Oh wait, you heard it in bgol and ran with it. Lol

If you had a $100K for a car, clearly you're of the means where "doing something gainful" with $100,000 is not a concern. It's play money.

 

[jagu]

If you had a $100K for a car, clearly you're of the means where "doing something gainful" with $100,000 is not a concern. It's play money.

Most of those people lease, which kills your statement about paying interest on a depreciating asset.

 

[jagu]

Jag any way you can give me props for using my home's equity on a rental property that cash flows instead of buying a BMW 5 series?

You couldn't buy a five series if you sold yourself.

 

[RepostKing]

You couldn't buy a five series if you sold yourself.

It was a 2002. It cost 18k with 180k miles. But its what I can afford...all I can afford really. Just wanted to see if you could give me props for making a better choice is all.

 

[Dr. Truth]

Enough with the elementary thinking. If you had $100k to buy a car or do something else with it. Why wouldn't you take the cheap financing of under 5% and do something gainful with the money. Oh wait, you heard it in bgol and ran with it. Lol

Ignore that troll he never copped a car over 10 grand in his life. Talking about paying cash is better. Yeah if you buying a pos beater.

 

[bwb]

are any of you actual car salesmen, or have worked as salesmen at some point? It seems like there is no real magic formula to getting the best deal. If you do not have the cash, then you finance. It would seem that financing would only be about comparing interest rates between what the manufacturer is offering, vs what your bank or credit union is offering. That should be a simple binary decision, right?

There seems to be no best time to buy. There is always a 'promotion' going on, and they always have to talk to the 'manager' to make you think you are getting a deal. They would not sell a car at a loss for them, since they are a business, so any thing they offer is still in their favor somehow.

 

[Aww Skeet Skeet!]

are any of you actual car salesmen, or have worked as salesmen at some point? It seems like there is no real magic formula to getting the best deal. If you do not have the cash, then you finance. It would seem that financing would only be about comparing interest rates between what the manufacturer is offering, vs what your bank or credit union is offering. That should be a simple binary decision, right?

There seems to be no best time to buy. There is always a 'promotion' going on, and they always have to talk to the 'manager' to make you think you are getting a deal. They would not sell a car at a loss for them, since they are a business, so any thing they offer is still in their favor somehow.

Not a salesman but I've helped buy about 6 cars last year including my own. Getting the best price is a crap shoot. I avoid holidays and weekends (too many buyers) and start to launch my emails 3 days before the end of the month. I get the email addresses of at least 6 dealerships sales mgrs / Internet Sales mgrs and ask them to provide me their best out the door price (taxes, title, fees... Everything). Ideally, if they provide the best price, then that's the best I can expect to get in the region. It's not always true, but it's a start. Hopefully, 1 dealerships plays ball and comes in with a low price. Then I take that price and shop it against the other dealers. Usually, other dealers compete until the price is too low for them.

The only time I step into a dealership is to a) test drive a car and b) pick up my car. I don't have time for the gamesmanship at the dealership. I present myself as a serious buyer via the email ready to make a decision in the next 3 days.

Oh and interest rates may not mean shit. Start with total cost of financing, make sure loans you're comparing are appples-to-apples, check terms, and fees.

 

[jagu]

are any of you actual car salesmen, or have worked as salesmen at some point? It seems like there is no real magic formula to getting the best deal. If you do not have the cash, then you finance. It would seem that financing would only be about comparing interest rates between what the manufacturer is offering, vs what your bank or credit union is offering. That should be a simple binary decision, right?

There seems to be no best time to buy. There is always a 'promotion' going on, and they always have to talk to the 'manager' to make you think you are getting a deal. They would not sell a car at a loss for them, since they are a business, so any thing they offer is still in their favor somehow.

I was a very successful car salesman and F&I guy too. I had a 98% customer service score and made very good money. The only formula for finding the best deal for yourself is to do your research and display the serious intent to buy and the ability to pay in cash or finance. For new low priced cars like Camry, just look at the newspapers and look for the advertised car and just buy the ad. car. Yes, they usually have it in stock. If they don't have it in stock, ask them to take a similar percentage of the one that they have in stock.

As for higher priced cars, do your homework. They way that I do it is simply go to message boards dedicated to those products and ask people what they are paying and whom they've dealt with. You can also find out the current incentives available for that month and that car. I got $12k off my 535I in 2013. If I had just walked into the dealership, they would have given me about $5k off the price and kept it moving. I ended up buying the car from Arizona and shipping it to Atlanta.

As I also posted here earlier this year, if you belong to Costco, I would go through any dealership that has Costco pricing. Costco has negotiated with some dealers that they will provide their customers with the best available pricing, including incentives.

 

[KINGSAPIO]

You don't save anything if you pay in cash but the few finance charges on the interest.
As they said above, the sales price will not change if you buy in cash. In fact they will be more willing to screw your because they're not making a cut on the financing.
Interest rate is so low these days, it makes no sense to throw valuable cash on a $30k car whe you can finance for 1.99%.

Also, most manufacturers throw in a shit load of incentive if you finance through them. I got an extra $2500 off my car for using the manufacturer's lender. The cash guys got nothing.

For those ALL CASH buyers, Why not attain all the incentives available for that particular car, take out a loan THEN pay the car off within that month?
How I see it, their actually saving more money just b/c of the incentives they were proactively targeting.

 

[jagu]

For those ALL CASH buyers, Why not attain all the incentives available for that particular car, take out a loan THEN pay the car off within that month?
How I see it, their actually saving more money just b/c of the incentives they were proactively targeting.

Yes, that is always an option. There may be a prepayment penalty but it's usually if you pay off within 6 months.

As I said, there is nothing wrong with buying a car in cash, but it makes no sense for the regular person making under $100k who has various obligations to meet. I also makes no sense for a business owner to pay $80k cash for a car when he can just lease it and maintain a good cash flow. It makes sense to buy in cash when you just have inheritance money or too much money sitting around and there are no attractive financing potions.

 

[Llano]

Yeah you can buy one from Audi but be prepared to spend a grip.. The beauty of used cars is that the original owner bought all the dealer incentive bs and u as the used buying reep the benefits

 

[Dr. Truth]

Buy a used German car if you want. That shit will leave you looking like an idiot on the turnpike.

 

[jagu]

Buy a used German car if you want. That shit will leave you looking like an idiot on the turnpike.

Please speak for yourself and your cousin. When you buy a grey market flood salvage Audi, you shouldn't expect it to work well.
Non of my German cars has ever left me stranded. My wife's Lexus wouldn't start and left her standing in her office parking garage a year ago.

 

[Powerforwardofthesquad]

Good lookin' on that dealer adding interest on top of what they got from the bank. Makes perfect sense, but I had no clue.
Bastards.

 

[nibbs]

Most of those people lease, which kills your statement about paying interest on a depreciating asset.

You missed my comment about leasing.

Also: If you own a business or are a 1099 employee, LEASING a car is a fantastic option.
As of 2015 the Federal Tax laws allow you to write off 80% of your monthly car payment as a business expense on your corporate taxes!
That's in addition to your fueling, cleaning, and maintenance expenses.

 

[nibbs]

Good lookin' on that dealer adding interest on top of what they got from the bank. Makes perfect sense, but I had no clue.
Bastards.

No p. Glad to share the knowledge.

 

[nibbs]

Buy a used German car if you want. That shit will leave you looking like an idiot on the turnpike.

So long as they're properly maintained, they're no more or less reliable than other cars from other countries. The Germans do tend to be a engineered / use parts that are complicated - unnecessarily so at times - but that's not a reliability issue, that's a longevity issue.

The thing to remember is that German cars REQUIRE maintenance. It's not an optional. You cannot elect to skip services or run it beyond the schedule maintenance interval like is possible with Korean, Japs, and Domestics and the parts used better be OEM replacement or above OE spec. Using cheaper generic parts and a German car will generally punish you at some future point.

If you're not a responsible car owner, stay away from German cars.

 

[bwb]

new car negotiation still seems formidable, but doable. I think I'll be better served by getting a used car. 3 to 5 years old. I get a bargain off of the original price, the first owner paid for all of the dealer extras, etc. As long as it has been well maintained and serviced, I should be able to get many years and miles out of it. The downside is you can only get what is there, so supply is an issue, and you are paying for repairs out of pocket.

 

[jagu]

You missed my comment about leasing.

I didn't miss it. You suggested it wasn't a good idea to pay interest on financing a depreciating asset. You must think that leasing is free.

 

[Dr. Truth]

Don't you lease new cars? If so you're good for 50k the German timebomb don't go off until 50k. By the way my cousins whips are not grey marked. I asked him again. In fact he's leaving for Germany next week.

Please speak for yourself and your cousin. When you buy a grey market flood salvage Audi, you shouldn't expect it to work well.
Non of my German cars has ever left me stranded. My wife's Lexus wouldn't start and left her standing in her office parking garage a year ago.

t

 

[jagu]

Don't you lease new cars? If so you're good for 50k the German timebomb don't go off until 50k. By the way my cousins whips are not grey marked. I asked him again. In fact he's leaving for Germany next week.
t

Of course I lease new cars and drive them to 65k miles and I will also never buy a new Lexus or infiniti, I'd rather lease it. What's your point, Doc?
My car is on 57k miles and no problem at all, so your prayers need more work.

You little cousin's cars are grey market. He is not a a BMW or Mercedes franchisee and does not have the license to import new BMWs to the U.S., so he has to buy used cars and bring them here. That's as stupid as bringing sand to the beach. I can buy a BMW on European delivery without needing your cousin, so tell me how does his business make sense?

 

[Louis Koo]

This thread is stupid. There are far better ways of not getting fucked
- Find an accountant that does the books for the car dealers. They know everything. Use that connect to get your car.
- Use your business to write-off the car.

 

[ArsenalCannon357]

Bring Cash and all of that goes out the window....just bought a car last year walked in said what I wanted what I was willing to pay and asked for paperwork. They tried the mumbo jumbo but when I said I'm ready to look else where they came off 6,000 on the vehicle...my car notes are less than 125.00

 

[evolution81]

Bring Cash and all of that goes out the window.

So you have enough cash to buy a 70k car outright?...cash works for cheap cars...once you get into the 10k and up why would you take liquid cash and tie it up in a depreciating asset...doesn't make any sense....but then again most of these bgol ballers only post what they heard from Craig n em...

 

[ViCiouS]

So you have enough cash to buy a 70k car outright?...cash works for cheap cars...once you get into the 10k and up why would you take liquid cash and tie it up in a depreciating asset...doesn't make any sense....but then again most of these bgol ballers only post what they heard from Craig n em...

read again

my car notes are less than 125.00

 

[Aww Skeet Skeet!]

read again

I'm still confused what matt is trying to say. He didn't pay for the entire car amount in cash as he has car payments of $125. However, if you put enough money down on any car (financing a small amount), you too can have low monthly payments...?

In all honesty, depending on the amount you want to put down and your credit card limits, I'd use credit instead of cash (assuming you have the cash on hand to pay the amount you're gonna charge). If shit goes sour between the time you drive it off the lot and the time you have to return it (30 days?), you don't have to worry about waiting to get your down payment back. Oh, cashback rewards are also nice.

Matt's example does bring up the reason why I don't negotiate at the dealer. You give him a price you want to pay, but you don't know what's the lowest price he's willing to sell. Usually, the dealer will take your price as a floor and possibly work up from there. Even if he took $6k off, what makes you think he couldn't go even lower? could you get it lower from another dealer?

 

[Mt. Yukon]

So long as they're properly maintained, they're no more or less reliable than other cars from other countries. The Germans do tend to be a engineered / use parts that are complicated - unnecessarily so at times - but that's not a reliability issue, that's a longevity issue.

The thing to remember is that German cars REQUIRE maintenance. It's not an optional. You cannot elect to skip services or run it beyond the schedule maintenance interval like is possible with Korean, Japs, and Domestics and the parts used better be OEM replacement or above OE spec. Using cheaper generic parts and a German car will generally punish you at some future point.

If you're not a responsible car owner, stay away from German cars.

Honestly. Anything newish that isn't an entry level whip you better maintain it, use OEM parts, and not cheap out. Yeah German cars have that stigma, but it's getting harder and harder to just run a car for years and only change oil and brakes.

 

[BDR]

Of course I lease new cars and drive them to 65k miles and I will also never buy a new Lexus or infiniti, I'd rather lease it. What's your point, Doc?
My car is on 57k miles and no problem at all, so your prayers need more work.

You little cousin's cars are grey market. He is not a a BMW or Mercedes franchisee and does not have the license to import new BMWs to the U.S., so he has to buy used cars and bring them here. That's as stupid as bringing sand to the beach. I can buy a BMW on European delivery without needing your cousin, so tell me how does his business make sense?

 

[Dr. Truth]

Of course I lease new cars and drive them to 65k miles and I will also never buy a new Lexus or infiniti, I'd rather lease it. What's your point, Doc?
My car is on 57k miles and no problem at all, so your prayers need more work.

You little cousin's cars are grey market. He is not a a BMW or Mercedes franchisee and does not have the license to import new BMWs to the U.S., so he has to buy used cars and bring them here. That's as stupid as bringing sand to the beach. I can buy a BMW on European delivery without needing your cousin, so tell me how does his business make sense?

Are you doing 48 month leases? LOL. Wtf. My cousin is rich a fuck of these cars. Laugh all you want it that nigga got mad customers.

 

[jagu]

Are you doing 48 month leases? LOL. Wtf. My cousin is rich a fuck of these cars. Laugh all you want it that nigga got mad customers.

24 and 36 months. If that's okay with you.

And no you and your cousin are telling stories. I know what I'm talking about. He's a grey market dealer who can make good money on special grey market cars, but he's not buying new BMWs to sell in the U.S. unless he's a licensed franchisee.

 

[ArsenalCannon357]

I'm still confused what matt is trying to say. He didn't pay for the entire car amount in cash as he has car payments of $125. However, if you put enough money down on any car (financing a small amount), you too can have low monthly payments...?

In all honesty, depending on the amount you want to put down and your credit card limits, I'd use credit instead of cash (assuming you have the cash on hand to pay the amount you're gonna charge). If shit goes sour between the time you drive it off the lot and the time you have to return it (30 days?), you don't have to worry about waiting to get your down payment back. Oh, cashback rewards are also nice.

Matt's example does bring up the reason why I don't negotiate at the dealer. You give him a price you want to pay, but you don't know what's the lowest price he's willing to sell. Usually, the dealer will take your price as a floor and possibly work up from there. Even if he took $6k off, what makes you think he couldn't go even lower? could you get it lower from another dealer?

I wasn't where I could type in depth when I posted earlier...

1. Pull your credit report so you know what's going on before you get there and they pull it. Carry Cash and you take all of their power away.

2. When I bought my car last year, I checked the lot out only for inventory...I did a carfax report on the vehicle from the house and checked kelly bb instead of pulling up to the lot first. I also wasn't going to buy the most expensive car (like I see a ton of people do). Most people who know me will tell you I'm all about getting the most with minimum. All I needed was a nice vehicle to get me to point a to b and carry my equipment . With my work as a photographer can rack up a few grand per day (depending on my client) so what I did was save up 10K over a period of time (since my old honda was teetering) and when I made the jump I went in with 8k cash and the vehicle I wanted was priced at 16K and it had 15,000 miles on it and one owner. Dealer came off 2,000 at first but after playing hardball and threatening to go up the road after seeing the cash for himself he caved in and knocked off another 5,000 and that made it 7,000 total (had to go back and look at ppw) which was well below the Kelley BB price I researched it at..so I knew I won...I am about 1,500 from paying it off in less than a year and practically driving a new car with a warranty...remember factor in tag, title, fees when you do the final cost of the car!

3. The main thing is GET WHAT YOU CAN AFFORD AND A GOOD WARRANTY REMEMBER CARS DEPRECIATE!!!!!

Me with the Ride after signing the ppw

Valuable Piece of info in this.....