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Car Dealers HATE When You Do THIS!

By Untamed Motors

Summary

Topics Covered

  • Refuse Dealership Visits Pre-Negotiation
  • Negotiate Sale Before Trade Reveal
  • Ask Buy Rate vs Sell Rate
  • Decline Inflated Warranties
  • Walk Away Triggers Offers

Full Transcript

Hey YouTube, Untamed here. Dealerships

hate it when you do these 10 things. Why

do they hate it? Because if you were to do any one of them, it will cut into their profit margins. Knowing these 10 things will ensure that you get the best deal possible on your next vehicle

purchase. I assure you, new or used.

purchase. I assure you, new or used.

Knowing these things really just proves that you are an informed buyer, a buyer that refuses to let a dealership take advantage of them. Stick with me till the end. I'll save the most important

the end. I'll save the most important steps for last. So, why should you trust me? Why should you take any advice from

me? Why should you take any advice from me? If you're new to my channel, you may

me? If you're new to my channel, you may not know, but I did own and operate a successful nationwide auto brokerage service where I would find, locate, negotiate deals on other people's behalf, and then connect them to the

sales rep after the deal was negotiated.

I love doing this type of stuff, and if you follow my channel for any length of time, you've seen me do this on my own behalf a number of times. I mean, I just did it recently on my fifth generation 4Runner TR Pro that only had 600 miles

on it. I love doing this type of stuff.

on it. I love doing this type of stuff.

Not to mention, I do have a PhD in industrial and organizational psychology. I love doing the research. I

psychology. I love doing the research. I

love digging into finding out the reasons why organizations and industry makes the decisions that they do and what are the ripple effects of it.

What's the second third order effects that stem from such decisions. So stick

with me as we talk through it. I don't

normally say things like this, but if you do watch this entire video, all 10 steps, I assure you, you will save thousands of dollars on your next vehicle purchase. Though I'll leave the

vehicle purchase. Though I'll leave the most important for last, I will go in no particular order here. Number one thing that dealerships hate when you do is refuse to go into their dealership. When

you pick up the phone and you call them on any particular vehicle, what are they going to immediately ask you? They're

immediately going to ask you, "Hey, when can you swing by? When can you stop by the dealership?" That's what they're

the dealership?" That's what they're going to want. They're going to want you to get into their seat, into their chair. And at that point, they have the

chair. And at that point, they have the upper hand. And they know that once they

upper hand. And they know that once they start seeing you invest your time at their dealership, that's when they can begin the back and forth. Hey, let me go talk to my manager. Well, I'm not sure if we could do that, but let me go see.

Let me go talk to my manager. back and

forth begins and that becomes a gauntlet. That becomes a marathon and

gauntlet. That becomes a marathon and they exhaust you and they know they do that. They get paid. They're getting

that. They get paid. They're getting

paid to be there. They get paid to close deals. So, that's their job. But you,

deals. So, that's their job. But you,

you're wasting your time sitting in their seat only for them to go back and forth and just wear you out. Do not go into the dealership until you have a deal negotiated e either via email or

over the phone. I have negotiated every single one of my deals in advance over the phone before I step foot in any dealership. So, refuse to go into the

dealership. So, refuse to go into the dealership until you see the right numbers. Second thing that dealerships

numbers. Second thing that dealerships hate is when you come to the table with a already solid deal written up from a different dealership. That's you coming

different dealership. That's you coming to the table with your own research at play. Say, "Hey, I already had this deal

play. Say, "Hey, I already had this deal from XYZ dealership up the road. Can you

beat it?" When you arrive to the table already with a pretty solid deal in writing, that kind of takes their feet out from underneath them, right? That

kind of starts them at that square one.

that square one is already a great deal.

Now they have to do better than it if they want to earn your business. So they

hate it when you come prepared with an already written up deal that's pretty solid from a different dealer. Moving to

number three, the third thing that dealerships absolutely hate is when you negotiate the sale price of the vehicle before you even introduce the fact that you have it traded. They're always going to ask you right from the start, hey,

can you come into the dealership? Say

no. They're always going to ask you, are you planning to finance or pay cash?

Say, hey, I'm undecided. really just

focusing on getting the best deal. And

the third question they're going to ask you is, do you have a tradein? So, I

personally leave that at bay. Tell them

I just want to focus on getting the best deal possible in this vehicle and kind of go from there. Right? And more often than not, they respect that. So, but

they hate it cuz you kind of take away some of their negotiating power when you bring down that price tag of the vehicle that you're buying tremendously only to then introduce your trade in at the end of the deal. Say you got your numbers

down to the vehicle that you're trying to buy to a great figure. you're happy

with the figure, you're happy with the numbers. At the end, you can then say,

numbers. At the end, you can then say, "Hey, I do have a trade in. You know, I have a Chevy Silverado I'm trying to trade in. Here is a buy offer from

trade in. Here is a buy offer from CarMax, and here's a couple other buy offers from other Chevy dealerships. If

you beat those buy offers on my tradein, only then will I make this deal happen."

So, they already did the leg work to make the sale price come down tremendously, and now you're asking them to beat an already really good buy offer on your tradein. So that puts them in a predicament. Normally they like to try

predicament. Normally they like to try to play with the numbers, right? They're

they they finagle the numbers the best they can. Well, they they'll either drop

they can. Well, they they'll either drop the price tag of the vehicle you're trying to buy, not that much, but give you an incredible trade value for your trade in or vice versa, right? They'll

give you a terrible trade value, but they'll discount the vehicle you're buying tremendously. By doing this,

buying tremendously. By doing this, you're really demanding both. To item

number four, dealerships hate it when you know to ask this question. The

question is, if you plan to finance a vehicle and you get to that point in the deal, if you ask them, hey, what is the buy rate versus the sell rate on the interest rate of the APR that I'm

getting on my on my auto loan here? They

are never expecting you to ask that question. I assure you, you will catch

question. I assure you, you will catch them flatfooted every time and they will pause for a few seconds and in their mind, they're debating if they need if they want to be transparent and honest with you, right? That's what they're

trying to to decide when you ask that question. The buy rate is when they

question. The buy rate is when they secure the loan through the dealership, they're securing a loan at a certain interest rate. It could be maybe as low

interest rate. It could be maybe as low as 4%, 3%, 2%, whatever it is. Pretend

it's 4%. They secured your auto loan for over over 60 months. Let's pretend,

okay? 4%. They will then turn around and then sell you that same auto loan from that same banking institution, financial institution to you at 5%. They'll

upcharge it 1%. And generally speaking, they upcharge at one or 2%. That's kind

of the typical upcharge that they do.

And by doing that, they get a larger kickback from that lending institution, right? They're upcharging that loan. And

right? They're upcharging that loan. And

that additional interest rate makes the dealership more money. So that is why they always get a larger kickback from a financing institution. That's why they

financing institution. That's why they always prefer to push lending toward you. They want you to finance, right?

you. They want you to finance, right?

They rarely like it when you pay cash.

So by you asking them that question, you're proving to them that you are an informed buyer. And and that is an

informed buyer. And and that is an opportunity for you to negotiate a little bit more. Say, "Well, you know, I appreciate you telling me that.

Unfortunately, unless you're willing to sell me this loan at a 4%, I'm gonna walk. I'm gonna walk from the deal." Or,

walk. I'm gonna walk from the deal." Or,

"I'm not interested in the vehicle." Or

you can try to use that to your negotiating power when it comes to the actual figure of the vehicle. If you're

going to upcharge it to a 5% loan, you know, I I would ask that you at least drop the price tag another $1,000, right? You can use it as another

right? You can use it as another chessboard piece really in negotiating a good deal. So ask them the question,

good deal. So ask them the question, "What is the buy rate versus the sell rate?" That's going to blow their mind.

rate?" That's going to blow their mind.

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five here. When you get to the finance box or the finance officer at the end of the deal, when you're finalizing everything, signing documents, that finance rep will always try to get you to buy an extended warranty. They're

always going to try to get you to buy some bogus protection package for the vehicle, you know, windshield chip repair, door ding dent repair, ceramic coating, uh, window tint, PPF, whatever

it is. They're going to try to buy make

it is. They're going to try to buy make you buy these packages, right? I want

you to know that these are hugely inflated in price tag. They always are.

and they're always going to try to sell it to you as, hey, you know, it only increases your monthly payment by $12 or $7. That's how they try to sell it to

$7. That's how they try to sell it to you. But when you map out a 60-month

you. But when you map out a 60-month loan, that still is a tremendous price tag. You always want to look at the

tag. You always want to look at the final figure of how much they're charging you. You know, oftent times

charging you. You know, oftent times it's, hey, just for an additional $3,000, we can do an extended warranty for you. That's a lot of money. They

for you. That's a lot of money. They

hate it when you decline that. They

absolutely hate it. And I always encourage folks to decline that because more often than not, you can actually buy a third party extended warranty or protection plan for much, much cheaper.

And if you do want to buy one, just know that you can absolutely negotiate the price points on those packages on those extended warranties from the dealership.

Say, uh, not interested in spending three grand for it. I'll maybe do 700.

If you do 700, I'll make it happen. And

well, you might be surprised. They might

just accept it. they more often than not will accept it because there is a tremendous profit margin on those packages and that is really where the dealership makes a ton of money. That

finance box, that's where all the money comes from. And on that note here, this

comes from. And on that note here, this isn't a part of my top 10 list, but it's worth noting on that point. A lot of finance reps, I shouldn't say a lot, you will find finance reps who will try to

get you to buy an extended warranty if it means lessening your interest rate in the vehicle. They're not allowed to do

the vehicle. They're not allowed to do that. That is illegal. They can't say,

that. That is illegal. They can't say, "Hey, if you buy this $3,000 extended warranty, we'll bring your 5% interest rate down to 4%." Cuz what are they ultimately doing? They're bringing your

ultimately doing? They're bringing your sell rate down to match their their buy rate is all they're doing. But they're

making it contingent on you buying a package. They cannot do that. They can

package. They cannot do that. They can

legally upcharge their loans and and and sell you a higher interest rate. They

can legally do that, but they can't make it contingent on you buying something, a package of some sort. Just know that.

Moving to number six on the list. This

one kind of comes across a little Kariny. I understand. And and

Kariny. I understand. And and

personally, I'm kind of hit or miss if I intend to do it right. Lately, I've been actually trying to give salesmen a shot at trying to to work hard for me. And

sometimes I am pleasantly surprised. So,

take this one with a grain of salt. But

just know that there can be a lot of goodness in doing this. Dealerships

absolutely hate it when you immediately ask for a sales manager right from the start. And what's the benefit of doing

start. And what's the benefit of doing that? It's you cutting out the riff

that? It's you cutting out the riff raff, right? You're cutting out the back

raff, right? You're cutting out the back and forth. you're going straight to a

and forth. you're going straight to a person who can actually make a decision on what sale price the vehicle is sold to you at, right? It cuts out the back and forth of, hey, let me go ask my manager. Let me go let me go see what I

manager. Let me go let me go see what I can do. It cuts all that noise out. And

can do. It cuts all that noise out. And

if you're in a hurry, which most of us are, we're not trying to spend forever trying to buy negotiate a vehicle. You

want to do that. So, more often than not, I have done that and I've seen the best results in doing that. But then

again, I I also appreciate the hustle for salesmen sometimes, right? I don't

want to totally cut them out of the picture. They still have bills to pay.

picture. They still have bills to pay.

And sometimes you might be pleasantly surprised by a sales rep. So, purposely

going to talk out of both sides of my mouth there. But more often than not,

mouth there. But more often than not, the sales manager really is the way to go if you want to make it quick, straight to the point, and get the best figure. Moving to number seven on my

figure. Moving to number seven on my list. This is kind of a twofer. There's

list. This is kind of a twofer. There's

two questions, but I always package them together. Dealerships hate it when you

together. Dealerships hate it when you ask them. How long has that vehicle been

ask them. How long has that vehicle been on the lot? Then immediately follow that question with, "What is invoice pricing on that vehicle?" I package them together on purpose. Generally, if I know the vehicle's been sitting there

for a long time, generally speaking, they will list how long that vehicle's been off at that dealership on the lot on their website. It'll say their pricing history, when it arrived, all that stuff. And it's not too hard to

that stuff. And it's not too hard to find just based on using national websites like CarGurus, Cars.com, Autotrader, all the national sources and web pages generally have a history of how long a vehicle's been at a lot.

Okay? So, it's not that hard to find. If

I know it's been a long time, you know, 90 days, 100 days plus, I'll ask them, hey, how long? Just so they can say it, get it out of their mouth. Well, it's

been here for 140 days. Then right after that, can you tell me what invoice pricing is? I've been, it's been hit or

pricing is? I've been, it's been hit or miss for me personally, but more often than not, I can tell you, especially after I ask that first question, they will be honest and transparent in following up with the actual invoice of

the vehicle. If you're unfamiliar,

the vehicle. If you're unfamiliar, invoice truly is the price tag in which a dealership pays to actually acquire a unit or a vehicle to their lot. There is

a little bit of a little bit of a buffer there, right? Some additional fees that

there, right? Some additional fees that technically the dealership makes, even if they sell it at invoice, but just know that could be your starting point.

Always package them together. How long

has it been on a lot and what's invoice?

Then that becomes your starting point.

Moving to number eight on the list.

Dealerships absolutely hate it nowadays when you want to pay cash, which is kind of contrary to what a lot of us grew up learning. Cash is king. And maybe cash

learning. Cash is king. And maybe cash is king on a secondary market, kind of a momand pop shop on a corner. But most

dealerships today preferred if you finance through them because like I alluded to earlier, they get a monetary kickback from their preferred lenders.

When they pick that loan out and maybe even upcharge that loan to you, that's where they start making a little bit more money. That's where the profit lies

more money. That's where the profit lies right there. It is based on how long the

right there. It is based on how long the loan duration is and how big the loan is generally speaking of how big of a monetary kickback. Generally, it's

monetary kickback. Generally, it's anywhere as low as $500 up to $1,200, $1,500 based on those factors. So,

paying cash is something that dealers nowadays really hate. I navigate it is when they ask me right from the beginning, as they always will, are you planning to finance or pay cash? I

always tell them, I'm undecided for now.

I'm most focused on securing the best deal possible on the vehicle. And more

often than not, that works. More often

than not, that allows you to kind of get beyond that point of the conversation and move forward with actually negotiating the figures on the vehicle.

So that's what I recommend saying. And

then at the very end, that is when you can say, hey, you know, I love the figures here. I think I'm going to lean

figures here. I think I'm going to lean forward and just pay cash for it. On the

flip side, if I intended to finance all along, I will use the same exact approach. When they ask me, are you

approach. When they ask me, are you planning to finance or pay cash? say,

"I'm undecided for now, just focusing on getting the best deal possible." You can then use it as your final bargaining chip if you intended to finance. And

what I mean by that is because you know they get a a little bit of a monetary kickback at the very end of the deal because you know that if they go through a preferred lender, use it as your final bargaining chip in a sense that hey, I

know we're at $31,000 on the vehicle purchase here. I you know I think we're

purchase here. I you know I think we're that's a okay figure. But if I were to finance through you guys, would you make $30,000 happen if I agree to make it happen today? So that's your opportunity

happen today? So that's your opportunity just to throw one final hailmary to bring down the price tag another $1,000 or so. You can kind of feel that out to

or so. You can kind of feel that out to what's appropriate, but bring it down another $1,000 if it means financing through the dealership. And more often than not, in my experience, they generally accept it because, well, they're getting that kickback anyway. It

kind of makes up for the difference in their eyes. All right, guys. As we made

their eyes. All right, guys. As we made it to the end of this video, here are the two most important things to consider when you go to a dealership.

When you're negotiating a deal, this will save your bacon. I assure you.

Number nine on my list here is come with a preapproval from a local credit union.

Come with a pre-approval already in hand knowing what you can get an interest rate for. That will become hugely

rate for. That will become hugely beneficial. Do all the other things we

beneficial. Do all the other things we talked about in this video. If you get to the end of the deal and you decide to finance through the dealership, say, "Hey, yeah, I'm willing to work a deal with you. If you drop the price tag,

with you. If you drop the price tag, another thousand dollars and I'll finance with you, but I need you to beat my local credit union. Here's my

pre-approval. You I got it here and ready. I got it here on my phone. Here's

ready. I got it here on my phone. Here's

my pre-approval. I need you to beat this." That takes their legs out from

this." That takes their legs out from underneath them one final time to the point where they cannot upcharge that loan. They can't up it to a higher sell

loan. They can't up it to a higher sell rate to you, right? who's saying, "Hey, here I have a 3.9% interest rate pre-approval over 60 months up to this amount of money. I can just use this.

But if you beat that and do better, I'll go through you guys and come down on your price." Brings us to number 10 on

your price." Brings us to number 10 on the list. This item right here by itself

the list. This item right here by itself will undoubtedly save you some money on your vehicle purchase. No matter what, new or used, doing this one thing, I assure you, will save you money. Every

time I've done it, I've always saved money. It's just a matter of mustering

money. It's just a matter of mustering up the courage to actually do it. More

often than not, when you go buy a vehicle, and you finally commit to to making it happen, if you walk away from a deal, you go to the dealership, you check it out, you have the numbers, the

numbers look good to you, you're pretty happy with it. If you just walk away from the deal, say, "Hey, I'm not I'm not so sure. I'm going to think about But if you walk away and get in your car, drive away, I assure you that

dealership will be blowing up your phone within minutes, maybe an hour or two, they'll start blowing up your phone saying, "Hey, you know what? Are you

thinking? Can we get you back into the dealership? If you come back in, I think

dealership? If you come back in, I think we can bring down the price tag to this much, right? Or we'd be willing to do

much, right? Or we'd be willing to do this if you come back in." They'll start scrambling because they know they were this close to getting a deal, a sale, and only for you to walk away. Same goes

for if you negotiate a figure over the phone. It it is more impactful when you

phone. It it is more impactful when you go to the dealership and you walk away, physically walk away, but even over the phone, you negotiate figures, you seem pretty happy with it, saying, "I'm going

to think about it." They'll continue to blow up your phone until you eventually come back in. That will always save you money. Don't be afraid to walk away.

money. Don't be afraid to walk away.

Walking away feels like a no-brainer, but for so many people, they get married to these vehicles. They get married to the idea of coming out and buying this Bronco. I've fallen in love with this

Bronco. I've fallen in love with this Bronco and if I don't capitalize on it today, they're going to sell it. They're

going to sell it tomorrow. Not not in today's climate, right? They're sitting

on these Broncos. They're sitting on all these vehicles for several months right now. They're not selling like like hot

now. They're not selling like like hot cakes. So, do not be afraid to walk

cakes. So, do not be afraid to walk away. Don't get married to the vehicle.

away. Don't get married to the vehicle.

And heaven forbid it does, right? Heaven

forbid you do walk away and they actually sell it the next day. Go up the road to the next dealership. I assure

you that same Bronco is going to be sitting there and you have all the the deal arrangement in writing so you can then make that your starting point at that next dealership. All right guys, I'll wrap up the video there. Hopefully

some of you found this video helpful and hopefully you find it useful. If you do, if you end up using some of these tactics, please consider leaving me a comment. Let me know how it works out

comment. Let me know how it works out for you and hopefully it does serve you well. If you appreciate this type of

well. If you appreciate this type of content whatsoever, I do respectfully request that you please consider liking and subscribing. and your support means

and subscribing. and your support means a ton and I promise you it doesn't go unnoticed. Till next time.

unnoticed. Till next time.

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