[0:00] this tip will save you thousands when
[0:01] buying a car from a dealer this one
[0:04] thing will let you walk away a winner or
[0:06] a loser if you don't play it right and
[0:09] that's not all I'll give you a couple
[0:10] more tips at the end to save you even
[0:11] more money so are you ready to take
[0:13] control of your next car purchase let's
[0:16] make it happen Okay the first tip and
[0:18] this is huge you need to flip the script
[0:21] on the dealer now what do I mean by that
[0:23] let me explain you want to work the
[0:25] price from the bottom up not the top
[0:29] down the dealer ship always wants to
[0:31] work the price from the price they set
[0:33] down you want to have the leverage in
[0:34] the deal work it from the bottom up I'm
[0:36] going to show you how to do that now now
[0:38] let's say you want to buy this lovely
[0:40] 2015 Camry with 41,000 Mi for
[0:43] $28.95 but you don't like the price
[0:45] right so let's let's get it down now in
[0:47] order to make this dealer the right
[0:49] offer you got to head over to Kelly Blue
[0:50] Book we're going to look at the tradein
[0:52] value for this Camry as if we were
[0:54] trading the car in to try to figure out
[0:57] what the dealer probably paid someone to
[0:59] get this car on their lot if it didn't
[1:01] come from an auction easiest way to do
[1:03] that is just to grab the VIN plug it in
[1:05] there and hit go and the next thing
[1:07] we'll do is plug in the mileage and the
[1:09] zip code click next a few times and get
[1:11] your value now when you're trying to get
[1:13] the Kelly blook trade-in value for the
[1:14] car that you want to buy you want to
[1:16] check this out and look at the condition
[1:18] of the car so go through the images see
[1:20] if there's any
[1:22] obvious cosmetic or mechanical things
[1:25] that are listed with it if not just
[1:27] select good as a kind of a baseline or
[1:30] very good don't ever select excellent or
[1:32] Fair it's kind of two opposite ends of
[1:34] the spectrum so we're going to select
[1:35] very good in this case just to give them
[1:37] the benefit of the doubt and we'll
[1:39] bypass this form for now and then you'll
[1:41] get this lovely tradein value tradein
[1:44] value for this car is listed at $
[1:48] 4,886 so if I do some quick math on this
[1:51] go back
[1:53] $2,895 minus the $1 5,899 if we're
[1:56] giving them the benefit of the doubt
[1:58] that's still at least 6,00 000 that
[2:00] they've got marked up on this car from
[2:03] what they gave someone and they most
[2:05] likely didn't give them anywhere near
[2:07] $16,000 for the tradeing if you've ever
[2:09] traded in a car I've traded in probably
[2:12] 40 or 50 different vehicles in my
[2:13] lifetime I rarely ever see a dealer
[2:17] offer me tradein value especially high
[2:18] tradein value what they typically do is
[2:21] they come back and say I'm sorry we
[2:22] can't give you trade in value we can
[2:24] only give you blackbook or auction value
[2:26] for this car and auction value tends to
[2:28] always be less than Kelly Blue Book
[2:30] trade in value the only time there's an
[2:33] exception to this is maybe from 2020 to
[2:35] 2022 or end of 2023 when there was a
[2:37] shortage in the car market they actually
[2:39] were giving a little bit more on trade
[2:41] in because used cars were worth more but
[2:43] those days are over we're getting back
[2:44] to normal here and this tip should work
[2:47] and if you're really interested in
[2:49] checking this car out and you want to
[2:51] see if my theory is correct you should
[2:54] look at the car that you're interested
[2:55] in call the dealership that has the car
[2:58] that you're interested in and pretend
[3:00] like you're trading in a very similar
[3:02] car so give them maybe the same year the
[3:05] same model and trim maybe change the
[3:07] mileage by 5 or 10,000 miles one way or
[3:10] the other and they will give you some
[3:13] idea some ballpark estimate of what they
[3:15] would give you on a trade for that car
[3:17] now don't tell them you're interested in
[3:19] buying theirs you just want to see what
[3:21] they're going to give you on tradeing
[3:22] value and you'll get a ballpark this
[3:24] value over the phone is usually a little
[3:26] bit higher than what they would give you
[3:28] in person because they're trying to lose
[3:29] you in and bait you in to the dealership
[3:32] but it's still a good gauge and you can
[3:34] still get an idea pretty quickly okay so
[3:37] in this case I would call the dealer
[3:40] actually I would probably go look at the
[3:41] car first see if I'm even interested in
[3:43] it drive the car go through a thorough
[3:45] inspection and if it's a car you want to
[3:47] buy I would offer them $166,000 for this
[3:50] car with a straight face be very polite
[3:54] uh don't be rude just
[3:57] $116,000 and that's how you set the
[3:59] anchor you set the anchor low they
[4:02] wanted it high so now you're working
[4:03] from a position of low and working your
[4:06] way up you know you're probably not
[4:07] going to get the car for $166,000 and
[4:09] that's okay you have a little bit of
[4:11] wiggle room to come up this also means
[4:14] you don't have to negotiate out all of
[4:15] those junk fees dealer handling and all
[4:17] these other gations that people tell you
[4:19] to go through if you get a good enough
[4:21] deal on the base price then maybe paying
[4:25] paying dealer handling and some other
[4:27] etching fees and whatever maybe they
[4:29] don't matter because you've saved
[4:30] thousands on the front end of this deal
[4:32] and you've changed the leverage now you
[4:34] do have to remember be polite be nice be
[4:37] willing to walk away be willing to even
[4:40] leave wait a day maybe a week even a
[4:44] month I've had car dealers call me back
[4:46] the next day the next week the next
[4:48] month and actually take a lowball offer
[4:50] that I gave them because I was polite I
[4:53] wasn't rude I just gave them an offer in
[4:55] writing and I had a price I wanted to
[4:57] stick to and they eventually called me
[4:59] if they didn't call me I was okay with
[5:01] that there are plenty of vehicles to buy
[5:03] you don't have to buy that one and to
[5:05] prove that this works I actually did
[5:07] this on a new vehicle or a tactic
[5:08] similar to it I didn't have the tradein
[5:10] value to go off of but I still kind of
[5:11] played it off the invoice price so check
[5:14] this email out I sent this Ford dealer
[5:16] an email about an F-150 XL the MSRP was
[5:19] 51,000 their initial email their first
[5:22] email back to me they said they would
[5:23] sell it for $
[5:24] 4,849 I said that wasn't good enough I
[5:27] sent the most simple email back I said
[5:29] hi P I might consider this if it's
[5:31] 42,000 but I think it's too much for a
[5:33] 2023 XL and this was sent just at the
[5:35] beginning of March 2024 said let me know
[5:38] if that's possible or not thank you she
[5:40] emailed back and said let me talk to my
[5:42] boss and run some numbers then we had
[5:44] two more email exchanges this one she
[5:46] writes back and says here are the
[5:47] numbers for the F-150 these are average
[5:49] we can get you 43,000 and as you can see
[5:52] right there attached in writing they
[5:54] took a little picture with their iPhone
[5:56] or something and sent it to me in email
[5:58] you can see 43 000 right here now keep
[6:01] in mind I only did about 5 minutes of
[6:03] work to get this email exchange going I
[6:07] emailed some dealerships I found a truck
[6:09] that I thought I might like and then
[6:11] just started a conversation I did find a
[6:13] dealership that had more stock than
[6:15] another dealer you can use leverage
[6:17] points like that to work in your favor
[6:19] on the deal so coming full circle and
[6:21] then we'll get to those other tips I was
[6:23] talking about the the number one thing
[6:24] that you need to take away from this is
[6:26] look at the trade-in value of vehicles
[6:28] if you're buying a used vehicle
[6:30] or look at the invoice value on a new
[6:31] vehicle and you'll find at least how
[6:35] much leverage you can come from from the
[6:37] bottom up rather than working from the
[6:39] top down on the price works every time
[6:41] if a dealer's unwilling to do it you
[6:43] need to just find another dealer and if
[6:45] a dealer tells you that times have
[6:46] changed and we don't have that much
[6:48] profit in these cars they are lying
[6:51] trust me and keep in mind you will have
[6:54] more leverage if you go in person I like
[6:57] doing things through email first just to
[6:59] try to to filter out who I think is
[7:01] going to be more willing to work with me
[7:03] but once you get in person you should
[7:04] have even more leverage now I have a
[7:06] couple more tips to help you out with
[7:08] some leverage points first off you
[7:09] definitely want to check to make sure
[7:11] that the car has like an auto check or a
[7:13] Carfax report make sure it's clean I
[7:15] always look for cars that don't have
[7:17] title Brands uh no accidents if I can
[7:19] find them there are a lot of cars now
[7:21] with accidents but it's just worth more
[7:24] if it doesn't have any accidents if you
[7:25] find a car that's high priced and it has
[7:27] an accident history away there's there's
[7:30] no reason to even start negotiating but
[7:32] if you find cars that don't have
[7:34] accidents uh and they're at a high price
[7:36] there's probably a reason why they're a
[7:37] little higher priced than the ones that
[7:39] had multiple accidents so okay the next
[7:41] tip is to look at the dealer handling
[7:43] fees if your dealer is tacking on
[7:45] another five or 600 or $700 onto the
[7:47] dealer handling of the car what you can
[7:50] do is say can you please provide me with
[7:52] your dealer handling report I want a
[7:54] detailed report of what you spent money
[7:56] on if they don't provide that that might
[7:59] be a red flag that they're they're a
[8:01] little shady most dealers will provide
[8:03] you with some inspection report and even
[8:06] if it's fake they'll at least try to
[8:08] identify what they put their money into
[8:11] so if they say that they put new tires
[8:13] on the car but you see that there aren't
[8:14] new tires on the car that'll be a point
[8:16] of negotiation for you same thing with
[8:18] brakes or anything else the next tip
[8:21] that you can do is you can say I want to
[8:22] take this car to get it inspected by a
[8:24] mechanic I assume you don't have a
[8:26] problem with that they shouldn't have a
[8:28] problem with that an independent
[8:30] mechanic not the one at the dealer and
[8:32] see what problems they come up with a
[8:34] lot of the time independent mechanics
[8:35] will find all sorts of things that the
[8:37] dealer didn't find or just anomalies
[8:39] that you didn't catch when you were
[8:41] doing your inspection yourself so get
[8:43] that inspection from another mechanic
[8:45] then you can take that take it back to
[8:47] the dealer and use that as leverage for
[8:50] more negotiation off the price that
[8:52] you've already hopefully negotiated down
[8:54] to a reasonable price now you're
[8:56] stacking multiple different things you
[8:58] got them down on that initial price then
[9:01] you're negotiating this extra inspection
[9:04] and anything that might come up in the
[9:06] inspection it's a used car they don't
[9:08] have warranty so you want to definitely
[9:10] get an inspection you don't want any
[9:12] surprises and the last tip I have for
[9:14] you and maybe this should have been at
[9:16] the beginning but whatever is check a
[9:19] site like car complaints or other sites
[9:20] out there that have reliability data no
[9:22] matter how bad you want a car just
[9:25] because it looks cute or sexy or
[9:27] whatever please please go check and look
[9:30] at the reliability history of that used
[9:32] vehicle and just see what the track
[9:33] record is and you'll see websites all
[9:35] over uh Edmonds car complaints uh many
[9:39] different websites and they'll list out
[9:41] cars that are known good cars known good
[9:44] models and years and you can find those
[9:46] drill down and maybe it's not the exact
[9:49] car you wanted but you'll probably be a
[9:51] lot happier down the road if you don't
[9:53] have a lot of mechanical problems after
[9:55] you buy a car and you spent the money
[9:57] think about it 3 to 6 months down down
[9:59] the road what happens the car gets dirty
[10:01] it gets dinged or keyed or whatever and
[10:05] eventually you're not caring about the
[10:06] looks of the car as much as you are the
[10:09] mechanical and reliability just point A
[10:11] to B transportation so that's just
[10:14] something you have to consider in the
[10:16] purchase and it'll pay off down the road
[10:18] I'm coming out with a guide here soon
[10:19] and I'm going to actually include
[10:21] something like this in the guide it's
[10:22] going to be just a full guide of how to
[10:24] research car reliability how to focus on
[10:27] good cars instead of bad cars what to
[10:29] look out for you can do inspections
[10:31] yourself if you don't want to pay a
[10:33] mechanic so that's all coming up in a
[10:34] free course not completed with it yet so
[10:37] I still got a lot of filming to do
[10:38] anyway sub up if you want to see that
[10:40] and we'll catch you in the next one