Save THOUSANDS at Car Dealership. How to negotiate a car deal in 2024. The most important tip.

[00:00] this tip will save you thousands when

[00:01] buying a car from a dealer this one

[00:04] thing will let you walk away a winner or

[00:06] a loser if you don't play it right and

[00:09] that's not all I'll give you a couple

[00:10] more tips at the end to save you even

[00:11] more money so are you ready to take

[00:13] control of your next car purchase let's

[00:16] make it happen Okay the first tip and

[00:18] this is huge you need to flip the script

[00:21] on the dealer now what do I mean by that

[00:23] let me explain you want to work the

[00:25] price from the bottom up not the top

[00:29] down the dealer ship always wants to

[00:31] work the price from the price they set

[00:33] down you want to have the leverage in

[00:34] the deal work it from the bottom up I'm

[00:36] going to show you how to do that now now

[00:38] let's say you want to buy this lovely

[00:40] 2015 Camry with 41,000 Mi for

[00:43] $28.95 but you don't like the price

[00:45] right so let's let's get it down now in

[00:47] order to make this dealer the right

[00:49] offer you got to head over to Kelly Blue

[00:50] Book we're going to look at the tradein

[00:52] value for this Camry as if we were

[00:54] trading the car in to try to figure out

[00:57] what the dealer probably paid someone to

[00:59] get this car on their lot if it didn't

[01:01] come from an auction easiest way to do

[01:03] that is just to grab the VIN plug it in

[01:05] there and hit go and the next thing

[01:07] we'll do is plug in the mileage and the

[01:09] zip code click next a few times and get

[01:11] your value now when you're trying to get

[01:13] the Kelly blook trade-in value for the

[01:14] car that you want to buy you want to

[01:16] check this out and look at the condition

[01:18] of the car so go through the images see

[01:20] if there's any

[01:22] obvious cosmetic or mechanical things

[01:25] that are listed with it if not just

[01:27] select good as a kind of a baseline or

[01:30] very good don't ever select excellent or

[01:32] Fair it's kind of two opposite ends of

[01:34] the spectrum so we're going to select

[01:35] very good in this case just to give them

[01:37] the benefit of the doubt and we'll

[01:39] bypass this form for now and then you'll

[01:41] get this lovely tradein value tradein

[01:44] value for this car is listed at $

[01:48] 4,886 so if I do some quick math on this

[01:51] go back

[01:53] $2,895 minus the $1 5,899 if we're

[01:56] giving them the benefit of the doubt

[01:58] that's still at least 6,00 000 that

[02:00] they've got marked up on this car from

[02:03] what they gave someone and they most

[02:05] likely didn't give them anywhere near

[02:07] $16,000 for the tradeing if you've ever

[02:09] traded in a car I've traded in probably

[02:12] 40 or 50 different vehicles in my

[02:13] lifetime I rarely ever see a dealer

[02:17] offer me tradein value especially high

[02:18] tradein value what they typically do is

[02:21] they come back and say I'm sorry we

[02:22] can't give you trade in value we can

[02:24] only give you blackbook or auction value

[02:26] for this car and auction value tends to

[02:28] always be less than Kelly Blue Book

[02:30] trade in value the only time there's an

[02:33] exception to this is maybe from 2020 to

[02:35] 2022 or end of 2023 when there was a

[02:37] shortage in the car market they actually

[02:39] were giving a little bit more on trade

[02:41] in because used cars were worth more but

[02:43] those days are over we're getting back

[02:44] to normal here and this tip should work

[02:47] and if you're really interested in

[02:49] checking this car out and you want to

[02:51] see if my theory is correct you should

[02:54] look at the car that you're interested

[02:55] in call the dealership that has the car

[02:58] that you're interested in and pretend

[03:00] like you're trading in a very similar

[03:02] car so give them maybe the same year the

[03:05] same model and trim maybe change the

[03:07] mileage by 5 or 10,000 miles one way or

[03:10] the other and they will give you some

[03:13] idea some ballpark estimate of what they

[03:15] would give you on a trade for that car

[03:17] now don't tell them you're interested in

[03:19] buying theirs you just want to see what

[03:21] they're going to give you on tradeing

[03:22] value and you'll get a ballpark this

[03:24] value over the phone is usually a little

[03:26] bit higher than what they would give you

[03:28] in person because they're trying to lose

[03:29] you in and bait you in to the dealership

[03:32] but it's still a good gauge and you can

[03:34] still get an idea pretty quickly okay so

[03:37] in this case I would call the dealer

[03:40] actually I would probably go look at the

[03:41] car first see if I'm even interested in

[03:43] it drive the car go through a thorough

[03:45] inspection and if it's a car you want to

[03:47] buy I would offer them $166,000 for this

[03:50] car with a straight face be very polite

[03:54] uh don't be rude just

[03:57] $116,000 and that's how you set the

[03:59] anchor you set the anchor low they

[04:02] wanted it high so now you're working

[04:03] from a position of low and working your

[04:06] way up you know you're probably not

[04:07] going to get the car for $166,000 and

[04:09] that's okay you have a little bit of

[04:11] wiggle room to come up this also means

[04:14] you don't have to negotiate out all of

[04:15] those junk fees dealer handling and all

[04:17] these other gations that people tell you

[04:19] to go through if you get a good enough

[04:21] deal on the base price then maybe paying

[04:25] paying dealer handling and some other

[04:27] etching fees and whatever maybe they

[04:29] don't matter because you've saved

[04:30] thousands on the front end of this deal

[04:32] and you've changed the leverage now you

[04:34] do have to remember be polite be nice be

[04:37] willing to walk away be willing to even

[04:40] leave wait a day maybe a week even a

[04:44] month I've had car dealers call me back

[04:46] the next day the next week the next

[04:48] month and actually take a lowball offer

[04:50] that I gave them because I was polite I

[04:53] wasn't rude I just gave them an offer in

[04:55] writing and I had a price I wanted to

[04:57] stick to and they eventually called me

[04:59] if they didn't call me I was okay with

[05:01] that there are plenty of vehicles to buy

[05:03] you don't have to buy that one and to

[05:05] prove that this works I actually did

[05:07] this on a new vehicle or a tactic

[05:08] similar to it I didn't have the tradein

[05:10] value to go off of but I still kind of

[05:11] played it off the invoice price so check

[05:14] this email out I sent this Ford dealer

[05:16] an email about an F-150 XL the MSRP was

[05:19] 51,000 their initial email their first

[05:22] email back to me they said they would

[05:23] sell it for $

[05:24] 4,849 I said that wasn't good enough I

[05:27] sent the most simple email back I said

[05:29] hi P I might consider this if it's

[05:31] 42,000 but I think it's too much for a

[05:33] 2023 XL and this was sent just at the

[05:35] beginning of March 2024 said let me know

[05:38] if that's possible or not thank you she

[05:40] emailed back and said let me talk to my

[05:42] boss and run some numbers then we had

[05:44] two more email exchanges this one she

[05:46] writes back and says here are the

[05:47] numbers for the F-150 these are average

[05:49] we can get you 43,000 and as you can see

[05:52] right there attached in writing they

[05:54] took a little picture with their iPhone

[05:56] or something and sent it to me in email

[05:58] you can see 43 000 right here now keep

[06:01] in mind I only did about 5 minutes of

[06:03] work to get this email exchange going I

[06:07] emailed some dealerships I found a truck

[06:09] that I thought I might like and then

[06:11] just started a conversation I did find a

[06:13] dealership that had more stock than

[06:15] another dealer you can use leverage

[06:17] points like that to work in your favor

[06:19] on the deal so coming full circle and

[06:21] then we'll get to those other tips I was

[06:23] talking about the the number one thing

[06:24] that you need to take away from this is

[06:26] look at the trade-in value of vehicles

[06:28] if you're buying a used vehicle

[06:30] or look at the invoice value on a new

[06:31] vehicle and you'll find at least how

[06:35] much leverage you can come from from the

[06:37] bottom up rather than working from the

[06:39] top down on the price works every time

[06:41] if a dealer's unwilling to do it you

[06:43] need to just find another dealer and if

[06:45] a dealer tells you that times have

[06:46] changed and we don't have that much

[06:48] profit in these cars they are lying

[06:51] trust me and keep in mind you will have

[06:54] more leverage if you go in person I like

[06:57] doing things through email first just to

[06:59] try to to filter out who I think is

[07:01] going to be more willing to work with me

[07:03] but once you get in person you should

[07:04] have even more leverage now I have a

[07:06] couple more tips to help you out with

[07:08] some leverage points first off you

[07:09] definitely want to check to make sure

[07:11] that the car has like an auto check or a

[07:13] Carfax report make sure it's clean I

[07:15] always look for cars that don't have

[07:17] title Brands uh no accidents if I can

[07:19] find them there are a lot of cars now

[07:21] with accidents but it's just worth more

[07:24] if it doesn't have any accidents if you

[07:25] find a car that's high priced and it has

[07:27] an accident history away there's there's

[07:30] no reason to even start negotiating but

[07:32] if you find cars that don't have

[07:34] accidents uh and they're at a high price

[07:36] there's probably a reason why they're a

[07:37] little higher priced than the ones that

[07:39] had multiple accidents so okay the next

[07:41] tip is to look at the dealer handling

[07:43] fees if your dealer is tacking on

[07:45] another five or 600 or $700 onto the

[07:47] dealer handling of the car what you can

[07:50] do is say can you please provide me with

[07:52] your dealer handling report I want a

[07:54] detailed report of what you spent money

[07:56] on if they don't provide that that might

[07:59] be a red flag that they're they're a

[08:01] little shady most dealers will provide

[08:03] you with some inspection report and even

[08:06] if it's fake they'll at least try to

[08:08] identify what they put their money into

[08:11] so if they say that they put new tires

[08:13] on the car but you see that there aren't

[08:14] new tires on the car that'll be a point

[08:16] of negotiation for you same thing with

[08:18] brakes or anything else the next tip

[08:21] that you can do is you can say I want to

[08:22] take this car to get it inspected by a

[08:24] mechanic I assume you don't have a

[08:26] problem with that they shouldn't have a

[08:28] problem with that an independent

[08:30] mechanic not the one at the dealer and

[08:32] see what problems they come up with a

[08:34] lot of the time independent mechanics

[08:35] will find all sorts of things that the

[08:37] dealer didn't find or just anomalies

[08:39] that you didn't catch when you were

[08:41] doing your inspection yourself so get

[08:43] that inspection from another mechanic

[08:45] then you can take that take it back to

[08:47] the dealer and use that as leverage for

[08:50] more negotiation off the price that

[08:52] you've already hopefully negotiated down

[08:54] to a reasonable price now you're

[08:56] stacking multiple different things you

[08:58] got them down on that initial price then

[09:01] you're negotiating this extra inspection

[09:04] and anything that might come up in the

[09:06] inspection it's a used car they don't

[09:08] have warranty so you want to definitely

[09:10] get an inspection you don't want any

[09:12] surprises and the last tip I have for

[09:14] you and maybe this should have been at

[09:16] the beginning but whatever is check a

[09:19] site like car complaints or other sites

[09:20] out there that have reliability data no

[09:22] matter how bad you want a car just

[09:25] because it looks cute or sexy or

[09:27] whatever please please go check and look

[09:30] at the reliability history of that used

[09:32] vehicle and just see what the track

[09:33] record is and you'll see websites all

[09:35] over uh Edmonds car complaints uh many

[09:39] different websites and they'll list out

[09:41] cars that are known good cars known good

[09:44] models and years and you can find those

[09:46] drill down and maybe it's not the exact

[09:49] car you wanted but you'll probably be a

[09:51] lot happier down the road if you don't

[09:53] have a lot of mechanical problems after

[09:55] you buy a car and you spent the money

[09:57] think about it 3 to 6 months down down

[09:59] 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