4.1.5 Rob Gruhl - How to Buy a New Car - Ignite Seattle 2007

[keenanpenn1981]

Yall don't listen to this guy. He is a tool. Look if you want to get a good deal just go get one. There is no hidden trick to buying a car truck ect. All you do when you go test drive then leave and got to buy then leave, you WAIST A SALES MAN'S TIME. Time that they could be selling a car to a real person. Not jacking with some ass hole that wants to keep the COMMITIONED sales person from feeding there babies. Don't be afraid to go out and buy a car. If your watching this you are a bigger tool!!

[DwayneHoover94]

@keenanpenn1981 You do not realize how game theory works. Even if a dealer sells a car for below invoice, they will still make a profit from sales incentives. The dealer will WANT to sell you a car, if only to fill an end-period quota, and the price WILL be better if he is in competition with other dealers. You also do not realize that walking away is by far the best negotiation technique in any situation (and I mean it, it is the most effective one there is).

[weldersmart]

did anyone try carshen dot com ? Let dealers bid. they claim it can save 3000 dollars on a car purchase... any feedback from carshen dot com?

[SuperBrando1987]

@weldersmart my buddy got a car from them saved himself a lot of time hassle i was thinking bout giving it a shot

[Tomasch]

This guy looks like he never bought a car.

[mickeytca]

Are you kidding me. This video is How not to buy a car. Even though I agree with some of it as getting competitive bidding. But ten quotes will only confuse you and what are you trying to save a $100. Every competitive quote will be close to eachother. The easiest way is get couple of quotes and get to your local dealer and have him match it. That way most tax dollars stay in your city and county. You want the cops and firemen to show up when you call. Who s got the time to shop for 3 brands an

[kittykinesis]

I'd pay him $100+ to have him go through the process of purchasing a car for me.

[rodeopop1962]

All this to save a few 100 dollars even a 1000.00 Think about all the great service you will get if you have to come back to that store. I don't think people really have 2 weeks to do all this when they really want a car. Nobody says a word when somebody makes a 100% profit on jewelry or furniture. But let a car dealer make a profit and they might as well have killed somebody. Get a life.

[Tywone4]

wow..good stuff

Tywone

carbuyingbook.

[thejoshuahicks]

try these tactics at the grocery store too! Save hundreds each month. be awesome!

[demesphor]

my teacher told me to watch this for our personal economics class. this dude is funny and he speaks the truth. keep it up dude to funny.

[spookybuddy1]

This guy is a fool

[soylentgreenb]

17 caresalesmen disliked this video.

[elespu]

I like the video. there are few other things that helped me, one of them was a TrueCar website, where you can get price report, as well as see best certified dealer offer in your area.

[ajc1884]

This is true talk ! Car salesmen are scum, treat them like scum and youll end up getting the deal you want !

[Sunny6602]

if it's a man dealer bring a fit girl along trust me it's so funny they act so weird

[siti1ca]

this was great

i'll bet this pisses off the car salesmen

[alex0782]

GODDAMNIT! I wish I would have seen this video a few months ago when I was buying a new car!!!!

[grahamr22]

i hate buying a new car, this was INCREDIBLY helpful!!! Thanks :)

[jsteverichards]

Nice style, NO SUBSTANCE!

[l3ch5]

A funny, informative speech w/ great delivery - vocal variety, pace, gestures and use of slides!

[heroyoon]

These are the comments a green pea sales person would tell all his friends on how to buy a car.

Internet has made it too easy to buy a vehicle without all the games. You can have dealerships who want to be straight forward and with all the games this guy is telling you to play, it will be counter productive to be a satisfied customer. You will always leave with a sense of disappointment everytime.

[Standup4314]

I've sold cars for several years and let me just say. The average Salesperson spends atleast 50hrs a week plying his craft and crackpots like this guy spend maybe 10hrs every 3yrs. Common sense (?) here. Who do you think is more knowledgeable on the subject of buying and selling? All the games is unecessary. If you want a fair deal all you need is patience. Sounds simple does'nt it but that's it.

[porqpine5]

Well then, enlighten us. Why should someone continue to deal with a car salesman, who promises a price, and then backs out?

Everything discussed here is relating to *when* the salesman fails to honour his word, is it not the dealer at that point whose initiating a game? Or are you against a buyer calling around for competitive bidding?

[Haimoimoi]

I'm not sure where the games come in. This all seems like resonable advice: don't buy the high-pressure last minute add-ons, get multiple quotes, don't buy a car you don't want from a dealer that pulls a bait & switch. I'm wondering if you're taking exception to the part about not signing things? Or perhaps you and your alcoholic pedophile friends are out of work because consumers are beginning to find out they don't need you anymore. Tough call.

[Deal39]

This man is good, I sold cars and he is telling the truth...WOW!

[tipoomaster]

5 stars, great!

[TobiasWessels]

I'm a little dissappointed about the advice because it appears to be quick and comprehensive but it certainly does not guarantee you the best "value". Examples are to ask even during the competitive bid for buyers outside of your area to offer incentive because you "have to pick-up the car so far away". Free door mats, services, free tank of gas are also incentives that can easily save you several hundred bucks over the next few months. Do have the best leverage ask before you sign.

[chicagomarchingbands]

I'm in the market for the 09 Chevy Malibu. I take it I should have a loan from a bank or credit union first and then go get the car? Will the bank/credit union give me the money directly or make the check out to the dealer? So I guess I have to go negotiate a price first?

[rushevents]

The point is to find out how much money you can have for the payment you can afford. Once the bank gives you that number then you go to a dealership with that number in your head as the max negotiation point.

[BoilerToad]

When a dealer sells a car at "invoice", they still make money.  Google "dealership holdback incentives" to learn more about the process. Following the link to Edmunds, there is a link to get the current incentives and rebates in your area.

I disagree that "everyone is getting screwed" .. I get a vehicle for a price that I am satisfied with and they sell it to me for a price they are satisfied with - ether party can say "no". Capitalism works (as long as politicians quit trying to "help")

[DrNate89]

Exactly. Zero sum economics is not true--both parties benefit from a free trade.

[Vobarex]

The real problem is that everyone is getting screwed in the process.

[louisbear1]

What is the deffenition of getting screwed? You sound like an asshole!

Let me also get one thing straight: So you are telling people to go to a dealer and let a sales person spend 2 hours with you while you testdrive his cars, just so you can leave and then call other dealers to get their prices. I am sorry, are you going to go back and pay that sales person for his time because he doesnt get a cent if there is no sale. Thank for being so nice and helpful! We will buy the car elsewhere!

[RexieV]

so u rather get screwed then being a asshole.

[louisbear1]

What busines sence does it make for a dealer to buy a car for $20000 and to sell it for $19000? How long will you stay in busines doing that? Does anyone ever walk into Walmart, pick up an item and take it to the cashier and offer them $2 less than what the asking price is? They will tell you to leave the store! And I promise you that the mark-up is much higher on things in Walmart than cars are. I believe in a great deal for the customer but also that the dealer makes at least some profit!

[AlienComedian]

at this point in the economy, car dealers are just trying to move merchandise. The factory gives them incentives for bulk sales too. They'll get close to your price if your patient and stick to your guns. It's about timing and motivation too. When gas prices were high, they were selling big engine trucks for $10-12000 less the sticker. Somewhere someone is making a profit.

[DrNate89]

When dealers have cars on the lot, they're paying above just the price of the car. Cars literally cost them more money as they sit on the lot. Plus, they get bonuses for moving lots of cars.

[louisbear1]

hi guys! I hear what everyone is saying and how bad dealers are! I aggree, some are very bad and they take advantage of people who dont know anything about buying a car. That is just plain wrong!!!!! That is why I DONT work at a dealership like that. Here is the question: Everyone talks about "THE BEST DEAL" . What does that mean to the seller and to the buyer. The buyer always just wants the lowest price and the dont care if the dealer is losing $1000 to sell the new car.

[Aust931]

That's called business. A dealer would never sell you a car for less than he paid for it or 1. he's absolutely stupid, or 2. he made a bad purchase and is going to have to eat his mistake. That is how business works. If you want to make more money, don't try to give a few people bad deals on a few cars. Expand your business, make less profit off each car, and sell more cars! If you hire experienced sales people and make a genuine effort, everybody wins!

[RexieV]

is business if bought a car for 20k and the market is down plus u need money really fast for some gay reason u may wanna sell the car for 15k

[dnnymynr]

Follow-up... Yes I sell cars, and I'd rather NOT sell you a car than mislead you and have you out there saying bad things about me and the store I'm at.

Customer's job is to get the best deal possible. I don't hold that against customers. Its a shame car dealers gave themselves such a bad reputation. Luckily the business is changing and there are more and more decent people selling cars, and fewer slimeballs.

[dnnymynr]

Wow, this guy is unfortunate to have dealt with only the worst, cheesiest car salesmen the world has to offer, plus he's got little to no idea what he's talking about.

"As-Is slip"? He thinks you can by a car with no warranty? That is part of the vehicle from the factory. No new car sold comes without warranty!

There are some good points in there that anyone with common sense should follow. But this guy has little to no idea what he's talking about.

[Evyn545]

this is awesome! love the tips! Thank you for posting this video~

[ZingZiggyZang]

.Each situation is unique and will determine if a private or trade in works best. I trade in my vehicle as I don't want to spend the time and money, subject myself to risk or lose the tax reduction.Always be sure what the make and model you want and how you want it equipped. Get what you want, not a second or third choice, you may/will have to live with your decision for quite some time.

[ZingZiggyZang]

"The best deals are taken not given"

Dealers don't give their best price on the phone, you have to go in an negotiate.Don't shop dealers, dealers will work with a committed "buyer" not an uncommitted "shopper". Let them know you intend to buy car X at price X. today if they "are able to"

Dealers usually have the most/cheapest automotive financing options (imagine that!), but do get approved beforehand with another lender so you can compare and get them to beat your financing.

[ToddYarling]

Why anyone would willingly go into debt, or even give a penny to a car dealer is beyond me,

They are trained professionals, who make their living raising the price of something most people should not be purchasing in the first place.

Maybe you can get over on them by watching a video or reading a few blog posts, but... why would you want to?

And I say, even if you get over on them, you have still lost, because you paid way more for basic transportation than you needed by buying a new car.

[ToddYarling]

Even if you had to replace the tranny and the engine in the same year, the cost would still be less than the average monthly payment for a new car... and you would have a new tranny and engine on your PAID FOR CAR.

Hondas and Toyotas have great value and you can expect to get 300K+ miles on them. I would buy a Honda with 200K plus on it before i would sink a dime into a US made car with 20k miles on it.

Never buy new, american, or from a dealer!

Buy Used, Jap, from real people.

[AJballer]

What? Who the fuck are you dude? a used import car salesman. I have friends with old civics ('92-'00) and those cars nickel-and-dime their ass to death. Some people want to look successful to the outside world, no one looks like they're doing well if they're driving a 10 year old corolla. I gues you think it's better to buy an old shotgun shack house and wear hand-me-down clothes too because new homes and clothes are just as unnecessary.

[ToddYarling]

An American car will begin to nickle and dime you at around 100k miles, while you still are paying on it, if you bought it new.

I would rather pay for simple repairs on a PAID FOR car, personally.

I don't live in a shack, but I would rather live in a shack that I could afford, rather than the distress and inherent instability of a debt fueled, foolish life style.

As Proverbs says,"One man pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth."

[AJballer]

You say "an American car" as if you mean all of them. i had a 2000 model silverado that had 170,000 on the clock when I sold it. Every few months I nickel and dimed an oil filter and five quarts of oil and that's it. I have a 140+ thousand mile mustang right now and no signs of failure. If you're talking about a grand Am or a Taurus then sure, they break shit left and right from 10,000 miles or even earlier than that sometimes. My charger has 45,000 and never in the shop either.

[AJballer]

and dude, nobody wants to have only what they need. If that were the case I'd buy a 2-4 year old sub-compact with low miles and near mint shape, and I'd buy a small house, and get my clothes from walmart. I just can't do it. Maybe I need to so I can put money into savings and invest alittle here and there but I can't. i was poor as a kid and I can't stand not having shit. I grew up in small apartments riding in old cars, wearing cheap clothes and I refuse to go back to any of that.

[ToddYarling]

Buying a car new is one of the definitions of being screwed. No reason for anyone who makes less than a mil a year to buy a new car.

For the best deals, look for Honda or Toyota, 5 10 years older or more. Never borrow money at interest for a car.

And never buy from a dealership. Look for real people getting rid of their second car, or whatever, and don't be afraid to spend the 50$ to have a mechanic look at it first.

But for sure, stay away from dealerships and new cars!

[hackintoshkyle]

BS!!!!!

[Pvtjamesryan2]

ToddYarling

Your telling people to buy a 10 year old + car. That's the stupidest shit I have ever heard.

You may appreciate being at the mechanic every weekend, but normal people like myself with intelligence appreciate a working vehicle.

Buying a 2 or 3 year old car is fine. New cars lose a shit load of value within the first 2 years (Money wise, not quality wise....less the previous owner was a wanker and didn't change the oil).

[samsemtex]

why would you tell somone buy a 10 year old car. Anything over 3 years and you will get a good deal on a modern car with all the modern conveniences. 10 year old car will have 10 year old safety, 10 year old fuel efficiency, 10 year old power and most worryingly 10 year old electronics.

[aviationalyours]

Awesome... does that work for buying an airplane??

:)

[BostonVideoPromo]

Check out that video response right up above!

[justinzdad]

This is fairly accurate information but what I recommend is using the guys at Cartelligent in California. The gentleman in this video suggests you need to put aside two FULL weekends. I called them with what I wanted, told them the price range I was aware the vehicle was selling in and off they went. I had the car the next day. I spent about 30 minutes on this and know I got the best price.

[saxpuff]

Judging by the amount of negative feedback, I guess a lot of car salespeople have seen this video and they're pissed.That's a good sign,maybe I'll try it.

[zoommair]

Actually, this is all very good information except for a few key things. It's nothing to get pissed off about, but the misinformation hurts everyone involved, including the buyer. His attitude towards dealers aside, he's wasting his time, your time, and dealers' time. Invoice, rebates, incentives, interest rates are ALL available online. You could save yourself a couple weeks by doing the research online, find a dealer that treats you right, then state what you want to pay accordingly. DONE!

[emulator900]

Some interesting tactics but the guy speaking is an arrogant prick.

[NotRelated]

lol @ car salesmen below me

[stevejulie2006]

You Rob clearly have no idea what so ever on how to get a real deal on a new car. Teaching people to tell dealers "Please drop your pants and give me your bottom line price and I promise to think about it" Very effective tactics there super car buyer.

[almaslc]

Rob, you are an Idiot. You call that how to enjoy buying a car? Get a life!

[bberry51]

This guy isn't giving out advise that is new to buying a car. If you are ignorant enough not to read up on market, trade, and invoice prices (which aren't always accurate online) then why are you complaining about not getting your best deal and that the dealership cheated you out of money? I advocate smart shopping, but I am also for keeping everyone in business. Everyone has bills to pay. Don't assume every sales person is a shark. A good sales rep wants to have customer walk away happy.

[bberry51]

Keep in mind this is a general example and may not apply to everyone.

[bberry51]

In defense to anyone that may say..."Well just sell your car privately to make more money." Sometimes it isn't cost effective to wait to sell your car privately. I.E. If you drive a BMW and want to save money as opposed to spending 1500 or more a month on gas,insurance, etc. If a dealer offered you 15k leaving you with 4 k of neg. equity at that moment your out 4k. If it takes you 3 months to sell the car:1500 *3=4500 you just lost 500 more than if you would have traded the car in at the dealer.

[bberry51]

Let me start from the "don't buy anything" section.

When customers come in to purchase a car there are situations where customers are upside down on their trades. Like today with trucks and big SUV's. It would be wise in these cases to "purchase" GAP coverage. Gap coverage insures that if the car is declared a total lose before the loan is paid off you aren't stuck paying any negative balance that your insurance company wouldn't cover. Just saying NO to everyone could cost your more long term.

[MitchandBradyShow]

I would lot drop this liberal hippie...

[collapsitar]

You're kind of an idiot, eh?

[zoommair]

I disagree about the "ninja salesperson." That's the finance manager and he is in charge of getting a bank to approve you if you have lousy credit or if you haven't gotten a loan already. That's not exactly easy.

Don't buy any extras? What about GAP insurance on a lease? What about wear care? Not even extended warranty? Sure, skip the sealants and accessories, but important stuff, especially the warranty, is designed to save you money.

[thangnguyen02]

Isn't that the job a finance manager is supposed to do for a customer, regardless his/her credit. If you think that's a difficult job, worthy of complaining, then quit that job and find something else to do. Also, don't say that GAP or anything is designed to save ME money. That's only a half of it. The other? YOUR profit. BTW, I found them useless.

[bberry51]

Gap insurance is like purchasing peace of mind. It's not like you buy it and expect to total your car in the near future. Its insurance!

[dotben]

Raises wider issues around the relevancy of sales people, and whether when I buy something with my hard earned cash whether I should be caring about the dude on the other end of the deal and his right to earn hard cash.

(does my employer/client care about my right to earn cash? and if not, then why I should care when it's my time to be handing out the cash?)

I have to say, though, the advice here seems kinda obvious. Standard stuff for any purchase negotiation.

[zoommair]

Very good point. A salesperson goes through a lot to get you a car. Buying a car is not like buying a toaster. The Salesperson is not a cashier.

He needs to know the product inside and out and be able to communicate that info to the customer. He needs to fill out the paperwork and communicate your wants and needs to management. He needs to prepare the car, get the car if it's not in inventory, and prepare it for delivery. When the deal is done, he needs to be available to answer questions.

[thangnguyen02]

Again, if you find that's all too difficult to do or cost you too much time/effort, then QUIT. Stop complaining about it. We're here to find a way to find a GOOD DEAL, not cheat you out of business, like the way you guys try to cheat money out of our wallet. I'm thankful for video like this. Thanks. One more note, competitive bidding is really good. It saved me $5K on my Camry from to the price told by the saleman. $5K saved in 3 weeks, not too bad, right?

[bberry51]

new or used? Had the car been hit coming off the truck? Did you verify the reputation of the dealership your purchased from? Just saying 5g's is nice, but a company like toyota isn't that desperate to sell a car these days. I find your statement hard to believe.

[thangnguyen02]

it's a brand new 2009 camry le, silver, w/ everything on it from moonroof, spoiler to nav. sys. & tin windows. was asked 26.5 @ 1st, which was ridiculous counting that i've got very good credit. then i got out less than 23 final price, plus 1k+ from financing (tried to give me 6.8%, but finally got 3.9% - on sale thing). so, that's how i figured i got 5 k there.

[bberry51]

see that makes more sense than your initial argument.

[FistyHandslap]

Lulz, this is actually pretty funny, the number of people saying how he's a jerk. First, car dealers make a killing. They screw people over all the time. And if the dealer is getting screwed, G - E - T S - M - A - R - T - E - R! Look, I spelled it out for you already, so you don't have to figure it out, realize you're not nearly intelligent enough, and then ASK! That's how -I- feel about it.

[timidgothica]

There are a lot of angry car dealers posting on this video. It's a real shame. And how is calling him a jerk going to make you sound like a credible sales person?

[RalphPaglia]

There is NOTHING about this jerk's recommendations that the words "fair and reasonable" could be applied to... Is it really getting a great deal when the dealer has no income, no employees, no customer service, nobody to clean, wash, repair, prepare the car... Nothing? This guy should be walking and taking the bus, because he doesn't deserve to own a car!

[csimpkins]

So then don't sell to him. You're under no obligation to sell to him, just like he's under no obligation to buy from you. If you are selling cars that you're losing money on and getting 'screwed', then you're not running a very good business.

Or you're making up the margin by screwing everyone else.

[RalphPaglia]

Let's see if I get this straight... He wants dealers to sell the car at a loss, have no opportunity to make profit on a trade-in, give up all finance reserves, not sell any aftermarket or warranty items... Hmmm, so who's getting screwed in THIS scenario? What ever happened to a fair deal, at a fair price and earning a fair profit margin on value added exctras that consumers can then include in their low APR auto financing?

[ni7enichi]

Fair to who? Just a question. We as Americans can let the domestic brands sell cars heavily in China to keep themselves afloat so we get good prices and it's the Chinese who end up buying a car with a 18.99% APR.

[ahaman85]

Have you ever heard of the term straw man? No where does he say any of the above.

He does says you shouldn't be foolish enough buy add-ons--not that the dealer shouldn't attempt to sell them.

No where does he rally against businesses making a profit.

[AtalayaC]

They would never sell it at a loss.

[zoommair]

Many do when competetive bidding is involved.

[NotRelated]

excellent! and I thought my dad only knew these tricks..

[fernarenas]

bravo!!! my hero!

[thangnguyen02]

I just bought a car from a dealership w/ Courtesy in its name, and courtesy was what they tried to deliver. It doesn't mean however that they didn't try to play game. They did, but not as hassle as other dealers. I was in and out in 4 hrs (1 hr waiting for them to clean up the car.. didn't like that), and got an '09 LE, silver, base w/ only moonroof as options, for $500 under MSRP for OTD. Great, probably not the best deal, but I think it's great. :)

[zoommair]

Some good info, some really bad info. You'll get a great deal, but you get what you pay for. Best deals are made when you find an honest salesperson, both treat each other with mutual respect, a bond is created, and prices are slashed down tremendously for just that reason. Then whatever you want, they give you because you've spent quality time with them. After your purchase, both are happy, and they will do even better when you bring more business to them.

[thangnguyen02]

find an honest salesperson? I've been shopping around for 2 months, more than 12 dealership, American and Japanese cars... I cannot find ONE honest saleperson. If you find one, you've been fooled.

[snewjaimes]

I was a salesperson. I was pretty honest person however some people did not understand on some parts of the negotiation, I pretty much make my offer, if not literally kick them out(words). Or do you rather have a SUCK up person?

[zoommair]

I am an honest salesperson. If you haven't found one, you are a fool.

[macntexas]

You might want to look into Scion or Saturn. Scion have no games. No Haggle. I loved my purchase.

[thangnguyen02]

I don't believe in a no-game dealership. If you did, congratulation and I'm telling you. I'm envious.

[arsen380]

dumb ass.. waste all that time for what.. buy what you can afford.. dont go wasting your time and sales peoples times.. i have idiot cheap as hell customers like you all day.. i hate your kinds i hope you die slow and painfully in your cheap base model car

[slowbox]

You are a salesman that says "buy what you can afford" ??? No wonder you hate your customers... you are a sh!tty salesman, and frankly you sound like an a-hole sir.

I love giving salesclowns a hard time. No remorse.

[cuntacular]

This video is AWESOME, great advice. I'm not so sure about selling your used car somewhere else b/c I KNOW I've gotten more money than my car was worth... Other than that a lot of his advice is great, especially about all of the Add-Ons! The dealership sometimes sends vehicles to after market places and charges YOU shit loads more than what you would pay if you went and did it yourself! It's true.

[legend00001011]

Yeah, but you don't realize that the dealership works in the money you think you are getting into the deal. Trust me, they are the middle man, skip them as much as possible

[Sidicas]

Great information and great advice. I was shopping for a used car last week and a dealership first told us $2995 for a 1994 Used Ford in great condition.. At the table, they changed it to $3995 which was over $1,500 over Kelly Bluebook price. Walked out right there and bought a 1993 Saturn for $750 from Craigslist with less than 120k miles and I couldn't be happier. Don't forget to use CarFax!

[R8RnSeattle]

Full of bad informaton. You sell your current car? As IS sticker on a NEW car? If you believe that time is so invaluable that all you have to do is waste the time, then this is a great game to play. Otherwise, find someone knowledgeable and trustworthy. I know car dealers have a bad rep,but just as any industry there's good and bad people involved. This guy is a misinformed who seems to think he's stand up comic. Just a nerd with quite a bit of bad advice.

[rickyr]

Interesting. About selling your old car, what if you financed it and still owe on it? How does that work in this setup?

[MazzThePianoman]

When you get your loan from the bank include the amount needed to pay off the loan and fully own your old car.

[Axis103]

Very very helpful vid, thanks for posting man!

[Arkitekt3813]

wow... are u serious? I mean, I know this is spam, but are u serious? wow. I mean, really, who actually believes this crap? I know sum1 does, they wouldn't post it if it never worked. For shame.

[wgcrush]

This guy is on the money. I buy cars the same way, it's so much fun!

[angelseeker]

Awesome! Thanks for sharing this.

[iFreeCarve]

Is this supposed to be a pecha-kucha presentation?

[thoughtbubble]

very helpful, much obliged!