Confessions from a Car Dealer's Backroom

[gr8vibes2]

I called a VERY interested car dealer until he found out I was paying all cash. yeah this video is true.

[FloppyHatPhotos]

I'll save you Money as well just pay cash for what you buy.

[dodgecity2010]

ill tap that ass



[RaguelAngelofBalance]

The best is those fees they stick on you close to signing. Such as "PRICES INCLUDE ADMINSTRATION FEE, GLOBALI.COM REGISTRATION FEE PROGRAM, AND OMVIC FEE". These can be almost a thousand dollars. If I see this, I walk out.

[volkswagenaustin03]

I always pay cash for my cars. I just bought a 2011 Volkswagen Touareg Executive with CASH. I don't have this problem.

[RaguelAngelofBalance]

@volkswagenaustin03 Hey Junior, not everybody has cash to drop on a new car. Or you are just full of shit.

[volkswagenaustin03]

@RaguelAngelofBalance I am not a young person. I am 28 years old. I can assure you that I pay cash for my cars. And I am also planning on buying a 2012 Chevrolet Tahoe LTZ within the next few weeks.

[FrankRizzo762]

I just want to punch that women in the face............

[KnightChatX]

Also make sure you have insurance on the car before it goes off the lot once you've finalized the purchase and car gets their for pickup, as it's illegal to drive car without insurance, ignore the paper tag, it's not a drive without insurance sticker, you don't wanna risk taking car off lot only to get a ticket for driving without insurance before you even get car to your home.

Make sure to check miles on vehicle when you first see vehicle and watch what workers are doing with the vehicle.

[KnightChatX]

Forget the credit system entirely, forget financing, forget all that junk, save your money, when your ready to go buy a car choose a car you can afford, make sure it has exactly what you paid for, read everything, don't let em talk you into less, make sure you don't get messed over later after all papers signed and time to take car off lot, then problem solved.

Keep it simple and save yourself the headaches and uneccessary problems in the longrun, never buy something you can't afford.

[sidhartha1]

years ago,i was a mortgage broker, did due diligence, know how rates work. went to nissan of corinth, soon as they gave me numbers i saw the tricks, and mentioned what i do. they told me to leave. lol. hate car dealers.

[carshen1000]

check carshen.com for dealer bottom line price

[Painkiller9013]

11 Car Dealers watched this video!



[choua01]

I want know how much does it cost to finance that a.ss of her's,  I have good credit too.

[SkepticalAaron]

You don't need to pay for your credit score and you don't need to go to those scam "free credit report" sites either. By law, all 3 of the major credit score reporting companies are required to give you 1 free report per year.

[ultramedieval]

@SkepticalAaron It's true for the report but not the score. Unfortunately we have to pay for that.

[heartlessvietboy]

Some interesting things to think about.

1. Does feeling the beauty of a car take a personal low?

2. Is building trapezoid back lights in a square back light world wrong?

3. Do new trucks look old because of old trucks, or they look ugly in general.

[Pilotsofer]

that bitch is anoying as fuck

[12salem]

Id like to get her in the back room for some confessing

[SUBLIMEfan111]

That us why you pay cash....

If you can't buy pay cash, you can't afford it.

[georgethe09]

i want her ill take her anywhere in my chevy

[jnnycliff]

Save up your cash and buy the damn thing, If you dont' have the money dont' drive the fucking car? If you cont' have money now you have to pay Full insurance, interest and car notes. How about the gas? If you don't have $500 for the car you can't support a car, when it break, when it need maintenence? Own a car you have to have altess $500 for used car and $1000 for new car.

[Sheridanroadmusic]

WHAT! Did he just say that people get approved for 8% and they get charged 19%???? That is complete bullshit. Dealers are capped at a 2-3 points depending on the bank that approves them.

[mannotwiththeplan]

@Sheridanroadmusic he said 9 or 9 and half percent.

[27lebs]

So much of this financing scamming can be avoided by simply saving up and paying cash. I've done it multiple times.

[onenickelmiracle]

Her credit score is high because famous people and politician's credit files are hand groomed to be sure there are no errors. Why? Anybody with power would change the system and speak out if they were treated like normal people.

[mjpitche]

She's so hot!! Love those dark eyes!

[slyhitman214]

lol only idiots buy brand new. Get a used one with 2,000 miles or something.

[ijp66]

@slyhitman214 Not really true anymore....The used car market is at an all-time high. With the discount you can get on a new one its not really worth buying a almost new used car.

[ijp66]

@slyhitman214 Not really true anymore....The used car market is at an all-time high. With the discount you can get on a new one its not really worth buying a almost new used car.

[MrBry329]

so if you dont want something on the car because youknow it cost alot more than it do at pepboys or where ever can you have them take it off the car to reduce price

[gedaman]

Dealers actually make most of their money in the service department. A car is a one time purchase, service is ongoing.

[4cClubT]

@gedaman Yes gedan- my dad just paid 1400 for a so called steering problem,Ive owned 10 carsthat were over 10 yrs old and never had or heard of a steering problem-the seinors get scammed all the time,boy thats a lotta grocerie money

[XxXxdyedsoulxXxX]

THIS SHOW AIN'T GANLAND MOTHAF***ER!

[tvbond1]

yOU FOLKS ARE A BUNCH OF COMPLAINERS. GET TO WORK

[millwrightman99]

problem with the entire auto industry is that screwing the customer is condoned by the manufacturers ---Just look at the freight charges on any car now ??? ridiculous .So in general customers distrust dealers who for years have proven to be usurpers at every opportunity.Starting at their shop rates all the way to hidden charges for garbage like etching and crappy overpriced undercoating . What a revolting industry they've spawned -- The American dream turned into a veritable nightmare .

[vasallizinni]

Factories need to be watched more because their practices force many adverse conditions on consumers who just want to pay a fair price but actually end up paying for those generally wealthier consumers who actually rip off the regular consumer buy actually making the dealer lose money selling cars to them just to keep the factories happy. Dealers should not have to resort to overcharging certain costomers in order to survive. Maybe this will change once factory practices are regulated.

[vasallizinni]

This unfair pricing is not enjoyed by new car dealers but is rather imposed on them by the vehicle manufacturers in several ways. Dealer volume incentives or cost differences which can be much higher for dealers who don't sell at unfair low prices to certain consumers. This practice also lowers the vehicles used value generally and leaves those who pay a fair price at an economic disadvantage. To pay the least, finance outside the dealer or pay cash, only see the fleet dept, get an invoice copy.

[vasallizinni]

The customers who take advantage of dealers by purchasing new cars at 100 dollars over dealer cost force the dealers to survive on charging other customers way too much to compensate. The factories force the dealers to sell certain quotas which is why they can't afford to pass up 100 dollar profit deals, which alone is not enough for a business to survive. Usually the consumers who are well off financially pay only 100 over cost leaving the less well off consumers to make the dealers income.

[graverobber35]

I can't understand the son of a bitch. He talks like he has a spoonful of shit in his mouth.

[ironaddict11]

it would have been pleasant if you could hear him clearly without stupid music in the background.. I don't need a soundtrack to an interview.

[BFX9000]

@ironaddict11

Yea, they have to make it sounds like an interview in the show "Gangland". Ha~!

[lovekerala4ever]

mee too.. i wish...

[jmrebmann]

Consumer Reports is a joke! He can't give her any specifics. What would a good rate be with a good credit score? Ahh again do your research. Good answer.

[stumac46]

For all you people who are NOT in the motor trade, why dont you start up a business selling warranties to car dealers for $51. You will make a killing because we cant buy them at that price and we are already in the trade. And also, are there any other businesses that the public dont expect to make a profit except the motor trade?

[mrmoon5250]

Ummm... so basically nothing they said was accurate. Who the hell would mark up a rate from 8% to 19% or whatever they said? That's not even legal. That would be impossible to do. It's unfortunate that "news shows'' like this exploit the fears of consumers and on top of that feed them with inaccurate information. Most car dealerships are filled with respectful employees who are in business to make lifelong customers. Stereotyping and lies like this are just wrong.

[DimaKamyziak]

@mrmoon5250

Yes it's true.They tried to do it with a few of my friends.I usually go with them when they want to buy a car.Nuf of your bullshit,buddy.

[tinderinc]

@mrmoon5250 I worked for a car dealer once that would finnace anyone 27-33% intrest rates. NO joke its almost like a loan from the MOB

[dutchmen1002]

There is nothing wrong with a fair profit. That is why dealers are in business. This is their chosen profession which is a service to people and it is a for profit business. You can go on line to try and get cars and pay dealers NOTHING as far as profit goes....and then people like this complain. What an ignorant video. Next time you go buy a pair of shoes...ask the shoe salesman when he shows you a $100 dollar pair of shoes and ask him if he will take $20 for them. See what happens.

[DocWhitley]

People are idiots!11% is BS!Laws Cap you! Warranty for $51 get real... Everyone wants the Dealership to give them the car below invoice and then not make any money on financing... How do you expect them to stay in Business? People spend more in Profit at McDonalds in 5 years then they are willing to allow a dealer to make on the car. Then wonder why the salesman does not care about them after they buy the car. People need to grow up it is the second largest purchase an average person will make

[Bloodsteri667]

fuck the dealers, why can't people buy directly from the manufacturer?

[vynstik]

I didn't say anything about houses. I'm talking about auto finance. the dealer can legally add 2.5% to your auto loan. and they all do, up to the max in their state on new and used cars. and guess what the people never know. even if they did, all auto dealers do it, so what are you going to do. never buy a car again. oh and if you think ill just use my own bank, guess what they do it

[wrinkleman56]

@vynstik amen. and these clowns will pay for a house 3 times in 30 years!

[heartlessvietboy]

LOL. You profited $100K after he leaves.  He made $500K. In Five years you lose $250,000 and not even knowing why!! You filed bankruptcy. LOL.

[heartlessvietboy]

And in Five years, you lose all your customers and not even knowing why!!! OMG!! (LOL!!!)

[jazzyjeff308]

retail clothing stores mark their products up 400%

[HunterMann]

@jazzyjeff308 Yes, but they get stock with about half of what they bought wholesale, so they have to toss it or deep discount it. There mark-up is based on how much they will be losing on unsold inventory. If you wanna complain about high mark-ups: The average antique store buys an item for $75 and sells it for $1,200. Do the math.

[Commando303X]

Annoying anchor...

[vynstik]

you cant bump some one that much. State law in Texas is 2.5% so if you get a buy rate of 8% they can try to close you on 10.5%. and I have seen some banks have a warranty stipulation on a loan. and dealerships are in business to make money like all businesses.

[ricoswerve1260]

Get approved at 8% and get a rate of 19%? That guy doesnt know what the hell he is talking about

[ijp66]

I have been in the car business for over 10 yrs. Yes we try to make money we are a for profit business. Yes we make money on the financing when the customer finances with one of our banks. However we are typically able to obtain a better rate for our customers the HELOC customers, customers who go to credit unions, etc...

At the end of the day if you dont like the rate or dont want to buy the extended warranty then dont buy it.

[cooolben]

one years ago i cancel my credit card, and now i decide to by everything by one time real payment. If i can't buy it, just drive my old car.

[vynstik]

@cooolben say that when you go to buy a new house. your a genius.

[bwc1ngame]

@vynstik has nothing to do with a new house lol. its about cars, unless you go to a used house lot?

[yankeefan42]

this stuff is so obvious. People don't already know to find other financing rates?

[aviator902s]

All of this is old news to me, but I'm sharing it on facebook because I have family and friends who are just young and/ or naive enough to get burned.

One thing they didn't mention is the option of negotiating your out-the-door price online beforehand, then printing it off and taking it to the dealer.

That's how I bought my new car two years ago. I saved over $1500.

Not all dealers will negotiate online. They don't HAVE to. You don't HAVE to give those dealers your business either.

[pontiaclives]

These guys are all crooked.

[mynock05]

that bitch is fine

[tvtechwonV]

That bittch from CNBC looks like a fn cunt....

[CoonShoot]

Is that guy Daughtry?

[EveryDaysAHolleyDay]

Part of that is good advice, but it seems a bit dated, today with the car companies hurting so badly, and if you are walking in with quite a bit of cash (over 25% down) you can finance much cheaper (like 0% for 48 or 60). This is one of the few times in the last 20 years where if you are buying the right vehicle, it is a lot cheaper than buying a new model as oppose to a late model-low mile.

[DriedUpSquid]

Unless your car is easily replaceable with liquid assets, GAP coverage is a good thing. Most credit unions will sell it, so you don't have to buy it off the dealership.

I work for one of the nation's largest insurance companies, and when someone's car gets totaled, they realize they owe $8,000 on a $5,000 car. People say that insurance companies rip off people when their car gets totaled but the reality is your car is not worth nearly what you think it is, regardless of what it is.

[punchski]

First of all I can tell that you don't know what you are talking about.  Please tell me why if I buy a new car I dont need GAP insurance. And I would like to see where I can buy a warranty for 51 dollars. And here in MI you can hide any thing. Read a book

[ac51979]

A lot of people get hosed with dealer extras they don't need. Rust proofing, Window etching, fabric guard, nitrogen in the tires, wheel locks, GAP coverage, and the most expensive, Extended Warranties for ONLY $20 more per month (over the period of a 60 month loan this is $1,200: 72 months would be $1,440).

Total cost for dealer (estimate)

$51 (assuming they did not have to pay out on the insurance)

Total cost for consumer (estimate)

$2250

[echobravo11]

If you think an extended warranty costs $51, you are a complete idiot. What company is going to pay to cover ANY part on a car other than the windshield wipers for $51?

[ijp66]

@echobravo11 LOL, you are correct. Like the cost for the dealer on a warranty is $51.00! People have no clue.

[wrinkleman56]

@ac51979 you are fucking stupid and you have obviously never been in the car business.

[ac51979]

If consumer did all appecile services themselves with rest filled in by dealer(estimate)

$1564

That's a savings of $686!

If consumer did all appecile services themselves without getting others done by dealer.(estimate, this includes, Window etching, fabric guard, nitrogen in the tires,and wheel locks)

$45

That's a savings of $500 and $2205 of all services!

If you agreed to all of these, it looks like you bought the owner a real nice extra vacation.