11 FAKE FEES: DO NOT PAY at Car Dealerships - by AUTO Expert: Kevin Hunter 2020

[Music] [Music] [Applause] eleven fake fees you should not pay at a car dealership hi I'm Kevin hunter I spent enough time in the car business to help you know what to do and what to avoid in a car dealership you see I was a top salesman but I couldn't stand the nonsense expected of me and I know a lot of people in the business who share this opinion but finally my last dealer fired me twice in the same week interestingly enough for helping my customers get fair and honest treatment at his dealership the owner said my managers don't know how to handle your customers what he was really saying is his car managers didn't know how to deal with people who could see right through the BS and expected an honest car deal anyway I took that experience as a positive step forward and because I still wanted to help car buyers just like you even if I no longer had anything to do with the car business I published videos to help people out here we are years later I now receive 12,000 messages a year and comments from car buyers all around the country what you're about to hear concerning dealer fees comes right out of personal experience and daily testimony from real car buyers just like you let's get started first two rules never say you plan to pay cash for your car until after you've negotiated every aspect of your car deal and have it all in writing and you're sitting in finance if you don't already know why that's important ask me in the comment section down below number two don't ask for any of the fees that we're going to talk about to be removed from your car deal until just before you're ready to sign now there are three very important things you need to know about these fees before we start number one the only legitimate fees that you must pay our tax title of license fees that's it number two finance officers write thousands of car deals every year you only do this once when you finally take a seat in finance you're sitting across the desk from the highest-paid salesman in the entire dealership he or she is a master at packing a car deal full of extra costs fees products and they work for the dealership not for you no matter what anybody said this is not Allstate and you're not in good hands no matter what anybody said before this and as car buyers tell me from all around the country finance managers are also very skilled at making you feel stupid for saying no number three the finance office is the number one profit producing department in the entire dealership finance beats out sales department parts and service this is not chump change we'll be talking about a newbie finance officer we'll take $1,500 from you an average one will take $2,200 from you a seasoned one will take $3500 two or more and I've seen a complete slimeball finance guy takes 7,000 dollars from an elderly couple in finance who never saw it coming and then this guy and his salesmen got praised for it by the dealer owner in the Saturday morning sales meeting yep that's the character level of some of the dealerships now I hope you buckled up and you're ready to take notes because if you mess up in finance you're screwed let's roll number one dealer prep fee don't pay anything that looks or sounds like a dealer prep fee here's why inside the dealership they have what is referred to as a lot pack it's the money they spend on washing waxing vacuuming doing a little basic maintenance and detailing your car and putting some gas in it have you ever wondered why dealers pay such a low price for the car they take in on trade well it's quite simple they consider the price they paid for the vehicle trade-in tack on what they called this dealer lot pack ranging somewhere between a thousand and 2500 bucks and then establish this as the new wholesale price that they own the vehicle for and then they tack on their profit margin so if you let them put a dealer prep fee on your car deal you're letting them charge you twice for the same thing don't pay dealer prep fees it's already in the cost of the car they don't want you to get suspicious so they make it a much smaller amount thankfully but I just saved you as much as four hundred bucks number two advertising fees this might be presented to you as a regional advertising fee or co-op advertising fee or dealer advertising fee and it will range somewhere between 100 and 400 bucks could you imagine standing in line at a store and the cashier says all there's the fee we charge for advertising our products on top of this are you kidding me you'd be rolling on the floor laughing but yet unsuspecting people get stuck with an advertising fee in the car business just say no thanks we just saved you another one okay number three an ATM fee or additional dealer markup this is pretty brash are you kidding me what exactly do you think this is well if you guessed it was just profit padding on your car deal you'd be correct this is just a slap in the face to a customer now that we negotiated the car deal here's our ADM fee Yeah right tell them to take a hike how much will it be well it depends on how greeted the dealer is and how good you are at saying no somewhere between 250 and a thousand bucks number for delivery fee or destination for you there's only one example whereas destination fee is a legitimate and you'll find it plainly listed on the mulroney sticker or MSRP sticker whichever way you'd like to think of it as which you will find on the window of a brand new car and it's already included in the suggested retail price of the vehicle you notice it right there above the the final price dealers know that consumers don't know much about this so many dealers take to adding delivery fees or destination fees to all of their cars well now you know better and I just saved you somewhere between a seven hundred and a thousand dollars number five nitrogen fee car dealers are always coming up with something new and nitrogen is just one of the latest greatest they claim your car handles better it gets better gas mileage whatever bogus claim they came up with and then stick you with two to four hundred bucks first you don't need this secondly you need to look how much nitrogen is in the air all around us like 78% did you know that so the dealer supposedly pumped out the remaining portion air that wasn't nitrogen and got it up to 100% and now you have a rocket car with nitrogen tires I don't think so say no to nitrogen two to four hundred bucks save number six credit life insurance disability insurance credit protection insurance the finance officer is setting up a car loan this isn't your insurance rep if it sounds like insurance just say no five hundred or thousand bucks saved depending on how many these policies you might have fallen for number seven vehicle enhancement packages the investment by the dealer for these items is ridiculously low like pinstriping or mud flaps but you'd think they upgraded your car to maximize its resale or something in most cases they've spent fifteen to thirty dollars on the package they're trying to lay on you for two to five hundred bucks if they claim it's already on the car be ready to get out of your chair and go help them take it off two to five hundred dollars saved now if you thought this was bad so far these last few fees are big and they are bad or worse as anything I've mentioned so please pay attention and take some good notes number eight theft protection been itching ID etching whatever they call it some dealers get ridiculous for this for example I had a recent car buyer contacts from California they bought a car that had three thousand dollars worth of these kinds of fees Gardena Honda blasted the poor guy with 495 for last night's theft 1495 for theft patrol and $9.99 per pursuit can you believe this this was like a nightmare out of a bad cop show all thanks to the Honda dealer in Gardena California anything that looks or sounds like numbers etched on your car windows claiming to be some sort of a theft protection system it's all junk just say no if there's a note of doubt in the back of your mind and you think you need this well you know because the finance manager made you feel stupid for saying no it's just a simple $15 etch kit you can buy yourself go get it put it on yourself on average 500 a thousand bucks saved number 9 document fee this is the fee you pay to have a dealer employee register the sale of your vehicle with the state licensing offices wherever you live a small fee is reasonable but document fees are very abused let me start by sharing with you that some states limit dealers to 50 to $75 for a document fees while other states let them charge you to the moon and back and they do so a couple of quick examples of the lower states California $55 Oregon 61 bucks SOTA $75 here's an outline of the document fees in several states some hit a thousand bucks but like Minnesota at $75 for the exact same thing the dealer charging $75 is making a tidy profit off the minimal work they do for this never pay more than 75 bucks and if they claim they have to charge it because there's a state law that says they have to really in words ripoff everyone the same well get up go out and get your salesmen and negotiate the excess fee right out of the pricier car it's nothing but a profit pattern in Minnesota where dealers charge $75 for a document fee the dealer will still pocket a hundred and fifty thousand dollars a year in profits after they pay the staffer who puts this data in for them by far this is the biggest most commonly bloated fee and severely abused by car dealers all around the country depending on where you lived nine hundred bucks saved number 10 processing fee or electronic filing fee well believe it or not this is the exact same thing as a document field however since many states have passed laws about document fees slimeball dealers just come up with another category fees under another name and it's the exact same thing take ellen russo for example a car buyer in florida sent me copies of his car contract from southern four-for-one Nissan in Royal Palm Beach the contract clearly showed two types of document fees 279 for a filing fee 899 for a document febo thing the exact same thing and both a huge ripoff if that wasn't enough yeah they put insult to injury and they charged him 105 dollars for a hope scholarships fee and never even mentioned to poor Helen that he was also an unwilling participant in their community goodwill you see when dealers like show the public that they're doing these community goodwill things they steal this money from poor guys like allied to put it in this fund and then say they're doing good things for the public if Allen had talked to us first twelve hundred and eight dollars would have been saved number eleven gap insurance all the dealers will be furious that I mentioned this precious product dealer gap insurance another highly abused expense could easily be $1,000 or more let me explain what it is and why they say you need it gap insurance covers the gap between what your car is worth and what your loan balance is now how do you get to this financially irresponsible spot and why might you need it the dealer will not say that you need gap because you're stupid and you fell for a bad car deal but that's what gap insurance implies if you knew anything about your finances you wouldn't have taken a zero cash down deal nobody should ever do those deals and you'd never be thinking about 84 months of financing are you serious that's what they call stupid you wouldn't be trying to roll over a trade that has huge negative equity because you like to repeat these bad car buying decisions you wouldn't be doing any of that stuff your loan is going to be huge and in three to five years that will still be much higher than the value of your car and if you get it an election is screwed with a big fat loan balance your car is gone you still owe thousands of dollars so you know what a stupid person gets to do you get to pay a thousand bucks for a policy that's already on a over bloated loan you're adding insult to injury so here's what you can do fix your mistake plan to put 20% down planned and never finance more than 36 to 48 months on your vehicles if you're financing more than that you can't afford the car you're trying to buy it's a rapidly depreciating asset any extended terms and zero cash down deals will hurt you financially and make you have to pay $1,000 for a ridiculously overpriced gap policy did I make you feel ashamed of yourself hopefully I also saved you thousand bucks make sure you subscribe below get more content just like this hit the notification bell give us a like to thank us for all the money we saved you share this with your friends on social media and put a comment in the comment section below help other car buyers just like you find these bad fees and avoid them I'm Kevin hunter until next time take care [Music] you

Channel: Kevin Hunter

Views: 1,454,534

Rating: 4.943716 out of 5

Keywords: Auto, Expert, Buying, Shopping, Sales, Advice, Reviews, Prices, Vehicle, Loan, Loans, Payment, Qualify, Monthly, Shop, Mechanic, Automobile, Automotive, News, how, to, Dealership, Car, Dealer, Finance, Chris, Fix, Chevy, Dude, John, Cadogan, car, salesman, ex, market, business, personal, finance, marco, scotty, kilmer, money, fees, taxes, dave, ramsey

Id: TqaSyeG9IIs

Length: 13min 53sec (833 seconds)

Published: Wed Oct 02 2019