Car Buying 101 w/ Gas Monkey Millenials

[Music] i got to talk to richard about something hey richard i didn't say he could come in what do you mean we just walk him off it's like you own the place so you know that i have an old truck and i've had it for eight years i don't know anything about what any of these what means you see me you always see me drive up i don't keep up with what you drive what do you drive oh it's a 2006 f-150 but i think that white box that we see out there the with the broken light bar yes okay that's you yeah let's go ahead okay so i'm i've been looking for a car for probably about a year now but i just never really capitalized on it um so i went up the other day to a dealership and i was looking at a truck okay and i liked the truck i test drove it everything but you know i just i've never bought a car before so you work here and you've never bought a car where did you get that one your parents gave it to you yeah they did well i was 15 and they when i was 15 i'd probably bought and sold like 20 cars already i mean probably you've never bought a car before my god what is this world coming to okay so i was going to get a tree hard yeah i was going to trade it in get a car get it this week so well the thing is is that i've never i don't have credit i gotta have zero credit so they were telling me that my my interest rate would be like 18 that's insane i know and i i don't know like yeah were you putting money down yeah 13 000. or no is it a new truck or used truck it's used how used it's uh two years old it's 2019. it's got 40 000 miles on it too and you were going to put 13 000 down and you're gonna trade yours in or sell it out right no i was just going to trade it in let's straight in yep and they won 18 inches where'd you go like one of these spots up here on harry hines yeah just like oh just like i saw the truck and i pulled over it was after work they were open they're open they're open till like 7 30. what are you insane i mean don't you i can't fathom that you haven't bought a vehicle before i just i mean okay well number one if you're at a reputable dealership there's first-time buyer type stuff and uh they've got programs for that um 2019 what ford yep ford stx okay so it's like the receiver cab yeah no no whatever oh four door yeah it's four-door okay with forty thousand miles on it yep ac yeah doors locks windows sunroof like that no sunroof okay but i mean like all the you know essentials really so that truck should be worth 28ish 29 grand that's what i was hoping what do they want for it 37 you didn't sign anything did you no i did not you would have freaking screwed yourself man i mean that was eighteen percent interest six seven thousand dollars over what it's worth plus your trade plus thirteen grand why would you in today's society why in today's you gotta be so confused i can't even speak in in today's marketplace money is cheaper than it's ever been i don't even need money and if somebody will loan it to me i'll take it i mean what happens if you're going along in life and something is you know and something happens after you bought this new car or truck and something happens and you need uh you know ten thousand bucks to fix some or you know whatever you got your money in a in a truck right i mean right now i wouldn't give a dollar down payment for anything money's too cheap it's the cheapest you will ever see in your lifetime so will you help me i really don't do very well with helping people because because y'all don't listen and you don't pay attention and then you don't understand and that freaks me out more than anything well that's the thing i don't that's the thing i don't know anything so i need to i need your help though i can't believe that i have a person in my employee at gas monkey garage that has number one never bought a new vehicle or even a vehicle and number two getting a paycheck and but says they don't know anything what exactly did he do for me anyways i don't even know uh this right now yeah this stuff and filming jesus all right uh i'll call a buddy of mine up here uh we bought a bunch of cars from him and a bunch of trucks over the years and uh let's go up there and talk to him see what kind of deals they got and what they can do about a first-time buyer crap see if you're even getting a decent price did they appraise your truck yeah they did how much five thousand then why would you trade it in if they're giving you five grand for it then they either know they're gonna lose because they're freaking ripping you off at eighteen percent and seven thousand dollars over what it's worth or they think they can make 500 or a thousand on it which is leaving money on the table too i'm gonna call my buddy up here okay at the ford dealership um and uh we've actually done a bunch of stuff even on the show so uh i'll take you up there here in a few minutes and we'll see what kind of program and i'm gonna teach you how to buy a car and then hopefully one day if you're dumb enough to have kids of your own you can teach them okay your parents did you a little bit of a disservice here they probably should have walked you through some of this probably and you don't even have a credit card no i just buy everything in full well that is a good thing to a point but you need at least one credit card in your pocket to be establishing credit right you know so i'll teach you about that too but we'll get you a good one with a good interest rate and don't buy anything you can't afford and don't ever not pay it off right you know so okay just watch watch and learn brother okay all right appreciate it i don't have a black card in my pocket because i'm stupid okay i'll see you later trey it's richard check it out i have a millennial that's never bought a car before and almost got hooked into a car for 10 g's over what it was worth or at least seven and at 18 percent interest because he has no credit score so i'm bringing him up there and we're gonna teach him how to buy a car or a truck he wants a truck all right no i want you to jack with him relentlessly guys an idiot [Applause] [Music] so pretty amazing to me that uh we've got a guy that works at gas monkey garage that's never bought a car or been in a dealership until the other day and he almost but he was smart enough to walk away so i guess there's credit for him and he's supposed to be following me to uh my buddy's dealership up here sam pax five-star ford you've seen me do a lot of business there so they're my favorite shameless plug but uh check it out we're gonna go in here and we're gonna get him a decent deal hopefully and teach him how to buy a car or truck for that matter but uh teaching how the system works and how to get a good interest rate get a good deal measure out the different components of do i put money in do i not put money in do i go 48 months or 72 months you know for me if if there's a promotion going on for zero interest who cares stretch it out as long as you want it's zero interest as long as you don't miss a payment uh then no penalties kick in and you're you're off to the races you're on somebody else's dime but uh we'll see what he can do he finally caught up to me back there i don't know why he needs a new truck he can't even drive for all right well now he's behind me so we'll uh we'll quit talking about him i know it's a piece of crap but i don't know man i kind of have but it's your piece it is my piece of crap that's the thing dude i've had this car for eight years so i don't know i will definitely miss it being mine back here is like where all the sales people will go once they've talked to the customer and they've arranged the the right questions you know how much do you want your payment to be how much money do you want to spend what kind of options do you want all that kind of stuff and then they come back here and they work with finance to try to figure out how to get you in a vehicle that is as uh close to what you can afford and what you want to do as you can right now most people come in with big dreams and and uh get sold on uh the low payment right you know let's face it they can put you in a payment you tell them you want to spend three or four dollars a month yeah they'll find a way to get you to spend through 400 a month what you want and most people make the mistake of is you want a certain vehicle at the best possible price and the best for you to trade in at the lowest possible interest right all right right now like i said i'm interested in low time all-time low what's up what's up richard living the dream good to see you how are you doing austin hey austin my boy austin here yeah coming to my office this morning he says hey i need your help behind the truck i said what do you mean he might help buying a truck go down the dealership get one he goes i've never done that it's okay i mean dude you never did it on your first time either it was your first time on the first time yeah but i mean he's 22 years old i mean by then i'd probably bought and flipped about 200 vehicles you know i've just had my same truck forever man so what kind of truck do you got now it's a 2006 f-150 all right 5.4 i mean it's it's kept up all these years all these years it's a little beat down and got a crunch in the door yeah like i got backed into i'm gonna trade that in yeah i want to okay yes sir all right what kind of truck you're looking for just a newer one than that like stx i mean i can't probably can't afford a lariat and all that stuff so i'm just i'm gonna be looking at my options but you know okay obviously he's on a little bit of a budget he's got some money to put down but i'm kind of against that because money's so cheap right now but he's got no credit because he's never bought anything he doesn't have bad credit he's got no credit here's the deal if you don't have any credit okay the lenders are going to want some big down payment and that's going to also drive your rate okay so that the the car the truck needs to be the right price truck because nobody's ever given you the opportunity to have credit before right and you've got to buy your credit down so so what that does is if you don't put any money down right the rate's going to be really high okay but if you the more you put down the better your score out which is the better the rate is okay all right so let's go sit down and see what he got he wants uh he was looking at another dealership that was going to tell him like 18 and all kinds of craziness but uh how much money were you putting down when they took you 18 i mean that's like state max right no so uh so i was gonna put 13 000 down um plus my trade-in so whatever i would get for my trade and i was just gonna add that all together and then probably finance and they were at 18 they said that it would be 18 if i did it alone okay so what what was the amount of the truck that you were buying it was 37 30 yeah 37 30 so it wasn't a new truck no it was not two years old with 40 000 miles stx so stx will work because i i think there's there's some programs right now i knew that there is a thousand dollar rebate if you finance with ford credit and there's another 1500 rebate and four-wheel drive's a must no it's not a must i mean that the truck i have now is a four-wheel drive but i don't you don't use it i mean i used to in high school yeah you just go mudding and stuff yeah i lived out in the country so you know we would just go and do it now you could if you work for him you can kind of customize his uh trx out you know no okay but we can see those words in here we say raptor in here yeah his raptor i'm gonna take his raptor out there you go there you go well you can customize one i think the best truck for you would be a two wheel drive stx okay and we'll get your car praised i already gave up your boarding keys so he's checking it out right now always he okay so we're praising that right now and we just need to find you a truck yeah all right so what are we looking at what do you got in stock huh i tell you typically we have about 300 vehicles in stock 300 f-150s right we've got a total of about 50. but that's what i've heard there's there's a shortage every everything everything is going for uh msrp but because of your status and i know we sell a lot of the gas stations yeah status means yeah but i was i was a little bit wrong in this particular situation with what i talked to at the office i was like there's all kinds of incentives all kinds of things there's really not as much as there usually is because with the pandemic and with the chip shortage and everything else like he said he's down like 80 percent on his on his inventory actually actually though there there still is that there's a thousand dollars with ford credit and there's 1500 rebate going into the future rebate means it's cash it's cash that the manufacturer gives you is to entice you to buy the vehicle okay but always roll that into your deal don't i was gonna say yeah don't ever take cash with it because that they're giving you 1500 cash and then charging interest for it so always roll it into the deal yeah if you want to give me 1500 just throw it back in there i don't even like giving you a paycheck not you i'm sending this behavior so let me let me just show you something real quick okay this is a this is a truck that's got a 44 210 total before discounts but because it's a stx package which has the 20 inch wheels the color-coded bumpers uh power driver seat they're giving you a 2095 option discount which brings it to 42.11 i'm gonna sell it to you for forty thousand dollars minus fifteen hundred dollars from ford that's thirty eight five minus a thousand dollar finance with ford credit and that would be thirty seven thousand five hundred dollars minus your trade minus your down payment what's the interest rate could be it's gonna depend on how he scores out so there's four different levels that you can score out there's four different tiers and it's based upon the amount financed it's based upon the term it's based upon the truck and it's based upon your credit okay we already know you don't have any credit so that's kind of a little ding you got big down payment yep that's good and are the payments going to be within how much you make and they try to keep it about 15 to 18 of your total income okay to be able to pay on a car so just give you an example if you made two thousand dollars a month they wouldn't want you to be more than three hundred dollars a month in payments and if all that checks out and all that's good we possibly could get you maybe a six nine rate if you score out good with four credit so what if so look at that that's that's 500 more for a brand new truck right a 20 21 all new body style okay and so that's it's 37 and then minus the the money down yeah with the truck down so the truck and the we think your truck's probably worth four or five grand so okay call it five so let's say five thousand dollars so you'd actually only pay tax on this amount 32 5. you don't you don't pay tax on this if you didn't have the trade-in you'd pay tax on that but because you have the trade-in and you've already paid tax on it you can't get taxed again so you're you're paying tax on the difference okay so that five grand really is about fifty three hundred dollars and he thinks you're gonna be at about six point eight not eighteen right it's about a third that's about a third it's a third yeah and six point eight is still high it is yeah it sounds like what if you let's say his parents got stellar yeah what a cosign what what do you think of rate companies i think they do have good credit too so if they've got stellar credit we probably could get it into the fours it depends on your term too right how long are you going to find what's everybody doing nowadays because i mean is it 60 because i was looking at options i just don't know is it like 60 months or what is it 60 72 some some some manufacturers are actually doing seven years which is 84 months you're not going to do that with your down payment right what we need to do is make sure you like the truck if you like the truck we need to fill out a credit application on you okay and hopefully get one on one of your parents right and type it up submit it to ford credit and then it'll spit back out what the interest rate is why would it be so high with a cosigner if they got good credit well because they know the car is for him and they know the cars it's 4.9 is not that high what's it going right now i thought it was like one or two you buy a damn house for 2.4 yeah this is in the house this this this moves the house stays put man i've got to see you you got a truck you can look at it yes i do have a truck you can look at i want to see what their credit is before i spot out and tell you what they're interested okay all right i know we're in that range come on thank you sir thank you look at that it's got 20 inch wheels bumpers are color you got a screen right in there i mean that's a nice truck but this is a real nice truck maybe you can see mine compared to this so we've got air vents in the back go take this one for a test drive okay and then while you're doing that let me package up a deal and i'm going to give you worst case scenario okay of what what i think that it would be okay with the coach time right cool okay yeah he can take it i don't care cool yeah that drives really nice isn't that nice and it's fast when did you graduate college last year may of 19 or maybe you know 20 uh yeah december 2020 oh that's even better that is so so if you're a recent college grad that changes everything oh really yeah with ford credit so there's a college grad program there's not a first-time buyer program but there is a college grad program oh so there's an extra 750 rebate so you can go up to you can go up to that v8 and it not cost you hardly any at all from the price that i already told you okay and then if if we can get you uh a 4.9 rate with ford credit 72 months with your 13 000 down uh wait a second i don't think you should put the whole 13. what's going on what is the payment at 13 down and your trade-in your payments are 379 a month look right here at this finance charge so your total finance charge for six years right it's 3 700 okay now let me show you i'm going to change it to 18 and watch this number that's your finance charge fifteen thousand four hundred and forty four dollars holy yeah see you later yeah i know i am learning the other dealership wanted me to pay per month for the older truck 365. yeah and the price it i mean if that's the monthly payment that's way better the trick is i don't want to see you take your whole savings and put it into the truck that's your whole savings i assume right okay is that everything no not i mean not everything but the thing is is that this also goes into uh like a graduation kind of gift so my parents are helping me out with it it's not just all up to me here's the thing well how much are they helping you at maybe you just throw what they're giving you and you keep your own money what's his payments he wants his payments down yeah but i don't because i'll be taking my payments every month along with my rent and like you know groceries gas all that type of stuff so like i need it to be as low as i can you know but i get what you're saying with the with the couch now i'm gonna do this i'm gonna tell you so it's 379 with 13 000 down so i'm gonna put 12 thousand down and it goes up to three ninety five that you see it changes at sixteen dollars that's sixteen bucks it goes it goes up sixteen dollars for every thousand that you take out okay so i can do i can figure with anything you want interest goes up to 3 900 from 3 700. 37.50 right so i can do it with 10 000 down but with the college rebate or the college program whatever you're calling it yeah that's at 4.9 percent he's not even going to do any better if his parents do sign no no that's that's the same rate so you don't have to have your parent's son because you're getting so it would not go down anymore if i got co-signed no it probably wouldn't through ford credit so right now there's a thousand dollars if you finance with four credit okay if you take out that thousand dollars and go on to another outside bank and you got a co-signer it might go down half a point yeah that ain't worth it no not for the losing a thousand bucks because a thousand dollars is your finance it'll last right and it pays that interest okay so so see you're getting uh you get established with ford credit i'm telling you you get established with ford credit you can go buy just about anything yeah the thing is never miss a payment never be late no i won't matter of fact the smartest thing you can do is make a couple payments ahead does that help your credit if you push the faster you pay it off sure okay but you can always make if you if you put that 13 i'm just using the 13 000 and your payments are 379 and you make payments to 400 a month every month right you're going to pay it off probably six seven eight months faster yeah just paying an extra 15 16 bucks a month so the payment as of now as it sits if we were to do with cash down and and then like the payment after that you said it's 370. 379. 379. and that's for a brand new new body style v8 i mean v8 lock and rear axle is that two wheel drive four wheels two wheel drive all right yeah that's okay though yeah you don't live in lubbock anymore exactly this is a city trip that's right yeah dallas and you can customize it at the shop right yeah i was telling him why you were going i can i got access to every vendor out there and i'll get it you know and then i'll charge you half yeah i just want bigger tires you know whatever hopefully he takes care of you you got 20s on there so if you like just bigger uh just bigger tires yeah yeah yeah yeah whatever you need for that yeah so what's up so cool hold that truck for a couple hours let him talk to uh the people he's got to talk to all right you know and uh what have you i'm gonna i'm gonna do all this i'm gonna print you and win this sticker that way you have it all all the information you need to talk to whoever you need to talk to give me that little math on that piece of paper there i'm gonna write it all down i'm gonna do something better yeah do that and you can help me i think you're fine i just personally would take a little bit higher payment and keep five maybe half of that thirteen thousand so that you got money for a rainy day uh it's sitting in the bank you never know man your tv falls off the wall you know somebody breaks their arm whatever yeah you know it's good to have a little cushion you know now if the 13 000 doesn't matter and you have some cushion i guess you could throw it at it it's less interesting you're paying right you know but i i always like to play with other people's money you know somebody loaned me money i'll take it if you like playing with people's money can i uh can i play with your money yeah help me out at 18 i'll learn all day as much as you want all right as much as you want okay yeah i'll i'll talk to them i'll call them hold that thing for the rest of the day trey he'll make a quick suit all right yeah yeah definitely you got it all right hey pleasure hey thank you so much all right thank him he brought you in here yeah i know for sure but thank you all right i'm taking the time out you bet take care and i'll hold this for you awesome all right all right see you guys i am thanking you you just got a brand new truck for the same price that you're gonna pay for a two-year-old and a v8 so there you go yeah no i really appreciate it thank you all right well uncle daddy richard's done all he can do you're gonna have to go talk to mommy now yeah well i thought you were gonna buy the truck for me i ain't buying that truck for anybody i got it sure dodge trx man what are you talking about so there you go uh we're getting you a brand new truck new body style same and killer interest rate without your parents having a co-sign yeah that's perfect so i'm not exactly a uh financial advisor but pay attention kids uncle richie knows what he's doing thank you by the way yeah i'll see you at the shop yeah you do whatever man i'm going to get a taco or something what's up guys oh man i got the truck guys look at that i already put my keychain on there too for real with the help of richard and trey like this deal would not never have happened and i got the truck that we drove in so brand new six miles on it just absolutely insane yeah dude look at this though it's brand new just so nice damn man i know you stoked for a new truck i was so stoked this thing richard did call me while i was there i said are you gonna buy this truck or is trey gonna keep it he said i'm gonna buy it and i have a really good idea for it so we'll see what happens stay tuned for that yeah i was gonna say this is uh gonna be a a pretty crazy project i don't know what he's going to do with it but should be cool well let's get on back to the shop all right let's go you

Channel: Gas Monkey Garage & Richard Rawlings

Views: 1,796,482

Rating: 4.8552475 out of 5

Keywords: Richard Rawlings, Gas Monkey, Gas Monkey Garage, Fast N Loud, Fast N' Loud, Classic car, cars, car, classic, Rich Rawlings, garage, hot rod, Ford, hot rods, fast n loud, Ass monkey, grease monkey, grease monkey garage, deals, wheels and deals, buy, selling a car, buying a car, buying cars

Id: t0XZaqfJPTg

Length: 26min 33sec (1593 seconds)

Published: Wed May 12 2021