CASH CAR BUYERS CAN OUTSMART DEALERS USING THEIR OWN BUSINESS MODEL Part 1 of 2 The Homework Guy

how cash buyers can outsmart a car dealer using their own business model against them it's like a skilled card player's Bluff that wins the game and it can be used on both new and used cars hi I'm Kevin Hunter the homework guy here today with amazing Elizabeth the homework gal back in February of 2020 we published don't say I'm paying cash at a car dealer and then in June of the same year we publish a second edition of it and 8 million views later we knew we had a significant following among the cash car buying public yeah we backed that show up by introducing the amazing Elizabeth into the show here and since then Elizabeth you've acquired quite a fan base of your own here at thg yeah thanks for you cash buyers today we're sharing a strategy that you can use to turn the tables on the car dealer's business model and help you get a better car deal with less hassle for you too by the way because we know somebody will ask this strategy also applies to anyone having a pre-approval from their own bank or credit union so for you guys this works for you too so if you're financing and you've talked to your local credit union like we've advised listen up what Kevin is saying essentially is that any cash buyer or even those of you with a bank or credit union pre-approval will be able to go home with a smile on your face knowing you won and be amazed at how easy it was it's a wonderful thing to use a dealer's love of a willing customer who finances with them and use that appeal against them saving you a lot of money in the process so here's what we're going to do we are totally aware that many of you are in awe of the negotiating prowess of Miss Elizabeth here but many of you are also quietly admitting to yourself that you can't hold the Dealer's feet to the fire like she does so we've been scratching our heads to come up with a method that a lesser skilled negotiator can use to get a great car deal or at least the best available deal in the current market and I think we've got it there's not going to be the need to hold any feet to the fire in this strategy it's going to be more like time to play the game it doesn't mean you won't have to do any homework and it doesn't mean you won't have to give any pushback when the right time comes but this time to play the game as Liz describes it will be much easier for many of you who feel you lack the skill and the guts to buy a car like Elizabeth does let's start by quickly discussing a car dealer's business model and why we know the strategy will work for several years now cash car buyers were at a disadvantage because a dealer didn't want to sell you a car without financing it through themselves they haven't liked cash buyers for a long time and it's only gotten worse in the current car market so we decided we have to up our game too preferring a loan is totally true of any dealer who has their own finance office that's the key right there if they offer financing they want to use it oh yeah and they love it when you do so if you show interest in financing terms even if you'll ultimately pay for your vehicle entirely in cash or refinance it later you'll get much better treatment in the price negotiations phase and have an easier time getting rid of unwanted extras and fees in finance dealers love buyers who use their financing they work much harder for a financing car buyer than any other kind of buyer and this is the game you cash buyers out there are going to play why do dealers do this because they can fool a typical financing car buyer in the cost they hadn't planned on and it's something you'll have to be on the lookout for but with the help of some role play we're going to give you the exact words to say every step of the way so no worries if you go out car shopping with the plan to use this method just come on back and watch it again right before you go car shopping this is the one time when using the strategy that you'll openly answer the question how do you plan to pay yes that's right with this strategy you don't avoid the question or get defensive about it this is step one of time to play the game so when you're asked how do you plan to pay you'll respond by saying I'm interested in seeing what terms your finance office is able to offer you notice a subtle mood change with this seed planted your journey to the end of the car deal just got easier you won't be treated to a higher price because you said you have your own bank and you aren't getting whacked with a thousand dollar price increase because you're paying with cash instead you'll simply be treated with the price the price that depends on their financing there's no pricing penalty of any kind using the Dealer's financing options and you just kicked open the door to some pretty interesting and easy negotiations and the whole time you're smirking in the back of your mind because you showed interest in financing they are working hard to get the price where you want it because they believe there's a chance they'll get it all back when you sit down in the finance office yeah there's a little psychology going on here and it doesn't matter that it's not going to work out for them like they think it will sure as I've said think of it as a good card player's Bluff making the other party think you're going down the trail they want you to serves you quite nicely hello I am Mary Jo from the homework guy team don't Kevin and Elizabeth do a great job we are so proud of every show our team puts out carefully researched for accuracy and designed to help Hardware is just like you if you're new here don't forget to hit the Subscribe button below and ring the bell so you get notifications of upcoming shows thank you for listening and by the way if you haven't already noticed check out the light pattern on our ceiling pretty cool huh let's talk about when you're still sitting with the car salesman and they bring out the payment plan proposal because that's guaranteed to happen yes based on the price you've negotiated give some thought to where you'd like payments to be as if you are actually going to finance yeah so you can have a good discussion with them when they come back with a payment plan proposal showing some genuine interest in payments and not giving in immediately on their proposal can get you more price concessions at this point so be ready to negotiate we have car calculators on our website thehomeworkguy.com to help you out if you need them if you keep saying to them I really don't want to go over 60 months and I want my monthly payment below X dollars per month they may try saying well you can come up with more cash down but this back and forth on payments can often lead to a lower price for you at this point it's perfectly okay to fill out a credit application even if you are paying with cash later or plan to refinance their loan with your own Credit Union you just want your intentions to appear legitimate be aware that FICO combines the credit poll from your own bank or credit union with the dealer bank's poll as just one hard pull after you make your purchase so there's no harm done and if you're a cash buyer the minor effect on credit will be very short term so it's not really a big deal to play the game with these guys and think about the money you're saving on this purchase after you've completed a credit application this is when it gets real now you're in line to go to the finance office don't worry we've got some strategies for you to use there too we'll do a little role play from here for you to learn from Liz will be the customer when you sit down in finance if you're a cash buyer almost right away you want to say you might have noticed that I don't currently have a car loan on my credit yes I saw that I don't really like being in debt and I often pay my loan off a little early so before we write up this deal I'd just like to make sure that this loan doesn't have an early payoff penalty no we don't do that here but the bank likes it if you keep the loan for at least six months great pretty much car loans don't have an early payout penalty but it's worth asking the question there's just one reason the loan officer States a time frame they want you to keep the loan they are trying to avoid getting a charge back or claw back from the bank on their own commission there's no Bank policy or regulatory reason now you can't forget to keep your eye out for unwanted fees and Extras if the finance officer offers stuff you don't want just politely turn them down you might get some pushback but at this point they mostly are wanting your car loan will role play a little of that too again I'll be the finance officer Liz will be the customer uh Liz to protect your investment I'm offering you our most popular warranty program by carshield and for a few less dollars there's also endurance extended warranty I'm sorry I'm just not really a good fit for those I have a good relationship with my mechanic and I chose this vehicle in part because it's very reliable okay so you're gonna pass on the extended warranty yes the vehicle also comes with an appearance package and it's something we put on all of our cars I'd prefer not to spend money on that it's just a commuter car for me I don't need frails the cheaper the better honestly I understand okay one last thing you aren't charging me a bunch of fees are you I've been recently reading about the fees the FTC describes as junk fees in their new regulations and I was kind of hoping you weren't that kind of dealer no we don't make a practice of charging lots of fees like other dealers do okay good well let's get this done with that the finance officer goes about drawing up the CAR contract and soon enough you're on your way did you notice that Liz took a softer approach with the fees instead of threatening an FTC complaint she simply said she had been reading the regulations because you are going with their loan even if it's just temporary they are inclined to be more compliant because they don't know it's temporary yeah they are inclined to be much more compliant to let you walk without fees and extras it's less fight for you to have to Wade through of course it's always possible that you'll have no choice but to threaten an FTC complaint to get the fees waived but only do that if you have no choice it's less likely with this approach your car deal is finally drawn up and your finance officer presents it to you for your signature read it carefully and if they fudge some things call them out like this oh no there's a warranty plan in here anyway I didn't want that oh I'm sorry our computer system just defaults to adding it let's get that cleaned up and then I'd like you to make sure there aren't any more errors I'd hate to have to walk out on this after all the time we put into getting it right you know she says I'd hate to have to walk out that's kind of like a little Veiled Threat no no worries uh I'll be careful to say always always always read what you're assigning Finance officers are famous for their errors all of which benefit the dealer every single time funny how that works huh Kevin right now that you've signed the contract you're ready to take delivery on your car and head down the road with a big smile on your face and why because you just negotiated a great car deal and you got out of there without all kinds of extra products and unwanted fees and now you patiently wait for your payment book to arrive in the mail that's right it generally takes about a week or so to get your payment book but once it's in your hand you can write one check to pay off the balance entirely or you can immediately make an appointment with your own bank or credit union and go refinance your car with the lender of your choice boom you just got your cash car deal and you finance with your own lender without any of the usual headaches remember why you should play this game you did all of this to get better treatment up front a better price with less hassles it saved you a ton of headaches during the buying process made for simpler negotiations and you got a better price on your car all while getting your way at the end isn't that ironic you see there are no closing costs for car loans like there are for mortgages so there's no extra expense to do this who cares if you had their lender a week ago and now you got your own Banker involved who cares if you had a temporary loan with the dealer and had to pay it off after the fact does it matter no and you had a better deal while getting exactly what you wanted in the end there's nothing the dealer can do to stop you at this point you haven't broken any rules or violated any laws you just played the game like a good old-fashioned card shark I hope you all enjoyed this video as much as we enjoyed making it play the game and use the Dealer's business model against them remember if you want to make sure you don't miss our future shows you need to subscribe and hit the notification Bell you can also connect with us on Facebook if you want more in-depth information please visit our website thehomeworkguide.com a lot of frequently asked questions can be answered on our website when you get there scroll down the main page to find tons of free downloads designed to help you get through the process of buying a car without getting ripped off lastly if we've helped you save time and money finding a car consider leaving a tip to help us help the next person you'll see a super thanks button just below the video and there are links for making a tip in the description box you can easily find them by clicking on the read more button seen below thanks everyone all right if you're new here to the homework Guide channel as Mary Jo said and Elizabeth just reminded you don't forget to subscribe and ring that Bell so you get the notifications join our fast growing group of subscribers and become a part of our family thanks everyone for coming back and to all of our faithful subscribers out there you guys rock God bless you all I'm Kevin Hunter the Homer guy signing off with amazing Elizabeth the homework gal the homework guy team is serving truth and Justice in the car business we gotta go thank you

Channel: Kevin Hunter The Homework Guy

Views: 192,411

Keywords: Car prices, news, car loan calculator, Auto sales, Used cars, Car, Cars, Car dealers, Automotive news, Car news, Car news USA, Automotive, How to buy cars from a Dealership, Car Buying Tips, What to look for when buying a car, cash, car dealership negotiation, car negotiation, car dealership rip offs, whiteboard finance, car financing, dealership scams, used cars for sale, car prices, car market, chip shortage, used car prices, car sales, used cars

Id: UTi8x7L9S3I

Length: 12min 51sec (771 seconds)

Published: Thu Mar 16 2023