DO NOT BUY CARS at DEALERSHIPS without doing 6 THINGS FIRST - Auto Expert Kevin Hunter 2021

going car shopping we need to talk I've got some great prep work for you to do before visiting a car dealer hi I'm Kevin hunter I spent several years in the car business and before I start with my tips I want to share a crazy story that illustrates why everything I'm sharing today is so important for you to know in just the last couple of days on Facebook a friend of mine who is a professional car trainer posed a question to car salesman on his site the question read our great salesman born or made a Salesman currently working on a car lot responded with this I'm not concerned with the number of cars but the gross I made you didn't know gross equals profit he doesn't care about the number of people he helps he's focused on how much money he can take from each customer he faces this is the kind of guy you have to watch out for he hatches a plan to tear their heads off a term coined in the car business each time he finds another prospect now how did this question come up in the first place well here's the back story after leaving the car business years later I have more friends selling cars than I ever did when I worked on a car lot one of them includes a car trainer who travels around the country training sales staff at dealerships he was the one who posed the question art car salesman born or made he followed that up with asking which type of people and the career choices they make would be hard to convert into a successful car salesman suggestions poured in from real dealer employees and they tell you a ton about the car business here are a few restaurant waitstaff librarian nonprofit organizer social worker DMV employee accountant engineer and the one I really laughed about Dave Ramsey worshiper think about it what habits or qualities do these people have that would make them a bad car salesman well if you listen to what people are asking for and provide it if you're used to serving others if you're analytical and think too much and if you're too financially responsible you probably make a lousy car salesman now that says it all about the car business now here's the icing on the cake the car trainer commented that the Dave Ramsey worshiper may the absolute greatest challenge ever what does Dave Ramsey teach things like have an emergency cash fund save your money be debt-free invest wisely and a highly successful car trainer right now today in the car business believes this type of financial responsibility would be the ultimate challenge I hope you want to be the ultimate challenge because my goal here today is to make you a savvy car shopper and their greatest challenge ever now I know the story I've set you car dealers out there who like to troll me but you should know I look forward to receiving your thumbs down and reading your snarky remarks I consider it an honor that you'd like me to shut up let's roll if you're watching this video on the 6 things you need to do before setting foot on a car lot I'm starting with the assumption you already have a clue what type of vehicle you want to buy I also have a bonus at the end for those of you who appreciate some key details number one have some cash to work you might be thinking what cash in hand what about all those zero down deals come on you didn't start believing ads published by car dealers the very guys you don't trust and the very reason you're here watching this video these are the guys promoting zero down deals you should have noticed by now that banks never promote zero down car loans to their customers and you thought this deal was actually good for you did you really yeah the primary reason you're driving a car off the lot with a loan significantly fatter than the value of the car is you fell for the zero down deal and didn't put your own money in the car deal my advice for how much no less than twenty percent all the way up to one hundred percent cash if you don't put your own money in the car deal your host and you'll have to add on thousands of dollars of additional protections to save you from a financial catastrophe so if you can't even afford 20% bottom line you can't afford the car you think you want find something else or just wait but don't do zero cash down now I'm curious how many of you are thinking about a different car right now let me know in the comment section below number two know your budget and how to calculate your own car payment first the budget a big reason some people keep getting richer over time is that they share an interesting habit even when they made very little money they save ten to twenty percent of their income when thinking about what you can afford in a monthly car payment think about this if you have no cash to put down on a car that's telling you something about your budget it's already tapped out and now you're thinking that buying a rapidly depreciating asset like a car and having another payment will somehow improve your financial picture use your head think about a budget if you've been saving money all along you likely have room in your budget for a car payment if you're replacing the car payment and you're not saving money right now focus on less car and less payment you need to be in a position to where you're actually saving money now here's how you calculate a car payment it's complicated so don't try this on a calculator find a site like car payment calculator dotnet here's the information you need vehicle price downpayment rebate trade-in how much you owe on your trade-in the sales tax in the state you reside in the interest rate on the loan you'll be taking and the loan term this will give you a monthly payment never accept the dealer just telling you here's your monthly car payment you calculate it using the information I already shared in a website like car payment calculator net or bank rate.com these sites have the proper formulas when you don't come up with the same payment they do they are hiding something from you and believe it or not this happens far too often be ready to check the work of the finance officer before you sign that contract number three research fair market prices there's so much information about vehicles on the internet these days it's hard finding reliable sources but I'll share a few of my favorites all of which are sites that are used and recommended by people currently working the car business today car gurus great resource for used car prices type in the make model and your zip code and you'll find listings of cars all around you you can also find new car prices certified pre-owned cars and private party sellers if you're wondering if a certified pre-owned is worth it ask me in the comment section below also don't rule out private party sellers lots of great cars out there for sale by owner and they are cheaper true car is another great site it's useful for shopping both new and used car prices in your area and you can get an estimated value of your trade here too true car also publishes a lot of video they share on Facebook so go like the page and follow the informative stuff they publish cars calm is also good up to date prices for used cars in your area and you can list your own vehicle for sale on this site too I'd highly recommend you consider selling your own car because you'll definitely get a better price selling private party then you'll ever get from a car dealer just be smart about it Kelly Blue Book lots of great information on the book value of your car current used car prices reviews on the car you like and even a look at repairs and maintenance history this could be invaluable information dealers often argue what you find at Kelly but it's only because like na da Kelly publishes two versions of their own book values one for dealers one for customers they likely do this because if they gave you the actual numbers a dealer will offer for you trade you'd probably sell your car private party well there's a little bonus hint for you you should probably sell your car yourself number four finding a good car dealer this is very tricky think of it like swimming in water where there are many shark sightings a day the water may look clear when you chose to swim but the only way you know for sure you're safe is when you're not attacked not very reassuring finding a good car dealer is a bit like that even as an auto expert I can tell you I spent months vetting dealers in a large metro area i targeted 26 potential dealer candidates looking for good people I could send my friends to out of 26 dealers I found just three who would agreed to follow a fair and transparent sales process consistently for you statisticians out there that's less than 12 percent so let's discuss some options first there are a few sites you can go to visit to find car dealers and dealer rater is one of them it's based off actual reviews with a disclaimer I'll get back to that Yelp is another one and it has a disclaimer too and then there's referrals from friends and those have disclaimers too Wow why all the disclaimers there's something different about the car business when it comes to online reviews and direct referrals from friends first the overall disclaimer while good reviews are better than bad reviews they aren't necessarily an indication of an honest dealer a good referral from a friend is quite the same most car buyers don't actually know what a fair car deal looks like especially a deal that isn't packed with hidden fees and other costs that you didn't have to pay but they did even with great reviews if I reviewed a hundred of their car contracts I'd still find at least 85 that would be filled with fees products and other costs that the buyer didn't even know about now let's take a quick dive into few comparisons with dealer rater and Yelp - chevy dealers in louisville kentucky boast a four point eight and a four point nine star rating seems great right however the same two dealers are rated at two point five and one point five stars on Yelp these scores are very right why the big difference dealer rater is a paid subscription service in fact dealer rater will even set up and manage the profile for a dealer and refers to themselves as a success partner of the dealership does that sound like unbiased ratings to you well it's not bad reviews are often kept off the site when dealers enroll in their certified dealer program they delay posting bad reviews by emailing you the customer and trying to force interaction between you and the dealer if you don't accept this challenge they remove the review this tactic does a crafty job of making their dealer members look like all-stars with four point eight and four point nine ratings when they could well deserve a lousy one to two stars just like they got on Yelp Yelp disclaimer to be fair some dealers are victimized by trolls and while Yelp has a process to deal with that it's not perfect here's what I'd suggest look to see how many reviews they actually have if the negativity comes from a lot of different directions hitting various departments like sales parts service finance that's a very lousy dealer if it looks like one or two disgruntled people and you see a lot of other great reviews read the points the customers make honest complaints sound honest great reviews also sound sincere and they say things normal people say dishonest review is good or bad make mountains out of mole hills any savvy person can see the difference finally the direct referral disclaimer there's a good chance your friend was sold a bunch of stuff they didn't know about want or asked for very few people actually look at the car contracts in the sign much less after the fact if a friend says they had a great experience at a dealer get more information than just Fred's a great guy tell him I sent you once you've done a little homework write down five good questions you'd like to ask try calling the dealers you chose the good ones don't give you the runaround they don't try to control you or steer you off your interests to their own interests they don't force you into getting pre-approved or their finance office first and they answer your questions honestly rate their responses then schedule a visit to the dealer you feel best about and that brings us to number five set up an appointment there is so much wasted time in the car shopping process when you're ready to visit a dealer and drive the car you want you should contact either the internet manager or a BDC representative let them know you're ready to come in and you're looking for a member of the sales staff who knows how to listen and properly assist an informed car buyer have them verify that the car you want is there set an appointment to meet the salesperson they recommend and ask for his or her contact info call this person and confirm you made an appointment ask them what they know about the car you're looking at tell them you've set aside two hours for them which is more than enough time when someone has their act together and is not playing games number six have the right documents make sure you have your driver's license proof of insurance and consider that you might need things like bank statements pay stubs etc to prove income if you're trading in your old vehicle have your trade title and a lien release if it's paid off if you still owe money on it get the ten-day payoff amount before you visit your dealer and have it with you do all of this and you're prepared to get the deal done if everything lines up as promised a few quick bonus tips bonus number one if you plan to finance talk to your own bank or credit union first know what you qualify for before starting your car shopping bonus number two never consider extended term financing 36 is the best 48 months is good 60 is living on the edge anything more than that is financially stupid need a lower car payment swallow some pride and buy a cheaper car bonus number three be truthful people in the car business always say buyers are liars that's kind of ironic don't you think every year when Gallup polls Americans on the most and least trusted professions a car salesman a congressman and a lobbyist end up right on the bottom of the fish tank among the poop yep four Pinocchios I don't really blame you for trading lies with lies but I'm recommending that you do it different this time you see when you go prepared you're in charge tell them exactly what you want and then expect them to deliver on it speak nothing but the truth and expect it in return you should emphatically say I'm not here for any BS start lying to me and I leave be honest with me and we'll get just fine bottom line if you feel pressured or something doesn't quite smell right during your visit get up and go home and sleep on it a win-win deal never needs to be crammed down your throat a desperate dealer will want you to sign now before you wise up don't let that happen to you do you feel smarter as a car buyer hopefully if you took good notes and I really hope you did I just saved you a big headache and thousands of dollars on your next car deal return the favor would you let me know in the comments section below if you think I should continue publishing videos and sharing my car buying knowledge do you appreciate it let me know if you're new here don't forget to subscribe to the channel to get more great content just like this hit that notification bell and give us a like to thank us for all the money we saved you do your friends and family a favor too and share this video on social media and don't forget to share any car buying experiences in the comment section below I look for regular feedback to know how I can help you best I'm Kevin hunter until next time take care

Channel: Kevin Hunter The Homework Guy

Views: 400,056

Rating: 4.9455357 out of 5

Keywords: Car prices, Car prices set record highs, used car dealerships near me, car loan calculator, Auto sales, Used cars, Car, Cars, Car dealers, Automotive news, Car news, Automotive, Vehicle tax, Vehicle fees by state, Auto Shop, Car parts, Auto market, car dealer finance office, rebates for new cars, car loan scam, dealer rip offs, market watch out for this financing scam, what to do when a dealer lied to you, illegal things car dealers do, what to do if a dealership rips you off

Id: eDuQ39m7SsQ

Length: 15min 28sec (928 seconds)

Published: Mon Oct 14 2019