Don't get BURNED by Car Dealer DEPOSIT GAME 2022 Auto Finance advice Kevin Hunter The Homework Guy

don't fall for the car dealer deposit game hello i'm kevin hunter the homework guy here with the amazing elizabeth with the amazing long hair now before we get into today's video i want to comment on a few of you who have commented because you've noticed that i'm still on oxygen and you've expressed concerns about my health well first of all i appreciate that and appreciate all the love and prayers that you've expressed in the comment sections on our video um i am very dedicated to my recovery and uh i am doing a lot better than when i first came home i came home on four liters of oxygen and i am now down to two liters so getting closer to being off the oxygen but thanks again for all of you who have mentioned that and noticed that and commented on it yes and kevin's getting stronger every time i see him so great job kevin all right if you've been to a dealer to buy a car and you're not ready to buy that day you've heard this line many times folks i just need to get a deposit to show my boss that you're serious every car salesman regardless of any dealership they work for lives for that moment when you pull out a lot of cash or your checkbook or credit card and your driver's license to you the buyer you think the significance of paying a deposit is that you have an agreement to buy a certain vehicle at a certain price to the dealership it means something entirely different right paying a deposit means that you can't leave and start shopping elsewhere and they can now pressure you confuse you and start playing money games with you you'll notice that they don't ask you for fifty dollars or a hundred dollar deposit most dealers ask for five hundred a thousand or two thousand bucks do they actually think you're gonna pay a two thousand dollar deposit no but if they ask for a huge deposit you'll be embarrassed to offer just fifty dollars and then you won't be very committed yep they recognize that the more of your money they have in their hand the less likely you'll be to continue your car shopping at another dealership dealers have become very creative when referring to deposits as an initial investment and they talk about monthly payments as monthly investments when you go into finance they'll try to sell you more products to protect your investment as if buying a rapidly depreciating vehicle meets the definition of investment pay special attention here because not only should you not play the deposit game but this is not the time to start filling out applications and giving the salesperson your social security number and driver's license before buying the car here's what happens when you leave the dealership finance office will pull a short form credit report on you without your knowledge and begin to plan the profit they'll make on your deal based on your credit information after pulling your report the dealer finance officer fraudulently fills out a credit application in your name and sends it to multiple banks he doesn't do this to look for the best deal for you but rather to look for the best buy offer that benefits the dealership a bank that allows them to pack as much extra expense as possible into your car loan this should be illegal to run your credit without your knowledge but you have to be aware of the fact that simply by handing over your driver's license and social security number to many credit rating services they say you've shown the intent to buy and consent into this credit check sales people have many standard lines to use in situations like this like i need your driver's license and social security number for insurance purposes or they'll say i need to show your credit card to my boss to show him you are who you say you are all of this is just nonsense what should you do when you're pressured for this information say no until you have an approved offer for a clearly stated price in writing and signed by a manager don't ever give your social security number your driver's license a deposit or credit card information to any sales people or a manager at the dealership without a clearly written deal in place you don't give deposits of any sort until the dealership has agreed to sell you the vehicle at a clearly stated price and it's in writing and dealers don't handle it very well when you say no most rely upon the trickery of deposits and some dealers will say that they won't sell you the car if you don't do it their way the answer to this problem is very simple don't do it their way stick to your guns and leave if you must and when you leave make sure you share your bad experience online and tell your friends to stay away from that dealer too do you know what typically happens when you stand up for yourself at a dealership and say no well they genuinely back down and do it your way right customers with spine usually get their way deposits are designed to control you we've talked about control many times here on the homework guy channel and how you need to control the dealership if you're going to win for any of you who have paid a deposit without having everything in writing first you have been a victim of what happens next so when you get back to the dealer you find out that they've raised you they're raising you on your return visit because you didn't negotiate the price on your first stop and now they're holding your deposit from you and you are unlikely to leave you feel committed you're sitting at the salesman's desk while he goes off to fight for you at least that's what he implies the season veterans in the car business don't go to fight with anyone for you they just go down to the break room to have a coke and they don't talk to anyone returning with a smile on their face and with a lie that sounds something like this folks we're so close to having this done we're just pennies away you can just help me out a little bit i need 125.75 and the boss will go for it and you're inclined to do it because you believe you're just pennies away from closing the deal and here's a funny piece of irony car salesman will tell you that the customers who are the most happy are the ones who pay the most money and get hosed the worst by the dealership if you left the door open on your initial visit and the dealer is sniffing a high profit deal in the making they are much more inclined to bump you up in price when you return because dealer managers have come to believe that anyone dumb enough to leave the door open are also dumb enough to be bumped never be patient with attempts to bump you look the salesman square in the eye and say i'm leaving if the offer isn't honored and make the move to stand up like you're ready to walk out right many of you report that if you get up and walk the salesman will usually make a last-ditch effort to try to get you to negotiate further chasing you out the door and saying i'll try to get that car for the price you mentioned or i think i can get more money for you on your trade-in if they follow you out to make such an offer take the sales and buy the arm and go straight to the manager and say if this is the deal on the table i'll take it if i can't buy it for my price then i'll leave now i'll never come back and darken your doorway ever again and then do what you just said now are there some cases where deposit can be legitimately paid yes but you should never pay a deposit on a car when all the details have not been worked out you're leaving the door open to be played when you do and dealers have long since come to learn that the only people who leave this door open are not very smart with their money and don't understand how this all works and dealers love people who are not very smart with their money this is a huge price to pay for ignorance and car dealers recognize it immediately when they see it all right if you appreciate our video today consider giving us that great big thumbs up and please always remember to comment below on our videos and share them with family and friends comments really matter because they help boost our online visibility and lead others to great homework guy content the entire homework guy team is here to represent you the car buyer and that's what we love to do thanks everyone for coming back we'll see you on our next video you guys rock i'm kevin hunter the homework guy with the amazing elizabeth the homework gal with the amazing long hair we gotta go [Music] [Music] you

Channel: Kevin Hunter The Homework Guy

Views: 58,329

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, cash, car dealership scams, car dealer scams, car dealership negotiation, car negotiation, car dealership rip offs, car financing, dealership scams, car rip offs, car tips, scam, deposit, cash deposit, hold deposit, credit app, drivers license, credit application, social security number

Id: draxQnnPCIE

Length: 8min 10sec (490 seconds)

Published: Sun Feb 13 2022

Reddit Comments

[u/hitssquad]

I posted this here because people here are reporting getting burned on their dealer deposits: https://www.reddit.com/r/rav4prime/comments/sr0703

[u/piconutz]

So basically the tl;dr is to settle on the price and get it in writing ahead of time. Then pay the deposit and tell them that you’re not using them for financing. Also, get it in writing that the deposit is refundable.

Is that what people have had to do to successfully reserve a prime that still on the boat?

[u/don_chuwish]

Also, freeze your credit reports until you are ready to commit to financing.

[u/Suitable-Ad6185]

Does this still apply when there's a 4-6 month waiting list of people for R4P's (and we kind of have to put a deposit down to get on the waitlist?)