Essential Car Buying TIPS, ADVICE- COMPILATION- How to Buy Car & Loan The Homework Guy, Kevin Hunter

the homework guys map and the road to successful car purchases hi i'm kevin hunter the homer guy author of is that the best you can do here today with the amazing elizabeth budget and vehicle selection before you do anything you need to decide if you'll pay cash if you'll finance or if you'll lease knowing your car budget is easy when paying cash just don't forget about tax title and registration fees we recommend that car buyers go the cash route but if you can't do that today and financing is your only option there's no doubt that making good car buying decisions right now and not getting yourself in too deep well buying what you can actually afford and choosing the shortest loan terms all of those actions right now will help you become a cash buyer much faster with financing and leasing start your budget process with how much you can pay per month this is not a step you should be making while sitting at the dealership that's way too late i'm talking about while you're still at home before you even start car shopping knowing how much you can afford per month will help you determine a car price to stay under be sure to also consider all the costs of ownership fuel costs insurance premiums which are often overlooked annual registration fees maintenance and repairs and resale value or depreciation which is why smart car buyers often buy vehicles that are two years old or older put the total of all those costs into a spreadsheet and figure out what you can afford on a 36 to 48 month loan this gives you a car price to shoot for and price not payment will become your determining factor a big caution here and a real big caution when you go to the dealership later on don't let your monthly payment planning become the focus when negotiating price when you become identified as a payment shopper by a car dealership you're like a fish out of water and you're in big trouble loan payment and term it used to be that everyone recommended something known as 20-4-10 make a 20 down payment take a four-year loan spend no more than 10 percent of your budget on all vehicle expenses including maintenance and insurance how many of you are doing that with zero percent interest financing car buyers often forget about the down payment they don't think much about the loan term which is why many get sucked into a 72 or 84 month zero percent loan and then they ignore the cost of ownership which includes expenses maintenance and insurance instead car buyers who take the 0 financing deals commit one of the biggest errors in car buying which is focusing on the monthly payment down is always a big deal don't skimp on the down payment just because you're getting zero percent dealers will commonly give you the option to put nothing down at signing but don't fall for that we recommend you put 20 percent down or more or as close as you can get to that figure to offset depreciation you might say you can't manage that much but by saying so you're telling us that you can't afford the car you're trying to buy you might be thinking you can just get gap insurance or new car replacement insurance from your insurance company or the dealer but that's the thinking of a fool you get to pay for a thousand dollar policy adding even more expense to a car you can afford which is a lot like adding insult to injury elizabeth let's discuss why having good credit is so important first if you need financing you need to get an approval for car loan right but that's just a baby step yes it is when you have good credit the car costs you a lot less over the life of the loan right and with less than good credit you can end up paying for your car twice and a lot of people do 150 percent or 200 of the value of the car it's ridiculous and high interest rates are another reason that a lot of people are upside down on their car loans when they try to trade it in and too much of their payments every month is going into that interest exactly when you select your vehicle make a list of wants and needs wants are nice to haves while needs are have to haves there's a huge difference the more flexible that you are on each thing you consider a want or need the more likely it is that you'll find a vehicle that will fit into your budget if you're deciding where to shop consider looking at dealer reviews on yelp even if they have just the car you want at the right price the reputation the dealership might have for stealing from their customers might already be in plain view on review sites like yelp warning don't use dealer raider it's a bought and paid for subscription site for dealers 2.5 stars on yelp are getting 4.8 stars on dealer raider that happens routinely now that you have a budget a price and a potential dealer or two to visit some of you may or may not be aware of the rapid depreciation of a car so let's discuss that for a moment with our investment plan so it makes total sense if you buy a brand new car here's something you ought to know in year one on average you lost 25 percent of your original investment value it could be as much as 30 if you're a very lousy car shopper right in year two you're out another eighteen percent year three is around a fourteen percent loss you're four still another fourteen percent loss and year five you only lost 12 such good news congratulations you've now accumulated a total loss of 60 on average well there's a hidden tip right here remember i said that learning opportunity so let's point it out have any of you wondered why we suggest that you shop for cars around three to five years old we also recommend that you shop for cars that are five to seven year old and expand your horizon to private party sellers yes we said it dealers aren't really the best places to buy used cars oh especially not now no definitely not now now the layout you see here on the screen the years of steady losses this is what your finance man keeps referring to as an investment we have never really been big fans of cpo programs because it gives the car buyer the impression that this is a better used car for them to buy however that's not really the case if you really want to know why dealers push a cpo car it's for two reasons number one to boost profits to make more money in the back end after you get in the finance office they get you with the pre-sold extended warranty and then they nail you with a bunch of other products and services and fees they keep it on at the moment you agree that a cpo is a good way to go and number two they want to get vehicles back into their service department that are not necessarily the vehicles that would fall under the umbrella of their franchise new brands they are producing another revenue stream the ongoing maintenance of your car bottom line it's all about the profits not necessarily about putting you in a higher quality car 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 in 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 truecar 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 truecar also publishes a lot of video they share on facebook so go like the page and follow the informative stuff they publish cars.com 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 than 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 nada 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 your trade you'd probably sell your car a private party well there's a little bonus hint for you you should probably sell your car yourself so the question is regardless of what a dealer has a vehicle listed at what should you pay for any used car on the market let's start with this to have a clue what the right price to pay is no matter who you're buying it from and i'm talking about it could be your neighbor or your local dealer you have to understand that every car on the road has a wholesale value it's known in the business as acv or actual cash value if you don't know the acv of the vehicle you're looking at you have no idea what you should pay for it you're guessing no matter who you are we've shown you in the past how to use kelly blue book and other resources to determine the wholesale value the video is on this channel it instructs you how to look up the trade value find good condition and look at the price at the low end of that range well that number plus a hundred bucks that's going to be in the ballpark of the wholesale value of the car ah within a few hundred bucks today i want to show you not only how good that video was but an added brilliant shortcut to getting a cash offer on any vehicle sitting on the market i've done it many times take down the vin number the year of the vehicle its make model color and the basic trim level information you also need the miles let me show you how you can get a cash offer from multiple dealers on the car you're looking at right now on a dealer lot anywhere let's say i'm looking at this 2017 toyota tacoma sitting on a lot near tacoma washington it's a real truck sitting on south tacoma honda's lot right now i'm going to kelly blue book and click the button for my car's value next you'll see instant cash offer click the button for get offer and trade-in value put in the basic details you collected from the vehicle enter everything in after putting in all the details kelly shows me what the trade values are and just a few minutes later i get a cash offer for the vehicle i'm looking at a dealer's willing to pay 25 215 bucks for the truck i'm looking at on another dealer's lot what should i buy this truck for dealer or private party seller well from a dealer i'd offered twenty seven thousand dollars from a private party seller twenty six thousand five hundred math is pretty simple i took the cash offer of twenty five thousand two fifteen and added a profit of twelve hundred fifty dollars to it for the dealer i added an additional five hundred dollars to cover detailing oil change and other lot expenses commonly referred to as lot pack by dealers i added five percent profit and just rounded the numbers up on this trip you're going to see how many details a mechanic covers that most of you would never know how to do or lack the tools to do and that's why you're wasting big bucks on an extended warranty meet ruben beiman owner of longview auto and tire picture the dash of the car running so i get a picture of any warning lights on and the mileage and we'll go out and drive it so we're gonna go out and test ride this guy listen for wheel bearing noises suspension rattles creeks groans anything that might um you might be able to hear or notice on a test drive great mechanics make a living driving and working on cars it always makes sense for them to take it for a test drive and then go through all the functions in the vehicle reuben's going to take this opportunity to test all the windows the air conditioning the heat the radio the horn everything inside the vehicle will get a functional test during this test drive one of the things he'll do would be to accelerate hard to see how the vehicle shifts and then also to brake hard and check if there's any distortion or things going on with the brakes getting into an accident without coverage is a nightmare that you don't want to have here are a few tips on how to reduce your auto insurance premiums number one get multiple quotes and you can do it online within minutes i just wanted to mention that getting quotes from multiple insurance companies just makes a lot of sense for yours like even in my own household we stuck with the same carrier and maybe you're in that same situation now however i was very surprised by how much insurance premiums can vary at any given time the same policy for the same driver uh from different carries can vary by as much as several hundred dollars a month number two here is consider the car you drive now i mentioned that the honda crv is one of the cheapest cars to drive the type of car that you choose can have a significant effect on your insurance premiums in one study on the least and most expensive cars to ensure annual rates ranged from eleven hundred twelve dollars for a honda odyssey compared to thirty eight hundred dollars for a mercedes s65 amg convertible on the same exact driver so the type of car makes a big difference and types of cars if you you do searches on the cheapest cars to ensure in your area and here as an example is the subaru outback one of the jeeps was also high on the list and then of course a honda is there a best time to buy a car the simple answer is yes as in when you need one generally speaking the later in the year the better the deals get first end of the model year the next year's models are coming to the lots end of the calendar year as in october and november and december is even better end of the month the closer to the end of the month the better end of the car's design cycle a redesign and new features are coming and they want the old stuff gone end of the car's life cycle the vehicle is done manufacturer pulled it from the lineup if these cars are still on the lot the dealer wants to be done with them some days of the week that are better than others monday or early in the week you get better service more attention and a sales staff that isn't too bogged down with others dealers like to see cars move on the early days in the week let's take a look at a few scenarios that could point to zero percent financing simply not being a good deal at all let's take a look at a low end vehicle a twenty thousand dollar car with a zero percent financing offer for 48 months could be paid off in four years without added products and fees the monthly payment is 416 at a local bank or credit union you could easily get a car loan interest rate around the national average of 3.45 percent over four years that would be a four hundred forty seven dollar monthly payment just twenty nine dollars a month more however here's where it gets interesting by using a traditional car loan instead of zero percent financing you'll be able to use the new car rebates to your advantage something you typically can't do with zero percent financing if this car has a twenty five hundred dollar cashback rebate the amount you're financing would drop to seventeen thousand five hundred using the three point 3.45 interest rate from your credit union your monthly payment would be 391 a month 25 dollars a month less per month and the amount paid for the car over the life of the loan would be 18 760. simple math shows you'd save more than twelve hundred dollars by taking the credit union loan with the three point four five percent interest instead of zero percent financing make sense bottom line before you lock yourself into zero percent financing at the dealership compare car loan offers from banks and private lenders to see if they offer terms that when combined with rebates are better suited to you if you do the math just as we did you might find that zero percent financing isn't a great deal after all 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 run around they don't try to control you or steal you off your interest to their own interests they don't force you into getting pre-approved with 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 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 10 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 don't give out your actual permanent contact information i'm talking about your phone number and email if you do you'll be setting yourself up for harassment calls and emails it's easy to get around this you can either get a google voice number or a temporary number through any of the services that are out there and you can create a new email to use for your car shopping experience it will be a great place to collect your information without unnecessary harassment in your everyday life this is also pretty cool because when you decide to buy again a few years from now down the road all of your previous homework is all there for you to look at helping you to repeat good decisions and avoid repeating mistakes you made the other thing to be aware of is that some dealers have been compromised in terms of security do you want unknown people getting your permanent contact information i don't think so let's move on to the first meeting with a customer otherwise known as the meet and greet not everyone is aware of the fact that a car salesman is trained to get contact information from every person they are talking to and enter them into a database the salesman also has to check in with the manager's desk during your visit which is an undisclosed introduction to a team of closers this to or turnover increases the odds of closing you on a car deal today they want to know about closing questions the salesman is supposed to be asking and what your hot buttons are don't forget about the hot buttons these are the things that distract you and make you think about other things instead of price fees big fat payments and long loan terms that wipe you out sales training emphasizes the need to create and sustain interest whatever you say is important to you watch it get attached to everything i've had a salesman tell me so many times what was important to me when i was on a car lot that i finally had to stop him and say listen buddy you have no idea what's really important to me that was really clear that he didn't he was a little surprised and looked a bit shocked he didn't like me killing his buzz right in the middle of building momentum bottom line they're trained to keep you focused on how all of your wants and needs are being met at this very moment by this car and this salesman don't say you're open to any number of options like color trim levels or vehicle type if you don't already have a color pick one and stick with it even if it's not really important to you sales people are looking for hot buttons so let them focus on a perceived hot button that won't motivate you to do something foolish and allows you to go home and think about the things they presented today as you're getting up to go you can say well it's too bad it isn't blue and this gets you back home looking at the car deal without a salesman breathing down your neck so let's get to the question about a pesky salesman who won't stop asking you how are you going to pay and you don't want to tell them that you're paying cash this is actually one of your favorite questions is my favorite it's like the mic drop yes um okay so you never mention you're paying cash until the very end and if they pester me about how i plan to pay i just have a simple response i say look i never talk about payment options or financial history out in the open i want to be in an office where it's private and but even before that is the car the price that i'm willing to pay so if it's not the price i'm willing to pay i'm not buying a car you don't need to know my financial information so there's no reason for you to talk payment considerations when you don't even know what the vehicle is yet that you gotta get yep okay that's a solid point that any car buyer has to uh remember so imagine walking around in any kind of store shopping for anything and somebody walks up to you and says how do you plan to pay it's completely an unnatural question that only people only those in the car business ask and they're just doing it to try to set you up for the finance office so let me ask you this what if they don't take a hint and they keep bugging you about payment what are you going to pay i'll just say it again more firmly i've already told you that if you don't have the vehicle i want at a price i'm willing to pay talking about payment is pointless and what if they keep asking you know through the conversation it comes up again well i i'm still respectful but they can see i'm getting a little irritated um because i've communicated clearly and at this point i say your dealership is required by law to respect my rights to data privacy so if you keep asking me financial questions out here on the showroom floor that's not appropriate and are you attempting to violate my data privacy rights that pretty much kills it right there it's kind of like a like a lawyer question there's a bad trend going on in the car business with trade-ins currently around 44 of new car sales involve a trade with negative equity that is mind-boggling but it's something most people are completely unaware of because being upside down in your car doesn't necessarily cause problems while you own the car however when it comes to trading it in you put yourself at risk financially if you're getting a zero percent financing deal many car buyers are likely to just roll that negative equity into the new loan and you should know what that means you're upside down immediately in the new car and you'll be upside down for a long time to come sorry to offend some of you but that's just stupid paying the previous loan off may not be what you want to do but you'll be in a much better position if you pay off the remainder of the previous loan seriously don't pretend you're the government who can just keep pushing a bad debt down the road it never gets better if you're trading have you considered just selling your current car private party it will net you the most money and help you cancel most or all of that negative equity i just mentioned if you're still going to exercise poor judgment and trade in a car with negative equity well look it up in the kbb book values of your trade most cars are in good condition not great or excellent use the homework guy formula to get the target trade in value to negotiate for low trade value good condition plus a hundred dollars some of you would do better or worse but if you negotiate your trade as an entirely separate transaction from the new car well wait them out just like you did on the price of the new car and you'll have a much better chance of getting top dollar on your trade here's something you're not likely to hear from a car dealer even if you're getting a zero percent offer from an automaker you can and should negotiate the price of the car of course you'll have to invest some time haggling back and forth but the money you save will make it worthwhile in the long run but it's still worth it even if it takes two hours to negotiate the price down two thousand dollars don't let that frustrate you after all when was the last time you made a thousand dollars an hour before you ever go to the dealer as in all cases you should have done your homework on how much you should pay for the vehicle we've done a video on this channel titled how much do dealers pay for new cars to help you nail down their costs so i won't get lost in the weeds on that now just go check out the video oftentimes dealers will inflate the price of a vehicle to make up for the lost income on zero percent interest it's also more likely that incentives and rebates will be forfeited in order for you to accept zero percent financing this can make it more difficult to negotiate a lower price but a reputable dealer will allow you to negotiate the best possible deal before the zero percent watch the bottom line and don't leave money on the table so what's your goal in finance first just get the junk off the contract i line it all out i tell them to fix it then i ask for the tax title license fees to register the vehicle to me and i want that information right away and they can have it just in minutes it's all right in their system right finance officers like to fudge on these like the taxes and state fees by estimating them have you had that experience oh all the time what i'll do is if i have a vehicle i'm looking at um specifically i'll call the dmv office before i visit the dealership i know exactly what the state fees are within you know a few dollars and now i want the finance officer to give me that exact information i don't accept estimates and it's it's easy to tell the difference because an actual you know fee from the state has dollars and cents dollars and cents every time yep and i look them right in the eye and say this is my out the door price right they love it when customers say out the door don't they right when you know the lingo three rules about car negotiations number one never say you plan to pay cash for your car until after you negotiated every aspect of your car deal to get the best price in the car you want you must let the dealer think that you might finance you can get more details on this from our video don't say i'm paying cash at car dealerships 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 the contract if you're at a dealership you have to be sitting in finance when you do this don't worry we're going to show you with a role play exactly how to do that number three the only legitimate fees that you must pay on a car purchase are state taxes title and license fees that's it any other fee the dealer claims they need to collect is just a profit line booster for their bottom line and it is a fake fee all right every single day new copies of car contracts arrive in our inbox all asking for help on how to figure out what they're signing up for one of the things you're going to notice on these car contracts is that they're all different different formats different wording everything different for everyone who thought there was something uniform about what car dealers do the answer is nope not really there are somewhere in the ballpark of 140 000 business entities which sell new or used cars and every one of them seems to have invented their own paperwork perhaps this is why car buyers are so easily confused today i hope to clear up some of the confusion by walking you through several different contract layouts and telling you what i would be pulling out of each car deal let's roll all right this first car contract is a 2018 audi down here documentation fee 7.99 that needs to be fixed a tag registration fee says estimate 549 i never like to see estimate in this particular category because i want them to give me the exact number there's been plenty of times where the estimate is actually double what the actual tag and registration fees are so make sure you check that out and then right up here above true car market average just disregard that there's a long story behind true car but don't put a ton of value into what they give you numbers wise so on this particular car contract 799 minus 75 because that's what i would make the dock fee 724 dollars saved this vehicle is a 2020 hyundai santa fe a lot of stuff going on here 4.99 for a window tint i'm not a big fan of this to begin with but you might like to pay this 4.99 so i'm going to skip that for now documentary fee 4.99 again it's too high the tire battery fee five dollars a lot of dealers would do this nickel and dime fee type stuff there's postage down here four dollars as well you know what i would say to this dealer is i spent ten dollars in gas coming here so i have a gas fee that i'm charging you for being here and you know just all these ridiculous things that they put in there anyhow documentary fee 4.99 needs to be adjusted to 75 dollars 424 dollars saved and you can elect to do what you want with these other nickel and dime fees they're adding in here this is a car contract for a 2020 toyota tacoma if you look here there's gap insurance for a thousand fifty dollars i wouldn't buy that documentary fee of a hundred fifty dollars i'd adjust that to seventy five so a total of eleven hundred twenty five dollars saved i wanna point something out it says cash down payment zero dollars come on you guys and then up here where it says the payment terms 60 months 72 84 months this is a dealer that is pushing long-term financing on their customer i want to start seeing some 36 and 48-month terms here instead of these car mortgages this is a 2016 mazda cx-5 you have 799 cpo i would pass on that then there's a estimated taxable fees of 132.95 i'd take those out as well and a documentary fee of 9.99 i would adjust that to 924 and only pay 75 for that dog fee 1855.95 saved on this one and again i want to point out they're pushing 60 72 and 75 month loan terms come on you guys get your act together let's start seeing some 36 and 48s on these here's a 2017 volkswagen golf down in the taxable fees estimated 28 dollars and 50 cents and then a doc fee of 6.99 i would correct that to 75 bucks 652.50 saved on this one i want to point something out here and i give major kudos to this car buyer the vehicle they're trading in see the seventeen thousand three sixty one seventy five well the trade payoff is eight thousand five hundred bucks here's the guy with nearly ten thousand dollars positive trade equity in the vehicle he's trading in you did a proper deal on the vehicle before that's how you get it done you guys here we've got a 2016 ford f-150 dealer fee 795 dollars that's the same thing as a doc fee they just left doc out of the title their electronic filing fee this is just another fancy name for another dealer dog fee of 167.50 then the license fee whenever you see a rounded number like this 400 it's very rare that the actual state charged fees will be an even number so always ask them to do the homework and get the exact number as i mentioned before sometimes this number could be 215 dollars well i don't want to see a round number there i want to see the exact number i'm not giving them more money than they deserve and then there's this nitro 49.95 so the breakdown on this one 7.95 i would take 75 bucks out of that 167.50 wouldn't pay that at all 49.95 wouldn't pay that either 937 dollars and 45 cents saved on this contract here's a 2020 toyota tacoma look over here to the right they've got perma-plate this is generally a paint coating 3.95 i wouldn't put that on the car taxable fees estimated 107.50 i'm not paying that 8.99 a dealer dog fee again here outrageous dealer dog fee i'd only pay 75 dollars for that and then again non-tax fees 400 not likely that it's rounded so i would make them get the exact numbers so i'm not paying more than i need to for our lovely government fees so here we got the totals 395 107.50 8.99 i'd give them the 75 bucks so there's 1326.50 saved i also give them a little extra credit here for actually showing terms of 48 months on this car deal so kudos to the dealer on this one here's the 2016 bmw there's actually not much extra in this one but dealer business license tax knock it off you guys 138 dollars and 85 cents i wouldn't pay the dealers business license tax what a joke 579 dollars in processing fee i'd reduce that to 75 bucks so on this one 85 642.85 is what i would save i apologize for the fuzzy copy on this one not sure what vehicle type this is but this is the way some of the contract reviews come into us age property tax 150 yeah i'm not paying your property tax mr dealership then there's 3.99 for the dealer documentary service fee it says there's a filing fee of 66 an emission fee of 75 bucks yep not paying any of those i'll give them 75 bucks for a document fee six hundred and fifteen dollars saved now let me point out something down here at the bottom there's a two hundred dollar cash down payment let me explain something you guys you're not buying a refrigerator so two hundred dollars uh cash down payment here come on don't turn this into a joke pull a couple thousand dollars out of your pocket now we're talking here we have a 2020 infiniti a tire disposal fee of 12.50 not going to pay that 775 for a dealer dog fee again should only be 75 dollars so on this particular contract 712 dollars and 50 cents saved here's the 2020 hyundai palisade they've got 325 dollars for a dealer handling fee i would reduce that to 75 bucks so 250 dollars saved i also want to point out here the payoff on the trade that they turned in zero so check that out eighty two hundred dollars they got for the trade and nothing owed on it smart car buyer right here we cropped enough out of this one that you don't see the vehicle type here but here's a documentary service fee of 169.27 they're trying to be cute here with this 27 cents that's hilarious optional er fee yeah i don't ever pay any optional fees uh so no thanks on that 25 bucks there and then gap coverage down below 680 dollars believe it or not that's actually starting to look like a cheap gap policy compared to what some dealers charge but i wouldn't be interested in the gap either i'd give them 75 dollars for a dock fee and 7.99 27. saved on this one 1500 is the cash down payment this customer is paying on here and i want you to notice that the total was 14 almost 15 000 so this is 10 percent down um double that number 3 000 and now we're talking here's a 2019 dodge ram down here in the bottom dealer handling fee 599. no thanks i'll give you 75 bucks for that 524 dollars saved and again they're quoting truecar don't put a lot of stock in that data that's up there you'll see a presentation coming up here soon on this channel on truecar and you'll understand why don't put a lot of stock in their numbers this is a 2017 volvo and as i remember from this particular customer we decided not to do this car deal after all but here we have 1247 dollars in aftermarkets in most cases i pass on all of those things so this is money i'd take out a dealer dog fee of 4.99 again i'd reduce that to 75 bucks and so on this particular one 12 47 499 give them 75 for the doc fee 1671 saved i want to give this person here major credit total cash down payment nine thousand dollars there you go that's getting it done these last two contracts this one being the worst of the entire bunch and the next one being the best so you can see what that looks like going from worst to first here we have eleven hundred twenty dollars for dealer options if there's any way to get rid of these i'd do it a dealer processing fee 799 dollars then there is an extended service contract 1163 dollars and 90 cents no thanks a maintenance contract with tax 1905.50 again no thanks gap insurance 395. that's actually a pretty low cost gap insurance policy there then they have purchaser's online systems filing fee 12 and 60 cents now they're just trying to nickel and dime you then the dealer's business license tax 31.24 i'm not paying your taxes deal you cover your own taxes so here we go 1120 799 1163 90 1905 50 395 1260 3124 i'd give them 75 for the doc fee and save myself hundred fifty 5 dollars and twenty four cents on this car deal and here's the last one i'm gonna share with you today this particular car contract awesome accessories service contract gap all those are zero zero zeros you don't see any other major fees on here the only thing i have circled is the title inspection and dock fee category they've kind of sandwiched a bunch of things together you don't really know what the doc fee is normally i pay 75 and that's it so have them break this out but all total this is the cleanest contract i've seen in a long time so whoever got this deal you win the clean contract award congratulations carefully think through your reason for buying you know you've been dreaming of owning this car since you were a kid or maybe ever since you made your last bad car buying decision you think that this purchase will make you happy or impress your friends but you're wrong that's the wrong motive altogether to be buying a car with you're not thinking through your buying decisions you're thinking emotionally instead of logically about the car deal i want it is not a logical reason to buy a car oh man consider the opportunity cost of your money every time you make a choice there's a certain value you place on that choice whether you know it or not the opportunity cost is what you gave up to get the car that add-on or that extended warranty or any service or the so-called peace of mind the finance man is going to talk to you about in this case the opportunity cost of getting those things is the money you lost to get them think about the idea of opportunity cost if i spend money on this then i can't spend money on something else seriously if you've never heard of dave ramsey show watch a couple before you go car shopping again and you'll have a whole new respect for the money that's in your pocket and your ability to use your own all right if you appreciate our video today consider giving us that great big thumbs up and please always remember to comment on our videos comments really matter because they help boost the search algorithms and then others find this content too add hashtag the homework guide to your comment if you're on other platforms look for us out there there's a list of options appearing on the screen now and they're linked in the description box below if you're new here make sure you check out all the other videos we have we're now over 46 million views and you might as well benefit from all that great content too if you want to show your support with the tip well paypal and cashup links will be easy to find in that description box down below the entire homework guy team is here to represent you the car buyer and that's exactly what we do well thanks everyone for coming back we'll see you on our next video you guys rock i'm kevin hunter the homework guy here with the amazing elizabeth we gotta go [Music] [Music] [Music] you

Channel: Kevin Hunter The Homework Guy

Views: 53,368

Keywords: Car prices, news, car loan calculator, Auto sales, Used cars, Car, Cars, Automotive news, Car news, Automotive, Car Buying Tips, cash, car dealership scams, car dealership negotiation, car dealership rip offs, car financing, dealership scams, car rip offs, car tips, scam, where to buy a car near me, how buy a car with bad credit, how buy a car, how buy a car from private seller, we buy any car, best way to buy a car, how buy a car from a dealer

Id: rP-Mb_G3cW0

Length: 40min 50sec (2450 seconds)

Published: Thu Aug 19 2021