GET BIG DISCOUNTS off MSRP at CAR Dealerships 2021 - Expert Auto Advice on Vehicles

[Music] welcome here to the newsdesk Northwest initial news I'm Kevin hunter with Kyle Ferguson and we're gonna be talking about how to get big discounts off MSRP that is manufactured suggested retail price at your local car dealership so Kyle has a number of pictures to share with us as we go along and help you better understand what specifically we're talking about so anyhow let's get started by sharing with people what a window sticker looks like this is one of your common manufacturers that you find out on a car lot Ford and so you know generally you'll see a window sticker like this and kind of a lot of people look at this window sticker and some people unfortunately think this is where car negotiations start so we're gonna educate people and help them better understand more of what's going on behind the scenes and how to accomplish somewhere in the neighborhood of a 20 to 25 percent off MSRP when it's all said and done so some of the discounts that I'm gonna share with you today or the ways to save money off window sticker some of them can't be used at the same time as other discounts but you being aware of all the different ones that exists out there it means everything to you arriving at a end price that's the most fair for you the buyer so let's get started talking about dealer invoice this is very different than the window sticker so this is actually what the dealer is invoiced from the manufacturer so on this particular one Kyle's Mike is covering the the final number down there but you see that the the MSRP on this particular vehicle is thirty thousand eight hundred and sixty bucks so that's the number that you'd see out on the window sticker on the lot yes and the number next to it then is the actual dealer invoice which is twenty eight thousand 504 that's a difference of twenty three hundred and fifty dollars roughly now there's another thing that comes out of this MSRP before so that we're talking about what actual dealer cost is so in this case this particular vehicle that had an MSRP of thirty thousand eight it's actual cost of the dealer is twenty eight thousand 5:02 and then there's also a hold back so let's show the hold back graphic there now this just gives an approximation of what hold back is in some of the various manufacturers that are out there hold back is really a amount of money that the manufacturer paced the dealership at the conclusion of the month based on all the new cars that they've sold there and you look at accurate 2% of base MSRP done at the bottom here in fact behind my shoulder you see Ford there 3% of total MSRP so on that Ford window sticker that we showed early on you could see a invoice you know being twenty three hundred twenty-five hundred less than what the window sticker is and then Ford has a 3% of total MSRP and on the particular example that we were talking about that's another nine hundred and twenty-five bucks so the dealers real cost on a MSRP of thirty thousand eight sixty was reduced to dealer invoice at twenty eight 502 and another nine hundred and twenty five dollars comes off of that for holdback so now you know what the actual cost is to the dealer from the manufacturer now let's visit about another subject that comes that comes into play here Kyle and that is manufacturer rebates and dealer incentives so here when we look at this graphic we have here of all these different discounts that are off of these vehicles you need to know what the manufacturer rebates are off a new car that you're buying because those are actually rebates from the manufacturer to the dealer but that because that's your money as a car buyer so when you need to know what those rebates are because whatever this when we mentioned what the final cost to dealer was these rebates are coming out of that number now as well so they are in addition to dealer invoice and dealer holdback come these manufacturer rebates that have nothing to do with anything else is going out there it's just what the manufacturer is rebaiting on and discounting to the dealer which goes to the customer you can see things like this show on Windows all the time so this particular vehicle MSRP was at 36,000 680 now the SAV 7000 is actually a combination of rebates and a dealer incentive there and then they have this t bonus which it can be a number of different things you always have to ask what's this additional bonuses on here but you notice a t bonus of a thousand bucks now this vehicle is marked for sale at 28,000 680 that is a reduction of 22% off MSRP now the thing for you to know as a potential car buyer do you think this is the end of the negotiations do you think that's the price you're gonna pay for the car I think as an average person I believe so yeah if you're not a very good negotiator the answer is yes because another dealer somewhere else will have the same thing penciled out on their car window somewhere we'll get to this in the end but you start pitting these two dealers against each other and watch that number go to 28 maybe to 20 75 whatever so that's not the end of the negotiations and as we said early on you can get somewhere between 20 25 percent off MSRP this is just one of the examples of how that happens so a couple other things that come into play besides rebates and dealer incentives you can also have things like a ex plan or an employee purchase program if you are either if your company is either a supplier to the manufacturer or you're an employee anywhere in the manufacturers realm of influence also ask about employee discounts or things that are otherwise known as ex plan discounts make sure you ask about those so now let's talk about a different subject moving on to brand loyalty now you might ask you know what what is brand loyalty discounts and how do they come into play well look at some of the manufacturers that are on this list here this is the these are people at the top of the list here is Subaru 67.7% of people who bought a Subaru generally returned back to Subaru to buy another Subaru that's a little bit of a testament to the quality of the vehicle and how people like but there's another way that these brands out there are getting this kind of loyalty they give you a little incentive to come back so not all of them do that but if you're aware of the fact that brand loyalty does exist this are in many manufacturers have discounts for them don't be surprised if you've owned a Dodge as an example for five years or ten years and you come back to buy another Dodge don't be surprised if Dodge is running an incentive where you get another 500 bucks off of your truck you're buying because you've been a Dodge owner for the last five years 10 years whatever it may be so make sure you ask about brand loyalty discounts now here's another one that a lot of people aren't aware of and that is the regional auto shows that go on now this isn't something that the Auto Show itself is doing this is something that manufacturers are doing and where you see these commonly show up are in the springtime so auto shows in your region might run in February March April somewhere in that time frame so they do these auto shows generally in the spring and when you're either at the Auto Show or when you go out to it let's say you find a car here you really like and you go shopping at one of the local dealers ask them are there Auto Show rebates that are going on right now because most of the manufacturers will throw additional money at the car while the auto shows are going on make sure you ask about a Auto Show discount other discounts to be aware of if you're either a student in college and/or a college grad these are great things to be aware of because these can be any number they can be 500 bucks is he in this one this is a one being run by Toyota in this particular time frame 750 buck rebate these rebates in most cases are added on top of the other rebates that are already available on the car so you're going to need proof though of schools so make sure you have either you don't need to necessarily have college transcripts but have information from your school and your college that demonstrate that your student may be a student ID helps every manufacturer has a little bit different burden of proof for you to prove that you're a college student but be aware of the fact that if you're either in school or a recent grad it from school that this may well apply to you and you got another discount come along how about veterans veterans as well there's a veteran's and/or active military and this particular one as you can see is being offered by Ford many of the manufacturers have these those so either talk about current service or veteran and again you're going to need to have some proof that you're a veteran if you got a copy of your dd-214 and/or a active military card generally that's the burden of proof but always talk to the dealer and find out what that particular manufacturer wants but again another appreciation cash or a rebate that comes along to somebody who is a veteran now let's say that you are a veteran as well as a recent college grad it's possible that that manufacturer may have both of those discounts going on at the time you may only qualify for one or the other so don't be surprised if that happens now here's some good news for first-time buyers if you've never bought a car or specifically a new car if you've never had a car loan in your name before you could qualify for first-time buyer program now there's a couple different ways this can be beneficial to you it could be not only in terms of a rebate or some cash off but there can also be first-time buyer financing terms out there that are specific to somebody who's a buyer for the first time so now let's talk about a few of the things that really are outside the realm of manufacturer discounts per se but they're things that impact the dealership itself let's visit first of all about aged inventory now this is a little bit associated with manufacturer as well but so look at this your end event why do you suppose that a the best time to bright by a brand new car the best month of the year is December and the worst month of the year is January have any idea why that might be the case new cars are ruling out at the beginning of the year new cars are out on the lot they have no idea what the sales picture is going to or anything else on those new cars but come the end of the year now they still have models sitting on the lot and they're gone hey we still have you know we're in 2018 right now there's 2017 models even this late in the year there's there's there's models from the previous year sitting on car Lots out there if you see the the model year from the previous year I even tell people hey go to if you've been shopping on a specific dealer find and you're looking at a specific model let's just use trucks as an example if you have the previous year model and the current year model on that lot at the same time that's actually really works out in your favor on that previous year model and so there's not only incentives coming from the manufacturer but incentive from the dealer to get that off of their lot and so hey if you have the previous year model and the current year model on the lot at the same time December is usually always the best time of the year to buy a car a couple of things that tie into timing as far as purchase any time throughout the year the best time is to buy a car at the end of the month the dealer gets given incentives for volumes of cars that are moved in a given month the priority that they get from the manufacturer and how many new cars they can get or models of new cars that might be in high demand are all based on sales of previous months so as an example if a dealer is at the point where one or two extra sales make a difference in how many cars they can ask for in the next month and it maybe has an influence on what kind of money they're getting back from the manufacturer in terms of hold back and other things they're gonna be much more inclined to sell that vehicle to you and much more motivated to negotiate with you at the end of the month the other little tweak to this is let's say it's now the last week of the month my recommendation as far as days of the week go on a Tuesday and Thursday when it's or a Tuesday Wednesday rather in the middle of the week when it's slower in the dealership why because they have more time to dicker with you number one and you know the sales really pick up going into Friday and Saturday they don't like to spend hours working on a deal with you on the weekends because they got so many customers coming in there and Monday tends to be the first day of the week where they're tying up all these car deals that happen from over the weekend and even people who never showed up on Saturdays who might have been car shopping on a Saturday or Sunday while there's nobody around show up on Monday to do car deal so Monday's don't generally tend to be really great days for drawn-out negotiations but if you don't mind spending the time show up on a Tuesday or Wednesday in the last week of the month and put the screws to them that tends to work out in your favor and again going back to the aged inventory you can ask questions anytime throughout the year you can ask questions hey can you show me a couple of the new cars you have in your lot that have been here for a few months and you're interested in move and I'd like to start there might be that the ideal vehicle for you has been sitting on that car lot for 90 days 120 days or longer and they're motivated to make it move so ask about that let's talk also about holidays now there tend to be a lot of details and promotions going on around holidays but here's Memorial Day you know next to me there's the fourth of July thing over there by Kyle you can also expect to see things like this go on perhaps around Easter Thanksgiving Christmas etc generally see all kinds of balloons and flags and everything's like that flying around these dealerships around these times so be aware of that that the holidays could actually be a very good time of year to be car shopping another category weather now here's a depiction of you know perhaps in the Midwest or somewhere where they get plenty of snow I'll tell you what when it's cold or there's been a lot of rain and it's not very good weather but there's a lot of people who are not car shopping which means the dealerships slow so during cold weather bad weather rainy weather not a bad idea to go out and make a visit if you don't mind you're in sell yourself in during a little bit of this weather punishment go out and do a little car show during bad weather you'll be surprised because here's a finance guy who hasn't you know talked to a customer perhaps in several hours because sometimes they're doing multiples a day sometimes maybe he hasn't talked to these last customers yesterday it's now noon one o'clock in the afternoon and you show up they're like hey let's uh let's get something rolling with this and make things happen man we're ready we're ready to do deals you know they'll tell you and yeah it's because of the weather so make sure that you like I said if it's cold or rainy think about going car shopping on that particular day now let's talk about some of the things that now that you learned a little bit about these discounts from dealer invoice to hold back to manufacturer rebates brand loyalty auto shows college grad discounts veteran discounts first-time buyers aged inventory no even the holidays etc what does this really come down to as far as brass tacks and I can use all of this information if you've done this shopping at a few different dealers pit the dealers against each other get the dealers negotiating with each other so we got dealer a over here and dealer B over here you know what get dealers talking about the same vehicle the same truck the same SUV whatever vehicle does you're looking at shop a few different dealers get them dealing back and forth against each other we showed you a deal here just a bit ago on the screen where this particular vehicle is written off 22% off MSRP we'll take that same take a picture of that whole deal go over to another competing dealer and say hey this is a vehicle I can get over here with this deal what can you guys do for me pit the two dealers against each other don't be surprised if they come down a little more the other comes down a little more and you get them into a little bit of a bidding war be willing to walk away guys who sit down guys and gals who sit down in the finance office and start talking numbers right away they know you're a lot more interested in buying a car and leaving than you are in negotiating don't go sit in that finance office sit out at the sales desk with a Salesman and say let's get down to some brass tacks here and see what you guys can do and when they're done get up even if you plan on buying the vehicle from that get up walk out say you know what we're gonna go get some lunch we're gonna compare apples apples out there and see what we can come up with don't be surprised if they call you while you're out to lunch and say we're gonna offer you a few more bucks you can use that time as well to call the other deal and say hey Kyle you're over at XYZ dealership I just got done visiting with Jim over here at your competitor they're now down to twenty six eight seventy we're kind of lean and on going that direction let me know if there's anything else you guys can do before we finish lunch and go back and buy this other car don't be surprised if you get another cheaper bid from them too so kid the bid the dealership against each other my final point here is it is all comes down to negotiation so you can be aware of all these deals all these rebates all these incentives you can have done all of this research don't be the person who folds when it matters you know here's a husband and wife dealing with a finance man you know at the desk hold their feet to the fire and and you know something you're gonna have to be willing to be uncomfortable and make the person across the desk from you a little uncomfortable too because you know what I've heard happen and seen happen so many times Kyle is it gets down to the car buyer having done all of their homework figured out all of these rebates all of the discounts everything they got coming to them they've you know gone and shopped their own credit with their own bank so they know what they qualify for they're in a really strong seat and this finance guy kind of like the whimpering dog you know gives you the puppy-dog eyes and go come on you guys you got to give me something here now you don't know you don't you don't have to give them anything and when you go into finance if you're buying a car just for you and you're the sole buyer hey it's your information the dealership can't tell you that you can't have another person sitting next to you while they go over your financing in your terms or whatever else bring somebody with you that you trust and you know when it comes right down to the end of this in this particular picture we see a couple sitting across the desk from the - man when it comes down to you making your final decision on what you're gonna do here's what you do you say would you kick the guy out of his own office say would you mind giving us a little bit of time step out of the office and let us talk kick the guy out of his own office make him leave and the two of you sit down and decide what you're going to agree to this is like I said it's tough it can make you uncomfortable it can make the finance man you're dealing with uncomfortable but this deal is all about the most fair and best deal for you as the customer don't waste all of this homework and all these great ideas that we've already given you don't waste them by folding when it comes to the finance office so those are our tips on how to get between 20 25 % of MSRP off of your next purchase of a brand new car there's all kinds of other tips that we have relative to finance to all the different fees you might incur etc you can find them here on this channel or go search Northwest additional news every week we're doing shows to help car buyers get the best most fair and transparent car deals that you can while you're out car shopping that's going to do it for us here on Northwest Edition news I'm Kevin hunter with Kyle torgeson until next time take care

Channel: Kevin Hunter The Homework Guy

Views: 432,616

Rating: 4.9027429 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: KJ2o0QR7GIc

Length: 21min 23sec (1283 seconds)

Published: Tue Mar 13 2018