HOW TO AVOID CAR DEALER MARK-UPS in 2023: BUYER BEWARE, KBB The Homework Guy Kevin Hunter, Elizabeth

foreign how to avoid dealer markups in 2023 buyer beware so says KBB yeah hi I'm Kevin Hunter the homework guy here today with amazing Elizabeth the homework gal we've known for some time that the dealer markups were dead fakes but what's mind-blowing about this headline is that this time it's actually Kelley Blue Book who is saying it if you recall we did say the dealer markup was dead back on December 6th right that's pretty amazing that KBB is saying it now with them being all snuggled up under the Cox Automotive umbrella in recent years Kelly has behaved more like an organization that's beholden to the dealers indeed so it's a bit shocking to see the news coming from them wow so they actually can advocate for a car buyer right Kevin amazing however I would just say because they got this right doesn't mean they should be trusted on everything else nope not at all no even though the market is Shifting right now it's still true for most people that finding a new car at a reasonable price is tricky and strike a good deal is a challenge you'll definitely have to work for it and anyone who tells you different is lying to you for the last two years it's been a seller's market but it is Shifting slowly back into a buyer's market it will continue getting easier with time but time is exactly what it will take the consumers have to treat this car market like The Hunger Games to drive dealers off the nonsense most of them are part of Hunger Games huh yes in other words right now even the ferris dealers if such an elusive Critter even exists don't have much incentive to negotiate be prepared folks and do your homework first as we've shown you how make sure you download our free car buyers guide and either get the new car or used car email template too depending on what kind of car you're shopping for they are right there on our website thehomeworkguy.com whatever you do don't just go Waltzing off to a dealership to see what kind of deal you can get nope don't do that once you're in the Lion's Den you're at their Mercy on their Turf and many of you won't have the option to get up and walk out no matter how ugly the deal gets but some of you do most of you don't speaking of doing homework as Liz just said since the technique of getting an out the door price from a dealer for a used car is just as important as new cars on Tuesday in response to viewer requests we uploaded a free used car email template to our website to add to the already great tools we have there for getting out the door pricing from dealers and doing your homework properly a list of fake fees will soon be there for you to check out too so make sure you check back often you must know your stuff and have dealers over the barrel and committed to a final price before you show up you will of course run into some very belligerent dealer types like this viewer did he writes I'm in the market for a Kia Rio been looking at dealerships asking for out the door prices keep getting told by every Kia dealership to go to that if I want the out the door price I have to let them run a credit check on me now that's total BS and then later goes on to say dealerships I've contacted over the phone and by email won't even say hello in response without telling me to just come to the dealer lot for prices the typical response right whatever you do folks do not go to the dealership unless they respond in writing as you request on the email find a different dealer a dealer like this is telling you loud and clear that they are among the bottom dwellers the scum suckers off the bottom of the fish tank of the dealers out there yes like what the heck are they hiding from with this in mind you'll need to guard against any dealers treating the short supply of cars like it's their winning lottery ticket yeah many are still tacking thousands of dollars in dealer markups to the manufacturer's suggested retail price if you didn't know by law window stickers on every new car available for sale must display the MSRP but that doesn't mean some dealers won't take them off anyway like our viewer Slavic boa reports I notice a lot of new vehicles don't have a window sticker on them however if you request it you can get it or look at it and print it if needed otherwise great point on the destination charge that should be part of MSRP total not an extra fee I'll be checking a few different manufacturer dealers soon of who is or isn't hiding this on their quote time for an FTC complaint against that dealer that's right some dealers while knowing full well that the shortage is essentially over are continuing the game with a charade hoping to fool unsuspecting buyers into thinking there are no cars in inventory what's the Charis you ask ask parking cars behind their buildings or even on reserve Lots off-site so it looks like they're no inventory claim is valid viewers are noticing it too like Brian shared and reported on our Facebook page it's happening here in San Antonio they say they have no cars but over by the airport the reserve lots are full yeah I got kicked off a Reddit thread for calling them out for it just for telling the truth we need direct selling from manufacturers dealers need to get out of the business they offer no value the game playing Knows No Limits that's for sure with deal a lot looking empty in many areas of the country the vehicles arriving on transport trucks will often be pre-sold or at least promised because a lot of people are ordering new vehicles yeah it's definitely a difficult market for car Shoppers let's take a moment and break down a dealer Market Liz we Define dealer markup as profit and the selling price of dealership assigns that is above and beyond the car Maker's MSRP a dealer tax is totally arbitrary amounts onto the MSRP to increase their profit on what they say are high demand models totally arbitrary folks sometimes such markups appear as a second window sticker separate from the MSRP dealer markups are not new historically you would find them primarily for highly anticipated all new or redesigned models do their markup may show up under the following terms listed on the label on your sales invoice Market adjustment additional dealer markup additional dealer profit adjusted market value these costs are the ones to look out for and if possible a void a other markups you might encounter include the cost of dealer add-ons like delivery fees ceramic coating seat fabric production Vin etching and pinstriping you could often negotiate such traditional add-ons out of the final transaction price even that is tougher to do today when dealers started doing markups manufacturers started warning their dealers yeah high demand during the pandemic spread across nearly all vehicle makes and models in the market the Temptation the price gouge for dealers was simply too great for them to resist yeah but in 2022 the manufacturers took exception to this in places like Ford General Motors Subaru Hyundai and others began cracking down on dealership pricing because I think it was a little bit too late though Ford's CEO Jim Farley who has been a very outspoken critic against his dealers has warned dealers to cut the markups during company earnings calls also Farley wants the company to move to a new business model of non-negotiated prices at 100 online Hyundai sent warning letters to dealers and mentioned specific practices including add advertising one prize online than naming a different price when the customer starts negotiating a fixing window stickers with markups included as itemized parts of a vehicle's price and all of these practices result in the sale of vehicles above MSRP prices in some cases way above MSRP prices this was according to a letter from the automotive news that risk damaging our Brand's long-term ability to capture new customers and retained loyal ones what you the car buyer can do about high markups on cars option one just wait that's what we're advising people to do unless it's an emergency case not a want but a definite need although new car inventories remain tight at the moment the rapidly expanding inventory of cars means this bad Market won't last forever if you aren't desperate for a car wait for a more favorable time like June 2023 for example option two contact several dealers the more dealers you contact the better your chances of scoring the best deal we suggest at least four dealers to simplify the process use our free email template you can download right from our website to get out the door pricing quotes from dealers in your local area you can choose which dealers and who you want to contact you with quotes particularly when you're looking for new don't be afraid to cross state lines option three be prepared to compromise the Rolling Stone said it best you can always get what you want but if you try sometimes get what you need all right we can do this all day if you're going to buy well the market is still hot favoring dealers remain a little flexible the odds are you won't get exactly the color you want with the engine you want or the accessories you want for the price you want decide what is most important and be willing to compromise on the other things that kind of sucks but when you're in a tough Market you just got to do it in option four for sure don't take dealer ads at face value new car advertising typically comes with so many disclaimers and caveats regardless of the market conditions if a new car price seems too good to be true it most definitely is yeah when you see a specific model advertised contact the dealer and make sure it's even there before making the trip when an ad claims they have several units of the same model on hand don't count on that being true either in this market often those numbers include vehicles that have yet to arrive or are already spoken for or are sold option five now may be the best time to consider ordering from the factory except for some electric Brands like Tesla most car makers still require you to order a vehicle through a franchise dealership however you can specify precisely the color model and options you want when you order the car you can usually skip the add-on nonsense you will probably still be stuck paying MSRP for now but at least you'll have the exact vehicle you want the issue with special ordering is that the car may take many months to arrive option number six if leasing a vehicle watch out for fees use our out the door pricing template to negotiate the price of a car you want to lease via email before visiting the dealership yes you should negotiate the price like you're going to buy it many leases contain a vague list of fees and costs related to The Upfront charges check out our car buyers guide check your lease contract and know your rights question everything shop around for the best deal and don't pay anything not listed in the contract and don't get burned with a lease that only allows 7 500 Miles unless you're a retired Grandpa that's the latest greatest way for dealers to jack up the cost of limit your miles with huge penalties for miles over it looks cheaper on the surface folks but it will definitely cost you in the end it helped to shop vehicle Brands who include Buick Jeep Infinity Dodge Ram Jaguar Volvo Lincoln Chrysler and Audi and practice a bit more caution with these Brands who have lower inventory Toyota Kia Lexus Land Rover Honda BMW Subaru Volkswagen Acura and Hyundai if you're not overly picky on the vehicle you're after especially during a tough market like this is you're also more likely to get a better deal on vehicles that typically sit longer on a dealer's inventory longer on the lot definitely helps remember the spreadsheets we used to carry around they actually had how long the cars were on the lot on the spreadsheet so we all knew which ones were the old ones yes here are some new examples Alpha Romeo Julia sits 52 days in inventory on average Chevy bolt euv 52 days Ford Escape also 52 days Volvo XC60 52 days on average then you have Ram 1500 57 days on average sitting on a dealer's lot Dodge Durango 58 days and finally the super beefy Chevy Silverado 4500 be 60 days what a beast that truck is oh my gosh so there you have it right now outdoor pricing is your ticket to the best possible deal appreciate it Today's Show could I ask you to do us a favor if you're on Facebook would you visit our page leave us a comment and a review and share what you've learned from us over the past several years and then stop by our website too thehomeworkguy.com as we've mentioned the free car buyers guide is there along with the out the door pricing email template on both new and used cars and while you're visiting if you're interested in giving the best possible care to your used car check out the x-caps and Amsoil links our website is where you can find great information on these products both products are a good way to save on gas expenses and keep your used vehicles running in Tip-Top shape 13 years on YouTube has been an unbelievable Journey For Us folks and we do appreciate each and every one of you if you'd like to show some gratitude for our many years of service by sending us a tip the links appearing on the screen will be easy to find in the description box down below PayPal cash up and of course venmo to all of you who have tipped us over the years please accept our gratitude we really appreciate your thoughtful kindness like a waiter at a restaurant we're in the service business and totally voluntary tips do provide a good good indicator to tell us how much you appreciate what we do I also want to remind our viewers about our generous offer for free car buying assistance it's not an automated line folks so you actually get us you don't have to blow your hard-earned cash on an ineffective car club membership just text your name to 701-441-3399 and we'll get you on the list and we'll be on standby the next time you visit a car dealer we look forward to hearing from you as you car shop we will assist you with guidance on how to get an out the door price including all fees on your next car purchase and yes we'll give you some encouragement as you're about to enter the dealership and no problem contacting us months before you're looking to buy we can make you almost bulletproof in that time frame guys all right if you're new here at the homework Guide channel don't forget to subscribe and ring that Bell we love our subscribers and we welcome you to our family and of course please share our videos on places like Facebook and Twitter or whatever platform you're hanging out on 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 homework guy signing off with the amazing Elizabeth the homework gal once again still earning your trust see you next time we gotta go foreign

Channel: Kevin Hunter The Homework Guy

Views: 98,609

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: cZ6RZs_BifM

Length: 14min 10sec (850 seconds)

Published: Thu Dec 22 2022