rev up your engines, today I'm gonna tell
you why you should not buy a used car from a used car lot, numero uno is they
just charge too much money for their vehicles, guys that are selling used cars
they're pros they do it for a living they want to squeeze every last dime out
of the car, they have no personal involvement in it, it's just a used car they're
selling, generally their Commission is the percentage of the sales, the higher the
price the more money goes in their pocket, and generally to use car Lots
they will go anywhere from two to four times what they actually paid for the
vehicle that they're gonna try to get you to pay, and being professional car
salespeople, if they got a car they know sells, they'll wait until they get as much
as they possibly can, if you're buying from a private individual most people
are in a hurry to get money, cars are one of the few big liquid assets that you
can get money fast for and of
course when you buy a car from a used-car Lots, they often have a lot of
backend extras that they don't tell you about until it's too late, if you ever do
go to a used-car lot and you have no choice because you can't
find what you want except there, ask them what the price of the car is drive out,
not what they say it costs and then they're gonna add all the stuff, you want
tax, title, license, any fees they have I've seen some places add nine hundred
or a thousand dollars of extra fees including, getting the registration in
your name, dealer prep cost there's all kinds of hidden things that they'll
often stick in, and of course a private individual isn't going to do that if
they're selling you a car, so of course price is a big deal, but reliability is
also something that you got to think about, I know now they advertise all over
the place these used-car Lots will say oh check the CARFAX we have the CARFAX on
the vehicle, well all that does is passed responsibility on the CARFAX
not on themselves, and from my experience it's not that reliable anymore,
if you've watched and of my other videos I told about my old cameraman who had a
Honda that he bought from a collision shop that had been totaled, totally
two more times and then when he was buying a used car
just out of kicks he carfxed it and it said the car had never been in
a wreck and it had been totaled three times so I don't really trust that stuff anymore.
and too add insult to injury, last week I had a customer, they were looking for a
Toyota Corolla they found one at a Ford dealer used-car
lot, so they brought it over here and the ford dealer gave him the CARFAX thing
that said it hadn't been wrecked, well the first thing I did was jack it up in the
air, and saw that all the plastic stuff on the undercarriage was ripped off, torn,
some of it or half of it was missing they cut
the other half so it didn't drag on the ground anymore, and when I looked at the
radiator support, I found that half of the latch was painted white and the
other half was the factory black, now this was a white Toyota, so obviously the
car been wrecked and repainted, but the CARFAX said it had never been wrecked, and
they had a stupid sticker right on the window that said, as is no warranty so
the ford used-car dealer there was doing a double protection, they put a
little sticker on it says, as is no warranty, but they also handed the CARFAX
that said it hadn't been in a wreck, so even you could show it was in in a wreck and any
fool could find that out, the Ford dealer just had to say, oh look our sticker
said there's no warranty that we didn't inspect it, but the CARFAX said it wasn't
wrecked so if you want to sue somebody sue Carfax because they told us it hadn't
been wrecked, you really don't want to deal with any of the stuff when you're buying
a used car, and on top of it all they were asking an ungodly sum for
this car, they wanted like $11,000 for a car they had 120,000 miles, had been
wrecked, and even the body itself had a lot of paint chips on it, because when
they did the bodywork it had been awhile back because the paint didn't smell
anymore, but a lot of the paint that they put on it chipped and flake off so they're
asking outrageous amount of money for a car that wasn't even in that good shape
cosmetically, but here again the Ford dealer used car they understood
hey it's a Toyota Corolla these things are easy to sell everybody wants them
and they're just stacking it up the highest they could possibly ask for it, and
hope some fool pays that much and if they
don't, then over the course of weeks they'll lower the price until somebody buys it,
and of course at most used-car Lots they are trying to sell you these extended warranty
packages now consumer reports showed that in the United
States over 55% of the people who bought these policies never used them, never
made a claim, yet the average cost was $1,300, so there's $1,300 that you'll
never see again, and even if you need to use it, I had a customer they had one of
these and the engine went out, they tried to
use it and the warranty company said, the engine was damaged when you bought it we
don't pay for pre-existing conditions, so they didn't get the engine repaired
which would have cost thousands of dollars for free, because they said oh
that's a pre-existing condition we don't pay for that, now of course you want to
have a mechanic like myself check out a used car before you buy it, that's the
best insurance, but don't think that these warranty policies which are just
insurance policies, are gonna cover all kinds of stuff, because then you're
arguing with an insurance company, usually a relatively large one, they
don't care about you, and are you really going to take them to court over
something, they know how much money that cost and if they deny a claim, take
them to court sure, but who wants to deal with that nonsense in the first place
and another reason not to buy from used-car dealer is, a lot of them have these
certified pre-owned cars that they certified, well who certified it they
certified it themselves, and that reminds me of one of the craziest things I ever
saw, I had gone to a Toyota dealer for a customer who was buying a used car there
and I'm checking it out in the parking lot, and I find out that the thing is two
quarts low on oil, so I told him I said, well my customers not gonna buy this car
it's an oil burners it's two quarts low on oil,
and this vehicle had a sign on it that said certified pre-owned car, they told me oh
well we haven't serviced it yet don't worry we're gonna service it, wchich I told them
it's too late now buddy I see the cars is two quart low on oil that
means it's burning oil, I looked around it wasn't leaking it was burning oil, the
previous owner didn't take care of it now it's too late, the engine has been
damaged, so my customer did not buy the car and this was one that said certified
pre-owned, you know once they change the oil and the oil is clean you're not gonna
know that it's an oil burner until you buy it and then you're stuck with it, and
even if you had some kind of warranty, I seen these warranties they say stuff
like, well guarantee against excessive oil consumption, well
what's excessive oil consumption, to me if I bought a car and it burns any oil,
that's excessive I don't want that car all those things have so many exclusions
they can get away with, it's not a good idea to buy from these pros, you're
buying a car from a professional at a used-car lot,
they paid anywhere from thirty to fifty percent generally of what they're
selling it for, well they bought that from somebody, why don't you buy it from
somebody yourself and save, I actually used to know a guy that did that for a
living, he told people that he would buy their new car cuz, he knew how to
negotiate so he could save a few thousand buying a new car for them, as long
as they gave him their used car at the
dealer trade-in value, so he got the cars at that price which is cheap, then mainly
he had a used car business, where he would then take those cars he got cheap
and sell them at a higher price at his used car lot, so buying from a private
individual, Hey much better idea really, because hey when somebody needs money
cars that might go for six thousand on the street, hey you go to trade it
in, or I just want to trade the car not buy another car like at car max
they're gonna probably offer you a two or three grand for the car, so when the
shoe is on the other foot and you're buying a used car, take advantage of that
and buy a good used car from a private individual, because as I said the dealers
are professionals, they know how to make money selling cars, it's sort of like you
might think you're a good poker player, well take a trip to Las Vegas and play
at a high-roller stake poker game, they'll probably eat you alive, because
they're pros and they really know what they're doing, but I've had plenty of
customers buy used cars from private individuals, those people the private
individuals they bought them from, they don't know all that much about cars and they
just got tired of the car because, uh well they need to fix this and that and
they want another car, now I'm not saying you can get a Celica like this for 350
bucks like I did, the customer was tired of the car, and yeah the bumper was all
yellow cuz she had it painted at a high school and it all came off the paint
and the yellow underneath was there, so I had to
get my body guy to paint it and stuff there are some deals out there in the
real world, but you're not gonna find them at
dealerships, when I bought that Celica then my son who lived at home back then
he was going to college, he wanted a Celica too, so I started
looking around, well comparable cars like mine that I
bought for three hundred and fifty bucks, they wanted like $9,500 at the toyota
dealer at their used-car lot, because oh it's a Celica and even though it was
twenty years old, oh it's a sports car and these are really good cars, and sure
I got a deal on this one for 350, but they're selling something for almost 30
times what I paid for this car, your never gonna get a real deal at one of
these used-car Lots they're pros they know what they're doing
but if you have to buy from a used-car lot, if you do one thing and one thing
only, tell them you want to see a clean title
you don't want to get one that's a reconditioned title or salvage title, it
meant the insurance company had totaled it, because they buy tons of those and then
fix them as cheap as they can and sell them, which is why I tell people don't go to
these car auctions either, unless you're a pro cuz the pros at the car Lots they
might go with 10 grand, they might buy five or six cars and they
might sell each one of them for five or six thousand dollars, so even if they get
two or three lemons they're still making a lot of money, but you're only buying
one car and an auction, it's a lemon you're stuck with it so stay away from
car auction too, if you're buying a used car that your going to use as an everyday
driver, so now you know why not to buy cars at a used-car lot, cuz if you use
your head you can save a lot of money buying a used car, but don't try to play
the game with the pros, they'll win and you'll lose, so if you never want to miss
another one of my new car repair videos, remember to ring that Bell!
