TOP 10 TIPS - BEAT the CAR DEALER FINANCE OFFICE -Best "How to" Auto F&I and Vehicle Loan Advice

[Music] hello I'm Kevin hunter today I'm going to talk to you about the dealerships finance office their favorite strategies they like to deploy and cashing mistakes you can make before you sign out on your next pot with profit margins on new cars being tighter than ever car dealers have plenty of incentives to get creative with how they make money off of you the consumers we fully recognize that there's no crime in making a profit however there are plenty of questionable methods and strategies deployed and outright lies told all in the name of making money for many years it's been car salesmen that get the bad rap for being dishonest however the biggest liars and deceivers in the entire car dealerships sit in the finance office the people who occupy this office are known as business managers F&I managers the finance man and even a loan officer you'll probably think this person is your friend after all you finally finished negotiating your car deal and this fellow is going to help you sign out on your car when you were introduced to this person you'll never hear a more glowing report of a human being at any time in your life it's called the t o or turn over to the finance officer you'll be told you're in good hands you'll be told it's easy from here on out and nothing could be further from the truth you are about to face the most skilled salesperson the dealership employs two simple rules to remember the moment you meet the finance officer or step into their office first you are not obligated to buy or pay for anything they offer in the finance office no matter what they say including additional dealer fees and secondly the finance man is obligated by the owner of the dealership to sell you products to boost dealer profits everything you hear out of their mouth is to make the dealership money many of them will say anything and everything and even violate state law to get you to add profits to the car deal the process is designed to slow things down to wear you out to get you to sign your name on inconsequential documents so they can have you nodding your head yes when it really counts let's get started number one rustproofing it's a proven fact that a new car coming off an assembly line anywhere by any automaker does not need rust proofing in fact several automakers actually void the factory corrosion and perforation warranty if the car is under coated by a third party the reason quite simple dealer applied undercoating have been known to plug drain holes designed and body panels thus preventing them from getting rid of water accumulated from rainfall or other exposure to moisture when a body panel cannot drain no amount of coating in the world can save it so why do dealers sell it anyway simple huge market dealer applied under coating ranges from 300 to as much as 1500 depending on the car and the type of treatment package they offer you number two fabric protection a lot of dealers will eagerly pitch you on fabric protection which is really nothing more than an off-the-shelf spray can applied by a minimum-wage employee and then it's sold to you at 200 300 400 or even more John Nielsen national director of auto repair and buying at triple-a states that automakers install high quality interiors that incorporate materials and fabrics that shouldn't have stain related issues if you still think you need that extra protection all you have to do is buy a $10 bottle of scotch guard spray it on yourself problem solved hundreds of dollars saved number three paint protection the sales pitch on paint protection is amazing you'll hear something like this stuff is used in the aerospace industry and it provides a superior year-round no laghw shine and protects against harsh environments sounds amazing doesn't it protective paint sealing can easily cost a new car buyer two to four hundred dollars for a basic package and get up to a thousand or even two thousand for the premium packages here's the truth automotive paints today are durable finishes that benefit much more from regular washing and waxing than they do from added sealers quinces identifiers generally advise against waxing or sealing the paint on a new car for a period of weeks or even months to allow for proper curing number four then itching or window theft protection then etching is a subject of much scrutiny and many lawsuits many dealers no longer sell it and they call the ones that do thieves or crooks they are right then etching is nothing more than an adhesive stencil containing the vehicle identification number or VIN as they call it of your car however when the finance man talks to you about it you'll believe the police will find your car with it that it can't be uninstalled that you must pay for it this is all nonsense there are tons of claims about VIN etching and most so that is bogus so why do they sell it again pure profits window edging is commonly sold from 250 to as much as 600 bucks and sadly most consumers have no idea they even bought it for those of you who think you still need it you can go online buy the kit yourself for twenty to forty bucks and install it in ten minutes number five gap insurance gap insurance is one of the most abused and legitimate insurance policies in the car business dealers try to sell to everyone and commonly include it in what they called preferred protection packages here's what it does gap covers the difference between actual vehicle value and your loan balance if you should happen to total your car with so many people being duped by savvy finance officers it's become a common problem to have a loan on a car that's greater than its actual value overpriced dealer gap adds to the inflated loan balance by stinging you for additional 300 to 750 bucks if you really need gap talk to your own insurance provider first you'll find out they sell it for 30 to 35 dollars a year hopefully you're a bit smarter than most car buyers and you don't even need gap number 6 extended warranties warranties are another commonly abused dealer product as a dealer option extended warranties can be a good thing in some cases but to a very limited number of car buyers starting at $1,000 they can easily climb to several thousand bucks here are the problems first finance offices routinely lied to buyers claiming that the bank wants you to have one or they tell you this is what most people go with they're lying and they're not looking out for you and secondly many warranties aren't worth the paper they're written on I've been personally involved in several cases where full coverage warranties only paid a fraction of the cost of repairs and in some cases the customer lost their vehicle entirely destroying their credit in the process so much for being safe instead of sorry but this is what happens when you believe the wrong people here's my suggestion I have never bought an extended warranty I suggest you consider cars that have great service reputations have your car inspected before you buy it and then put a few dollars away in a savings account if you should ever need it I've never regretted doing this and neither will you for most people these 3 simple steps will provide greater protection in the long run then most extended warranty plans you find at a car dealer a final note on extended warranties if you're watching this video and you've had a great experience with a given type of extended warranty in the past please list it in the comments below so that other car buyers can make better choices knowing who the good warranty companies are is always good for people who think they need an extended warranty number seven the ever-popular document fees and delivery fees when the finance man can't beat you on other things it's the document fee that gets fatter and delivery fees that get added refuse to pay anything over seventy five dollars for a document fee and refused to pay a delivery fee on any used car if it's a new car demand to see the dealer's manufacturer invoice on the car the delivery fee was likely included in the invoice price and is not an additional fee to the dealer that means you are not obligated to pay it don't let the dealer rip you off with any delivery fees you don't have to pay and nobody should ever pay over $75 for a doc fee number eight the finance man changing the price of your car your trade or both before you sign out when your car deal was finally negotiated you thought you were done car buyers don't always think to double check the numbers take Nikki for example she was buying a used car for $22,000 she wanted two grand for her trade but the manager only wanted to pay a thousand bucks eventually they caved in and gave her the two thousand dollars after she left the dealership however she noticed a problem with her paperwork her trade was listed at the two grand she asked for but the car she had just bought moved from twenty-two thousand to twenty two 999 nice trick she went back and caught in the lied the dealer fixed what they claimed was a mistake made by the finance man I'm sure you know this was no accident you should always be taking notes during the negotiation phase and always double-check the numbers number nine the finance office changing your interest rate your down payment your monthly payment or the term of the loan most people visit with the finance man two or three times the first time will likely happen while you wait in the dealership showroom or in the sales office and you'll hear what a great person he or she is you may have a follow-up finance interview and then finally a sit-down in the finance office there are a lot of promises made during this why would your interest rate change or the term of your loan change easy there are many dealers who shotgun a deal this means they shopped your car deal out too many bankers dealers commonly try to hunt for banks that give them a better call back which is simply more room to add products in the car deal dealer bankers do nothing to discourage this because they know that the number one responsibility of the dealer finance office is to make money for the car dealer listen to what I just said the dealer bankers know that it's the number one responsibility of the dealer finance office to make money for the car dealer you must verify your interest rate the cash down payment amount the monthly payment and especially the term you can easily be switched from a 60 month note to a 66 month note while adding in products and maintaining your expected card payment clueless buyers get stung on this all the time and number 10 which is perhaps the worst Trick dealers do it's called the yo-yo payment trick or the take your car home while we finish your paperwork trick the number one reason that finance officers do this is to take you out of the car market they promise you that it alone is pending and you can take the car while the details get figured out there are many dirty tricks that the real con artists in the car business pool but this is one of the worst dealers who do this are subject to harsh penalties from the FTC but that doesn't stop them from doing it here's what happens you are told to take the car home while they finish the paperwork they say they will call you to come back later to sign everything I can't stress this enough never drive a car home you haven't signed out on this is the so-called yo-yo deal you go home thinking the financing is taken care of and you'll have payments for let's say 300 bucks a month sometimes as much as a week later the dealership calls and says that in order to get financing approved the payment must be $400 a month or they say a different deal has to be signed because they switched banks or they confess they couldn't get financing at all in any of these scenarios you are screwed to protect yourself from the yo-yo scam don't sign any agreement that includes language like subject to loan approval only drive a car off a dealer lot if you never have to go back that's our top 10 tips to watch out for in the dealership finance office and a bonus tip for those of you that made it this far none of the products or fees that I mentioned are required by any legitimate banker for any car loan and no banker ever reduces interest rates if you buy these products never forget that any banker working with any dealer knows that the number one responsibility of the dealer finance office is to make the dealer money and the dealer banks do everything they can to help them do exactly that you need to know that every day as consumers become more savvy on dealer tricks more ways to empty your pockets are being devised they train daily for consumers who are steadily getting smarter only the good dealers are honing customer service skills the rest of them are just developing ways to fool you don't ever go to a car dealer without having done your homework and don't ever believe that the finance man is your friend remember the two rules I mentioned in the beginning first you are not obligated to buy or pay for anything you are offered in the finance office no matter what they say including additional dealer fees and secondly the finance man is obligated by the owner of the dealership to sell you products to boost dealer profits everything you will hear out of their mouth is to make the dealer money it has nothing to do with protecting or looking out for you the consumer for those of you who are hardcore car shoppers and you want to pull an absolutely amazing stunt in the finance office here's a great suggestion bring in a pocket recorder and ask the videotape the signing of your papers you'll be surprised how fast you get out of that office and you'll hear a very different story the moment they realize there is no wiggling out of a con job the crooks in the car business would be gone a lot faster more consumers recorded what happens in that finance office if you are watching this video after the fact and you just found out that you got ripped off by one or more of these products the good news is that you can always go back and get them cancelled it's true get back there now and fix your car deal it's not too late if you have a specific problem or question not answered here please comment below we'll do our best to provide you with helpful advice and suggestions if you made it to the end of this video and you take the advice that I shared with you here I have just saved you thousands of dollars and a ton of headache on your next car deal thank us with a light below and remember to subscribe to the channel I'm Kevin hunter thanks for watching [Music]

Channel: Kevin Hunter

Views: 1,272,261

Rating: 4.8721924 out of 5

Keywords: Kevin, Hunter, Washington, calculator, News, 13, car, buying, mistakes, top, ten, tips, on, best, deal, scams, dealers, finance, office, shaka, dyson, 10 best car buying tips, advice, ally, capital, one, santander, regional, acceptace, corporation, wells, fargo, chase, space, coast, credit, union, us, bank, extended, warranty, warranties, GAP, insurance, under, coating, paint, manager, dealer, how, to, buy, truck, suv, auto, used cars, autos, mechanic, automobile, vehicle, shop, automotive, loan, loans, chris, fix, does, rip, you, off, rips

Id: WHDMLco9N8w

Length: 13min 51sec (831 seconds)

Published: Sat Mar 18 2017