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I’m in the process of looking for a car, and I’ve found the YAA videos to be both entertaining and enlightening. Zack, Ray, Lauren, Kim – all are great characters and play their parts quite well, and have taught me a lot.
Thank you for sharing your knowledge!
Our dealership also owned 5 other dealerships. Our aging vehicles would be rotated between our lots to refresh the lot inventory. Sometime it just needed a fresh city, a fresh salesperson, and a fresh market. We rarely had aging models. We were also paid extra for the older model so there was motive to move them.
That’s actually how I ended up getting a good deal before. I shopped around for months and kept seeing the same car at the local Ford dealership. The salesman who was a cool guy realized I was an actual buyer and got the car reduced about $3,500. The Mustang was really nice EXCEPT for the graphics package and striping, It looked hideous. The salesman told me that it happens sometimes that Ford would do bizarre exterior/interior color combos or add random things like graphics onto a car for better or worse.
He told me A LOT of people would look at it but just couldn’t get past the exterior and if I’m interested that he’ll go to battle for me. I got a great deal and I ended up taking the car to a local tint and performance shop. They were able to safely remove the graphics for a few hundred dollars. WIN!!!
Thank you for being so transparent. I wish dealers were this forthcoming with this information. A few weeks ago I declined to purchase a used Cadillac because the OTD price we got had the vehicle priced $3k higher than when we first looked at the car. They also added about $6k in additional fees (like “closing cost”) on top of the markup. We asked that the price be reduced to what we discussed on the test drive. They wouldn’t budge on the price. We walked away. The car has been in their inventory for 60 days now. The price is still not moving so I’m wondering if this is one of those dealers that holds onto cars forever while waiting for the perfect buyer that’s willing to pay their price. They do market based pricing but what is that even worth if in the end they don’t have any buyers for that car? The car isn’t getting any younger so the value will continue to drop while it sits on their lot and they refuse to lower the price by any means.
There’s a sucker born every minute…PT BARNUM
I’m glad to see that this model of buying cars is on it’s way out. Dealing with car salesman is one of the worst experiences an individual could go through in life that will make most people question their faith in humanity.
What other way is replacing it? Besides Tesla, every other manufacturer still requires you to go through a dealership.
@Tony CJ Tesla is direct sale. They already tried to spend and probably still spending millions of dollars discrediting Tesla, but obviously it’s not working. If legacy auto manufacturers want to be more competitive or at this point, survive.. they’re gonna have to adopt to Tesla’s model. Not just direct sales either, but vertical integration of in-house parts manufacturing as well.. and not to mention $0 on advertising.
In the near future we’ll see a fight between Legacy auto manufacturers vs. Auto dealer.
I think the question is how deep the pockets are for both parties to spend on lobbyist in getting the laws amended or sustained.. but I think we already know what the outcome of that fight will be.. if it does happen.
I would love to be able to buy a car direct from the manufacturer, but the dealership model as we know it now is going nowhere fast. Tesla is a nonfactor when you consider that the other 99.5% of new cars sold are from major manufactures using the dealership model.
@Emil Emilio as much as I’d like to agree with you, I don’t see the dealership system going away anytime soon. There is strong opposition in many areas. Just as an example, Texas did not allow Tesla to sell directly to consumers. They had to setup a dealership network. I haven’t looked into the specifics, it’s likely a hybrid. But the point I’m making is that the dealership network isn’t going away soon.
I avoid that by getting my cars in the private used car market. Works out well for me.
Thank you for this advice. We recently bought a Subaru Legacy and by asking for the oldest car they had with the color and options we wanted we got an extra $500 off the price.
Just $500?..
I hauled cars for many years (Found a better driving gig with 1/10th the work and the same pay!) both new, secondary out of auction yards and “POV’s” and what you infer about the secondary market is very true. Most people have no idea how large the volume that a major ADESA or Mannheim lot will go through in a month. Having said that, there is certainly a massive backlog right now, but that will pass, just as it did in 2008/09. Nicely done video. Succinct, accurate and to the point. Kept my interest. Well done, sir. Well done indeed.
Thank you, sir!
What is your better gig?
Your idea of giving a higher commission on the oldest cars was genius. Well done !
No it is not. The car should have been sold long ago.
Great vlog and appreciate your time. With current values for vehicles declining, crazy dealer incentives and sales everywhere, I wonder if the notion of vehicles being a depreciating asset still stands in this type of economy? Not to mention a lot of people financing new vehicle loans with no gap insurance, and a rise of car insurance companies only wanting to cover base vehicle value in case of total loss accident.
Thanks for this. You seem like a decent guy, and a master of the soft-sell. It’s nice to see a guy who doesn’t fit the stereotype of the scumbag car salesman. Despite what the popular perception is, a higher percentage of car buyers are probably scumbags than are new car sellers.
These are definitely the best deals, even better if the brand has just released a face lift since the price of the old version will drop like a rock.
Thanks, that is an interesting strategy for the negotiation toolbox. I do doubt whether a dealer would disclose whether they have any “new-old” inventory. They would just deny that they have any and attempt to sell every new vehicle as “We just got this one in.”
I wouldn’t. I’d tell them right up front that this was an aged unit and it had to go. This would get them excited about a good deal and they would be right. If the desk takes the deal, even at a loss I’m happy because there’s always bonus money on moving that unit.
We had a local dealer who owned several new car lots. He always paid cash for his new cars. I once saw a “new” F-150 that was about 2 model years behind. Since he wasn’t paying interest he didn’t have to steeply discount his vehicles that didn’t sell quickly. I understand that’s very unusual for dealers not to finance their inventory.
I’ve also seen dealerships “trade” between themselves. I had a very specific set of requirements for a new Jeep Wrangler. It had to be a specific color that was rare and also it was the last year of it. I had options I was adamant about. My salesman found a dealer a few hundred miles away and traded one they had in stock for the one I wanted. Best Jeep I’ve ever had so far.
Happens all the time. They place their orders from the manufacturer based on (somewhat) educated guesses about what will be popular in their particular market. But they can’t order every possible feature/option/color combination. So when a customer comes in with a specific set of requirements, they’ll try to find it at another dealership and either buy it from that dealership or trade something out of their own stock for it. Happens every day.
Hey appreciate the Great Insider tips! Whenever I’ve bought in the past from a dealer, whether it’s a car, boat, rv or travel trailer, I wait for the fall to winter time of the year and they’re really pushing the next year’s models! And I actually use your technique, I tell them I want their oldest “whatever” from the current year or shoot, if they’ve got a basically brand new, last years model, I want to see that first lol sometimes you get the sales person who doesn’t listen and wants to take advantage of your high credit score, or the monthly payment that the bank says your credit score will allow. That’s not what I look for, I figure out what my budget and the max I will pay for the average length of a loan. Actually my personal finance department does lmao my wife!
I’ll be watching your channel for ALL Your Inside Information, thanks again!
Thanks for the kind words and for watching. Stay safe, Ray
I worked at a dealer that used the push/pull idea. As part of the car pack, either new or used, there was x amount of dollars that was allocated for the oldest vehicle which would benefit by lowering the cost of money in that vehicle.
Great video, I somehow never thought the dealers paid outright for the car, I thought they got a commission on selling them. So lots of dealers must have massive loans for these cars. Having said that,I just bought a Jaguar I-pace with 3500 miles 14 months old without a mark on it and it was £21.000 cheaper as they wanted to move it on. Yes I’m in the UK.
In the US they pay a consignment fee each month which is 1% of the MSRP of a vehicle. So if they have a car that sells for $45,000 they will need to pay their bank/flooring company $450 each month until that car is sold. Just imagine if they have 100 or 200 new cars on their lot all the time. That is why they want cars GONE as quickly as possible. Especially towards the end of the month.
Well what do you know, there’s an honest car salesman after all. Thanks for sharing this information. ????
I always wondered what the difference was between used and pre owned.
Used means someone had used the car. Pre-owned is abit different someone had owned the car.
Thank you . There are so few people out there that can really help you when it comes to cars . I have been taken more than once . In fact I hate buying cars . It should be something that brings a person great joy but not me . Thank you again from TN .