CarEdge Live Q&A | Episode 909

This winter, know what your vehicle needs before it needs it.

Visit your GMC-certified service center

and ask for a multi-point vehicle inspection

and take advantage of stackable rebates.

See dealer for complete details.

Multi-point vehicle inspections vary by participating dealer.

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It's noon here in Ventner City, New Jersey

and our nation's capital, Washington, D.C.

And this is Car Eng Live for Friday, August 22nd

with your hosts, me, Ray, here in,

well, it's dry today, but there is the potential

for coastal flooding in Ventner City, New Jersey.

And well, my handsome young son in Washington, D.C.

And today's show is nothing but you get to ask us

whatever the hell it is you want.

Hey, I'm open to anything, ladies and gentlemen.

Feel free to just fire questions at will.

Yeah, that's the deal, folks.

We're just doing Q&A today,

friendlyremindercaredge.com.

If our team can help you out with anything, check it out.

And a friendly reminder, we are offering 20%

off Car Edge Insights and our car buying services.

We have an incredible team here

that serves hundreds and thousands

of customers every single month.

Please give us the privilege of trying to serve you.

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All right, so Onus is on the chat today, Dad.

Onus, I don't even have a question to kick it off with.

Well here, I started the first comment for you.

Collar and shirts, is everybody okay?

I'm having a pretty rough day, if I'm being honest.

How are you doing, Dad?

I'm having great, buddy.

I'm having a phenomenal day.

It is, I mean, literally,

I was sending pictures to my children last night,

like every 15 minutes or so,

showing how far the water was creeping

into the parking lot here at the condo.

Now I can honestly say, at a certain point,

the entire parking lot was filled with water.

I had never seen flooding this badly in the inventor.

I'm sure there's been times when it's worse,

but I had never seen it.

And as I was explaining to Zach this morning,

I was watching people kayaking down the street, okay?

Not in the bay, just down the street,

because, well, the bay was in the street,

and in our parking lot and other people's yards.

And yeah, it was, yeah, it was lovely last night.

So why are we wearing collar shirts?

It got chilly, okay?

It's 68 degrees in my apartment today.

Yeah, no, it's definitely the weather's changed.

Let's keep it moving here.

We've got from believe in yourself.

Will my manual transmission journey be shared

as a documentary?

We actually got to execute on that.

I feel frustrated with myself

because we talked about doing it and then we didn't do it,

which is like a bit of a thing that I'm dealing with today,

like talking about doing something

that then not following through with it.

I'm feeling frustrated right now about that with myself.

So if we do it, sure.

Oh, let's rephrase it.

When we do it, it's not if, it's when.

We just don't know when the when will be,

but when we do it,

we will definitely document it, ladies and gentlemen,

because I think that could probably make

some of the most compelling video

that we've ever produced here at Carriage,

especially me fearing for my life, as I'm saying.

No, the clutch, the brake, the gas, use them all,

buddy, use them all.

Sounds like we're doing it, folks,

but I got to figure out how to make that happen.

Scuba Bob wants to know,

when's the next Mazda hybrid coming?

Like the press vehicle, is that the question?

I would think that's what the question is.

I don't know.

I don't think we have anything lined up,

which is a bit of a bummer, but that's okay.

I'm sure we can reach out to them and ask,

hopefully, they'll give us more press vehicles in the future.

XRP wants to know, do you guys look for a 7% to 10% discount

from MSRP?

Totally depends on the vehicle.

So it's totally vehicle dependent

and region dependent, right?

It's vehicle dependent.

It's regionally dependent.

It's brand dependent.

You can look for a 7% to 10% discount

from MSRP on a Toyota.

My guess is you ain't getting it on most of them,

whereas you can look for that 7 to 10

or greater discount on, say, a RAM pickup truck.

And I would guarantee you would get that more.

So it really is brand dependent and regional dependent.

Yeah, we have backoncarage.com on the car search,

target discount, which is the percent or the amount

that you should get as a dealer discount

from any vehicle you're searching for.

So check that out back on the website.

We've got this question, Dad, that just came in.

What is a non-tax fee?

A non-tax fee is typically a state fee.

And for instance, the state title fee,

the state registration fee, sales tax itself.

You don't pay tax on sales tax.

You don't pay tax on your title and registration fees.

Now, it's incumbent upon you as a customer

to go to your website, your motor vehicle website

for the state and find out exactly what the fees are

that the state charges.

Because I'm not going to sit here and suggest to you

that there are dealers out there

that don't inflate the state fees

in order to pick up extra money

because they figure you don't know

and you're never going to check.

And so if it's $132 to register the vehicle,

they might tell you it's $232.

And that extra $100 bucks is going to them.

So you need to check at your state motor vehicle website

find out what the title fee is

for titling a car or truck,

find out what the registration fees are.

And those are non-taxed fees.

Nice.

Good stuff, Pops.

Appreciate that.

As always, we've got here from Road King.

Pops, I felt leases.

How do we know what the residual value is

before negotiating?

Well, the residual percentage is set

by the leasing company.

Which we have on our lease calculator,

which is free.

So you can use our lease calculator

and it shows you the residual value.

So just Google search lease calculator car edge

and it shows you the residual value there.

Also, the dealership will share

the residual value with you.

They have to.

I mean, if you tell them that you're interested

in the lease and whatever model it is,

you can say, well, what's the residual percentage

for this vehicle?

It's published and set by the leasing company.

So it's not a negotiable item, okay?

So if, and I saw a comment earlier today

when I was reviewing some of the comments

from yesterday's show.

And somebody asked the question,

well, isn't the residual value

based against the manufacturer

suggested retail price of the vehicle?

It is indeed.

That's where it comes from.

So if a car has has a $40,000 MSRP

and it has a 25% residual,

that means that $30,000 is the amount of depreciation.

And the customer's question was

or the commenter's question was,

well, but why would I want to negotiate

a lower price on the vehicle?

Well, the lower price you're negotiating

on the vehicle means the cost

to the leasing company is less.

And so if the car has an MSRP of $40,000

and a 25% residual, there's a $30,000 spread

for depreciation.

However, if you're buying that $40,000 MSRP

for $35,000,

well, suddenly there's only $25,000 in depreciation

from the selling price,

which would end up lowering your monthly payment.

So that's the residual set by the leasing company.

Leasing company, the reason you negotiate the prices

so that you can lower the cost to the leasing company,

which ultimately lowers the monthly payment to you.

Leasing is obviously more complex

than just financing a vehicle.

So again, Google search, leasing guide,

car edge, and we have all sorts of materials like that

that can assist you with that information.

That we've got here for For the Love of Rides

I'm on the car edge website right now.

I see the email template for requesting

the out-the-door price for a new vehicle,

but is there a template for used vehicles?

It's the same deal, same deal.

You're just asking for the out-the-door price,

all taxes, fees, things like that.

Butting the dealer, no, you're gonna contact

other dealerships too, you know, you're a savvy shopper.

So that information should be the same

between new and used vehicles.

We've got here, Dad, from Ray.

Following up on leasing,

EV always leased rather than by?

These days, the amount of depreciation

associated with EVs at the moment

is astronomical in comparison to most ICE vehicles.

Now, the caveat to that is if you are planning

on keeping that EV for seven, eight, 10 years,

then buy it.

If this is your first foray into an EV

and you wanna take a 24-month or 36-month travel time

to see if you like it, then that would be the way to do it.

So, and with the amount of depreciation there is

and the artificially high residual values

that the manufacturers are offering,

a lease is much, much cheaper.

And at least it gives you the opportunity

to experience an EV for 24 or 36 months.

And if you decide after that time

that that's what your future is, then buy the next one.

But the first one, I would lease it just to make sure,

A, you're comfortable with it

and you like it enough moving forward.

And B, you're not the one that's paying

for all that depreciation.

Pops from Joe here.

We're sticking on the lease theme,

lease versus certified pre-owned pros and cons.

I'm not sure how you can compare leasing.

You can't, they're two different things.

One is your CPO is a certified pre-owned vehicle.

Typically, you would purchase those, not lease them.

There are some lease deals that might be available

on some CPO vehicles.

But a CPO just stands for a certified pre-owned vehicle.

If you are looking at a certified pre-owned vehicle,

make sure it is a manufacturer certified pre-owned vehicle.

In other words, what I mean by that

is if you're at a used car lot and they have a used Toyota

and they tell you it's certified,

well that's a third party certification

which is completely different than say

what Toyota's certification program would be for a used car.

So you have to understand is it a third party program

or a manufacturer program and leasing

or it's not an apples to apples comparison.

From LT, what's the difference

between those non-tax fees you were talking about

before and a dock fee?

Those are totally different.

Oh, they are and a dock fee is taxable.

And so a dock fee is something you can try

and negotiate off of the purchase or lease.

Now, most dealers, if they will negotiate that with you,

will negotiate a reduction in the selling price

in an amount equal to or less than what the dock fee is.

But the dock fee will always appear on the buyer's order

and all the other documents associated with the deal

because they want to be able to claim

that everybody gets charged a dock fee.

So you can try and negotiate an equal amount

of the dock fee off of the selling price.

Absolutely, absolutely.

Let's keep it going here.

You think Chinese car brands will hit the US markets,

will they be a lot cheaper if and when they do?

We're getting geopolitical here.

Do I, do I, do I, you know,

I would think ultimately some year, some day,

maybe not my lifetime,

but eventually things make it here.

It is so hard to try and predict something like that

based on the current political situation

surrounding tariffs and worldwide trade.

So things are so, so much different today

than they were seven or eight or nine months ago.

So it is hard to imagine that we will see Chinese imports

in the United States anytime soon.

Would they be cheaper than comparable Asian brands,

Japanese brands, Korean brands or domestic brands?

You bet your sweet ass they will.

You know, even if the government of China

has to underwrite it, you know they will.

It's just, you know, that's the reality of the situation.

If they're going to enter a market,

they're going to enter it by having a huge price advantage

over everyone else.

Yeah, absolutely.

Dad, you've got to hear from Eric.

Is the best time to buy a used car now

or wait for prices to go down?

Used car market doesn't seem like prices are going to go down

anytime soon.

Macro sentence, you know, macro sentiment,

they're like, used car prices are just higher

than they've typically done,

but what do you make of this question?

Here's the best way I can answer that question.

If you can find a pre-owned car today

that you like at a price that works for you,

buy the damn thing, okay?

If you think you're going to time your purchase

perfectly as to when prices are either going up or down,

I guarantee you you will be wrong, okay?

You might be close, but you'll be wrong.

And so the concept of a pre-owned vehicle

is they are one of one.

Yes, it could be a Toyota Camry

and there are hundreds of thousands of Toyota Camrys,

but no other Toyota Camry was driven

and maintained the way that particular Toyota Camry was.

So if you find a used car that you like

at a price that you're good with,

just buy the damn thing, either that or I, you know,

just sometimes you just move forward and buy the damn thing

and put yourself out of your misery

because this is never really going to get better and better.

And it's as good as it's going to be for the time being.

If you find that bargain that works for you, just buy it.

This winter, know what your vehicle needs

before it needs it.

Visit your Buick Certified Service Center

and ask for a multi-point vehicle inspection

and take advantage of stackable rebates.

See dealer for complete details.

Multi-point vehicle inspections vary

by participating dealer.

Hi, I'm Andrew Yang.

You may remember me as being the guy

you wanted to get money into the hands

of millions of Americans.

Well, I'm still at it,

and I'm now the founder of Noble Mobile,

the first carrier that pays you to use your phone less.

With Noble, you get unlimited talk, text,

and 5G data on the team mobile network,

and you can earn up to $20 cash back a month

for getting off your phone.

Try it for just $10 a month.

Go to noblemobile.com slash yang10.

That's noblemobile.com

and use my code yang10 to get paid

to use your phone less.

From Namrette, it seems to me

that the down payment of cash that's required for a lease

sort of nullifies the benefit of a lower price.

Is that true or not?

Well, the down payment that you see advertised on leases

is to lower the selling price of the vehicle

to the lease company, okay?

And they're counting on you to do that

rather than you negotiating

a lower price of the vehicle for the lease company.

And the reason they use cash down like that,

you know, where they say it's $39.99 down,

that's so it can fit into that cheap payment

they're trying to advertise.

Remember this, on a 36-month lease,

every $1,000 equates to about $30 a month

CarEdge Live Q&A | Episode 909

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