A listener shares their successful car buying experience after following the host's advice on navigating dealership processes. Emphasizing the importance of knowing non-negotiables and avoiding pressure tactics, the host recounts how the listener prioritized the right vehicle over payment plans. The episode also highlights common pitfalls in car purchases, such as unnecessary add-ons and the importance of understanding paperwork. The host encourages listeners to be informed and prepared to negotiate effectively, offering a guidebook for further assistance.
"...they didn't come here saying, I want a Nissan Rogue or I want a Ford Escape. No, they just had a list of the things that were non-negotiables."
The Nissan Rogue is a type of SUV that is good for families because it has a lot of space and is easy to drive. Many people like it for everyday use.
The Nissan Rogue is a compact crossover SUV known for its spacious interior and fuel efficiency. It's a popular choice among families and individuals looking for a versatile vehicle.
"...they didn't come here saying, I want a Nissan Rogue or I want a Ford Escape. No, they just had a list of the things that were non-negotiables."
The Ford Escape is another type of SUV that is popular for its comfort and features. It's a good option for people who want a reliable car for daily use.
The Ford Escape is a compact SUV that offers a balance of performance, comfort, and technology. It's designed for those who need a practical vehicle for daily driving and occasional adventures.
"...we're selling every Nissan for invoice or below. And this particular one of the vehicles had a $5,000 rebate on it."
Invoice pricing is the price that car dealers pay to the car manufacturer for a vehicle. Sometimes, dealers sell cars at this price or lower to attract buyers.
Invoice pricing refers to the amount a dealer pays the manufacturer for a vehicle. Selling cars at invoice or below can be a strategy to attract customers, especially during sales events or to clear inventory.
"...this particular one of the vehicles had a $5,000 rebate on it."
A rebate is money that you get back after buying something, like a car. It's a way for car companies to encourage people to buy their vehicles by lowering the price.
A rebate is a financial incentive offered by manufacturers or dealers to encourage the purchase of a vehicle. It typically comes in the form of a discount off the purchase price or cash back after the sale is completed.
"...the selling price, the trade value, the taxes, any fees that are involved, registration fees and so forth, and a bottom line number."
Dealer fees are extra costs that car dealerships might add when you buy a car. These fees cover things like paperwork and preparing the car for you.
Dealer fees are additional charges that a dealership may add to the cost of a vehicle purchase. These can include documentation fees, preparation fees, and other administrative costs.
"...the selling price, the trade value, the taxes, any fees that are involved, registration fees and so forth, and a bottom line number."
The out-the-door price is the total amount you pay when buying a car. It includes the price of the car plus taxes and any extra fees, so you know exactly what you'll spend.
The out-the-door price is the total cost of purchasing a vehicle, including the sale price, taxes, registration fees, and any additional dealer fees. It represents the final amount a buyer will pay to drive the car off the lot.
"...the trade value, the taxes, any fees that are involved, registration fees and so forth, and a bottom line number."
Registration fees are the costs you pay to officially register your car with the government so you can drive it legally. The amount can change depending on where you live and what kind of car you have.
Registration fees are charges imposed by the government to register a vehicle for use on public roads. These fees can vary based on the vehicle's value, type, and the state in which it is registered.
"He had bought a Nissan Altima, and I won't say where, but he bought, it was a used vehicle and he had no idea what any of his paperwork said."
The Nissan Altima is a car that many people buy because it's comfortable and gets good gas mileage. It's a common choice for everyday use.
The Nissan Altima is a mid-size sedan known for its comfortable ride and fuel efficiency. It's a popular choice among consumers looking for a reliable daily driver.
"...he had no idea what any of his paperwork said. I've mentioned this on the show before, but you know, we print out all the paperwork at my dealership and go over it with the customer."
Paperwork is all the documents you need to sign when you buy a car. It's important to understand what you're signing so you know what you're agreeing to.
In the context of car buying, paperwork refers to all the documents involved in the purchase process, including contracts, financing agreements, and title transfers. Understanding this paperwork is crucial to ensure transparency and protect the buyer's interests.
"...they know what they're signing, but at a lot of stores, you don't know what you're signing."
Signing means putting your name on a document to show you agree with what's written there. It's important to know what you're agreeing to when buying a car.
Signing refers to the act of providing a signature on legal documents, which indicates agreement to the terms outlined in those documents. In car buying, it's essential to understand what you're signing to avoid any unexpected obligations.
"...but at a lot of stores, you don't know what you're signing. You're just, they just keep shoving paper in front of your face..."
A dealership is a place where you can buy cars. They help you with things like financing and sometimes fixing your car after you buy it.
A dealership is a business that sells new or used cars. They often provide services like financing, maintenance, and trade-ins, and it's important to choose a reputable dealership to ensure a positive buying experience.
"I said, did you know that you paid almost $1,000 for gap insurance?"
Gap insurance helps you pay off your car loan if your car is stolen or totaled and worth less than what you owe. It makes sure you're not stuck paying for a car you can't drive anymore.
Gap insurance covers the difference between what you owe on a vehicle and its current market value in the event of a total loss. It's particularly useful for those who finance or lease a car, as it protects against depreciation.
"I said, did you know you paid close to $5,000 for an extended warranty? No, what?"
An extended warranty is like insurance for your car that covers repairs after the original warranty expires. It can save you money on big repair bills, but you need to know what it covers.
An extended warranty is a service contract that provides additional coverage for repairs and maintenance beyond the manufacturer's warranty period. It can help protect against unexpected repair costs, but it's important to understand what is covered and the associated costs.
"One of the things you can do if you do buy a car and you buy a service contract for $5,000 and you buy a gap insurance for almost $1,000..."
A service contract is like insurance for your car that helps pay for repairs after the regular warranty ends. You pay a fee upfront, and it covers certain problems that might happen later.
A service contract is an agreement between a car buyer and a dealership or third-party provider that covers certain repairs and maintenance for a specified period. It can help alleviate unexpected repair costs after the manufacturer's warranty expires.
"...you have to talk. Well, sometimes they'll make you talk to the finance manager. Well, he's the guy who loses commission if you cancel that contract."
A finance manager is a person at a car dealership who helps you with money-related decisions, like loans and insurance. They might not want you to cancel something you bought because it affects their pay.
A finance manager at a car dealership is responsible for handling the financial aspects of a car sale, including financing options, insurance contracts, and warranties. They often earn commissions based on the products they sell, which can create a conflict of interest when a customer wants to cancel a contract.
The Cadillac Escalade is a large luxury SUV that is very spacious and has a lot of fancy features. People often buy it for its comfort and style.
The Cadillac Escalade is a full-size luxury SUV known for its spacious interior, high-end features, and powerful performance. It's often associated with luxury and status, making it a popular choice among affluent buyers.
Select text to request an explanation
Hey folks and welcome back to another edition of My Car Guru.
I absolutely love it when somebody who has listened to the program for a long time finally gives
me a call or sends me a text.
I can't remember whether this one started, I think it started with a text, yeah.
We went back and forth a couple of times and finally they wanted to come down from
the big city of Elizabethan.
Now if you live someplace else in the United States or on this planet, you would probably
call it Elizabeth Tun.
But this is East Tennessee, so it's Elizabethan.
The emphasis is on Beth, but yeah, they came all the way down from Elizabethan, I'd say
probably 45 miles and came to Greenville and we sat down, I met them in the showroom,
we sat down at a table.
And folks, they did this deal exactly like I've told you how to do a deal when you go
into a new car dealership to buy a car, whether it's new or used car dealership.
You lay the rules down early on, you want to do it your way, not their way.
Their way is designed to maximize gross profit and well, two goals basically.
To sell you a car today, even if you're not ready, and to maximize the gross profit that
they make on the deal.
And they do that with disinformation many times and subterfuge.
You know what that means?
I'm not really 100% sure, but I think it means not being straightforward, not being
transparent.
You want both of those, right?
I mean, the reason he said he came down is he just didn't want to play the games.
And he's listened to me long enough to know that I don't play games.
That's just not how I do things or my people.
We're not that kind of a business.
And a lot of car dealers are.
Most aren't, most do it pretty straightforward, but still, they want you to follow their
process.
And what I try to teach people to do is you follow my process and you'll always get a
better deal.
So in this particular example, and I'm not using any names, they had been in the same
car for a number of years, quite a few miles on the vehicle, been a decent car, had a
few issues with it, but wanted to buy something new.
It's time.
And so they had a list of all the features that they were interested in.
They didn't pick out a car.
They didn't come here saying, I want a Nissan Rogue or I want a Ford Escape.
No, they just had a list of the things that were non-negotiables.
That's exactly what I tell folks to do.
Know and understand what your non-negotiables are.
Make the salesperson sell you a car.
When I say sell you a car, what I mean is to do a full product presentation, go
on a test drive.
You know, we call it a walk around.
That's where you open the doors and open the rear hatch and open the hood if
necessary.
I've always opened the hood for my customers.
I don't know whether my salesperson did with them or not, but that's just
something that, you know, you want to show them what they're getting for
their money.
I mean, if you go to a, I don't know, let's say you're buying one of
those DR Horton homes and they have a model home and you go in and you
look at it.
You say, well, I like this color siding and we need this much square
footage.
We need three or four bedrooms.
You know, you tell them everything that you want and then they take you to a
model and show you what it looks like when it's all finished.
That's the walk around.
I mean, you get to see how everything works.
Now, I mean, you don't really take a house on a test drive, but I
guess it's a combination of the two, but you always drive the car.
You know, one of the things that this gentleman noticed about this
vehicle, I had him test drive three different things that I thought would
fit and, you know, they really liked one.
They liked the other one, but it just wasn't right.
As far as visibility is concerned, then they drove a third vehicle that I
thought would be a really good value.
It was more expensive.
So they've got three good options in the right color for them to look
at and analyze.
That wouldn't have happened at most dealerships.
What happens at most stores is they take you to where the vehicles are out there
and they don't sit down with you and talk about anything until you've
already selected a vehicle out there in the lot and they're fishing to find
out if you're a payment buyer or not.
Because that will dictate the way they present numbers to you.
I don't care if somebody's a payment buyer.
I want to make sure that they get the right car for them first.
Is that not the most important thing?
Is the amount of money that you're willing to pay per month the most important thing?
I'm not saying it's not important.
It is.
I mean, it could determine whether or not you buy the vehicle if you can't get
a payment that fits your budget.
But what if you get a payment that fits your budget and you hate the car?
You know, 90 days after you've bought it, you're saying, honey, what have we done?
This is totally wrong for us.
I told you we needed a third row seat.
You know, but most people don't do that.
They buy the payment.
These folks weren't buying a payment.
That's not the way I roll, as I like to say.
No.
No, let's pick out the right vehicle and we'll make the numbers work.
If the numbers don't work, then you move on, right?
You just don't buy the thing.
You go home and think about it.
So they test drove all the vehicles.
They sat down.
I went over, printed out.
Well, basically, we looked at their trade into.
We did an evaluation on their trade.
I go to my sales manager.
I said, OK, structure the deal this way, which right now we're selling every
Nissan for invoice or below.
And this particular one of the vehicles had a $5,000 rebate on it.
I thought that would be something worth considering.
So I printed out two separate buyer's orders or sales contracts, broke down
all the selling price, the trade value, the taxes, any fees that are involved,
registration fees and so forth, and a bottom line number.
And you know what he said to me after I presented those numbers to him?
He said, well, you know what I'm going to say next?
I'm going to go home and think about it.
I said, you have been listening to my radio show.
Because that's the smartest thing that a person can do.
You know, unless they've spent, I don't know, hours and hours looking at the numbers
and they're already prepared to buy something, they don't need to go think about it anymore.
Thinking about it is just creating additional stress.
I get it.
But there's too many people that haven't thought about it.
It becomes an emotional purchase rather than something that's logical.
And they end up making a bad decision.
And you know what the most gratifying thing is to me as a person, as a businessman,
as a podcaster slash radio host is that these people didn't just hear me.
They actually listened.
They actually absorbed the information and they're using it.
And if most people would do that, you know, if you don't have time to listen to the show, fine.
Get a copy of the My Car Guru guidebook.
Make copies of it yourself.
It's, I call it a guidebook, but it's actually 32 pages of information on a PDF
if I send it to you, to your email.
And all you have to do to get it is send me your email address to 423-552-2020.
And then you don't need me.
You just need the book.
And if you read it, absorb it and use it, you will save money.
There is no doubt because you're laying out the rules because these dealers,
you know, you go to the wrong one and it's pressure, pressure, pressure.
And you end up paying more for the vehicle.
You don't really know what you paid for the vehicle when it's all said and done.
I've seen it a bunch of times, people come in here and they, you know,
they finally come in to talk to the guru, say, can you help me get out of this?
I said, sir, I'm sorry.
I could have helped you get out of it before you signed the paperwork.
But now it's just a little bit too late.
Here's what you can do.
I'll talk about some of the things you can do if you feel like you've really
been taking advantage of.
I'll be back in just one minute.
Okay, so one day I got a phone call from this elderly guy and he said, can I come in
and talk to you?
And I said, well, sure.
So I didn't know exactly what it was about.
I didn't know if he was coming in to, you know, complain about some kind of a situation
he had at my business or if he was going to try to sell me something, wanted me
to donate to some type of a civic event.
So come to find out, he wanted to come back into my office and sit down and talk to me
about how he could possibly get out of a deal.
He had bought a Nissan Altima, and I won't say where, but he bought, it was a used
vehicle and he had no idea what any of his paperwork said.
I've mentioned this on the show before, but you know, we print out all the paperwork
at my dealership and go over it with the customer.
They know what they're signing, but at a lot of stores, you don't know what you're
signing.
You're just, they just keep shoving paper in front of your face and you keep, they
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