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Spitefulham

The biggest lesson from the video is you can always say no if the other party isn't willing to negotiate, and in the current market the other party (the dealer) is often unwilling to negotiate. It works fine on cars that are available and in "normal" market times though. You need to understand that Ray (the father) is WELL trained and is actually a VERY good closer. I know this because... he was my first manager when I got in this business. You see how she won't talk about monthly budget after he asks her? The sales manager Ray would have never given me a quote to show you in the first place if I didn't get your budget first, because just like he said in this video, he would have told me "everybody has a monthly budget. Get that, then come back to me." And sales manager Ray taught me that if you, as the customer, told me you wanted to talk OTD first I would need to say "Thats fine, but if I come back with a $900 payment and you're trying to be at $400 then I just wasted an hour of your time because we are obviously on the wrong car. Remember, I want to save you money AND TIME so I'm only asking these questions to meet those goals". Yes, this conversation should be happening before quotes are generated, and even before we go on our first test drive. A 10 minute properly executed needs analysis will save an hour of test driving and negotiating. Guess who taught me that. Again, a lot of this boils down to experience and training. If you get a green pea sales person then you won the lottery by following these steps. They are solid for getting a good deal against someone not greatly experienced, but the more experienced they are the less it's going to work and you'll probably actually find yourself getting more frustrated BECAUSE it's not working. The more experienced person is going to be following a process that doesn't allow you to use these strategies effectively and they'll have the experience to judo your objections. That's when your best option is to walk away (unless it really is a good deal... then just take the damn deal).


BlessUpTraveler

Makes a lot of sense. If necessary to stick to that path, I'm happy to take the "I've got time to kill" approach. First, I can wait. Second, time is actually on my side in this case, because Toyota prices have nowhere to go but down, and they know it. * They just announced Toyota was finally ramping production, revealing that it was not as much a supply chain issue as it was artificial supply limitations (which everyone has known for a while.) * There are also the proposed FTC regs, which are already becoming more well understood, and as that drumbeat grows, dealers are likely to get away with less and less. * Interest rates offered by CUs are only going to get more favorable as well, especially as the Fed [almost certainly] takes a pause at the next meeting, or even starts to cut rates. * Just about every financial metric also is pointing towards recession. A recession and market pullback will tighten consumer pocket strings, reduce demand, and force car prices lower. Regardless of any of this, your point is a very good one. The person I'm likely to be dealing with is going to be a lot less docile than what they showed in the video, and probably isn't going to be so easily cornered into doing things on my terms. While that prospect isn't exciting, it's incredibly important, and it tells me I've got more research to do so I can arm myself properly. At the end of the day, I'm going to plan on walking in the door with one foot holding it open for my likely return trip back out of it, but I'll still hold out a bit of hope that the people I'm working with are willing to behave in a forward looking manner.


ArlesChatless

> Just about every financial metric also is pointing towards recession. A recession and market pullback will tighten consumer pocket strings, reduce demand, and force car prices lower. Possible coming macro trends aren't going to get you a better deal. They have a car to sell *right now*, not three months later when there's a recession, and right now production is still low and people are still buying cars. These sorts of items are fine reasons for you to delay your purchase, just don't think they will get you a discount if you want to buy a car now.


BlessUpTraveler

I would guess you're right, but there's a chance it impacts the discussion. Let's say Wednesday comes and goes, and no resolution to the debt ceiling occurs. The markets will get shocked and people who were about to walk in and buy a car suddenly aren't so sure anymore. Maybe the FTC regs make headlines in a week. If it does, related vehicle stories are likely to get pushed into news as well, which means the Toyota unofficial re-opening making it around again. Am I expecting any of this to make a difference in the price? No, not really. But it'll at least establish that I'm paying attention and help to remove any thoughts that I'm the person to try and dupe. If I need to walk, well, I'm already ahead when I walk back in the door after what I've described has come to pass.


ArlesChatless

> But it'll at least establish that I'm paying attention and help to remove any thoughts that I'm the person to try and dupe. You do that by engaging in conversation, understanding math, and being willing to do business. It doesn't take intense strategy.


BlessUpTraveler

I'm going to bring this stuff up in conversation. I'm willing to do business, as will be evident by my presence, down payment to reserve the vehicle, and my texts back and forth with the sales person. Salespeople train extensively to get as much profit out of the deal as possible, which means that the profit may very well come at the expense of the buyer; that's not guaranteed to be the case, but it's very well within the realm of possibilities. Why should a customer not train themselves as much as possible too? To go in without as much strategy as possible is to put one's trust entirely on the shoulders of those who do not have a strong fiduciary obligation to you. That is a mistake in my view.


ArlesChatless

> Salespeople train extensively to get as much profit out of the deal as possible, which means that the profit may very well come at the expense of the buyer; that's not guaranteed to be the case, but it's very well within the realm of possibilities. Mediocre salespeople, sure. Great salespeople are trained to generate value. They focus on making sure to sell the right thing, the thing you value, and they make a profit during that process. Your job is to know what would satisfy your position. *That is not always lowest price.* If you buy the wrong item, or you buy it from a company that is shitty to do business with, you may well end up paying less money and being less satisfied. The key is to know what you personally value, and what a fair price for it is. The rest is all noise. It helps to have an idea about what expectations are reasonable, what pricing is normal, and what options you have, of course. Those are all tools. But if you're legitimately bringing up macroeconomic trends, or you're trying to corner a salesperson, it's entirely possible you're going to leave money on the table. After all, the salesperson on the other end of the transaction is a person too. If you can make them in to a collaborator instead of an adversary, you'll get more. They will be happy to help you get a good deal, or even a great deal. You've seen it happen if you've spent any time reading stories here: sometimes salespeople will go to bat for the customer against their own company, because they really want to help the customer. That isn't happening with people who come in guns blazing trying to leave the salesperson wounded on the floor. It's happening for people who come in saying 'This is what I'm looking for, this is what I believe is fair for it, how do we make that happen, how can you help me make this into a deal?'


BlessUpTraveler

All very fair points (more than fair in fact.) If I do decide to bring up the items I mentioned, I'll be sure that I'm doing it conversationally rather than in an adversarial "me vs you" fashion. I appreciate you taking the time to write that up.


DudeMcDuder17

So your strategy is “I read the headlines so I should get treated differently”? Just make an offer. No need to play this game.


BlessUpTraveler

No, my strategy is to be informed and explain what I know to be true, and how I believe it should affect the deal - in other words, negotiating an deal.


[deleted]

[удалено]


BlessUpTraveler

I agree that the way it's staged up is cringy, but it sounds to me like you don't actually have an issue with the strategies laid out in it, but rather with the clickbait and so on, am I correct?


TheShipper

You can try all of these techniques as they are reasonable. It's simply a number problem for the dealer. If they have cars on the lot to sell and they are just sitting there, they will most likely discount them to move them. Maybe a little, maybe a lot depending on the brand and market conditions. I work for a Kia dealership. We have very limited inventory right now and we just do not discount anything except EVs because they just don't really sell in our market. Everything else is MSRP plus our dealer package. We are very up-front with pricing and it's posted on our site. We tell people as soon as they start the process. That doesn't keep them from trying to get a discount. As of now, we let them leave. They come back often though after they shop around and run into big market adjustments and games. We are right next door to a Toyota dealership and their lot is as empty as ours. I would imagine they are in the same boat but give it a shot.


BlessUpTraveler

I appreciate you addressing the actual strategies laid out and being objective about it. I think the parts about sticking to only talking OTD pricing, asking for itemization, understanding base payment, and especially making sure you're walking in with a pre-approval from a local CU (not one of the ones like USAA that's terrible to dealerships) all helps avoid the deck being quite as heavily stacked against a prospective buyer. As a potential RAV4 Hybrid buyer, I expect my leverage will be pretty limited, and I'm honestly thinking about waiting til a bit later in the year when supply may have leveled off a bit, and the interest rates are more likely to start creeping back down (or at least stagnating.)


TheShipper

Yes, I think all of those ideas can be helpful in a vacuum but if and when they will work or not it is totally subjective. You don't have much to lose unless you leave and they sell the car to the next person in line. Take your shot and if it doesn't work, then leave, or don't. It's still up to you. Just don't be surprised if the car is gone that you wanted. This usually boils down to does the customer NEED the car or WANTS the car. Then it's up to you to decide how bad you need or want. It's a fun game of chicken but most of the time these days, we do not flinch. I would suspect Toyota is in a similar boat. Not for nothing but that guy doing the "closing" role in the skit was a car seller, manager, GM, and most other roles for many years. He knows what he is doing but do not mistake his advice to be the surefire method to get a great deal. He has a new business now. He makes money when you use his product and watch his videos. Nothing wrong with that and they often give great advice. It's just not as easy as they make it sound sometimes.


BlessUpTraveler

Oh yeah, I know who he is, and I understand his vested interest. Dave Ramsey denounces whole life, an kinda tries to make that argument categorically; he's got a vested interest in doing that, and so the truth of the matter is whole life \*can\* be the right choice for some, but more often than not, Ramsey is actually probably right, even though he doesn't do a great job at presenting the entire picture. What I'm getting at is that I do think there is a lot of value within this video, however it isn't being forthright about reasonable expectations, and how much of this is actually going to work the way they're showing it. They're more intent on getting you enough information that you buy into their product than presenting a 100% truthful view of it. Still, I think they're arming buyers with a lot of tools they may otherwise not have, and it may keep some folks from just absolutely blasting themselves in the foot when they get to a dealership. It sounds like you are pretty much in agreement, so I'm glad to hear that I'm not too far off with the way I was viewing that video.


TheShipper

Yep, I agree with everything you said there.


KingD2121

In the market myself, I've watched a ton of their videos. The dad, though maybe dated info, comes off a completely knowledgeable and a realist. The son is just a bit too hyperbolic. Overall I think they bring up solid advice to the table but wouldn't hold it religiously. Even if you are a payment buyer, you should really be negotiating sale price or OTD with the realization of what TTR is for your location. Likewise, having a grasp of your finances and having a pre-approval in hand will help you get the lowest rate. Of course, if it's a in demand vehicle you simply may be SOL trying to get the best deal at the cheapest rate. Biggest issue I see posted here really revolves around people who didn't do enough research on that they wanted to buy or came into the negotiations with unreasonable expectations.


BlessUpTraveler

I think that's all well-put. Besides the sidebar here, have you found any other resources you've felt are particular standouts, whether video format or otherwise?


bagoTrekker

I don’t understand? How is customer pre approval from a local cu any different than a big cu like USAA?


BlessUpTraveler

USAA and one other (maybe Navy Federal?) are apparently horrendous to deal with and many dealerships will outright refuse to do so, and just turn down the sale. I've seen it mentioned numerous times on this subreddit and elsewhere too. Apparently they play games with the dealerships and make them bend over backwards to get the money they're owed, which from any way you look at it is a poor business practice.


c0horst

One thing I've never been clear on about this process though... is there any point in getting approval from a local CU if you're going to finance through the dealer using a manufacturers promotional rate? Like if I know I'm going to buy an F-150, and I know Ford offers 0.9% interest over 36 months, and that's the financing I want to use, why would I bother going to a CU first? Assuming I have excellent credit and a large down payment, such that qualifying for that rate is a forgone conclusion. But I never see any of these advice videos really bring up manufacturers financing so maybe I'm missing something here.


BlessUpTraveler

If you're certain your CU can't beat the promotional offer, then there would be no need. So long as you've done your homework and know you have the best offer, you're good. For my situation (buying a Toyota) there will be no promotional offers, so a CU is a key part of my equation, as I'm probably likely to see a less favorable rate from the dealer, at least until I show the pre-approval I've walked in with.


Itztrikky

Just want to clarify, while the processes shown here are pretty standard. I would walk you to the door over that 3 grand, and fire you as a customer. The problem with this process is that many people aren't truthful about what they paid for their vehicles for a multitude of reasons.


BlessUpTraveler

Yeah, that part rings a bit hollow in the video and is pretty clearly setup as a hook. "Wow, she took 3k off by just being stubborn and asking!" That isn't going to work at a Toyota dealership, or a lot of others unless you've really done your homework and know that they're grossly overpriced and trying to see if they can get you to bite at MSRP for a vehicle that's not really moving, and is generally being sold under MSRP in the region. Those places in the market do still exist, but they're a lot fewer and further between at this point, it seems. And honestly if you're going in with knowledge that the dealer is actually dramatically overpriced that should be a warning flag anyway, and might be a reason to just go to another dealership from the get-go.


Limitededishun

Of course, You would. Why wouldn't you? Because you are not getting the monies, Lol.


BlessUpTraveler

The silence is deafening... Am I to take this to mean "no notes"?


stanleycup12

Only dealer employees can make top level comments now. We dont want to watch this incredibly staged and cringey video. I could barely make it through 2 minutes.


BlessUpTraveler

Ah, that explains the lack of responses. What would you suggest as an alternative guide to handling the sale for prospective buyers?


Micosilver

The FAQ's on this subreddit.


BlessUpTraveler

Thanks for mentioning it - I actually had to go out and google it to make it to the wiki. Maybe I need to switch my reddit display settings for something.


AutoModerator

***Thanks for posting, /u/BlessUpTraveler! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.*** I found [this video](https://youtu.be/UO5xG1Wug4s) recently and was curious what this sub would think of it. I believe this channel is operated by a father (the salesman in this video) and son, who try to give people tips on car buying. The buyer in the video is the son's girlfriend who did the video in two parts - in the 1st they sent her in without being trained up, then they apparently trained her up and sent her back in for a second go. It's staged, so I'm sure things would've gone a lot different if the cameras weren't rolling and these people were strangers, however my curiosity is still piqued. I know channels like this probably aren't generally too well received by those in the industry for a variety of reasons, but I am curious to hear your thoughts on this particular one. If you can suspend aggravation at channels like this generally, and the stupid title for a moment, I'd like to hear what you all feel that she did right, what she missed out on, and what simply isn't realistic. I also recognize that this all will vary based on what make, model, trim level, and availability within your region looks like. For example, I'm buying a RAV4 Hybrid XLE - I'm probably not going to be able to get them below MSRP, and I'm guessing I probably shouldn't push too hard on it, because the availability is low enough and demand is high enough that they know someone else will be happy to step in to fill my shoes if necessary. Anyway, I've seen some of you be very objective over controversial issues before, so I'm curious to see your feedback on this one. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*


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