How to beat A Car Salesman
How to Beat A Car Salesman in Negotiation FROM a Car Salesman
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what is going on guys my name is chase
and welcome back to intelligent money
investing today we're gonna be talking
about something a little bit different
because I get a very valuable valuable
piece of information to share with you
guys and that's gonna be when the best
time to buy a car is when you're trying
to get a cheap price on it we know a lot
of people hate dealing with car dealers
these days because of the negotiation
process and a lot of people walk out
thinking they get ripped off so I'm
gonna tell you guys when you can have
the most advantage in a negotiation with
a car dealer how you're gonna do that
because I do have an inside track on the
knowledge of how a car dealership
operates my family is in car sales and
I'm also working for an auto company now
and we recently went on a dealership
tour when they're gonna giving us the
ins and outs of the sales process and
somebody asked one the best time to buy
a car is and to get a low price and they
kind of shared that information with us
because I am working for the company
Rick really quick before we get into
that I am hoping to do a Q&A video soon
so if you guys have any questions for me
at all drop them down those comments
down below to probably be featured in an
upcoming video I might wait a little
while till I get a good stockpile of
questions so I can make a good high
quality video for you guys but so just
drop those down below and let's get
right into this so the best time to buy
a car JIT I don't know get a low price
on a car from a car dealer so before we
get into that we really need to get into
some important factors about the car
that you're looking at so one of the
important ones this is what you're
actually gonna know is gonna be the MSRP
so that's gonna be the manufacturer's
suggested retail price that's the
sticker price you see on the car when
you go in that's essentially their
asking price for the car so that's gonna
be the starting point for any
negotiation you'll rarely have cars that
go above MSRP unless they're in extreme
high demand you'll occasionally have
something like a exclusive car that the
manufacturer is released and the demand
will be so high for it that they're
going like five ten grand over list
price but that's really gonna be the
highest end of cars like the cars that
are kind of niche but are in high demand
like they're not gonna be a typical car
that is affordable for 99.9% of us so
after that you want to know the dealer
cost what in New York I didn't want to
know it but this is the dealer cost is
what the price
the dealership bought the car for and
that's the price that you want to get it
as close to or below yeah ideally you
can get the dealer to take a loss but
that's the only gonna happen in very
interesting circumstances which we're
going to talk about in a second but we
want to get as close to or below this
dealer cost as we can we don't want the
dealership to me making a huge profit
off of us of course I want that as a
being in a car sales family but as the
viewer and as like a person the people
the head you definitely want to get as
close to that dealer cost as you
possibly can so the next thing I think
you can find this online for many cars
and listed at the time on the lot so
this is probably the most important
factor when you're going for a car and
we're going to talk a little bit about
the car depreciation in a little bit but
vehicles have a very fast appreciation
rate and when cars are sitting in a lot
for 30 60 90 days they begin to take a
lot of depreciation so the dealer starts
to begin to take a loss and they really
want to clear out that space and get
that car off a lot and into somebody
else's hands so that way the customer is
taking the depreciation in the car and
the cars not just sitting around in a
lot going down in value so ideally
you're gonna want to look for something
that the dealerships really really
trying to move and has been home a lot
for a long time because they are gonna
be seeing that depreciation as the
vehicle gets older and older and if it's
a about the tournament model year and
you're starting to get older model years
and like it like right now we're about
to see 20 19 cars come out and if you
have a 2017 or 2018 still them a lot
those are just gonna go less and less in
value because the demands gonna be going
down for those cars when the new flashy
car comes out so keep going down here so
this is this is more technical about how
salesmen are paid basically the salesman
or who you're gonna be negotiating with
get largely commission from the profit
they make from selling a car and there
are given a little bit of wiggle room
usually above the dealer cost and in
like which they're allowed to sell the
car for it this really depends on the
exact car if you got a hot car then
they're not going to get much give much
wiggle room off the MSRP but if it's
been on the lot for a little longer
maybe it's a used car maybe it's like a
very common model
and they really just try to crank
through sales they're definitely gonna
have some wiggle room for tough
negotiators and especially for good
customers if you're a good customer
they'll let you negotiate they'll get
your price down because they know you're
going to come back for service you're
gonna come back to buy parts you're
probably they're probably gonna come
back to buy your next car there and they
want to maintain that good customer
dealer relationship going forward so
salesmen are paid at the beginning of
each month based on last month's
performance so if you go in at the end
of each month you were gonna have a good
chance that these salesmen are trying to
get a quick buck in order to get paid in
that next week as you guys can see here
if they sell a car on the last day of
the month they'll get paid just a few
days later but if they have if they wait
and sell that a car on the first of the
month then they'll have to wait an
additional five ways to get paid this is
very typical for the current for the
dealer industry and this is pretty much
standard of what you're gonna see across
almost every brand so at the last few
days of every month maybe these guys
have you got some bills racking up and
they really need to get a few more sales
and they're gonna be just dying to be
quick in the negotiations and get that
car to you for is lowest price as you
can but at the same time you also have
to be willing to walk away from a car
you can't get too attached to a vehicle
because that's one of these things that
the salesmen are trained know if you are
really loving a vehicle and you have
hardly looked at anything else there and
you're not really willing to walk away
you kind of stuck on it one of the
things that I've heard is the person
who's more attached to the deal is
likely the person who loses the
negotiation so definitely don't be too
attached or else you're gonna end up
getting the worst end of the deal and
you're gonna walk out of the dealership
feeling like you got screwed so quick
recap the you really want to get as
close to or under that dealer cost as
you can the time on the lot is gonna be
you're probably your most important
negotiation factor along with how
popular the model is how fast they're
flying off and kind of what the dealer
supply is looking like salesman who
you're gonna be negotiating with get
paid after the first week of the fruit
of each month based on the last month's
performance so after the last day of the
month they won't see another paycheck
into it for five more weeks so they're
definitely trying to squeeze in all the
sales that they can by the end of the
month and that's also when the dealer
are going to be trying to make their
numbers hit their quotas and it could I
be in the running for a lot of rewards
and awards that go out from corporate
based on dealer sales performances so
basically everybody's trying to squeeze
in their sales at the end of the month
so I hope you guys have got some value
from this today if you did hit that like
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comment down below with either a comment
or question that I could answer in a Q&A
video coming up or dressed down on the
comment section down below but that's
all I got for you guys today I hope you
enjoyed this video and I will see you in
the next one thanks for watching
