Latest / Earn Your Leisure / Car Buying SECRETS You NEED to Know! Buy vs. Lease, Tips for Best Deals, & Hidden Dealer Hacks

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Car Buying SECRETS You NEED to Know! Buy vs. Lease, Tips for Best Deals, & Hidden Dealer Hacks · Earn Your Leisure

0:01
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Speaker 1: Yeah, yeah, we are.
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Speaker 3: Back man, Happy Thursday, Happy Thursday, y'all, y'all feeling a fact.
1:57
Speaker 4: Welcome back, new editions, the how to series that we've
2:01
Speaker 4: been doing. This one is a big one as far
2:03
Speaker 4: as how to shop for cars. Everything you need to
2:06
Speaker 4: know is leasing, financing, interest rates, you know, use cars,
2:12
Speaker 4: new cars. All that stuff. Has been a lot that's
2:16
Speaker 4: happened in the car market over the last five years,
2:19
Speaker 4: from COVID to post COVID and so much stuff. It's
2:24
Speaker 4: been like a rocky road. And you know, car purchase
2:27
Speaker 4: is one of the biggest purchases that people make several
2:30
Speaker 4: different times throughout the course of their life. Most places
2:34
Speaker 4: in the country, a car is a necessity to be
2:38
Speaker 4: able to function, and it's something that you know, once again,
2:42
Speaker 4: you never really get educated on, just kind of like
2:45
Speaker 4: you know, ask your dad some questions or your uncle
2:48
Speaker 4: or something, and you know, hopefully you know, make the
2:51
Speaker 4: right decision. You don't really know how to go about it.
2:54
Speaker 4: There's no like educational car buying process. But it is
2:58
Speaker 4: a big thing, one of the big it's expenses that
3:01
Speaker 4: most Americans have. So we are bringing an expert on
3:07
Speaker 4: talk about the car business and everything that you need
3:11
Speaker 4: to know as far as buying a car, leasing a car,
3:15
Speaker 4: and all the stuff that I just talked about. Somebody
3:17
Speaker 4: that's been in the car business for over twenty years,
3:20
Speaker 4: from salesman to managing dealerships to having his own brokerage.
3:24
Speaker 4: We're clients of his. Yes, we actually purchased cars from
3:27
Speaker 4: him and he's actually the first person that spoke about
3:30
Speaker 4: cars on Alisia about five years ago. So fitting that
3:34
Speaker 4: we bring him back. So without further ado, Chris chere,
3:40
Speaker 4: what's going on, Chris.
3:41
Speaker 3: What's going on with my brother, what's going on? Everything
3:45
Speaker 3: is good man. Some of the day ones might recognize Chris.
3:48
Speaker 3: He was part of that that Green World brigade our
3:50
Speaker 3: early days in the dining room, came and shared a
3:52
Speaker 3: lot of information man. And obviously, as Charlie said, man,
3:55
Speaker 3: we are clients. So it was nice cars that you
3:56
Speaker 3: see us in. You can thank Chris for.
4:00
Speaker 4: Well.
4:00
Speaker 2: I appreciate you guys trusting me with that with your
4:03
Speaker 2: car buying process. You know, A honored to be able
4:07
Speaker 2: to help you guys out and look forward to continue
4:09
Speaker 2: to do more cars in the future too, for sure.
4:13
Speaker 4: So can you just run down your resume? I talked
4:15
Speaker 4: about it, but I think it might be better if
4:17
Speaker 4: it came from you.
4:19
Speaker 2: Uh yeah. So I've been in the automotive space for
4:21
Speaker 2: over twenty years, like you said, started out, you know,
4:25
Speaker 2: actually started out washing cars early on in the car business.
4:28
Speaker 2: That moved on into sales, UH, into management. And I
4:33
Speaker 2: was fortunate enough to work with some really really cool people,
4:35
Speaker 2: really talented UH salespeople and leaders that I had that
4:39
Speaker 2: helped me grow in the automotive industry. And you know,
4:42
Speaker 2: it's the car business is not something that people grow
4:44
Speaker 2: up you know, saying hey, I want to be a
4:45
Speaker 2: car salesman, right, It's kind of one of those things
4:47
Speaker 2: that you end up doing. Uh, And I've been fortunate
4:49
Speaker 2: to have a really cool career. I built my business
4:53
Speaker 2: on being knowledgeable, being upfront, and being honest with customers,
4:56
Speaker 2: and that's it. I think if you do business that way,
4:59
Speaker 2: you can really create a really cool client base and
5:03
Speaker 2: a career for yourself. And so, you know, again, things
5:07
Speaker 2: have changed drastically in the last couple of years, especially
5:10
Speaker 2: with the pandemic of pricing going through the roof. That
5:12
Speaker 2: was inventory shortages. So we had to do some stuff
5:16
Speaker 2: during that time where we had to pivot and and
5:18
Speaker 2: kind of structure business differently. So I ended up opening
5:21
Speaker 2: my own brokerage helping customers buy cars, along with starting
5:26
Speaker 2: a training company for dealerships to help them be able
5:29
Speaker 2: to deliver a higher level of service and being able
5:32
Speaker 2: to connect with their clients and ultimately create a better
5:35
Speaker 2: experience for people when buying a car. So what I
5:37
Speaker 2: wanted to be able to do is help help people
5:40
Speaker 2: understand and the people who follow earn your leisure understand
5:44
Speaker 2: how didn't I navigate the process? It is scary, it's
5:48
Speaker 2: challenging if you if you go in, and like you said,
5:51
Speaker 2: most people get the information from someone they know or
5:54
Speaker 2: you know, a friend that maybe bought a couple of cars,
5:56
Speaker 2: or say hey, I'll go with you to the dealership.
5:58
Speaker 2: I'll help you do it. But we want to give
6:00
Speaker 2: you some inside information as far as how to make
6:02
Speaker 2: sure you have a smooth, seamless process when you do
6:05
Speaker 2: go buy a car.
6:06
Speaker 1: Yeah.
6:07
Speaker 3: Man, we greatly appreciate you for that. Not only have
6:09
Speaker 3: we become clients, but some of our close friends have
6:12
Speaker 3: become clients as well.
6:13
Speaker 1: And it's one of those things, right when.
6:15
Speaker 3: We see interest rates change in, we see incentives changeing,
6:19
Speaker 3: we don't really get the full scope of it, right.
6:20
Speaker 3: A lot of times we don't read the fine line.
6:22
Speaker 3: And so this is one of those times where it's
6:24
Speaker 3: like we're going to unpack all that so we can
6:26
Speaker 3: make the right decision when you walk inside that dealership.
6:29
Speaker 4: Absolutely absolutely, So let's get into it. Let's let's let's
6:33
Speaker 4: talk about how to shop for cars and go down
6:37
Speaker 4: the whole gambit.
6:41
Speaker 2: Okay, So yeah, like we said, you know, buying cars
6:43
Speaker 2: are scary, right, so we want to make sure that
6:46
Speaker 2: one we create an environment that is where people are
6:49
Speaker 2: informed when going into buy a vehicle, and this is
6:51
Speaker 2: not just going to help the consumer, but it helps
6:53
Speaker 2: the dealership in the process also. So this is not
6:56
Speaker 2: like trying to put you know, one against the other. Right,
6:59
Speaker 2: That's that's a big mistake I think people make when
7:01
Speaker 2: they go into a dealership. They're going with their guard up, right.
7:03
Speaker 2: They have that conversation in the car like, hey, listen,
7:05
Speaker 2: we're gonna go only going into look, right, we're not
7:08
Speaker 2: gonna buy anything today, and they kind of like gear
7:11
Speaker 2: up for doing battle. And I think sometimes that can
7:13
Speaker 2: create a pretty challenging experience for both the salesperson and
7:19
Speaker 2: the consumer.
7:20
Speaker 4: Right.
7:20
Speaker 2: So one thing I tell people all the time is
7:23
Speaker 2: be open minded. Right, years ago, things were different, and unfortunately,
7:28
Speaker 2: in some stores they haven't changed in the sense that
7:31
Speaker 2: salespeople kind of do things like that they used to
7:34
Speaker 2: do and they're looking to get over on people. But
7:36
Speaker 2: for the most part that's not the case. Right. People
7:39
Speaker 2: want to help you buy a car, and you're there
7:43
Speaker 2: to buy one, right. But unfortunately, if we set the
7:45
Speaker 2: tone and we go in aggressively and like, you know,
7:49
Speaker 2: be confrontational, then what does the salesperson do. He becomes
7:52
Speaker 2: confrontational back, or sometimes a salesperson's confrontational, then you become confrontational.
7:56
Speaker 2: And what I would recommend is, if you are in
7:58
Speaker 2: a situation where you're at a dealership and for some
8:00
Speaker 2: reason you're not clicking or vibing with the salesperson, Listen,
8:03
Speaker 2: you're in control, right, you're the sales or you're the customer.
8:06
Speaker 2: You're there to buy the product. If you're not happy
8:08
Speaker 2: with the experience, feel free to say, hey, listen, you
8:11
Speaker 2: know what this isn't really you know, I don't think
8:13
Speaker 2: we're connecting, we're reviving at this time. Can I speak
8:15
Speaker 2: to somebody else? Maybe asked to speak to a manager
8:17
Speaker 2: and ask for another salesperson, not in the confrontational manager.
8:21
Speaker 2: But listen, trust your gut. If you feel you're not
8:24
Speaker 2: having the best experience with the dealership or the salesperson,
8:27
Speaker 2: be comfortable asking for someone else to help you out.
8:30
Speaker 3: Does that make sense, Yeah, it makes a lot of sense.
8:33
Speaker 3: I've bought them plenty of dealerships, and I actually haven't
8:36
Speaker 3: done that. I've actually just left the dealership because I
8:38
Speaker 3: didn't like the way that the person that first that
8:41
Speaker 3: got introduced to inside of the space was conducting business.
8:44
Speaker 1: So yeah, that is that is true.
8:46
Speaker 2: So again that hurts you and the dealership, right, So
8:49
Speaker 2: nobody benefits from that. So I think being you know,
8:51
Speaker 2: if you're in a restaurant and you're not happy with food, right,
8:54
Speaker 2: you're gonna be like, hey, you know what, you send
8:56
Speaker 2: it back or whatever or ask for something else, right,
8:58
Speaker 2: So the same thing in a car dealer.
9:00
Speaker 1: Ship.
9:00
Speaker 2: Understand, that's not a bad thing to do that.
9:04
Speaker 4: Okay, all right, So I know you're big one, you know,
9:09
Speaker 4: being prepared when you walk into the dealership, right, So
9:12
Speaker 4: what does that mean?
9:14
Speaker 2: So you got to do your research going into a
9:17
Speaker 2: dealership and you're not familiar with let's say the product
9:20
Speaker 2: or the programs that they have where what a car
9:23
Speaker 2: may go for.
9:24
Speaker 4: Right.
9:24
Speaker 2: I have a lot of people that call up for
9:26
Speaker 2: a vehicle and they'll say, hey, I'm looking for this
9:29
Speaker 2: particular car, and then when they get a payment, they're
9:32
Speaker 2: like WHOA, Like I had no idea it was going
9:34
Speaker 2: to be that much money.
9:35
Speaker 1: Right.
9:35
Speaker 2: Cars have gone up in price, right, whether you're leasing
9:38
Speaker 2: or financing. Interest rates are really high right now. So
9:41
Speaker 2: you want to do some research before you go to
9:43
Speaker 2: the dealership, right, make sure that you're there's so many websites,
9:46
Speaker 2: you know, car Gurus, there's car Max, all these different
9:50
Speaker 2: places where you can get information nowadays about vehicles. So
9:54
Speaker 2: do your research, you know, compare different vehicles. If you're
9:57
Speaker 2: in the market for let's say an sgu Listen, everyone
10:01
Speaker 2: makes a great card nowadays. And that's one of the
10:03
Speaker 2: things I think the pandemic did was it opened the
10:08
Speaker 2: mind of the consumer where let's just say, you know,
10:10
Speaker 2: I've always purchased whatever Mercedes Benz vehicles, right and during
10:17
Speaker 2: the pandemic, all of a sudden you saw these crazy
10:19
Speaker 2: increases in prices and people said, wait a minute, let
10:22
Speaker 2: me see what my options are. And then they realized that, hey,
10:25
Speaker 2: there are other brands out there that make great products.
10:28
Speaker 2: So do the research. If you're looking for an SUV,
10:30
Speaker 2: be open minded to other options. Like I said, be prepared,
10:34
Speaker 2: read the reviews, you know, check out the quality ratings
10:37
Speaker 2: and things of the nature before going into the dealership.
10:41
Speaker 3: How important is it to number one, check resale value
10:46
Speaker 3: before you're going into this process of saying I'm going
10:48
Speaker 3: to buy or lease a vehicle.
10:50
Speaker 2: So that that's a huge factor right now. That depends
10:54
Speaker 2: if you're going to be leasing or buying the vehicle. Now,
10:58
Speaker 2: on a lease, these value is important because the leases
11:01
Speaker 2: are based so on the lease, you pay the depreciation
11:05
Speaker 2: right whatever the vehicle loses in value. So if the
11:07
Speaker 2: vehicle has a higher resale value, it typically has a
11:10
Speaker 2: higher resale value. That's going to shrink your monthly payment.
11:14
Speaker 2: So that's important. Now, if you're going to be financing
11:17
Speaker 2: a vehicle, same thing. You want to make sure that
11:19
Speaker 2: vehicle holds value. So I tell this story all the
11:22
Speaker 2: time to people. If you're buying two cars, right, there
11:25
Speaker 2: is no right or wrong as far as leasing. Some
11:27
Speaker 2: people ask me all the time what's better leasing or financing?
11:30
Speaker 2: To me, it's all based on personal preference. What are
11:33
Speaker 2: you using the vehicle for? How long do you keep
11:35
Speaker 2: the vehicle? Those things play apart. Are you driving a
11:39
Speaker 2: lot of mileage? Things like that. So making sure you
11:42
Speaker 2: understand what the resale value of the vehicle is key
11:45
Speaker 2: because if you're going to make this long term investment
11:48
Speaker 2: in financing a vehicle, you want to make sure that
11:50
Speaker 2: it's going to hold its value.
11:52
Speaker 3: This is important, Chris, because we're talking about preparation and
11:55
Speaker 3: this is coming off the heels of our last how
11:57
Speaker 3: to which was understanding your credit score. A lot of
12:01
Speaker 3: people don't realize how important credit is in trying to
12:04
Speaker 3: get a car. So talk about that, like the importance
12:06
Speaker 3: of it. What numbers do you are the dealerships looking for?
12:10
Speaker 3: How that impacts your interest rates? Things like that.
12:14
Speaker 2: Okay, big conversation where we have a lot of clients
12:17
Speaker 2: right now about their interest rates. Some people use like
12:20
Speaker 2: let's say, credit Karma or you know, these different apps
12:23
Speaker 2: to kind of see what their interest well, sorry, what
12:25
Speaker 2: their credit score is. I typically find if you go
12:30
Speaker 2: to experience TransUnion, Equifax, you can get a more accurate
12:34
Speaker 2: score than using these other companies. Right, So how that works?
12:39
Speaker 2: So the bank looks at it as all right, I'm
12:41
Speaker 2: going to be lending this person money for a vehicle
12:44
Speaker 2: that essentially the bank is buying. Right, the bank is
12:47
Speaker 2: going to buy the vehicle from the dealership, They're going
12:50
Speaker 2: to loan you money, and you're going to be paying
12:53
Speaker 2: off that loan to them. So think about it this way.
12:55
Speaker 2: If someone was borrowing money from you and you looked
13:01
Speaker 2: at their credit score, that would kind of give you
13:04
Speaker 2: an indication of how likely they are to pay back
13:06
Speaker 2: that loan. Okay, So now if somebody has a lower
13:09
Speaker 2: credit score, has a payment history that's not you know,
13:12
Speaker 2: you see they've missed some payments. You may still lend
13:15
Speaker 2: them the money for that car, but you have more
13:18
Speaker 2: risk in the game. Right then there's a chance you
13:21
Speaker 2: could see by their history they may not be a
13:23
Speaker 2: to paying it back or paying it back on time,
13:26
Speaker 2: so I might give them a higher interest rate. Now
13:29
Speaker 2: that's going to increase their monthly payment. So now there,
13:32
Speaker 2: I'll tell you during the pandemic things changed drastically, but
13:35
Speaker 2: you're starting to see it kind of settle itself out.
13:38
Speaker 2: Now where use car rates right now are anywhere between
13:42
Speaker 2: seven and fourteen percent. Okay, new car rates I've seen
13:46
Speaker 2: as low as you know, three point nine to four
13:48
Speaker 2: point nine. Last year, Ford had a zero percent interest
13:52
Speaker 2: for thirty six months on a new car, So that
13:55
Speaker 2: was unheard of, you know, three or four years ago, right,
13:57
Speaker 2: So you're starting to see it come back a little bit.
13:59
Speaker 2: So you again, doing your research very important. You can
14:02
Speaker 2: go online. If there's a particular vehicle you're looking at,
14:05
Speaker 2: you can go online to that company's website, let's say
14:08
Speaker 2: it is for it, and you can see what specials
14:11
Speaker 2: they have available and they'll show you the interest rates. Now,
14:13
Speaker 2: remember you have to qualify for that. So if you
14:16
Speaker 2: have the credit score needed, then obviously that applies to you.
14:19
Speaker 2: If not, you'll have different tiers that will bring your
14:22
Speaker 2: credit score up.
14:24
Speaker 4: So, before we go to the least in financing deep dive,
14:28
Speaker 4: you mentioned used cars and new cars, right, So can
14:33
Speaker 4: you go down that rabbit hole as far as like
14:37
Speaker 4: what's the benefits of having a used car versus a
14:44
Speaker 4: new car? Or a new car versus a used car?
14:47
Speaker 2: All right, so there's a lot of this is a
14:51
Speaker 2: huge question that we get. Should I buy new or
14:54
Speaker 2: should I used one. I'll tell you something. You got
14:57
Speaker 2: to take your ego out of this. Okay, this is
15:00
Speaker 2: a financial decision. I tell people all the time. If
15:06
Speaker 2: you're going to keep a car, let's just say you're
15:07
Speaker 2: going to drive a lot of mileage. When I say
15:10
Speaker 2: a lot of miles, I'm talking about over twenty thousand
15:12
Speaker 2: miles a year. And you plan on keeping this car,
15:15
Speaker 2: you know, for a certain amount of time, for let's
15:17
Speaker 2: say an extended period of time, it makes sense to
15:20
Speaker 2: buy used. Now, when you are buying used, I recommend
15:24
Speaker 2: that you buy it from the authorized dealer and here's
15:28
Speaker 2: the reason why. When you're buying the car from an
15:31
Speaker 2: authorized dealer, these vehicles have gone through an inspection, so
15:35
Speaker 2: that dealership. Meaning let's just say you're buying a pre
15:38
Speaker 2: owned Honda. Okay, yes, I can go buy a pre
15:42
Speaker 2: on Honda on a side lot you know of a
15:46
Speaker 2: neighbor or whatever the case may be, and I may
15:50
Speaker 2: pay a little bit less. But when you're buying it
15:52
Speaker 2: from the dealership, remember this is a long term investment.
15:55
Speaker 2: Investments a trick you worth to say when it comes
15:57
Speaker 2: to this. But when you're buying the car from the dealership,
16:02
Speaker 2: now you have the backing. Let's say you're buying it
16:05
Speaker 2: from a Honda dealership. You have the backing of Honda
16:07
Speaker 2: and that dealership to make sure that vehicle has gone
16:10
Speaker 2: through a rigorous inspection, making sure that you know everything's
16:14
Speaker 2: working properly.
16:15
Speaker 4: Right.
16:15
Speaker 2: You want to make sure the vehicle's certified right, so
16:17
Speaker 2: that has a certified warranty on it. Normally that's an
16:20
Speaker 2: extension of the manufacturer's warranty. And in case something goes
16:24
Speaker 2: wrong and you know the first you know, three or
16:26
Speaker 2: four months of you driving the vehicle, you can go
16:29
Speaker 2: back to the dealership and say, hey, wait a minute,
16:30
Speaker 2: I just picked up this vehicle, you know, two three
16:32
Speaker 2: months ago, and this is what's wrong with it, and
16:34
Speaker 2: you have that warranty there. When you do buy these
16:37
Speaker 2: cars from these second hand lots or you know, from
16:39
Speaker 2: the person down the street or or your or your
16:42
Speaker 2: gas station guy or whatever, you you lose out on that.
16:45
Speaker 2: So even though you might be saving a little bit
16:47
Speaker 2: money upfront, you're probably gonna i'd say probably more than likely,
16:52
Speaker 2: you're going to pay that money back in repairs and
16:55
Speaker 2: things of that nature. Or so I always recommend if
16:58
Speaker 2: you are buying used by certified pre owned and buy
17:02
Speaker 2: from the authorized dealer. Now, why would you buy a
17:06
Speaker 2: used vehicle, Like I said, if you're using the vehicle,
17:08
Speaker 2: you're putting a lot of miles on the vehicle. That's
17:12
Speaker 2: to me, the most important factor in buying a used vehicle. Now,
17:17
Speaker 2: the problem right now, and what we saw during the
17:19
Speaker 2: pandemic is used cars. Used car pricing went through the roof, right, So,
17:23
Speaker 2: just to give you an idea, in twenty twenty the
17:26
Speaker 2: average use car price was around twenty thousand dollars. In
17:29
Speaker 2: twenty twenty two, it was over thirty thousand dollars for
17:32
Speaker 2: the same car, same type of vehicle, so prices jumped drastically.
17:37
Speaker 2: You're starting to see that come down a little bit,
17:39
Speaker 2: but it's still much higher than what it was back
17:41
Speaker 2: then during the pandemic. Right before the pandemic twenty nineteen,
17:46
Speaker 2: cars were depreciating of about three percent, right and in
17:50
Speaker 2: twenty twenty one and twenty twenty two they jumped up
17:53
Speaker 2: thirty two to thirty six percent. So it was a
17:56
Speaker 2: very difficult time. This is when people were saying, hey,
17:59
Speaker 2: you know what, I have a lease and they were
18:01
Speaker 2: selling their leases or they were getting money back for
18:03
Speaker 2: their cars. But it made it very difficult to buy
18:07
Speaker 2: a vehicle. Believe it or not, some people are actually
18:08
Speaker 2: buying used cars for more than the original price that
18:11
Speaker 2: someone paid for it as a new vehicle. So the
18:13
Speaker 2: market was crazy. But it's starting to settle out a
18:15
Speaker 2: little bit. I think by the end of twenty twenty
18:17
Speaker 2: five you'll see numbers start to come back down, mainly
18:21
Speaker 2: because the new car inventory is starting to come back.
18:25
Speaker 3: I'm just thinking, in my head, you get the used card,
18:27
Speaker 3: you're getting double at thirty thousand at the minimum double
18:30
Speaker 3: digit interest rate.
18:32
Speaker 1: That's a healthy payment man, that's a lot.
18:35
Speaker 2: Well, that's what people don't understand. The interest rate is
18:37
Speaker 2: so important, right, And when you do get a certified
18:40
Speaker 2: vehicle from the dealership, normally that'll come attached with a
18:45
Speaker 2: better interest rate. But used car interest rates right now
18:47
Speaker 2: are in the sevens. You know, seven to fourteen percent
18:50
Speaker 2: is what I'm seeing. So people don't realize this is
18:54
Speaker 2: very important. When you're shopping for a vehicle. You have
18:56
Speaker 2: to do the big math, right, not just the little math.
18:59
Speaker 2: When the dealership tells you you, oh, it's you know,
19:01
Speaker 2: eighty to ninety dollars or one hundred dollars more in
19:03
Speaker 2: the monthly payment. If you're doing a seventy two month loan,
19:06
Speaker 2: right or a six year finance, that's seventy two hundred
19:09
Speaker 2: dollars that you're adding in finance charges, right, depending on
19:13
Speaker 2: what your interest rate is to the price of the car. Right,
19:16
Speaker 2: So make sure you're aware of what the interest rate is.
19:20
Speaker 2: Don't don't just buy based on payment. Does that make sense?
19:24
Speaker 2: Because if the higher the interest rate when on a
19:27
Speaker 2: simple interest loan, Okay, let's get into math. Right, on
19:29
Speaker 2: a simple interest loan, which was what every car loan is, right,
19:35
Speaker 2: the bank collects their money first, so you're paying back
19:38
Speaker 2: the interest first. The money that you're making on your payment.
19:42
Speaker 2: Let's just say you have a five hundred dollars payment.
19:44
Speaker 2: The majority of that payment in the beginning is going
19:46
Speaker 2: towards interest. Very little of that money is going towards
19:48
Speaker 2: your principle. So what's happening is your vehicle's losing value
19:52
Speaker 2: and you're not even touching the principle yet you're paying
19:54
Speaker 2: all The bank wants their money back first, right, they're
19:57
Speaker 2: not worried about you paying off the car, yet give
19:59
Speaker 2: me my money. So you're paying off the the interest,
20:02
Speaker 2: and then you're starting to hit that principle. Around the
20:05
Speaker 2: halfway mark is now when you start to cut into
20:07
Speaker 2: the principle. But what happens is that vehicle is depreciating
20:10
Speaker 2: in value. Not to mention, let's say that vehicle was
20:13
Speaker 2: in an accident. If that car got hit and now
20:16
Speaker 2: you have a bad car FAX, that dropped the value
20:18
Speaker 2: of the vehicle also, so you're accelerating the depreciation while
20:21
Speaker 2: you're still paying all of this interest.
20:24
Speaker 4: That makes sense, Yeah, yeah, yeah, before well before the
20:29
Speaker 4: used car, what about a warranty that comes with the.
20:33
Speaker 2: So when you get when you get a certified vehicle,
20:36
Speaker 2: those those normally come with an extension of the manufacturer's warranty.
20:40
Speaker 2: That's if the vehicle's, you know, still a fairly new car. Right,
20:43
Speaker 2: let's say it's a two or three year old vehicle.
20:46
Speaker 2: Now you can buy extended warranties, and a lot of
20:50
Speaker 2: these secondhand lots they will send you an extended warranty,
20:53
Speaker 2: but you got to read defined print. Some of them
20:55
Speaker 2: have deductibles, high deductibles, or there's certain the only cover
20:59
Speaker 2: certain aspects of the vehicle. So you got to be
21:03
Speaker 2: very careful with those. You know, secondhand warranties. Some of
21:06
Speaker 2: them are great, Don't get me wrong, some of them
21:07
Speaker 2: are great, but you want to you have to do
21:09
Speaker 2: the Like I said, you have to do the research.
21:10
Speaker 2: You got to redefined print. Whenever you're signing these contracts.
21:13
Speaker 2: Go back to what I was talking about with the
21:16
Speaker 2: interest rate. When you're paying that interest and the vehicle's depreciating,
21:21
Speaker 2: that's how you end up what's called upside down, where
21:24
Speaker 2: you owe more than it's worth. Right, you go to
21:26
Speaker 2: the dealership, you go to trade it in, and they go, well,
21:29
Speaker 2: you owe fifteen thousand, but the car is only worth ten.
21:32
Speaker 2: So what happens is people take that five thousand dollars
21:35
Speaker 2: roll it into their next car, and essentially they're paying
21:39
Speaker 2: for that old car in the price of their new car.
21:41
Speaker 2: Not to mention they're paying interest on that also, So
21:44
Speaker 2: you have to be very careful with that. You can
21:45
Speaker 2: get into a really bad cycle of rolling negative equity
21:49
Speaker 2: into the next car, in the next car, in the
21:51
Speaker 2: next car. What I tell people who are in that
21:54
Speaker 2: situation is your best option to end that cycle is
21:58
Speaker 2: to lease a vehicle. Now, no why you're gonna be
22:02
Speaker 2: paying more because you're gonna have to roll that negative
22:03
Speaker 2: equity into the vehicle. You may even have to put
22:05
Speaker 2: some money down on the lease so the bank can
22:07
Speaker 2: look at it as a favorable purchase, right, meaning why
22:12
Speaker 2: would the bank give you forty thousand dollars for a
22:16
Speaker 2: vehicle that's only worth thirty thousand, Right, They're gonna want
22:20
Speaker 2: to see some money down. But at the end of
22:21
Speaker 2: three years and you've made that those payments on time,
22:24
Speaker 2: and then the three years you walk away, now you're
22:27
Speaker 2: out of that negative equity cycle and your payment's going
22:30
Speaker 2: to be much lower.
22:31
Speaker 3: Yeah, I'm glad you brought up that and the warranty piece,
22:34
Speaker 3: because that can get triggy A lot of times. It
22:36
Speaker 3: will be fifty thousand. You buy a used car, it
22:38
Speaker 3: already has thirty six thousand. That means you're only fourteen
22:40
Speaker 3: thousand miles before having to get it extended. Then you
22:43
Speaker 3: have it for six years and that extend that might
22:46
Speaker 3: go to one hundred thousand. But by the time you
22:48
Speaker 3: finished paying the six years, you've passed one hundred thousand,
22:50
Speaker 3: and so those are the type of payments that you
22:52
Speaker 3: can't account for that will come up inside of that deal.
22:56
Speaker 1: But I'm walking.
22:57
Speaker 2: Warrantin's warranties working through. Keep in mind it's mileage and time.
23:02
Speaker 2: So this is a thing a lot of people don't
23:03
Speaker 2: know this. This is a thing called data first use.
23:05
Speaker 2: It's called the DOFU right, data first use. So your
23:08
Speaker 2: warranty starts from the data first use. Let's say you
23:10
Speaker 2: have a four year warranty and you buy the vehicle
23:13
Speaker 2: in November of twenty twenty three, right, so that that's
23:19
Speaker 2: when your warranty starts. So let's say you're a four
23:22
Speaker 2: year warranty. November of twenty twenty seven is when your
23:25
Speaker 2: warranty expires. If you come back and say, hey, you
23:28
Speaker 2: know what. Or let's just say you bought a twenty
23:30
Speaker 2: twenty four in twenty twenty three, right, because cars come
23:33
Speaker 2: out early, right, they come out for the next model year.
23:36
Speaker 2: You don't. You don't have a twenty till twenty twenty eight.
23:39
Speaker 2: Let's say you bought a twenty twenty four and as
23:41
Speaker 2: a four year warranty, but you bought it in twenty
23:43
Speaker 2: twenty three. Your warranty expires November twenty twenty seven, not
23:47
Speaker 2: in twenty twenty eight. So you have to keep in
23:50
Speaker 2: mind it's mileage or time, whichever one comes first. You
23:53
Speaker 2: can say, hey, listen, I have a forty eight thousand
23:55
Speaker 2: mile warranty and I only had my vehicle for you know,
23:59
Speaker 2: three years. If you hit that time, I'm sorry. I've
24:02
Speaker 2: had my vehicle for past the time that the warranties allowed.
24:06
Speaker 2: You're at. A warranty doesn't matter if you're under on
24:08
Speaker 2: your mileage.
24:09
Speaker 3: So I'm walking into dealership, Chris, right, I've prepared myself,
24:13
Speaker 3: I know my credit score, I've been preapproved for a
24:16
Speaker 3: certain amount, I've done the.
24:18
Speaker 1: Research on the vehicle.
24:19
Speaker 2: One.
24:19
Speaker 1: I set a budget.
24:21
Speaker 3: But there's a part that doesn't get talked about, and
24:23
Speaker 3: that's finding deals and incentives right.
24:26
Speaker 1: Incentives are important.
24:27
Speaker 3: A lot of people will see commercials and they're like
24:29
Speaker 3: Z and it's like no way. You'll read something in
24:31
Speaker 3: the newsprint you're like there's no way, and you walk
24:34
Speaker 3: into the dealership and all those things that you heard
24:37
Speaker 3: may not be true.
24:37
Speaker 1: How do we know what's real?
24:38
Speaker 3: How do we know what's not real when trying and
24:40
Speaker 3: filing deals and incentives? And who are some of the
24:43
Speaker 3: makers that you've seen that have had pretty good ones?
24:45
Speaker 2: So when you see these ads, you got to read
24:48
Speaker 2: the fine print, all right, there's some terminology that we
24:51
Speaker 2: want to look at. That's one of the slides I
24:52
Speaker 2: think we were talking about. Was money down all right?
24:56
Speaker 2: Or cap cost reduction? All right? So let's say you're
25:00
Speaker 2: the vehicle and you see this ad that says three
25:01
Speaker 2: ninety nine a month, and then if the guy talks
25:04
Speaker 2: really fast or there's like fine print, right, you'll find
25:07
Speaker 2: that later on that that's thirty nine ninety nine down
25:11
Speaker 2: plus taxes and fees. That's what it says in that
25:14
Speaker 2: fine print. So there's a cap cost reduction that means
25:17
Speaker 2: that that's an investment from you to bring that payment down.
25:21
Speaker 2: You don't have to do that. If your credit qualifies,
25:23
Speaker 2: you don't have to put that money down again, if
25:26
Speaker 2: your credit qualifies, truthfully speaking, you don't have to put
25:29
Speaker 2: any money down on the lease if your credit qualifies
25:33
Speaker 2: for it. Now, I don't recommend putting zero zero like
25:36
Speaker 2: rolling your first month's payment into the lease. A lot
25:38
Speaker 2: of people will come in and say, oh, I don't
25:40
Speaker 2: want to give anything. I want to do zero duet signing.
25:44
Speaker 2: Zero duet signing means plus your taxes and fees. That
25:48
Speaker 2: means you're still paying your first month's payment, your bank fee,
25:51
Speaker 2: now your bank fees what's called or another term is
25:54
Speaker 2: acquisition fee, your taxes, your first month's payment, your bank fee,
25:59
Speaker 2: your plates and register. Okay, So that's if you literally
26:04
Speaker 2: gave like first one's payment, bank BEP, plates, taxes, and registration,
26:07
Speaker 2: that's a zero down lease, which kind of people kind
26:11
Speaker 2: of have trouble understanding that because you're not putting money
26:14
Speaker 2: down on top of it. Now, if you want to
26:15
Speaker 2: roll your taxes into the lease, you can do that,
26:17
Speaker 2: but it's going to increase your monthly payment. So you
26:19
Speaker 2: have to make a decision. Hey, am I, Okay, with
26:21
Speaker 2: putting this money up front, or am I okay with
26:24
Speaker 2: the higher monthly payment?
26:26
Speaker 1: Okay?
26:26
Speaker 2: Now getting back to what you asked, how do I
26:28
Speaker 2: know what rebates are available to you? You have to
26:30
Speaker 2: ask your dealership and you have to do the research.
26:33
Speaker 2: Now very important with the rebates a lot. They are
26:38
Speaker 2: disclosed in your contract when you go in to sign
26:41
Speaker 2: your contract with the normally it's a finance manager or
26:45
Speaker 2: somebody at the dealership. You want to make sure you
26:47
Speaker 2: go over it. Don't let them just say all right,
26:49
Speaker 2: this is your name, that's your payment, that's your money
26:51
Speaker 2: down sign right here. You want to go over it
26:54
Speaker 2: line by line. There's a paragraph, it's a truth in
26:58
Speaker 2: lending paragraph will actually explain to you what the rebates are.
27:00
Speaker 2: It'll tell you what the selling price of the vehicle is,
27:03
Speaker 2: how the amount of duet signing came up with on
27:06
Speaker 2: a lease, and if there's any rebates, that'll be broken
27:09
Speaker 2: out on that line. So you want to make sure
27:10
Speaker 2: you look at that. On on a finance it's a
27:14
Speaker 2: little bit more difficult because it's just a lump sum
27:16
Speaker 2: that that you'll see on the on the contract. But
27:19
Speaker 2: you again want to do the research. Want to go online.
27:21
Speaker 2: I want to The information is easily accessible when you
27:25
Speaker 2: go online and just search what rebates are available, and
27:27
Speaker 2: you have to make sure you qualify things like people
27:30
Speaker 2: who are first responders qualify for a lot of rebates.
27:34
Speaker 2: If the vehicle is a let's say a hybrid or
27:36
Speaker 2: an electric vehicle, those are getting big rebates right now.
27:40
Speaker 2: So those again you got to do your research, search
27:43
Speaker 2: online and you can you can access that information.
27:46
Speaker 3: Because really quick, before we go to the next thing,
27:49
Speaker 3: what's the credit scode that banks are looking for? We
27:50
Speaker 3: talked about mortgage. We know like it's a six eighty.
27:52
Speaker 3: What what's the credit scode that a good dealership is
27:55
Speaker 3: looking for?
27:55
Speaker 4: All right?
27:56
Speaker 2: So for now, different brands have different tiers, right, So
28:00
Speaker 2: some tiers some some banks will have like a tier
28:02
Speaker 2: A one plus right, that's normally like seven fifty or
28:06
Speaker 2: seven forty or better for a like a Tier one credit,
28:10
Speaker 2: normally you want to be over seven hundred for Tier
28:13
Speaker 2: one credit. Some banks are seven nineteen depending on the brand.
28:17
Speaker 2: But different again, different brands have different criteria. So like
28:21
Speaker 2: some dealers, some brands will actually buy like a six
28:24
Speaker 2: fifty six six sixty score, but they'll give you a
28:28
Speaker 2: much higher tier. So that's going to increase your monthly payment.
28:33
Speaker 4: Okay, all right, got it. So let's let's go into
28:38
Speaker 4: big question how to get a good deal? You know,
28:41
Speaker 4: that's something that people always ask, right, they want to
28:43
Speaker 4: make sure that they are not getting ripped off and
28:46
Speaker 4: they actually, you know, are winning in this situation. So
28:50
Speaker 4: how do you how do you get a good deal?
28:52
Speaker 2: So it's it's going to be a combination of all
28:54
Speaker 2: the things we talked about, right, going in with the
28:56
Speaker 2: right attitude, right being going in there, you know, prepared,
29:01
Speaker 2: making sure that you know you know what vehicle you're
29:04
Speaker 2: looking at, and doing the research, shopping around. I'll be
29:06
Speaker 2: honest with you if I don't. Some people may like
29:10
Speaker 2: not like this in the automotive industry, but I'm not
29:12
Speaker 2: afraid of customers shopping around. I'll be honest with you.
29:16
Speaker 2: It to me. A customer who comes in knowing the market,
29:21
Speaker 2: it's an easier customer for customer for me because they're educated, right,
29:25
Speaker 2: they know what they're looking for, they're realistic as far
29:27
Speaker 2: as the numbers. You just have to understand how to
29:30
Speaker 2: connect to that person. And that's where I think people
29:33
Speaker 2: fail in the automotive industry. Salespeople fail when they a
29:36
Speaker 2: customer comes in and says, hey, listen, I've been shopping around.
29:39
Speaker 2: They're like, oh, you know, their shoulders go down, they
29:41
Speaker 2: get frustrated. To me, I get excited. That means this
29:43
Speaker 2: person is ready to buy the car. They've done all
29:45
Speaker 2: the research. Now I just got to connect my product
29:48
Speaker 2: to their problem. That's it. And if I can do
29:51
Speaker 2: that and build a relationship with my client, they're going
29:53
Speaker 2: to choose me every time. I'm not afraid of customers
29:55
Speaker 2: shopping around. So if you have the opportunity shop around,
29:59
Speaker 2: makes phone calls, visit dealerships. Unfortunately, some dealerships still do
30:04
Speaker 2: business in a way where they're like, oh, you have
30:06
Speaker 2: to come into the dealership in order for me to
30:07
Speaker 2: give you a number. That to me is silly. I
30:09
Speaker 2: can buy I can buy you know something on my phone.
30:13
Speaker 2: You can buy a car on your phone. Let's be honest.
30:15
Speaker 2: So I think the dealerships that understand that that the
30:18
Speaker 2: speed of the transaction is key, they're going to be
30:22
Speaker 2: more successful in this time with these customerustomers. Right, so hey,
30:27
Speaker 2: give the number up front. Unfortunately, some dealerships will say hey,
30:30
Speaker 2: this is the price, and then when you get into
30:32
Speaker 2: the dealership, they change the numbers. It's something that again
30:36
Speaker 2: it's it's unfortunate in the industry, but you have to
30:39
Speaker 2: be willing to go into a dealership and if it's
30:42
Speaker 2: not what they said it was, you have to be
30:44
Speaker 2: open to walking away. That's it. Don't fall for the
30:47
Speaker 2: pressure of like, oh, you have to do this now,
30:49
Speaker 2: or you know. I had a customer of the day
30:50
Speaker 2: that she says she went to a dealership and this
30:53
Speaker 2: is a family friend, and she said she's like calling
30:55
Speaker 2: me in a panic. She's like, they're telling me, if
30:57
Speaker 2: I don't do today, I'm going to lose that. On
30:58
Speaker 2: these incentives, I'm going to lose that this And I
31:00
Speaker 2: understand the dealership is trying to sell the urgency, but
31:03
Speaker 2: there's a way to go about that. And you don't
31:05
Speaker 2: have to be that type of person where you're you know,
31:07
Speaker 2: jamming somebody up or you're like, you know, high pressure
31:11
Speaker 2: sales tactics. I don't like that. I've never done it.
31:13
Speaker 2: I've never done business like that. Now. It's important to
31:17
Speaker 2: know a good deal when you have it in front
31:19
Speaker 2: of them. I tell people all the time, it's important
31:20
Speaker 2: to negotiate a good deal it's more important to know
31:23
Speaker 2: when you have a good deal because believe it or not.
31:25
Speaker 2: As a customer, you can out negotiate yourself, meaning hey,
31:31
Speaker 2: sometimes you may be at the bottom and you just
31:33
Speaker 2: keep going, keep going, keep going, and the dealership says, hey,
31:36
Speaker 2: look at this point, there's nothing more we can do.
31:38
Speaker 2: You know, we're gonna move on from this. And then
31:41
Speaker 2: you feel like, oh, they're gonna they're gonna come get me,
31:43
Speaker 2: like they're gonna come grab me or you know. And
31:45
Speaker 2: sometimes they do, believe or not, but sometimes they don't,
31:48
Speaker 2: and you there is a chance that you can miss
31:51
Speaker 2: out on an incentive that goes away because programs change
31:54
Speaker 2: on a month to month basis. The car business is
31:57
Speaker 2: a month to month industry where incentives and programs come out.
32:02
Speaker 2: Normally it's every month. Sometimes some brands will change mid
32:05
Speaker 2: month and put an incentive out there, so it's again,
32:07
Speaker 2: it's tricky. It's I understand why it could be overwhelming
32:12
Speaker 2: for some people. So that's why we kind of do
32:14
Speaker 2: what we do in helping navigate customers through the process.
32:18
Speaker 3: It's good to have somebody like you because a lot
32:21
Speaker 3: of us we don't have the greatest negotiating skills and
32:24
Speaker 3: so for the most part, you know this is even
32:27
Speaker 3: an investment, Like we know, hey, I don't want to
32:29
Speaker 3: play the MSRP or the sticker price per se.
32:33
Speaker 2: Well, during the pandemic, people done to play pay MSRP
32:37
Speaker 2: during during the pandemic, Like if you can get a
32:39
Speaker 2: car MSRP, you were good. Like that's the only time
32:42
Speaker 2: that customers were coming into the dealership saying I don't
32:44
Speaker 2: want to pay over MSRP, I'll pay MSRP when cars
32:47
Speaker 2: were going at fifty one hundred thousand dollars over MSRP
32:49
Speaker 2: for some vehicles.
32:50
Speaker 3: So what are some things that the average person should
32:54
Speaker 3: know when trying to negotiate against the dealers? To I know,
32:58
Speaker 3: it feels overwhelming, right, Like you guys have the numbers,
33:00
Speaker 3: you know the cars, you know, you know the hidden
33:03
Speaker 3: fees which we'll get into.
33:05
Speaker 1: What should we know?
33:06
Speaker 3: What are the things that we should be asking as
33:08
Speaker 3: the everyday common folk coming into the dealership.
33:11
Speaker 2: So a couple of things. Let's talk about your trade. Okay,
33:15
Speaker 2: this is one tip that I give consumers whenever they
33:19
Speaker 2: have a trade in vehicle or a family member whenever
33:21
Speaker 2: they have a trade in vehicle. Now, dealerships may not
33:24
Speaker 2: like this, but again, if you're doing business up front
33:26
Speaker 2: and you're being honest with customers, and you're doing business
33:28
Speaker 2: the right way, you shouldn't have an issue with this.
33:30
Speaker 2: The dealerships who are not going to like this, or
33:32
Speaker 2: the dealerships that are playing that shady business game. Right,
33:35
Speaker 2: when you go into a dealership and you have a
33:37
Speaker 2: trade in and the dealership tells you, hey, your cars
33:40
Speaker 2: worth twenty thousand dollars, whatever the number is, the next
33:44
Speaker 2: question you should ask is will you give me that
33:47
Speaker 2: price if I don't buy a car here? Okay? Now,
33:52
Speaker 2: what that does is that keeps the dealership honest. There's
33:56
Speaker 2: the thing what's called over allowing. Right, let's just say
33:58
Speaker 2: I have room on my new car price. Right, Like
34:01
Speaker 2: I can come down three or four thousand dollars on
34:04
Speaker 2: a vehicle, but right now I'm at sticker price, and
34:07
Speaker 2: I tell you the car is you know, I look
34:09
Speaker 2: at the vehicle's value and it's worth eighteen but I
34:11
Speaker 2: know you want twenty. First, I say, listen, okay, I'll
34:14
Speaker 2: give you twenty thousand dollars for your vehicle if we
34:16
Speaker 2: can do a deal today. And you may say, you
34:18
Speaker 2: know what, done. Let's do it now. The truth is,
34:21
Speaker 2: did you get a really good deal in a new
34:22
Speaker 2: car or did you get the right number on your
34:24
Speaker 2: trade in? Right? You didn't get either of them. The
34:27
Speaker 2: real number on your car is the eighteen thousand dollars.
34:30
Speaker 2: I tell people all the time, don't be emotionally attached
34:32
Speaker 2: to your trade in. And I ask customers all the time,
34:35
Speaker 2: you know, are you emotionally attached to your car? And
34:37
Speaker 2: they're like, yeah, I'll be honest with you. I am.
34:41
Speaker 2: Because the value of the value, the value of the
34:43
Speaker 2: vehicle is the value of the vehicle, plain and simple,
34:44
Speaker 2: it goes. It's not we don't look at it as like, hey,
34:47
Speaker 2: you raised your kids in that family. We don't look
34:49
Speaker 2: at it like that. We look at it as, hey,
34:51
Speaker 2: there's a value based on your ven number, the mileage,
34:54
Speaker 2: the condition of your car, and the system's going to
34:56
Speaker 2: put a number on that car based on what they're
34:59
Speaker 2: selling for at this time. That's it. It's nothing personal.
35:05
Speaker 2: Like I said, be more information you have, you can
35:08
Speaker 2: go online. You can go to sites like car max
35:10
Speaker 2: or Carvana and punching your information and they will give
35:14
Speaker 2: you a number on your car. They will give you
35:16
Speaker 2: a value of your vehicle. Now, everybody's going to look
35:18
Speaker 2: at your vehicle a little bit differently. Right. It's like
35:20
Speaker 2: if I have ten of those cars on my lot,
35:23
Speaker 2: I may look at it as like, all right, I
35:25
Speaker 2: may have to give them a little bit less so
35:26
Speaker 2: I can help move this vehicle. So those are things
35:28
Speaker 2: you have to factor into the equation. But be open
35:31
Speaker 2: minded when you're looking. When you're going into a dealership
35:34
Speaker 2: to buy a car, you want to have a budget
35:37
Speaker 2: in mind right where you need to be, like your
35:39
Speaker 2: comfort zone or where you're you know what the max
35:42
Speaker 2: is you're willing to go. But keep that information in
35:44
Speaker 2: your pocket, right in your back pocket. Don't rush to
35:48
Speaker 2: tell the dealership when a salesperson asks you, well, what's
35:50
Speaker 2: your budget? I don't know yet. I want to I
35:54
Speaker 2: want to see the car. I want to see if
35:56
Speaker 2: it's the right fit for me, my family, and I'd
35:58
Speaker 2: like to get some information. That's the answer when you
36:01
Speaker 2: come out and you say my budget's you know, five
36:03
Speaker 2: hundred dollars a month.
36:04
Speaker 1: Yes, what you did?
36:04
Speaker 2: You just set either the ceiling or the floor for
36:06
Speaker 2: the negotiation. Right, So one I tell salespeople all the time,
36:11
Speaker 2: don't ask that question. Don't ask customers what their budget is.
36:15
Speaker 2: There's no reason to do that. The truth is, you
36:17
Speaker 2: want to give your number up front, right, the dealership
36:20
Speaker 2: should be giving you the first number and telling you
36:22
Speaker 2: what the vehicle's going for, and then you start the negotiation,
36:25
Speaker 2: plain and simple.
36:27
Speaker 4: What's some tactics that dealerships use to upsell bars?
36:32
Speaker 2: Tactics is a tricky word, strategies. So you know, listen,
36:39
Speaker 2: it's the dealership is there to make to do business right.
36:43
Speaker 2: I don't believe in you know, the dealership is not
36:45
Speaker 2: there to rip you off, and I don't think for
36:46
Speaker 2: the most part, most dealerships are there to rip you off.
36:49
Speaker 2: They're there to sell you a product. Now, whether the
36:51
Speaker 2: product makes sense to you or not, that's the decision
36:54
Speaker 2: you have to make. Right, Like rim entire protection, you
36:59
Speaker 2: guys have cars and that some of them may need
37:02
Speaker 2: rim and tire protection, some of them may not. You
37:05
Speaker 2: have to determine if it makes sense. Let's say, you know,
37:08
Speaker 2: on certain vehicles, Let's say you have a vehicle that
37:11
Speaker 2: has a nicer rim or more expensive rim and tire,
37:14
Speaker 2: the rim and tire insurance is going to be higher.
37:16
Speaker 2: Let's just say it's you know, two to three thousand
37:18
Speaker 2: dollars for it. You have to ask yourself, well, wait
37:20
Speaker 2: a minute, if I get if the tire is eighteen
37:24
Speaker 2: the rim and tires, you know, eighteen hundred dollars for
37:26
Speaker 2: a rim and tire, How many flat tires am I
37:29
Speaker 2: going to have before this kind of pays off? It?
37:31
Speaker 2: Maybe just two? And you know that based on where
37:33
Speaker 2: you live and how you drive, you've had twelve flat
37:36
Speaker 2: tires in the last year. Tire insurance is a great investment.
37:40
Speaker 2: Ding and den protection are things that you know can
37:42
Speaker 2: be sold aftermarket items right that the dealership may sell you.
37:46
Speaker 2: If you're someone who you know your car gets beat
37:48
Speaker 2: up during your lease and at the end of the lease,
37:50
Speaker 2: you don't want to have that big bill. That may
37:52
Speaker 2: be something you want to consider. The warranty. If you
37:55
Speaker 2: plan on keeping this car a long time, you may
37:58
Speaker 2: want to buy that additional warranty of on. Now again
38:01
Speaker 2: doing your research finding out what those warranties should be
38:04
Speaker 2: selling for. Maybe even if you can get them outside.
38:07
Speaker 2: Sometimes you can get them outside or after the fact
38:10
Speaker 2: you can. You can look into that. But the dealership
38:13
Speaker 2: is not there, and I should say shouldn't be there
38:16
Speaker 2: to rip you off. I'll be honest with you. I
38:18
Speaker 2: can't stand when dealerships do that because it gives me
38:21
Speaker 2: a bad rap. Right, that's the industry I'm in. So
38:25
Speaker 2: when people or dealerships are taking advantage of consumers, that
38:30
Speaker 2: really aggravates me, Like, there's no reason to do that.
38:33
Speaker 2: If you do business like I said, if you're honest,
38:36
Speaker 2: you're upfront, and you're knowledgeable, you can make plenty of
38:40
Speaker 2: money in the industry because if you take care of people,
38:42
Speaker 2: they'll send them to you. They'll send their friends and
38:44
Speaker 2: family to you, as you guys have right, you guys,
38:47
Speaker 2: I've sold cars to multiple family members of yours because
38:51
Speaker 2: I think you know that. Hey one, I'm knowledgeable and
38:53
Speaker 2: I'm not gonna I've never had to hide my face
38:56
Speaker 2: in a restaurant because I saw a customer that I
38:59
Speaker 2: took advantage of. I don't have to do that. On
39:01
Speaker 2: the contrary, I have customers send me over a bottle
39:04
Speaker 2: of wine when I'm sitting in the restaurant because they
39:05
Speaker 2: saw me and they're like, oh, that's the guy who
39:07
Speaker 2: hooked me up in my car. Right, So do business
39:10
Speaker 2: the right way. It's a long term business. This I
39:12
Speaker 2: would put this out there for any young salespeople who
39:15
Speaker 2: are in the industry. This is a long term career,
39:19
Speaker 2: all right. The industry can create you an incredible life.
39:23
Speaker 2: I have wife, beautiful kids, and it's all because of
39:29
Speaker 2: the car business. You guys know, I'm a ged student. Right,
39:32
Speaker 2: We're gonna get off the topic a little bit. I'm
39:33
Speaker 2: a ged student. I grew up East New York, Brooklyn,
39:38
Speaker 2: Queens area and immigrant parents worked hard my whole life.
39:44
Speaker 2: Had a kid when I was found out I was
39:45
Speaker 2: having a baby, a nineteen years old, twenty years old,
39:47
Speaker 2: had a baby, and I got into the car business.
39:50
Speaker 2: And when I did, I said, you know what, I'm
39:51
Speaker 2: gonna be honest the upfront of be knowledgeable, take care
39:54
Speaker 2: of my clients. And the first customer I ever sold
39:56
Speaker 2: a car to he still buys cars for me today,
40:00
Speaker 2: twenty something years ago. You know, some of my best
40:02
Speaker 2: friends in this world are people that I met through
40:04
Speaker 2: selling them cars. And it's a great career if you
40:08
Speaker 2: do it the right way. So that's why I say
40:10
Speaker 2: when these some of these dealerships that do underhanded business
40:13
Speaker 2: or sleazy business, shame on them because they make it
40:16
Speaker 2: bad for everybody else. And this is why we have
40:18
Speaker 2: to have these kind of calls.
40:19
Speaker 1: So that's important. Man. Now you speaking the language.
40:23
Speaker 3: Man, I've sat in that finance manager's office a few
40:26
Speaker 3: times after you've signed your lease and then it's like, wait,
40:29
Speaker 3: you know, here comes the dink and duck insurance and
40:32
Speaker 3: the windshield protect the insurance, and the rim insurance, and
40:35
Speaker 3: then your power mats. And I'm like, yo, do we
40:38
Speaker 3: really need all this? And you end up using none
40:40
Speaker 3: of it? And you're like, why did I do that?
40:41
Speaker 1: Next time? I'm not going to next time happens and
40:44
Speaker 1: you do it again.
40:45
Speaker 2: So that's just it is. When I talked about being
40:47
Speaker 2: prepared and going in there, you know, and checking your ego, right,
40:50
Speaker 2: be your your emotions. Also, like it's a car. Okay,
40:55
Speaker 2: Like it's a car, So listen over the mats. Yeah,
40:59
Speaker 2: get over the mats, especially if your car gets dirty
41:01
Speaker 2: getting in and out of the car. Get to old
41:02
Speaker 2: the match. It makes sense now, you know, as far
41:05
Speaker 2: as other items. Don't feel like you're being gent up.
41:07
Speaker 2: And the biggest thing is don't be afraid to get
41:09
Speaker 2: up and walk away. Don't feel like, hey, I've already
41:12
Speaker 2: sat here for six hours. You know, it's only twenty
41:16
Speaker 2: bucks a month. More like, if it's something you don't need,
41:19
Speaker 2: don't be afraid to say, hey, listen, you know what
41:20
Speaker 2: this is now getting a little bit overwhelming. I think
41:24
Speaker 2: I'm going to go. I'll come back in another time
41:26
Speaker 2: and see how the situation changes. So again, some dealerships
41:30
Speaker 2: are not going to like this conversation, but I'll be
41:32
Speaker 2: honest with you, I think it's necessary for them and
41:35
Speaker 2: for the consumer.
41:36
Speaker 3: You talked about some of the hidden fees that'll sneak
41:40
Speaker 3: up on us. One of the things in the lease
41:41
Speaker 3: is that there's an early termination fee, and then there's
41:44
Speaker 3: a fee at the end, at the end of your leaset.
41:47
Speaker 3: Talk about that because I don't think people go into it.
41:48
Speaker 3: They say, I'm gonna do this lease. I'm gonna do
41:50
Speaker 3: it for thirty six months, thirty nine months, and they
41:53
Speaker 3: don't take into account for some of the other things
41:54
Speaker 3: that they're going to pay when at least is over.
41:56
Speaker 2: So it's not a hidden fee. It's actually on your contract.
41:59
Speaker 2: This is fee is on the contract. The disposition fee
42:02
Speaker 2: is a fee to turn the vehicle back in. It's
42:04
Speaker 2: basically basically for processing the end of your least termination right.
42:09
Speaker 2: They have to close out the account. They have to
42:10
Speaker 2: pick up the vehicle, things of the nature, right, so
42:13
Speaker 2: it's spilled out. It's anywhere between three hundred ninety five
42:15
Speaker 2: dollars to five hundred and ninety five dollars. But there's
42:17
Speaker 2: a box on the top of the of the contract
42:20
Speaker 2: that will say disposition fee. Again, this is why I
42:23
Speaker 2: said it's important to not just have the person who's
42:25
Speaker 2: signing you out to say, hey, this is your payment,
42:28
Speaker 2: that's your vein number, sign right here. That's not how
42:30
Speaker 2: it works. I want to go over the contract now.
42:32
Speaker 2: You don't have to read the back of it. Those
42:34
Speaker 2: are typical. I mean, those contracts are basically the same
42:37
Speaker 2: for every lease. But as long as you're going over
42:40
Speaker 2: the numbers, like what's how many miles per year am
42:43
Speaker 2: I getting? That's huge. I can't. I can't tell you
42:45
Speaker 2: how many people have told me, Well, the dealership told
42:47
Speaker 2: me I was getting twelve thousand miles a year, but
42:49
Speaker 2: my contract says ten. Well did you did you ask
42:52
Speaker 2: them when you signed it?
42:52
Speaker 4: Well?
42:53
Speaker 2: No, I didn't. I just signed Stop it. This is
42:55
Speaker 2: a big purchase. Take the time to read the contract,
42:59
Speaker 2: make sure it's exactly what you expected, Okay, and again,
43:02
Speaker 2: don't be afraid to get up and say, hey, listen,
43:04
Speaker 2: you know what, this is not what we talked about.
43:06
Speaker 2: I'm gonna go. I'm gonna you know, maybe I'll come
43:09
Speaker 2: back if that makes sense.
43:13
Speaker 4: Sorry, all right, so let's let's all right, So let's
43:16
Speaker 4: let's have this deep dive into this conversation about leasing
43:19
Speaker 4: and finance. And I know we talked about it briefly,
43:20
Speaker 4: but yeah, that's that's that's the question that people always
43:23
Speaker 4: ask all the time.
43:27
Speaker 2: So again, personal preference. This is all based on your
43:31
Speaker 2: personal experience and what you need the vehicle for. Right,
43:34
Speaker 2: there is no right or wrong leasing or financing. You know,
43:37
Speaker 2: some people I get a lot of people that say, well,
43:39
Speaker 2: I drive too many miles a year to lease. I
43:43
Speaker 2: personally think that if you are doing more mileage, let's
43:47
Speaker 2: say fifteen eighteen thousand miles a year, you are better
43:51
Speaker 2: off and you want a new car, right, you are
43:54
Speaker 2: better off leasing the vehicle. I know this is contrary
43:57
Speaker 2: to what most people will tell you. Now you can
44:02
Speaker 2: do leases that are Some banks even offer seventy five
44:05
Speaker 2: hundred miles a year, ten twelve, fifteen, eighteen, twenty thousand
44:10
Speaker 2: miles year leases. Once you get into that twenty thousand
44:12
Speaker 2: miles of year lease or over that, normally the residual value.
44:17
Speaker 2: So the estimated value of the vehicle at the end
44:19
Speaker 2: of that lease drops significantly, right, because the vehicle is
44:23
Speaker 2: going to have a lot of mileage, and the bank understands, hey,
44:25
Speaker 2: this car is not going to be worth much when
44:26
Speaker 2: it comes back, so they're going to drop that residual value.
44:30
Speaker 2: And remember you're paying on the depreciation the difference between
44:33
Speaker 2: the selling price and the residual so your payments are
44:36
Speaker 2: going to be higher, but you're using the car more.
44:38
Speaker 2: And yes, it is like renting a car. Okay, people say, oh,
44:41
Speaker 2: it's listen, it's like it's like renting a car. Never
44:43
Speaker 2: own it, Well, you don't own We talked about this
44:45
Speaker 2: last time. You don't own the car when you finance it. Right,
44:48
Speaker 2: when you have a seventy two month finance. You don't
44:50
Speaker 2: own that car until you make that last payment. And
44:52
Speaker 2: guess what, most people never get to that point where
44:54
Speaker 2: they make the last payment, either they traded in early
44:57
Speaker 2: or they you know, they sell the vehicle the vehicle's total.
45:00
Speaker 2: So the truth is, you never own the car anywhere
45:03
Speaker 2: on a lease when you are doing that high mileage.
45:07
Speaker 2: So I asked this question, if you were doing your mortgage,
45:11
Speaker 2: would you want an adjustable rate mortgage or a fixed
45:13
Speaker 2: rate mortgage?
45:15
Speaker 1: Fix rate?
45:16
Speaker 2: Why?
45:18
Speaker 3: Because I know it's going to be the same payment
45:19
Speaker 3: consistently throughout the term of the lease.
45:22
Speaker 2: Same thing on the lease, right on the lease. It's
45:24
Speaker 2: like having a fixed rate mortgage. I know what my
45:27
Speaker 2: true cost of ownership is. Meaning if I'm putting fifteen
45:33
Speaker 2: thousand miles a year on my lease and my friend
45:36
Speaker 2: is putting fifteen thousand miles a year on their finance,
45:42
Speaker 2: the depreciation, the depreciation of that vehicle is going to
45:45
Speaker 2: be accelerated because we're driving the cars more. Right. I
45:48
Speaker 2: don't really care that it's being accelerated because I just
45:52
Speaker 2: know what my payments are going to be every month.
45:54
Speaker 2: I know I'm going to have X amount of services
45:57
Speaker 2: due between those three years or however long I lease
45:59
Speaker 2: my car. This person, my friend has to worry about, Hey,
46:03
Speaker 2: what is my car worth now? And you really never know.
46:05
Speaker 2: It's all a guess, right, especially if something happens with
46:09
Speaker 2: the vehicle. A new model comes out, maybe the technologies
46:13
Speaker 2: is improved in the vehicle, right, so their value of
46:16
Speaker 2: the vehicle. That's something they have to be concerned with.
46:18
Speaker 2: I don't have to be concerned with that because I
46:20
Speaker 2: know at the end of my three years, I'm just
46:23
Speaker 2: going to give the car back and get another one.
46:25
Speaker 2: And not to mention, when you're financing the vehicle, you're
46:28
Speaker 2: financing the entire price of the car, okay, plus tax
46:33
Speaker 2: on the entire price of the car. On a lease,
46:36
Speaker 2: you're only paying the depreciation and you're only paying tax
46:39
Speaker 2: on the lease portion. Now this varies from state to state.
46:42
Speaker 2: Some states will have you pay taxes on the whole vehicle.
46:45
Speaker 2: Some states, like New York, it's based on the monthly
46:47
Speaker 2: payment times the term. So let's say it's thirty six months.
46:50
Speaker 2: So let's just say the payment's five hundred times thirty
46:53
Speaker 2: six months times whatever your tax rate is in that state.
46:56
Speaker 2: That's how much you paying taxes. So there are benefits
46:59
Speaker 2: to leasing when you are doing a lot of mileage.
47:03
Speaker 2: The other thing is if you are using it for
47:05
Speaker 2: business purposes. People don't understand that you don't necessarily have
47:08
Speaker 2: to put the vehicle in your name, in your in
47:10
Speaker 2: your company name. If you are let's say the vehicle
47:13
Speaker 2: is under six thousand pounds. You can still write that
47:15
Speaker 2: vehicle off, but you're writing it off differently. You're writing
47:18
Speaker 2: it off, you're writing off your mileage, usage, things of
47:20
Speaker 2: the nature. So you got to be very careful with that.
47:22
Speaker 2: You have to track it. You have to be accurate
47:24
Speaker 2: with it because the last thing you want to do
47:26
Speaker 2: is if you get audited, they will come check, Hey,
47:28
Speaker 2: what are you using it? You know, where's your logs
47:30
Speaker 2: as far as your mileage? Where were you going that
47:33
Speaker 2: you're tracking this If some if you're going to deduct
47:36
Speaker 2: one hundred percent of your mileage, you got to be
47:39
Speaker 2: able to show that that's what you use the vehicle for.
47:41
Speaker 2: A lot of people don't know that. You have to
47:43
Speaker 2: be very careful with the new laws. I know that's
47:45
Speaker 2: something you want to talk about. The new laws. As
47:47
Speaker 2: far as tax incentives, those have changed drastically. So again,
47:52
Speaker 2: financing is great for some people if you plan on
47:54
Speaker 2: keeping the car, you know, seven, eight, nine, ten years,
47:57
Speaker 2: and you know historically you drive the car and you
48:00
Speaker 2: you know, you run it into the grounds or you
48:01
Speaker 2: give it to your kids or whoever it is. If
48:05
Speaker 2: you do buy the car and they do have really
48:07
Speaker 2: good interest rates, I would say that's good. That's a
48:10
Speaker 2: good reason to do it. But if you're looking, if
48:13
Speaker 2: you normally ask people how often do you change cars,
48:15
Speaker 2: then like, oh, every three to four years. But I
48:17
Speaker 2: don't like the lease. I'm like, well, you kind of
48:19
Speaker 2: are leasing, but you know you're financing and then just
48:22
Speaker 2: you know, rolling negative equity into the new car, So
48:24
Speaker 2: you're better off leasing up front.
48:26
Speaker 1: Yeah, because let's talk about that.
48:27
Speaker 3: And I think probably twenty twenty one, and shout out
48:30
Speaker 3: to miss Business, we talked about the six thousand pound
48:33
Speaker 3: rule and how you can write up one hundred percent
48:36
Speaker 3: towards if it's in your business name.
48:38
Speaker 1: But that's changed.
48:40
Speaker 3: And this is something that I discovered when we were
48:41
Speaker 3: trying to get a car maybe a year ago and
48:44
Speaker 3: I was looking for that same six thousand pound rule.
48:47
Speaker 1: It went from one hundred percent one year.
48:49
Speaker 3: I know in twenty twenty six it goes down to
48:50
Speaker 3: eighty percent, and then by twenty twenty is it twenty
48:54
Speaker 3: twenty nine it phases out like you won't be able
48:56
Speaker 3: to use that same tax incentive. So we actually did
49:00
Speaker 3: a different strategy this this year with the car and said,
49:02
Speaker 3: all right, we're gonna lease it and we're gonna go
49:05
Speaker 3: ev talk about the differences incentives of using your business
49:09
Speaker 3: for the tax incentive use and getting a vehicle.
49:12
Speaker 2: So let's be clear. I'm not a tax attorney or
49:15
Speaker 2: an accountant, so you definitely want to speak to whoever
49:18
Speaker 2: your accountant is. And you did this too, speak to
49:20
Speaker 2: your account before. If this is you know, one of
49:23
Speaker 2: the factors in you buying a car, make sure you
49:25
Speaker 2: speak to your accountant. Look up the information, and like
49:29
Speaker 2: I said, be prepared when you are doing this, because
49:31
Speaker 2: what I'm seeing and I've looked on the IRS website,
49:34
Speaker 2: I looked on there's another website called the Section one
49:36
Speaker 2: seventy nine dot org and they talk about it where vehicles.
49:41
Speaker 2: From my understanding now, they've dropped it to the amount
49:44
Speaker 2: that you can write off. It's also based on your usage,
49:48
Speaker 2: So the vehicle has to be used for fifty percent
49:50
Speaker 2: sorry over fifty percent of the usage has to be
49:54
Speaker 2: for business in order for you to write it off.
49:56
Speaker 2: And again this if you get audited, they're gonna come
49:59
Speaker 2: and they're gonna they want see those logs as far
50:01
Speaker 2: as how you're using that vehicle, right, and from my understanding,
50:04
Speaker 2: the limit now for twenty twenty five is the Section
50:08
Speaker 2: one seventy nine deduction is thirty one thousand, three hundred
50:11
Speaker 2: dollars for vehicles that are over seventy five thousand and
50:15
Speaker 2: greater than six thousand pounds. Okay, so now here's.
50:19
Speaker 4: How it works.
50:21
Speaker 2: If you're only using that vehicle for forty percent of
50:25
Speaker 2: the usage, is you're being used for business, then you
50:27
Speaker 2: can only write off that forty percent. It's not the
50:29
Speaker 2: whole vehicle anymore like it used to be. So again,
50:32
Speaker 2: very important that you're looking at that vehicles under six
50:35
Speaker 2: thousand pounds. So let's say your personal vehicle. If you're
50:37
Speaker 2: you know, you're not using a heavy duty vehicle. You're not,
50:39
Speaker 2: you're using those big SUVs. You can still write them off,
50:41
Speaker 2: but that number change for twenty twenty five to twenty thousand,
50:44
Speaker 2: four hundred, as long as the vehicle's being used for
50:48
Speaker 2: primarily for business users. Again, not a tax attorney, not
50:52
Speaker 2: an accountant. Definitely want to speak to your accountant and
50:55
Speaker 2: to make sure you're you're in line, because this is
50:58
Speaker 2: one thing you don't want to mess with when it
50:59
Speaker 2: comes to the irs, you know, to go buy a Bentley.
51:04
Speaker 2: Another thing that I found out as a factor is
51:06
Speaker 2: your your company has to show the at least the income,
51:11
Speaker 2: the taxable income for that year has to be over
51:14
Speaker 2: the amount of the vehicle. So you have to keep
51:16
Speaker 2: that in mind. There are a lot of factors. You know,
51:18
Speaker 2: to buy a Bentley. Because you have a company and
51:21
Speaker 2: you're showing on your tax returns that you only made
51:23
Speaker 2: sixty seventy thousand dollars, you know, it's not going to
51:26
Speaker 2: work out that way. It's not going to work out
51:27
Speaker 2: well for you.
51:28
Speaker 1: Talk about the EV incentive.
51:30
Speaker 2: Yeah, EV's are great opportunities for incentives for people who
51:33
Speaker 2: are looking for tax savings. You know, in New York
51:37
Speaker 2: there was a seventy five hundred dollars rebate. Again, that's
51:39
Speaker 2: starting to change based on the on the supplying demand
51:42
Speaker 2: of EV vehicles in New Jersey. At one point, if
51:47
Speaker 2: you registered an electric vehicle in the state of New Jersey,
51:52
Speaker 2: it was you didn't pay tax at all, sales tax
51:54
Speaker 2: on the vehicle. Now that's changed now I think it's
51:57
Speaker 2: about it's a I think about fifty percent you would
51:59
Speaker 2: pay of your tax revenue. I thing it's up to
52:02
Speaker 2: thirty five hundred dollars. But again, this is a moving target.
52:04
Speaker 2: This is something that continues to change, so you have
52:07
Speaker 2: to do the research.
52:10
Speaker 4: All right, let's go to the trade in value of cars.
52:17
Speaker 1: Again.
52:17
Speaker 2: When it comes to trade ins, I recommend do your
52:19
Speaker 2: research online. Don't one, don't be emotionally attached to your car. Okay,
52:24
Speaker 2: if you are emotionally attached to your car, keep it
52:26
Speaker 2: or give it to somebody in the family who can
52:28
Speaker 2: use it and benefit from it, especially if it's there's
52:31
Speaker 2: not a lot of value in it. But if it
52:33
Speaker 2: is something you want to trade in, do your research first.
52:35
Speaker 2: Go on car CarMax, car facts, I mean, carbon of
52:38
Speaker 2: these websites and they'll actually if you punch in your
52:41
Speaker 2: license plate, your vend number, your knowledge and be honest
52:43
Speaker 2: about the condition of the vehicle. Right, don't put on
52:46
Speaker 2: there that your vehicle is, you know, excellent condition when
52:49
Speaker 2: it's you know, had some accidents, or you smoke cigarettes
52:53
Speaker 2: in the car, or you know your dog is ripped
52:55
Speaker 2: up the back seat. I've seen crazy things and people
52:57
Speaker 2: are like, oh no, no, that's nothing. Okay, it is
53:00
Speaker 2: your dog ripped up the back seat of the car.
53:02
Speaker 2: So be honest on these things, and that's going to
53:05
Speaker 2: give you an idea as far as what the value
53:06
Speaker 2: of your car is. Don't go by what they're selling
53:09
Speaker 2: for because a lot of customers will do that. They're like, well,
53:11
Speaker 2: I see that they're selling for X amount of dollars
53:14
Speaker 2: out of other dealerships. That is totally irrelevant to you, okay,
53:18
Speaker 2: because one, you don't know what the dealership one had
53:22
Speaker 2: to pay for that car. Meaning if they bought the
53:24
Speaker 2: car and it's been sitting on there a lot, maybe
53:26
Speaker 2: they bought it when the values were higher and now
53:28
Speaker 2: the values have come down. So even though the customer
53:31
Speaker 2: may be asking for a certain amount for a car,
53:34
Speaker 2: that doesn't mean they're going to get that value for
53:35
Speaker 2: the car. Right. The customers are going to come in
53:37
Speaker 2: and want to negotiate it and maybe, after you know,
53:41
Speaker 2: the couple of months of that car sit in a lot,
53:42
Speaker 2: they may take a loss in that vehicle. Believe it
53:44
Speaker 2: or not, dealerships do take losses. For some reason, people
53:48
Speaker 2: don't want to believe that a dealership is ever going
53:50
Speaker 2: to take a loss. It does happen, But don't go
53:54
Speaker 2: by what the cars are listed for online. That is
53:57
Speaker 2: not the value of your vehicle. Now, if you want
53:59
Speaker 2: to go and sell the car to somebody and you
54:02
Speaker 2: have people come into your house and test driving the
54:05
Speaker 2: car and waiting for people to come bring a check
54:07
Speaker 2: for the car. Then you can try to list it
54:09
Speaker 2: for that price online. But truth be told, if a
54:13
Speaker 2: customer is going to be spending that amount of money
54:16
Speaker 2: for a vehicle, they're probably more likely to go to
54:17
Speaker 2: a dealership where the dealership can offer them financing, warranties
54:21
Speaker 2: and things of that nature. So again, don't be emotionally
54:24
Speaker 2: attached to your car. Do the research online when you
54:26
Speaker 2: go to the dealership. I remember that that very important question.
54:30
Speaker 2: Once you do mention that you have a trade and
54:34
Speaker 2: the dealership does give you a number, so important to
54:36
Speaker 2: ask the question, hey, quick question, if I don't buy
54:40
Speaker 2: a car here, will you still give me that number
54:42
Speaker 2: for my car? Like will you write me a check
54:43
Speaker 2: for that car? If the dealership says no, say okay,
54:47
Speaker 2: how much will you write me a check for? If
54:49
Speaker 2: I give you that car right now and I don't
54:51
Speaker 2: buy another car from you today? That's the real number
54:54
Speaker 2: for your car.
54:56
Speaker 4: What's the cars that appreciate the fastest and what's the
54:59
Speaker 4: car that hold their value the most?
55:02
Speaker 2: So cars that appreciate very quickly, at cars with accidents,
55:04
Speaker 2: car packs, things, of the nature. That's the first one.
55:06
Speaker 2: Right now, there's different brands that don't hold value or
55:11
Speaker 2: in cars that do hold value, right believe it or not,
55:13
Speaker 2: Toyota's Hondas, those hold incredible value. Even now we're seeing
55:17
Speaker 2: it where the value of those vehicles don't. Don't just
55:19
Speaker 2: think it's just Mercedes Bend. Some of the Mercedes Benz
55:22
Speaker 2: vehicles drop in value very quickly, but typically those you know, again,
55:26
Speaker 2: this is something you can do. Research on Lexus vehicles
55:28
Speaker 2: hold great value, Mercedes Benz does BMW's do again, you
55:33
Speaker 2: want to do the research and and kind of check
55:35
Speaker 2: into what the vehicles are selling for compared to what
55:38
Speaker 2: This is very easy to access the information. You can google,
55:41
Speaker 2: like you know, highest value vehicles or vehicles that hold
55:45
Speaker 2: their value. So it's a it's a it's a tricky situation.
55:50
Speaker 2: Porsche holds incredible value. I recommend some some of my
55:53
Speaker 2: big clients to you know that are looking for cars.
55:55
Speaker 2: If you're looking for something that's going to hold value
55:57
Speaker 2: and you're going to keep it for a while, some Porsche,
56:00
Speaker 2: so you can actually you know, buy them and then
56:02
Speaker 2: they'll actually increase in value. So but yeah, that's what
56:05
Speaker 2: you're gonna do. You'll do the research, look online, see
56:07
Speaker 2: what cars like Nissans are dropping in value. Some of
56:13
Speaker 2: the cars, you know, the Volkswagens typically hold good value.
56:16
Speaker 2: But yeah, again, we're going to do the research and check.
56:18
Speaker 3: Online because I've always wondered this, right, like, we don't
56:22
Speaker 3: want to get low balled if we're doing to trade in.
56:24
Speaker 1: But what happens with what does the dealership do?
56:27
Speaker 3: Right, let's just hypothetically have a twenty sixteen BMW I'm
56:32
Speaker 3: trading in because I'm getting a new car. They're not
56:34
Speaker 3: going to put that on their lot. It's kind of
56:36
Speaker 3: outdated for their certified pre owned situation. So where where
56:40
Speaker 3: does that model go? Where does my car go?
56:42
Speaker 2: So great, great question. So a lot of these dealerships
56:46
Speaker 2: will work with wholesalers who they who will buy the
56:49
Speaker 2: cars from them. Okay, so that's where those cars will
56:53
Speaker 2: end up, or they you know, maybe they have a
56:56
Speaker 2: dealership in their group that sells used cars, I believe
57:00
Speaker 2: it or not, sometimes a dealership. And I always recommend
57:02
Speaker 2: this to the dealerships. If you have a nice car,
57:04
Speaker 2: even if it's you know, a car that's not in
57:06
Speaker 2: my lineup right, I'd say hey, listen, hold on to it,
57:09
Speaker 2: put on the lot. If it's a clean car, it's
57:11
Speaker 2: a nice car. You may have a client who may
57:14
Speaker 2: be looking for a second vehicle or a vehicle for
57:16
Speaker 2: their kids, so they may hold on to it. But
57:17
Speaker 2: normally it goes to wholesalers who are willing to write
57:21
Speaker 2: to check.
57:21
Speaker 4: For the car.
57:22
Speaker 1: Here's another sneaky one, and this is kind of like
57:25
Speaker 1: the exit row.
57:26
Speaker 3: Right, Like I know Shanty talks about when we couldn't
57:28
Speaker 3: get first class, you sit in the exit row because
57:31
Speaker 3: you know you got some leg room. Talk about the
57:34
Speaker 3: people who actually buy the test drive cars because they
57:38
Speaker 3: have been used, it's relatively new and in great condition.
57:42
Speaker 1: Is that a strategy that you can use going into
57:44
Speaker 1: a dealership.
57:44
Speaker 2: I'm going to tell you something. So those are called demos, right,
57:48
Speaker 2: I bought demos my cars. Whenever I leased a car
57:51
Speaker 2: for me or my wife, I took demos because those
57:54
Speaker 2: cars are a lot of times they're written down, meaning
57:58
Speaker 2: every month when they put a car into let's say
58:00
Speaker 2: demo status or loaner service or one of the managers
58:03
Speaker 2: to driving the car. Normally those cars are written down.
58:06
Speaker 2: So there's a cost factor to having that done. And
58:08
Speaker 2: you own the car for a little bit less, so
58:10
Speaker 2: you can take advantage of some savings if you're not
58:12
Speaker 2: particular as far as like hey, I want this car
58:15
Speaker 2: with this feature and this color and this interior. If
58:18
Speaker 2: you're open to it and you want to deal, once
58:20
Speaker 2: you negotiated, say hey, listen, let me ask you a question.
58:22
Speaker 2: Do you have any demos that can help me save
58:23
Speaker 2: some money? Dealerships want to move those cars, right, So
58:27
Speaker 2: that's a that's definitely a great way to save money
58:30
Speaker 2: the cars you still have. Now, mind you going back
58:33
Speaker 2: to what I said as far as data first use,
58:35
Speaker 2: this is great for leasing if you're buying it. Remember
58:38
Speaker 2: the data first use is when that car went into service.
58:42
Speaker 2: So when that car started being used, and let's say
58:46
Speaker 2: the dealership, the dealership registered it as a loaner vehicle,
58:51
Speaker 2: that data first use, so that the time the clock
58:53
Speaker 2: on that warranty may have already started. So you want
58:56
Speaker 2: to ask this question, hey, how much time do I
58:57
Speaker 2: have left on that car? Because if that car has
58:59
Speaker 2: been in service for over a year, you may be
59:03
Speaker 2: losing out on a year of warranty on the vehicle.
59:05
Speaker 2: And again monetarily it may make it still may make
59:08
Speaker 2: sense to take it, especially if you're leasing the vehicle.
59:10
Speaker 2: But that's a great option. I recommend that all the time. Again,
59:13
Speaker 2: a lot of my cars. If I can save some money,
59:15
Speaker 2: I'm I'm listen. I've driven, I've driven all kinds of
59:19
Speaker 2: cars in my life. So at this point I want
59:22
Speaker 2: something that's reliable, safe for me, my family, and drives nice.
59:26
Speaker 2: I don't want to have to worry about it. So
59:28
Speaker 2: if I can save some money and and get the
59:31
Speaker 2: exit row instead of first class, and I guess I'll
59:33
Speaker 2: be in.
59:33
Speaker 1: The exit around We're going to the same place.
59:37
Speaker 2: You know, the whole play is going in the same place.
59:39
Speaker 2: But first class is nice. I'm not gonna lie. What
59:42
Speaker 2: about dealership language, sea dealership language, So terminology, terminology in
59:50
Speaker 2: the dealership. Things like when I mentioned earlier over allowing
59:54
Speaker 2: right residual value, the estimated value of the vehicle, and
59:58
Speaker 2: the least cap cost reduct the cap cost reduction. You'll
1:00:01
Speaker 2: see that it actually says capitalized cost on your contract.
1:00:06
Speaker 2: That is, that is the what the vehicle is being
1:00:10
Speaker 2: sold for the cap cost of the vehicle. A cap
1:00:12
Speaker 2: cost reduction is money to reduce that cap cost. Right,
1:00:17
Speaker 2: So these are things you want to look at when
1:00:18
Speaker 2: you're inside the dealership over allowance, when they're over allowing
1:00:24
Speaker 2: for your trade, meaning maybe there's money in the new
1:00:28
Speaker 2: car that they're using to show you a higher value
1:00:31
Speaker 2: for your your trade and vehicle. Things like that you
1:00:35
Speaker 2: want to make sure you're mindful of. I'm hearing a
1:00:38
Speaker 2: lot of people use the term smart lease. Smart leases
1:00:41
Speaker 2: are you know? I had two customers last month that
1:00:46
Speaker 2: called up and they said, my lease is up, and
1:00:48
Speaker 2: come to find out, they had what's called a balloon
1:00:50
Speaker 2: a balloon loan. So a balloon loan, I guess somebody
1:00:56
Speaker 2: pitched it as a lease. It's not technically a lease,
1:00:58
Speaker 2: it's a finance of the vehicle. But at the end
1:01:00
Speaker 2: of that finance there's this balloon payment, like a lump
1:01:02
Speaker 2: sum payment that you have to make or you can
1:01:05
Speaker 2: give the car back. But you don't. You're again, you're
1:01:08
Speaker 2: buying the whole vehicle, you're paying tax on the whole vehicle.
1:01:11
Speaker 2: It's just you have to be very careful with the
1:01:13
Speaker 2: terminology the dealership's using. Make sure you read your contracts.
1:01:17
Speaker 2: If there's a if there's a something you don't understand,
1:01:20
Speaker 2: don't be afraid to stop and say hey, what is
1:01:23
Speaker 2: that and then open up your phone and google it,
1:01:26
Speaker 2: like it's just search the information. You're in control as
1:01:30
Speaker 2: the consumer, right, and you have to make sure that
1:01:34
Speaker 2: again not to be confrontational, you know it, but you
1:01:39
Speaker 2: have to let people know, Hey, wait a second, I
1:01:41
Speaker 2: don't understand that. I need you know, better clarity on that.
1:01:46
Speaker 3: There was just I mean, obviously I've gotten the last
1:01:48
Speaker 3: few cars from you, but there were some dealerships and
1:01:51
Speaker 3: I don't know if they still use this the OTD
1:01:53
Speaker 3: the out the door price. Can you talk about what
1:01:56
Speaker 3: that is, man, so that they know that I don't
1:02:00
Speaker 3: know that, but I need to know that.
1:02:02
Speaker 2: That's what dealership shouldn't be using this term. It's I
1:02:05
Speaker 2: don't know if this is one of the things we
1:02:06
Speaker 2: teach in our training is speak the customer's language, right,
1:02:09
Speaker 2: not the internal language that we use.
1:02:11
Speaker 1: Right.
1:02:11
Speaker 2: Like if I set to you, you know that's tissue
1:02:13
Speaker 2: on the car. I've heard salespeople say the customers and
1:02:15
Speaker 2: dealerships are going to hear this if they hear this,
1:02:17
Speaker 2: and they'll be like, yeah, we do that. If a
1:02:20
Speaker 2: dealership said, hey, well listen, I'm selling you the car
1:02:21
Speaker 2: a tissue, would you know what that means. No, okay,
1:02:25
Speaker 2: so why use that terminal tissue? Is like the cost
1:02:28
Speaker 2: of the vehicle? Right, that's like what their invoices in
1:02:30
Speaker 2: the vehicle, right or their cost? Why use that terminology
1:02:34
Speaker 2: OTD or out the door price? That means including and
1:02:37
Speaker 2: it should mean because you don't want to come back
1:02:40
Speaker 2: and then it changes that out the door price is
1:02:43
Speaker 2: the price of the vehicle plus any taxes fees motor vehicle.
1:02:48
Speaker 2: That's that's the total amount. And this is what I
1:02:51
Speaker 2: tell people all the time. Make sure you say if
1:02:54
Speaker 2: you're leaving a dealership and you know, they tell you,
1:02:56
Speaker 2: all right, you're giving five thousand dollars down to say, hey,
1:02:58
Speaker 2: quick question, is that the total amount that I have
1:03:01
Speaker 2: to give you at signing? Okay? That's the out of
1:03:04
Speaker 2: door price. Is that the total number that I will
1:03:07
Speaker 2: be writing a check for. Let's say I'm paying the cash.
1:03:09
Speaker 2: Is that the total amount that I have to bring
1:03:11
Speaker 2: you a check for or are there any additional fees?
1:03:14
Speaker 2: They say, no, that's the out of door price. That's
1:03:16
Speaker 2: the outdoor price.
1:03:18
Speaker 1: All right, Now you get this this is the term.
1:03:21
Speaker 3: Unfortunately, one of our Macolose friends and you know this
1:03:26
Speaker 3: person as well, got into an accident, right, but they
1:03:29
Speaker 3: had what they call gap insurance. Can you talk about that?
1:03:33
Speaker 2: Huge very important. Now, gap insurance is very I can't
1:03:38
Speaker 2: tell you how important it is to have in your vehicle.
1:03:40
Speaker 2: Most New York State leases have gap insurance. So it's
1:03:47
Speaker 2: part of the acquisition fees normally factored into that, the
1:03:50
Speaker 2: acquisition fee, which is the bank fee you pay up front. Now,
1:03:55
Speaker 2: let's say your vehicle that you buy your cars thirty
1:03:57
Speaker 2: five thousand dollars, or you lease your vehicles thirty five
1:03:59
Speaker 2: thousand dollars, and halfway through the lease, the vehicle gets
1:04:03
Speaker 2: totaled and you owe the bank let's say twenty thousand dollars,
1:04:06
Speaker 2: but the book value has dropped and the book value
1:04:09
Speaker 2: is now seventeen thousand dollars. The insurance company will pay
1:04:14
Speaker 2: the seventeen thousand dollars because that's the value of the vehicle.
1:04:18
Speaker 2: What you need is gap, the gap insurance to kick
1:04:21
Speaker 2: in and pay the difference. All right, Any any money
1:04:25
Speaker 2: owed on top is covered on top of what the
1:04:28
Speaker 2: insurance company deems the vehicle's value. That is, gap insurance
1:04:32
Speaker 2: should cover. Now very important when you're financing a car,
1:04:36
Speaker 2: all right, dealerships will ask you if you want to
1:04:38
Speaker 2: purchase gap insurance. Gap insurance can range, you know, roughly
1:04:42
Speaker 2: in that five hundred dollars range, and you know, depending
1:04:44
Speaker 2: on how much they're selling it for. But if you're
1:04:46
Speaker 2: buying a vehicle and you're not putting any money down,
1:04:49
Speaker 2: it is I can't tell you how important it is
1:04:51
Speaker 2: to make sure you get gap insurance because if that
1:04:54
Speaker 2: vehicle is totaled or stolen and not recovered, the insurance
1:04:57
Speaker 2: company is going to pay the bank what the value
1:05:00
Speaker 2: the vehicle is, not what you owe. Okay, I want
1:05:03
Speaker 2: to be clear with that. They will pay the value
1:05:04
Speaker 2: of the vehicle, not what you owe. If you don't
1:05:07
Speaker 2: have gap insurance, you're on that hook, on the hook
1:05:10
Speaker 2: for that negative equity. And trust me, you're not gonna
1:05:14
Speaker 2: want to pay money for a car that you don't
1:05:16
Speaker 2: have anymore nobody does, but you're on the hook for
1:05:19
Speaker 2: it and it'll be on your credit if you don't
1:05:21
Speaker 2: pay it.
1:05:23
Speaker 4: Is it better to finance through a dealership or a
1:05:25
Speaker 4: third party?
1:05:27
Speaker 2: Great question. So I encourage people, like a lot of
1:05:30
Speaker 2: people if they're members of federal credit unions or you know,
1:05:32
Speaker 2: let's say they're a teacher or something like that. Check
1:05:34
Speaker 2: what their interest rates are. Check what their interest rate is,
1:05:37
Speaker 2: rus see what you qualify for. Make sure you know
1:05:40
Speaker 2: the parameters, because some credit unions will tell you, hey,
1:05:43
Speaker 2: we'll finance you up to X amount of dollars. But
1:05:46
Speaker 2: let's say the car you're actually buying is a couple
1:05:49
Speaker 2: of dollars over that. Then you want to you're gonna
1:05:50
Speaker 2: have to come up with money out of pocket for that, right.
1:05:53
Speaker 2: Sometimes credit unions have great interest rates, especially if you're
1:05:57
Speaker 2: an employee. You know, if it's making the funds right
1:06:00
Speaker 2: out of your paycheck, right, they may give you a
1:06:03
Speaker 2: better interest rate, But find out what the interest rate is.
1:06:06
Speaker 2: A lot of dealerships are actually set up with credit
1:06:09
Speaker 2: unions so they have that option as a bank to
1:06:12
Speaker 2: use and go to and say and process the loan
1:06:14
Speaker 2: through them. And it's the same as going through the
1:06:18
Speaker 2: through the credit union. Right, they're set up with them
1:06:20
Speaker 2: to do the loan directly with them. So have that information,
1:06:23
Speaker 2: have all the parameters in place, and then you can
1:06:25
Speaker 2: go to the dealership and say, hey, listen, you know
1:06:27
Speaker 2: what's your best rate that you can give me on
1:06:29
Speaker 2: this loan. Keep that information in your back pocket. And
1:06:31
Speaker 2: if they say, well I can get you six point
1:06:32
Speaker 2: four to nine percent. Okay, my bank got me five percent.
1:06:37
Speaker 2: Do you want to try to match it? Beat it?
1:06:40
Speaker 2: How do you want to work it out? Sometimes they're
1:06:42
Speaker 2: willing to say, hey, you know what, maybe we're set
1:06:44
Speaker 2: up with that bank, or maybe let me see if
1:06:45
Speaker 2: there's another bank that can give me a better rate.
1:06:47
Speaker 2: So I guess said keep the information in your back
1:06:49
Speaker 2: pocket when you are negotiating, when you are in that office,
1:06:52
Speaker 2: that finance office, and you're going over interest rate things
1:06:56
Speaker 2: of the nature, that's when you want to bring that
1:06:58
Speaker 2: information up and say, hey, listen, this is the the
1:07:00
Speaker 2: rate that I have for my credit union. What can
1:07:02
Speaker 2: you do again? Get their rate first, right, get their
1:07:05
Speaker 2: rate first in the dealership, and then you can say
1:07:07
Speaker 2: this is what I've got.
1:07:09
Speaker 3: I actually did that with a I think my second car.
1:07:12
Speaker 3: It was a used car, and so I got the
1:07:15
Speaker 3: price for it. I was like, okay, I'm not going
1:07:17
Speaker 3: to use you to try to buy this car. I
1:07:20
Speaker 3: actually had the credit union purchase it. They had a
1:07:23
Speaker 3: lower interest rate, and obviously when you work with a
1:07:25
Speaker 3: credit union, it could come directly out of your paycheck.
1:07:28
Speaker 3: It could come out monthly or bi weekly, so you're
1:07:30
Speaker 3: not even thinking about it. It almost became like another
1:07:32
Speaker 3: bill that was coming out of your paycheck. But I
1:07:35
Speaker 3: got a lower the interest rate for a long term.
1:07:36
Speaker 3: So that's a good strategy.
1:07:38
Speaker 2: Yeah, if you can it coun definitely save you some money.
1:07:41
Speaker 3: Yeah, we talked about if we're going to lease the
1:07:44
Speaker 3: car and potentially you know, you hear zero down. This
1:07:48
Speaker 3: feels almost like the home buying process in a sense,
1:07:50
Speaker 3: where like what is the amount or down payment that
1:07:53
Speaker 3: I should have or think about allocating if I'm going
1:07:56
Speaker 3: to finance a vehicle, Like is it ten percent? Is
1:07:58
Speaker 3: it twenty percent? Like traditionally what puts me in the
1:08:01
Speaker 3: best shape? Or is this conditional?
1:08:03
Speaker 2: So I always recommend at least ten percent down on
1:08:05
Speaker 2: the vehicle just your taxes alone, right, Or let's say
1:08:11
Speaker 2: you're in New York eight and a half percent right,
1:08:13
Speaker 2: eight point eight seventy five percent is your taxes right
1:08:16
Speaker 2: on the vehicle, So at least want to cover your
1:08:18
Speaker 2: taxes and the motor vehicle fees. Again, the people don't
1:08:23
Speaker 2: realize that. Now, if you have it available to you right, right,
1:08:27
Speaker 2: if you can put the money down and get yourself
1:08:28
Speaker 2: a lower interest rate because sometimes the bank will if
1:08:32
Speaker 2: you're financing a certain amount, they may give you a
1:08:34
Speaker 2: lower interest rate, or if you're financing for a shorter term.
1:08:37
Speaker 2: People don't realize that you get a better interest rate
1:08:39
Speaker 2: if you do a thirty six month finance a post
1:08:41
Speaker 2: of forty eight or sixty month or seventy two month finance,
1:08:45
Speaker 2: so because there's less risk to the bank.
1:08:48
Speaker 4: Right.
1:08:48
Speaker 2: So that I mentioned earlier that zero percent interest rate
1:08:51
Speaker 2: with Ford that was for thirty six months. So the
1:08:54
Speaker 2: client that that was working with me, they're like, yeah,
1:08:58
Speaker 2: you know, instead of writing to check, they were actually
1:08:59
Speaker 2: first about buying the car cash and writing a check,
1:09:01
Speaker 2: and they're like, wait a minute, I can get zero percent. Yeah,
1:09:04
Speaker 2: I'll just do zero percent for thirty six months, keep
1:09:05
Speaker 2: the money in my pocket and make the monthly payments
1:09:07
Speaker 2: and paid off early. So keep don in mind. But yeah,
1:09:11
Speaker 2: it's I recommend ten percent. The moment you could put down,
1:09:15
Speaker 2: the lower your monthly payments are going to be. On
1:09:18
Speaker 2: a finance. On a lease a little bit different. I
1:09:20
Speaker 2: don't believe in putting a lot of money down on
1:09:22
Speaker 2: a lease during the pandemic when prices are really high.
1:09:29
Speaker 2: I did my taxes and fees upfront. All right. Now,
1:09:32
Speaker 2: if you're working within a certain budget and you want
1:09:36
Speaker 2: a particular car, that's the car you want, then you
1:09:38
Speaker 2: may want to put a couple of dollars down on
1:09:40
Speaker 2: the lease in order to bring your payment down. People like, oh, well,
1:09:44
Speaker 2: you lose that money. Well, no, you're kind of getting
1:09:46
Speaker 2: it back in the sense that the payment is lower, right,
1:09:49
Speaker 2: So you're not technically losing the money.
1:09:52
Speaker 4: So before we wrap, first time home buyer, any me,
1:09:57
Speaker 4: first time car buyer need info for the first people.
1:10:02
Speaker 4: That's you know, just buying a car, young people.
1:10:07
Speaker 2: So it's it's a it's an exciting time. Enjoy it
1:10:13
Speaker 2: right again, be prepared to get your information and don't
1:10:17
Speaker 2: make it an emotional purchase. Let it be emotional after
1:10:21
Speaker 2: you buy the car. Does that make sense, right, Like,
1:10:24
Speaker 2: enjoy it and do the whole celebrating after you buy
1:10:27
Speaker 2: the car. But while you're in the process. So I
1:10:30
Speaker 2: see a lot of you know, younger folks that are
1:10:33
Speaker 2: coming in to buy a cars. They're so excited about
1:10:35
Speaker 2: the car, is they lose sight of the finances, the
1:10:38
Speaker 2: financial side of it, and then they make a bad decision. Okay,
1:10:41
Speaker 2: and that's how they get hurt. Don't be afraid just
1:10:44
Speaker 2: because you love the car. I've seen people crying in
1:10:46
Speaker 2: dealerships because they you know, it was too much or
1:10:50
Speaker 2: you know, whatever the case, or they didn't have the
1:10:52
Speaker 2: money down, or they didn't get approved of the car.
1:10:53
Speaker 2: It's a car, okay, stop it all right to just
1:10:58
Speaker 2: slow things down. It it's still gonna get you want
1:11:01
Speaker 2: to where you want to be. You don't want to,
1:11:02
Speaker 2: you know, strap yourself into a payment that maybe you're
1:11:05
Speaker 2: gonna have a hard time paying, and then you're affecting
1:11:07
Speaker 2: your credit down the line. There's more important things to
1:11:09
Speaker 2: do with your credit than you know, worrying about what
1:11:12
Speaker 2: your what your car is. So don't be emotional in
1:11:14
Speaker 2: the process. Be okay with walking away. There will be
1:11:16
Speaker 2: another car that that maybe works for you or works
1:11:19
Speaker 2: within the budget. But for the first time buyer, test
1:11:22
Speaker 2: drive vehicles, go out, look at different cars. Everybody makes
1:11:25
Speaker 2: a great car nowaday nowadays. So if you see your
1:11:28
Speaker 2: car on the road that you're absolutely in love with
1:11:31
Speaker 2: and you're like mom and dad or whoever it is,
1:11:34
Speaker 2: I want to get that car, be okay with maybe
1:11:38
Speaker 2: waiting a little while for that vehicle and maybe getting
1:11:41
Speaker 2: something else. Now that is maybe more reasonable as far
1:11:44
Speaker 2: as monthly payment, more comfortable as far as monthly payment.
1:11:47
Speaker 2: Hey listen, if you can afford that car, if it's
1:11:50
Speaker 2: well within the budget, go for it. But don't be
1:11:53
Speaker 2: afraid to say, hey, let me just take a step
1:11:56
Speaker 2: back and look at the bigger picture. I make the
1:11:58
Speaker 2: right decision for myself. Financial I see a lot of
1:12:01
Speaker 2: younger people, of first time buyers getting into vehicles because
1:12:04
Speaker 2: they're buying with their eyes instead of with their wallet,
1:12:09
Speaker 2: if that makes sense.
1:12:11
Speaker 1: All right, Our last thing here is the end of
1:12:13
Speaker 1: the lease guide.
1:12:14
Speaker 3: So we talked about some of those fees that might
1:12:16
Speaker 3: that come inside the contract for the lease.
1:12:19
Speaker 1: But this has happened a few times. Right.
1:12:21
Speaker 3: Let's say I have a three year, thirty six month lease,
1:12:24
Speaker 3: I have twelve thousand miles.
1:12:26
Speaker 1: I'm about to.
1:12:27
Speaker 3: Turn the car back in, but I've only driven eighteen
1:12:29
Speaker 3: thousand or twenty thousand. Is there any type of incentive
1:12:33
Speaker 3: that I get paid back or what happens.
1:12:35
Speaker 1: With the mileage?
1:12:36
Speaker 3: I don't use a lot of people runningto this issue
1:12:37
Speaker 3: and it's like, well what do I do now? I
1:12:40
Speaker 3: kind of overshot it. Is it just hey, get less
1:12:42
Speaker 3: next time? Or are our dealerships offering things to to
1:12:45
Speaker 3: customers who actually go under the value of mileage that
1:12:48
Speaker 3: they paid for.
1:12:49
Speaker 2: Okay, so very few I know. BRIMW I think used
1:12:51
Speaker 2: to do this a while back, where they would give
1:12:53
Speaker 2: you some money back for unused mileage. I don't know
1:12:55
Speaker 2: if they do it anymore. This will all be in
1:12:57
Speaker 2: the contract, definitely a question you can ask the dealership
1:12:59
Speaker 2: up front. Now, there are some brands I know Infinity
1:13:03
Speaker 2: does it now where if you start to do more
1:13:07
Speaker 2: mileage then you thought you were going to do, let's say,
1:13:10
Speaker 2: do the ten thousand mile of your lease and you realize, way,
1:13:12
Speaker 2: I'm way over. You can buy additional mileage at the
1:13:16
Speaker 2: same price as you would have purchased it up front
1:13:19
Speaker 2: during the lease. So again, I know Infinity does it
1:13:22
Speaker 2: right now. This doesn't mean they have to continue to
1:13:24
Speaker 2: do it. If you're on the website, you can see it.
1:13:26
Speaker 2: I actually have an Infinity now and I realized that
1:13:28
Speaker 2: we were going to go over mileas and I looked
1:13:30
Speaker 2: at it and on their website it says you can
1:13:31
Speaker 2: buy the mileage upfront, you can buy the mileage during
1:13:35
Speaker 2: the lease up until I think it's thirty days before
1:13:38
Speaker 2: the lease expires, so you have to be careful of
1:13:40
Speaker 2: when you do it. Don't do it like the day
1:13:41
Speaker 2: before you give your car back. It's not going to work.
1:13:45
Speaker 2: So what I tell people all the time is, look
1:13:47
Speaker 2: at what your driving habits are, right, look at your
1:13:49
Speaker 2: current car, what you've been driving it over the last
1:13:52
Speaker 2: three years. How many miles have you put on the vehicle.
1:13:54
Speaker 2: If you anticipate your mileage is going to stay the same,
1:13:57
Speaker 2: then that's what you should base it off of. Okay,
1:14:00
Speaker 2: I tell people all the time it's better to do
1:14:02
Speaker 2: a ten thousand miles a year lease if you're going
1:14:04
Speaker 2: to if you think you may do eleven thousand miles
1:14:07
Speaker 2: a year. If you think you may do eleven thousand
1:14:09
Speaker 2: miles a year, then to do a twelve thousand dollar
1:14:11
Speaker 2: a year lease because you're definitely paying for twelve thousand
1:14:15
Speaker 2: miles a year. Right to me, I'd rather save the money,
1:14:20
Speaker 2: keep it in my pocket, and maybe I get out
1:14:23
Speaker 2: of my car three to six months early.
1:14:25
Speaker 1: Right.
1:14:25
Speaker 2: Let's say let's say you're thirty six month lease. You
1:14:28
Speaker 2: have a thirty six month lease, and you have twelve
1:14:29
Speaker 2: thousand miles a year. That's a thousand miles a month
1:14:32
Speaker 2: or twelve thousand miles a year. Now, remember it's not
1:14:35
Speaker 2: you're not allowed twelve thousand miles per year. You're allowed
1:14:38
Speaker 2: thirty six thousand total miles in the vehicle when you
1:14:40
Speaker 2: return it. Now, if I return my car in thirty
1:14:45
Speaker 2: months with thirty six thousand miles, there's no penalty to me. Okay,
1:14:51
Speaker 2: so I'm not over mileage. I'm not supposed to be
1:14:53
Speaker 2: at thirty thousand miles because of get my car in early.
1:14:55
Speaker 2: I'm allowed to thirty six thousand miles even if I
1:14:58
Speaker 2: give the car back early. So that's a lot of
1:15:01
Speaker 2: times the dealership would do that. If you see you're
1:15:02
Speaker 2: about to go over mileage, contact the dealership. Some brands,
1:15:06
Speaker 2: like right now, Mercedes Benz has what's called a pull ahead.
1:15:09
Speaker 2: They if you're going into another Mercedes, they will waive
1:15:13
Speaker 2: I think it's anywhere from three to five remaining payments
1:15:16
Speaker 2: on your car. Right you don't want to have to
1:15:17
Speaker 2: roll those payments into the into the next car, so
1:15:22
Speaker 2: you want to, you know, kind of ask the dealership
1:15:23
Speaker 2: the question, if you guys have a pull ahead, I
1:15:25
Speaker 2: don't want to roll that negative those other payments into
1:15:27
Speaker 2: my next car. But I always say if you think
1:15:31
Speaker 2: you may go over do the lower mileage amount because
1:15:37
Speaker 2: it's better to maybe have to pay it than to
1:15:39
Speaker 2: definitely have to pay and not have it used.
1:15:41
Speaker 4: It no valuable information. Appreciate that before we wrap, tell
1:15:47
Speaker 4: the people what you what you have going on as
1:15:49
Speaker 4: far as your your company and service and contact information
1:15:54
Speaker 4: and all that type stuff.
1:15:55
Speaker 2: So, like I said, during the pandemic, when I left
1:15:58
Speaker 2: the retail side of it, when we first the call
1:16:00
Speaker 2: I was working at Mercedes Benz, I left the industry
1:16:03
Speaker 2: to start a training company for the automotive for automotive
1:16:07
Speaker 2: salespeople to help them better connect with clients and make
1:16:10
Speaker 2: the process easier for not just for them, but for
1:16:12
Speaker 2: the client as well, and to build that long term career.
1:16:15
Speaker 2: Obviously the pandemic hit, nobody was investing in training at
1:16:18
Speaker 2: that time, so I kind of had a pivot. And
1:16:20
Speaker 2: it's kind of it goes to what I teach, right,
1:16:24
Speaker 2: the clients who had sold cars to start reaching out
1:16:26
Speaker 2: to me for cars. So I just basically helped customers
1:16:29
Speaker 2: buy vehicles. So we started a company that basically help
1:16:31
Speaker 2: customers navigate the process of buying the vehicle, make the
1:16:35
Speaker 2: process super easy. But we still do. We still have
1:16:39
Speaker 2: our training company, which is obviously picking up and doing
1:16:41
Speaker 2: very well, thank God. But I will tell you this
1:16:44
Speaker 2: if you do have questions, my company's Automotive Mentorship. We
1:16:49
Speaker 2: do sales training and job placement for people in the industry.
1:16:54
Speaker 2: We do leadership training every aspect of the automotive industry,
1:16:56
Speaker 2: which has done very well. What I'm going to do
1:16:58
Speaker 2: for the members of EYL, I'm going to add an
1:17:01
Speaker 2: email to our website and it's going to be deals
1:17:05
Speaker 2: at Automotive mentorship dot com. So if you have questions
1:17:09
Speaker 2: about buying a vehicle, they'll be able to contact us,
1:17:12
Speaker 2: send us an email. We'll do our best off. It's
1:17:14
Speaker 2: depending on the amount of emails as we get, we
1:17:16
Speaker 2: will do our best. Me and my team will do
1:17:18
Speaker 2: our best to get back to everybody and answer as
1:17:20
Speaker 2: many questions as we can. Obviously, if when you guys
1:17:23
Speaker 2: post this with the questions, even on the last video,
1:17:26
Speaker 2: I make sure I still go back when people do
1:17:28
Speaker 2: have questions, I try to answer as many questions as
1:17:30
Speaker 2: I can on that video.
1:17:32
Speaker 4: Appreciate it.
1:17:33
Speaker 1: Appreciate it man, Thank you God.
1:17:35
Speaker 2: I said.
1:17:36
Speaker 4: Always a wealth of information and it definitely is another
1:17:38
Speaker 4: option as far as buying a car, to use a
1:17:41
Speaker 4: broker as opposed to a dealership. We didn't we didn't
1:17:43
Speaker 4: talk about that, but that's something that you might want
1:17:46
Speaker 4: to consider if you're in the car buying process, as
1:17:48
Speaker 4: far as you know, not having to go to ten
1:17:51
Speaker 4: different dealerships, just having a broker that can actually service
1:17:55
Speaker 4: all types of cars. And Chris, that's you know, kind
1:17:59
Speaker 4: of us. But make sure you, guys, email that email address.
1:18:04
Speaker 4: What was the email again?
1:18:06
Speaker 2: Deals at automotive mentorship dot com.
1:18:09
Speaker 4: Deals at automotivemntorship dot com. All right, Chris, thank you,
1:18:14
Speaker 4: appreciate it.
1:18:15
Speaker 1: My God, appreciate you as always.
1:18:17
Speaker 2: Thank you guys.
1:18:18
Speaker 4: All right, guys, that's it. Take care please.
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