TOP 10 TIPS - BEAT the CAR DEALER FINANCE OFFICE -Best "How to" Auto F&I and Vehicle Loan Advice

TOP 10 TIPS – BEAT the CAR DEALER FINANCE OFFICE -Best "How to" Auto F&I and Vehicle Loan Advice



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How does a car dealer rip you off? How do you buy a car from a dealer with cash, with no credit, with bad credit, with your own bank financing, or with dealer financing. You need to know how to buy a car from a dealership. In this series, you’ll get the best car buying tips anywhere. #UsedCar #car #carbuying CATEGORIES: car, truck, suv, auto, used cars, autos, mechanic, automobile, vehicle, dealer, automotive news, auto shop, warranty, loans.
Car buyers wonder “How do I buy a car and not get ripped off?” Beating the finance man at the dealership is a big part of it. From the Author of “13 Car Buying Mistakes” and “Car Scam of the Decade,” Kevin Hunter presents these ten tips for beating the car dealership finance office. Has the Dealer Finance Manager ever ripped you off? Car Dealers have a right to make a profit, but do they have a right to lie to you? From the author of “13 Car Buying Mistakes,” here are the “10 BEST Auto Finance tips” if you are buying a car! Want to know how you beat the Car Dealership Finance Man? This MUST WATCH video for Car Buyers is the advice you’ve been waiting for on how to survive the finance office at a car dealer. Kevin Hunter lays out the products, strategies, and tricks the finance officers pull every day on unsuspecting car buyers, and many of them get away with what they do. You don’t have to be one of the people they succeed in deceiving.
The F&I Manager, finance man, loan officer, business manager, or whatever the car dealer wants to call him or her… just remember this is the most skilled salesperson the dealership employs. They make more money than any other person in the dealership for a very good reason. They are sharks, and they are NOT looking out for you. They are looking out for themselves and the interests of their dealership. When they “shop” your car deal to many different banks, they are looking for the bank that allows them to pack the most product into your car deal. When you start seeing bank names like Santander, Capital One, Chase, Wells Fargo, Space Coast Credit Union, Regional Acceptance Corporation, Ally… just to name a few, you know you’re sitting in a car dealers finance office.

Kevin Hunter covers everything from extended warranties, GAP insurance, theft protection… otherwise known as window etching, paint sealers, carpet and fabric protection. All the details on HOW TO BUY A CAR, TRUCK, or SUV.

This video was published to help you discover how you can save time and money on your next new or used car purchase by doing your homework first, and then going car shopping as an informed buyer.

We are more than amused by a few of the car salespeople or car dealers who contact us and state that we are making a ‘small problem’ sound far worse than it is. We know there are honest people in the car business, and we receive positive comments from many of them, but it’s definitely a buyer beware world out on the car lot!

For all of you car buyers who are well steeped in reality, if you watched the video “Confessions of a car dealers backroom” you understand why you need to see this video. By understanding what mistakes to avoid, you’ll not only become a smarter car buyer, but you’ll also better understand what not to tell a car dealer when buying a car. It’s true that you can play all your cards up front with an honest dealer, but unfortunately, they represent the minority of dealer owners (truly transparent and honest dealers make up about 40% of all dealers), and you are unlikely to know the difference until it’s far too late. Be smart, do your homework, and you’ll come home with a car deal that’s good for you and the dealer. After all, that’s what fairness is all about. We encourage you to be fair and honest. As a car shopper, live up to your end of the bargain, because it works both ways. Respect the dealers right to make money in your quest to get a fair and honest car deal, proving to them you’re an honest person too. It’s this kind of attitude by car dealers and consumers alike that will change the car business. We wish you the best!

hello I'm Kevin hunter today I'm going to talk to you about the dealerships finance office their favorite strategies they like to deploy and cashing mistakes you can make before you sign out on your next pot with profit margins on new cars being tighter than ever car dealers have plenty of incentives to get creative with how they make money off of you the consumers we fully recognize that there's no crime in making a profit however there are plenty of questionable methods and strategies deployed and outright lies told all in the name of making money for many years it's been car salesmen that get the bad rap for being dishonest however the biggest liars and deceivers in the entire car dealerships sit in the finance office the people who occupy this office are known as business managers F&I managers the finance man and even a loan officer you'll probably think this person is your friend after all you finally finished negotiating your car deal and this fellow is going to help you sign out on your car when you were introduced to this person you'll never hear a more glowing report of a human being at any time in your life it's called the t o or turn over to the finance officer you'll be told you're in good hands you'll be told it's easy from here on out and nothing could be further from the truth you are about to face the most skilled salesperson the dealership employs two simple rules to remember the moment you meet the finance officer or step into their office first you are not obligated to buy or pay for anything they offer in the finance office no matter what they say including additional dealer fees and secondly the finance man is obligated by the owner of the dealership to sell you products to boost dealer profits everything you hear out of their mouth is to make the dealership money many of them will say anything and everything and even violate state law to get you to add profits to the car deal the process is designed to slow things down to wear you out to get you to sign your name on inconsequential documents so they can have you nodding your head yes when it really counts let's get started number one rustproofing it's a proven fact that a new car coming off an assembly line anywhere by any automaker does not need rust proofing in fact several automakers actually void the factory corrosion and perforation warranty if the car is under coated by a third party the reason quite simple dealer applied undercoating have been known to plug drain holes designed and body panels thus preventing them from getting rid of water accumulated from rainfall or other exposure to moisture when a body panel cannot drain no amount of coating in the world can save it so why do dealers sell it anyway simple huge market dealer applied under coating ranges from 300 to as much as 1500 depending on the car and the type of treatment package they offer you number two fabric protection a lot of dealers will eagerly pitch you on fabric protection which is really nothing more than an off-the-shelf spray can applied by a minimum-wage employee and then it's sold to you at 200 300 400 or even more John Nielsen national director of auto repair and buying at triple-a states that automakers install high quality interiors that incorporate materials and fabrics that shouldn't have stain related issues if you still think you need that extra protection all you have to do is buy a $10 bottle of scotch guard spray it on yourself problem solved hundreds of dollars saved number three paint protection the sales pitch on paint protection is amazing you'll hear something like this stuff is used in the aerospace industry and it provides a superior year-round no laghw shine and protects against harsh environments sounds amazing doesn't it protective paint sealing can easily cost a new car buyer two to four hundred dollars for a basic package and get up to a thousand or even two thousand for the premium packages here's the truth automotive paints today are durable finishes that benefit much more from regular washing and waxing than they do from added sealers quinces identifiers generally advise against waxing or sealing the paint on a new car for a period of weeks or even months to allow for proper curing number four then itching or window theft protection then etching is a subject of much scrutiny and many lawsuits many dealers no longer sell it and they call the ones that do thieves or crooks they are right then etching is nothing more than an adhesive stencil containing the vehicle identification number or VIN as they call it of your car however when the finance man talks to you about it you'll believe the police will find your car with it that it can't be uninstalled that you must pay for it this is all nonsense there are tons of claims about VIN etching and most so that is bogus so why do they sell it again pure profits window edging is commonly sold from 250 to as much as 600 bucks and sadly most consumers have no idea they even bought it for those of you who think you still need it you can go online buy the kit yourself for twenty to forty bucks and install it in ten minutes number five gap insurance gap insurance is one of the most abused and legitimate insurance policies in the car business dealers try to sell to everyone and commonly include it in what they called preferred protection packages here's what it does gap covers the difference between actual vehicle value and your loan balance if you should happen to total your car with so many people being duped by savvy finance officers it's become a common problem to have a loan on a car that's greater than its actual value overpriced dealer gap adds to the inflated loan balance by stinging you for additional 300 to 750 bucks if you really need gap talk to your own insurance provider first you'll find out they sell it for 30 to 35 dollars a year hopefully you're a bit smarter than most car buyers and you don't even need gap number 6 extended warranties warranties are another commonly abused dealer product as a dealer option extended warranties can be a good thing in some cases but to a very limited number of car buyers starting at $1,000 they can easily climb to several thousand bucks here are the problems first finance offices routinely lied to buyers claiming that the bank wants you to have one or they tell you this is what most people go with they're lying and they're not looking out for you and secondly many warranties aren't worth the paper they're written on I've been personally involved in several cases where full coverage warranties only paid a fraction of the cost of repairs and in some cases the customer lost their vehicle entirely destroying their credit in the process so much for being safe instead of sorry but this is what happens when you believe the wrong people here's my suggestion I have never bought an extended warranty I suggest you consider cars that have great service reputations have your car inspected before you buy it and then put a few dollars away in a savings account if you should ever need it I've never regretted doing this and neither will you for most people these 3 simple steps will provide greater protection in the long run then most extended warranty plans you find at a car dealer a final note on extended warranties if you're watching this video and you've had a great experience with a given type of extended warranty in the past please list it in the comments below so that other car buyers can make better choices knowing who the good warranty companies are is always good for people who think they need an extended warranty number seven the ever-popular document fees and delivery fees when the finance man can't beat you on other things it's the document fee that gets fatter and delivery fees that get added refuse to pay anything over seventy five dollars for a document fee and refused to pay a delivery fee on any used car if it's a new car demand to see the dealer's manufacturer invoice on the car the delivery fee was likely included in the invoice price and is not an additional fee to the dealer that means you are not obligated to pay it don't let the dealer rip you off with any delivery fees you don't have to pay and nobody should ever pay over $75 for a doc fee number eight the finance man changing the price of your car your trade or both before you sign out when your car deal was finally negotiated you thought you were done car buyers don't always think to double check the numbers take Nikki for example she was buying a used car for $22,000 she wanted two grand for her trade but the manager only wanted to pay a thousand bucks eventually they caved in and gave her the two thousand dollars after she left the dealership however she noticed a problem with her paperwork her trade was listed at the two grand she asked for but the car she had just bought moved from twenty-two thousand to twenty two 999 nice trick she went back and caught in the lied the dealer fixed what they claimed was a mistake made by the finance man I'm sure you know this was no accident you should always be taking notes during the negotiation phase and always double-check the numbers number nine the finance office changing your interest rate your down payment your monthly payment or the term of the loan most people visit with the finance man two or three times the first time will likely happen while you wait in the dealership showroom or in the sales office and you'll hear what a great person he or she is you may have a follow-up finance interview and then finally a sit-down in the finance office there are a lot of promises made during this why would your interest rate change or the term of your loan change easy there are many dealers who shotgun a deal this means they shopped your car deal out too many bankers dealers commonly try to hunt for banks that give them a better call back which is simply more room to add products in the car deal dealer bankers do nothing to discourage this because they know that the number one responsibility of the dealer finance office is to make money for the car dealer listen to what I just said the dealer bankers know that it's the number one responsibility of the dealer finance office to make money for the car dealer you must verify your interest rate the cash down payment amount the monthly payment and especially the term you can easily be switched from a 60 month note to a 66 month note while adding in products and maintaining your expected card payment clueless buyers get stung on this all the time and number 10 which is perhaps the worst Trick dealers do it's called the yo-yo payment trick or the take your car home while we finish your paperwork trick the number one reason that finance officers do this is to take you out of the car market they promise you that it alone is pending and you can take the car while the details get figured out there are many dirty tricks that the real con artists in the car business pool but this is one of the worst dealers who do this are subject to harsh penalties from the FTC but that doesn't stop them from doing it here's what happens you are told to take the car home while they finish the paperwork they say they will call you to come back later to sign everything I can't stress this enough never drive a car home you haven't signed out on this is the so-called yo-yo deal you go home thinking the financing is taken care of and you'll have payments for let's say 300 bucks a month sometimes as much as a week later the dealership calls and says that in order to get financing approved the payment must be $400 a month or they say a different deal has to be signed because they switched banks or they confess they couldn't get financing at all in any of these scenarios you are screwed to protect yourself from the yo-yo scam don't sign any agreement that includes language like subject to loan approval only drive a car off a dealer lot if you never have to go back that's our top 10 tips to watch out for in the dealership finance office and a bonus tip for those of you that made it this far none of the products or fees that I mentioned are required by any legitimate banker for any car loan and no banker ever reduces interest rates if you buy these products never forget that any banker working with any dealer knows that the number one responsibility of the dealer finance office is to make the dealer money and the dealer banks do everything they can to help them do exactly that you need to know that every day as consumers become more savvy on dealer tricks more ways to empty your pockets are being devised they train daily for consumers who are steadily getting smarter only the good dealers are honing customer service skills the rest of them are just developing ways to fool you don't ever go to a car dealer without having done your homework and don't ever believe that the finance man is your friend remember the two rules I mentioned in the beginning first you are not obligated to buy or pay for anything you are offered in the finance office no matter what they say including additional dealer fees and secondly the finance man is obligated by the owner of the dealership to sell you products to boost dealer profits everything you will hear out of their mouth is to make the dealer money it has nothing to do with protecting or looking out for you the consumer for those of you who are hardcore car shoppers and you want to pull an absolutely amazing stunt in the finance office here's a great suggestion bring in a pocket recorder and ask the videotape the signing of your papers you'll be surprised how fast you get out of that office and you'll hear a very different story the moment they realize there is no wiggling out of a con job the crooks in the car business would be gone a lot faster more consumers recorded what happens in that finance office if you are watching this video after the fact and you just found out that you got ripped off by one or more of these products the good news is that you can always go back and get them cancelled it's true get back there now and fix your car deal it's not too late if you have a specific problem or question not answered here please comment below we'll do our best to provide you with helpful advice and suggestions if you made it to the end of this video and you take the advice that I shared with you here I have just saved you thousands of dollars and a ton of headache on your next car deal thank us with a light below and remember to subscribe to the channel I'm Kevin hunter thanks for watching

44 thoughts on “TOP 10 TIPS – BEAT the CAR DEALER FINANCE OFFICE -Best "How to" Auto F&I and Vehicle Loan Advice

  1. I worked at banks for 20 years as a loan buyer or analyst. Everything in the video is 100% correct. I have found a decent deal if you have to have a warranty. Chrysler is selling them direct to the public. On a used 2018 Ram: $2000 for 8year/125k miles. Top tier $100 deductible. Almost bumper to bumper. Buy 1-2 years used and Save 20k and buy the warranty. They even go 18m 0 interest. Probably half what a dealer would charge. Don’t buy one if you dont plan on keeping the car for 5 years plus. Biggest financial mistake people make is driving cars they cant afford and trading every 2-3 years.

  2. You can't beat dealer finance loans from the factory finance arm. When they give you 1000 or 1500 in a rebate for financing with them, the only thing to do is finance with them. Yes, you will get hit over the head with with a high interest rate but your job is to smile, sign the loan and refinance with your credit union before you make the first payment. Don't buy anything else from the F&I guy – he is a crook.

  3. As a car salesman, the buying process is really super simple lol legally we have to show you ALL the financing. You have to sign for those extended warranties/gap insurance ect. We are not trying to rip you off or scam you, we are trying to sell cars for as low as the dealership will allow without losing money lol its funny how people think the sales department is so horrible when in fact most of the cars we sell are at invoice. Almost all of the markup is taken out of the car when we present a deal. Its true that you can get better deals at certain times of the year/month but thats not because of a “quota”. Its because the manufacturer put out rebates for certain cars that they reimburse the dealership with so we are allowed to take more off the car. It has nothing to do with actually discounting the markup of a car because almost all the markup is already taken off. Dealerships dont make dick off new car sales, all the money is made in the service department. We have a 20 car service department and charge 80/hr for labor, and the mechanics make around 20/hr. So $60 x 20 = $1200 an HOUR the service department brings in. So you do the math to see how much money that is per year lol. Its a lot. But in order to get people in for service we need to sell cars. we only sell to about 1 out of 4 people we talk to. most people “walk”. if you do walk away your not special, idk why some people think they are lol it doesnt hurt our feelings if you walk, we just take another customer. Sales is a numbers game, all we do is give as much as we are allowed for a trade in, sell a car for the least amount we can, and present those numbers to as many people as we can get in front of and by doing that we’ll sell to 10-30 people a month. Thats the honest upfront business model of a reputable dealership. I dont know if all these stories yall are telling of these shady scam artists dealerships are real or you just fabricated them in your head, but either way i feel bad for you lol

  4. If you’ve sold cars for any length of time you know is the customer who is a liar. “When a customer moves their lips” they’re lying. It’s not all, but the good majority. That’s why you time in the “business office” is VIDEOED!!! I’ve had customers that don’t get that “gap insurance” and they total their car, then they blame the dealership… “sorry Mr. Stingy customer, You signed that you didn’t want it”.

  5. I need to fix my car deal.. I bought it 10 months ago and I just realized they changed the length of my payments to 66 months when I was told it would be 48 months. They also told me the price was $16,000 but now they are saying it is $27,000 that I have to pay off in 56 months.. what can I do?

  6. I disagree with the GAP insurance. I think it is a must for new cars especially if you do not have a down payment. I have had 2 new cars with less than 2 years on them that have been totaled out and the GAP is the only thing that saved me. I will agree that you do not need to purchase it through the dealership. I also agree with everything else in the video.

  7. The whole idea about the price changing when it's financed happened to me. I brought in a quote from a 2nd dealership, for the exact same car…it was eventually agreed upon they would match the car price, and then give me a few extra hundred for my trade in, essentially to beat the competitor. When I got home and looked at the finance paperwork, they not only just shuffled the few extra hundred dollars for the trade in to anothet expense, they didn't match the other dealership so the total was now roughly $600 over the agreed upon price. Luckily a review of the dealership online, completely spelling out the whole process and messaging the salesman (who was actually wasn't the issue) about why I am giving bad reviews made them write me a check for $600… which still doesn't help, because I still technically paid taxes on that 600$ and it's in the finance agreement so I'm paying interest on it as well until I apply it directly to the principle, but that's really all I could do I think. Just be aware of these tactics and pay attention…I have made it a rule to myself, absolutely no matter what, when buying anything expensive now, just out of principle I take stuff home and go over it for a night with no pressure or angst and do the math myself in a calm collected way instead of being rushed.

  8. Just bought a Ram, added 2 years and 24k miles bumper to bumper warranty for 1095.00 plus all synthetic oil changes for the 5 years included.

  9. I was upside down $6,000 for my Mercury Mariner 2010. I traded in that vehicle for a 2018 Dodge Journey. With all the rebates it cleared the previous vehicle out but my payments for my current vehicle is $516! Should I refinance? Which company are good for refinance? When should I trade my vehicle in for a cheaper vehicle? Can I trade my vehicle for a used vehicle? Why did they run my credit about six times with six different financing companies? Is that normal? How can I prevent this next time? Is it smart to go through your bank instead

  10. Just recently bought a car and added extended warranty and also gap UGH!!! Just received my payment book so guess it's too late for me to do anything! Hopefully others will be smarter than I when buying a car

  11. Each time I buy a new car, which from now on I will never be that stupid to buy a new car; I tell the salesman, "the only way I will purchase this vehicle, is if I never talked to that crooked in the finance office", if they tell me "NO", I leave, and moved to another dealer.

  12. Hi. I have a question that if i buy a used car in carmax, i have to pay the processing fee. How can i deal with them?

  13. I beat it by not playing. Get something 10 years old and it's lost 90% of it's value. Plus way less taxes and insurance.

  14. Carmax extended service plan Maxcare is actually worth it. Probably the only one that is worth its weight in gold.

  15. can we cancel the deal if we already sign but the car still to be deliver?
    Because I’m didn’t used my mind properly they got success to sign on a blank agreement pager by me and now i fell that i really sucks on this dealing 😿😿😿

    Can you help me out ? It will be legal if i go for negotiation to deduct the price or cancellation of deal ?

    Urgent please

  16. Never buy a new car period cash or finance for the simple reason new cars lose value with age. Financing is the worst by the time you pay it off the car won't be worth much. A stupid waste of money it's better to pay cash giving you leverage to get the price down or finance a classic vintage car that retains it's value & goes up in value. Buy an investment not a liability & buy from a private owner not a dealership. Unless it's a vintage car dealer they are more honest. New car dealerships & salesman have too much axe to grind & they make you think you're getting a good deal when in actual reality you are not getting any deal period. The buyer gets screwed in the end. Dealerships & their banks come out ahead not the buyers.

  17. Never buy a new car period cash or finance for the simple reason new cars lose value with age. Financing is the worst by the time you pay it off the car won't be worth a nickel…. so to speak. A waste of money it's better to pay cash or finance a classic vintage car that retains it's value & even goes up in value better to buy an investment than a liability. Buy from a private party than a dealership.

  18. I just got car loan on a dealer which is used car 3weeks old now. The first he offers me 72mnths $278 momthly $500 down when i came to pay the downpayment and get the car everything change the down was $610 60mnths $395 monthly 20% interest i ask for re finance my loan i called the bank for refinancing but they told me only dealer does those so i caught the dealer lied he was like o they give 20% interest i didnt know that but he process everything and i have to wait for 6months to refinance it. Is there any posible way to trade in the car i have to some other dealer? or will bring back the car and ask for my downpayment refund. I have no idea yet. But still i have a good credit and give me so much high interest some others 60months like 6.7% interest. Man i got ripped off and i dnt know how to deal with it can you help me with this thing?

  19. Well it's been two years is it too late now? I got gap and all the extra bs u mentioned 🤦🏻‍♀️🤦🏻‍♀️🤦🏻‍♀️🤦🏻‍♀️

  20. I've bot Mazda unlimited kilometres warranty for my 2017 Mazda CX-9 ,Because just in 1.5 year I drove about 78000 miles, and mileage keep growing .

  21. great video. the sad thing is i saw your video after i leased a velar land rover and paid 3k for coating and fabric protection. can i do any thing about this now? thanks in advance.

  22. Maybe someone has the answer for this. You have your own financing, there is no reason for the dealer to ask for your SSN correct if financing and if bringing a cashiers check directly from bank? UNLESS you are paying in cash and over $10k for IRS purposes?

    Say you already have your own financing, you don't want to give your SSN again to the dealer because you know that even though you told them that you already had your own financing that they will go out there and shot gun your credit because they will want to use one of their lenders. They are obviously going to say that they need to take down your SSN no matter what because of the patriot act. If I'm not mistaken, that is false. Only reason they should ask for your SSN if you have your own financing is so they can check to see if you have a plate in the DMV system, and even then they don't need the full SSN just the last four digits.

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