pain cash for your next car great news
you're a cash buyer but to something
very important that you need to know
let's visualize this you're kind of
thinking you're gonna walk in the front
door and flash that cash because
everyone loves cash and the dealership
will be so impressed that you'll get an
amazing car deal right no no no and no
wrong don't shoot yourself in the foot
hi I'm Kevin hunter and here's the video
many of you have been asking for today
you're gonna find out why you should
never tell a dealership I'm paying cash
the moment you walk in the front door
before we get started I want to be clear
that there are both good and bad people
in the car business some are on you like
a dog will treat you like you're a piece
of meat and they think you don't belong
there unless you're ready to buy a car
today the other type of salesman will
respect you and give you a chance to
make a proper decision on what is the
second biggest buying decision which car
salesmen do you hope to find on a car
lot all right let's talk about cash
don't walk in the front door of a
dealership and say you're paying cash
chances are you'll run into the wrong
kind of salesman and you'll get burned
that said I want to be clear that I'm
not suggesting at all that you should
lie you're going to pay for the car in
the end right that's all that should
really matter to the dealership in the
grand scheme of things that you pay for
the car so what I'm saying is that you
shouldn't mention how you plan to pay
for the car the moment you walk in the
door and don't start babbling about cash
at any point during the negotiations
don't play those cards until you're in
finance before I explain what changed in
the business model that made dealerships
dislike cash a little housekeeping if
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okay what's true today is that if you
walk
to a dealership and say I'm paying cash
you can actually expect to pay a higher
price for your vehicle than any other
car buyer who plans to finance almost
doesn't make sense
you thought cash is king right well not
anymore
and while it seems counterintuitive that
talking about cash too early in the
process could hurt you it's true dealers
dislike cash buyers because of changes
with their business model and some
dealers are getting downright ridiculous
with how far they go to penalize a cash
buyer let me share with you a recent
comment on this channel from Shang
he writes hey Kevin I've been shopping
around and considering purchasing a
truck cache there have been a few places
that state that they charge a $700 fee
for paying cash and not financing I've
been able to talk most of these dealers
out of the other fees they try to charge
but they really seem to be firm on this
bank fee for paying cash and not
financing thanks in advance who would
have thought this would happen certainly
nobody from the cash is king crowd
charging a $700 Bank fee for using cash
oh yeah
but the reason isn't what you might
think it is years ago before the menu
boards the product selections and a
variety of charged fees cash was king on
a car lot but not true today full
disclosure I'm a cash buyer just like
some of you but unlike most of you
I've worked inside the walls of a
dealership and because I understand
their business model I will never tell a
dealership I'm paying cash until I have
my car deal in writing and I'm sitting
in the finance office and then there's
even the correct moment when you're
there I'll share that here in just a
moment but if in the car negotiation
process they ask me about filling out
finance apps or monthly payments I just
say I'll see what your finance man has
to offer after we finalize the price
negotiations if they persist I say
listen I don't talk finances outside of
a private confidential room with someone
who doesn't have the authority to sign
out the car no offense mr. salesman but
since that is not part of your job I'm
not doing that out here I never lied to
them and it suggests you don't either
I just firmly tell them I'm not talking
about it until the price negotiations
are over that usually kills it
now if cash is no longer king what
changed all of that pretty simple as I
mentioned it is the business model the
internet changed all kinds of things for
dealerships but the primary one was how
they make money for many years now
everyone has had access to all the
information you ever wanted concerning
car price most of you knew exactly where
your chosen vehicle is worth because of
the level of pricing information out on
the web it's just astounding if you ever
find yourself at a dealership and you
have no idea what the fair market price
is for the vehicle you're shopping for
well it's only because you didn't even
try to look shame on you with
dealerships beating each other up with
online car pricing something had to give
and it did they developed other ways of
taking money away from unsuspecting
customers ways they don't advertise and
things you likely don't know much about
although you might have a clue bottom
line when the business model changed a
typical car dealership no longer makes
the majority of their profits off the
sale price of the car let me say it
again the sale price the place you put
all of your attention on is no longer
the moneymaker at a dealership when you
realize they're making most of their
money elsewhere not on car price you
start to understand why they are so
willing to bargain right down to
basement car prices they are counting on
the subsequent steps inside the
dealership to empty your pockets these
steps all come after price negotiations
are over now if you utter that scary
word cash too early and yes I did say
scary word that entirely shuts down any
further conversation about car price and
for a really simple reason they aren't
likely to take advantage of a cash buyer
in finance and they know it so they
stand firm on the price of the car
hoping to get everything they can out of
you right then and there
think about it when the finance office
is writing up a car loan for you you'll
notice the main question they ask is
what is your payment goal and why do you
think they ask this question it's not
for the purpose of doing the best job to
help you afford the vehicle you're
trying to buy they ask the question
because they want you to think less
about total cost and more about a single
number in monthly payment as soon as
this change in focus is a comp
they can pack all those juicy
profit-generating fees and products into
your car loan what might have been a 48
month loan suddenly becomes 60 months 64
72 or 84 months you'll hear good news I
got you approved and you're right at 525
a month just a few dollars away from
your monthly payment goal you might
think it's a little high but you're
amazed and happy but you don't realize
the guy just screwed you over he's going
to make another thirty five hundred
dollars off you and he has your loan
term spread out over such a long time
period your grandkids are gonna be
graduating college by the time you pay
this bugger off to do all of this they
need a car loan to bury the truth cash
buyers destroy all that opportunity with
a car loan they take thousands of
dollars from you after you negotiated
the sale you get that a car loan lets
them rip you off no car loan the
deception strategy and finance is out
the window
aha now you're seeing the light without
a car loan to write the can't vary cause
they can't hide profits and they sure as
heck aren't going to get you that savvy
cash buyer to pull more money out of
your pockets you have the hard-earned
cash in your pocket for a reason you're
smart with your money and financially
smart people are not easily buffaloed by
a slick talking finance officer making
money in the dealership is nothing more
than a process that starts somewhere to
sale the car makes additional steps like
the accessories department and ends
somewhere else like the finance office
some steps add a lot more profit than
others the reason cash is not king in a
dealership is because profits are king
and they make a majority of their
profits in finance not off of cash
buyers cash is a bad thing because it
interferes with profits the reason
people get stuck at dealerships for
hours these days is because the majority
of the money is being made after price
negotiations the longer you're there the
more money they are making they make a
little money on the sale price make good
money on the trade in and make fantastic
money on the financing and most of that
fantastic money is coming from products
and fees in finance now you should
understand you don't mention cash and
in finance at this point you're done
with the negotiating at a sales level
but you're not even close to being done
in finance it's important how you
proceed from here and I promised I'd
tell you how I do it I sit down in
finance and ask the finance officer to
please add an appropriate tax title and
license to the sale price of the car so
I know what the total is if he tries to
shift the conversation to financing I'll
just put them back on track by saying
before any of that I need to know the
total what will I be paying and then we
can discuss the payment options they
don't like that they want to get into
menu discussion presenting products and
talking about protecting my investment
as if a rapidly depreciating piece of
metal the car is an investment ask any
account it's an expense item not an
investment when you're looking at
expenses why would you want to increase
your expense some finance officers
realize that only a very knowledgeable
person makes statements like this and
they cut to the chase however there are
several clueless ones they proceed
trying to line after line to move the
conversation towards products notice I
still haven't mentioned I'm paying cash
you have to stay in control
I let the finance officer present the
deal I look it over I use the state
website to calculate tax title and
license and I check to see if he got it
right
then maybe I see a document fee for 599
bucks and I'm only willing to pay $75 I
draw a line through it if it's the only
problem I look up and say change that to
75 bucks and we have a deal if he says
he has to charge every customer the same
because of a lame state law well I just
go out and get a hold of my salesmen and
I say you know I've reduced my offer by
five hundred and twenty four dollars
because of a ridiculously high 599 doc
fee and Finance I'm only paying him
seventy five bucks
well seventy percent of the time it goes
exactly like that sometimes the dealer
will refuse and then I'm out the door
you have to be willing to walk when
you're dealing with crooked people never
give the crooks your business that's how
we force bad dealers out of the business
all of us refusing to do business with
shady dealers now let's say there's a
$500 window edge theft program all
so on the paperwork again I cross it off
I line out everything I'm not willing to
pay for and give it back to the finance
officer saying get rid of that and we
have a car deal notice I still haven't
said anything about cash
I'm not lying to them but I'm letting
them believe they might get me somehow
someway every good card player
understands this it's not lying it's not
cheating it's just plain old smart when
all is done it confirmed the bottom line
this is essentially the out the door
price right he nods I say well based on
X credit score and plenty of income to
support that what are your current rates
on a 36 month alone he doesn't like this
because only smart car buyers get 36
month loans if they finance at all he's
not in control and he starts to figure
that out he gives me an approximate rate
lays out the term and then asks so what
were you gonna do for a down payment
I say figure it out with half down
here's the thing I said I'm a cash buyer
but I will still occasionally take out a
short-term loan just to keep my credit
file current this is just smart in the
event I ever decide to use credit for
something if the deal looks good that he
presents all say well write it up if it
doesn't I already confirm that this is
the out the door price don't bring
actual cash with you interestingly
that's what drug dealers do and other
people trafficking in an illegal
activity these cars to launder money the
moment you pull out a big wad of cash it
opens up a whole new world when a
dealership receives cash exceeding
$10,000 form 8300 must be filed the deal
may in fact be an attempt to launder
illegal funds if ten thousand or less
was received by the dealer and the deal
gets cancelled the dealer may
voluntarily file form 8300 anyhow if the
transaction appears suspicious bottom
line you might be opening up an
investigation on yourself
no sense creating problems you don't
need now let's recap for the person who
walks in the door and blurts out I'm mr.
big stuff here and pain cash give me a
deal well you got a good deal all right
like it or not you paid a much higher
price for your vehicle because you just
notified them upfront that they have no
endgame with you
no way to hide these profit packing
goodies at the end without the end game
to play they nailed you to the wall
right there and suddenly they didn't
want to budge an inch more on car price
they had to take everything they can
from you before you want to step further
because you just destroyed the biggest
money-making opportunity they have
that's the finance office makes sense
never say you're paying cash up front
never this is the kind of straight talk
you can expect on this channel so I
encourage you to subscribe and stay up
to date the information you walk away
with could save you thousands of dollars
on your next car purchase and you'll
know right where to come back for
refresher the next time you decide to
head out and go do some car shopping
maybe you still have questions if so put
them in the comment section below I try
to answer as many as I can if you want
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much appreciated and finally some of you
have asked this question how do I tip
this guy for all his help well I'm not
expecting you to pay me for what I do
but if you do wish to send me a tip I'll
put a link in the description box down
below just don't go trying to hurt
yourself financially a dollar or two
this great says thank you like anything
else for all those car dealership
followers the owners employees finance
officers I want to thank those of you
who come here regularly to validate what
I've shared with my viewers your
comments are priceless and I've even
made videos from your feedback I also
want to say to those of you who complain
especially the people who say oh just
another guy who didn't make it in the
Qura business or hey you're giving us a
bad reputation look up the Gallup poll
done each year on most and least trusted
professions a car sales have been tied
for dead last with a telemarketer and a
congressman I didn't make that
reputation for you you earned it
yourself too many crooked dealer owners
earned it for the entire industry I'm
just helping to flush them out I
challenge you to go out and help me fix
it to the rest of my viewers thank you
for joining me here today and thank you
for all the kind and supportive comments
that always show up on my videos I wish
you all the very best cardille you ever
thought possible remember
don't mention cash up front and now you
know why still got a question we'll just
put it down below
I'm Kevin hunter until next time take
care
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