2024 CASH BUYER NEGOTIATIONS AT CAR DEALERSHIPS ROLE PLAY

CAR BUYER WITH CASH? IN 2024? FIRST THING... DON'T SAY I'M PAYING CASH! Watch the Dave Ramsey Show. He'll tell you that you SHOULD PAY CASH for your next car. Great advice, just don't tell the dealership that up front! Why? They WANT you to have a Car Loan! Watch THG's BEST CAR BUYING NEGOTIATOR: ELIZABETH is on this show!

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With Titles like 11 Fake Fees, to Don't Say I'm Paying Cash at Car dealerships, and Car Shortage Crisis, and Car Dealer Says Bring the Car Back!... The Homework Guy Team publishes videos to help Car Buyers. Then we added Cash Buyer Negotiations, and Held Hostage at a Car Dealership, No Haggle One Price Car Dealerships, How Much do Used Car Dealers Pay for Cars?, 10 Things You Should Not Say to Car dealerships, and the Costco Auto Program. We hit all the topics, and we represent Car Buyers, a goal that’s often in direct conflict with Car Dealer goals.

A CAR DEALER WANTS TO:
1. SELL every car for the Highest Possible Price.
2. CONVINCE Car Buyers to use Dealer affiliated Lenders / Banks.
3. LOAD every Car Deal full of Fees and Finance Products.
4. OFFER Lowball numbers on every Trade Vehicle.

THE HOMEWORK GUY TEAM (THG) HELPS CAR BUYERS TO:
1. BUY a Car from Dealers or Private Party Sellers at the Lowest Price.
2. PAY Cash or Finance with their own Bank or Credit Union.
3. DECLINE Dealer Fees and Finance Products.
4. TRADE / SELL their current vehicle for the Best Value.

For more than 40 years, dealerships have EARNED their lowly reputation by being the masters of predatory selling. Dealers stalk victims relentlessly, often ruthlessly treating the most vulnerable car buyers (like seniors, for example) with little or no conscience. Car Dealers and their Finance Officers have no problem creating financial devastation for their customers We point out the traps and the flaws of the process, and help car buyers get by all the nonsense without being ripped off. We promote fairness, honesty, and transparency, and we’d love to see a few dealers join our mission!

The Homework Guy Team provides car buying consumers with information, automotive news and updates, industry outlook, buying and selling advice, and other help to level the tables. The public face of THG is Kevin Hunter and the master negotiator, Amazing Elizabeth. Tons of time and research goes into every show, with several projects always on the table, all with the goal of getting it exactly right. From Automotive News Updates to vehicle shopping advice and assistance, The Homework Guy Team is the best there is.

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How can The Homework Guy Videos help Car Buyers?
1. What you need to know before buying a car.
2. Information you need when buying a car at a dealership.
3. Benefits of Buying a Car from a Dealership or Private Party.
4. Questions to ask at a Dealership
5. Car buying tips and tricks from the experts
6. How to Buy and Pay for a Car with Cash
7. Using Carmax, Edmunds, TrueCar, Autolist, or Kelley Blue Book for Car Pricing Info.
8. Buying a Car out of state.
9. Taking Control of the entire Car Buying Process.
10. What to do if Scammed.
11. Illegal things Car Dealers can do.
12. Understanding Dealer Financing Tricks
13. How to Avoid Dealer Scams.
14. Reactions to Sales Training conducted by Car Trainers.

We’ve seen amazing growth with over 359,000 Subscribers and counting. Meanwhile, if you prefer to fix your current car (and we recommend that you do!), check out channels like Chris Fix or Scotty Kilmer! If you wonder where we get such brilliant financial ideas, watch the Dave Ramsey Show!

[KevinHunter]

ELIZABETH IS THG's TOUGHEST NEGOTIATOR! To help you polish your Cash Deal Negotiations, we created a text outline of Elizabeth's masterful negotiations with both the Salesman, and the Finance Officer. We hope this outline helps you learn the art of negotiation the way she does it:

We join Elizabeth while she is out on the showroom floor, having just tried out a new truck she likes:


Salesman: Okay, so that narrows it down to the Ford F-150. It’s a great choice.

Elizabeth: Yes, I think so too, and I like trucks!

Salesman: Ok. So how do you plan to pay?

Elizabeth: How do I plan to pay? We haven’t even negotiated the price yet.

Salesman: We’ll do that, don’t worry. But we need to know how you plan to pay so we can get started.

Elizabeth: That doesn’t make any sense. I never talk about payment options until two things are in place. First, do you have a vehicle I want to buy? We covered that base, and I like the truck. Secondly, is it a price I’m willing to pay? We haven’t established that yet… so there’s no reason for me to give consideration to my payment options when I don’t even know if I’m going to buy your vehicle. It’s pointless.

Salesman: We’ve always done it this way… it’s kind of our policy. I get in trouble with my boss if I don’t know how you’re paying.

Elizabeth: Your boss wants the cart in front of the horse, and that’s wrong. I get that’s important to you guys, but today, you have the wrong customer here for that. If you don’t have a vehicle I want, at a price I’m willing to pay, talking about payment is pointless. You and I both know it.

She pauses…

Elizabeth: Look. I’ll be interested in what the finance office has to say… but ONLY after we negotiate the price of the truck, and that’s assuming you come up with a final price I’m willing to pay. When I agree to the price, and I have it all in writing in front of me, that’s when I talk about finance.

Salesman: I know but…

Elizabeth: I’m not a fan of mysteries. When the final price is on paper, and I have it in my hand, I might decide to buy it… and if I do, then I’ll talk to your finance office about payment. I don’t discuss finances out on the showroom floor, and I’m not about to fill out forms regarding financing until I’m sitting in a confidential office, with a finance officer. If the dealership doesn’t respect my right to my own data privacy, I’m happy to take my business elsewhere.

Salesman: Ok. Come on back…

Negotiation of Price Happens. A Price Liz is willing to pay.

Finance Manager: Come on in, Elizabeth. Ben tells me you’re getting a Ford F-150. Great choice! That’s one of my favorite trucks, too!

Elizabeth: Thank you.

Finance Manager: Alright, so I understand you have your finance options open with regard to finance, so I’ve put together a few recommendations I have based on what most of our customers do. If you have any questions, feel free to interrupt and ask at any point.

Elizabeth: I’m going to start with an interruption because I’d like to begin at a different point. I have the price of the truck here from Ben. Before I came to the dealership, I was in contact with the local DMV office about Tax, Title, and License Fees. I’d like you to look up the total state fees with taxes on this vehicle, and give me that total.

Finance Manager: Well, we’ll definitely get to that. I think it’s a good idea that we make sure your investment is protected first.

Elizabeth: That’s exactly the path I’m on. Protecting my investments. So, I’d like to start with tax, title, and license fees for the truck.

Finance Manager: Let’s see. Taxes are about $2, 400. Title and License fees around $600.

Elizabeth: Those are estimates. I would like the exact numbers… like the information I’d get if I called the DMV office myself.

Finance Manager: Well, these are very close.

Elizabeth: Not close enough. I’d like the exact numbers.

Finance Manager: Okay, tax is…… let’s see: $2, 305.03. Title and license fees…. Are going to be… $481.26

Elizabeth: See the benefit of an exact number? That’s $94.97 less in taxes, and $118.74 less in state fees. That’s $213.71 that’s still in my pocket.

Finance Manager: (laughs) Ok. Let’s move on to my recommendations.

Elizabeth: Not yet. I’ve totaled the price of the truck $33, 650, the tax $2, 305.03, and the title and license fees of $481.26, for a grand total of….. $36, 436.29. Check it yourself.

Finance Manager: Your math checks out with me. That's correct.

Elizabeth: Thank you. Now, I’m assuming you want a document fee. Every dealer does, even if you’re already being paid to register my vehicle with the state.

Finance Manager: How am I being already being paid?

Elizabeth: That's the reason you have a retail price, and not a private party price. It's one of the services you provide is the registration of the vehicle with the state. I could stop by the DMV office on my way home and do it in 15 minutes if this is either expensive or difficult for you to do. I’ll add in $75, just to be nice, if you’re going to click the couple of keys it takes to notify the state that this vehicle is changing ownership.

Finance Manager: I can’t charge you less than a $599 document fee, because that’s what we charge all of our customers.

Elizabeth: Yes, other customers aren’t aware they are paying twice for the same thing. I am, and I’m only giving you $75… just to be nice, like I said.

Finance Manager: There are state laws that prevent us from doing that. We have to charge everyone the same.

Elizabeth: I knew you’d say that, so what I'm going to do, I’m going to reduce my offer on the truck from $33, 650 to $33, 126… since your fee is $524 more than I’m willing to pay. This allows you to show your $599 document fee on the contract, but I’m still only paying you $75… because I took the excess fee amount of $524 out of the truck.

Finance Manager: I can’t just do that. Your offer is a bit unreasonable.

Elizabeth: Let’s not kid ourselves here. You knew the moment your salesman told you I wasn’t giving you payment information before negotiating the truck price, that I was a lot more on the ball than your normal car buyer.

Finance Manager: Sighs.

Elizabeth: This isn’t my first rodeo. You’re the finance manager. You change the numbers all the time to make up deals you want. You and I both know that a $599 document fee is a profit padder for the dealership. I’ve already agreed to the price on the truck. I’m not going to let you round it up $599 just because you want to get paid more.

Finance Manager: I’m going to change the numbers, but I have to say I’m getting myself into a little bit of trouble doing this.

Elizabeth: Well, it's nothing you’re not capable of handling. Alright, time is running short, so let’s keep moving. My new total is at…. $36, 475.39. Everything.

Finance Manager: Right.

Elizabeth: Ok. I’m going to write you a check for $20, 475.39 to leave the balance of $16, 000.
Finance Manger: Ok, and that portion you're considering financing?
Elizabeth: Sure, I’d consider financing the $16, 000 that's left, but that depends what interest rate you come up with.
Finance Manager: What's the term you're looking for?
Elizabeth: 24 Months. What's your best shot at 24 months?


Finance Manager: Fill this out, and I’ll do my best…

Scribbles out the minimum information on the form….

Elizabeth: That’s enough information for you.
Finance Manager: Ok...

She picks up Phone.. waiting….

Finance Manager: Ok, there we go… 2.49% at 24 months. Puts you at $684.10 a month. 24 months, just like you asked.

Elizabeth: Ok. 2.49. I actually already have 1.9% from my own bank, so I think I’ll just have pass on it. If you'll just ... I’ll just write the check for the remaining balance, how about that, and we can be done with this. I gotta go!

She writes out the check… hands it to him

Elizabeth: Alright... It’s been nice doing business with you. I’ll be sure to refer you to my family and friends!

Finance Manager: Are they all as tough as you?

Elizabeth: (Laughs) Plan on it. We watch The Homework Guy videos!

Hope you really enjoyed this video! Doesn't Elizabeth ROCK?!!

[Pipiopy]

how about a live example at an actual dealership with a hidden camera or at least an audio recorder? this is gold

[TristanWeberNFL]

As a former car salesman of 6 years i'd like to provide my input on this video:

From a salesperson's perspective, Elizabeth is clearly an educated buyer, which is an immediate light bulb for any sales person. In this particular scenario, when the sales person asks "how do you plan to pay for the vehicle" he's effectively asking "how should I structure the deal? should i start getting your credit to set up a payment structure, or just get right into negotiating the price of the vehicle?". Effectively at this point, it doesn't really make much of a difference whether or not you say you're paying cash, because she says exactly the right thing thereafter "i'm only interested in the vehicle if it's a price I think is acceptable" . Everything beyond that will just be felt as hostility and you're being a difficult to work with customer. Albeit it shows you're there to grind, which is a good thing! However i have to somewhat disagree with the idea you shouldn't tell them you're buying cash. At that point in the sales process it doesn't really matter, most sales people are just trying to ask "how should i structure this deal for you".

Also, when she says (paraphrased) "i'm not talking about the payment on the car until we have a price im satisfied with" is EXTREMELY STRONG and is exactly what you should say regardless of how you intend to pay for the vehicle. Extremely strong negotiation tactic, and is what every single buyer should say and should do. Great job there, Elizabeth. That exact verbiage is the reason why i mentioned it doesn't really matter if you say you're paying cash, because the dealership knows you're there to grind regardless and kind of acts as a guard against the price gouging you mentioned early in the video.

When you said "I think it's smart to make sure your investment is protected first" i actually laughed out loud. That's exactly what finance managers say. Well done by you there. Doc fees are another thing, sometimes Dealerships CANNOT remove their doc fee for one reason or the other, but I agree you shouldn't pay for it. A lot of time managers will catch serious heat by removing the doc fee and i've seen managers get threatened lose their job for removing it one too many times. Taking it off the truck was the PERFECT move. Great job again Elizabeth.

I do want to also tack on to your video, you may want to consider financing some amount of the vehicle if you happen to qualify for any incentives. IE if they're giving out a veterans/current military incentive or something of that nature, often you have to finance at least a portion of the vehicle to take advantage of that offer.

Overall a well executed how-to guide. Liz is very strong and clearly a very shrewd negotiator.

[nv]

I've used this tactic very successfully for myself and family. The shame of it is though, that you've got to attend the circus in the first place.

[RandomAlias]

Can't wait to see her negotiating on both NEW and USED car deals

[gwillis]

I like the way she said she does not discuss private matters like finances on the show room floor. She only wants to discuss private things in a private, confidential office.

[njcanuck]

I hope also people noticed that she was polite while being firm. You don't have to be mean or come in with an attitude. Just be assertive and polite. Everyone deserves to be treated with respect.

[mtreat]

More role playing, more Elizabeth, and yes to the price negotiation video, please!

[ericfleetwood]

ALWAYS print the ad before you visit the dealer. And save a pdf to your computer. And email the pdf to yourself.

[danmccann]

I DEFINITELY want to see her price negotiations!!!

[leefruits]

Great video! Having sold cars at a few shady dealers for a total of 10 months 20 years ago, a friend approached me about doing a cash deal at a dealership. Told her straight up to not say a peep about payment method until face to face with the finance person. Refuse all extras, negotiate the doc fee, all of it. And if she didn't like the way she was treated, walk away. Used cars are a dime a dozen in a big city. After the price was negotiated and the car reserved, she came back with a cashiers check... and was told to come back the next day because they weren't ready for a straight cash deal that particular day, LOL. I presume to make her mad and kill the deal. She went back the next day with the same check, and drove home happy. Fairly certain that dealer doesn't want her coming back. ;)

[BusterKitten]

Kevin, I've been researching vehicles, watching youtube videos on how to buy a new car, the best ways to handle car sales people and their finance leeches since April. Was going to pull the trigger on a purchase at the end of June but because of the "chip shortage" I'm waiting until next year. Out of the several channels that show consumers how to survive the dealership gauntlet, your channel has shown itself to be the best in explaining, showing examples, and your roll playing in educating me to save the most money when the time comes to buying my new car. I'm in my late 60s and this will probably be the last vehicle I'll buy, and I just want to say "thank you" for your work, and 'thank you" to your staff in their helping/teaching me how to better handle myself when the time comes. I love to negotiate, to the point that my wife refuses to sit with me when we've bought vehicles in the past, but you have taught me SO MUCH more. I have a feeling I'm really going to enjoy my next purchase.

[TheDesertdawg]

Cash buyer Option #2 worked for me.
I wrote the check for what I wanted to pay. Put it on the desk, Then told them that was it,
After 2 hours they met my out the door price. And still replaced the seat cover because of a cigarette burn.

[VIDEOHEREBOB]

Yes Kevin. The negotiation of the price of a new vehicle would be appreciated.

[navyfan]

Great advice, but most of the dealers where I live won't get that far and will instead choose not to deal with you. They don't care if you walk because they're doing well enough with people who play their games and they know fi they start dealing your way, the word will get out. Letting you walk and losing a sale is just another cost of doing business for them.

The only place in the country that I have lived where I have not observed this to be the case, was in the Northeast US in the tri-state area of NY. There seems to be so much competition there and the buyers are so savvy, that once a dealer figures out you're not playing, they will give in quickly to get the sale done and move on. Everywhere else I have lived - Midwest and Southeast, they seem willing to lose the sale to avoid changing tactics.

I'm in the market now and if I can't find the deal I want here in FL (which isn't looking good right now), I am going to call one of the dealers I used in the past in NJ when I lived there and buy the car I want sight unseen and have it shipped or fly up and drive it back.

So great video, but if Elizabeth lived where I live, she'd be doing this deal via email and phone with a dealer 1000 miles away after being treated like crap by a local dealer who would probably waste a bunch of her time before telling her it's not going to happen her way .... :)

[jmbfinesse]

So basically get the price down to where your comfortable listen to their finance plan get it written out then tell them you wanna pay cash…that’s awesome

[heathmcconnell]

Let's see an Elizabeth car price negotiation :)

[crystaldziadosz-brown]

I am currently trying to buy a used vehicle and this video has really helped me feel more confident that I may be able to pull off a decent deal. I appreciate seeing a woman showing she will not be walked over. great job to your whole team. thank you.

[CheersWarren]

The best video on buying a car with cash, period.
Elizabeth is the real deal.

[jameskirkpatrick]

This has to be one of the best examples of car buying I've seen to date.