The 10% Rule: Car Dealers HATE When You Know It (Save Money Buying a Car)

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How can you determine a fair price to pay for a used car? Zach walks you through the simple steps to understand how to use the 10% rule to save money when you buy a car.

[TrueToads]

Thanks for the tips, saved me a swindler's deal at the dealership today. I've been shopping for a 2019 RAV4 XLE premium listed at $26999. The initial valuation I got from the wholesale price was about 23500 but after talking to the salesman and checking the car I found out it still had the original tires at 43000 miles. Ran the numbers again in addition to marking off that it had tiny paint chips and the occasional scratch and it went down to 19900. Generously, I told him my price was 24000 and he wouldnt even entertain the idea. He brought out the manager who said the listed price is final and despite the fact that it's been with them for 100 days, if it didnt sell then they would just send it to their "sister dealer." I told him I hope it does better at the sister dealer than it did here and walked away.

[kenyattaclay]

This is a perfect example of what I’ve been saying. Even with your 10% rule (which is a good rule) and the ability to negotiate all you are doing is negotiating to a different level of getting screwed. Sorry but there’s no way anyone should be paying almost 16k for an almost 8 year old Corolla, that’s still insane.

[frankdeboer]

Who cares if they only make 10percent profit. It's still an eight year old car with no manufacturer's warranty. There's no way I'm paying anywhere near 18 thousand for that.

[Hippienolic]

Just test drove a used car. Used all your tips. Told him I wouldn’t pay the doc fee so he reran the numbers to lower the sale price and didn’t even take off the full amount. Didn’t negotiate with me at all. I walked out

[BobSmith-vegu]

YAA, can you make this offer feature appear next to every car on your website (assuming the best conditions), that way we don't have to manually do it for each car? This would be a tremendously valuable tool not to have to manually do it each time.

[floridaman]

I have been a YAA premium member since March and have enjoyed watching it evolve in real time. This video is just another example of how useful this website can be in the car buying process.

[fauxmixedhair]

This was extremely helpful. Very good advice. Thank you!

[pachiefbrody]

That is great advice. I knew to get online offers before trading in but never thought of using them as a way to estimate wholesale price when buying a used car. It’s so obvious but it eluded me somehow.

[KMR]

Not relevant to this video but just wanted to say thank you for constantly uploading relevant information. I recently bought a 2023 Hyundai venue at MSRP, thinking it was a good deal. Well the car is still in transit and by watching all of your videos on the market, I felt obligated to ask around other dealerships now that it is December and a little more incentive to sell. I found another dealer with similar ETA, but got it $1k below MSRP AND had them give me an extra $1250 for my Jeep trade in (going from $2250 to $3500, 150k miles). If it weren’t for the constant reminders of “hey, buyers are starting to get the upper hand here” I would have just stuck with MSRP and a trade in that had me in the hole. Thanks again!

[brettmoyer]

Hi guys, I just wanted to thank you for all these great videos. I live out in Oregon and am shopping for a Jeep Grand Cherokee Trailhawk or a Jeep Grand Cherokee Overland and the dealer profit % based off what you've shown in this video are just INSANE! I haven't found one below 20% and one was as high as 37%!
I haven't gone to a dealer yet to negotiate, but I will update once I've gone. Thanks again for the help!

[jhouser]

Awesome walk-through. It would help if you guys built this tool into your website. It would be amazing to have the 10% fair price displayed on the car details page, even if it was just a rough estimate.

[forrest]

I've been hoping for a "tutorial" like this. Enjoy your channel. Thanks.

[chiraqth]

That was big time knowledge thanks for the video

[coldnorthAK]

Had to bring the company truck in for service so I had some time to burn. Sat down with a salesman. After going thru some trucks on the lot (none of the RAM big horns had locking rear diff). I asked him if he’d sell me a truck at invoice if I ordered it. You should have seen his face. He told me “we don’t do that”. I think I offended him. After that, no counter offer. I thanked him for his time and went back to the service dept waiting area. Guess I won’t be buying a truck from these guys.

[Stef-igjt]

I just did this on a 2020 gmc terrain sle being sold for 22493 dollar. Carvanas offer was 23292 dollar.

[phil]

A year ago that car went for 11 k, really, do car dealers think we're all desperate idiots, knowledge is power, that 10% rule is a easy one to remember, thanks guys

[stevechance]

Thanks!!! This is very helpful!!! I'm looking for a used Mustang and I don't want to overpay. I'll be using what you showed me.

[MonkeyDLuffy-lxyc]

Could you guys do a video On the best worldwide deals going on for manufacturers recently like what are good deals to actually buy into or ask for from toyota mazda hyundai etc?

[Eric-tbsk]

Seems like if you own the website and want people to set the best options to see the best price that you could enable a single button or default them.

[WestCoastTrans]

Carmax had 8 year old x3 for 22k the trade in value was 11k when I ran it through the system. Did not buy that car because of that. Found another one for 16999 which is still to high so I didn't buy anything.