DEALERS ALWAYS SAY "NO" (But you should ASK anyway) Kevin Hunter, The Homework Guy

13 questions car dealers commonly say no to but why it's important that you ask those questions anyway outside of car buying think about something people get curious and are inclined to engage more when you ask a no type question so why not use it to your advantage for example if you start out saying I know you have your usual sales process but are you against trying something new out of curiosity the salesman is likely to say no meaning he or she is not opposed to trying something new in the back of their mind they're now wondering what's next for the moment you are the one in control so keep asking more no response questions after all the one who's in control most of the time and especially in the end wins there are reasons the questions we're discussing today get a no response and we'll discuss that in a moment but maybe you'd like a simpler car buying experience all together and you want to hear more yes than no if that describes you and you want a much easier way to buy a car try our hassle-free car buying service those doors being slammed in your face will suddenly get friendlier and you'll hear a lot more yes than no you can read up on it by visiting our website the homework guy.com up next is my broadcast partner here on the homework guy show the absolutely amazing Elizabeth thanks Kevin now friends if you're negotiating always ask questions strategically and be prepared for counter offers rather than outright rejections if you get a hard no to a question when you really want to hear a yes counter the no by telling the dealer you're a reasonable minded person and then say I'm just looking for someone who wants to earn my business tell me what you will do and you might be able to earn my business emphasize the word earn exactly first let's start with questions that have to do with pricing and financing number one will you sell this new car for the manufacturer invoice price no and why would any dealer say no to this dealers got away from doing invoice deals entirely during the pandemic and they don't really want to go back to the pre-pandemic days of invoice car deals but a few lucky car buyers get a dealer to go there the invoice price we're talking about is what the dealer is build by the manufacturer but it's often not the actual cost the dealer pays dealers receive manufacturer incentives hold backs monthly gold bonuses and other rebates that lower their true cost selling at the invoice price means giving up some hidden profits which the dealer will avoid doing if they can help it number two can you wave all your dealer fees including documentation and destination charges no dealers will never admit this but dealer fees such as documentation fees contribute greatly to the dealership's profit margin that's all they are profit patters there is no other reason to have a fee remember we said dealers and their employees absolutely love money yeah the root of all evil Love Money these fees often represent peer profit and help offset operational costs such as employee salaries and facil expenses look around you when you're in there the dealership is built like a casino yeah have you ever known a casino to not be the one always winning for a dealership waving the fees could significantly reduce the earnings on the sale and that's something they definitely don't like very much mhm number three will you sell the car below MSRP without any conditions no manufacturers suggested retail price the MSRP is already calculated to include a reasonable profit margin for the dealership selling below MSRP Cuts directly into their earnings and may result in minimal or no profit on that particular sale and may reduce some difficulty covering operational costs such as staff salaries utilities and inventory expenses number four can you throw in the extended warranty for free no well why not dealers say no because extended warranties are a major profit Source they do cost them some money to provide and giving them away for free cuts into their margins and commissions now let me say that a little bit slower giving away an extended warranty severely cuts into their profit margin let me ask you if a product produces huge profits how much money can it actually afford to pay out well not very much which is why they pay out 10 to 12 cents per dollar that you spend on buying them doesn't sound like much protection when you think about it does it number five can you sell this car without the dealer added options like tint wheel locks or paint protection no please dealers may say know because dealer added options boost profits are often pre-installed and removing them could complicate the sales process or even violate the Dealer's own policies oh no which is not a law or some legal obligation but just their own internal policy but who cares about that right not us number six can you match or beat the price I found online including from some private sellers no online prices by other dealers often exclude fees or are from high volume sellers with lower overhead making it unprofitable for dealers to match so if you wish to get a dealer to match a price you got elsewhere have it as a written otd offer so it includes everything dealers won't match private sellers because they don't have the same cost warranties reconditioning or overhead expenses so their prices are usually much lower than a dealer can afford to match it's not really a fair comparison number seven can I get a discount if I pay in cash no based on the business model most car dealers use cash doesn't benefit them all that much dealers might say no because they often make more profit from financing due to lender incentives or kickbacks number eight will you let me take the rebate and still negotiate a lower price no the only reason dealers might say no to you because you let them get away with adding the rebates into their discount which they show as a dealer discount which as we all know rebates are not a dealer discount they are a Manu manufactur discount by negotiating further price cuts it would eat into their profit margins and they desperately don't want that number nine can you pay off my tradein loan even if I owe more than the car's worth no the truth is that even for dealers who say yes or advertise that they do this for you they never pay off your old loan balance for you they just roll that entire loan balance into the new loan you are the one who pays it off eventually if the dealer does say no it's because the negative equity balance you have on your current car is just way too high resulting in an increase Financial Risk or makes the deal undoable or unprofitable for them maybe it's the bank saying no number 10 will you sell me the car for the advertised price without any extras no yeah don't hold your breath which is a violation of an antitrust law and violates tying the sale dealers might say no because extras like fees and add-ons boost their profit and many advertised prices are designed to draw customers in but don't reflect the full cost but there's a catch because an advertised price is supposed to be the price a dealer who does this faces the very real risk of an informed customer filing a deceptive pricing complaint with the FTC and their state AG's office the practice openly violates deceptive pricing laws number 11 can I special order a car and still get it at the same price as the inst stock unit no oh dealers actually have a huge reason to say yes to this question because they avoid common costs with vehicles they bring in just for inventory purposes but dealers might say no because special orders might lack the manufacturer incentives and discounts applied to other vehicles already on the lot number 12 I hear this one a lot can I take the vehicle off the lot for an independent PPI pr- purchase inspection no but if they say no it's a red flag worth leaving the dealership over we assume they say no because the dealer has something to hide and there's plenty of evidence to suggest that is true that's a risk you take every time a dealer says no whatever problems it has suddenly become your problem if you take the car off the lot right dealers might also say no because they worry about liability losing control of the vehicle or potential misuse while it's off the lot I would suggest asking them why number 13 will you match the tradein offer I got from another dealership no dealers might say no because trading values depend on their specific resale strategy reconditioning cost and market demand in a specific area which can definitely vary between dealerships and their regions however we have found that with a little firm resistance on the part of the car buyer the dealer will come around to matching the other dealers trade appraisal just have it in writing now for those of you who want to buy either a new or used vehicle anywhere in the US car market and you want to hear more yes than no in dealing with car dealers reach out to us and ask for direct help on our website the homework guy.com we have our hassle free car buying service and several other smaller packages we can do as much as you need us to do like all or some of the battling for you with the devil in the dealership if you just wish to go Al loan with some help get signed up for the texting consult package it's just $49.99 and I'll stick with you for 30 days but if you want our intensive help read up on our hassle-free car buying service on our website the homework guy.com on the pull down menu not only does it make life very easy for you but our service leads the industry with the best return on investment average sure some cars are easier to save money on for our coaches than others but we always save you the uncomfortable encounter with negotiating with the dealership but you should know that one of the key reasons that our car coaches always get better car deals and better trading values than the average car buyer does is that they have no emotional attachment to the vehicle and think about that and they know they owe the dealer nothing yes for them unplugging from a bad dealer is easy not so much for you you should also be aware that when you use our hassle-free car buying service either Liz or I will personally take every intake call you get to talk directly to us and we are the only show host online that offer this level of personalized service thanks to all you alter in our audience for coming back we greatly appreciate your loyalty and if you want our direct help and you have any trouble with the website you can text me today at 71441 3399 I will steer you in the right direction to all of our longtime subscribers you guys rock God bless you all I'm Kevin Hunter the homework guy home of the only totally hassle-free car buying service signing off on behalf of the amazing Lizabeth and the entire hassle for you homework guide team thanks for listening