now in this video I'm going over
everything there is to know about buying
a new car from a dealer so that you can
get the best deal possible when it comes
to buying a new car when I was 20 years
old I bought my first new car that was
listed at $19,000 and guess how much I
paid for that new car while I paid
eighteen thousand eight hundred dollars
for that car and I paid for every single
fee on the planet because of my
ignorance so in this video I want to
pass on some real knowledge to you so
that you don't do what I did when you
buy a new car now if you just found this
channel I'm Jason with honest finance
and I make a lot of videos on different
financial topics so if you are
interested in this type of content feel
free to subscribe or at least give this
video a like and now on to car buying we
all have the choice to buy a new car or
a used car but there's actually quite a
few advantages to buying new for
starters you never have to worry about
how the car was treated in its past
which is always something that I worry
about now when I buy a car because I
once bought a used Ford Explorer with
only 11,000 miles on it and after just a
couple weeks of driving it I realized
that there is something really wrong
with it there was nothing wrong with the
title but every once in a while when you
were driving you could feel the
transmission do some sort of a jolt and
there was a lot of rust under the seats
so I went into a local dealer and I
looked under the seats of the new Ford
Explorers and I noticed that there
wasn't any rust so that was a huge
indicator that something was wrong with
my car and obviously the issue had never
been reported on the title so now I was
stuck with a car that I really regretted
buying so just keep in mind that a new
car eliminates any bad history and they
all come with warranties as well and as
far as tires and brakes go you won't
have to worry about those annoying costs
for at least a few years now when it
comes to buying a new car you'll want to
do the research for the car you'll want
to get the best price for the car and
you'll want to get the best financing
for the car as well these three parts
are essential to getting the best car
deal so pay attention
starting with research you're gonna want
to hop online and look into the
different type of cars that you're
interested in buying my advice would be
to check edmunds.com
truecar.com and Kelley Blue Book for
any of this type of information they all
have really good information when it
comes to
any type of car find out if it's safe if
it's reliable or if it holds its value
well so unless you're okay with
super-fast appreciation don't buy a car
just because it's cool if the research
doesn't prove that it holds its value
well or it's good for your family or
your budget then look into a different
car also find out how well it does on
gas mileage and what type of fuel it
requires because if you drive a car that
requires premium gas you're gonna be
spending about 250 bucks more a year
based on 12,000 miles driven and give
the car's maintenance schedule look to
because you'll find that a lot of new
cars don't require much maintenance
until about a hundred thousand miles
I mean seriously my truck doesn't
require new spark plugs until it hits a
hundred and fifty thousand miles and the
oil changes are only required every
10,000 miles so that's a good thing in
my opinion so if you have to replace or
flush a bunch of stuff every 30,000
miles then it's probably worth looking
into something else not that it's the
biggest pain in the world but all those
little things do add up and before you
buy a new car please call up your car
insurance and find out how much more the
new car is gonna cost you I Drive one of
the new aluminum f-150s and I had heard
before I bought the truck that insurance
was really expensive because they were
hard to fix well I made sure to call my
insurance before I bought the truck and
I found out that it was only four bucks
more than what I was already paying so
that wasn't a big deal at all so just
call your car insurance before you buy a
new car so that you don't have any big
surprises and if you've made it this far
could you please give the video a like
because it'll help me out a lot thanks
now on to the price of the car which is
kind of a big deal in my opinion new
cars are a lot easier to negotiate than
used cars because the prices are a lot
more transparent it's a lot easier to
see how much the car should really cost
you because the information is available
everywhere online and it's available at
the dealerships as well
there are basically two prices that you
need to pay attention to when you're
buying a new car you'll need to pay
attention to the MSRP which is what the
sticker price is and you'll want to pay
close attention to the factory invoice
which is what the dealer paid for the
car and just to be clear you can find
both of these numbers on all of the
websites that I mentioned earlier
now you'll usually see a difference of
about 10 percent or less between these
two numbers which would indicate that
the dealer has the upper
to make 10% on the sale if he sells it
at full retail so if you buy a car at
invoice then that means that the dealer
makes nothing but yet they still stay in
business you've got to understand that
invoice is not the exact price that the
dealer necessarily paid for the car
because they have secret incentives like
dealer hold back dealer hold back is
typically 1 to 3% of the invoice of the
car or the MSRP of the car depending
upon the manufacturer that's actually
paid to the dealership after you buy the
car so if you buy a new car at invoice
for $30,000 and the dealer has a 3% hold
back then they're gonna make at least
$900 on the sale of that car now just
look these up online and you can find
holdback really easily
just from a quick google search it looks
like most car manufacturers do an MSRP
hold back which is even better for the
dealer now the 900 bucks that the dealer
can make doesn't even include any
factory to dealer incentives any
financing charges or any accessories
that add to their profits and keep in
mind that really hot cars like the new
Ford Mustang can actually have
contingencies where the dealer can
charge more than the MSRP because of the
demand now if you're ok with that then
just go ahead and buy that new sweet car
but understand that the depreciation is
going to be huge on the car because you
just spent more than the MSRP on it now
before I move on to the negotiation
process I first need to talk about
factory rebates and buying a year end
car now if you've done your research
you'll find that factory rebates will
save you instant cash on the car whether
you pay invoice or you pay full retail
for it the rebates don't matter to the
dealer because they're gonna be
reimbursed from the car manufacturer
it's a win-win for everyone so make sure
that you find every single cash rebate
you can on the car that you're buying
and as far as your end cars go this just
means that the new models are currently
on the lot but the old ones are still in
the lot and they're trying to get rid of
them as your end cars and these are the
best bargains car manufacturers will
even give bigger rebates for the year
end cars to close out the inventory and
that's just a better deal for you I
bought my truck as a year end car and
that alone saved me about $6,000 I was
totally fine buying the year end car
because the next year's model didn't
really change very much so it didn't
matter to me
the only downside to buying a year end
car though is that you might not get the
exact color you want and you might not
get the
features you want but most of the time
there's enough inventory to find
something that fits your needs now on to
getting the best price for the car and
this is easier than ever when it comes
to buying a new car all you need to do
is find the car you want using
edmunds.com
true car comm or even Costco auto so
that you can find out what the average
buyer is paying for that car in your
area car prices can fluctuate a lot
based on where you live so make sure to
put your zip code in when you're doing
this information these prices are
usually below invoice based on the car's
demand and they'll include the factory
rebates as well and keep in mind that
demand has a lot to do with what you'll
be paying for the car if it's an easy
sale for the dealer they're not gonna
dig into their hold back because they
know that the car is gonna sell really
easy however if the car's been sitting
on the lot for a while then the dealers
most likely paying interest on their
flooring vehicle so they're gonna want
to move it as quick as they can
so with the car that's been sitting for
a while you can probably dig into the
hold back and save more money on it but
it all just has to do with demand
now once you've found the car that you
want online just submit your information
for no-haggle pricing and just wait for
the salesman to call you at this point
you need to confidently tell them over
the phone that you want the best out the
door price including all the associated
fees so it's your choice here you can
either go into the dealer physically or
you can just call around and just
remember to aim for a price that's below
average from all the dealers and make
sure to tell the salesman that you'll be
shopping other dealers and don't be
timid or rude be confident and polite
and you're gonna get the price you want
because nobody wants to deal with an
asshole when I was in sales I used to
have customers ask me confidently to not
bullcrap them and give them the best
price that I could offer no I knew that
I had competition so I would always give
the best offer that I possibly could in
order to get the sale most of the time I
could get the sale by being upfront with
everything but if I couldn't the only
reason was usually because the
competition had a better price that I
couldn't compete with so in this case
the sale was still worth it to me even
if I didn't make any money directly from
the sale and that's because of other
incentives so any good salesman will
understand this because he can just be
frank with you and win your business
just let the dealers fight for your
business because if it's worth it to
them then they'll give you the sale
now once you find the best offer and the
best service go ahead and go with that
dealer and prepare for the final step of
financing now this is the part where you
can let your guard down so make sure to
pay attention once you've got your new
car price below invoice just go ahead
and sit down in the financing office and
begin the process now as far as interest
rates go just go ahead and let the
dealer find you a rate as long as
they're not getting a cut that's the
easiest way to do it because they're
gonna find you all the best rates and as
long as they're not getting a cut and
it's a really really good value to you
and just a warning to you do not take
out a loan that's longer than five years
because you're gonna pay way too much in
interest and you're probably gonna end
up upside down in the car now if you
need some help with financing or
interest charges anything like that
check out these videos right here so as
far as extended warranties and carpet
cleaning and things like that understand
that these are negotiable - and that you
do not want to pay full price for any of
these so if you do want an extended
warranty then just tell the salesman
that you want to buy it at invoice he'll
probably sell it to you at invoice
because it's most likely still in his
best interest to make the sale now fees
and taxes are next so pay attention to
these because I'm gonna save you even
more money fees are just a hidden way
for dealers to make more money and
profits and taxes just plants suck I
mean honestly the dealer's margins are
pretty thin if you're gonna buy a car
the way that I do
so fees are somewhat justifiable but
even though they're justifiable they are
a bit dirty because they're hidden from
the customers now there's no way that
you can get out of taxes and
registration but you can get out of the
fees and the easiest way to know if it's
a mandatory tax or if it's a fee is if
you have to pay sales tax on it you're
not gonna have to pay sales tax on a tax
but you will have to pay sales tax on a
fee so if you look on your paperwork and
you see that you have some stupid
vehicle theft registration fee for 300
bucks plus tax then that's a fee just
tell the salesman confidently that you
want to have the fees removed and if
they tell you that they can't remove the
fee because it has to be documented then
tell them to lower the price of the car
or add more to your trade-in to
compensate for the difference that way
they still have it documented on paper
but you're getting out of the fee in a
different area and trust me at this
point they're not gonna be super stoked
on the deal because you're getting out
of everything now once you've got all
this stuff settled and signed the
can truly drive away knowing that you
got the best price possible for a new
car now once again I'm Jason with the
honest finance channel feel free to
subscribe if you're into this type of
content or at least give this video a
like that's all