January 17, 2024 • 12 mins
In this episode you’ll go through the car purchase experience and see the madness of dealerships, their ridiculous pricing, and the hidden add-on fees you might run into. Discover the auto auction specialist and save yourself time, stress, and a ton of money.
The car buying process has evolved over time and become a huge challenge. We'll go over what failing to meet a car payment means for you and talk about some of the questionable practices employed in the car market today, such as dealer markups on electric vehicles and mysterious add-on charges.
Whether you plan to buy a car or are just curious about the process, you should be prepared… so tune in!
Thank you for listening to The Millionaire Mindset Podcast with George Dines.
To connect with George visit www.georgedines.com
To Schedule a call with George visit: https://georgedines.com/contact/
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Welcome to the Common Sense Millionaire, where we
work to promote your financialadvancement in knowledge process
and education so that you andyour family become financially
secure.
This is the place I shareCommon Sense Action Steps that
you can take today to assistyour financial advancement.
So sit back, grab a drink andlet's get started.
(00:23):
Common Sense Millionaire here,welcome back.
So you want to buy a car Atsome point everybody says that
I've even said that myself.
Oh, I need to buy a car.
Well, I had that opportunity acouple of years ago and it's
really a lot different thanwhat's going on right now.
(00:44):
Let me just tell you whathappened for me.
My car was stolen and wastotally destroyed in a wreck by
the thieves.
It was very sad when I went togo pick up my documents and just
saw everything was a shell.
Okay, so I had to get anothercar, got the insurance payment
(01:07):
and went shopping, and this timeI decided I was going to do
things a lot differently.
I first started going to cardealerships and trying to talk
with the folk at thosedealerships and trying to
negotiate, which was ridiculous.
Pricing didn't make sense,options didn't make sense and
(01:29):
there were all these add-on feesthat didn't make any sense to
me at all and it was confusing.
So then a friend of mine wasvery nice to give me a phone
number of someone who couldhandle all of the madness
without me being involved, savedme a lot of time and, as we all
know, time equals money.
(01:50):
So I called the gentleman upand I told him well, you know,
this is what I'm looking for.
I need a blank, blank, blank.
And he said okay, what color,what options?
And I wrote all of that down,sent it to the gentleman.
He says fine, let you know, Ionly buy used cars, I don't buy
(02:12):
new cars.
And current rule is the 410rule no more than four years old
, no more than 10,000.
10,000 miles a year.
That typically covers leasedautomobiles, because people
don't want to go over theirlease allowance because that's
going to cost them X amount ofmoney per mile.
So I'm looking for a lease carthat is under warranty and has
(02:39):
been taken care of, because theperson who took out that lease
does not want to be responsiblefor not taking care of the car.
So anyway, gentleman goes to theauto auction.
Couple days later I have emailsthat have pictures of the
vehicles that he was able tofind.
He could not find the car thatwas available for me.
(03:01):
So he said look, I found these.
They're similar in scope, takea look.
Which one do you like?
He gave me the mileage.
One of them was under the 40kand had which was good for me
under 40,000 miles.
So I said OK, let's take a lookat that.
(03:23):
The gentleman takes my choice,packs the car up, brings it over
to his home.
I drive out there, meet him athis home office and the car is
there.
I get a test drive and I saidyou know what?
The car is perfect.
He told me how much he paid forit at the auction, showed me
(03:46):
the actual receipt.
I paid him a fee on top, Ibelieve.
At the time I paid him $1,500on top of what he actually paid
for the car at the auction.
That was his fee.
He did tags, titles, license.
That was it.
No arguing with bogussalespeople or sales managers at
the dealership.
(04:06):
He got that for me.
Everything is wrapped up.
It's been wonderful.
I still have that car.
It's a fabulous car with nodrama.
Now let's go look at today whatthe hell is going on in the car
market.
I have never seen suchridiculous stuff in my life.
In particular, lots of new carshave dealer markups on them,
(04:30):
especially if they're electricvehicles.
They have dealer markups oflike $5,000, $10,000, $15,000,
which doesn't make sense,because when I go by to look at
these places, the lots are full.
They're full of cars.
How can you be full of carsthat no one's buying but you're
marking them up?
(04:51):
$5,000, $10,000, $15,000?
It doesn't make sense.
There's other crazy things thatare going on.
If you're looking for a luxurycar, especially the German ones,
there was a feature I saw wherethe dealers are charging you a
monthly fee for using the heatin the seats.
(05:14):
You have to pay like $5.99 amonth to be able to turn the
heat on your seats.
This is not, to me, an issuethat the car manufacturers are
crazy.
This is an issue that thebuyers are nuts for putting up
(05:35):
with this kind of thing.
I have never heard of any crapin my life.
How do you have that kind ofsituation going on?
Even with that, you still haveto negotiate through the dealers
financing in order to get thecar out the door, and they're
back to their old tricks of ohwell, you're going to get this
(05:57):
special paint that will keepyour paint clean and clear of
dirt or you've got, oh, we'regoing to put nitrogen in your
tires.
I saw that an ad for that onetime where the dealer was
charging $400 to put nitrogen inyour tires because nitrogen is
supposed to be better than justair.
(06:21):
What the hell is going on?
On top of that, there are somany options in these cars that
people are paying $1,200 or$1,200 a month in car payments.
Does that make any logicalsense?
It's crazy.
What's happening I'm seeing isthat people are abandoning their
(06:44):
cars because they can't makethe payment, so they're turning
it in.
You're just saying, here, takethis back, or they're letting
the truck take it.
And what happens there?
Your credit is destroyed, okay,and you have a debt that you
can't really pay back becauseeither you don't have a job or
your job doesn't support it.
(07:04):
One of the theories out thereis that a lot of people kept
money over the COVID epidemicand because of that they weren't
able to spend their money.
So after COVID they went outand bought a really nice car to
drive around, but now they'veruined their credit for the next
seven years.
What?
(07:26):
I don't know what the heck ishappening.
But if you have to buy a car,let's go through some of the
things that you need to do.
The first thing is don't gostraight to the dealership.
Go online, search your car out,find out what the options are,
see what the detail of thepricing is.
(07:46):
Okay, just get that straight.
The second thing is afteryou've done that, figure out
what stuff you don't want.
You know that nitrogen andattire is a ripoff.
You know that some specialtreatment for your paint is a
ripoff.
So go through what you don'twant, take all those items out
and then go back and computewhat the price is Next.
(08:06):
How much can you put down?
I really do recommend that youtry to put something down.
You don't want to 100% financeone of these cars at a
ridiculous rate, especiallyright now.
So now you're probably gonna bepaying 78%.
On the last car that Ipurchased, which I still have, I
paid 1.74%.
Okay, nobody's gonna see thatright now.
(08:29):
So figure out what the paymentis going to be per month.
Then figure out where you'regonna get the car financed.
There's a lot of choices.
One is a regular bank.
You could do the bank and seehow that works out, and you
could test a couple of banks,find out what their rates are
(08:50):
and what their terms are goingto be.
Second, you can use thedealer's financing, but if you
do that, those guys are sharksand they're about making money,
not about giving you what youneed.
So how many times have I satthrough one of those dealer
meetings where they talk aboutoh, we've got this special
shampoo for your seats orsomething like that that they're
(09:12):
trying to sell as an add-on?
Okay, so you could go to themand find out what they're
offering and then compare thatto what you're gonna find
independently.
Finally, I think the best shotis to find a very friendly
credit union and join it.
I think you will find that therates for credit unions are a
lot lower than dealer financingor bank rates, and that should
(09:37):
be a good way to make sure thatyou've got all your bases
covered in terms of how muchmoney you have to put out of
your pocket every month.
But I will say this it may becheaper to get your car fixed.
If that's the reason why you'reshopping for a new vehicle At
this point in time, then it isto buy a new car with an
(10:02):
ungainly note.
The other thing too.
Let's be honest sometimes youlet things go.
You let repairs that should bedone go and that creates
problems in two ways.
One, you can't drive the carand two, the resale value of the
(10:23):
car will decline, with all ofthe drama that the company's
fine with the car that you'retrying to trade in.
And just remember, if you aretrying to trade in, you're not
going to get what you think thecar is worth.
You can go online and look tosee what the perceived value of
that vehicle is, but you're notgoing to get that because the
dealer is trying to make money.
(10:44):
So those are just some of thethings that you have to talk
about.
The other thing is, and finally,do you really need the car that
you're looking at?
Do you really need that?
Do you really need the flashysports sedan made by one of the
big companies in another country?
(11:06):
I'm not going to mention any ofthose countries Do you really
need that?
Is that really necessary At thispoint?
That may not be a realisticapproach to take on purchasing a
car.
Trust me, I've learned the hardway.
I had my fun with cars and I'mdone with it, and after some
experience with dealers, I'm notgoing back to that.
(11:29):
I've got somebody who's got mecovered if I need to get another
vehicle, and that's the way I'mmoving, not buying a new car,
because I'm not going to pay$5.99 a month so that I can have
heated seats or air conditionedseats.
So all I have to say is, if youwant to talk about this further,
I'd be glad to get you in touchwith the guy I work with, who
(11:54):
can make the entire buyingexperience much less troublesome
for you, and I think for mostpeople it works out a lot better
.
So just let me know, give me,an email to me, that'll be fine.
We'll get you going in theright direction.
You've been listening to theCommon Sense Millionaire, where
(12:18):
you can learn how to go fromzero to a million using Common
Sense solutions to everydayfinancial issues.
Make sure and subscribe to stayconnected for more content,
tools and help so you canadvance towards your financial
goals.
If you need assistance or havequestions, leave a comment or
you can email me at george atcommonsensemillionairecom.
Welcome to the Common Sense Millionaire, where we
work to promote your financialadvancement in knowledge process
and education so that you andyour family become financially
secure.
This is the place I shareCommon Sense Action Steps that
you can take today to assistyour financial advancement.
So sit back, grab a drink andlet's get started.
(00:23):
Common Sense Millionaire here,welcome back.
So you want to buy a car Atsome point everybody says that
I've even said that myself.
Oh, I need to buy a car.
Well, I had that opportunity acouple of years ago and it's
really a lot different thanwhat's going on right now.
(00:44):
Let me just tell you whathappened for me.
My car was stolen and wastotally destroyed in a wreck by
the thieves.
It was very sad when I went togo pick up my documents and just
saw everything was a shell.
Okay, so I had to get anothercar, got the insurance payment
(01:07):
and went shopping, and this timeI decided I was going to do
things a lot differently.
I first started going to cardealerships and trying to talk
with the folk at thosedealerships and trying to
negotiate, which was ridiculous.
Pricing didn't make sense,options didn't make sense and
(01:29):
there were all these add-on feesthat didn't make any sense to
me at all and it was confusing.
So then a friend of mine wasvery nice to give me a phone
number of someone who couldhandle all of the madness
without me being involved, savedme a lot of time and, as we all
know, time equals money.
(01:50):
So I called the gentleman upand I told him well, you know,
this is what I'm looking for.
I need a blank, blank, blank.
And he said okay, what color,what options?
And I wrote all of that down,sent it to the gentleman.
He says fine, let you know, Ionly buy used cars, I don't buy
(02:12):
new cars.
And current rule is the 410rule no more than four years old
, no more than 10,000.
10,000 miles a year.
That typically covers leasedautomobiles, because people
don't want to go over theirlease allowance because that's
going to cost them X amount ofmoney per mile.
So I'm looking for a lease carthat is under warranty and has
(02:39):
been taken care of, because theperson who took out that lease
does not want to be responsiblefor not taking care of the car.
So anyway, gentleman goes to theauto auction.
Couple days later I have emailsthat have pictures of the
vehicles that he was able tofind.
He could not find the car thatwas available for me.
(03:01):
So he said look, I found these.
They're similar in scope, takea look.
Which one do you like?
He gave me the mileage.
One of them was under the 40kand had which was good for me
under 40,000 miles.
So I said OK, let's take a lookat that.
(03:23):
The gentleman takes my choice,packs the car up, brings it over
to his home.
I drive out there, meet him athis home office and the car is
there.
I get a test drive and I saidyou know what?
The car is perfect.
He told me how much he paid forit at the auction, showed me
(03:46):
the actual receipt.
I paid him a fee on top, Ibelieve.
At the time I paid him $1,500on top of what he actually paid
for the car at the auction.
That was his fee.
He did tags, titles, license.
That was it.
No arguing with bogussalespeople or sales managers at
the dealership.
(04:06):
He got that for me.
Everything is wrapped up.
It's been wonderful.
I still have that car.
It's a fabulous car with nodrama.
Now let's go look at today whatthe hell is going on in the car
market.
I have never seen suchridiculous stuff in my life.
In particular, lots of new carshave dealer markups on them,
(04:30):
especially if they're electricvehicles.
They have dealer markups oflike $5,000, $10,000, $15,000,
which doesn't make sense,because when I go by to look at
these places, the lots are full.
They're full of cars.
How can you be full of carsthat no one's buying but you're
marking them up?
(04:51):
$5,000, $10,000, $15,000?
It doesn't make sense.
There's other crazy things thatare going on.
If you're looking for a luxurycar, especially the German ones,
there was a feature I saw wherethe dealers are charging you a
monthly fee for using the heatin the seats.
(05:14):
You have to pay like $5.99 amonth to be able to turn the
heat on your seats.
This is not, to me, an issuethat the car manufacturers are
crazy.
This is an issue that thebuyers are nuts for putting up
(05:35):
with this kind of thing.
I have never heard of any crapin my life.
How do you have that kind ofsituation going on?
Even with that, you still haveto negotiate through the dealers
financing in order to get thecar out the door, and they're
back to their old tricks of ohwell, you're going to get this
(05:57):
special paint that will keepyour paint clean and clear of
dirt or you've got, oh, we'regoing to put nitrogen in your
tires.
I saw that an ad for that onetime where the dealer was
charging $400 to put nitrogen inyour tires because nitrogen is
supposed to be better than justair.
(06:21):
What the hell is going on?
On top of that, there are somany options in these cars that
people are paying $1,200 or$1,200 a month in car payments.
Does that make any logicalsense?
It's crazy.
What's happening I'm seeing isthat people are abandoning their
(06:44):
cars because they can't makethe payment, so they're turning
it in.
You're just saying, here, takethis back, or they're letting
the truck take it.
And what happens there?
Your credit is destroyed, okay,and you have a debt that you
can't really pay back becauseeither you don't have a job or
your job doesn't support it.
(07:04):
One of the theories out thereis that a lot of people kept
money over the COVID epidemicand because of that they weren't
able to spend their money.
So after COVID they went outand bought a really nice car to
drive around, but now they'veruined their credit for the next
seven years.
What?
(07:26):
I don't know what the heck ishappening.
But if you have to buy a car,let's go through some of the
things that you need to do.
The first thing is don't gostraight to the dealership.
Go online, search your car out,find out what the options are,
see what the detail of thepricing is.
(07:46):
Okay, just get that straight.
The second thing is afteryou've done that, figure out
what stuff you don't want.
You know that nitrogen andattire is a ripoff.
You know that some specialtreatment for your paint is a
ripoff.
So go through what you don'twant, take all those items out
and then go back and computewhat the price is Next.
(08:06):
How much can you put down?
I really do recommend that youtry to put something down.
You don't want to 100% financeone of these cars at a
ridiculous rate, especiallyright now.
So now you're probably gonna bepaying 78%.
On the last car that Ipurchased, which I still have, I
paid 1.74%.
Okay, nobody's gonna see thatright now.
(08:29):
So figure out what the paymentis going to be per month.
Then figure out where you'regonna get the car financed.
There's a lot of choices.
One is a regular bank.
You could do the bank and seehow that works out, and you
could test a couple of banks,find out what their rates are
(08:50):
and what their terms are goingto be.
Second, you can use thedealer's financing, but if you
do that, those guys are sharksand they're about making money,
not about giving you what youneed.
So how many times have I satthrough one of those dealer
meetings where they talk aboutoh, we've got this special
shampoo for your seats orsomething like that that they're
(09:12):
trying to sell as an add-on?
Okay, so you could go to themand find out what they're
offering and then compare thatto what you're gonna find
independently.
Finally, I think the best shotis to find a very friendly
credit union and join it.
I think you will find that therates for credit unions are a
lot lower than dealer financingor bank rates, and that should
(09:37):
be a good way to make sure thatyou've got all your bases
covered in terms of how muchmoney you have to put out of
your pocket every month.
But I will say this it may becheaper to get your car fixed.
If that's the reason why you'reshopping for a new vehicle At
this point in time, then it isto buy a new car with an
(10:02):
ungainly note.
The other thing too.
Let's be honest sometimes youlet things go.
You let repairs that should bedone go and that creates
problems in two ways.
One, you can't drive the carand two, the resale value of the
(10:23):
car will decline, with all ofthe drama that the company's
fine with the car that you'retrying to trade in.
And just remember, if you aretrying to trade in, you're not
going to get what you think thecar is worth.
You can go online and look tosee what the perceived value of
that vehicle is, but you're notgoing to get that because the
dealer is trying to make money.
(10:44):
So those are just some of thethings that you have to talk
about.
The other thing is, and finally,do you really need the car that
you're looking at?
Do you really need that?
Do you really need the flashysports sedan made by one of the
big companies in another country?
(11:06):
I'm not going to mention any ofthose countries Do you really
need that?
Is that really necessary At thispoint?
That may not be a realisticapproach to take on purchasing a
car.
Trust me, I've learned the hardway.
I had my fun with cars and I'mdone with it, and after some
experience with dealers, I'm notgoing back to that.
(11:29):
I've got somebody who's got mecovered if I need to get another
vehicle, and that's the way I'mmoving, not buying a new car,
because I'm not going to pay$5.99 a month so that I can have
heated seats or air conditionedseats.
So all I have to say is, if youwant to talk about this further,
I'd be glad to get you in touchwith the guy I work with, who
(11:54):
can make the entire buyingexperience much less troublesome
for you, and I think for mostpeople it works out a lot better
.
So just let me know, give me,an email to me, that'll be fine.
We'll get you going in theright direction.
You've been listening to theCommon Sense Millionaire, where
(12:18):
you can learn how to go fromzero to a million using Common
Sense solutions to everydayfinancial issues.
Make sure and subscribe to stayconnected for more content,
tools and help so you canadvance towards your financial
goals.
If you need assistance or havequestions, leave a comment or
you can email me at george atcommonsensemillionairecom.
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