A former car salesman shares his expertise on how to avoid getting ripped off when buying a car at a dealership. He explains the concept of the "four square" method, where dealerships present four figures: trade-in value, MSRP, down payment, and monthly payment. He warns that dealerships often focus on the monthly payment to distract buyers from the total cost and profit margins.
Key takeaways include:
1. Know the value of your trade-in and negotiate its price separately.
2. Don't focus solely on the monthly payment; consider the total cost and interest rates.
3. Dealerships often make a profit by inflating interest rates and selling warranties at a markup.
4. Be aware of the numbers and don't be afraid to negotiate.
5. Consider bringing your trade-in to the negotiating table last, after agreeing on the car's price.
By being informed and aware of these tactics, buyers can make more informed decisions and avoid getting taken advantage of by dealerships.
Here are the key facts extracted from the text:
1. The speaker, Rodney, is a former car salesman with experience in the business.
2. He is creating a video to help people avoid getting ripped off when buying a car at a dealership.
3. The video focuses on a concept called the "four square," which is a method used by car salesmen to present numbers to customers.
4. The four square includes the customer's trade-in value, the MSRP of the car, the down payment, and the monthly payment.
5. Rodney explains that customers often focus on the monthly payment and down payment, but neglect to consider the trade-in value and MSRP.
6. He advises customers to research the value of their trade-in and negotiate a good price for it.
7. Rodney suggests that customers should not reveal their trade-in until they have negotiated a good price for the car.
8. He warns that dealerships often make a profit by lowballing the trade-in value and selling warranties at a markup.
9. Rodney recommends that customers ask for the warranty to be sold to them at cost.
10. He emphasizes the importance of considering all the numbers on the four square, not just the monthly payment and down payment.
11. Rodney advises customers to be aware of the interest rate they are being offered and to ask about any additional fees or charges.
12. He warns that dealerships may pad the numbers on the four square to make room for additional fees or charges.
13. Rodney suggests that customers should be cautious of dealerships that try to sell them extended warranties or other add-ons.
14. He recommends that customers do their research and come prepared to negotiate when buying a car.
Note: I've excluded opinions and personal anecdotes from the list, focusing only on factual information.