Top 10 Ways to Beat a Car Dealer | Auto Expert John Cadogan | Australia

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Here are the updated top 10 tips for beating a car dealer and buying a cheap new car without getting ripped off. It’s how you can fight back, and organise a much better deal on basically any new car.
Buying a car is not fun. Everyone on the other team is match fit, and systematically incentivised to rip you off – if you let them. But it doesn’t have to be this way. Here’s how to recognise the car dealer’s tricks and sidestep the traps.
Let’s focus on the car you want. It might not look like a commodity, but that’s exactly what it is. There’s no qualitative difference between the car you want at Dealership A and the same car at Dealership B. They came out of the same factory. Their mothers can’t tell them apart. The dealership doesn’t change them in any way, or add intrinsic value. The dealership is actually just a fancy vending machine.
When you’re buying a commodity, the only factor that matters is the price. Lowest price wins. That’s what you need to deliver. For more advice, fill in the contact form on the right at – I’ll help you see just how low the price on your new car really goes. I’ll also show you how to put your trade-in out to tender and arrive at the highest possible price, if you lack the time or the inclination to sell your old car privately.
Buying a car is not an uplifting experience. It should be, but it’s not. It’s challenging, stressful and generally fairly unpleasant. But it doesn’t have to be a rip-off. You absolutely can drive away in a cheap new car without being absolutely violated by a car dealer. Especially now.

coming up the top 10 tips for beating a car dealer how you can fight back and organize a much better deal buying a car is not fun everyone on the other team is match fit and systematically incentivized to rip you off if you let them but it doesn't have to be this way here's how to recognize the tricks and sidestep the traps you car dealers are under pressure at the end of the month every month that's when they need to report back to the car companies if they sell their quotas there's a huge bonus if not they're out in the cold for the next 28 days so the only time for serious negotiation is the end of the month if you pitch a low offer at a dealer who's short of his quota you might be surprised just how enthusiastically he embraces it timing is everything always shop at the end of the month and pitch your offer well below the driver way price dealers actually own all the cars on the showroom floor and plenty you can't see in holding yards out the back they're bought on credit and the interest on that credit is substantial so the dealer is highly motivated to sell any car in stock now zero in on one of those that's where all the real discounting happens there's no such thing as an insulting ly low offer because you can always come up the car in stock now might not be exactly the car you want you can use that to your advantage if it's automatic and you want the manual tell the dealer he needs to make it worthwhile you could say that even if you secretly did want the auto it's an option if it's silver say you wanted red dealers will discount cars in stock but if they have to order one in the potential for discounts just evaporates part of the trick is actually finding a dealer with exactly the car you want in stock now and then tell him you wanted a slightly different car and talk the price down if there's a waiting list you can forget about any discount buyers are queuing up supply and demand says there's no reason to offer any discount you can wait a few months until the next big thing comes along and demand follows suit or you can just buy another similar car or you can buy now and pay through the neck but when demand exceeds supply is basically no discount for anyone even without thinking about it you might find yourself conducting three transactions at a dealership you by a new car but you might also trade in your old one that arranged finance dealers make it so easy to do this but if that's what you do you're giving the dealer breathtaking leverage and he will use it it's at least two additional ways to rip you off they can leverage the new car against the finance and also leverage the trade-in against the new car they can give you a great price on the new car and Bend you right over on the trade-in and the finance so only buy the new car from the dealer sell your old car separately and arrange the finance independently if you separate those three transactions you block the major opportunities the dealer has to rip you off and it'll be much easier to identify any remaining ripoffs within that single car buying transaction always get the dealer to tell you the all up driver way price get him to go first then you take off 10 to 20% and counteroffer with a nice round number if the dealer says thirty four nine ninety drive away you say I can't spend more than thirty grand but I am prepared to do business with you now at that price if he says twenty nine four ninety you say can't spend more than twenty five if he says 41 nine ninety you say didn't want to spend more than thirty five I can probably stretch up to thirty six it's not that hard to negotiate don't be intimidated talking about money the dealer certainly isn't at this point the price is the only impediment so here's how to stick to your spending limit you've got to make your spending limits somebody else's responsibility and it has to be someone who's not there if you're a bloke you say mate if I spend more than 25 grand today my missus will kill me if you're a chick lay it all off on the boyfriend it's his problem it doesn't really matter who holds the limit they don't have to exist but try not to make it the Easter Bunny it only matters that this person is not actually present the absent third party is essential so you and the dealer you're on the same page you want to buy the car he wants you to buy it so that's nice you're in it together the only speed hump is the absent third persons limit they're not present so the dealer can't go to work on them what a pity because you'd love to spend 4 grand more right but if you do permafrost back on the domestic front and nobody wants that so he says thirty four nine ninety you say thirty grand because someone who's not there is going to dismember you and feed you to the rats possibly in the other order if you overspend a dealer says no way you go okay no problem I'll just keep shopping around thanks for your time you shake hands and then walk away if the dealer lets you go he's just not that motivated alternatively if those bonuses are in fact writing on your sale and that car is in stock now you might be amazed just how flexible the price suddenly becomes walking away puts you in a very powerful negotiating position you could fill Wikipedia with the top lies and half-truths used to sell cars dealers need you to transact now before you walk out the door and change your mind or spend your money elsewhere they'll say anything for a signature and a deposit that's the game any alleged special price for today only is a lie the other customer who's rushing back in with a deposit that's a lie big price rises tomorrow that's a lie trade-in that's $8,000 lower than your thought that's a lie too and why are you even discussing that you need to separate the transactions assertions about in-house finance being great are lies that's actually a half truth in house finance is great for the dealer but basically if you took away all the lies used to get you across the line dealerships would be big fat chrome glass cones of silence the only safe assumption is assume it's all BS don't play the game it's better to be the organ-grinder than the monkey here time for the golden rules if you've got the cash how about you make the rules dealers generate very healthy cash flow by selling you a stack of things you don't need at extortionate prices paint protection is a joke so is rust proofing and fabric protection you just have to say no the in-house insurance is also a ripoff it'll be rebranded insurance from a major insurer marked up by something like a hundred percent the in-house finance you'll always do better independently 0% financed that's a complete ripoff – dealer delivery charge that's like two grand for washing the car filling the tank screwing on the plates and making sure there's oil and water in the respective reservoirs I'd be negotiating that down to well under a thousand bucks meeting the sales manager this is a classic – it's not an opportunity to get the price down it's a double team effort to get a deposit and a signature out of you right now twice the coercion half the fun just don't meet the sales manager it's not necessary being subjected to all these incremental insidious vectors along which dealers try to dock their vacuum cleaner with your bank account is certainly an endurance event they want to try and wear you down and in the moment you might just say yes just to make the pain go away but remember you need to say one word no there's only one way to tell if you're getting the right price if you're buying a TV you can always shop bingley again scogan the good guys Meyer and David Jones it's easy but if you're buying a car you need a car broker what you do is you negotiate a price at the dealership but don't pay a deposit or sign a contract then see what a car broker can do brokers buy cars all day long their business model is delivering a saving to you they use bulk buying power and their knowledge of the retail market to get the price down it's surprisingly good at it and they work for you once the broker gets the price you can transparently compare the price you've been able to negotiate independently with the price you've just been offered by the broker it's the only way to make sure you're getting the best possible price let's focus for a sec on the car you want it might not look like a commodity but that's exactly what it is there's no qualitative difference between the car you want a dealership a and the same car at dealership B I came out of the same factory that mothers can't tell them apart the dealership doesn't change them in any way or add intrinsic value the dealership is actually just a very fancy vending machine when you're buying a commodity the only factor that matters is the price lowest price wins that's what a broker delivers nine times out of ten so fill in the contact form over there on the right at Auto expert calm day you I'll put you in touch with an ethical car broker who can see just how low the price on your new car really goes the broker can also put your trade-in out to tender if you like the time or the inclination to sell your old car privately buying a car is not an uplifting experience it should be but it's not it's challenging stressful and generally fairly unpleasant but it doesn't have to be a ripoff you can drive away without being absolutely systematically violated especially now I'm John Cadogan and that was pretty much everything car dealers don't want you to know thanks for watching

27 thoughts on “Top 10 Ways to Beat a Car Dealer | Auto Expert John Cadogan | Australia

  1. I heard the dealerships financial year is from March to March the following year. Is it best to buy then? It seems most car dealerships tends to offer more extras and they have like a March sale madness or some sort.

  2. "0% finance is a rip off".. with no explanation as to why..
    And you're advertising car brokers who will negotiate the car price to include their backdoor fee. A lot of talk, mostly nonsense.

  3. “If the dealer lets you walk away he just isn’t that motivated” or the price asked for simply isn’t possible. It’s just a huge copout, if I asked a carpenter to build me a house for $1,000 and he refused, is he just not that motivated?
    “Any alleged special price for today is a lie”
    Sure but the first rule is but at the end of the month, so is it a good time to buy or does it not matter? This is basically all just anti-salesperson propaganda that feeds of people’s unrelenting fear not to be “ripped off”.

  4. I was at a Honda dealership last year. I still haven’t bought a new car. Anyway,this guy says that the cost of their cars is fixed! Really! Never heard of that one. In other words,he didn’t want to make a deal!

  5. LOL … I took my son with me to buy a used Van. After my "negotiations" with the salesman, (as he went "to discuss my offer with their mgr) my son said he couldn't believe how hard I was on the guy! LOL I told him used car salesmen are there to be abused, I walked out with the van at my price and no lic / transfer fees. The education for my son? Priceless!!

  6. Before buying his truck, when my dad went truck shopping he was approached by a salesman, and he simply said “im going to be paying cash and i only want to deal with you; bring someone else and i will walk away.” Long story short he did buy the truck, but after 2 days of negotiations and almost pricing the trade in for almost 200% over its value.

  7. You seriously need a slap around your bald fat head, HOWS YOUR FALSE ADVISE on the broker due to you getting a plug with something your involved in… come back and present some proper information, until then please you've had your 15mins of fame, remove yourself.

  8. Look at it this way if you walk into a Best Buy or Walmart and try to negotiate on a tv that is market up 200% your going to get know where and your also going to get bad service go into a car lot and salesman will tell you every fact every feature bring you coffee Waite on you hand an foot to make a sale your buying big purchases suck but the salesman helping you is getting surveyed graded rated from every internet source witch impacts there pay to the extreme ! You get a 9 instead of a ten on a survey salesman loses up to 12k that year you can buy a car anywhere pay for your customer service and experience! It’s the same as tipping you’re waiter or waitress I sell cars and your lucky to make 100$ commission on a new car after putting in hours of work showing the car telling features gassing the car internet follow up delivering the car it’s crazy pay for the service you receive if Walmart sold cars they would get tag price everytime for no work and no info on the product facts for you all!

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