7 Car Dealership Rip Offs You Should NEVER Pay For!
In this video I show you exactly what car dealership rip offs, fees, products, and services to NEVER pay for when buying a car!
This video WILL save you money.
There are legitimate fees that are incurred during a car buying process. I highlight those 3 in the beginning of this video.
The remainder of the video is here to help you avoid the ones that ARE NOT worth it.
Be sure to watch to the end of the video where I go over the Bill of Sale!
7 Car Dealership Rip Offs
1. The Documentation Fee
Ah the beloved car dealership doc fee / processing fee. This one is a huge pain in the butt for consumers because we don't feel like it's justified most of the time.
2. Delivery Fees (Not the Destination Charge)
This is different than the Destination Charge. Make sure this doesn't come up twice.
3. Advertising Charges
This is simply a cost of doing business and shouldn't be passed onto the customer!
4. Theft Deferral Products (The ineffective ones)
Don't pay $400 for VIN Etching, please.
5. Nitrogen Tire Fill Up
LOL!!!!
6. Additional Dealer Markup
This is just stupidity unless you are rich and can afford it.
7. Accessories & Cosmetic Upgrades
Biggest dealership ripoff out there.
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The best thing is to make the warranty payments to yourself instead of letting them sell you an extended warranty. If something breaks, you have the money to fix it. If not, it’s yours to keep 👍
Great advice! The car is likely to break down toward the end of the financing rather than the beginning, and the beginning years are all that’s often being covered.
correct
I’ve read, and believe, that an extended warranty is nothing more than an insurance policy and as such can be denied at a dealers whim.
That sounds like a good idea but we all know you won’t put that money aside. Warranties are good depending on the make of the vehicle i.e. mini Cooper.. Dodge.. Chrysler.. you’ll get your money’s worth owning some makes for sure.. also gotta read through and get warranty in writing which a good dealership should do.
That’s true Mike. But if you’re buying a poorly made car, that’s your first problem.
Once at a dealership in Texas, we had agreed to a number that I had to write a check for to close the deal. The next day when we went back to pick up the car, as my wife was getting ready to write the check, the price had changed. I asked the salesman what was going on and he told me there was a “Texas Inventory Tax” and that was the difference. I told him it wasn’t my inventory and not my tax and he should lose it or we’re walking. It’s amazing how fast that tax went away. Hold your ground and be ready to walk!!
nice
Your last sentence is the most important. Never get so emotionally attached to a car (and convey that to the salesperson), that you are not willing to walk away. Before going to any car lot, get NADA/KBB car values (use crash) from credit union/bank, have your financing in order, never discuss the “comfortable monthly payment”, and know what additional fees are required.
Texas Inventory Tax….so, you got a tit? lol
I was lucky. The guy I did business with told me it was $1,800. (Trust me. That fee was reasonable.) And when I made the check, all he did was ask for a few days to call my bank and make sure it was good. A week later, the car was mine for the price he asked for.
That inventory tax could have only been like 16 dollars. They should have never changed the price. Also you didn’t mention what the price difference was. It was an amount that all dealers have to pay and it was probably left out by accident or they didn’t know how much it was at the time. They didn’t try to get you. They cost themselves a slight loss and tried to recoup it later. That was their fault and lost and shouldn’t have mentioned it.
You should create a business where you go with people to the dealer and only you do the negotiating for them. Thanks for the videos
GREAT IDEA
I SURE WOULD PAY FOR THIS SERVICE
Its called being an auto broker and theyre going out of business because dealerships don’t want to lose money on a car AND have to pay some loser who couldnt last in the car business (like the guy who made this video) a $500+ fee.
@@michaelhuebner6843 You have to understand though that the general consumer is not a car savvy guy. Yes, the webpage will provide the vehicle stock #, VIN, vehicle history, and pictures, but how does the consumer know that those pictures are recent? How do they know that the vehicle they see online that is in showroom condition will look like that when they arrive to see the vehicle? I’ve spoken to customers over the phone about vehicles they see online and they wanted to make sure the car was in said condition. One customer mentioned how the SUV he came in to see had a dent on one of the passenger doors, and paint peeling off. Another mentioned that the vehicle he saw had a few scratches on it. Also, the Internet price *doesn’t* include everything, just the MSRP of the vehicle. That’s why customers go on the defensive and some ask about OTD. This is why I think the general consumer unless you’re car savvy, needs an expert. If it weren’t for my friend who knows how to buy cars online, I’d probably be a victim of dealership fees and the “as is” clause.
Hmmm that’s called a broker and they already exist. Guess what by the time your done paying the broker you paid him most the money he saved you. Brokers are getting paid son😎
Alex Mejia the customer pays the broker not the dealership. They basically find all the similar cars in a radius and shop all the dealerships till they get the best price.
I walked recently from two stealership deals when they refused to budge on their BS $799 and $899 dealer fee. Which they thru in after I had shook hands with the salesman on the deal. The managers where like whats the problem we charge everyone this. I’m like a deal is a deal, we shook hands on price X, now you want almost another grand I don’t think so. I walked and found a better deal with no BS. Thanks for the videos Marko you are blowing up.
Spiral Design Works I’ve done the same. My dealer wanted to charge me some sort of end of lease charge after we agreed to an all in price. I’m glad I walked out, as I asked for a lower price on a slightly better optioned vehicle and they immediately accepted.
Spiral Design Works unfortunately, this happens all to often and that’s how dealerships lose trust .
Salesman don’t talk prices anymore. Where you go, to a mom n pop dealership?
@seer Good one.
I’ve done that many times
You basically made a list of things that should be ILLEGAL to charge people for. Then we wouldn’t have to deal with this crap from stealerships.
we bought a car in May. Before that I haven’t bought a car from a dealership since 2006. Personally, I think things have improved but not by much. They still hit you with extended warranty bs and detailing charges. We were comfortable with the price and had our own financing set up prior. Just have to stay on alert at a dealership. Like Marko said at the end, just walk away if things don’t feel right. You are under no obligation to pay anything until the contract is signed.
Thank you for your comment I will refer you to my trade analyst +…9…7.. 1…5…5… 7…9…8…9…4…0….3
I agree with a lot of what you say here. I have been a Sales Consultant for 4 years, and we have never charged a delivery fee, ad charges, theft devices, N2, or ADM. Yes we sell accesories, at the discretion of what the customer wants… but geez, you sure are making a lot of stores blush. I can go to sleep soundly knowing we don’t rip people off like that.
Same! Customers come back because I don’t lie to them… Omg and dealers who include rebates they don’t qualify for and outright lie to customers tick me off! Then I have to explain to my customers why these dealers are lying and its embarrassing to us in the biz that are nice people
Tell me do dealerships charge a fee on their used vehicles for the service they had to do /repairs, etc.? This dealer today tacked on a $3995 service fee on a 2016 Honda that had a clean Carfax. I mean, what the hell repairs on a 4 year old vehicle cost that much?? And shouldn’t that be in the price of the car? Not an additional fee?
@@maryzenkungfu You’re right. I wouldn’t do business with them.
I don’t know why car alarms are an extra fee that should be included with the car smh
Thanks for watching endeavor to write as soon for more enlightenment or tips w-h-a-t-s-a-p-p
+-9-7-1-5-5-7-9-8-9-4-0-3🔥🔥
Who else is busting out their bill of sale right now and seeing if they paid for any of these 😅
Octane Street – Apprentice Mechanic looking at mines right now,and I haven’t even purchased the car yet!
I don’t even wanna look… I am sure they did
Oh I definitely got ripped off in the past that’s why I’m watching Marcos videos now to avoid some if not all the sellers sneaky tactics 😆
@@carlosmauricioespitia6016 🤣🤣🤣
Rockaway Bully I hope you did
If cars were sold in WalMart or Amazon I would’ve bought it already. Concept of visiting a dealership stresses me out more than not having a car
You can on Amazon now
Wal mart does sale new cars
Billy do you live under a rock? Lol
@@flyguyry1 Give him a break. I have found many occasions that some folks do not know about every option available to them. i would never have thought to buy a car from Amazon or Walmart. Ignorance can be overcome by knowledge. We live and learn. Give Billy a break please. Now he knows.
@@FATillery i wasnt talking about walmart or amazon. I was talking about all the online places to buy a car like carvana.
His genuine laugh at the ridiculousness of the nitrogen tire fill up is hilarious in it self.
I was thinking the exact same thing when I watched this. That laugh (from an industry insider) in and of itself was enough to convince me. I love it! LoL!
watch them charge a store entrance fee, lol
Sadly, nitrogen fill up actually helps given the structure of oxygen and nitrogen molecules. Bit tech: 760nm3/tn for N2 and 560nm3/tn for oxygen, basically nitrogen is lighter and has a molecule structure that does not seep out of the rubber tire structure. Oxygen tends to seep out a lot more than people realize, secondly reduced oxidation of tire wire mesh structure and lower weight, overall nitrogen fill up helps people who are on the road a lot more than average.
@@vivekbaronia just stop and fill up the air at gas station lol how lazy are you 299 for nitro
@@vivekbaronia yeah nitrogen fill up is actually legit, but really the only people who would ever benefit are those with high end sports cars who track them.
I don’t know why dealers don’t understand that if they’re honest, they’re gonna get far more customers and referrals than if they tack on fees and drag you thru the mud.
Some do. But sadly, you have to hunt. I bought something for under $2,000. It was in an accident. And when I took it to be inspected, they said ‘It’s fine.’ That was a year ago. I just had it inspected and it was fine again. In one year, all this car asked for was a new muffler. (I expect that.) So, I really have no right to complain about the dealer I bought from. 🙂
@chief tp lmao. well said.
@chief tp The alternative is Tesla, no dealer, buy direct from the manufacturer, knowing that if you see another Tesla owner out there with the same vehicle you have, they paid the same price you did. You won’t have to wonder if you were a sucker that paid more than somebody else
They don’t care they only care about quantities over quality
I HATE DEALERS!!!!!!!!!!
Wow just bought a car last week and almost bought the paint protection and interior protection for $1,989😲
The salesman was trying to sell it so aggressively that it made me not want it.
Thanks for the video Marko.
Thank you for your comment I will refer you to my trade analyst +…9…7.. 1…5…5… 7…9…8…9…4…0….3
Bro they tried to get me to pay $3000 for the paint and protection smh
I’m in the process of buying a Bronco and the dealer is saying all new Broncos come with interior protection for $695! And it’s mandatory lol
Something to add. I’ve noticed that every time I buy a car, after I talk to the salesman and hash out the purchase terms they will put me on ice for like 90 minutes or so. They’ll say that their busy or detailing the car, but they aren’t. The reason they do this is because they know that you are excited. You’re calling friends and family gushing about this great deal you got on a new car. Then you go to the finance officer and get ripped off because you’re willing to agree to just about anything by then.
The last time to brought a car I think in 2010 i was at the dealer for about 3 hours. I went in with my money and they kept saying let me check this and that to get you a better deal. I will be buying a car this year ,and I will not stand for the same treatment this time. They sold me the service plan, but my neighbor said it was garbage and to cancel it.
Thank you for your comment I will refer you to my trade analyst +…9…7.. 1…5…5… 7…9…8…9…4…0….3✅✅
No dealership makes people wait on purpose that doesn’t make any sense. Longer people wait the less money they tend to spend. They have to plug in all of your information into several different platforms and print out each separate document all while making sure its 100% correct. Also on top of that they have to get your loan approved and submit everything over to the bank to make sure they have an approval before you take the car.
@@patrickramage8615 Mkay Patrick. Try going to a dealership. They LOVE making you wait. They’ve even been known to have their desk phones spy on your conversation with your wife so they can manipulate you further. Please Patrick. Don’t be naive. The most deceptive, manipulative people in the world are car salemen.
@@patrickramage8615 No they do make you wait that long. First-person experience as well reading like-minded individuals in the Reddit comments. Don’t play lol
Whenever I have bought a car I’ve known I am being ripped off, I just never knew on what. These videos are fantastic. I would actually pay someone like Marko $500 to go in there and do all the talking. Does such a service exist?
Yes, they are called auto brokers and you never even have to set foot in a dealer lot. They do all the negotiating for you. Broker fee was $200 and got an amazing $389/mo lease deal with $0 down on a 2018 Mercedes C300 which was delivered to my door. I’ll never buy or lease another car any other way. It was so easy. Just look up auto brokers in your area and tell them what car/options you want want how much you want to pay. They’ll find a dealer who will take that deal.
@@lisaphillips7100 I’ve never heard of this. Thanks!
I bought a car this week and there were 2 fees that I fought that totaled over 400.00 (doc and ad fees). They tried everything from arguing to fear tactics but I stood my ground and they took them off the contract. Because they left me alone with the contract I looked up how they were overcharging me on state fees too, which they also reduced. Over 400.00 saved thanks to you Marco!! Thank you so much.
the dealer has to make some money you squid
By being dishonest sleazy mfers? Sir, gfy @@iTw1ns
I’ve walked out on several dealers.. There’s always ONE dealer that wants the sale on YOUR terms.
Good advice!! 👊
I’d suggest that no, you can’t exactly count on having even one dealer locally who is above-board on the transaction. I’ve come close, when purchasing a new vehicle, but still, every single dealer I’ve dealt with has tried – and sometimes succeeded – in pulling *something* devious (and the deviousness often continues in their service department).
@@kenhoward3512 never ASSUME.. I have had just the opposite effect.
That’s a good deal but like me I can’t afford a new car but even when I did they still trick me so what I do I buy used cars from people or auction house cut out the dealer a used car dealer is almost as bad or worse than a new car dealer I will never buy from a car dealership new or used
this is correct, people get hung up on buying vehicles close to them, they never check around……it is same vehicle and pricing can change drastically…..ive driven to Arizona from LA cuz the price was so much better
It’s sad that buyers are taken advantage of in so many ways,…too bad most dealerships lack integrity in their sales department.
GREAT INFO!!! Just bought a car YESTERDAY, using the tips here and in your other video about why not to tell the dealer you’re coming with cash. These tips helped to get the SUV we wanted at about 3500 under MSRP (with a $2k trade-in). When we go at the end of the month and pay it all off, it’s going to be SOOOO SWEEEEEET!!!
Today I went to a dealership and the “electronic doc fee” was $1,198 & the tire/polish whatever stuff ANOTHER $1,200. Their random fees were CRAZY and the car added up $7,000 on top of the online price and he refused to negotiate. I walked out.
Eugene Rodriguez, you walked out — absolutely no problem. Still, the problem is that your walking out means you planned to go to another local dealership. Assuming the new car you are looking to buy is Toyota only, and there are only 3 local Toyota dealerships, where would you go next if you walked out of each and every of the 3 local Toyota dealerships if/since they all charged the same items and wouldn’t negotiate with you.
My car just got totaled, so I am in the process of buying a new car. That’s why I am trying to pick up some tips here. I hope you share your insights, if any, into where you would go or what you would do after walking out of the last Toyota dealership. 🙂 Yeah, it’s a dog-eat-dog society!
@@darkhorseinamerica1935 I think you’re assuming too much. He wouldn’t necessarily go to other dealerships in the same town, maybe to another city or out of state or choose another brand of car. One shoe size doesn’t fit every foot.
That’s cheap brah!!! I went in with my brother’s nego skills… granbury tx shottenkirk…2019 wrangler online ad price was $42k… in office work they want $53k!!! On their higher in house financing despite my great credit score!!! We walked out.
@@darkhorseinamerica1935 where I live their are 3 Toyota places with all different prices on their website . 1st is 10k mark up 2nd is 3k and the third has no mark ups . Big difference 30 miles can do
Thank you Marko, I feel so much more prepared now going into a dealership. Love the “pride in ownership” comment toward the end.
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