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Speaker 1: Welcome to Out of Money. I'm Joel and I am

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Speaker 1: Matt and today we're talking car buying with an Edge

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Speaker 1: with Ray and Zach Schefska.

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Speaker 2: Yeah, and so one of the reasons we're pumped to

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Speaker 2: have our guests joining us today is because it might

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Speaker 2: finally be time for you to buy a car. Just

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Speaker 2: think back a few years ago. Supply chains they were

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Speaker 2: snarled during the pandemic, leading to auto values actually increasing

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Speaker 2: pretty much across the board. Cars they weren't depreciating, they

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Speaker 2: were appreciating. But that's no longer the case. That being said,

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Speaker 2: cars are still expensive transportation costs. It's a massive line

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Speaker 2: item on most budgets. And here to talk to us

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Speaker 2: about how you can spend less on that car is

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Speaker 2: Ray and Zach Schefska. They are the founders of Car Edge,

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Speaker 2: which is so courage They're a customer centric buyer's agent

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Speaker 2: company basically that gets you the best deal possible. And

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Speaker 2: Ray and Zach they're going to share their secrets. That's

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Speaker 2: the hope at least of how they do it. They've

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Speaker 2: got over forty years of experience within the car business

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Speaker 2: and now they're working to make the auto the car

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Speaker 2: industry more transparent. Ray and Zach, thank you so much

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Speaker 2: for talking with us today.

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Speaker 3: Well, thank you for having.

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Speaker 4: You forty years pop to you. Hear that forty years experience?

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Speaker 1: I got take that, well forty forty three.

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Speaker 3: Yeah, Between the two of us, we have forty three

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Speaker 3: years of experience. And well Zach's my.

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Speaker 1: Son, yeah, father son too. I love it, And you

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Speaker 1: guys have been our clutch on YouTube. I love that

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Speaker 1: not only do you offer this this service that people

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Speaker 1: can pay for, but you also make available so much

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Speaker 1: of the knowledge that you guys have built up over

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Speaker 1: those many years for free on your YouTube channel, putting

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Speaker 1: out content all the time. First question that we ask

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Speaker 1: of anybody who comes on the episode, though, is what

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Speaker 1: do you like to suplurge on what we call it

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Speaker 1: our craft beer equivalent? Because Matt and I will spend

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Speaker 1: maybe too much money on beer, some people would say,

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Speaker 1: but we're also at the same time, we're saving, we're

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Speaker 1: investing for our future. So what's that for both of

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Speaker 1: you guys that you maybe splurge a little bit on

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Speaker 1: that other people My thing's crazy?

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Speaker 3: Well, if you're asking me, I splurge on watches. I

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Speaker 3: am a watch addict. I have I think thirty five

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Speaker 3: watches at the moment and three on order. Oh and

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Speaker 3: the whole idea and concept behind this is I figure

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Speaker 3: the more watches I have, the more time I have left.

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Speaker 1: How many do you wear it? One time?

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Speaker 2: Ray?

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Speaker 1: Is my question?

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Speaker 3: Just one? And I never wear the same watch more

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Speaker 3: than once in any given week.

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Speaker 1: Okay, it's impressive. Okay.

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Speaker 2: I recently came across a watch club randomly on a

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Speaker 2: date night with my wife, and I got to learn.

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Speaker 1: A little bit about watch collectors.

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Speaker 2: Are you drawn to like the European German kind of

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Speaker 2: style watches or is it more the Japanese movements. I'm

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Speaker 2: curious if.

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Speaker 3: I have some that are from Germany. So I have

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Speaker 3: some German watches. I have some watches that were built

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Speaker 3: and made in France, some that were built and made

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Speaker 3: in Australia, many with Japanese movements, many with Swiss movements,

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Speaker 3: some that are courts movements, and some that are automatic movements.

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Speaker 1: How do you feel about the Cassio's right the castle?

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Speaker 3: Well, when I want to wear a cheap watch, I

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Speaker 3: want to wear a Cashio, Yes exactly.

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Speaker 2: He does not discriminate. What about yeah? What about you? Zach? I?

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Speaker 4: Just I want to mention my dad loves a watch

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Speaker 4: that's on sale. The number of times I've been over

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Speaker 4: his shoulder and I see the Facebook ads and it's

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Speaker 4: like forty eight percent off, and it's like, oh, I

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Speaker 4: just bought another watch, Zach, So he loved me to sale.

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Speaker 4: I'm embarrassed to say this out loud. I probably have

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Speaker 4: fifteen to twenty pairs of Hokah Clifton running shoes. I whoa, Yeah,

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Speaker 4: I just love walking in them. And then I also

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Speaker 4: trained for triathlon and so I'm kind of running through

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Speaker 4: them all the time. And I just love expressing myself

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Speaker 4: with really cool sock and shoe compos so all the

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Speaker 4: time of my splurge.

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Speaker 2: Okay, so the Clifton specifically, I'm literally wearing a pair

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Speaker 2: of Hocus right now.

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Speaker 1: Yeah, but that's that's your shoe.

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Speaker 4: I'm wearing mine right now, my weird yellow ones that

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Speaker 4: no one should really own, but I do.

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Speaker 2: I love it. Okay, Well, let's talk about let's just

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Speaker 2: kind of dive in. I want y'all to share what

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Speaker 2: it is that car edge does. I kind of briefly

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Speaker 2: touched on it, but can y'all, yeah, explain what y'all do.

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Speaker 2: And I guess specifically, why Zach, you and your dad,

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Speaker 2: why did y'all feel compelled to launch this business the service?

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Speaker 4: Yeah, I mean courage at its simplest form. The idea

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Speaker 4: is to be able to buy a car online and

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Speaker 4: have it delivered to your door. Like that's that's at

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Speaker 4: the end of the day, what we're trying to do.

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Speaker 4: And the way that I think about it, and the

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Speaker 4: way that my dad thought about it his whole career,

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Speaker 4: is that the simplest way to accomplish that is through transparency,

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Speaker 4: make the make the industry that's really opaque more transparent

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Speaker 4: or trustworthy. And so there's a there's a pretty long

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Speaker 4: kind of backstory to why I'm interested in this. It's,

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Speaker 4: you know, a not soe great relationship with my dad

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Speaker 4: grown up because he was always working what'd you call him,

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Speaker 4: dad half days bell to Bell's twelve.

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Speaker 3: Hour days, just a half a day.

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Speaker 4: You know, I didn't see my dad a lot growing up,

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Speaker 4: and there was a lot of resentment there. My mom

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Speaker 4: got sick, I dropped out of college. We all kind

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Speaker 4: of rallied around what was going on with my mom,

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Speaker 4: and after after she had passed away, my Dad and

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Speaker 4: I started to connect more often, and I realized my

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Speaker 4: dad's an awesome person, like I love I love you

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Speaker 4: Dad very much. I you know, I feel so grateful

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Speaker 4: to do what we're doing. And I kind of took

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Speaker 4: that resentment towards my dad and I actually started to

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Speaker 4: channel it towards the auto industry. You know, you've always

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Speaker 4: said to me, Dad, I want to provide for my

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Speaker 4: family all the things they don't even know they want yet,

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Speaker 4: and and so you worked your butt off to make

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Speaker 4: that happen for us, and the whole time, unfortunately, your

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Speaker 4: career was an auto which meant the half days were

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Speaker 4: a requirement to hold more gross profit, to sell cars

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Speaker 4: with more margins so that you could win more like

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Speaker 4: it just it didn't make sense to me that control.

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Speaker 4: And so about four and a half years ago, I

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Speaker 4: convinced my dad to make a YouTube video. And fast

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Speaker 4: forward to today, We've got I don't know fifty sixty

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Speaker 4: people that work with us and nationwide where we're trying

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Speaker 4: to make this the simplest, easiest, best way to buy

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Speaker 4: a car. And every single day we get to do

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Speaker 4: a YouTube show and make videos and just try and

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Speaker 4: educate and empower and change this industry, you know, one

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Speaker 4: customer at a time.

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Speaker 1: Yeah, and you guys, you're part of kind of like

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Speaker 1: a wholesale shift from more and more people. I think

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Speaker 1: like years ago, nobody would have been caught dead buying

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Speaker 1: a car online, and now it feels like, well why not? Yeah,

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Speaker 1: And the rigorm role of the dealership is I think

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Speaker 1: a big part of the reason people want a different experience,

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Speaker 1: and so I think it's I don't know if Costco

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Speaker 1: started it, but Costco's one of those things to trying

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Speaker 1: to make it easier. And then with used cars, CarMax

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Speaker 1: and Carbana have pivoted towards online car buying. I guess

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Speaker 1: consumers seem incredibly ready for online car buying. What is

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Speaker 1: wrong with the way things currently exist though in the

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Speaker 1: car buying process? How have things changed, I guess ray?

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Speaker 1: And then what are the problems that still need to

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Speaker 1: be remedied?

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Speaker 3: Well, the sad reality is that for most dealers out

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Speaker 3: there today still they think it's nineteen fifty, nineteen sixty,

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Speaker 3: nineteen seventy. They want to provide as little transparency and

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Speaker 3: information to you because they don't want you to make

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Speaker 3: an informed decision. They want you to make an emotional decision,

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Speaker 3: and to me, it seemed like that was counterintuitive because

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Speaker 3: we were oftentimes putting our customers in bad financial situations

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Speaker 3: and if we wanted them to come back as customers

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Speaker 3: in a timely fashion, well, you can't do that to

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Speaker 3: them if you'd like them to come back. So the

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Speaker 3: industry needs to change, has needed to change forever, and

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Speaker 3: we're seeing some semblance of change. More and more people

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Speaker 3: are doing things digitally, but it's still such a small

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Speaker 3: percentage of sales.

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Speaker 2: Yeah, I think a lot of companies were focused on

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Speaker 2: those short term profits and yeah, if you step back

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Speaker 2: and take a more holistic long term, like, what does

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Speaker 2: success look like over the long term? And I think

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Speaker 2: that's the void that y'all are able to fill. And

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Speaker 2: can you so I kind of alluded to the pandemic

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Speaker 2: there and the intro, but can you give us like

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Speaker 2: a peek behind the macro curtain when it comes to

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Speaker 2: the auto industry, because COVID dramatically changed the car market.

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Speaker 2: But then now it seems like things are slowly but

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Speaker 2: surely getting back to some of those pre pan norms.

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Speaker 2: Is that what y'all are seeing? All right?

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Speaker 4: Matt and Joel, I do this on our live show,

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Speaker 4: which you guys are now officially invited to. We do

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Speaker 4: all sorts of live experiments, Pops, I'm going to put

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Speaker 4: them on the spot. What do you guys think new

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Speaker 4: car inventory was at the lowest level during the pandemic,

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Speaker 4: So the total number of new cars for sale nationwide?

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Speaker 4: How low do you think that number got nationwide?

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Speaker 1: Oh, so are you allowed to give us the pre

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Speaker 1: PAN numbers?

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Speaker 4: Pre PAN numbers, we're around three to three and a

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Speaker 4: half million vehicles in inventory.

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Speaker 2: Three to three to a half I would guess easily

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Speaker 2: under a million, That's what I.

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Speaker 1: Was going to guess. Yeah, under a mill.

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Speaker 4: Then eight hundred and eighty six thousand new vehicles in

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Speaker 4: inventory in October twenty twenty one, and the latest data

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Speaker 4: we have is about two point eight to two point

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Speaker 4: nine million vehicles and inventory. So, like there's your macro

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Speaker 4: lens for new area. Like a two hundred and twenty

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Speaker 4: some odd plus percent increase in in inventory levels over

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Speaker 4: that short of a period of time has led to

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Speaker 4: a lot of volatility.

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Speaker 1: And what is that done? What is that due to pricing? Obviously?

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Speaker 1: I mean we've seen of all the automakers the Tesla

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Speaker 1: price cuts are the most dramatic, and they also seem

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Speaker 1: to be the most in the news. Are we seeing

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Speaker 1: price cuts across the board? It seems like, yeah, it's

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Speaker 1: easier obviously with more supply to maybe get the car

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Speaker 1: you want, whereas two years ago trying to get a

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Speaker 1: can you tell your ride or something like that, and

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Speaker 1: you're going to get punched in the face just for asking, Yeah,

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Speaker 1: what do things look like for the consumers? Then out there,

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Speaker 1: given the fact there's more supply.

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Speaker 4: Yeah, you know, things are getting better. Definitely getting better

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Speaker 4: as inventory increases, and there are certain brands and automakers

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Speaker 4: that are actually like kind of overflowing with inventory, and

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Speaker 4: so there are a lot of deals out there. That

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Speaker 4: being said, a really important storyline to this is that

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Speaker 4: the manufacturers now they're decreasing prices, but they spent those

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Speaker 4: two and a half years or two years increasing their

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Speaker 4: MSRPs significantly. So the average MSRP increase for different brands

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Speaker 4: ranged anywhere from about twenty percent. So that's what subru

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Speaker 4: increased their MSRP over the past five years, which is

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Speaker 4: about what inflation was all the way to brands like

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Speaker 4: Jeep that increase their MSRP by more than sixty percent

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Speaker 4: over that same period of time. So wow, and you

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Speaker 4: start to actually see some correlation between brands that increase

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Speaker 4: their MSRPs a lot and their current inventory situation. Akajeep

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Speaker 4: has a lot of inventory right now and they're marking

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Speaker 4: it down by fifteen twenty percent, and it kind of

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Speaker 4: makes you scratch your head and say, like, well, maybe

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Speaker 4: we overpriced it to begin with. Versus Subaru, for example,

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Speaker 4: that doesn't have a huge oversupply inventory and I think

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Speaker 4: inflation over that period was like twenty one or twenty

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Speaker 4: two percent, So they actually increase their prices their MSRPs

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Speaker 4: less than inflation, Like no wonder, they don't have a

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Speaker 4: huge oversupply.

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Speaker 2: So interesting.

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Speaker 4: It's a little bit of you know, you got to

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Speaker 4: pick your poison here.

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Speaker 2: Yeah, yeah, well it makes sense. I guess the folks

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Speaker 2: who the different companies that increase the most were certainly

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Speaker 2: most likely to see the biggest cuts. Right now, Ray,

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Speaker 2: let's talk about like for the most part, we're going

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Speaker 2: to talk about newer cars for folks, but used cars certainly,

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Speaker 2: Rock were huge fans of them. I think a new

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Speaker 2: car is fine if you've got the money, if you

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Speaker 2: plan to hang on to that thing for a long time.

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Speaker 2: We're a personal flanance show, after all. But what if

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Speaker 2: folks need to know though before they start looking to

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Speaker 2: buy a used car specifically? It certainly seems like it's

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Speaker 2: harder these days as well to buy privately owned used

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Speaker 2: cars as well. But I'm curious to get your thoughts there.

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Speaker 3: Well, there's a shortage of used cars. You know, during

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Speaker 3: the pandemic and the supply chain issues, there were globally

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Speaker 3: somewhere between twelve and fifteen million new cars that were

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Speaker 3: scheduled to have been produced that were not And because

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Speaker 3: those cars were never produced, that meant those cars could

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Speaker 3: never be sold, which meant there were no trade ins

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Speaker 3: at that period of time. So we find ourselves today

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Speaker 3: significantly shorthanded as far as used cars, good quality used

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Speaker 3: cars are concerned. And with that short supply, we've seen

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Speaker 3: used car prices dramatically increase. The amount of depreciation that

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Speaker 3: you would normally see has probably been cut in half

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Speaker 3: over the last three to four years, so that most

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Speaker 3: used car prices are higher than they've ever been. In

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Speaker 3: the slightly older cars, the quality is probably lower than

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Speaker 3: it's ever been, and the negotiability is probably less than

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Speaker 3: it's ever been, but other than that, the market's perfect.

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Speaker 1: So ray does that mean, given what's happened in the

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Speaker 1: used car market the prices between gently used cars and

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Speaker 1: brand new cars, has that gap shrunk? Does it actually

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Speaker 1: make more sense for someone who was, like, I think

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Speaker 1: IM going to buy a two year old car, take

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Speaker 1: some of that depreciation I've heard people talk about over

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Speaker 1: the years, Man three four years, I might get like

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Speaker 1: thirty forty percent knocked off the price because I'm buying

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Speaker 1: used instead of new. Does that still hold or is

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Speaker 1: the gap? Has a gap shrunk in a big way?

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Speaker 3: In many, many cases, the spread between a one or

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Speaker 3: two year old used car and a brand new car

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Speaker 3: has shrunken dramatically, and so that we've seen cases where

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Speaker 3: we have recommended the customers that they're better off spending

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Speaker 3: a couple thousand dollars more to get the brand new

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Speaker 3: car with the full warranty coverage. So the spread and

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Speaker 3: you'd need to have a significant spread between a pre

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Speaker 3: owned car and the brand new car. We see that

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Speaker 3: spread finally starting to come back a little bit because

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Speaker 3: we're seeing new car transaction prices dropping. So as those

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Speaker 3: transaction prices drop. We should see a correlation in the

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Speaker 3: transaction prices of used cars dropping, but they're not dropping

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Speaker 3: as rapidly as you would expect or as we would

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Speaker 3: have seen in the past.

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Speaker 2: And hopefully that's something that continues. I mean for the

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Speaker 2: folks out there who are looking to save the absolute most,

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Speaker 2: because yeah, I mean that depreciation hit. I mean, like

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Speaker 2: when you're looking at twenty plus percent within the first

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Speaker 2: five years. I mean, that's just a massive hit to

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Speaker 2: take if you're trying to buy a vehicle on the cheaps,

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Speaker 2: if you're trying to get yourself around affordably.

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Speaker 3: The truth of the matter is that prior to the pandemic,

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Speaker 3: as soon as you drove a brand new car off

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Speaker 3: the lot, you lost twenty to twenty five percent instantly,

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Speaker 3: And today that number is considerably less than that. Dealers

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Speaker 3: were actually paying what was MSRP for some of these

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Speaker 3: cars as used cars. They were paying MSRP or above

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Speaker 3: to buy them as a used car, so when they

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Speaker 3: sold them during the greatest shortage, they were selling them

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Speaker 3: for well above what MSRP on a brand new car was.

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Speaker 3: But you couldn't get a brand new car. It just

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Speaker 3: didn't exist.

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Speaker 2: Yeah, it's more of a unicorn. And then, Zach, I've

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Speaker 2: heard you say too that one of the downsides of

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Speaker 2: buying a used car is that interest.

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Speaker 1: Rates are higher for those vehicles.

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Speaker 2: And so for folks out there who are financing their

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Speaker 2: vehicle purchase, like, how big of a deal is that.

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Speaker 4: Yeah, it's a huge deal, especially for most folks. There's

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Speaker 4: three components to a car deal. It's what's the out

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Speaker 4: the door price of the vehicle that I'm purchasing, what's

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Speaker 4: the selling price of the vehicle that I'm trading in?

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Speaker 4: Most people or a lot of people have a trade in.

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Speaker 4: And then the third piece, what's the interest rate. The

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Speaker 4: average interest rate on a used car right now, and

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Speaker 4: this data comes from Cox Automotive, which is the big

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Speaker 4: kind of industry conglomerate, is almost fourteen percent on a

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Speaker 4: used car, whereas new cars are a little bit closer

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Speaker 4: to nine percent. And so you've got a nice spread there,

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Speaker 4: and that's another reason why more people are choosing new

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Speaker 4: over used. You can't really get zero percent financing on

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Speaker 4: a used car. No one's that interested in buying down

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Speaker 4: the interest rate. But think about what we were saying

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Speaker 4: with regards to Jeep. You know, there are a lot

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Speaker 4: of Jeep dealers out there and the OEM themselves who

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Speaker 4: want to move the metal, and so they'll be more

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Speaker 4: aggressive on the interest rates. And I will throw one

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Speaker 4: kind of like bid of a positive positive note on

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Speaker 4: the used car prices, which are evs have actually, like

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Speaker 4: used DV prices have fallen off a cliff. The average

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Speaker 4: transaction price for a used EV back in August September

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Speaker 4: of twenty twenty two with sixty three thousand dollars. The

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Speaker 4: average transaction price for a used EV right now is

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Speaker 4: closer to thirty three thousand dollars. So we've seen and

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Speaker 4: on the internal combustion engine side, it's gone from thirty

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Speaker 4: four thousand dollars to thirty two thousand dollars.

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Speaker 1: Okay, it's tremendous.

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Speaker 4: Appreciation for used evs, which when you also factor in

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Speaker 4: that there's a federal tax credit under twenty five thousand dollars,

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Speaker 4: like you can start to build a case for support

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Speaker 4: for There's no way I'm buying a new EV, I'll

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Speaker 4: just go buy a used one. So, like one one

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Speaker 4: little bright spot there on used cars.

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Speaker 1: I want to drill on that for just a second,

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Speaker 1: so yeah, there's the four thousand dollars tax credit when

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Speaker 1: you buy a used EV from a dealership, but you

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Speaker 1: get the seventy thirty five hundred dollars tax credit when

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Speaker 1: you buy a new EV, and prices on those have

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Speaker 1: come down too. If you're looking at some of those

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Speaker 1: cheaper models, like I don't know, Matt and I talk

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Speaker 1: about the Chevy Bolt, the Chevy Bolt EUV, the Tesla

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Speaker 1: Model three, like those are some of the bargain basement

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Speaker 1: price evs. There's like a wide gap I think between

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Speaker 1: the lower end of the market on EV's and the

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Speaker 1: high end the super fancy dancy ribbeans right that I

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Speaker 1: would love to own, but I'm sorry, I just can't,

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Speaker 1: just can't do it. So one day, Joel Surnesday Sunday.

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Speaker 1: Maybe maybe the R two or R three when it

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Speaker 1: comes out. But yeah, what are your thoughts on instead

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Speaker 1: of going for a used EV under twenty five, going

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Speaker 1: for a new electric vehicle that is kind of at

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Speaker 1: the cheaper price point.

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Speaker 4: Lease lease, That is the way to do it. The

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Speaker 4: lease incentives are incredibly aggressive right now because EV production

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Speaker 4: increased significantly, and now inventory levels for a lot of

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Speaker 4: new evs are through the roof. It might shock you

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Speaker 4: to know this, but there are still a lot of

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Speaker 4: twenty twenty three Ford Mustang Mokeys and f one to

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Speaker 4: fifty Lightnings out there, and the lease deals on those

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Speaker 4: are through the roof. And so we are seeing, especially

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Speaker 4: when you factor in the seventy five hundred dollars from

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Speaker 4: the federal government.

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Speaker 2: Huge, huge, huge.

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Speaker 4: If you're a monthly payment buyer, like a lease option

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Speaker 4: is a great option, and so we're seeing a lot

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Speaker 4: of people go that direction on new evs because they're

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Speaker 4: just being so aggressive on the residual values and the

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Speaker 4: money factors to make the payment really fit a lot

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Speaker 4: of people's budgets.

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Speaker 2: Yeah, and this is literally something we've talked about on

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Speaker 2: the show before as well. We're like leasing typically it's

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Speaker 2: been like when we've said this, it's typically a lifestyle choice, right,

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Speaker 2: the ability to have the latest and greatest tech, the

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Speaker 2: most green thing. If you actually care about the environment,

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Speaker 2: just keep driving what you have. But because of the

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Speaker 2: if you're looking at the dollars in a sense, man,

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Speaker 2: it really pays to run the numbers and see how

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Speaker 2: much you're going to say when it comes to the

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Speaker 2: cost to run essentially your EV versus your gasoline, your

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Speaker 2: fuel costs, because truly it does, it gets really close

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Speaker 2: to paying for it.

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Speaker 3: So way, we all talk about the seventy five hundred

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Speaker 3: dollars federal tax credit on new ones and four thousand

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Speaker 3: dollars federal tax credit on twenty five thousand dollars and

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Speaker 3: less expensive used ones, but what everybody forgets is you

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Speaker 3: have to make sure you actually qualify for it. It's

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Speaker 3: not just an across the board thing where everybody would qualify.

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Speaker 3: You have to fit in to certain income levels, and

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Speaker 3: so it's almost disingenuous when we all talk about those incentives,

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Speaker 3: but we never attached the disclaimer that should go along

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Speaker 3: with those disclaimers those incentives, because not everybody's going to qualify,

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Speaker 3: And if you buy one thinking you qualify and it

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Speaker 3: turns out you don't, you're going to be somewhat disappointed

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Speaker 3: on this.

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Speaker 1: Yeah, yeah, yeah, that's true. And it's also true that

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Speaker 1: more people are going to qualify for the new federal

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Speaker 1: EV tax credit buying a new EV than for the

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Speaker 1: used one, right because the income threshold is much lower

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Speaker 1: for who qualifies for the used EV tax credit exactly.

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Speaker 1: So yeah, no, that's important and maybe we'll put the

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Speaker 1: specifix for that in the show notes for this episode,

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Speaker 1: because that's true. Yeah, you don't want to just hear

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Speaker 1: us spouting off, oh, tax credit, tax credit, no matter what,

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Speaker 1: seventy five dollars off right, exactly for everybody, not necessarily

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Speaker 1: fair ones. Okay, fellas, we got a lot more to

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Speaker 1: get to, including like negotiating out the door prices, fees.

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Speaker 1: That's another thing that is sticks and people's craw, Like

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Speaker 1: what fees am I supposed to be paying? What is

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Speaker 1: this thing? Even? We'll talk about that. We'll get to

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Speaker 1: a lot of questions with Zach and Ray right after this.

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Speaker 2: All right, we are back from the break again talking

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Speaker 2: with Ray and Zach Schefska, and let's dive into negotiating,

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Speaker 2: right because this is where the most fun part, Carson,

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Speaker 2: Folks is the most fun part. I think for a

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Speaker 2: lot of folks, they probably hate it. But I think

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Speaker 2: a lot of folks feel under prepared perhaps or they

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Speaker 2: feel overwhelmed when it comes to negotiating because they don't

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Speaker 2: have the information on hand.

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Speaker 1: Part of us, because we do it what once every five, six, eight,

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Speaker 1: twelve years, and so like we don't know what we're

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Speaker 1: doing every time we go in.

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Speaker 2: Yeah, but uh, let's talk about and you mentioned this

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Speaker 2: before before the Breaksack. I think I think it was you,

437
00:21:33,520 --> 00:21:36,399
Speaker 2: maybe it was Ray. But when you are negotiating the

438
00:21:36,440 --> 00:21:38,680
Speaker 2: out the door price, like that is what you want

439
00:21:38,720 --> 00:21:42,080
Speaker 2: to get from a dealer, But like, how do you

440
00:21:42,080 --> 00:21:45,040
Speaker 2: actually get a dealer to disclose to reveal that number?

441
00:21:45,040 --> 00:21:47,440
Speaker 2: Because yeah, it's just like it seems like this sort

442
00:21:47,480 --> 00:21:51,760
Speaker 2: of holy grail sort of number. But it's not necessarily easy.

443
00:21:51,800 --> 00:21:53,400
Speaker 2: You can't just like walk and expect them to hand

444
00:21:53,400 --> 00:21:54,600
Speaker 2: that to you on a silver platter.

445
00:21:54,840 --> 00:21:57,520
Speaker 4: All right, mister dealer, dad, explain to us how do

446
00:21:57,600 --> 00:21:58,840
Speaker 4: I actually get the OTD?

447
00:21:59,480 --> 00:22:03,399
Speaker 3: You have to borrow and steal? Thank you it is.

448
00:22:05,440 --> 00:22:08,159
Speaker 3: Here's what you have to realize. Eighty four percent of

449
00:22:08,200 --> 00:22:12,520
Speaker 3: all customers finance a vehicle, So eighty four percent of

450
00:22:12,560 --> 00:22:16,520
Speaker 3: all customers are more concerned with what their monthly payment

451
00:22:16,680 --> 00:22:20,760
Speaker 3: is than what the price of the vehicle is. Dealerships

452
00:22:20,960 --> 00:22:24,280
Speaker 3: know this, and so they don't want to provide you

453
00:22:24,359 --> 00:22:27,040
Speaker 3: with the out the door number. They want to keep

454
00:22:27,080 --> 00:22:31,000
Speaker 3: talking to you about what's your comfortable monthly payment budget

455
00:22:31,320 --> 00:22:35,199
Speaker 3: that you've set for your car. So you have to

456
00:22:35,320 --> 00:22:39,120
Speaker 3: fight back as a consumer. Now, how do you do

457
00:22:39,200 --> 00:22:42,439
Speaker 3: that when when you say, gee, I'd like to get

458
00:22:42,480 --> 00:22:44,800
Speaker 3: the out the door price, and they go, but just

459
00:22:44,880 --> 00:22:47,720
Speaker 3: out of curiosity, how much were you thinking of putting down?

460
00:22:48,600 --> 00:22:51,240
Speaker 3: You know, let's not concern ourselves with how much I'm

461
00:22:51,240 --> 00:22:54,719
Speaker 3: trying to put down. I'm only concerned at this point

462
00:22:54,760 --> 00:22:57,520
Speaker 3: with what the out the door price is going to be.

463
00:22:57,880 --> 00:23:00,920
Speaker 3: But I'm sure you must have a monthly budget in mind.

464
00:23:01,600 --> 00:23:04,919
Speaker 3: I might, I might not. I haven't determined that yet.

465
00:23:04,600 --> 00:23:08,040
Speaker 3: What is going to be to the determinative factor as

466
00:23:08,080 --> 00:23:09,879
Speaker 3: to whether or not I move forward is what the

467
00:23:10,080 --> 00:23:13,960
Speaker 3: out the door price is. You have to keep insisting

468
00:23:14,119 --> 00:23:19,080
Speaker 3: upon getting that number because that's the only number that matters.

469
00:23:19,440 --> 00:23:24,119
Speaker 3: And you need to get the dealership to explain every fee,

470
00:23:24,480 --> 00:23:28,320
Speaker 3: every dollar, every cent that goes into what that out

471
00:23:28,359 --> 00:23:31,160
Speaker 3: the door price is so you can get a more

472
00:23:31,280 --> 00:23:34,399
Speaker 3: accurate breakdown as to what you're actually paying for the

473
00:23:34,520 --> 00:23:35,000
Speaker 3: damn thing.

474
00:23:35,160 --> 00:23:38,359
Speaker 1: So when we're talking monthly payments, we're talking on their terms,

475
00:23:38,400 --> 00:23:39,160
Speaker 1: not our own terms.

476
00:23:39,280 --> 00:23:40,359
Speaker 3: Oh absolutely, And they can.

477
00:23:40,320 --> 00:23:42,479
Speaker 1: Use all sorts of tricks. What kind of tricks are

478
00:23:42,480 --> 00:23:45,720
Speaker 1: they using? Ray when it comes to, you know, changing

479
00:23:45,720 --> 00:23:47,720
Speaker 1: that monthly payment to make it look a little more agreeable.

480
00:23:47,800 --> 00:23:52,080
Speaker 1: Is it lengthening the term loan, a term of the loan, Like,

481
00:23:52,119 --> 00:23:54,560
Speaker 1: what are they doing to make the monthly payment seem

482
00:23:54,560 --> 00:23:57,960
Speaker 1: more agreeable when ultimately we're getting host Okay.

483
00:23:58,359 --> 00:24:00,960
Speaker 3: The first thing they start with when they give you

484
00:24:00,960 --> 00:24:04,560
Speaker 3: your initial monthly payment is they're just using a generic

485
00:24:04,760 --> 00:24:08,480
Speaker 3: interest rate. My guest today it's probably eight, nine or

486
00:24:08,520 --> 00:24:12,960
Speaker 3: ten percent. Well, you might actually qualify for a five

487
00:24:13,080 --> 00:24:16,760
Speaker 3: or six percent interest rate. So if I quote you

488
00:24:17,119 --> 00:24:20,960
Speaker 3: a payment based on ten percent and then suddenly I

489
00:24:21,080 --> 00:24:24,119
Speaker 3: drop the rate to six percent, well, the payment's going

490
00:24:24,200 --> 00:24:26,359
Speaker 3: to go down dramatically. The price of the car hasn't

491
00:24:26,440 --> 00:24:31,080
Speaker 3: changed a dime. They would extend terms. They might be

492
00:24:31,160 --> 00:24:34,680
Speaker 3: quoting you a payment at sixty months. They might extend

493
00:24:34,680 --> 00:24:37,640
Speaker 3: at the seventy two or eighty four months. We even

494
00:24:37,680 --> 00:24:42,560
Speaker 3: see ninety six month payment plans. So that's that's some

495
00:24:42,680 --> 00:24:45,679
Speaker 3: of the tricks that dealers use. They lower interest rates

496
00:24:45,720 --> 00:24:48,600
Speaker 3: because they start with a high rate, They start with

497
00:24:48,680 --> 00:24:51,120
Speaker 3: a short term, and they just keep extending the term

498
00:24:51,600 --> 00:24:55,159
Speaker 3: to get to a payment that suddenly sounds well amenable.

499
00:24:55,359 --> 00:25:01,359
Speaker 2: Yeah, it seems reasonable. The realistic concession that probably should

500
00:25:01,359 --> 00:25:03,240
Speaker 2: have gone into coming up with that payment in the

501
00:25:03,280 --> 00:25:07,440
Speaker 2: first place. So another part of how they essentially inflate

502
00:25:07,480 --> 00:25:09,280
Speaker 2: the cost of the vehicle, though, is what you talked about.

503
00:25:09,280 --> 00:25:12,480
Speaker 2: The different fees certainly a problem, but how do you

504
00:25:12,640 --> 00:25:14,400
Speaker 2: know and how are you able to then push back

505
00:25:14,400 --> 00:25:17,000
Speaker 2: on some of these fees, some of these line items

506
00:25:17,000 --> 00:25:19,159
Speaker 2: that get tacked onto the price because I think like

507
00:25:19,200 --> 00:25:21,119
Speaker 2: some of them are I'm sure are non negotiable, but

508
00:25:21,160 --> 00:25:23,800
Speaker 2: I think others you'll talk about that you can just

509
00:25:23,920 --> 00:25:25,159
Speaker 2: flat out refuse to pay for.

510
00:25:25,320 --> 00:25:28,840
Speaker 3: Right. Well, and here's the rule of thumb. If a

511
00:25:28,920 --> 00:25:34,639
Speaker 3: fee is taxable, which means it's not a state mandated fee,

512
00:25:35,080 --> 00:25:39,760
Speaker 3: it's negotiable. The fees that aren't negotiable and aren't taxable

513
00:25:40,119 --> 00:25:43,719
Speaker 3: are your title and registration fees. They're set by the state.

514
00:25:44,160 --> 00:25:48,680
Speaker 3: So if the fee falls into the taxable category, that's

515
00:25:48,720 --> 00:25:52,640
Speaker 3: a fee that you can negotiate the price on. One

516
00:25:52,640 --> 00:25:55,960
Speaker 3: of the major areas that are a profit center for

517
00:25:56,040 --> 00:25:59,600
Speaker 3: dealerships is what's known as either the dock fee or

518
00:25:59,640 --> 00:26:05,760
Speaker 3: a processing fee. Well, there is absolutely zero cost to

519
00:26:05,880 --> 00:26:10,760
Speaker 3: the dealership associated with those fees. A dock fee in

520
00:26:10,880 --> 00:26:13,919
Speaker 3: many instances is referred to it at a dealership level

521
00:26:14,240 --> 00:26:18,399
Speaker 3: as the yacht fee. That's what pays for the dealer's yacht.

522
00:26:19,680 --> 00:26:25,320
Speaker 3: So dealers will tell you, well, everybody pays the dock fee. Okay,

523
00:26:25,400 --> 00:26:27,960
Speaker 3: I get that. Lower the price by the amount of

524
00:26:27,960 --> 00:26:31,040
Speaker 3: the dock fee. That way you can show I'm still

525
00:26:31,080 --> 00:26:33,800
Speaker 3: paying it. We've just taken it out of the selling

526
00:26:33,880 --> 00:26:37,840
Speaker 3: price to compensate for it. So those are some of

527
00:26:37,840 --> 00:26:41,119
Speaker 3: the if it's just remember if the damn thing's taxable,

528
00:26:41,480 --> 00:26:43,040
Speaker 3: it's negotiable. Ray.

529
00:26:43,040 --> 00:26:45,040
Speaker 1: I'm sure all the people that worked with Ray back

530
00:26:45,080 --> 00:26:46,159
Speaker 1: in the day love him for.

531
00:26:49,040 --> 00:26:49,080
Speaker 2: That.

532
00:26:49,200 --> 00:26:51,400
Speaker 4: And Joel, can I can I do another quick experiment

533
00:26:51,480 --> 00:26:54,200
Speaker 4: with you? Of course, I'm going to read out some

534
00:26:55,440 --> 00:26:57,480
Speaker 4: words here. You tell me if it's a real thing

535
00:26:57,520 --> 00:27:00,280
Speaker 4: that showed up on a car buying worksheet, an out

536
00:27:00,320 --> 00:27:02,280
Speaker 4: the door worksheet, or a fake thing that showed up

537
00:27:02,280 --> 00:27:04,440
Speaker 4: on an out the door worksheet. You're ready?

538
00:27:04,480 --> 00:27:06,000
Speaker 1: All right, let's do it, all.

539
00:27:05,920 --> 00:27:10,840
Speaker 4: Right, SWAT GPS three.

540
00:27:09,760 --> 00:27:10,480
Speaker 1: That sounds made up.

541
00:27:10,520 --> 00:27:12,879
Speaker 2: I'm gonna say all of these are real, otherwise you

542
00:27:12,920 --> 00:27:15,880
Speaker 2: probably wouldn't be reading them, so I'll say real, all right,

543
00:27:15,960 --> 00:27:16,600
Speaker 2: that sounds legit?

544
00:27:16,600 --> 00:27:18,359
Speaker 4: All right, you gotta guess on what the price was

545
00:27:18,480 --> 00:27:21,960
Speaker 4: for SWAT GPS three on a twenty twenty one Cadillac

546
00:27:22,119 --> 00:27:22,680
Speaker 4: XT four.

547
00:27:24,040 --> 00:27:26,200
Speaker 1: If it's a Cadillac, I'm gonna guess that's like eighteen

548
00:27:26,280 --> 00:27:26,879
Speaker 1: hundred bucks.

549
00:27:26,960 --> 00:27:30,320
Speaker 4: Yeah, if only twenty five hundred dollars. What do you

550
00:27:30,320 --> 00:27:32,040
Speaker 4: think converter shield costs?

551
00:27:32,400 --> 00:27:35,199
Speaker 1: Converter shield that sounds like it's sound like something from

552
00:27:35,200 --> 00:27:36,439
Speaker 1: a spaceship. I'm gonna say that in.

553
00:27:36,520 --> 00:27:38,879
Speaker 2: Shield coding, I don't know.

554
00:27:38,760 --> 00:27:39,960
Speaker 1: That's a good fourteen fifty.

555
00:27:40,040 --> 00:27:42,080
Speaker 4: So I'm my guess you're in luck that one's only

556
00:27:42,160 --> 00:27:43,000
Speaker 4: four ninety five.

557
00:27:43,040 --> 00:27:43,840
Speaker 2: I've got one.

558
00:27:43,680 --> 00:27:46,880
Speaker 4: More for you. What do you think about tropical advantage plan?

559
00:27:46,960 --> 00:27:49,159
Speaker 4: Does that sound real or fake? So?

560
00:27:49,160 --> 00:27:50,639
Speaker 1: I mean I get orange juice with my ride. It

561
00:27:50,680 --> 00:27:52,159
Speaker 1: sounds like the Caribbean should be involved.

562
00:27:52,200 --> 00:27:52,679
Speaker 2: If I want to.

563
00:27:52,800 --> 00:27:55,200
Speaker 4: Pay for that, well, it's a cool twenty five hundred

564
00:27:55,200 --> 00:27:56,800
Speaker 4: bucks if you want that advantage plant.

565
00:27:56,800 --> 00:27:57,480
Speaker 1: These I shared.

566
00:27:57,520 --> 00:27:59,840
Speaker 4: These These are actually like recent exposts over on my

567
00:28:00,119 --> 00:28:03,119
Speaker 4: out These are real photos from our community members. This

568
00:28:03,240 --> 00:28:05,439
Speaker 4: is the crap that goes on out there. So like,

569
00:28:05,480 --> 00:28:07,600
Speaker 4: we have a guide on fees you should and shouldn't pay,

570
00:28:07,880 --> 00:28:09,960
Speaker 4: but we're not creative enough to think through all of

571
00:28:10,000 --> 00:28:11,119
Speaker 4: the various names.

572
00:28:10,840 --> 00:28:11,639
Speaker 1: That can show up.

573
00:28:11,720 --> 00:28:14,520
Speaker 4: That's why if it's taxable, it's negotiable. Is like the

574
00:28:14,520 --> 00:28:17,920
Speaker 4: best piece of merch we've ever created, such a good

575
00:28:18,000 --> 00:28:19,080
Speaker 4: rule to live by.

576
00:28:19,600 --> 00:28:22,600
Speaker 1: Yeah, no, I appreciate that, Like, yeah, simplify. That's a

577
00:28:22,600 --> 00:28:24,840
Speaker 1: great question. Then to ask of the dealer you're trying

578
00:28:24,880 --> 00:28:27,160
Speaker 1: to do business with, and that will highlight at least

579
00:28:27,200 --> 00:28:30,320
Speaker 1: some of the areas that are open to negotiation. I'm curious,

580
00:28:30,359 --> 00:28:33,040
Speaker 1: and Zach, I'll ask you on this one. A lot

581
00:28:33,040 --> 00:28:35,360
Speaker 1: of folks will, especially you know, we talked about car

582
00:28:35,359 --> 00:28:37,639
Speaker 1: buying online. Well, who makes it a little easier to

583
00:28:37,640 --> 00:28:39,840
Speaker 1: do it from the privacy of your own home through

584
00:28:39,880 --> 00:28:43,240
Speaker 1: a few clicks? And if you're like going back and

585
00:28:43,280 --> 00:28:46,560
Speaker 1: forth with dealerships, what are your thoughts on sending emails

586
00:28:46,640 --> 00:28:49,160
Speaker 1: to a few dealers around town talking about, Hey, I'm

587
00:28:49,200 --> 00:28:51,360
Speaker 1: looking at this model, I see this on your website.

588
00:28:51,840 --> 00:28:54,520
Speaker 1: I feel like there's so much risk for people going

589
00:28:54,520 --> 00:28:57,320
Speaker 1: directly to a car dealership. But then I've also heard

590
00:28:57,440 --> 00:28:59,720
Speaker 1: heard you guys talk about how they think of you

591
00:28:59,720 --> 00:29:01,640
Speaker 1: as a more serious buyer if you're there in person.

592
00:29:01,680 --> 00:29:03,440
Speaker 1: So are people going to get a better deal by

593
00:29:03,480 --> 00:29:06,040
Speaker 1: keeping their distance or by heading directly to the lot itself?

594
00:29:06,320 --> 00:29:10,000
Speaker 4: We wholeheartedly indoors trying to get everything done before you

595
00:29:10,040 --> 00:29:12,760
Speaker 4: go in. If at the at the eleventh hour you

596
00:29:12,800 --> 00:29:14,560
Speaker 4: want to try and like my dad was talking about,

597
00:29:14,560 --> 00:29:16,240
Speaker 4: reduce the price of the car by the dock fee.

598
00:29:16,720 --> 00:29:19,000
Speaker 4: You're gonna have the most leverage when you're sitting in

599
00:29:19,000 --> 00:29:21,480
Speaker 4: that office. You're also gonna be most susceptible to the

600
00:29:21,520 --> 00:29:23,960
Speaker 4: sales tactics. So I'll do a shameless plug. We have

601
00:29:24,000 --> 00:29:27,000
Speaker 4: free email templates. My dad writes them. He wrote them

602
00:29:27,040 --> 00:29:29,400
Speaker 4: and then he updates them every once in a while.

603
00:29:29,480 --> 00:29:32,040
Speaker 4: And you just got to Google search car edge email

604
00:29:32,080 --> 00:29:34,400
Speaker 4: templates and they pop up, and like like you said,

605
00:29:34,480 --> 00:29:37,200
Speaker 4: shoot out, shoot that out to a half dozen dealerships

606
00:29:37,200 --> 00:29:40,160
Speaker 4: that have a vehicle that you're interested in, and see

607
00:29:40,160 --> 00:29:42,480
Speaker 4: who bites he, who actually is transparent, who gives you

608
00:29:42,520 --> 00:29:46,480
Speaker 4: the information you know, to be clear, Like, the more

609
00:29:46,520 --> 00:29:48,400
Speaker 4: dealers that do that, the better. Then you have some

610
00:29:48,480 --> 00:29:53,080
Speaker 4: optionality you can negotiate against them. And really you can

611
00:29:53,160 --> 00:29:55,400
Speaker 4: get a car deal done entirely from home. There are

612
00:29:55,400 --> 00:29:57,840
Speaker 4: some states where you still need wet signatures on things,

613
00:29:57,880 --> 00:30:00,000
Speaker 4: so you know, the dealership might have to overnight pay

614
00:30:00,240 --> 00:30:02,720
Speaker 4: work to you. But yeah, you can get this all

615
00:30:02,720 --> 00:30:05,480
Speaker 4: done from home. It's just the unfortunate reality is it's

616
00:30:05,520 --> 00:30:08,280
Speaker 4: like a lot of work. But the tools are out there.

617
00:30:08,320 --> 00:30:10,400
Speaker 4: We're trying to make them more available. And at the

618
00:30:10,440 --> 00:30:12,880
Speaker 4: end of the day, if you value your time and

619
00:30:13,440 --> 00:30:16,320
Speaker 4: time's money, like you'll you'll dig in, you'll do it,

620
00:30:16,880 --> 00:30:19,440
Speaker 4: or or you'll you know, like, obviously that's our business.

621
00:30:19,560 --> 00:30:22,200
Speaker 4: But like you, hopefully you find a good dealer you

622
00:30:22,240 --> 00:30:23,000
Speaker 4: don't even need us.

623
00:30:23,040 --> 00:30:26,080
Speaker 2: Sure, yeah, okay, So shopping around to different dealerships, certainly

624
00:30:26,120 --> 00:30:28,760
Speaker 2: that's a way to find the best terms, find the

625
00:30:28,800 --> 00:30:30,920
Speaker 2: best deals. What about I guess being flexible when it

626
00:30:30,920 --> 00:30:33,000
Speaker 2: comes to the different models that you're considering, because I'm

627
00:30:33,040 --> 00:30:36,320
Speaker 2: assuming the more flexible you are gives you the ability

628
00:30:36,400 --> 00:30:37,720
Speaker 2: to find the best deal.

629
00:30:37,920 --> 00:30:38,600
Speaker 1: Is that right, Dad?

630
00:30:38,600 --> 00:30:40,960
Speaker 4: Maybe you could even talk about like how old a

631
00:30:41,040 --> 00:30:43,880
Speaker 4: vehicle is, right, Like you used to incentivize your salespeople

632
00:30:43,920 --> 00:30:46,520
Speaker 4: to sell older versions of vehicles because you just wanted

633
00:30:46,560 --> 00:30:48,600
Speaker 4: to get rid of it. I think that it makes

634
00:30:48,600 --> 00:30:50,120
Speaker 4: a lot of sense, even if it's maybe not the

635
00:30:50,160 --> 00:30:51,320
Speaker 4: color you want, for example.

636
00:30:51,640 --> 00:30:54,080
Speaker 3: And that's what I was going to say. There has

637
00:30:54,160 --> 00:30:58,040
Speaker 3: to be a certain level of flexibility on the customer's part.

638
00:30:58,160 --> 00:31:01,920
Speaker 3: If you are just stuck a particular model with a

639
00:31:01,960 --> 00:31:05,959
Speaker 3: particular trim, with a has to be white, with the

640
00:31:06,240 --> 00:31:11,280
Speaker 3: with the red leather interior. Well, you're limiting your ability

641
00:31:11,320 --> 00:31:13,920
Speaker 3: to be able to find a good deal if you

642
00:31:14,040 --> 00:31:17,920
Speaker 3: are interested in a particular vehicle, but you're open to

643
00:31:18,040 --> 00:31:21,479
Speaker 3: color and maybe open to trim. The first thing I

644
00:31:21,520 --> 00:31:24,560
Speaker 3: would do as a customer is when I got to

645
00:31:24,600 --> 00:31:28,320
Speaker 3: the dealership is I would say to the salesperson, I'm

646
00:31:28,360 --> 00:31:34,160
Speaker 3: interested in X in this color. What's the oldest one

647
00:31:34,200 --> 00:31:38,959
Speaker 3: of these that you have in inventory? And the reason

648
00:31:39,040 --> 00:31:42,080
Speaker 3: you want to ask for the oldest one is because

649
00:31:42,480 --> 00:31:45,400
Speaker 3: that's the vehicle that the new car manager is most

650
00:31:45,680 --> 00:31:50,120
Speaker 3: motivated to get off of his lot, because the carrying

651
00:31:50,200 --> 00:31:54,280
Speaker 3: costs of having that vehicle sit there keeps going up

652
00:31:54,360 --> 00:31:58,880
Speaker 3: and up and up, and so managers will do whatever

653
00:31:58,960 --> 00:32:02,880
Speaker 3: they can in order to get rid of an old,

654
00:32:03,080 --> 00:32:09,760
Speaker 3: aged vehicle. So if you want an accurate MDX and

655
00:32:09,800 --> 00:32:12,600
Speaker 3: you want a white one, well ask for the oldest

656
00:32:12,680 --> 00:32:16,520
Speaker 3: white one, not the freshest white one. And by doing

657
00:32:16,560 --> 00:32:19,480
Speaker 3: that you could you can oftentimes save quite a bit

658
00:32:19,520 --> 00:32:19,920
Speaker 3: of money.

659
00:32:20,200 --> 00:32:22,320
Speaker 1: Yeah, being more flexible. By the way, it sounds like

660
00:32:22,360 --> 00:32:24,120
Speaker 1: that makes sense. It makes sense in everything, And we

661
00:32:24,640 --> 00:32:26,800
Speaker 1: talk about buying a flight. I've had people come up

662
00:32:26,840 --> 00:32:27,800
Speaker 1: to me they're like, I want to go to the

663
00:32:27,880 --> 00:32:31,360
Speaker 1: Netherlands August twenty thirty thirtieth, and oh, by the way,

664
00:32:31,840 --> 00:32:32,960
Speaker 1: I want to leave in the morning, and I want

665
00:32:32,960 --> 00:32:34,960
Speaker 1: to fly on Delta, and how can I save money?

666
00:32:34,960 --> 00:32:37,040
Speaker 1: And the answer is like, you just like kind of

667
00:32:37,040 --> 00:32:39,480
Speaker 1: made it really difficult to save yourself any money because

668
00:32:39,760 --> 00:32:42,600
Speaker 1: you've got really specific parameters that you don't want to

669
00:32:42,640 --> 00:32:45,000
Speaker 1: budge on. And I think that the same has has

670
00:32:45,040 --> 00:32:47,040
Speaker 1: to be true when we're talking about buying cars. It's

671
00:32:47,080 --> 00:32:49,840
Speaker 1: like and maybe guess what if you're looking for you

672
00:32:49,880 --> 00:32:51,840
Speaker 1: want a Toyota or something like that, and you're like, well,

673
00:32:51,840 --> 00:32:53,720
Speaker 1: I'd be okay with the RAF four prime, which I

674
00:32:53,760 --> 00:32:55,800
Speaker 1: know you guys say is like impossible to find, but

675
00:32:55,840 --> 00:32:58,160
Speaker 1: I you know what, I could be over to the

676
00:32:58,200 --> 00:33:01,160
Speaker 1: Sequoia or the Forerunner as well, and just having more

677
00:33:01,200 --> 00:33:03,960
Speaker 1: optionality is going to is gonna like, I don't give

678
00:33:04,040 --> 00:33:06,680
Speaker 1: the more wiggle room for the whole deal that happened

679
00:33:06,920 --> 00:33:09,400
Speaker 1: and for you to get a price that you're like

680
00:33:09,840 --> 00:33:12,800
Speaker 1: excited by and not just getting the last thing the

681
00:33:12,800 --> 00:33:15,440
Speaker 1: dealer has or something like that and taking what they

682
00:33:15,480 --> 00:33:15,760
Speaker 1: give you.

683
00:33:16,400 --> 00:33:20,560
Speaker 3: A perfect example of that of me actually living by

684
00:33:20,600 --> 00:33:24,360
Speaker 3: what I described for people to do is at one

685
00:33:24,400 --> 00:33:29,680
Speaker 3: time I had a Mini Clubman that was in British

686
00:33:29,760 --> 00:33:34,640
Speaker 3: racing green with a white top. I hated that color,

687
00:33:35,920 --> 00:33:39,560
Speaker 3: but it was the only one that was available when

688
00:33:39,680 --> 00:33:43,160
Speaker 3: I wanted to get a car, and I thought to myself, well,

689
00:33:43,240 --> 00:33:46,000
Speaker 3: if I always asked the customers to settle for a

690
00:33:46,000 --> 00:33:49,680
Speaker 3: different color, how can I not? And I drove that

691
00:33:49,800 --> 00:33:52,600
Speaker 3: car for three years. Hated it every time I got

692
00:33:52,600 --> 00:33:56,800
Speaker 3: in it because I hated the color, but you know,

693
00:33:57,040 --> 00:34:02,040
Speaker 3: that offered me the best deal. So sometimes you have

694
00:34:02,120 --> 00:34:05,880
Speaker 3: to put color aside or trim aside, and you know,

695
00:34:06,120 --> 00:34:09,080
Speaker 3: just just live with it for whatever period of time

696
00:34:09,120 --> 00:34:10,160
Speaker 3: you're going to live with it for.

697
00:34:10,280 --> 00:34:12,279
Speaker 2: It makes me think about when I asked my wife, Hey,

698
00:34:12,320 --> 00:34:15,120
Speaker 2: what's the oldest leftover we have in the fridge? As

699
00:34:15,120 --> 00:34:18,760
Speaker 2: I'm looking at it takes the work for lunch, because

700
00:34:18,800 --> 00:34:21,960
Speaker 2: that's gonna be the like it's true story. Oh yeah,

701
00:34:21,960 --> 00:34:23,880
Speaker 2: I do this like literally every morning, I'm I'm scout,

702
00:34:23,920 --> 00:34:26,160
Speaker 2: I'm looking at the very back of the shelves. And

703
00:34:26,200 --> 00:34:29,520
Speaker 2: so maybe that's how we should approach my vehicles. Which

704
00:34:29,520 --> 00:34:31,319
Speaker 2: one has been sitting here the longest since getting ready

705
00:34:31,360 --> 00:34:35,480
Speaker 2: to go back. You looks a little moldy, but it anyway, Zach.

706
00:34:35,520 --> 00:34:37,640
Speaker 2: So you were saying you kind of mentioned the three

707
00:34:37,680 --> 00:34:40,600
Speaker 2: factors that that play the biggest role into the price

708
00:34:40,640 --> 00:34:43,800
Speaker 2: of the vehicle, and you were talking about the trade in.

709
00:34:45,160 --> 00:34:48,920
Speaker 2: On one hand, you've got the ability to sell it privately,

710
00:34:49,200 --> 00:34:52,080
Speaker 2: right like you can maybe go individually yourself to like

711
00:34:52,120 --> 00:34:54,160
Speaker 2: carv on A to CarMax.

712
00:34:53,880 --> 00:34:56,840
Speaker 1: But that's on Facebook. Yeah yeah, or yeah, selling it yourself.

713
00:34:57,200 --> 00:34:59,040
Speaker 2: But what I mean talk to us about the trade

714
00:34:59,080 --> 00:35:01,960
Speaker 2: and value, how that gives you maybe a little bit

715
00:35:02,000 --> 00:35:04,680
Speaker 2: more leverage when you're when it comes to negotiating. I'd

716
00:35:04,719 --> 00:35:06,120
Speaker 2: like to hear your thoughts there.

717
00:35:06,200 --> 00:35:10,319
Speaker 4: Yeah, we really really really strongly encourage people to think

718
00:35:10,360 --> 00:35:12,239
Speaker 4: about buying a car with a trade and as two

719
00:35:12,239 --> 00:35:15,319
Speaker 4: separate transactions. So like we were talking about before, do

720
00:35:15,440 --> 00:35:18,359
Speaker 4: the homework on OTD or out the door price, that's

721
00:35:18,360 --> 00:35:20,560
Speaker 4: what you're going to negotiate. That's the selling price of

722
00:35:20,600 --> 00:35:22,320
Speaker 4: the car that you're buying from the dealership.

723
00:35:22,400 --> 00:35:22,759
Speaker 2: Got it.

724
00:35:23,320 --> 00:35:26,240
Speaker 4: The second negotiation is on the vehicle that you're selling

725
00:35:26,280 --> 00:35:29,560
Speaker 4: them or you're giving them the opportunity to buy. And

726
00:35:29,600 --> 00:35:32,160
Speaker 4: so similarly to how we were discussing that you should

727
00:35:32,239 --> 00:35:35,160
Speaker 4: email various dealerships to get out the door price quotes.

728
00:35:35,400 --> 00:35:37,120
Speaker 4: You should do the same exact thing with the vehicle

729
00:35:37,200 --> 00:35:40,799
Speaker 4: you intend to sell, get various instant cash offers and

730
00:35:41,320 --> 00:35:43,839
Speaker 4: offers from people through peer to peer platforms as well,

731
00:35:44,160 --> 00:35:46,279
Speaker 4: and make the decision of who you want to go with.

732
00:35:46,680 --> 00:35:50,000
Speaker 4: Now one thinks, excuse me, one piece of this that

733
00:35:50,320 --> 00:35:53,120
Speaker 4: gets more complex, which it's the car business, so it

734
00:35:53,160 --> 00:35:57,160
Speaker 4: has to get more complex, is the sales tax basis benefit.

735
00:35:57,360 --> 00:35:59,680
Speaker 4: That's the simplest way I've been able to sum up

736
00:35:59,719 --> 00:36:03,080
Speaker 4: what this, which is, in most states, when you trade

737
00:36:03,120 --> 00:36:06,000
Speaker 4: in a vehicle, you will actually get a sales tax

738
00:36:06,120 --> 00:36:09,880
Speaker 4: basis benefit. So an easy example of this would be,

739
00:36:09,880 --> 00:36:12,960
Speaker 4: if you have a ten thousand dollars car that you're

740
00:36:13,000 --> 00:36:16,520
Speaker 4: trading in, you're going to reduce the basis for your

741
00:36:16,560 --> 00:36:19,960
Speaker 4: upcoming sales tax buy that trade in value. So instead,

742
00:36:20,000 --> 00:36:21,640
Speaker 4: let's say you're buying a twenty thousand dollars car and

743
00:36:21,640 --> 00:36:23,879
Speaker 4: you're trading in a ten thousand dollar car, your sales

744
00:36:23,960 --> 00:36:26,640
Speaker 4: tax basis would have been twenty thousand dollars if you

745
00:36:26,640 --> 00:36:29,000
Speaker 4: didn't have the trade in. But now because you're trading

746
00:36:29,040 --> 00:36:31,759
Speaker 4: in a vehicle, your sales tax basis will be ten

747
00:36:31,760 --> 00:36:34,280
Speaker 4: thousand dollars because you're trading in a ten thousand dollar car.

748
00:36:34,840 --> 00:36:37,520
Speaker 4: In most states that happens, there is a select few

749
00:36:37,560 --> 00:36:39,680
Speaker 4: about seven states where you do not get a sales

750
00:36:39,719 --> 00:36:42,479
Speaker 4: tax basis benefit. So you'll end up with situations, guys,

751
00:36:42,520 --> 00:36:45,400
Speaker 4: where you'll have done all this work, you'll get cash offers,

752
00:36:45,400 --> 00:36:47,640
Speaker 4: you'll go peer to peer, you'll have all the different

753
00:36:47,680 --> 00:36:49,560
Speaker 4: offers on the table, and then you'll go to the

754
00:36:49,600 --> 00:36:51,520
Speaker 4: dealership and they'll low ball all of them. And it

755
00:36:51,600 --> 00:36:53,719
Speaker 4: still makes sense to take the dealer's offer because you're

756
00:36:53,719 --> 00:36:57,560
Speaker 4: getting the sales tax basis benefit and you're actually saving money. So,

757
00:36:58,200 --> 00:36:59,800
Speaker 4: like I said, it's the car business. It has to

758
00:36:59,840 --> 00:37:03,120
Speaker 4: be more complex for you know, whatever reason, but you

759
00:37:03,160 --> 00:37:06,000
Speaker 4: should totally think of them as two separate transactions and

760
00:37:06,280 --> 00:37:08,560
Speaker 4: just like you know, negotiating that with the door price

761
00:37:08,760 --> 00:37:11,680
Speaker 4: on the trade in or the sales side selling your car, Like,

762
00:37:11,719 --> 00:37:14,120
Speaker 4: there's some homework to do there too to maximize you know,

763
00:37:14,160 --> 00:37:15,920
Speaker 4: the savings in your wallet.

764
00:37:16,440 --> 00:37:18,560
Speaker 1: Yeah, I know there's something to be said for simplicity too,

765
00:37:18,640 --> 00:37:20,919
Speaker 1: like if you get the additional tax break, being able

766
00:37:20,920 --> 00:37:23,000
Speaker 1: to do it all at once, as opposed to trying to,

767
00:37:23,480 --> 00:37:25,480
Speaker 1: you know, have people come to your house to test

768
00:37:25,560 --> 00:37:29,120
Speaker 1: drive your twenty fourteen Nissan Ultima or something like that,

769
00:37:29,200 --> 00:37:31,880
Speaker 1: which could take a Saturday if you're lucky, it might

770
00:37:31,880 --> 00:37:34,839
Speaker 1: take longer. That makes sense. I yeah, you're right, though

771
00:37:34,840 --> 00:37:36,319
Speaker 1: I didn't realize that it was only in some states

772
00:37:36,360 --> 00:37:38,080
Speaker 1: until recently. I was talking to a friend in California

773
00:37:38,080 --> 00:37:39,360
Speaker 1: and I was like, well, ask if you trade in

774
00:37:39,400 --> 00:37:41,720
Speaker 1: your car, do you get the same tax break? And

775
00:37:41,800 --> 00:37:45,040
Speaker 1: in California that does not exist. So you have to, yeah,

776
00:37:45,160 --> 00:37:47,480
Speaker 1: check with your state and see what the laws, what

777
00:37:47,520 --> 00:37:50,319
Speaker 1: the rules are there. Ray, I've heard you say that

778
00:37:50,440 --> 00:37:52,600
Speaker 1: you can never get what you don't ask for, So

779
00:37:52,880 --> 00:37:55,560
Speaker 1: how shameless should you get when you're asking for things.

780
00:37:55,719 --> 00:37:58,040
Speaker 1: We talk about the price of the car. That's one

781
00:37:58,040 --> 00:37:59,759
Speaker 1: thing you can negotiate. That's one thing you can got

782
00:37:59,760 --> 00:38:01,360
Speaker 1: to push back on. You can push back on the fees.

783
00:38:01,520 --> 00:38:03,880
Speaker 1: But what kind of additional perks can you ask for

784
00:38:04,080 --> 00:38:05,920
Speaker 1: beyond just negotiating for the price of the vehicle.

785
00:38:05,920 --> 00:38:10,080
Speaker 3: You can ask for anything. You know, people used to

786
00:38:10,080 --> 00:38:14,680
Speaker 3: ask for for key change hats, shirts, whatever, luggage. They

787
00:38:14,680 --> 00:38:19,479
Speaker 3: didn't everybody wants something, okay, The people want to win

788
00:38:20,200 --> 00:38:23,759
Speaker 3: and so you can ask for anything. You can ask

789
00:38:23,920 --> 00:38:28,680
Speaker 3: for oil changes, you could ask. I mean sometimes I

790
00:38:28,680 --> 00:38:31,319
Speaker 3: would offer customers, I said, well, how about in a

791
00:38:31,480 --> 00:38:34,520
Speaker 3: year when you come back in a year, we give

792
00:38:34,560 --> 00:38:37,680
Speaker 3: you a free detail on your car, Just like we

793
00:38:37,719 --> 00:38:41,000
Speaker 3: would clean a car used car for the for the

794
00:38:41,080 --> 00:38:44,000
Speaker 3: lot for sale, We'll do the same for your car

795
00:38:44,080 --> 00:38:47,319
Speaker 3: a year from now. You know, so you can It

796
00:38:47,440 --> 00:38:51,439
Speaker 3: never hurts to ask. And yes, absolutely you can't get

797
00:38:51,440 --> 00:38:55,920
Speaker 3: what you don't ask for. But don't ask for things

798
00:38:55,920 --> 00:38:59,239
Speaker 3: that are so ridiculous that that a dealer is going

799
00:38:59,320 --> 00:39:02,000
Speaker 3: to just at you and throw you out. That doesn't

800
00:39:02,000 --> 00:39:02,759
Speaker 3: do you any good.

801
00:39:03,239 --> 00:39:06,399
Speaker 2: What about some of the different extended warranties they offer,

802
00:39:06,520 --> 00:39:09,600
Speaker 2: or like some of the protection plans? A can you

803
00:39:09,640 --> 00:39:12,640
Speaker 2: ask for those when you're negotiating? And B is it

804
00:39:12,680 --> 00:39:16,320
Speaker 2: worth negotiating for? Because are they actually worth what? I

805
00:39:16,320 --> 00:39:17,960
Speaker 2: feel like it's one of these things that they kind

806
00:39:17,960 --> 00:39:19,399
Speaker 2: of build up to be this big thing, but then

807
00:39:19,400 --> 00:39:21,200
Speaker 2: sometimes it's kind of like, oh, yeah, it's a.

808
00:39:21,280 --> 00:39:23,520
Speaker 1: Maybe your four thousand dollars would have been better off

809
00:39:23,520 --> 00:39:24,080
Speaker 1: in your sami.

810
00:39:23,920 --> 00:39:26,279
Speaker 2: Again, maybe that tropical or whatever at all, It was

811
00:39:26,360 --> 00:39:28,480
Speaker 2: just like us, you know, spraying the undercarriage with like

812
00:39:28,600 --> 00:39:30,640
Speaker 2: WT forty or something like that. So yeah, A, can

813
00:39:30,680 --> 00:39:32,560
Speaker 2: you negotiate with them? And B is it even worth it?

814
00:39:33,000 --> 00:39:37,239
Speaker 3: You can negotiate on any of those products. Can you

815
00:39:37,320 --> 00:39:40,640
Speaker 3: ask for them to be thrown in? Certainly you can ask.

816
00:39:40,960 --> 00:39:43,480
Speaker 3: But the bigger things that you ask for, like an

817
00:39:43,480 --> 00:39:49,400
Speaker 3: extended warranty that has a greater cost than some other things,

818
00:39:49,600 --> 00:39:53,520
Speaker 3: there's only there's only so much extra cost that a

819
00:39:53,600 --> 00:39:57,600
Speaker 3: dealer is willing to absorb after they've agreed to discount

820
00:39:57,600 --> 00:40:00,600
Speaker 3: a vehicle to get to the original out the or price.

821
00:40:00,800 --> 00:40:04,480
Speaker 3: There's only so much room a dealer has. So that

822
00:40:05,239 --> 00:40:07,880
Speaker 3: if the dealer is asking four thousand dollars for the

823
00:40:07,960 --> 00:40:12,160
Speaker 3: extended warranty, if you see, well, okay, I'll take it

824
00:40:12,200 --> 00:40:16,040
Speaker 3: if you give it to me. You know, the salesperson

825
00:40:16,120 --> 00:40:17,840
Speaker 3: might look at you. There's a lot of things I

826
00:40:17,920 --> 00:40:19,320
Speaker 3: might give to you, but it ain't going to be

827
00:40:19,400 --> 00:40:24,640
Speaker 3: that warrant. Yeah, you just have to be reasonable. You

828
00:40:24,719 --> 00:40:27,840
Speaker 3: might say I would take it if it was fifteen

829
00:40:27,920 --> 00:40:32,880
Speaker 3: hundred dollars, and so you negotiate, But to make a

830
00:40:32,960 --> 00:40:35,919
Speaker 3: blanket statement for certain things where you say, well, I'll

831
00:40:35,920 --> 00:40:37,640
Speaker 3: only take it if you give it to me. Well,

832
00:40:37,880 --> 00:40:39,800
Speaker 3: you're not going to be taking in most cases.

833
00:40:39,880 --> 00:40:42,760
Speaker 1: Ray, what's your take on extended warranties in general, because,

834
00:40:42,800 --> 00:40:45,440
Speaker 1: like we're alluding to, I mean, they can be incredibly expensive,

835
00:40:45,640 --> 00:40:50,200
Speaker 1: and there's a warranty, manufacturer's warranty that comes with the car.

836
00:40:50,640 --> 00:40:52,439
Speaker 1: I know a lot of people feel like there's peace

837
00:40:52,440 --> 00:40:55,440
Speaker 1: of mind, there's protection. I don't have to worry about

838
00:40:55,440 --> 00:40:57,640
Speaker 1: maybe the worst things going wrong with my vehicle if

839
00:40:57,640 --> 00:41:01,160
Speaker 1: I have this extended warranty. But most of the time

840
00:41:01,280 --> 00:41:03,600
Speaker 1: do they pay off for people? It's just like buying

841
00:41:03,600 --> 00:41:06,120
Speaker 1: a laptop, a seven hundred dollars laptop and paying one

842
00:41:06,160 --> 00:41:08,359
Speaker 1: hundred and eighty dollars for an extended warranty for that,

843
00:41:08,440 --> 00:41:10,640
Speaker 1: and guess what, most of the times those laptops s

844
00:41:10,680 --> 00:41:12,680
Speaker 1: end up doing pretty well, and you'd be better off

845
00:41:12,719 --> 00:41:14,120
Speaker 1: keeping that money in your pocket. Is it the same

846
00:41:14,120 --> 00:41:14,600
Speaker 1: with cars?

847
00:41:15,239 --> 00:41:18,280
Speaker 3: You know you're asking a former car guide that question,

848
00:41:19,320 --> 00:41:22,400
Speaker 3: and I'll give you the former car guy answer, Okay,

849
00:41:22,440 --> 00:41:24,680
Speaker 3: And the answer is, as I used to put it

850
00:41:24,719 --> 00:41:28,600
Speaker 3: to customers, it's like having health insurance for your car,

851
00:41:29,120 --> 00:41:32,400
Speaker 3: just like you have your own personal health insurance. You

852
00:41:32,520 --> 00:41:36,480
Speaker 3: pray to God you never need it. Okay, But if

853
00:41:36,480 --> 00:41:39,480
Speaker 3: you do, you're covered. And that's the same thing with

854
00:41:39,640 --> 00:41:43,760
Speaker 3: an extended warranty for a vehicle. You're hoping you never

855
00:41:43,880 --> 00:41:49,520
Speaker 3: need it, and most people never use it. That's why

856
00:41:49,719 --> 00:41:55,160
Speaker 3: extended warranty companies are so profitable. But there are a

857
00:41:55,239 --> 00:42:00,680
Speaker 3: percentage of vehicles that there are failures and the extended

858
00:42:00,719 --> 00:42:05,520
Speaker 3: warranty covers it. We actually the shameless plug, but we

859
00:42:05,640 --> 00:42:09,799
Speaker 3: actually sell extended warrants as your vehicle service contracts. It's

860
00:42:09,840 --> 00:42:13,240
Speaker 3: just we're a lot more transparent as to the markup

861
00:42:13,320 --> 00:42:16,480
Speaker 3: on those products than say a dealership.

862
00:42:16,000 --> 00:42:18,680
Speaker 2: Would be very nice. All right, we've got a few

863
00:42:18,680 --> 00:42:20,960
Speaker 2: more questions to get to with you guys. We're gonna

864
00:42:21,360 --> 00:42:24,440
Speaker 2: just some additional factors to consider when you are looking

865
00:42:24,480 --> 00:42:25,160
Speaker 2: to buy a new car.

866
00:42:25,160 --> 00:42:34,719
Speaker 1: We'll get to those right after this HI or we're

867
00:42:34,719 --> 00:42:36,600
Speaker 1: back from the break. We're still talking about car buying,

868
00:42:36,719 --> 00:42:39,200
Speaker 1: but with an edge. We're talking about that with Ray

869
00:42:39,320 --> 00:42:43,040
Speaker 1: and Zach Shefska, the father son duo who started car

870
00:42:43,160 --> 00:42:46,439
Speaker 1: edge dot com. And all right, bunch of last minute

871
00:42:46,520 --> 00:42:47,960
Speaker 1: questions we got to ask you guys before we get

872
00:42:48,000 --> 00:42:50,759
Speaker 1: out of here. Timing the timing of buying car. This

873
00:42:50,800 --> 00:42:52,719
Speaker 1: is something I think people probably have a lot of

874
00:42:52,840 --> 00:42:54,960
Speaker 1: misinformation in their heads about when the best time to

875
00:42:54,960 --> 00:42:57,920
Speaker 1: buy a car is. Sometimes we say, like the end

876
00:42:57,920 --> 00:42:59,520
Speaker 1: of the month, Yeah, that's the best time to buy.

877
00:42:59,680 --> 00:43:02,720
Speaker 1: How true is that advice? And if you can afford

878
00:43:02,800 --> 00:43:05,799
Speaker 1: to wait and time things perfectly, when is the ideal

879
00:43:05,920 --> 00:43:08,279
Speaker 1: time to score the absolute best deal. Let's say, Zach,

880
00:43:08,320 --> 00:43:10,360
Speaker 1: you're you're in the market for a car, but you're like,

881
00:43:10,880 --> 00:43:13,319
Speaker 1: it's summer. I don't care if I buy it in

882
00:43:13,320 --> 00:43:14,880
Speaker 1: the fall, if I buy it in the winter, Like,

883
00:43:15,680 --> 00:43:19,160
Speaker 1: timing is of little importance to me. When's the best

884
00:43:19,160 --> 00:43:20,520
Speaker 1: time for them to look to close that deal?

885
00:43:21,160 --> 00:43:23,560
Speaker 4: All right, let's do it. Let's break up new and

886
00:43:23,719 --> 00:43:28,200
Speaker 4: used cars because seasonality impacts them differently used cars. By

887
00:43:28,239 --> 00:43:29,880
Speaker 4: the time you're listening to this, if it's over the

888
00:43:29,920 --> 00:43:32,359
Speaker 4: summer in twenty twenty four, now's a good time. There

889
00:43:32,400 --> 00:43:34,239
Speaker 4: is one bad time of year to be in the

890
00:43:34,239 --> 00:43:36,520
Speaker 4: market to buy a used car, and that's around the

891
00:43:36,560 --> 00:43:40,160
Speaker 4: spring selling season. So that's when tax refund money starts

892
00:43:40,160 --> 00:43:43,160
Speaker 4: to get back into consumer's hands. There is It happens

893
00:43:43,200 --> 00:43:46,480
Speaker 4: every year. There's seasonality in the wholesale and retail used

894
00:43:46,480 --> 00:43:49,719
Speaker 4: car business. You just see a small spike in used

895
00:43:49,760 --> 00:43:51,960
Speaker 4: car prices, which if you time it up nicely, it

896
00:43:51,960 --> 00:43:54,400
Speaker 4: means you can sell your car for a lot and

897
00:43:54,400 --> 00:43:56,120
Speaker 4: then wait a couple months and then buy a new

898
00:43:56,200 --> 00:43:59,319
Speaker 4: used car new to you used car in the summer months,

899
00:43:59,360 --> 00:44:00,600
Speaker 4: but interesting used cars.

900
00:44:00,600 --> 00:44:01,279
Speaker 1: It's pretty good.

901
00:44:01,200 --> 00:44:03,640
Speaker 2: Walking buke everywhere for a little while. Hey, y'all, don't listen.

902
00:44:03,760 --> 00:44:05,640
Speaker 2: Y'all are like hardcore listeners to how to money. But

903
00:44:05,719 --> 00:44:07,920
Speaker 2: that's that's what Joel and I do. Like you're real like.

904
00:44:08,239 --> 00:44:10,719
Speaker 4: That, you're preaching to the choir. I might be, you know,

905
00:44:10,800 --> 00:44:13,080
Speaker 4: running a car company, but I don't have a car.

906
00:44:13,160 --> 00:44:14,160
Speaker 4: So yeah, I'm right there with you.

907
00:44:15,280 --> 00:44:16,920
Speaker 2: That's why you have twenty six pairs of focus.

908
00:44:17,000 --> 00:44:17,840
Speaker 1: Exactly hit it.

909
00:44:17,880 --> 00:44:21,200
Speaker 4: I get it exactly exactly. So that's the used car

910
00:44:21,239 --> 00:44:24,319
Speaker 4: side new car. It's there's intra month, intra quarter, and

911
00:44:24,640 --> 00:44:27,640
Speaker 4: intra calendar year seasonality. End of month makes a ton

912
00:44:27,640 --> 00:44:30,719
Speaker 4: of sense. If you can go and negotiate earlier in

913
00:44:30,719 --> 00:44:32,839
Speaker 4: the month and just know that you're totally fine waiting

914
00:44:32,920 --> 00:44:34,120
Speaker 4: till the end of the month, you'll have a little

915
00:44:34,120 --> 00:44:37,720
Speaker 4: more leverage because manufacturer incentive to the dealer is typically

916
00:44:37,800 --> 00:44:40,640
Speaker 4: tied to month performance, and then in house dealer incentives

917
00:44:40,640 --> 00:44:43,319
Speaker 4: are tied to month performance. So there's a human kind

918
00:44:43,320 --> 00:44:45,480
Speaker 4: of psychological aspect of this, which is like, we're really

919
00:44:45,480 --> 00:44:47,400
Speaker 4: close to hitting our number and our goal, which is

920
00:44:47,400 --> 00:44:50,560
Speaker 4: going to unlock some sort of economic incentive. Great, that

921
00:44:50,600 --> 00:44:52,600
Speaker 4: happens at the end of the month, same thing goes

922
00:44:52,680 --> 00:44:55,120
Speaker 4: just a little bit heightened, a little bit heightened, excuse me,

923
00:44:55,120 --> 00:44:57,520
Speaker 4: at the end of the quarter, and then without fail,

924
00:44:57,680 --> 00:45:02,040
Speaker 4: every single year, the fourth quarter December, between Christmas and

925
00:45:02,080 --> 00:45:04,600
Speaker 4: New Year's that is, if you're looking for the absolute

926
00:45:04,719 --> 00:45:06,880
Speaker 4: rock bottom lowest price that you can pay for a

927
00:45:06,880 --> 00:45:09,440
Speaker 4: new car, that's when you're going to make that happen.

928
00:45:10,000 --> 00:45:13,600
Speaker 4: It's it's kind of like chaos in the car business,

929
00:45:14,239 --> 00:45:17,040
Speaker 4: and it's super fascinating the more you peel the onion back.

930
00:45:17,080 --> 00:45:19,800
Speaker 4: Like there are regional advertising co ops for each brand

931
00:45:20,120 --> 00:45:22,920
Speaker 4: within the United States, and so like in those regions

932
00:45:22,960 --> 00:45:26,359
Speaker 4: they actually pool money from every invoice that the manufacturer sends.

933
00:45:26,400 --> 00:45:28,520
Speaker 4: They like take a little bit of money for advertising

934
00:45:28,560 --> 00:45:30,759
Speaker 4: co op. And then I've learned over the years, I

935
00:45:30,800 --> 00:45:32,919
Speaker 4: didn't know this from you, pops, but like I've learned

936
00:45:32,920 --> 00:45:36,160
Speaker 4: it from talking to more dealer groups and more dealerships.

937
00:45:36,560 --> 00:45:38,640
Speaker 4: They pulled that money all year and then they allocate

938
00:45:38,680 --> 00:45:41,200
Speaker 4: like eighty percent of their budget to just December just

939
00:45:41,239 --> 00:45:45,280
Speaker 4: to incentivize things. So it's like there's real economic incentive

940
00:45:45,280 --> 00:45:49,279
Speaker 4: to transact in December, and that's you know, also true

941
00:45:49,320 --> 00:45:50,400
Speaker 4: at the end of the month, also true at the

942
00:45:50,440 --> 00:45:52,279
Speaker 4: end of the quarter. Just heightened at the end of

943
00:45:52,360 --> 00:45:53,400
Speaker 4: December for new cars.

944
00:45:53,800 --> 00:45:56,120
Speaker 1: If you if you leave that conversation with the dealer

945
00:45:57,120 --> 00:45:59,680
Speaker 1: having like let's say I go in December fifteenth and

946
00:46:00,120 --> 00:46:02,200
Speaker 1: I'm like, man, I'm super interested in this making model. Okay,

947
00:46:02,200 --> 00:46:04,920
Speaker 1: we got close. You know, I think I'm gonna hold

948
00:46:04,960 --> 00:46:06,800
Speaker 1: off for just a minute, though I don't know that

949
00:46:06,840 --> 00:46:09,719
Speaker 1: I'm ready to pull the trigger. Is there a chance

950
00:46:09,760 --> 00:46:11,439
Speaker 1: that they reach out to me on like December twenty

951
00:46:11,520 --> 00:46:13,719
Speaker 1: ninth and they're like, come back in now, it's the

952
00:46:13,760 --> 00:46:15,279
Speaker 1: perfect time I can do an even better deal, or

953
00:46:15,320 --> 00:46:17,440
Speaker 1: do I need to reach out reach back out proactively?

954
00:46:17,719 --> 00:46:19,279
Speaker 1: But I mean that would be like kind of the

955
00:46:19,320 --> 00:46:20,880
Speaker 1: best timing situation, right.

956
00:46:20,960 --> 00:46:23,480
Speaker 4: Yeah, definitely start. Don't start trying to buy a car

957
00:46:23,480 --> 00:46:25,040
Speaker 4: at the end of the year on you know, the

958
00:46:25,120 --> 00:46:27,480
Speaker 4: day after Christmas or something like that. I do a

959
00:46:27,560 --> 00:46:29,879
Speaker 4: little bit earlier, and then you know, my dad has

960
00:46:29,920 --> 00:46:31,960
Speaker 4: this saying like, if they're not chasing you out of

961
00:46:32,000 --> 00:46:33,680
Speaker 4: the dealership trying to get you to come back in,

962
00:46:33,719 --> 00:46:36,160
Speaker 4: you probably have them at their lowest price. Obviously, again,

963
00:46:36,200 --> 00:46:38,160
Speaker 4: we endorse doing a lot of these things digitally, so

964
00:46:38,200 --> 00:46:39,839
Speaker 4: you don't even have to waste your time going into

965
00:46:39,880 --> 00:46:43,399
Speaker 4: the dealership. But yeah, I would, I would be it's

966
00:46:43,400 --> 00:46:46,399
Speaker 4: so interesting. I'd be surprised if a dealership doesn't reach

967
00:46:46,440 --> 00:46:48,200
Speaker 4: back out to on a car that you've shown interest

968
00:46:48,200 --> 00:46:49,799
Speaker 4: in and hasn't sold before the end of the year.

969
00:46:49,840 --> 00:46:52,279
Speaker 4: And at the same breath, I wouldn't be surprised because man,

970
00:46:52,320 --> 00:46:55,640
Speaker 4: there's so much turnover in this industry, Like the salespeople

971
00:46:55,640 --> 00:46:58,200
Speaker 4: turn over all the time, like the customer follow up,

972
00:46:58,200 --> 00:47:00,960
Speaker 4: it's pretty atrocious. So like double ledged sword there. But

973
00:47:01,440 --> 00:47:03,279
Speaker 4: I think the gist of what you're expressing is like

974
00:47:03,440 --> 00:47:03,880
Speaker 4: spot on.

975
00:47:04,200 --> 00:47:07,000
Speaker 2: Okay, I like that strategy though, like I picture if

976
00:47:07,280 --> 00:47:09,840
Speaker 2: I've never personally, I've never purchased a new vehicle, so

977
00:47:09,920 --> 00:47:12,520
Speaker 2: this is all new to me. But I like learning

978
00:47:12,560 --> 00:47:13,880
Speaker 2: it of course, and there's a lot of folks out

979
00:47:13,920 --> 00:47:15,320
Speaker 2: there who are considering new cars.

980
00:47:15,320 --> 00:47:16,960
Speaker 1: But I love the idea of going in there.

981
00:47:17,000 --> 00:47:20,279
Speaker 2: Like December two, December third, maybe just like start having

982
00:47:20,280 --> 00:47:23,080
Speaker 2: some conversations and then, like you said, Jill, like walk

983
00:47:23,120 --> 00:47:25,040
Speaker 2: away and then see if they reach out in a

984
00:47:25,040 --> 00:47:25,520
Speaker 2: couple of weeks.

985
00:47:25,880 --> 00:47:28,040
Speaker 1: Play hard to get. Yeah, yeah, I love that, but.

986
00:47:28,400 --> 00:47:32,040
Speaker 3: I can assure you from having done this for forty

987
00:47:32,040 --> 00:47:38,400
Speaker 3: three years. The absolute best volume week of the year

988
00:47:38,600 --> 00:47:43,040
Speaker 3: for a dealership is from December twenty sixth through the

989
00:47:43,160 --> 00:47:48,000
Speaker 3: end of the month. It is those days are just insane.

990
00:47:48,120 --> 00:47:52,440
Speaker 3: They are filled with nothing but people coming in trying

991
00:47:52,480 --> 00:47:55,440
Speaker 3: to buy a car. Salespeople trying to hit their objectives,

992
00:47:55,880 --> 00:48:00,400
Speaker 3: stores trying to hit their objectives. Manufacturers pushing like easy

993
00:48:01,040 --> 00:48:04,239
Speaker 3: extra incentives to get the dealers to hit their objectives.

994
00:48:04,680 --> 00:48:09,560
Speaker 3: It is the busiest, most prosperous week of the year

995
00:48:10,200 --> 00:48:13,840
Speaker 3: as far as total volume is concerned, but the best

996
00:48:14,000 --> 00:48:16,120
Speaker 3: absolute savings for customers.

997
00:48:16,480 --> 00:48:18,880
Speaker 2: Yeah, no, that makes sense, and it makes me realize

998
00:48:18,920 --> 00:48:21,200
Speaker 2: that like the car commercials with a bow on top, Yeah,

999
00:48:22,000 --> 00:48:24,480
Speaker 2: that people are actually doing that, which always baffles me.

1000
00:48:24,520 --> 00:48:25,319
Speaker 2: It blows my mind.

1001
00:48:25,840 --> 00:48:27,279
Speaker 1: That's why you take your wife or girlfriend out for

1002
00:48:27,360 --> 00:48:30,400
Speaker 1: Valentine's Day meal on February sixteenth. On February fourteenth, same thing,

1003
00:48:30,480 --> 00:48:32,280
Speaker 1: buying the car like put the bow on it. After Christmas,

1004
00:48:32,360 --> 00:48:34,320
Speaker 1: after the fact, it's like, yeah.

1005
00:48:34,120 --> 00:48:37,759
Speaker 2: This is an iou ray, maybe we've got time for

1006
00:48:37,760 --> 00:48:39,080
Speaker 2: a couple more here. But I want to hear your

1007
00:48:39,080 --> 00:48:42,440
Speaker 2: thoughts on traveling outside of where you live, like outside

1008
00:48:42,440 --> 00:48:44,399
Speaker 2: of your home market, in order to get a better deal,

1009
00:48:44,600 --> 00:48:46,840
Speaker 2: because like it is it just a matter of running

1010
00:48:46,840 --> 00:48:49,279
Speaker 2: the numbers and seeing, hey, it was worth it just

1011
00:48:49,320 --> 00:48:51,759
Speaker 2: to buy a one way ticket to this you know,

1012
00:48:52,000 --> 00:48:53,920
Speaker 2: some other market that might have a deal on a

1013
00:48:53,920 --> 00:48:55,200
Speaker 2: particular vehicle that you're looking at.

1014
00:48:55,280 --> 00:49:00,480
Speaker 3: Absolutely, you know, oftentimes it never hurts to broaden yours.

1015
00:49:01,040 --> 00:49:04,520
Speaker 3: So if you can't find a deal within your market area,

1016
00:49:04,680 --> 00:49:09,080
Speaker 3: don't be afraid to expand where you're willing to go.

1017
00:49:09,200 --> 00:49:14,640
Speaker 3: If you can find the same vehicle somewhere else that's

1018
00:49:14,680 --> 00:49:17,560
Speaker 3: I don't know, five six, seven hundred miles away, But

1019
00:49:17,719 --> 00:49:21,320
Speaker 3: you're saving two thousand dollars or twenty five hundred dollars

1020
00:49:21,640 --> 00:49:24,360
Speaker 3: and it's going to cost you three hundred dollars to

1021
00:49:24,440 --> 00:49:28,560
Speaker 3: fly there. Well, you'd be a fool not to spend

1022
00:49:28,600 --> 00:49:31,560
Speaker 3: the three hundred dollars to save twenty five hundred bucks.

1023
00:49:31,800 --> 00:49:37,000
Speaker 3: So you know, there's different markets and different areas, and

1024
00:49:37,239 --> 00:49:40,600
Speaker 3: certain vehicles sell better in one area than another. And

1025
00:49:40,640 --> 00:49:43,040
Speaker 3: the vehicle that you might be looking at that's hot

1026
00:49:43,080 --> 00:49:45,800
Speaker 3: in your area could be cold in a different area.

1027
00:49:46,320 --> 00:49:50,200
Speaker 1: Is there an easy way to determine on the front end, right, like, oh,

1028
00:49:50,239 --> 00:49:55,600
Speaker 1: it's worth looking at the Chevy Blazer in Arizona versus

1029
00:49:55,760 --> 00:49:57,719
Speaker 1: Georgia or something like that. How do you know on

1030
00:49:57,719 --> 00:49:59,640
Speaker 1: the front end maybe which markets you should be shopping

1031
00:49:59,640 --> 00:50:01,399
Speaker 1: and and how much money you might be able to save.

1032
00:50:01,600 --> 00:50:04,319
Speaker 3: Well, Okay, let's say, for instance, you want an all

1033
00:50:04,320 --> 00:50:07,120
Speaker 3: wheel drive vehicle or a four wheel drive vehicle, and

1034
00:50:07,160 --> 00:50:10,800
Speaker 3: you're in the northeast, okay, and everybody in the northeast

1035
00:50:10,920 --> 00:50:15,040
Speaker 3: reuse of the winters wants one of those. Do you

1036
00:50:15,160 --> 00:50:21,400
Speaker 3: think the same applies to those vehicles in Florida? No,

1037
00:50:21,400 --> 00:50:23,920
Speaker 3: Now you have to deal with Florida dealers in Florida

1038
00:50:24,000 --> 00:50:26,879
Speaker 3: dock fees. But still you might be able to save

1039
00:50:27,000 --> 00:50:30,880
Speaker 3: enough money that it makes sense or go down to Louisiana.

1040
00:50:31,320 --> 00:50:34,440
Speaker 3: So there are you just have to look at the

1041
00:50:34,560 --> 00:50:38,520
Speaker 3: geography based on what it is that you're looking for.

1042
00:50:38,600 --> 00:50:41,200
Speaker 3: All wheel drive vehicles don't sell as well in the

1043
00:50:41,280 --> 00:50:45,960
Speaker 3: South as they do in the Northeast and the northwest.

1044
00:50:46,320 --> 00:50:48,799
Speaker 4: Dad, if you don't mind I'll do another shameless plug.

1045
00:50:48,880 --> 00:50:51,960
Speaker 4: We built a product called Carriage Insights that as you're

1046
00:50:52,000 --> 00:50:54,960
Speaker 4: on our car search, it tells you how many of

1047
00:50:55,000 --> 00:50:57,600
Speaker 4: that same year, make, model, and trim are available for

1048
00:50:57,680 --> 00:51:00,000
Speaker 4: sale within one hundred miles of the vehicle you're looking at,

1049
00:51:00,400 --> 00:51:03,000
Speaker 4: and how many have sold in the last forty five days,

1050
00:51:03,040 --> 00:51:05,720
Speaker 4: which then allows us to calculate the market day's supply

1051
00:51:06,200 --> 00:51:08,520
Speaker 4: for that particular vehicle. All you have to do is

1052
00:51:08,600 --> 00:51:10,400
Speaker 4: change your zip code in the car search and you

1053
00:51:10,400 --> 00:51:13,399
Speaker 4: can see what the day's supply of any vehicle is

1054
00:51:13,560 --> 00:51:15,680
Speaker 4: in any region of the United States. The higher the

1055
00:51:15,719 --> 00:51:19,600
Speaker 4: day's supply means that more oversupplied that vehicle is, Like

1056
00:51:20,120 --> 00:51:21,880
Speaker 4: I don't know, hopefully it's come through in this conversation.

1057
00:51:21,920 --> 00:51:24,040
Speaker 4: Like I'm incredibly data driven because I think it takes

1058
00:51:24,080 --> 00:51:26,360
Speaker 4: opinion out of a lot of these things. And I

1059
00:51:26,360 --> 00:51:28,960
Speaker 4: think in an industry that's opay can needs transparency. The

1060
00:51:28,960 --> 00:51:30,960
Speaker 4: more we can be fact based, the better. And so

1061
00:51:31,040 --> 00:51:33,080
Speaker 4: that's something I'm really proud of, is like you can

1062
00:51:33,160 --> 00:51:35,840
Speaker 4: use the anecdotal you know what my dad's sharing, and

1063
00:51:35,840 --> 00:51:37,719
Speaker 4: then there's also just like some hard numbers that you

1064
00:51:37,719 --> 00:51:40,080
Speaker 4: can show up with and be like, look, you have

1065
00:51:40,120 --> 00:51:43,240
Speaker 4: a three hundred days supply inventory of this four wheel

1066
00:51:43,320 --> 00:51:45,799
Speaker 4: drive vehicle. I will help you relieve yourself of one

1067
00:51:45,800 --> 00:51:46,560
Speaker 4: of those units.

1068
00:51:47,040 --> 00:51:51,040
Speaker 1: Yeah, that more than I need. Yeah Yeah.

1069
00:51:51,239 --> 00:51:52,799
Speaker 2: Referring back to your website, you've got a ton of

1070
00:51:52,800 --> 00:51:55,600
Speaker 2: resources up there. You already mentioned the email templates that

1071
00:51:55,680 --> 00:51:57,680
Speaker 2: y'all offer there for folks as they want to start

1072
00:51:57,719 --> 00:52:00,000
Speaker 2: negotiating on the front end before they even step foot

1073
00:52:00,040 --> 00:52:01,759
Speaker 2: into a dealership. What are what are some of the other,

1074
00:52:02,640 --> 00:52:05,080
Speaker 2: let's say, free resources you offer, but then also some

1075
00:52:05,120 --> 00:52:07,279
Speaker 2: of the more premium offerings that you'll have.

1076
00:52:07,280 --> 00:52:09,360
Speaker 4: As well, I mean the big free stuff, Dad, Like,

1077
00:52:09,360 --> 00:52:12,800
Speaker 4: I'm thinking deal School. We spent man a week plus

1078
00:52:12,880 --> 00:52:17,920
Speaker 4: just filming, creating quizzes, creating pdf like one pagers for it.

1079
00:52:18,120 --> 00:52:20,560
Speaker 4: It's in like a learning management system called deal School,

1080
00:52:20,560 --> 00:52:22,799
Speaker 4: which is super cool, and that's one hundred percent free.

1081
00:52:22,800 --> 00:52:25,200
Speaker 4: That like, I think it's maybe like six hours worth

1082
00:52:25,200 --> 00:52:27,200
Speaker 4: of content when it's all chopped up and in the lessons,

1083
00:52:27,239 --> 00:52:29,719
Speaker 4: but that's free. We have cheat sheets that are like

1084
00:52:29,800 --> 00:52:32,560
Speaker 4: when the dealer says this, here's how to respond. That's free.

1085
00:52:32,600 --> 00:52:34,920
Speaker 4: The email templates are free. The car search you can

1086
00:52:35,000 --> 00:52:37,680
Speaker 4: use for free, So like lots of good resources to

1087
00:52:37,719 --> 00:52:40,480
Speaker 4: try and try and level the playing field. And then

1088
00:52:40,480 --> 00:52:43,360
Speaker 4: the big thing for us is our car buying service,

1089
00:52:43,440 --> 00:52:45,879
Speaker 4: Like for people who just don't want to deal with

1090
00:52:46,800 --> 00:52:48,960
Speaker 4: deal with it quite frankly, and want to make sure

1091
00:52:48,960 --> 00:52:50,600
Speaker 4: they don't get screwed, and they just want to be

1092
00:52:50,640 --> 00:52:52,200
Speaker 4: able to buy a car and have a show up

1093
00:52:52,200 --> 00:52:54,520
Speaker 4: in their driveway. Like that's where we're really trying to

1094
00:52:54,520 --> 00:52:59,200
Speaker 4: make our mark. And fortunately it's it's you know, resonating

1095
00:52:59,239 --> 00:53:01,760
Speaker 4: really well with with our community, and we feel super

1096
00:53:01,760 --> 00:53:04,440
Speaker 4: grateful obviously to share that message with yours as well.

1097
00:53:04,520 --> 00:53:07,399
Speaker 1: Yeah, that's great. I mean, so much information I think

1098
00:53:07,400 --> 00:53:10,640
Speaker 1: we've shared here today that people can use to be

1099
00:53:10,640 --> 00:53:12,960
Speaker 1: an advocate for themselves. But it's also nice to know

1100
00:53:13,080 --> 00:53:16,080
Speaker 1: that you can hire an advocate to do the jobbing

1101
00:53:16,080 --> 00:53:18,439
Speaker 1: for you, which, let's be honest with in the era

1102
00:53:18,560 --> 00:53:20,839
Speaker 1: of instacart and everything people picking out your apples. I mean,

1103
00:53:21,080 --> 00:53:23,200
Speaker 1: this is something that has done more and more frequently

1104
00:53:23,239 --> 00:53:26,520
Speaker 1: and more industries, and we really appreciate you guys taking

1105
00:53:26,520 --> 00:53:27,960
Speaker 1: the time to join us today. We love what you

1106
00:53:27,960 --> 00:53:30,880
Speaker 1: guys are doing to bring more transparency to the car

1107
00:53:30,920 --> 00:53:33,440
Speaker 1: buying process. And don't forget one more free resource is

1108
00:53:33,600 --> 00:53:37,600
Speaker 1: the YouTube channel that Zach and Ray are always putting

1109
00:53:37,600 --> 00:53:39,640
Speaker 1: out content on really just to inform consumers, help them

1110
00:53:39,719 --> 00:53:42,560
Speaker 1: understand the car buying process even more so that you

1111
00:53:42,600 --> 00:53:45,840
Speaker 1: don't get taken advantage of Ray. Zach, thank you so

1112
00:53:45,920 --> 00:53:47,319
Speaker 1: much for joining us today on How to Money.

1113
00:53:47,360 --> 00:53:48,200
Speaker 2: We really appreciate it.

1114
00:53:48,239 --> 00:53:49,960
Speaker 3: Thank you guys. This was great fun.

1115
00:53:50,080 --> 00:53:51,759
Speaker 4: Thank you Matt, Thank you Joel well Joel.

1116
00:53:51,800 --> 00:53:54,960
Speaker 2: Obviously we touched on the fact that Ray and Zach

1117
00:53:55,040 --> 00:53:57,440
Speaker 2: are related. It's a father son comba. That is.

1118
00:53:57,520 --> 00:53:59,200
Speaker 1: This is the first time we've ever had.

1119
00:53:59,080 --> 00:54:01,840
Speaker 2: Guests on the show a who work together in like

1120
00:54:02,080 --> 00:54:03,680
Speaker 2: in such a way like this, but who are also

1121
00:54:03,840 --> 00:54:04,440
Speaker 2: family members.

1122
00:54:04,480 --> 00:54:07,520
Speaker 1: That's pretty cool. Julian Kirsten from Rich and Regular. They're married,

1123
00:54:07,840 --> 00:54:08,920
Speaker 1: married couples, typical.

1124
00:54:09,320 --> 00:54:11,759
Speaker 2: We've had multiple couples on, haven't we. Yeah, I think so,

1125
00:54:11,880 --> 00:54:13,719
Speaker 2: the Van Life couple. Oh yeah, that was a long time.

1126
00:54:13,960 --> 00:54:14,399
Speaker 1: Was a long time.

1127
00:54:14,719 --> 00:54:16,160
Speaker 2: That was a couple. No, this was but a father

1128
00:54:16,280 --> 00:54:17,480
Speaker 2: sun combo. That's that's fun.

1129
00:54:17,600 --> 00:54:20,680
Speaker 1: I love it. Yeah, I love it. And honestly, their

1130
00:54:20,760 --> 00:54:24,080
Speaker 1: relationship is part of the story of the company they're building,

1131
00:54:24,400 --> 00:54:27,960
Speaker 1: and they've exacted a great job of kind of like, yeah,

1132
00:54:28,040 --> 00:54:30,160
Speaker 1: giving us some insight into that too, and I love that,

1133
00:54:30,280 --> 00:54:33,120
Speaker 1: like the building, this business has actually been restorative to

1134
00:54:33,160 --> 00:54:34,600
Speaker 1: their relationship, which is super cool.

1135
00:54:34,680 --> 00:54:35,560
Speaker 2: Yeah, it's really cool.

1136
00:54:35,600 --> 00:54:37,439
Speaker 1: It's yeah, I love to see it, and I love

1137
00:54:37,719 --> 00:54:40,200
Speaker 1: all the information they're putting out, including on this episode

1138
00:54:40,360 --> 00:54:42,320
Speaker 1: about how to buy a car and not get screwed.

1139
00:54:42,680 --> 00:54:44,120
Speaker 1: So Matt, enough.

1140
00:54:44,040 --> 00:54:48,120
Speaker 2: Takeaway, Enough of the mushy emotional stuff. My big takeaway, dude,

1141
00:54:48,280 --> 00:54:50,239
Speaker 2: was the fact that when you are looking at some

1142
00:54:50,280 --> 00:54:52,640
Speaker 2: of the different line items, if you are buying a

1143
00:54:52,680 --> 00:54:54,919
Speaker 2: new vehicle from a dealership and you're looking at all

1144
00:54:55,040 --> 00:54:57,279
Speaker 2: the fees that they've tacked on the different things like, like

1145
00:54:57,239 --> 00:55:00,719
Speaker 2: you said, the doc fee or the processing fee. Zach

1146
00:55:00,880 --> 00:55:03,920
Speaker 2: went through a litany of other made up fees as well.

1147
00:55:04,600 --> 00:55:08,759
Speaker 2: But bottom line, you can negotiate any fee that is taxable.

1148
00:55:09,040 --> 00:55:11,880
Speaker 2: The things that are untaxable, title and registration, those aren't

1149
00:55:11,880 --> 00:55:13,960
Speaker 2: things that you can negotiate, no matter what you're you're

1150
00:55:13,960 --> 00:55:14,319
Speaker 2: paying that.

1151
00:55:14,360 --> 00:55:16,640
Speaker 1: The state fees are, yeah, they're to stay, no matter why.

1152
00:55:16,640 --> 00:55:18,320
Speaker 2: You're still going to pay the tax man. But everything

1153
00:55:18,360 --> 00:55:21,239
Speaker 2: else that the dealership gets, Hey, it's worth bringing up.

1154
00:55:21,320 --> 00:55:21,759
Speaker 1: What is this?

1155
00:55:21,800 --> 00:55:22,719
Speaker 2: What is this? I don't want this?

1156
00:55:22,840 --> 00:55:25,360
Speaker 1: What's the destination fee. What's that about? Yeah, there's so

1157
00:55:25,440 --> 00:55:27,719
Speaker 1: many fees like that tacked on, and I mean again,

1158
00:55:27,760 --> 00:55:29,279
Speaker 1: if you're looking for a video to help you figure

1159
00:55:29,400 --> 00:55:30,960
Speaker 1: figure out the specifics of that and how to push

1160
00:55:31,000 --> 00:55:33,759
Speaker 1: back on those things, the father son combo of Zach

1161
00:55:33,800 --> 00:55:36,080
Speaker 1: and Ray have created content to help you kind to

1162
00:55:36,120 --> 00:55:36,839
Speaker 1: push back on those.

1163
00:55:37,400 --> 00:55:39,719
Speaker 2: Well a great YouTube channel. But yeah, they mentioned how

1164
00:55:39,760 --> 00:55:41,520
Speaker 2: that's the best piece of merch that they've created, and

1165
00:55:41,560 --> 00:55:43,920
Speaker 2: for a good reason, because it just helps to provide

1166
00:55:43,920 --> 00:55:46,560
Speaker 2: some clarity to a very confusing process.

1167
00:55:46,800 --> 00:55:48,399
Speaker 1: All Right, I'm gonna get what about you. I'm gonna

1168
00:55:48,400 --> 00:55:50,239
Speaker 1: go take a take a little forest instead of the

1169
00:55:50,280 --> 00:55:53,920
Speaker 1: trees thing. And when towards the beginning, Zach said, dealers

1170
00:55:54,200 --> 00:55:56,040
Speaker 1: don't want you to make an informed decision. They want

1171
00:55:56,080 --> 00:55:56,480
Speaker 1: you emotional.

1172
00:55:56,520 --> 00:55:58,760
Speaker 2: Actually, I think it was that said that an emotional decision,

1173
00:55:58,760 --> 00:55:59,359
Speaker 2: that's what they want.

1174
00:55:59,480 --> 00:56:01,359
Speaker 1: Yeah, and that's why. And then at the very end

1175
00:56:01,520 --> 00:56:04,480
Speaker 1: Zach says, hey, the data is what's going to save you.

1176
00:56:04,600 --> 00:56:08,360
Speaker 1: Essentially that basically, if you're going in there and you're emotional,

1177
00:56:08,400 --> 00:56:11,240
Speaker 1: it's on all these levels. So many of these decisions

1178
00:56:11,239 --> 00:56:13,280
Speaker 1: are emotional. It's to make the model, the car, color,

1179
00:56:13,480 --> 00:56:15,080
Speaker 1: the trim all these things. It's emotional.

1180
00:56:15,120 --> 00:56:15,960
Speaker 2: It's going to make you feel.

1181
00:56:16,000 --> 00:56:17,799
Speaker 1: It's like buying a house, right, and some people get

1182
00:56:17,800 --> 00:56:20,080
Speaker 1: tied up, they forget the finances because they're just in

1183
00:56:20,080 --> 00:56:22,080
Speaker 1: love with that one particular house and no other house

1184
00:56:22,480 --> 00:56:25,640
Speaker 1: will suffice. Well, if you're in that sort of headspace

1185
00:56:25,640 --> 00:56:28,319
Speaker 1: when it comes to buying a car and you're less analytical,

1186
00:56:28,360 --> 00:56:30,839
Speaker 1: you're less about the numbers and the data, you're going

1187
00:56:30,880 --> 00:56:33,040
Speaker 1: to overpay. Not to mention the fact that you might

1188
00:56:33,080 --> 00:56:35,160
Speaker 1: not just not get a great deal, but you might

1189
00:56:35,280 --> 00:56:37,160
Speaker 1: buy something that you shouldn't be buying in the first place,

1190
00:56:37,400 --> 00:56:38,880
Speaker 1: end up going over the top. That's right, So you

1191
00:56:38,880 --> 00:56:40,680
Speaker 1: don't want to do that. Buying a new car is

1192
00:56:40,719 --> 00:56:42,560
Speaker 1: not something that, like you said, Matt, you've never done it.

1193
00:56:42,600 --> 00:56:44,400
Speaker 1: I did it one time with my Nissan Leaf because

1194
00:56:44,440 --> 00:56:46,839
Speaker 1: of the special state and federal tax and sentence. Buying

1195
00:56:46,840 --> 00:56:49,239
Speaker 1: a new car is not something that we've really had

1196
00:56:49,320 --> 00:56:51,200
Speaker 1: much experience with. So it's good to get their intake.

1197
00:56:51,239 --> 00:56:53,279
Speaker 1: But it's also important to note that you're probably going

1198
00:56:53,360 --> 00:56:55,719
Speaker 1: to save the most money by keeping the car you got.

1199
00:56:55,840 --> 00:56:58,520
Speaker 2: That's right, man, All right, let's quickly something that doesn't

1200
00:56:58,560 --> 00:57:03,120
Speaker 2: mix very well. Cars and beer, but we enjoyed a

1201
00:57:03,160 --> 00:57:06,840
Speaker 2: beer from Steady Hand Beer Company. It's called Gimme the Loop,

1202
00:57:07,520 --> 00:57:10,680
Speaker 2: l U P. I assumed that's a there's a hot

1203
00:57:10,840 --> 00:57:12,799
Speaker 2: that's the Is it a bulin or something? I think

1204
00:57:12,840 --> 00:57:15,239
Speaker 2: that's right. Yeah, but this is a hazy double I PA,

1205
00:57:15,320 --> 00:57:15,920
Speaker 2: what your thoughts?

1206
00:57:16,160 --> 00:57:19,520
Speaker 1: Yeah, drinking and driving not advice illegal in most parts

1207
00:57:19,520 --> 00:57:21,200
Speaker 1: of the country, although I think in like what Louisiana

1208
00:57:21,280 --> 00:57:24,360
Speaker 1: you can go to drive through liquor stores and you

1209
00:57:24,400 --> 00:57:25,600
Speaker 1: can get like it to go drink.

1210
00:57:25,800 --> 00:57:26,720
Speaker 2: Yeah, that's right. What is it?

1211
00:57:27,040 --> 00:57:29,520
Speaker 1: It's like, it's a terrible idea. But other than also

1212
00:57:29,560 --> 00:57:32,000
Speaker 1: it's like, don't they like slushies or something like that?

1213
00:57:32,040 --> 00:57:33,080
Speaker 2: Probably it's something.

1214
00:57:33,120 --> 00:57:36,040
Speaker 1: It sounds so Louisiana, and I love Louisiana, so that's

1215
00:57:36,080 --> 00:57:37,800
Speaker 1: not even I'm not even hating. But this is a

1216
00:57:37,800 --> 00:57:40,120
Speaker 1: beer brewed here in Atlanta. Do you like it? I

1217
00:57:40,120 --> 00:57:41,800
Speaker 1: did like it. Yeah. I thought I had like a

1218
00:57:42,040 --> 00:57:45,560
Speaker 1: kind of slightly off putting aftertaste, but yeah, but overall

1219
00:57:45,760 --> 00:57:47,680
Speaker 1: really like this. This was like a kind of a

1220
00:57:47,680 --> 00:57:50,320
Speaker 1: classic hazy but made locally, which is kind of nice.

1221
00:57:50,640 --> 00:57:52,640
Speaker 1: Was it the aftertaste kind of tropically?

1222
00:57:52,800 --> 00:57:55,240
Speaker 2: Did it make you think of canned pineapple, because I

1223
00:57:55,320 --> 00:57:57,480
Speaker 2: think it was exactly well, so that's I can, which

1224
00:57:57,520 --> 00:58:00,120
Speaker 2: I actually love canned pineapple, so the juiciness, but you

1225
00:58:00,120 --> 00:58:03,520
Speaker 2: also you oftentimes associate it with like an old can

1226
00:58:03,560 --> 00:58:05,640
Speaker 2: that's been sitting in your in your uh pain.

1227
00:58:06,120 --> 00:58:08,280
Speaker 1: Because it was a little bit of metallic vibe too.

1228
00:58:08,360 --> 00:58:10,600
Speaker 2: Yeah yeah, yeah, so yeah, in my opinion, it had

1229
00:58:10,720 --> 00:58:12,680
Speaker 2: a lot of these tropical notes going on, but specifically

1230
00:58:12,800 --> 00:58:15,880
Speaker 2: like canned pineapple kind of vibe. So keep that in mind.

1231
00:58:15,960 --> 00:58:17,560
Speaker 2: But buddy, I think that's going to be it for

1232
00:58:17,600 --> 00:58:19,120
Speaker 2: this one. We'll make sure to link to some of

1233
00:58:19,160 --> 00:58:22,360
Speaker 2: the specific resources that we mentioned during our conversation with

1234
00:58:22,520 --> 00:58:24,280
Speaker 2: Ray and Zach. You can find those up on the

1235
00:58:24,280 --> 00:58:27,320
Speaker 2: website at howdomoney dot com, no doubt. So until next time,

1236
00:58:27,440 --> 00:58:29,439
Speaker 2: best friends out, Best friends out.

1237
00:58:43,760 --> 00:58:45,840
Speaker 3: Like I sound like an old car guy.

1238
00:58:45,840 --> 00:58:49,600
Speaker 1: That's why we wanted you on, man, that's what you

1239
00:58:50,040 --> 00:58:51,760
Speaker 1: got to talk about buying cars, you know,