they would rather auction a car at a loss than sell to you at a loss says a lot

I had a friend in the business who told me “there’s an ass for every seat.”

I only buy certified used cars. 20-30 K miles, still has factory warranty, and someone else ate the depreciation.

Our dealership also owned 5 other dealerships. Our aging vehicles would be rotated between our lots to refresh the lot inventory. Sometime it just needed a fresh city, a fresh salesperson, and a fresh market. We rarely had aging models. We were also paid extra for the older model so there was motive to move them.

Your Auto Advice: No such thing as a unsold car. COVID-19: Hold my Beer.

The mere fact 1000s upon 1000s of new cars go unsold every year. Is further proof cars are way overpriced & overproduced.

Ray, I have to share a story with you that I bet you can relate to. Way back in 1983, I was working for a dealership, and this was in the early days of ordering new cars by computer, which we had very little knowledge of. So one day, we see the car carrier pull in, and all the salesmen burst out laughing. On the back was a 2 door Malibu, with a 2 tone paint in light blue on the bottom, and white. Worse, it had a burgundy vinyl top on it! Obviously we had hit the wrong keys in ordering, but it got worse! Once off the truck, we realized we had ordered a stripped down car, and when I jumped in to move it, realized we had ordered it with a 3 on the tree transmission!! Now I'm sure you remember we were in a recession back then and we were getting only a limited number of cars, so this dog was going to be a hard one to move. It sat on the lot for about 6 months, with most customers who stopped to look at walking away laughing. One day I see an older couple pull in in their 4 door citation, which I'm sure you remember as one of Chevrolets ugliest cars ever produced. They pulled over and were looking at the Malibu. To spare the salesmen from being laughed at, I said I would take them. As I walked out to greet them, I glanced in their Citation and noticed it was a striped down car with a manual transmission, probably the only one ever made! When I greeted them, the man was in awe, and told me they had looked everywhere, and hadn't found a car like this. I resisted the urge to tell him he never would again! After a short test drive, they wanted to purchase it. I reluctantly asked if they were going to trade the Citation (please gawd no) and he said no, it took too long to find that car, and they weren't letting it go. After a slight negotiation, they bought the car for almost full price! It just goes to show that each customer has their own idea of the perfect car, so don't prejudge them. Forty years later that customer is still in my head!

I'm in the process of looking for a car, and I've found the YAA videos to be both entertaining and enlightening. Zack, Ray, Lauren, Kim - all are great characters and play their parts quite well, and have taught me a lot. Thank you for sharing your knowledge!

That's actually how I ended up getting a good deal before. I shopped around for months and kept seeing the same car at the local Ford dealership. The salesman who was a cool guy realized I was an actual buyer and got the car reduced about $3,500. The Mustang was really nice EXCEPT for the graphics package and striping, It looked hideous. The salesman told me that it happens sometimes that Ford would do bizarre exterior/interior color combos or add random things like graphics onto a car for better or worse. He told me A LOT of people would look at it but just couldn't get past the exterior and if I'm interested that he'll go to battle for me. I got a great deal and I ended up taking the car to a local tint and performance shop. They were able to safely remove the graphics for a few hundred dollars. WIN!!!

The most highly trained salesman in the dealership IS the finance guy. If its a hot girl, be extra on guard!

There isn’t a vehicle on the road that’s technically worth more than $30k, prices are just stupid

In 1996 I bought a 2 year old left-over Chevy conversion van for $10,000 less than sticker price. It had never been owned. It sat at the dealer's lot for 2 years and never sold. I had just given birth to triplets and needed a bigger vehicle to accommodate the triplets (and their stroller), my older son, husband and me. It was perfect! We just happened upon it and bought it right away!

I'm glad to see that this model of buying cars is on it's way out. Dealing with car salesman is one of the worst experiences an individual could go through in life that will make most people question their faith in humanity.

I'm a long haul trucker I'm seeing new cars stored everywhere people are waking up buying a new car in this economy is insane.

This must be why everyone tells me that my vehicle was an absolute steal. With none of this knowledge I went to a GMC dealership in November of 2019 and had my eyes on a Sierra 1500 they labeled as "new" but had ~2000 miles, as it was a courtesy vehicle the dealership used. I felt the label of new was accurate as the vehicle was immaculate. It stickered for $52k and they wanted $44k, I offered them $37k and they refused. I walked away and went fishing, that night the dealership called me and told me they'd do $37k and I went in the next day and got the truck! I now think this must have been one of those vehicles that the dealership was desperate to get rid of and im so thankful it came into my possession, I love it!

I used to work at an auction and I’ve seen brand new 2019 cars sell cheap. There was a 2019 Hyundai Elantra with around 900 miles on it sell for 8900. I’ve also seen Aston martins sell for around 30,000 with less that 5 k miles. It’s insane how cheap cars actually go for. But like he said you need to be a dealer.

I went through this with a motorcycle dealer a few years back. "No, even though that bike is 3 years old, we'll keep it until it sells. No discounts." Must be the grandson of the owner running the place.

Thank you . There are so few people out there that can really help you when it comes to cars . I have been taken more than once . In fact I hate buying cars . It should be something that brings a person great joy but not me . Thank you again from TN .

I went to a Ford dealer in small town Oregon as a sales consultant teaching sales to their crew. I asked the dealer what they needed sold most. They said they had new cars having birthdays. In one week I sold three new cars that where one year on the lot. Almost without exception it's sales people's inability to do the job they were hired to do. They read magazines play video games or watch KZfaq. One of the sales was from the service department customer waiting for oil change. One was an old couple walking their dog. Dealers train your people and hold them accountable for their time!!

Wow I haven't seen Richard Dryfuss in anything in years!

Well what do you know, there’s an honest car salesman after all. Thanks for sharing this information. 👍🏼👍🏼

First time watching your videos. Best piece of information for cars that i have ever heard. Thank you. Im actually car shopping at the moment

Car dealerships: Will that be with or without vaseline?

Just bought a brand new 18 model with 49 miles. Never titled, almost 3 years old. Saved 20k and got a true lifetime drive train warranty as long as I own it.

Every seat has an ass.. that's what they taught me when I started.. lol. Good information..👍

I hauled cars for many years (Found a better driving gig with 1/10th the work and the same pay!) both new, secondary out of auction yards and "POV's" and what you infer about the secondary market is very true. Most people have no idea how large the volume that a major ADESA or Mannheim lot will go through in a month. Having said that, there is certainly a massive backlog right now, but that will pass, just as it did in 2008/09. Nicely done video. Succinct, accurate and to the point. Kept my interest. Well done, sir. Well done indeed.

I could listen to your stories all day, reminds me of my father.

We had a Pontiac/Buick dealership in our county (small town locale) that still had new 1959 Vauxhalls in 1967 and new German-built Opels in 1995,the dust was so thick that when they were finally sold they used brooms to sweep them off before even attempting to run them through their mechanical car wash !

this is a great lil sit down you do here sir. straight to the point and no b.s. on the other side of this you also need to be careful f dealers doing the switch-aroo when you purchase a brand new unit and they switch it for a pre owned lemon. im off the grid in a now custom travel trailer and when i bought it the guy knownly give me a lemon model that wsa out back. about 2 months into ownership i came across my photos of the day before taking delivery, the decal pattern outside was completly differnt, the unit they "took" for prep was taken out back and i was sold this contraption. the only thing that saved both of us is my plan from the minute i walked into this is to gut it and restyle it like its the mid 80's. be care ful everyone.stay safe and take care

Great video. This is the first I heard this. It makes sense. We appreciate it!! 🖐🖐👍

Invaluable knowledge. Most ppl are not aware of the "oldest, new car strategy". I will definitely ask when purchasing. Thank you so much.

One of those questions you keep in the back of your head but never care enough to follow up :) Really Interesting video! Thank you!

Those left overs are sold at franchise sales . Like at a gm closed dealer auction . They usually are not open to used car dealers .

That was a great tip! 🙏🏾 thank you

I just discovered your channel, I'm glad I did, it's good to see a fellow automotive enthusiast . Thank you for the elevated sophisticated content. You have a new subscriber ,Have a good one and I'm looking forward to your next video

I just tripped upon your videos yesterday. Thank you so much for sharing with us. Subscribed 👍🏽

Thank you for sharing your 40+ years experience with us !!!!

Thanks for the advice. Very insightful indeed. Also felt like you spoke from the heart.

1st time seeing your video and appreciate you being very helpful. Just because you gave back and truly wanting to help. I am now a subscriber. Thank you

I liked the days when you went to the dealer and ordered a car. You needed cash up front. The banks gave good interest deals. You outfitted the car the way you wanted it, full tilt or bare bones.then you waited with keen anticipation for about 6 weeks , while they built your car. It was brand new and made for you.

Very informative. I always wondered about this. What you did makes sense.

Thank you for being so transparent. I wish dealers were this forthcoming with this information. A few weeks ago I declined to purchase a used Cadillac because the OTD price we got had the vehicle priced $3k higher than when we first looked at the car. They also added about $6k in additional fees (like "closing cost") on top of the markup. We asked that the price be reduced to what we discussed on the test drive. They wouldn't budge on the price. We walked away. The car has been in their inventory for 60 days now. The price is still not moving so I'm wondering if this is one of those dealers that holds onto cars forever while waiting for the perfect buyer that's willing to pay their price. They do market based pricing but what is that even worth if in the end they don't have any buyers for that car? The car isn't getting any younger so the value will continue to drop while it sits on their lot and they refuse to lower the price by any means.

I sold cars for 28 months. We used to tell our customers we lost money on every car, but we made that up with volume.

I worked in the auto dealership universe for decades as well, and I really enjoy your channel. Just found you!

Just subscribed. LOVE your videos! Straight forward, common sense, Excellent presentations 👍🇺🇸

Dude, great lighting, background, sound level, and informative tube! Great job!

Well done, this video is very informative and I'll be using it to get a better deal in my next car purchase!

Man you are entertaining. Great to have someone willing to KZfaq this stuff.

Thank you for this advice. We recently bought a Subaru Legacy and by asking for the oldest car they had with the color and options we wanted we got an extra $500 off the price.

Love the wisdom! Thank you!!

This was extremely enlightening! Thanks for the video.

Thanks - I subscribed after watching some of your other videos.

That was some of the best car buying advice I have heard. These days I lease. I call four or more dealerships the day before the end of the month. I tell them the model and features that I need. I tell them that I will make the purchase tomorrow at the dealership with the best offer. I tell them that I am hoping to find the car matching the description that has been on their lot the longest. I make it clear that the purchase will be made the next day and that the dealership with the best price is making a sale tomorrow. Somebody is going to make the sale, so there is always one or two dealerships that aggressively seek to be the low price leader. Somebody needs to make a sale and I work hard to find them.

Thanks I’ve always been curious about this

I had opposite experience a few years ago. Called local dealer about a pickup they had in ad, and asked if they still had the truck. I was told yes it's still there. So next day I show up and ask about truck, salesman pulls it around to showroom. Right away I know truck has been used, bed is scuffed, oil running down engine cover, etc. I asked if this was same truck? Was told yes, the owner has been using it all summer. I guess so, there was about 6K miles on odometer. Not a deal killer, but they wanted new price and wouldn't budge. After I quit laughing I drove to another dealer and bough same truck for thousands less. Brand new! I guess dealers really think their customers are idiots, and maybe some are. New subscriber by the way. Thanks for all the info you provide. Keep it coming.

whoa! An actually interesting, honest and useful bit of knowledge on youtube. Sometimes the most random topics spoken by people "inside" is really interesting.

how about a video on " how do u know you have a good deal" yes dealers have to make $$ but every car I've ever bought at the end as I drive off the lot I feel I got the short end

Dealers also sell new cars at auction to get their allocations up for next year.

As a former auto Finance Director and "car guy", I knew what you are talking about. In July 2020 I wanted a new Chrysler 300 and so I searched for new 2019. Using the different internet resources: Autotrader, KBB, CarFax, CarGurus, etc, I searched for about a week. Called around made offers and finally found a brand new 2019 with only 107 miles on it at a small dealership in Texas (with exactly the color and features I wanted.) MSRP was $34K and I ended up getting it for just under $21K + tax, title & license. Being patient and searching around ABSOLUTELY paid off for me!

Research cars that you like. Just like going to the grocery store hungry, never go to a car dealer when you need wheels---you will pay a lot more if you *need* a car. Always go before the need. Have walk away power and walk away if the deal is not right. Don't let the dealer wear you down by keeping you waiting so you have spent time and feel committed.

Your idea of giving a higher commission on the oldest cars was genius. Well done !

perfect! Im shopping for a new truck this fall and know exactly what to ask for now.

Great video man. And I love how you talk about the cars as well.

I've never low balled a car I purchased, but I have to say this is an honest way for anyone that wants to shake on a fair deal.

Thank you great video I learned something today.

Thanks, that is an interesting strategy for the negotiation toolbox. I do doubt whether a dealer would disclose whether they have any "new-old" inventory. They would just deny that they have any and attempt to sell every new vehicle as "We just got this one in."

I'm from the UK and the guy who bought my house worked for British Leyland, they has fields of Morris Marinas that dealers didn't want. Employee's were offered them at a knock down prices that included a new hose and other perishable items kit. This to cover them having been standing for years in the open. He asked me to haul it back for him, I was not allowed into the lot, so he towed it out the gate with his MGB. Back home we did a fluids change, stripped out the brakes and rebuilt them, put 20 miles on the clock on a private road. He registered, taxed and insured the car, drove the thing fore 7 years, only having tyres/brake and service items. They were horrible cars but this one did what it needed to do and it came at about 60% of new car price.

Thank you Mr. Ray for your valuable insight. I'm in market for another truck as man totaled mine last Sat. This isn't the opportune time to buy, but have no choice. Your info will help me make best decision. Stay safe.

The "Modern" Auto Industry...Second only to the Government in Corruption..

You do a great job!!! Like you are a friend in my living room!

Hey appreciate the Great Insider tips! Whenever I've bought in the past from a dealer, whether it's a car, boat, rv or travel trailer, I wait for the fall to winter time of the year and they're really pushing the next year's models! And I actually use your technique, I tell them I want their oldest "whatever" from the current year or shoot, if they've got a basically brand new, last years model, I want to see that first lol sometimes you get the sales person who doesn't listen and wants to take advantage of your high credit score, or the monthly payment that the bank says your credit score will allow. That's not what I look for, I figure out what my budget and the max I will pay for the average length of a loan. Actually my personal finance department does lmao my wife! I'll be watching your channel for ALL Your Inside Information, thanks again!

I worked at a dealer that used the push/pull idea. As part of the car pack, either new or used, there was x amount of dollars that was allocated for the oldest vehicle which would benefit by lowering the cost of money in that vehicle.

Another way to find out how long a dealer has had a car for is to look at the state inspection sticker on the windshield. In the state I live in the date is printed right on it. Easy way to get a ballpark estimate when the car landed on the lot.

I like your videos very informative. May be looking for a 2021 Mini SE, if we ever get back to a normal life.

Good stuff Ray👍🏽 I’m subbing.

Back in 2013, I attended an auction of a Chevrolet dealership in NE Nebraska. I say several cars, including a 1984 Chevrolet Chevette with 285 miles that was never sold and parked out in a field. What a complete waste. It does happen. I also saw a small lot full of Daewoo Lanos and Nabiras that remained unsold when the brand was suspended. The dealer was a multi-brand group in Chicagoland that did not want to sell a product that could not be properly serviced.

Thank you! What's the oldest new car you have?

Great info, thanks!!

Great video lots of useful information, ill be in the market in a few months for a new car thanks!!

Thank you Ray God bless you and your family. This is helpful.

And all this time I thought it was the Car Fairy....well, I seem to have magical thinking every time I go to the dealership...

Something tells me to trust this guy but his salesman title won't let me.

I worked at a dealership that actually had 26 manufacturers in one small town. I worked at the building that sold Dodge Subaru and Suzuki. Every car that sold $100 taken off the profit for the Push/Pull Program. They take the $100 to pay down the cost of the oldest car on the lot. They did not lose money on cars that were old. They stole money from the sales persons commission. We sold 80-130 cars a month in that building. That is $10,500 a month that they used to pay down the cost of the oldest cars on the lot. I am not sure how many cars a month they would pay down, but they are not losing money. This dealership found a way to withhold or take money out of the salesman’s pockets every month. He is the largest car dealership in Doylestown, PA and now he is moving into Langhorne, PA. I tried selling cars for other dealerships and they all suck. It is no way to make a living.

A guy I know found an Aston Martin in a Winnipeg showroom for around $300,000. This was the year that 007 Casino Royale was in theatres, and it was Bond's car in the film, but this one was a convertible and Bond's was not. My friend offered them $130,000; they laughed at him but he gave them his number. Six months later they called him back. The closest place to get service on an Aston Martin is in Vancouver, which is half a continent away from that showroom. My friend, who lived near Vancouver, knew that and simply waited for the carrying cost to start hurting the dealership. Always buy low and sell high. If you can do that with cars, you've got a special kind of genius.

I’d rather go to the dentist.

I bought a two year old leftover promaster with 5 miles on the odometer the dealer forgot about on an off site lot. Saved $17k ! 😂

I always brought a new truck (Ford) from a dealer with a Fleet Manager, he gives you one price, you buy or don't buy, and have your own financing. You deal with a sale person, it's takes 4 hours to buy a new car, and you get tired of saying, I'm not paying that. And he say I'll go talk to my boss, and I say no, I'll talk to your boss.

The highway store dealerships in my area of New Jersey are bursting at the seams with hundreds of unsold cars.

That was really good and straight forward information

I am in the car business, this gentleman sounds legit and sincere.

Ray- thank you for this video. I like the simplicity and honesty of your argument.

We had a local dealer who owned several new car lots. He always paid cash for his new cars. I once saw a "new" F-150 that was about 2 model years behind. Since he wasn't paying interest he didn't have to steeply discount his vehicles that didn't sell quickly. I understand that's very unusual for dealers not to finance their inventory.

Pay higher commissions to get rid of older cars first? WOW! Genius!!

This is awesome 👏 Iv sold plenty of cars 🚗 and understand this video 😁 it’s good

Thanks for the great info.! 😃🙋🏼🚐🚗🚘🚙

Great info thanks. Looking to buy in a few months.

Hello! I just subscribed to your channel because I like the way that you explain things. It's easy to understand and digest and you don't drone on and on. You get to the point and I feel like I got a lot of good information shortly, sweetly and to the point. So thank you for that. I have a question related to this video. I want to buy an Acura RLX that is a 2019 model that didn't sell and the dealership is calling it "new" and still asking original MSRP on their internet ad. In terms of making a discounted offer, what's a good rule of thumb for where to start the negotiation process? Thank you and please keep these videos coming!

New sub. Good honest info.

FYI. I’ve seen some motorcycle 🏍 dealerships selling 2 - 3 year old bikes that were brand new. They call them (NOS) new old stock.

Thanks For the time you spent on video making .