Car Finance Managers EXPOSED Making $48,000 Monthly

One finance manager made over $48,000 and that money came straight out of your pocket. Today, I'm going to show you exactly how to stop that and save thousands the next time you buy a car. Let's first and start off like why do they push so hard? Check out this screenshot. This isn't from some COVID era fairy tale. This is from this year. $48,000 in one month. Real numbers, real paychecks. Most finance managers, as stated in this screenshot, make about 20 to 25 grand a month. So, you can see why

they fight for every sale. And I will tell you this, this dealership is a good friend of mine. He's an ethical person. He runs the company. They do a great job there. But they're in it to make money. And they are taking money out of your pocket every single time. Sometimes that's good, sometimes it's bad, but every dealership is different. And this is what a good dealership's doing. So, a bad dealership, they're probably making double. So, they're not stalling for fun. They're stalling because every

How Car Dealerships Make Money Behind the Scenes

Most dealer profits come from add-ons—not just the car price

minute you wait could mean more money for them. So, now that you know what kind of money is on the line, let me show you exactly how they do it and most importantly, how you can stop it. Have you ever noticed how long buying a car takes? Kind of forever, right? It's the number one talked about thing out there. This isn't bad service. This is strategy. Dealers use time to wear you down. The longer you wait, the easier it is for them to sneak in more profit once you're tired and just ready to sign and

get the hell out of there. So, dealers make money through what's called back-end products. That's things like extended warranties, gap, paint protection, tire and wheel, key replacement, all those extras they sell you in the finance manager's office. Now, here's what they don't tell you. Different banks limit how much of that stuff they can sell. Let's say bank A caps all the extras at $2,000, but another bank allows $5,000. They will stall until that higher limit bank approves a deal. Our approvals are

pretty instantaneous. I don't wait very long for approvals. Even in a little itty bitty store like mine, compared to a big Chevy, Honda, Chrysler, Dodge, Jeep, Ram store, Ford, whatever, they're probably even faster than I am. So, you can stop this instantly. It does take a little reconnaissance mission from you. As soon as you walk in that door, you have to pay attention to where your salesperson walks to, what office they go to, what person they talk to. That's going to be your sales managers, not the

finance manager guy. So now, what happens when you get into the car deal and you're all done and you're waiting to see the finance manager to give all your money to, sign the paperwork, whatever the case may be, you give it a few minutes and you walk in there and say, "Hey, how much longer is this going to take?" They hate that question. They'll say, "Let me check." They may disappear. They may pick up the phone. Whatever. What happens? You set yourself a threeminute timer on your phone and

Why Car Dealerships Make You Wait: The Time Pressure Strategy

Delays are designed to wear you down and increase dealer profit

watch who starts moving. Just watch so closely and see what happens. Now, when that goes off, you walk into the finance manager and say, "Hey, I'm ready to go. How much longer?" Whatever they say. Doesn't matter what they say. Reply with this. Cool. Hey, Siri, set a timer for 5 minutes. And when that happens, this puts you back in control. And you have to remember, whoever stays in control during a car deal always wins. And this has nothing to do with >> My Siri just started. Hey, Siri, cancel

my timer. >> It's canled. >> So, you have to remember this is with every negotiation out there. This isn't just car deals. This is every negotiation. Who stays in control is the one who wins. Some kids just need a little extra love this year. It's easy to forget that every family doesn't have the means to give their kids Christmas full of gifts. That's where we can step in as a community. Toys for Tots helps bring the joy back, one toy at a time. You can make a real difference by

hopping on Amazon, picking some fun, and shipping it right here to Mike's car store with the address you see on the screen. Every toy we receive reminds a child that people still care and that that matters. Let's make sure no kid gets left out of the magic this year. Tip number two, I talk about this all the time. Bring your own money or be prepared with your own money. You've got to get preapproved with your own bank or credit union before you walk into the dealership. This gives you power. There

is a convenience factor when you use the dealerships's financing. I personally like to use the dealerships financing. It's much easier and with the exception of going to like USAA or Navy Fed and not everyone can go to those. Most banks, it slows the car buying process down, which is bad for you because you're slowing it down so you can go get money somewhere else. If you can use that rate, great. But let them beat that rate or get comparable rate. You have to remember, it's not just the rate. You

have to compare the whole deal. A 1% difference on a $15,000 car loan is only a few bucks a month. And then most of us don't even keep our cars for that long or the loan for that long. So, you're talking a very short condensed time on how much you pay for your auto loan interest. So, don't stress out about your credit either. Since 2005, multiple auto loan pulls within a short window only count as one inquiry. There are going to be comments on this article after I say this comment. Your credit being

Why Getting Pre-Approved Gives You Buying Power

Pre-approval puts you in control of the deal—not the dealer

pulled does not affect your score. There's only five things that affect your score and credit inquiries is not one of them. There will be people trying to convince you in the comment section. It doesn't work that way. So, shop around, get your pre-approval, and walk in with some confidence. And you have to remember, everything in that finance office is negotiable. If they say it's only a few bucks a month, just stop them right there and ask for the real price. We sell products here at Mike's Car

Store. I typically only sell warranty and GAP. I don't have any other products available to sell. I tell people what it costs upfront. I don't hide any of that stuff. An extended warranty is usually going to run you around the $3,500 range. That's about $60 to $70 per month. If they told you, "Hey, it's only $15 extra dollars per month." That means they patted your payment earlier, so to make room for it. So, don't fall for that stuff. Ask exactly what something costs so that you know. And $3,500 is a

good deal. Everything's got transmission problems nowadays. A transmission can cost you anywhere from 5 to 6 grand to 10 to 12 grand. So, a $3,500 warranty is not a bad thing to do. And they'll typically show you a menu. So, make sure you ask for those itemized numbers. negotiate each one. If you want a certain thing, you can pick and choose. Just because they got four lines going across with their silver package, their bronze package, their platinum package, whatever they want to call it, you can

pick one thing out of there and not have to pick an entire package. So, if you just want gap insurance, just buy gap insurance. If you just want the warranty, just buy the warranty. But most dealers mark up these products anywhere from $1,500 to $2,000 over cost. And of course, that's after their dealership packs those payments as well. So therefore, there's a huge amount of profit in these. But don't be afraid to negotiate $1,000, $1,500 off the price of these warranties, about $400 to $600

off of any other products. And like I've told you before, at my dealership, we only sell warranties in GAP. We sell it for a fair profit, about 800 bucks, 500 bucks. And you can demand that same fairness anywhere you go. You just have to ask. Here's probably the biggest secret no dealership wants you to know. The finance manager's main job is not to sell you stuff. It's to protect the deal. That's what we're taught in finance school. If you get up and walk out, the dealership fails. The number

Everything Is Negotiable: How to Save Thousands on Your Car Deal

Negotiate every part of the deal to avoid overpaying

one job, protect the deal. You have to protect the car deal. Nothing can happen in a dealership when a car does not get sold. A car has to be sold in order to sell finance. A car has to be sold in order to buy parts. A car has to be sold before it can go into service. It's always about the sale. The sale is the most important process of the entire dealership to make the dealership function. So in the middle of the conversation, if you feel that you need to ask them, what's your number one job

here? They'll fumble for that answer because it's not something that a normal customer asks. This is what a very intelligent customer asks, especially when you watch myself. And they'll say whatever they want to say and like, oh, I thought it was protect the car deal and just stop talking. Silence flips the power dynamic instantly. The person who talks first loses. So, let them know that you're in control and get what you're trying to do out of them. I want the price. I want the payment. I want

the better interest rate. Whatever the case may be. And here's my level 500 IQ move. I love doing this with finance managers. Here's the smartest move you can make. You have to remember going back into the article. Everything is negotiable. Interest rate is negotiable. Products are negotiable. Prices are negotiable. Terms are negotiable. Everything is negotiable. If you like some of the products or you think that your interest rate is too high, you simply say this. I like some of this, but that interest rate looks high to me.

The Walk-Away Strategy: Take Control of Your Car Purchase

Walking away is one of the most powerful negotiation tools

I think I'm going to check with my bank and come back tomorrow. Boom. Instant control shift. Again, what's the number one job of the finance manager? Protect the car deal. You cannot get up and walk away. Time kills deals. They're going to panic because if you leave, they lose the deal. Suddenly, they'll find a better rate. Maybe half a point, maybe a full point. Then you start negotiating. Well, how much better can you do because my bank can do 2.9, my bank can do 15%, my bank can whatever the number is. But

no bank gives a better rate just for buying products. That's illegal under the Fair Lending Act. So do not let them sit there and be like, well, if you buy the warranty and buy the GAP and buy the key flakes, I can probably save you 1% on your own. And once they lower the rate, ask this question as well. What's my payment now with no products? Then if you want to add one or two backends, just compare them. You choose what's worth it to you, not them. This one move alone literally can save you thousands

of dollars. I've talked about this in other articles, too. Make sure you understand how to figure your own car payments. That is so important. You have to be able to do that. Don't let them do it. And remember, buying a car doesn't have to suck. Stay in control. Bring your own approval. Negotiate everything. And never let time or pressure make your decisions. Please do this. Drop a comment below. What's the craziest thing a finance manager has ever tried to sell you?