00:01.38 archpodnet Welcome back to the crm archeology podcast episode 248 and we're talking about cars vehicles and stuff like that before we get into some actual vehicles Doug had a point on financing which we all need to think about. So. 00:15.27 Doug Yeah, it was ah it was one of my couple of random points. Um, and one is like if at all possible. Do not go with dealer financing. Um I mean we're talking use cars here so you might be able to afford it just you know, have you know. Maybe 5 grand or something or 10 or it depends on your budget but absolutely do not go with like dealer finance. Um I mean this was well now like fifteen years ago but it was like two thousand five six were my coworkers. She went in to get a used car and I think the value was maybe like 10000 wasn't it was a pretty new car but like when she signed the papers and did the financing she she was going to end up spending like 30000 imagine like 30000 on a vehicle. Ah, used vehicle. Um, you know fifteen seventeen years ago it was it was insane I mean that would be like the equivalent of like almost like ah spending like 50000 now. Um, but you have to look at those terms and stuff and usually most dealer financing is the worst possible thing you can do. Um, go to banks go to other specific like car financing um organizations yeah credit unions. Yeah, all sorts of just I think my number one advice be never get a dealer financing because by the time you actually like. 01:34.47 Andrew Credit unions are really good for that. Um, yeah. 01:46.97 Doug Pay it off. It'll be 2 or 3 times what you would have paid if you just like paid cash or or you know just gone to your credit union or anything like that I know if you guys have other experiences with that but it was it was horrendous. Um I think we eventually got. 01:56.89 Heather But don't get. 02:05.54 Doug It was quick enough and we caught it that she was able to return the vehicle. But if she'd weighed like another week or two. Um, she by the law of the state. She basically would have had to pay 3 times what the car was worth um and it was horrendous. 02:17.90 Heather Yeah I would say that when you're going in and you're negotiating. Don't tell them right off the bat. Don't tell them that because they're going to give you different prices. So just you know, kind of hold some so information close to the vest. Don't tell them that that's what your intent is. 02:19.92 archpodnet Wow. 02:26.44 Bill White Yeah, yeah, yeah, yeah. 02:27.36 archpodnet Ah. 02:28.00 Andrew Totally. 02:37.30 Heather Get their bottom price Really you know haggle and then you can spring on the fact that I'm I've got my own financing. 02:40.43 Bill White Um, ah. 02:44.64 Bill White Yeah, and this you know this is a huge thing too. Heather I'm glad you brought that up I'm glad Doug brought this up too because like buying a car is not like buying pretty much anything else in our society I mean it's not even like haggling at a market. You know when you're in a tourist city or something like that. It's something totally different. Because if you have an old car you're haggling for the trade in value if you are buying the car you're haggling for the value on the car you're trying to buy and then you're also haggling on the finance and all those things are going through 3 different channels right? The salesperson that's the 1 person who's like you know, kind of like the the you know. Ah, apprentice or whatever that's trying to sell you the car and so their motivation is to sell cars because they most of the time get a commission. Ah, after that the the person who's the manager. The floor manager is usually a higher level. Salesperson and so they know the company's goals and the dealership's goals on sales and what they need to get and how much they paid for the car and so there also they get a commission on all the sales that all the salespeople do but the finance officer is the final leg. They're usually the more further along salesperson. You know they've made it from the management floor and and their deal is to get a deal. You know they get deals with the bank for selling you financing and so they want to make sure that they you know do the right thing for themselves and so it's 3 different levels and each person is trying to take advantage of you. 04:12.52 Bill White And you're also trying to take advantage of the fact that they're greedy so they want to make a sale. They don't feed themselves if they don't make a sale and you're the one who's the sucker that they're trying to reel in so at every single step of the way just like ah Doug saying pay attention to the financing because once again. That ah finance officer they're trying to make the money for themselves. Ah, Heather's exactly right too. Don't tell them you're going to pay for it yourself until you've haggled it down because they will mess with the numbers. They'll change it after they find out that they're not going to get money off of you selling the the loan to you because if you think about it you know they. Ah, they can make up some of the money they cut off the price of the car and the money they give you for your trade in if they give you a whack financing deal like Doug's talking about. They can get that back because the bank will give them a deal for you know gouging you and getting you a higher interest rate in these these payments. So you want to negotiate your trade in you want to negotiate the price of that get it all in writing and then pull your checkbook out and say oh by the way I'm just going to pay cash for this right now which means you took a loan out from your bank or secured your own money after at that point they might scramble. They might try to backtrack but then of course they know that that can happen at any step. 05:15.66 Heather Um, very great. 05:25.44 Bill White So don't feel sorry for them if they if you you know they're all of a sudden staggering and like you know going around and trying to put on you know extra. Ah you know repair plans and this and that and sneak little things in at the last minute that they didn't say anything about so you got to pay attention like this is this is if if done well, it's a multi-day. 05:44.33 Andrew You right? this This isn't yeah yep, yep, No yep. 05:44.84 Heather Get very good. Yeah, very yeah. 05:45.27 Bill White Saga. It's multiple of fighting back and forth. It's talking on the phone. It's to it's standing walking out. It's going back ends. It's all performative and it's pretty stressful and there's no joy at all in it. But at the end you get a car. 06:01.54 Heather Very quick point because I know that we do actually need to talk about vehicles and the type of vehicles here. But the best experience I ever had ah with purchasing a vehicle. My My husband's the one who actually did the majority of the beginning work or actually did all of it and that is. Ah, you can do a lot of this negotiation online. Do it before you even walk into the dealership because they're still trying to make sure that you walk into the dealership. So if you can get all those details done ahead of time so you basically just walk in and seal the deal.. That's the best way to do it because. They they prey on the fact that you're in there and that they're going to make you feel guilty for leaving and that they're going to pressure you. But if you do it online you so they still don't have you on their hook yet and so I think that was Genius on my husband's part and it really did work. Well we got a very good deal. 06:55.80 Bill White Yeah, they're not doing that anymore Heather because of you yeah because I'm trying to do it now I'm trying to do it right now for an ev and they're not doing that anymore. They don't give you numbers anymore over the internet. They won't give them to you on the phone either. They want you to come in and report to service. 06:57.21 Heather Because of it. Oh really? Oh really. 07:00.80 Andrew Craft. 07:00.32 Doug Um, okay. 07:07.50 Heather Oh really, my snake corrected Oh interesting. 07:13.86 Doug Yeah I mean it's it's been a bit weird the last couple of years with like use cars and stuff. But um, ah, 2 points 1 is like Heather's point was huge on. Don't tell them you have financing because okay so this doesn't cover like every business model. And cars but essentially most dealers they actually they don't make any money selling cars. They make all their money on the finance so they would be willing more willing to cut 500 off or a thousand or whatever off the price of the vehicle because to them. It doesn't actually matter that much. Um, they all. Pretty much in almost every sense. Um, all the money you make they make off of cars is made off of financing um actually like it's weird like car car dealerships are actually banks that kind of give you a ah car. Um, as like ah a tote bag or something as like a gift as as part of the process for a loan. Um, that's that's like how they all work and again the last couple years have been weird, but ah I think we haven't mentioned this but reason you should always buy used is because cars in general. The last year was weird where you could actually resell your car for the value you bought at but usually as soon as you drive it off the lot. You've lost a quarter to like half or a third of the value of the vehicle like as soon as you go beyond like that twelve miles that are there from it driving around from like. 08:45.91 Doug Test drives and wherever as soon as you drive it off the lot. It's one of the only assets that essentially instantly loses so much like you know if you if you just spent 30 or 40000 instantly the moment you've bought it. You've actually bought something that's $10000 less than what you paid for it. 09:04.88 Andrew Yes, um I I would never I would never think of a car as an asset like it's not. It's not assets. It's a tool. Um, so it. 09:05.38 Doug It's a really weird thing where it used. 09:14.95 Doug Yeah, but like even if you're going buy like a power tool. You're not losing a third of its value as soon as you've taken it um out of Kmart or or Target or or you know wherever store you've bought it from usually if it's brand new. You can go on ebay and sell it for. 09:18.82 Andrew No, of course that's how. 09:28.52 Andrew Um, yes, right. 09:31.47 Doug Pretty close to what you bought it for whereas a car if you buy it new. You've pretty much lost a third of of the value that you maybe ever get out of it. 09:39.88 archpodnet Ah. 09:40.70 Andrew Yes, why I almost never buy new if I can possibly help it? Um, but I guess we want to talk about actual cars in ah yes, okay, you do it? yeah. 09:43.47 archpodnet Okay, but well well hold on hold on hold on I got a point on that because it's always been kind of a sticking point for me. Yeah I've I've been regarding buying Brand new cars right? I've bought I Guess a couple of I bought a couple of brand new cars right? And and. 09:56.23 Andrew Death. 09:56.79 Bill White Ah, but. 10:02.37 archpodnet Most of us I would say are most of the people listening to this are probably the kind of people that are going to probably run a car into the ground I would assume right? So you know and I've done that um except for my Tacoma I only got rid of that because I mean I just still have that damn thing but I had to get rid of it because I couldn't toe it behind the rv. So. 10:08.30 Andrew Right. 10:19.69 Andrew Ah. 10:20.40 archpodnet Sold it for a pretty good price though even with like one hundred and fifteen thousand miles on it because you know hold its value. So there's 1 thing there buy a car that has a good resale market and then it won't lose as much value but look at at the idea of a car losing half its value or a third of its value when you drive it off the lot. Yes, okay, that's true, but you still just drove a brand new freaking car off the lot that doesn't have anyone else's problems has a dealer warranty probably has free maintenance for the next three years and has all those things and if you keep it for at least 7 years like you're probably going to do then it's going to be. Down to the value you're going to sell it at anyway. So who cares if it loses that value unless you plan on selling it within six months of buying it. That's a dumb idea. But if you plan on keeping it for a little while who cares if it loses that value get all the benefits of a brand new car that nobody's had a chance to mess up so factor that in. 11:01.90 Andrew That's right? yes. 11:10.15 Andrew Right? I know I think that's extremely fair right? I know people who do that too. Yeah and that's a great That's a great deal too. No um. 11:12.22 Bill White Um, I'm a fan I'm a fan of the one year old I'm a fan of the 1 year old the 1 year old car. 11:13.60 archpodnet Um, yeah, yeah, yeah, yeah, yeah, yeah. 11:24.17 Andrew Ah, Chris you bring up an excellent point though there is something we said for new cars. Obviously you know it is nice again. It starts every time. Everything's new. The only problems with it are your own that you've created you know? So um, it it is awesome to have that and it it is true that yes if it loses its value off the lot. It's okay, a couple years in you know. 11:27.20 archpodnet You. 11:41.59 archpodnet M. 11:42.14 Doug The. 11:43.38 Andrew But ah, but for archeology man if I'm an if I'm a CRM archeologist for a car I'm not buying new. You know. 11:47.94 archpodnet I hear you I hear you but get it depends on the vehicle right? because we talk about going to talk about cars. That's why I bought my Tacoma I got this huge project that my company never does like I got this like you know $400000 project and I knew we were going to have to rent. 11:48.92 Doug Also like. 12:04.58 archpodnet A couple of vehicles because I just don't have a fleet of vehicles. But I also knew that my toyta Prius probably wasn't going to cut it in China lake naval weapon center so I bought brand new ah toyota Tacoma and in fact, the way that I did it as I I messaged my um, the person who's the dealer at the total place where we actually got the Prius a while back. 12:06.54 Andrew Right? right. 12:24.66 archpodnet I messaged her on Facebook and I was like I wanted to coma I want it to be this color and I want to have all these options and I was like let me know when you've got it on the lot and so she they like sent a vehicle out for me. They actually came and picked me up in the Tacoma and then brought me back to the dealership and ah. 12:30.22 Andrew Wow. 12:41.41 archpodnet and then I and then I bought it and it was all pretty much cut and dry. But you know the thing is I bought that four CRM and when we're going to talk about vehicles I mean I yeah sure I got some desert pinsriping on that. No problem. Um I had a crew member driving it and smashed into another car in the parking lot and busted out the taillight you know things like that happen. 12:48.48 Andrew Ah, ah. 12:54.54 Andrew Oh yeah. 12:59.91 archpodnet But it's okay, that truck is still a beast and I still sold it for $22000 with one hundred and fifteen thousand miles on it is a six year old vehicle which is not that bad. So. 13:05.12 Andrew Yeah, right? No, that's that is that is a um, it's a happy story. That's a happy story in a world of pain. Um. 13:14.73 archpodnet Yes. 13:16.56 Doug And I would also like just to say like I completely agree with Chris is when you buy new you're not, you're not buying other people's problems. Um, which is a good thing I think something we should raise though is it's it's a bit higher risk and that like so. 13:29.61 archpodnet Yeah. 13:33.64 Doug You know if you're buying new I I don't know Chris maybe maybe CRm's been very good to you but like you know, a nice new truck. You know, um, obviously you you were able to do that for a project and you had the money but for your average tech or whatever you're probably going to have to do some sort of financing. Um, so and if you do. 13:49.51 archpodnet Sure Oh I finance that yeah. 13:53.55 Doug Yeah, and if you do then? um, it's it's fairly risky for the first couple of years because essentially potentially you could owe more money than what you would ever get back? Um, if you know if you're able to run it for years and years you're going to make that money back or you you hit that point. But I think um. Buying new people should be aware that there's it's a bit higher risk because if for some reason I know you chain jobs or you know you need to sell that vehicle or something goes wrong and you need to sell it. You could be selling underwater where you'll owe more money on it than you'll ever be able to sell it for. 14:27.18 archpodnet And it's worth yeah. 14:30.41 Doug Um, so I think it's it's something that people should be aware of when you're buying new is um, you're not buying other people's problems but you are the tradeoff is um, you know if you are forced to sell it within a couple of years you could be in some financial trouble right? there. 14:46.65 archpodnet Right. 14:47.85 Doug On top of what I'm assuming is if you're having to sell it early. You're probably in financial trouble. Anyways. 14:52.00 archpodnet Okay, well I think with that. Let's take another break and then we'll come back and actually talk about cars in segment 3 back in a minute. 14:56.96 Andrew Sounds good.