The Worst Car Buying Cities In America The United States is home to some of the worst cities in the world when it comes to buying a new vehicle. These are cities that have more regulations, headaches, and games than any other city could possibly imagine. Below will be listed the top 5 states for buying a car!
If you want to buy a car in California, expect a 10% tax on the purchase price. That same car might cost you $10,000 more than it would in another state.
Beware of Fake Pricing
In California, you’re going to find a lot of fake pricing. Car dealers will show you a low price on the internet and when you get there, they’ll add all kinds of additional fees onto your bill making it much more expensive than advertised.
This video explains all of the Fake Pricing scams you need to know!
We get it New York; you want to keep your public transportation clean and ensure that your city’s air is new-car free.
However, that doesn’t mean you should be paying an average of $1,500 more in taxes than the rest of the states in the Union.
In New York, if you’re trying to trade in your old car for a new one and your current loan doesn’t fully pay off your old car, they still tax you on the balance of the loan.
Vehicle Identification Tax
Vehicle Identification Tax (which is required in most states) is $65 dollars in New York but it gets even worse.
According to NY.gov, you can also expect to pay between $15-$300 more depending on the year, make, and model of the vehicle.
Typically the dealership pays off your car loan in about 10 days!
So make sure to follow up with your account and make sure your car loan is paid off in full before you head out to trade it in.
Carvana actually is one step ahead and they will email you a follow-up email within 24 hours so you can actually go back and follow up with your Carvana account manager to make sure everything has been taken care of.
If you’re planning to buy a car in the Northeast, be prepared for low trade-in prices as well as fake pricing ads that inflate your final bill by thousands of dollars.
Texas is the biggest state in the country and also sells the most cars in the country that they always say that everything’s big in Texas; including the games, the dealerships play!
Down there it’s another state that I sell a whole lot of cars in and one of the biggest things I hear from consumers is hey they’re charging me MSRP or over MSRP you guys know how to deal with that!
Texas is really big on addendums those rip-off stickers with all the high-profit low value to your items anything on that ripoff sticker.
Especially if they’re on every single car, don’t pay one thing on that now!
If there’s a specialty truck that’s lifted it’s a different story!
If they got one or two items out there go find a different vehicle and get that without that addendum!
Mailers are once again quite popular in Texas, so toss those awful ones in the garbage can. We don’t need a free automobile or trip to Aruba or whatever the case may be!
Don’t go to a dealership if they’re doing a mailer during the period when they’re giving away free stuff. If you come in and realize that it’s for the mailer, turn around and walk out; “hey, are you here for the mailer?” “Nope,” then leave is the greatest thing you can do!
Let’s talk about this one I got over 600 videos on youtube I’ve brought this up in one video and that’s called leg!
So what a sales manager will do with the salesperson
the salesperson usually doesn’t know this right!
They’ll put the leg in your payment if you should qualify for a three-four five percent interest rate but they send the salesman out there with a nine and ten percent interest rate!
They will proceed to say “oh, it’s just bigger on average until we get it to the bank.”
uh we won’t know the interest rate this is just for informational purposes only but your payment will fluctuate somewhere in between that $10 range!
The leg is set up for those weaker finance managers in the rear who will sell you a warranty, paint protection, gap insurance, and paint.
If you don’t agree, they’ll go away. Great news! You’ve accepted this payment right here. I can sell you the warranty, the gap, and the paint protection for just two more dollars per month now that you see how legs work They’re attempting to push you over rather than charging you an extra 40 or 50 each month it’s just two dollars more.
The leg is in Texas quite popular they love it!
Anti-Consumer Regulation – Texas State Law
In Texas, this is a state law and it’s an anti-consumer regulation. This just goes to show that in Texas, third-party businesses like CarGurus TrueCar Edmunds and Kelly Blue Book are not allowed to inform customers that a car is cheap, fair, or bad!
This is market data so they can’t tell you that there’s a price saving, they can’t tell you that it’s a price drop, they can’t tell you that it’s price over the market, under market, fair value, excellent deal, and whatever the case may be!
It is AGAINST THE LAW in TEXAS to tell you those things!
That gives the dealerships the upper hand and gives you a behind-the-eight ball approach to when you’re buying a used or new car all right!
In Hawaii, the dealerships are a lot more competitive. They don’t have nearly as many used cars as they do in all of the other states so there is not a lot of room for the prices to fluctuate.
Also, quite popular in Hawaii is what’s called a “donation”. So how it works is you’re going to go to the dealership, you’re going to find a car you like, they’re going to offer it to you for an MSRP or slightly above.
You have limited inventory dealers have the upper hand yes so if you want to buy a car maybe look into the mainland!
The mainland will always have more inventory available and shipping a car from Louisville Kentucky to Hawaii Oahu because you’re probably looking about $3,000 to $4,000
If the car you are looking at is priced at $4,000 or $5,000 dollars higher than the mainland your best option is to ship the car!
Florida is infamous for a few things:
High Doc Fees
I want to talk about the very first thing and that’s those High Doc Fees
We’ve talked about doc fees in the past they’re tough to negotiate, they’re tough to get around, but just be leery that you’re gonna come into an $800 or $900 fee in the state of Florida!
This is what will make Florida dealers furious with me right now, telling you this secret: This is a significant rip-off on car purchases in the state of Florida, and that’s the Electronic Filing Fee!
Electronic Filing Fee
The electronic filing fee is $99.95 and must be paid by the dealer. This charge isn’t for anything more than a profit, so don’t pay any more than $100 for it! Anything extra is a con and a rip-off.
Obviously, just like the other states, Florida is enormous!
We don’t have to go over it and this is very odd for us as many automobile salesmen deceive buyers about the vehicle’s condition.
I don’t understand that!
The yoyo loan is when you come in sign all your paperwork know what your payment is going to be!
They send you off in the car and then they yo-yo you back in and say oh by the way we need another thousand dollars now the interest rate is changing your payment’s wrong loans are 100% fraud!
I’m telling you Las Vegas is the worst place in the country city-state town municipality to buy a car from!
Vegas dealers know what they’re doing so first and foremost you have to really work your deal in las vegas!
King of Cars
Just look at the show King of Cars! That was real! They weren’t acting, maybe just a little bit of acting, but that was happening before the cameras were on that dealership lot!
Let’s entice you!
Hey, you’re interested in a free trip to Las Vegas.
We’ll get you airline tickets and a hotel; you still have to pay for it.
They aren’t handing out stuff for free; go buy an airline ticket and a hotel!
Expect that the finance manager put all of It on you so they can sell you every piece of product they possibly can.
100% of the time they all over promise and underdeliver!
They don’t do any follow-up, so if you ask them to do something, don’t ask them to do anything; they won’t.
High Employee Turnover
Also, because of its fast-paced nature, it’s subject to frequent personnel changes and turnover in management.
I have a lot of vegas people; I have a lot of Nevada people who follow my YouTube channel!
They leave comments about salespeople and managers that haven’t been there more than a month!
Now, I want to be clear: while there are far more excellent dealerships than those that are bad
Don’t expect it from every single dealership you walk into!
I’m giving you this information so that you can protect yourself against the sharks and other unscrupulous salespeople who may contact you on social media or try to sell unnecessary services.
That way you can be well prepared and if this does come up you have a game plan and the best advice that I can give you is you watch that video series right here and this video right here is really important as well
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You can now find me at my own dealership in southern Indiana. My wife and I started Mike’s Car Store Located in Georgetown, In. Where Buying a Car Doesn’t Have to Suck™
If you are in the area, stop by and see us!