Money Rehab with Nicole Lapin - Insider Tips For Buying a Car in this Market with The Car Dealership Guy

Episode Date: August 4, 2025

Today Nicole sits down with Yossi Levi—aka Car Dealership Guy—for a no-fluff breakdown of what’s really happening in the car market and everything you need to know if you're car shopping. They unpack how the new Liberation Day tariffs are impacting prices, what’s still negotiable at the dealership, and whether used cars are feeling the heat, too. Plus, Yossi weighs in on viral tax hacks like the G-Wagon deduction and a new write-off in Trump’s latest tax proposal that could save you big. And yes, Nicole asks what he drives—because obviously. Follow Car Dealership Guy This podcast is for informational purposes only and does not constitute financial, investment, or legal advice. Always do your own research and consult a licensed financial advisor before making any financial decisions or investments. All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Public Investing, Inc., member FINRA & SIPC. As part of the IRA Match Program, Public Investing will fund a 1% match of: (a) all eligible IRA transfers and 401(k) rollovers made to a Public IRA; and (b) all eligible contributions made to a Public IRA up to the account’s annual contribution limit. The matched funds must be kept in the account for at least 5 years to avoid an early removal fee. Match rate and other terms of the Match Program are subject to change at any time. See full terms ⁠⁠⁠⁠here⁠⁠⁠⁠. Public Investing offers a High-Yield Cash Account where funds from this account are automatically deposited into partner banks where they earn interest and are eligible for FDIC insurance; Public Investing is not a bank. Cryptocurrency trading services are offered by Bakkt Crypto Solutions, LLC (NMLS ID 1890144), which is licensed to engage in virtual currency business activity by the NYSDFS. Cryptocurrency is highly speculative, involves a high degree of risk, and has the potential for loss of the entire amount of an investment. Cryptocurrency holdings are not protected by the FDIC or SIPC.  *APY as of 6/30/25, offered by Public Investing, member FINRA/SIPC. Rate subject to change. See terms of IRA Match Program here: public.com/disclosures/ira-match.

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and then select money rehab in the dropdown menu. So one of my girlfriends fell in love with this house and she was sure she could afford it. She had the down payment, she had the income, but when it came to pull her credit for her mortgage, oh, it was a brutal wake-up call. It sounds so obvious, but it hadn't really hit her until that moment. Her day-to-day spending habits weren't just keeping up with the Joneses, they were affecting her future. So she came over,

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The Chime Credit Builder Visa Credit Card is issued by the Bancorp Bank NA or Stride Bank NA. Chime checking account required to apply. Money added to credit builder will be held in your secure deposit account as collateral. And as your credit builder card is available to spend amount, this is money you can use to pay off your monthly charges. Out of network ATM withdrawal and OTC advance fees may apply. Late payment may negatively impact your credit score. Results may vary. Go to chime.com slash disclosures for details. I'm Nicole Lapin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Today we are getting under the hood of the auto market, so to speak, with the go-to guy

in the car biz, Yossi Levy, aka the car dealership guy. You might know him from your social feed where he spills insider tips and auto industry tea, but today he's giving us the ultimate pulse check. Like how have the new Liberation Day tariffs shook up the car market? Have used cars been affected too? Important questions these days. We're also talking strategy because whether you're buying, leasing, or just window shopping, there's a right way to navigate the dealership dance. Oh, and what a dance it is. Yossi also shares what's actually negotiable, how far is too far when lowballing, and whether that old myth about end-of-month deals actually holds up.

Plus, we unpack some of the buzziest tax breaks floating around TikTok these days, like the infamous G-Wagon deduction, and we decode a brand new deduction tucked into Trump's latest tax package that could make your new car purchase a lot more affordable if you play your cards right, of course. And I do ask him what car he drives because we had to know. Let's get into it. Yo, see, let me aka the car dealership guy. Welcome to money rehab.

Thank you, Nicole. It's great to be here. Great to have you. You are one of our most requested guests. So shocking. Don you, Nicole. It's great to be here. Great to have you. You are one of our most requested guests. So. Shocking. Don't know why. Here we are.

No. And don't say that sarcastically. We absolutely know why. You have your pulse on the car market like no other. Your content is dope. It resonates. It's really, really helpful. I have a thousand questions for you.

Let's start with the first. It's actually top of mind for me right now. I lost my car in the LA fires and have to go out in the car market and replace it too. So I need to pick your brain on that. I'm here to help talk. What's the market like? Like post-liberation day tariffs? How has this affected the market for new cars specifically?

So look, we had, go back to April for a second, right? There was a lot of pulled forward demand. The market with all the uncertainty on the macro level, consumers were rushing to dealerships and almost every dealership under the sun had a tariff sale or something, right? So sales came in higher in the month of April and subsequently in May. Coming to June, we started seeing a slowdown. Dealers started reporting that they're still getting foot traffic, but their conversion rates started falling, right? Anywhere between 10%, 20% from lead to sale, which is very meaningful in the dealership world, right?

A lead just being in customer inquiry. And that could signal many things to us, but it could also signal that people maybe are not in as much of a rush and that affordability is still very much impacting the average consumer in the market. Today as it stands, we're here recording late July, about to be August, the market, I would call it stable and pretty healthy, right? There isn't, we're not in any crazy spike period right now,

like we witnessed over the last couple months or even two to three years where we had these periods of really low inventory than really high inventory and kept going back and forth. Things are pretty stable. Average transaction prices for consumers, I say, notice I say transaction because MSRP, right, the manufacturer suggested retail price,

doesn't really mean much. at the end of the day. It's what does the consumer pay for the car? Cause there's rebates, there's discounts. Yeah. And it can go above, which I found out during the thick of COVID after I got into a car accident and needed to get a new car and it was above MSRP. I was like, what the heck is this?

Yeah. And you're not going to see that now unless you're buying some specialty vehicle, a Porsche 911. The point I'm trying to make is that transaction prices have come down. And if you look at the last two years, right, let's zoom out just a little bit. We're down from about 42 to 43 days of weekly income required to purchase a vehicle down to the high 30s, say 37, 38. The way you measure how expensive vehicles really are, weeks of average income that it takes to buy a car.

Because if a vehicle price goes up, but you're making more money, then you gotta balance that. And so if you look at weeks of income needed to buy a car, today it's hovering in the high 30s. At the peak, right, during the craziness where you mentioned the markups, we were at like 43, 44 weeks of income from the average us consumer And so the bottom line is that vehicle prices while they may have not come down significantly

People's earnings have risen over the last couple of years vehicle prices have come down somewhat and we're hovering in this state right now Which is pretty healthy and the market's moving pretty well. So overall, I'm pleased with the market where it's at today. I think there's better deals for consumers and dealers are also, they're not as busy as they were, but things are still flowing pretty well. That's crazy. I've never heard that equation, but it makes a lot of sense. It's almost like, how many months should you spend on a ring to propose? I guess we can use that analogy. you spend on a ring to propose. I guess we can use that analogy. So that's for buying cars with a loan,

buying cars in cash, leasing cars. So that's assuming that you're buying a vehicle, like purchasing with financing. Or I believe cash is in there as well, not leasing though, because leasing is a different equation. When you look at leasing, leasing has just completely been the big thing over the last 18 months and it keeps growing because leasing is the only way today for consumers to still get into an affordable payment. Most consumers

are looking for payments when they're shopping in the country. If you're listening and you're not shopping necessarily by payment, then that's not how most people shop. You probably have a little bit more disposable income. And so most people are shopping by monthly payment. Leasing continues to be the most affordable option, obviously because you don't actually own the vehicle. That's clear. And so leasing as a percentage of all sales is also rising, right? More people are leasing. You know there's that meme you may have seen on the internet. You will own nothing and be happy or something like that. The point is like that meme is like sort of coming to reality where leasing has been, has literally been keeping afloat the car business because people increasingly are leasing vehicles.

And you have to remember, these vehicle prices are still at astronomical, like near all time highs. And so yes, prices have come down a tiny bit, incomes have risen risen But we're still in sort of uncharted territory. And so leasing has been a very very big save here for the last year and a half uncharted territory visa via all the tariff hoopla because I feel like that's kind of come down the tariff stuff is interesting if you remember initially The administration imposed an immediate 25% then things started getting renegotiated then we got a 10% on the UK. Now we've got a tariff with Japan and we have the EU. These deals are coming in now.

But here, look, let's just talk about what this means for customers, right? I think all the smartest people I've spoken to in the industry that are in control of the levers, and when I say that, I don't mean the government. I'm talking about just dealers who are retailing thousands of cars, tens of thousands, hundreds of thousands in some cases. They all believe that the way this shakes out is vehicle prices will rise, at least a couple grand.

And it's not equal across the board. It depends where the vehicle is manufactured, the parts are sourced, but vehicle prices will rise. The trick with the tariffs is that it's not all equal, meaning it's not you tariff a manufacturer and it all gets passed on to the consumer. These supply chains are different, and some brands have distributors, some don't.

These supply chains, I mean, I'm not an economist, and I don't even think an economist could predict exactly how this will shake out. But I think what we can predict is that prices will be a bit higher no matter what across the board and that's going to hit the consumer to a certain extent. But remember, the consumer votes with their pocket. So if they're not buying that car, guess what? The manufacturer has to put more incentives on the vehicle to sell the car. And so all in all,

we're going to see an interesting balancing equation over the next six to 12 months. But I would expect that consumers do feel it a little bit. Dealers will feel it somewhat, and also manufacturers. Everyone will feel it to a certain extent. And when you say across the board, you mean electric, non-electric, I guess combustible engine, regular cars. It really comes down to where the vehicle is produced and the parts and there's the whole equation.

But I think what's important here is that you mentioned electric. Electric is in an interesting state because we have been in this period right for over many many years already I don't know exact count but for many years we've been in a state where electric vehicles were subsidized by the government and so we don't truly know where equilibrium is for electric vehicle market share. We are in the high single digits at this point. So let's just say close to one out of every 10 cars sold today in the country, new cars are electric.

Great. But remember, that includes lots of incentives. There's a $7,500 tax credit on new cars, the $4,000 tax credit on used cars that many people don't even know about. And so that has impacted sales and demand. I can tell you that dealers have been pushing used electric vehicles very heavily because with used electric vehicles, if the total sale price is under $25,000, the customer can actually get a $4,000 rebate on that vehicle if it's an electric vehicle.

And so imagine this for a second, Nicole, right? You're working with a customer that maybe doesn't have that much of down payment to put towards the vehicle, but suddenly you offer them an electric vehicle that has an expiring tax credit and you say, hey, you could buy this electric vehicle right now, get $4,000 towards your down payment, like literally free money from the government. I mean, who would say no to that? It's like unbelievable, especially when you don't have many options.

And so electric vehicles have been on a tear, primarily due to these tax credits, but we're gonna see in Q4 of this year, 2025, exactly how it's gonna play out. Once they're removed, what actually happens? And I can tell you that most dealers in the industry, the smart dealers at least, they don't care if a vehicle

is electric, internal combustion, I mean it can run on air for all they care. They care about what is good for the customer, meaning what will consumers buy, right? If you would buy a vehicle that runs on air, then I will sell that, assuming I can get that supply. And so that's where the industry is really trying to figure out where is the puck really headed? What's going to happen come end of September, electric vehicle incentives are removed. How is that going to impact the market? What other stuff in the big beautiful bill should we know about? Can you explain what the new auto

loan deduction is all about and how that's going to affect somebody in the market? The auto loan deduction is real and it's been well received By dealers and I haven't spoken to too many consumers on their opinion on it But I can't see why they wouldn't be happy about it The idea here is that if you purchase a vehicle that has some specifications of manufactured in the US or It meets certain criteria that you will get Deduction on your interest rate where Your interest will go against your taxes. It has about a $10,000 limit, and it also has an income limit

for someone to qualify for it, right? So not everyone can qualify for it. And so again, there's more specifics online, but I think the bottom line here is that it is some relief for consumers. It does incentivize manufacturers to onshore their production to a certain extent and to produce more in the US.

I think the downside is simply that I don't think it's going to be that impactful. Because when we ran the math and if you really look at the numbers of what if you take the max deduction on auto loan and you extrapolate that through how much you're paying for the vehicle and how it impacts your taxes at the end of the year. It was a very small number and about in the hundreds. Again, I don't have the math in front of me, but I think the point being that we ultimately, from our end, we don't think that it's going to meaningfully impact sales, but it's a great touch and I'm supportive of it because I think it incentivizes the right stuff and it helps

the consumer at the end of the day. So I think it's a good endeavor and it brands very well. I think people hear auto and deduction, US, it registers really quickly with someone to understand the benefit they're getting. Yeah. And therefore purchases made in 25, 26, 27, 28. So potentially could heat up. Are there specific brands that are getting the best values right now?

What's hot? what's not? What kind of car do you drive? So we're a three car household. So we actually share one car with my father who's here when he lives in two states. And so we have a Toyota Sienna. So Toyota Sienna is the ultimate family vehicle. Love that.

Before that, I actually had an Audi Q7. And so it was, we're like, hey, we need something more practical. So I'm just a big fan of this vehicle, highly recommend it, super reliable. It's not cheap, right? It's like the high end more expensive minivan. But if you have kids, it's frickin unbeatable. We have a Tesla. And so I like the Tesla because you get to really kind of see what Tesla and Elon Musk are building

is incredible. And you get to just experience sort of like the future of driving in a way. Not to say that in every sense, right? Like the vehicle itself is, the materials are not like high-end or anything. It's pretty basic, but I'm a technologist. And I think playing with the technology, self-driving, it's cool to see these things evolve.

And so that's been a fun experience. And we have a Cadillac SRX. And don't ask me about that because that was not something that I would buy or wanted to buy. It was one of those vehicles that just gets transferred through the family and sort of ended up with us. And so I can't say I overly recommend an old Cadillac SRX, but it gets the job done. So I'll tell you something, Nicole.

It's funny you asked that question because as a car guy who's been in the business my whole life, I've had the fancy cars. I'm the least interested in actual vehicle. I always say this, I host podcasts myself and people come on and they're like, oh, I love what you do. And I love cars. And I'm like, cool. I don't love cars. I love the business. I've always just loved the exactly the deal, the people, the business. And so it's, that's the funny thing here that like, I'm not, I'm just not, I haven't been that into the actual cars themselves. It's kind of like nuts and bolts.

It sounds, it's gonna sound very cold, but it's kind of like an asset on a balance sheet. As a dealer, you're here to sell the car. So the podcast specifically kind of makes sense, but I sort of just view it as a means of transportation. And that's kind of how I've been trained in this industry. My brain is already so used to that. So, all right, so let's kind of bifurcate that question because that's kind of how I've been trained in this industry. My brain is already so used to that. So, all right, so let's kind of bifurcate that question

because that's my personal situation. So we've three vehicles here. And by the way, those vehicles are, they're owned. And I don't know if I would do that today if I was buying a vehicle today, but that's the situation I'm in. In terms of the market. Is it a good market to get a Tesla?

I'm not sure. I haven't purchased one recently. I do know prices have fallen, especially if you meet certain income criteria. I would tell you it's a good market to buy an EV right now if you want an EV simply because you can still take advantage of the tax credit. So I can definitely say that. For Tesla specifically, prices have gone up and down with Tesla. They had this like historical event two years ago where their prices were super high from the COVID demand.

And then they had to reduce prices on new vehicles in some cases as much as 50%. And so people took a bath, right? Meaning they purchased vehicles that lost lots of value really quickly. Again, I can't exclusively blame Tesla for that because other manufacturers were in similar situations and have brought prices down to earth. Look at Chrysler for example, or Jeep. They also had these Wagoneers over

$100,000 for a Wagoneer and that has since come down significantly. So this pendulum swung in a big way over the last couple of years. As it stands today, EVs you can get great deals simply because you can still take advantage of the tax credit, which is real money out there. And other than that, I would tell you that historically the highest value has been sort of the Japanese and Korean brands, right? So think Toyota, Honda, Hyundai, Kia. Hyundai, Kia have phenomenal warranties. Toyota and Honda are just known for their longevity and great value. You just can't lose with these vehicles. So and listen, I think when it comes to,

if you're leasing a vehicle, as an example, I don't know if I would optimize for longevity, right? If I'm leasing for two to three years, maybe I'll take a Jeep, which has really great deals on it, because I know that I could just pay less and I'm not gonna have car for more than three years. So it really depends on your personal situation, but historically, I would say there's no doubt about it

that best value has come from the Japanese and Korean brands. And right now still the same if we're out buying a new car or a used car? Used car is a bit trickier yes these vehicles that I just mentioned do hold up really well and used especially Toyota and Honda. There's always these jokes you see these like 30 year old Toyotas are on the roads that are still running. And it just trickles all the way to the business side, by the way, where every investor wants to own a Toyota store. Every dealer wants to own a Toyota store.

Everyone wants to work at a Toyota store because it's the gift that keeps on giving. I mean, these things are so profitable and the customers love them, right? And there's a reason they love them. So Toyota was a little, they're a little gun shy of the whole EV game. They did not really invest much in EVs

like other manufacturers. In hindsight, they made a pretty good decision, but they are leaning more into it now. So I think you're gonna see some more electric stuff from that angle as well. But overall, the brand has just done phenomenally well. Hold onto your wallets. Money rehab will be right back.

And now for some more money rehab. So if you're in the market, maybe stop by a cheap dealership if you're looking for new and maybe a used Tesla. If you're in the market, I would shop in a couple of ways. If you're looking for affordability, I would look for best lease deals. I just think there's no reason to be overly picky if you're only keeping that car for two to three years

and you don't intend on buying it out. Start by shopping the lease deals and looking at the make and buy or the class that you're interested in. Maybe you need an SUV, maybe, depending on what you need, maybe you can settle for a sedan. But you start with what are the best deals out there? If you're looking at-

And what are they right now? Well, they're constantly shifting. Like I said, Jeep has really, really great deals out there. Hyundai has really great deals on its EVs, right? There's a BMW on its high line, if you're looking to lease in certain regions of the country, they're constantly putting out new deals, especially on the EVs.

Again, this is luxury, obviously, so we're not talking deal like 400 a month, but it just really depends on your personal preference. But I can tell you, conversely, you're probably not going to get a deal on a Toyota Grand Highlander or a Toyota Sienna, right? So just as it's important to highlight where you will get a deal, you have to think about where you're not going to get a deal. And what drives that, and this is the key to what drives deals in general, is supply. And so when you look at a chart of day supply on vehicles, it just means how much supply is out there in the market to fulfill demand, customer demand. Toyota, Honda, these brands are consistently, Porsche, which is obviously very luxury, they're

consistently on the low end of supply. And so there's just not enough supply to match demand. And naturally you're gonna see less incentives and fewer deals. If you really want deals, you gotta go on the higher end, right? There you will see Ford, you'll see Audi, you'll see GM, as I mentioned earlier, Jeep.

These are the brands right now that are have increasing supply and You're more likely to find deals with those brands because they simply have more to offer and they're putting incentives in certain cases in order to Stimulate demand so that's really how I typically recommend when it comes to shopping The other thing to note is about timing of the year We haven't talked about this but it's not just about what's the timing right now. And you'll typically also see deals where there's model year changeovers, right? So when you're going from a 25 to 26, a 26 to 27 model year,

the brands are gonna incentivize the older models so that they can sell them quicker. So that'll typically come up in the form of incentives, which also of course is very attractive to certain buyers who maybe I don't care about having the most recent model. I'm okay to sell for one year older, but I know that I'm getting a great vehicle at a better price. What time of year does that happen?

It's different for every brand. Let's say I'm looking at a Lexus, right? Or probably not a great example, but if I'm looking at a Honda, I can really track literally see on the website, okay, when are they releasing new models? Typically will happen like around the mid year, typically for the subsequent year. But you know, you just track when are they releasing new models as soon as new models are starting to hit lots for the type of vehicle that you're interested in. That's when you know, okay, older models are going to have to come down. And so that's typically how to track that But separately if you're less concerned about specific model You could also do the classic we say like end of month end of quarter end of year

Which really if you think about how a dealership works many manufacturers not all many have actually moved away from this But many put these things called stair step incentives, right? And so call it like monthly quarterly goals. they're basically giving you volume goals, bottom line. And so as a dealer, you're incentivized to sell volume. And that could mean that if I need to sell five more cars in order to get a big fat bonus from my manufacturer, then I may sell those cars at a loss at the end of the month or maybe end of the quarter

in order to clinch the volume bonus from the manufacturer. And so this is why historically you hear all these people that talk about car buying is like end of month, end of quarter, end of year, because those are the times when sales cycles are ending and dealers really want to hit volume goals in order to get their bonus from the manufacturer. And you can literally buy a car that a dealer loses a lot of money on simply because they're going to get a big bonus from the manufacturer. They want to hit their numbers.

Okay, cool. I'm glad you clarified that there's a super popular episode of This American Life where they talk, as you know, about the end of the month deals at the dealership that is real. So maybe optimize for end of month, end of quarter, like end of Q3 at the end of the month. I would say it can't hurt. Look, there are some that say now if you go end of year, like literally end of December, everyone is trying to do that and it doesn't actually work. But I

would push back and say, you have focus on end of quarter, right? Think about end of Q3 and just see what happens, see what deals you're offered. It's good to do these things remotely, right? In many cases, because most shoppers nowadays, I mean, 95% of shoppers start a process remotely, which makes sense, right? Who's not starting to shop for a car online? Like everyone is, unless you're living under a rock, it doesn't happen. It just doesn't exist. And so everyone starts remotely. And that's a great thing for the customer because and I actually think it's a great thing for the dealer as well, because it pushes dealers to be more transparent, which is great. It fixes the incentive problem and it lets the customer retain control throughout the early part of the process, meaning they can say, hey, show me what you have.

What's the best deal you can do for me? What number can you put on my trade? How much are you going to pay me for my trade? That's also really important. There's all these factors that go into the car purchase that you really want to shop and make sure you're getting the right deal. Starting that process remotely and seeing what deals are out there when it comes to these timeframes I just mentioned is just always a good practice.

Like calling them first before you go. Or going to one of the aggregator sites. Any research that you can do beforehand is just beneficial, right? Save the time Ask for the information upfront get real numbers and start working from there And you know what I've learned Nicole that the best dealers they promote that they realize that's how consumers shop And those are the dealers that should be earning your business Anyways, we talked about the best versus the worst at the end of the day Those are the dealers that you want to work with and there will have staying power and continue growing. And so you want to do business with these types of dealers where they're transparent and you're able to really engage them before

the purchase. The other thing while we're on the topic of car shopping that I think is really important and I've advocated for this for a while is something that's just simply involves looking up the dealership before you come in but seeing specific names of salespeople and here's why this is important because the way a dealership works remember you have a fixed sales force that is handling a floating or variable customer base so maybe in the morning I have 10 salespeople and two customers but in the morning I have 10 salespeople and two customers, but in the afternoon I have 10 salespeople and 20 customers. You don't

want to be customer number 20. That is not a good thing. You want to be customer number one, two, three, four. Exactly. And so the best way to do that is if you in advance, you Google the dealership and you just look at the names of who are the top salespeople. It's not that difficult, right? You will instantly see patterns, right? Ah, Nicole's mentioned like 10 times in the last 30 reviews. She's clearly very, very good at what she does. Email her, right?

It's on the website. Meet the staff, whatever, email her or call the dealership. Say, I need her email, email her, call her, whatever. But the point is work with her because you know that you're going to get a professional who clearly has lots of business, is generating lots of demand, and you will simply end up with a much better experience because no matter how well rated a dealership is, your experience will vary depending on the person you work with. That's how it works. So you want to work with the best person.

That is the way to do it. Look up the person in advance and work with them. And I guarantee you will have a much, much better experience than you'll expect because you're going to get a true professional. And there's a reason why they have so many good reviews from people because they've done a great job. What's your favorite negotiating practice

once you find your person? What is actually negotiable? And is there a thing as low-balling too low? So that's a good one. All right, so there is a thing as low-balling too low. I think you can really repel a dealership if you go too low. And look, too low is subjective, right?

I don't know the price of the car, but I'll give you an example. If you're looking at a $20,000 car, and then you come and say, I'm gonna offer you 15, vehicle margins are not 25%. It doesn't even make sense. Like math, it just doesn't make sense. Now, if I've held that car for a hundred plus days,

sure, maybe I'll take a loss on it. I will. Maybe I'll sell for 18 or who knows how much, but you have to also be realistic, right? Margins on these vehicles are Low double digits high single digits like 10 percent 8 percent 5 percent. It just depends on the car So you don't want to be that person either because I think to a certain extent you're not gonna be deemed as serious You don't waste someone's time and they don't want to waste theirs and vice versa What you should do though is if you do some well research and you know that you know

You've determined that 19 is a fair market price or a market price or something, then yeah, come a little bit lower. Why not? Come at 18, come a little bit lower. It doesn't hurt to come a little bit lower where you're signaling serious interest. So that's when it comes to making an offer. And by the time you're at this stage, you should be very well educated. You've done your research.

You know what's going to be more or less the ballpark range because all the research is out there and it's free. You can literally go on websites, Google car shopping. I mean, Edmonds, cars.com. You have all the info in the world. But then there's a couple other things that are really, really important in car purchase and that is financing.

If you're financing with the dealership, that's beneficial to the dealership, right? The banks are potentially giving them incentives for that. They're earning for that, right? And so that is value that you're providing, and that could be baked into your overall negotiation. It doesn't have to be baked into your overall negotiation upfront, right? You maybe just first negotiate the price of the car, and then maybe you talk about, if

I finance with you as well, what else can we do there? Financing is very valuable for the dealer. Not always, but it can be. And so you should definitely ascribe value to your decision to finance with a dealer. And then third, and this is one of the biggest ones that you should keep in mind, is your trade. Dealers need inventory. The used car supply shortage is worse than it's been in a very long time It has not even close to recovered since kovat and so dealers will do anything for quality used inventory They cannot find this at the auctions, right? They can't find quality use inventory at auctions because they can find inventory But it's really tough to find quality and when you do find quality you're paying an arm and a leg and you're paying to

Bring it to your dealership. And so if you, once you land on a price of a car, can also add a trade to that deal, you've now added a lot of leverage because you've given the dealer the opportunity to double dip. Think about this. They can make money on the sale with you, and they can then take your trade and resell that and make another 10% or 15% or whatever they're gonna make on that specific vehicle. And of course, I'm assuming FNI as well,

which is the vehicle service contracts, the added products essentially that you buy when you're buying a car. So the point I'm trying to make is that your trade-in is arguably one of the most valuable things you can offer in a deal. And you should know that and you should use that accordingly

because dealers want your trade and that could be very, very beneficial when you're doing a deal. Such good advice. So good to remember. Josie, before I let you go, I have to ask you your opinion about the G-Wagon tax deduction, the Range Rover deduction, that is all the rage on TikTok. What are your thoughts about it? Is it actually something people can and should use?

Is it a reason to buy a G-Wagon or a Range Rover or a 6,000 pound car? Well, you just said it yourself, right? You're talking about, I believe it's a section 179 and the IRS tax code, which I am not an expert on by any means, so please double check everything I say. But every dealer knows about this, right?

The IRS tax code that basically, if you buy a vehicle over 6,000 pounds for business use, you can get a tax deduction with the new bill that just passed from the new administration. Now you can get even more depreciation against your taxes. Believe it takes it back to 100%. So it's very meaningful, the savings. The key here is that it needs to be for business use

for certain percentage. Yes, that's really important. Yes. Yeah, that's really important. You can only do it if you use it for business for more than 50% of the time. Exactly. And look, I think TikTok loves just this stuff,

like it looks glamorous. And so people love putting it in the spotlight. Do people take advantage of it? Of course, it's why some of these big trucks fetch crazy dollars because people are Baking in a tax write-off as part of that purchase, but just be smart, right? Don't let the tail wag the dog as I like to say don't just buy I read one of my buddies posted a tweet about one of his clients. My buddies like a tax guy

He's yeah I have a client that has like six Ford F-150 Raptors or something in his driveway and asked him why do you have so many? He's oh I buy one every year with the section 179. That's you don't want to be that guy. So don't let the tail wag the dog. Cool. So there's a deduction. Do you need the vehicle? Do you want to spend this amount of money? You're still shelling out serious dollars. So just think wisely. But is it real? Of course it's real and people take advantage of it. And it's a big part of the reason why you see so many of these on the roads. Yeah, definitely don't let the tax deduction wag your finance tail or whatever. Don't do anything for a tax deduction period

in the story for sure. Before we really, really let you go, any final tip that you didn't mention today that listeners can take straight to the bank? I think final tip is simply that there's never been a better time to be a car shopper in the sense of that you have choices, right? It's no longer roll down the street, buy from the local store. Now it's you have the local store, the regional store, the national store, the online only store. There's so many options. I think there is zero excuse for someone to buy from like a bad dealer nowadays, right? You can do the research, right? Find a couple local ones to see who's rated the best, who's got the best employees. I mean, it's really publicly visible and buy from

the best dealers, right? Give business to those places, let them earn your business so that they can grow and be stronger. I just believe that we're gonna continue seeing this rising tide in the car sales industry because the internet has completely changed the game in a big way. Consumers have options and transparency is simply king nowadays. Let the best dealers earn your business. Now I hope that some of this stuff was helpful.

And transparency be queen too? Transparency can be queen. It can also be prince and princess. Money Rehab is a production of Money News Network. I'm your host, Nicole Lapin. Money Rehab's executive producer is Morgan Lavoie. Our researcher is Emily Holmes. Do you need some Money Rehab?

And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at MoneyNews and TikTok at MoneyNewsNetwork for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.