DO NOT SIGN THESE DOCUMENTS (Do This Instead) - Kevin Hunter the Homework Guy
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- Опубликовано: 26 мар 2025
- Car Buyers MUST know which documents they do not sign when buying a car from a dealership. Car Dealers use scams in their car contracts and paperwork routintely, and Kevin Hunter The Homework Guy is here to give you the top 5 to avoid.
Car dealerships use every piece of paper to extract more cash from you, manipulate your financing, or protect themselves from legal trouble if they do something unethical to rip you off. If you’re not careful, you could end up:
Paying for add-ons you didn’t agree to
Giving up your right to sue them
Getting stuck in a bad financing deal
Signing away valuable consumer protections
Now that you know WHY they do it, let’s talk about what NOT to sign when buying a car.
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1. The "Arbitration Agreement" - Don't Sign Away Your Rights! Again… Watch out for The "Arbitration Agreement" - DO NOT Sign Away Your Rights!
The Arbitration Agreement is first on the list because it’s a very huge deal, and more and more dealers are pulling this stunt. Why? Because when they get sued, they almost ALWAYS lose the lawsuit, and they lose BIG! The Arbitration Agreement might be tucked away deep in the paperwork, often disguised under legal jargon.
2. The "Additional Add-Ons Agreement" - Extra Expenses You Never Approved
This is one of the dirtiest tricks in the book.
What It Is:
A document that sneaks in expensive, unnecessary extras, like:
Extended warranties
Paint protection
VIN etching
Gap insurance
Pre-paid maintenance plans
Why Dealers Want It:
These add-ons have huge profit margins, sometimes 500% or more!
They inflate your loan amount, meaning more interest for them and the lender.
Most buyers don’t even realize they signed up for these!
3. The "We Owe" Form - A One-Way Street to Nowhere
What It Is:
This document states that the dealership owes you nothing after you leave, even if they made verbal promises to fix something or include extras.
Why Dealers Want It:
Eliminates their obligation to fulfill ANY promises that might have been made during the negotiation process.
If they owe you a repair, a second key, floor mats, or anything else, signing this means they can completely ignore it, and they most definitely will!
Many buyers don’t realize what they’ve signed until it’s too late.
The "Spot Delivery Agreement" - A Scam to Change Your Loan Terms Later
What It Is:
A temporary financing agreement that allows you to take the car home before financing is officially approved. The dealer calls later to say, "Your loan didn’t go through, you need to come back and re-sign at a higher rate."
Why Dealers Want It:
Locks you emotionally into the car.
Forces you to agree to worse loan terms later (a trick called "Yo-Yo Financing").
If you refuse to sign new terms, they threaten to repo the car and keep your down payment.
5. The "Credit Application Authorization" - Even If You’re Paying Cash!
What It Is:
A document that gives the dealer permission to run a credit check on you, even if you’re paying in full with cash.
Why Dealers Want It:
They sell your personal data to lenders, insurance companies, and marketing firms.
Some will fake financing numbers to earn kickbacks from banks.
If they run multiple credit checks, it can lower your credit score unnecessarily.
🚨 Key Takeaways:
✅ Decline Arbitration Agreements - Keep your right to sue.
✅ Reject Dealer Add-Ons - If you didn’t ask for it, don’t pay for it!
✅ Avoid the "We Owe" Scam - Get written proof of what’s promised.
✅ Say NO to Spot Delivery Traps - Wait for final loan approval.
✅ Protect Your Credit - Don’t authorize credit checks unless absolutely necessary.
If a dealer pressures you, walk away. The best tool you have is your ability to say NO. If you don’t think you can do either thing very well, or you just want to avoid the headache all together, hire us to do totally hassle free! The details are on our website thehomeworkguy.com
Want to get Direct Help? Text with Liz, Talk to Kevin, and Hire a COACH to help YOU get the best car deal.
thehomeworkguy.com/store/
Not sure how to sign up? Text or call 701-441-3399 to reach Liz
You are absolutely right, the real scam is at the F&I office! I worked as a salesman at a new car dealership for a couple of months while in college. It amazed me how management would intervene in a sale I was making, sell the car for invoice price or just slightly above, ruining any sales commission I had coming. Then later I would see how much crap they sold the customer back in the F&I office. They would sell an extended warranty, paint protection, gap insurance, an alarm system, underbody coating, scotchguard, Lojack, literally tons of items that those in the back office would all get a HUGE commission from. Meanwhile, I as the salesman, would get the minimum $50 for the sale of the car, after spending hours with the customer doing all the foot work of selecting the car, the test drive, explaining all the features of the car, etc. The customer would be exhausted by the time they got back to the F&I office and would let their guard down. That's when management would strike. Not only would the customer get screwed, so did I. I can totally see why so many salesman quit the business.
The importance of paying cash for the car you can afford is hugely important. Walking away from a bad deal is always a great idea. Kevin Hunter is giving accurate information.
Thank you! We appreciate your vote of confidence!
Here's another weird one my parents ran into about 25 years ago.
There was a car dealership in Knoxville, TN (have no idea of the name; not even sure it's in business anymore). After the test drive, the dealership refused to discuss pricing on the vehicle unless my parents first signed a form basically saying "if we come to a mutually agreeable price, we are committed to buying today". Stated another way, the dealership wouldn't give a vehicle price unless they agreed in advance that they were committed to buying right then and there if the price was agreeable.
They walked. And on the way out, the dealership said "you wasted my time in showing you this vehicle". They responded with "no, you wasted ours by not giving us a price so we could evaluate it."
Perfectly handled by your parents.
Excellent information! Im a retired Judge and I remember when people signed contracts that they didn’t read or understand and were burned later by some sneaky provision they ignored or didn’t understand. If it is sneaky enough, Judges can refuse to enforce certain provisions. I used to ask people if they read some contract that was burning them and they always said no. You need to be sure of what you are agreeing to as it may bite you later. I have walked away from deals because of contract provisions that the other party refused to allow me to scratch out. For instance when purchasing my present house in 2000, at closing there was a provision hidden in the mortgage agreement that said the mortgage company could inspect my house without notice whenever they wanted! That would have been a tremendous invasion of our privacy and when they wouldn’t remove it, I got up and left. In one hour there was a new mortgage contract without the offending provision offered. A week later, I signed that one. You have more power than you realize! Don’t be afraid to exercise it.
Nowadays most transactions are “contracts of adhesion,” given the impossibilities of negotiating with an algorithm
Boy do I agree with you about most contacts being almost totally contracts of adhesion! You are fed a contract, given no choice, no one with whom to negotiate, and nothing else to do but agree with it. I suspect in a good situation and before a decent intelligent Judge, you might be able to invalidate certain provisions or even the whole thing.
Mainly they want you to be tired of reading and signing, they want you to get to the point that you'll sign anything without much thought.
Backing up the arbitration agreement avoidance. NEVER sign these for anything... car purchases, contractors for your home, appliance purchases. Nothing!
I can't stand those agreements.
Your videos are great. I have worked in the auto industry (mech) for 40+ years and I still learn from your videos. I have been waiting for a vehicle to be delivered to dealership. Already worked the price out I just hope they don't try any of these finance tricks.
I don’t take final possession until everything is fixed on the car I’ve done this in the past and it really pisses them off
Thank you both for what you do. It’s so amazing and frustrating at the same time. Deuces and thank you. It’s not enough for what you do for us. 15 years doing this for all of us don’t understand Carr buying gimmick. Bless you both.
Elizabeth & Kevin, thank you so much for being the voice of reason for the people.
Excellent information. YOU GUYS ROCK !!!!!!!!!!!!! Thanks .
They got me with the window etching on my Nissan Titan. I said I don’t want that. They said it’s already been added and I just said oh ok. Instead of holding my ground. That will not happen again.
Why would anyone ever sign away their rights? This video has confirmed that if I ever buy a car from a dealer I will definitely need help .
I had a very stupid car buyer arguing with me on the phone today about why she should have no problem signing her rights away. An idiot is born every moment of the day.
@@KevinHunterisnt this channel essentially a promo for you business. Pretty sad response. Comments like this would make me never want to work with you.
Show some professionalism
@beltycat5490. You realize that the signature was replicated across multiple documents without the buyers knowledge right
@beltycat5490 You realize that the signature was replicated across multiple documents without the buyers knowledge right
@@EuropeAfricaTripI think he and Elizabeth will be fine without your business.
the dealers name is BIG CITY MITSUBISHI in Brooklyn. Pin this comment
Helpful information! I really appreciate your advice. How common are arbitration agreements across the country? I’ve seen some Reddit threads mentioning that they’re so widely used that most dealers refuse to remove them. 😢 Basically like you have to check term and agreement before you use every app.
Unfortunately, arbitration Agreements are becoming more common. We aren't saying that all of them are bad, we just didn't want to make it too complicated for our audience. Some arbitration agreements still allow for small claims court filings. And they say their arbitration falls under the FAA, so the terms have to be reasonable. Those are things to look for on an arbitration agreement.
@@KevinHunter This just happened during my new car purchase, I initially refused to sign the arbitration portions. They said they could not sell me the car unless I did. I was alone, 100 miles away from home(no trade-in) so didn't have much choice. All my negotiating was done online and everything checked out on paper when I arrived. I'll give them credit for making the experience fairly painless.
“You” guys rock! We are all here to absorb the endless amount of knowledge you possess. I'm wanting to start building an F350. My first journey will, hopefully take me to the Ford website where I will be able to obtain add one. Fords cost will be irrelevant due to the fact I will be looking at, OTD at the dealerships. May have to obtain the Amazing Elizabeth to get that number. Stay safe!
We look forward to hearing from you when the time comes.
This was very helpful thank you
You're welcome! Thanks for your kind comments!
Buy used cars. Have them checked by a good mechanic. When i came home from the stealership i needed a shower to fell human again.
Great advice. Thank you!
You are so welcome! Thank you for commenting!
Could you show what this contracts and paperwork looks like? Also could you breakdown the language you guys are using in a bit more detail because most viewers I think don’t understand some of the language at least in some points that were discussed.
Never put a down payment on a car until you have all the financing, inspections, and deal tied up and you are ready to pay. Deposits and down payments ahead of that ties you with the dealer and they got you by you know what LOL
You nailed it!
This is excellent information! For some reason, I guess I thought "We Owe" was the "Due Bill" that you described. I will have to keep these items in mind for the next time we do buy a vehicle (which I hope is not real soon). Fortunately, we have not been scammed by the particular tactics you mentioned in this video, but maybe we were lucky. Thanks again!
A Due Bill and a We Owe are very different. Dealers are using the second version to skate out of all of their promises.
This is why you get an OTD price before you set foot in the dealership. Then you know what you are paying. Anything that doesn't pertain to that, do not sign. My uncle learned the hard way, but fortunately stopped it before he got too far. He had a deal on a Honda Civic back in 2014 and as they were doing the paperwork, the salesperson said, "I have to check with my manager about this and get approval". My uncle could hear the manager saying to the salesperson, "No way. Tell them that they're paying this amount. I don't care what you wrote it up for. This is what it's going to sell for".
The salesperson came back with the bad news. My uncle said, "Let me see that paper, please?" My uncle looked it, ripped it up in front of the salesperson and said to my aunt, "C'mon let's go". They walked out and bought the vehicle elsewhere. One time I went with relatives to buy a car (the daughter of this same uncle and aunt) and the car had a mileage issue. It was very obvious that a mechanic made a keystroke error when entering the mileage for a state emission inspection. Then the Valvoline oil change place put the correct mileage at an oil change (Somehow the car gained 30,000 miles in three months then lost it. It was surely a keystroke error). I found it on the Carfax report and showed to the salesperson. He said, "Let me speak to my manager". He came back not even a minute later and said, "My manager said we're not dealing with that". I told my cousin, "That says it for me. I'll be in the car." Her husband said, "I'm going with you." My cousin soon followed. The salesperson said, "I guess the sale is off then.....".
I learned the hard way that dealer salesman try to wear you down by keeping you there all day. It worked on me and I got ripped off. I’ll save you the long sad story.
If you went and sat down at the dealership, unfortunately, I already know the story. You never go into a dealership to negotiate. Not in today's car market!
Oh this is me. Thanks so much for shedding light on this.
You are so welcome. Glad we could be of service to you!
I got thrown out of a dealership over refusing to sign a loan application. They accused me of selling cars before.
Lol.. You slimy former car salesman, you! What a crazy accusation by a car dealership!
I got the cops called years ago because the deal fell through and they refused to refund my down payment
Another great video!
Glad you enjoyed it!
I'm sure you guys meant well, but the redactions on that retail purchase agreement didn't do a darn thing. That information was clear as day. Got to use an opaque black next time.
I will notify the editors. Thanks for the heads up
I found that GAP sold by the dealership is terrible. I bought a car for my son to drive. He totaled it in a crash (he has ok). The insurance paid out $2900 (example numbers) less than what I owed. I had also taken out the service contract on the car. Long story short: The GAP payout was $2900 minus $2400 from the prorated service contract refund = a $500 GAP payment to me. I still owed $2400.
Excellent guidance❤❤❤❤❤
I do not sign anything that I don't completely read and comprehend.
You are fortunate to be a lawyer.
The dealer pays for the arbiter, so it's no surprise who the arbiter decides in favor of.
😂😂🎉 PLEASE KEEP UP THE GOOD WORK 👍 THANKS 😊.
#1 all dealers have that , shop else where?
Peoria Ford in Az screwed my mom over when she bought a used Ford Explorer Sport with that "we owe" form. I thought that meant that they were going to fix those things they put on there.
Great information. I wonder how much of this applies to used car dealers.
Without a doubt. it applies to ALL Car Dealers. I'm not sure why some people think our videos are about NEW cars. Every video we've ever published is about the car business in its entirety, which is BOTH NEW and USED Car Dealerships. Keep your eyes open out there!
@KevinHunter Good to know. Thanks!
When I recently bought a new car, they told me that no one has ever refused to sign the AA and if I didn't sign it, they wouldn't sell me the car.
Seems like a very unlikely story, told by people who lie about everything.
Thanks Kevin and Elizabeth i am now ARMED AND DANGEROUS with your info!
your information is always informative and good to have
Glad you think so! We appreciate your comment!
A great video. Thank you.
Glad you enjoyed it!
I would like to know the process of ordering a brand new vehicle. All of this information is great if a vehicle is already on the lot.
Ordering a vehicle is a far simpler process than any dealer makes it out to be. They want you to think they are doing you a huge favor by ordering you a car. If you believe them in that scenario, they get to charge you whatever they want to for it. What's important to know is that they don't have any of the expenses involved in that vehicle that they do for every other car on their lot. That means technically you ought to be able to buy an ordered car for cheaper than anything they have on the lot. Hopefully, that makes sense.
@ Makes perfect sense, I just want to order it how I want it and not have to negotiate all the stuff I don’t want. Straight forward without the BS. Thank you
@lee-r8o8m Check out this video! ruclips.net/video/93EjAbvOsE0/видео.html
2:10 to get the info
And don't sign any blank forms that they say will be filled in later.
You got that right
Yeah Scotty Kilmer like his titles for example would state: "I'm going to prison for telling the truth and I don't care!". Then never talks about it. Clickbait, much. I stopped watching him a long time ago. Thank you for keeping it real.
That's the way we like it, and I'm pretty sure our fans like it that way, too!
Another tip, never sign electronically. If they cant provide the contract on paper, walk.
We would totally agree with that! Computers are a tool for hiding things you don't want!
Last couple of purchases ive had to sign a power of attorney. Why, and can you refuse
Boy has this business turned slimy since I retired from it 19 years ago. My dealerships never pulled this shit except the spot delivery but it was legit because of credit "problems". At one place we only actually delivered 50-60% of the of the cars "sold" because of credit issues.
Would it ever be beneficial to mention that I watch "The Homework Guy" when shopping for a car?
Wow, thank God i bought my car 3 years ago n is paid off 😂😂😂
Tell Toyota of Dallas they should quick while they are behind on a deal. Now they keep calling to do service work that is overpriced too but they have lost businesson both sales and maintenance now. Terrible business model.
They cant force you to sign arbitration, but can they make it a condition of sale?
This is how I got burned. I signed but after I saw the documents which they never showed it to me. They put it in the glove box of the car. $10k mistake that I'm currently fighting
Ouch! The school of hard knocks right there!
what happened?
@@jesusalvarez6771they had my sign a screen and when I did sign one physical paper he had his hand blocking the numbers
question: how about if I print out my own credit report from one or all 3 credit agencies and bring it with me to the dealership? Also, most of the credit card web sights offer your recent credit score updated monthly. Maybe just bring it up on your laptop or mobile device so the dealer can see the latest number. It seems running a credit check is almost redundant these days with these quickly updated sources.
That's what I did.
I avoid every trick in the book by buying from regular people. All I need to do is go over the vehicle and pay the person and get the title, that's it. Why go to a dealership and sign so much unnecessary paperwork for a vehicle if you don't do that when you buy from someone. Just think about it, unless you want a brand new car with less than 20 miles on it. Then that's when you get all the add ones. That's fine for me. The sucker can pay for all the add on, and I will pay for a vehicle for what it's worth and nothing extra.
We have purchased cars private party many times ourselves. We agree with you! However we do know that most car buyers go to a car dealership to get a vehicle. That's why we have to do this show.
Hunter, should I buy anew car at MSRP. Or continue bargaining?
You shouldn't be paying MSRP on anything right now.
@@KevinHunterwhat about the new 4Runner? Doesn’t seem like anyone is even considering anything but a mark up.
I did say NOT on ANYTHING right now. That includes a 4runner. Dealers positively respond to a buyer to takes the reins and makes reasonable demands. Expecting a break off MSRP is reasonable.
@@suncitydiscgolfThe New 4Runner is garbage, get a used one. They ruined it with turbo. Thomas Seiber made countless videos explaining why not to buy any new Toyotas right now (except for like the Corolla or Camry)
If you negotiate a deal by text and email can. you get the dealer to email all the docs so you can review them at home? I think they want you there for pressure but it would be nice to be able to review them in advance.
Good stuff,
The arbitration clause has to be the worst of these
I have had a bad experience with the finance department of a dealership. They wanted to sell me every protection under the sun on cars and would only take no as an answer when I stood up to leave. One of those times it was 11k of add on for a 12k car.
11 Grand on a $12,000 car... that is absolutely insane!
the best way to avoid the yo-yo financing, get your own financing before you buy.
Don't ever give them your keys either.
Question, can you get the deal done but bring home the paperwork before you sign it? I hate sitting in the office with the finance guy going through all the paperwork, I would rather bring it home and read it on my time and go back the following day to pick up the car and sign the paperwork. Thank you
You certainly SHOULD be able to do that!
You can still go through all the documents right in the office. So what if you spend an hour or two in the office. Take your time, go through anything, take a break if you need to. You are really the one in charge, you're about to buy a car and hand them thousands of dollars. Bring a calculator to go through the numbers. They won't throw you out if you are a step away from buying the car..... They count on the fact most people just want to be out of there in 20 minutes and feel under pressure and just sign anything put in front of them.
?if the dealer doesn't give waranty on use car more than 90 days.even if the car is 3or 4 yrs old.
That's pretty standard, actually!
How much does it cost to hire a car buying coach?
It's all on this link: thehomeworkguy.com/hasslefreecarbuyingservice/
@KevinHunter I went to the link but it said the site had been shut down by the fbi.
Liz would be happy to answer your questions directly about it. You may text her at 701-441-3399. We look forward to hearing from you!
Omg I am using your tips trying to get my OTD costs via email. What a nightmare, you say don't call email so 3 people from each dealership are CALLING me. 😢😢😢
Call, and email. use both.
When I bought my current car (new, a 2001 4Runner), of the 5 dealerships I contacted by email for an OTD price, only 2 replied, with 1 insisting on my giving him my phone number first, before quoting a price - which I wouldn't. I ended up buying from the one dealer who was cooperative, but the F&I guy screwed me in a different way, for the alarm system (sneakily substituting a problematic aftermarket system when we'd agreed on the Toyota-branded system, but without my insisting on that being specified on the bill - and he then denied our verbal agreement). Aggravating, but it coulda been worse. That was my best experience with a dealer.
What do you do about dealerships that show you the paperwork digitally on a screen, no paper?
Refuse to sign on any screen. It's too easy for them to slip something past you. Make them print out every form.
I signed the "no promises" page only after i saw everything else i was promised in writing.
oopsie-daisy! Always be careful about any document like that, even if yoiu think your bases are covered.
@KevinHunter I will be. You even pointed out several things that I'm going to keep an eye out for. As many years as I've been buying cars yall always teach me something new.
Never allow a dealership to charge a , document preparation fee, this blatantly stealing money for nothing. If the dealership wants to sell the vehicle the only documents needed are title, sales tax , and registration. There is no charge to prepare these documents. They can't sell the vehicle without them.
🦉
So, he said we know who the fake news RUclipsrs are. I’m new to watching these. I don’t know who they are. Anyone willing to give a clue so I don’t watch someone who doesn’t give good advice?
I can help you. The Car Questions Asked (CYA) guy is publishing "Dodge is discounting 60%!" Sound like fake news? IT IS. Car Edge has published "The Car Market is Crashing" headline for the 4th year in a row... Every report was totally Fake News. It's disappointing because both of those guys have the real capacity to honestly help people, yet they choose the Clickbait route. You never know what you're getting from these guys!
I'm sure there are disreputable dealerships, but you guys talk like there is not a single reputable dealership out there. I find that hard to believe.
If you go car shopping at a dealership with the assumption that you can trust somebody there, you most definitely will get burned. If you go to the next dealership with the assumption that you must verify and double check everything, you'll definitely like your result much better, and you'll be surprised what you can learn with both eyes wide open.
In a similar fashion, if a politician made a given promise to you to earn your vote, and I said to be very careful about believing anything they said, would you immediately say"i find it hard to believe that there's not one reputable politician out there."
Intelligent people play the odds. The odds are, our warnings will always come true. Millions of viewer experiences validate that statement.
Most dealers are disreputable.
@@KevinHunter Buying a car and getting a fair price on it is not that difficult.
@@thehoneybadger8089 What facts do you base that on? Most likely this is just your uninformed opinion.
Perhaps not for some people. However, there are plenty fo people who should never attempt it on their own.
Thank you both for what you do. It’s so amazing and frustrating at the same time. Deuces and thank you. It’s not enough for what you do for us. 15 years doing this for all of us don’t understand Carr buying gimmick. Bless you both.
Very helpful! Thank you