The Pencil. It's 20 seconds in a car dealership that can make an absolute fool out of you. How? In the car business, the pencil can put you in the wrong car, locking you into a nightmare car deal. I am Kevin Hunter, also known as the Homer Guy in Atharov. Is that the best you can do? This video brought to you by YouTube's best channel on car buying and selling courtesy of the Homer Guy team. The round of Superhine Tensity Training is coming up for you car buyers. If you like the Homer Guy videos and you want to support some of our swag like this hoodie, we'll just check the merchandise shelf down below. We appreciate your support. We have a fabulous video for you today and it includes live roleplay in a dealership. You're going to love it, a little background. Anyone working in the business knows about the pencil. One thing I can guarantee you, it's that you're going to see the pencil. The salesman and the dealer sales trainers who claim to be the pros with this technique get 50% of you car buyers out there to bite on the first pencil. Signing on the first pencil is great for the salesman, great for the dealer but very bad for you. Don't worry, if you know nothing about the pencil, that's precisely what we're going to talk about today and you're going to learn a lesson you'll never forget. I guarantee that. This knowledge about the pencil can prevent you from ever being ripped off at a car dealership. Again, we'll be right back with a live roleplay so you know exactly what it looks like and sounds like right after this short message from the Homer Guy team. If you're a first timer on the Homer Guy channel, consider subscribing and leaving us a comment below. Add hashtag the Homer Guy if you'd like a response directly from Kevin or one of the Homer Guy staff members. We're always glad to help our loyal followers and best parties. There's no charge. You can also email the team at infoatthohomerqy.com with a specific question or if you'd like a free contract review, just black out your personal information and send it to us. We'd love to hear from you. Just be aware that we do get a lot of requests so just be patient while you wait for a response. Back to you, Kevin. Widely known in the car business, the puzzle is that critical moment when the car salesman brings you bad news and yet calls it good news. That's funny, isn't it? Nila Sail strainer's teach on this all the time. Unapologetically they tell the entire classroom of car salesman that they are messengers of bad news. They say, just get used to it. Think about it. The messengers of bad news are going to tell you that they actually have good news. Yeah, what's about to come out of the mouth is the first pencil and it's always bad news always. Just a little ironic, don't you think? Now let's get into the details on how the pencil works, how it will be presented and how you can get fooled by it. The pencil has very limited information on it. It's designed to make you focus on just two numbers, monthly payment and cash down and those two numbers will be presented in the exact order I just described. It will sound something like this. Guys, I've got great news. The salesman will sit across the desk from you and then say $599 a month with $2,000 cash down, just sign here and we'll get you down the road. And then your salesman will sit there in silence. Why? Because it was believed for many years that the next person to talk loses. They want you to lose. So they sit there and wait. It's awkward, it's weird and quite often confrontational. Here's what it looks like. Okay, I got great news. I can't believe they did this. I'm very excited. There are only $599 a month after the $2,000 down. We'll be able to walk out of here and you'll be the proud new owner of a new vehicle. I have to do a sign right there. That wasn't what we talked about and that's actually a lot higher than I was expecting. This method where the salesman shuts up and listens after they put the proposal on the desk was long believed to be the winning formula. Yet, it has proven to be untrue by many of the best salesman in the car business. I'm talking about guys who earn $700,000 a year selling cars. Now if you think that's unbelievable, that's alright, but it's true. Their success is based on what they call the psychology of the sale or people knowledge. They want you to perceive a deal as good and they know you latch onto the last words they say. The pencil of these top salesman will sound entirely different than what I just shared a moment ago. It will also be presented differently. It won't come from across the desk which feels like a negotiation. It will come from right next to you in what is known as being knee to knee with the customer. It takes just 20 seconds and here's what it's going to look and sound like. Okay, great news. I'm very excited. I can't believe that my boss lets do this. This is really a great opportunity for you here. Only $5.99 a month after the $2,000 down and you'll be able to drive off a lot in your new vehicle. And I forgot to ask, is it easier for you to get your payment on the first or on the 15th? The probably the 15th. Okay, the 15th it is. I'm going to go let my boss know so that he knows and we'll be done as soon as you sign here. It's been a pleasure doing business with you. Thank you very much. Alright, let's break it down so you know exactly what happened. The way the salesman presents something is the way you perceive it. The salesman walks up to you while you're sitting. Instead of sitting across from you, he comes to your side of the desk and gets knee to knee. It's their knowledge and training on human behavior that puts them next to you. They seem like a friend. Instead of a combatant in a negotiation and then he said, I've got great news. He followed this up with you're at $5.99 a month with $2,000 cash down and then he did what is known as the diversion tactic or the confusion tactic. Remember, you can be directed to think about the last thing you heard. He threw out your payment and cashed down in just 5 to 6 seconds. He then shifted to the diversion or confusion tactic. Let me play it back to you so you remember what it was. And I forgot to ask, is it easier for you to get your payment on the first or on the 15th? The probably the 15th. Okay, 15th it is. I'm going to go let my boss know so that he knows and we'll be done as soon as you sign here. It's been a pleasure doing business with you. He said, I forgot to ask you when you wanted your first payment to be due. What works better for you the first of the month or the middle of the month? You said middle of the month or perhaps the first of the month. He immediately circled that and said, great, I'll let my boss know you prefer the middle of the month. And then stuck his hand out, shook yours and said, thank you for your business. He slid that piece of paper over to you and said, just sign there. You signed. It was a meaningless piece of paper. Had nothing to do with finance or any contracts, it was largely symbolic because he just walked away with your word, your handshake and your signature. And you weren't going to make a fool of yourself by asking any more questions. It was too late. Your character, your honor was on the line. And you had just given it to a very dishonorable person. This person brought you bad news, made you think it was good news. He only gave you a six second glimpse into a very big decision you're about to make. Think about it. Just six seconds. And he took away any chance for you to offer feedback with the next 14 seconds. He shut you up by pulling a trick, a diversion, a confusion tactic and switch you to what time of month you wanted the pain to start and you were fooled. It happened in just 20 seconds and 50% of you never catch it when a skilled salesman pulls this on you. I sincerely hope you learned something today. The pencil should never fool you again and the diversion, the confusion tactic, should always be recognized as nothing to do with customer service or concern about what day of the month you want your payments to be. The 22nd pencil had everything to do with controlling you, shutting you down and getting you to commit to a deal that you knew very little about. Don't ever get burned by the pencil again. If you really enjoyed this format with some live roleplay examples, let me know in the comment section below. We'll be glad to offer more of them. As our return viewers know, the HomeworkGuy channel is home to the best videos on car buying and selling. Check them all out. We've gone to a lot of work to help you out so use the resources we put out there for you. They're free. So what are you waiting for? If you learned something today and enjoyed the video, consider giving us that great big thumbs up and leave a comment down below. Use hashtag the HomeworkGuy, share the video on social media with your friends and make sure to join us on Facebook and Twitter too. We post notifications and other updates on our social media sites and answer car buying questions there too. If you love what we do and want to say thanks with the tip, well the PayPal and cash app links you see coming here, you'll find in the description box down below no problem if you can't do a tip. You can say thanks by sharing our videos with your family and friends and encouraging others to subscribe to the channel. That's huge. It's one of the most important things you can do as a loyal follower and viewer here on the HomeworkGuy channel. We appreciate everything you do and you help us get the word out so that the bad guys in the car business who need to be defeated and are still hanging on, they'll someday realize that fairness and honesty is the best business model. Thanks everyone for coming back. Wasn't this a stellar good video today? It was and it's now time for me to run. We'll see you guys on our next video. You guys rock. I'm Kevin Hunter. Until next time. Take care everyone.