Done with car dealers

[1971demon]

Lol but im a level above. I sell USED cars
Gotta watch these new car guys...

Well used is where the money is..(at least as far as the salesman's concerned...)..car business has changed..I can remember when a salesman knew a thing or two bout what he's sellin...

 

[Boris]

Not truer words spoken! I'm so lucky to have had a buddy recommend a Dodge Dealer 1.5hrs. away and unlike any I've ever been to. So much so we've bought 3 vehicles there in last 2 years. Diamond in the rough. Glad we are an FCA family. 1 less thing to worry about. If your near Illinois I'll give you their info.

And what dealer is this?
Could use a good one and im in Northern IL

 

[mopar madness]

Lol but im a level above. I sell USED cars
Gotta watch these new car guys...

Got a question poke, when I got my hellcat and my corolla (both used) last year I pulled the cash out of my retirement to pay for the cars. Both dealerships begged me to finance at least part of the purchase. Do they get some kind of kick back from the lender?

 

[Jimmy N.]

At least on new cars they do, which is why I finance for the minimum three months since my dealer gives me most or all of that kickback.

 

[Slowpoke387]

Got a question poke, when I got my hellcat and my corolla (both used) last year I pulled the cash out of my retirement to pay for the cars. Both dealerships begged me to finance at least part of the purchase. Do they get some kind of kick back from the lender?

A lot of the time they can add a percent or two to the interest rate that you qualify for and if you accept the new rate they get that added percentage.

 

[MikeD1]

A lot of the time they can add a percent or two to the interest rate that you qualify for and if you accept the new rate they get that added percentage.

The dealer I bought my Cat from did that to me. Claimed I did not qualify for the lowest advertised rate (with an 820 FICO & 2/3's cash down), but in reality they were trying to make up for accidentally advertising it for $3k less than it should have been + me passing on all the up-sells in the finance office. Pissed me off, but I knew I was going to dump the loan in 3 months anyway. So I let them gig me for the extra $60, took my car and hit the road.

 

[1971demon]

Got a question poke, when I got my hellcat and my corolla (both used) last year I pulled the cash out of my retirement to pay for the cars. Both dealerships begged me to finance at least part of the purchase. Do they get some kind of kick back from the lender?

They also get quarterly incentives based on quotas...say for instance a dealer did 500,000.00...with a particular lending institution in 1st quarter..and in qtr.2 did 700.000.00...they get an incentive (bonus)...these terms vary...depending on the lender...dealers would rather you finance..then pay cash

 

[mopar madness]

A lot of the time they can add a percent or two to the interest rate that you qualify for and if you accept the new rate they get that added percentage.

I’m sure it must be legal but doesn’t seem ethical. Of course if I don’t catch it shame on me.

 

[Magnified]

FL is one of the worst places to buy a car ever. There is the usual 'boning' you on your trade right out of the gate.

Then they ALL add a 'dealer fee' that ranges from $700 - $1100 and claim it's to prep the car (even tho the manf. pays them for that).
Next there are a whole array of 'doc' fees. I can remember when this shit was like $89 and it pissed me off then. Now most have at least 2 or 3 of these doc/title/plate fees.
The biggest gouge are the places charging $250 to file a digital title (for you convenience) which is way easier to do (it's all on-line) and no additional cost from the State.

Most of them have a 'bump sticker' of $1000+ for useless add-ons or 'services' they provide (lifetime oil changes, tire rotations, VIN etching, crap wax etc.).

But wait - there's more ...................
Then the finance guy will try to take you on the financing (unless you plan to pay cash or came in preapproved) and they will bone you for the full MSRP if you want the OEM extended warranty (thank you ST of FL politicians for selling out to the dealers assoc. and making that a law!).
Of course, he will also try to get you to buy a bunch of other worthless crap (paint treatments you never heard of, wheel Ins., maint. pkgs etc.).

Net: you need to start lubing up days in advance of visiting a FL dealer to buy a new or used car !

Also, NEVER EVER even hint you are paying cash or are preapproved for a loan until the deal is done & you are in the finance guy's office. If they even get a wiff you are not financing thru them or can plunk down a large down pymt, they will pretty much not negotiate with you on OTD price.

They won't negotiate? Walk. Easy; lots of dealerships out there. Only problem is if they are the only one that has exactly what you want.

 

[Magnified]

But wait - there's more ...................
Then the finance guy will try to take you on the financing (unless you plan to pay cash or came in preapproved) and they will bone you for the full MSRP if you want the OEM extended warranty (thank you ST of FL politicians for selling out to the dealers assoc. and making that a law!).

That kind of thing is what really burns me up.

 

[ACMAVRO]

A lot of the time they can add a percent or two to the interest rate that you qualify for and if you accept the new rate they get that added percentage.

Wtf!?! I wonder if that’s why when I bought the HC it was a point or two higher than I thought/knew it should’ve been. They gave me some bs about the market. I bought it out of state. I guess it doesn’t really matter I made a few payments and refinanced it with my local credit union at the way better rate. That’s sucks to think about though, shady mfrs

 

[Slowpoke387]

Wtf!?! I wonder if that’s why when I bought the HC it was a point or two higher than I thought/knew it should’ve been. They gave me some bs about the market. I bought it out of state. I guess it doesn’t really matter I made a few payments and refinanced it with my local credit union at the way better rate. That’s sucks to think about though, shady mfrs

Bastids

 

[ACMAVRO]

Bastids

They are! At least they gave me what I wanted for my trade and a good out the door price so I guess it all worked out

 

[Jimmy N.]

shady mfrs

That does stand for "manufacturers", right?

 

[ChargerChallenger]

The finance people get a cut of the deal as well. The more they add into the final purchase price the more they make. A good finance person in a good dealership will make 200k plus.

 

[Stormtrooper1320]

A lot of the time they can add a percent or two to the interest rate that you qualify for and if you accept the new rate they get that added percentage.

I don't care what interest rate they give me cuz if it isn't good enough, I just refi at my credit union. I'd rather have the rebate money upfront to get the price as low as possible. Even when they play the game that you have to take their financing just to get all the rebates, I take it. And everytime they've tried to tell me that I had to keep their financing for 3 months or 6 months, I've asked them to show me that in the contract and not one single time have they been able to do it. At which point I tell them that if it isn't in the contract then it doesn't count. They usually come off with some garbage about it not being in the contract but being "their policy". I again ask where that is in the contract, and they tell me it's not, it's their "internal policy". I usually laugh and tell them that I'm not bound by their "internal policy" and that I'll be refi'ing the car to my credit union in the first 45 days. That's one of the reasons I always ask for 60 until the first payment.
Sure, they might get the first payment out of me, but nothing more than that.

 

[Jimmy N.]

And everytime they've tried to tell me that I had to keep their financing for 3 months or 6 months, I've asked them to show me that in the contract and not one single time have they been able to do it.

Well, I kinda got myself, and the dealer, in trouble once by paying down a Chrysler Capital loan a bit too much before the three months were up. Then all hell broke loose.

They took it upon themselves to "forgive" the $300 something I still owed. Smart move on their part, since they could then recoup about $2,000 from the dealer.
It took many phone calls and emails on my part to "reinstate" the loan, and they were still hassling the dealer months later.

It all worked out eventually, but I sure learned to leave enough balance on a loan until the three months were up.

 

[Stormtrooper1320]

Well, I kinda got myself, and the dealer, in trouble once by paying down a Chrysler Capital loan a bit too much before the three months were up. Then all hell broke loose.

They took it upon themselves to "forgive" the $300 something I still owed. Smart move on their part, since they could then recoup about $2,000 from the dealer.
It took many phone calls and emails on my part to "reinstate" the loan, and they were still hassling the dealer months later.

It all worked out eventually, but I sure learned to leave enough balance on a loan until the three months were up.

That's weird because I always ask if there is any prepayment penalty. The answer is always "no". To me that negates any requirement to maintain the loan for any set amount of time because if you refi, then the first lender gets paid in full ahead of the original loan term.

 

[Jimmy N.]

My first question when learning about this way to save some money was if there was a prepayment penalty.
Which there isn't...as long as the loan has been in effect for at least three months.

 

[Stormtrooper1320]

My first question when learning about this way to save some money was if there was a prepayment penalty.
Which there isn't...as long as the loan has been in effect for at least three months.

Well that sucks.