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You would think so, wouldn't you? but not so, They can and will repossess the car if you don't alter the financing to their rates.. even after the contract is signed. I'm not sure how they get away with it, but I have seen it happen...
Working in a family car business growing up I can tell some people simply say come get your car and bring back my trade... Contract Rescission and even getting a refund on taxes and fees just like when you buy a lawn mower at Sears and return it.
It's a lot of pushing and shoving... still remember one young lady whose uncle was a well known lawyer... simply told the Dealer to speak to her Uncle... guess what... somehow they were able to work out all the details.
Actually it's impossible to verify funds in a MEANINGFUL way. The business calls the bank, the bank says "the account has sufficient funds at this point", and the moment the car drives off the lot the buyer calls their buddy who drains the bank account, before the seller can get their money.
And no, the bank won't 'hold' the money for you just because you called.
We had a service that would guarantee personal checks for a fee... most of the time, the person will not qualify... once, they did guarantee the check and it came back account closed... company made good on it.
Perhaps the good price they gave you was dependent on making some kickback/commission on the back-end. Perhaps a "better" buyer can easily be had for the car (popular models of Hondas and Toyotas, for example).
Yes... some very good deals are dependent on Toyota Credit, GMAC... etc. and it says so in the price disclaimer.
OP, apparently you think you have some leverage over the dealership, you do not.
The reason they have you fill out a credit app is to protect the dealership. Read your sales contract, it likely says that if your own financing doesn't go through, they can process your loan through the lender with whom they do business.
Here is how it works. Would you let someone drive of the lot with a new car that can't be resold as new if you return it? Once the title is made it becomes a used car, period. So you drive off and for some reason your load doesn't close. It could be any number of reasons and it happens.
So there you are with a brand new car, now used and with no financing in place. The dealers have seen this happen before so they protect the dealership, as any business would.
What else can you buy for that kind of money with a loan that isn't 100% done before you take the property away with you?
Its time to be realistic. If you don't want to use the dealer financing then show up with financing already done, as in check in hand. Go make your deal, get the quote and give it to your bank. They can process your loan and if approved, give you a check or draft made out the dealer. Then go pick up your car and the previously negotiated price.
But that isn't what you want is it? Nope, you want to finagle deals and financing and then want immediate gratification.
People with stellar credit can and do walk onto the lot and walk away within 30 minutes driving a new car. Their credit is so good they can demand the lowest rates and the best terms. Apparently you aren't in that situation so, you get in the cattle line with most of the others.
That is just how it works. Save your money and put it in the bank, then get a loan ahead of time and go get your car. You aren't going to run the dealer around, they deal with people in the same situation as you all day long, every week, month and year. You aren't someone special.
Last 4 Dealership car sales went as follows:
New BMW European Delivery put on a Credit Card only trading faxes.
New Toyota Corolla... factory ordered... went to pick it up and no personal check accepted... drove 50 miles home, stopped at the bank for a cashier's check and put it in the mail
New Honda Odyssey... drove 285 miles... spouse is on deployment... drove all the way home with all paperwork for Spouse to sign and Fedex back... Dealer did have a personal check and no original paperwork
Used Toyota from Toyota Dealer... paid personal check after a credit check... it was Friday night after banks closed.
You're right, I can't buy one for $9 over invoice.... I can get one for $1,858 UNDER invoice.
2015 BMW 320i
MSRP: $33,900
Invoice: $32,365
Selling price: $30,507
(Verified purchase price from Truecar)
$9 is the only sure profit, not the $800-1200 you claimed. Even with the 2% holdback, it's not even close to that. Manufacturers can refuse to pay holdbacks for dealer performance. Incentives are often seasonal and not year round.
People with bad credit do not buy new cars? LOL
Many do and head to the dealership for financing because their banks rejected them. That's when those unscrupulous finance or lienance managers prey on them by sticking them with 15-20% rates, of course including their usual 2.5% padding. Heck, even people with good credit end up with high rates because they were fooled.
Yes... it is actually harder to buy used than new in most cases...
Dealers love folks with bad credit because they can justify ballooning all the costs...
To the person that left me the anonymous rep. Thanks, that's just how awesome I am....and I am sorry I have made you so fearful. I hope you have nothing but sunshine in your days ahead.
However, laws designed to combat money laundering by terrorist organizations do require dealers to check the identification of customers paying more than $10,000 in cash and to report those transactions to the Internal Revenue Service on Form 8300. Paying with a cashier's check, money order or traveler's check also qualifies as a cash transaction, according to the IRS. (Oddly, a personal check does not qualify as cash, according to the IRS form's instructions. But it's the rare car dealer who would accept a personal check for a vehicle purchase.)
Making a profit is sleazy? They are doing you a service in many cases, they shouldn't get paid for that? While not the norm (unlike others, I'm not going to make out the exception to be the rule) there are times that you need the services of the F&I guy. There are times they can get you a rate or even a loan you can't get on your own.
I have seen cases where the F&I guy was able to get the bank to take the risk on a borderline customer based upon all the business they have sent them as of late. This is also why a dealership likes to deal with one source for a large portion of their loans. If they just sent the bank 20 great customers they can get the bank over the hump on a borderline customer by pointing out all the good loans they sent them.
They shouldn't get paid for that? Tesla is still going to make back end on a loan.
I have no problem with someone wanting to make a profit. However, I do have a problem with the numbers game and trickery that certain dealers play.
I bought a Chevy for the wife a few years ago and had a wonderful experience. They offered a price, I accepted, then we went into the financing stage.
The lightly used car I bought recently was a completely different story. First of all, they were asking about $2500 OVER retail value. When I offered what similar cars in my area were selling for, the salesman acted like I had murdered his daughter. To make it worse, the finance guy tried to include a $2000 extended warranty without even asking me. They pulled the "here's your payment amount" game without showing the total amount financed. I almost left after the game they pulled, but I really liked the car.
On another occasion, the wife and I were looking at a new car. The car was new to market, so there wasn't much budging on price. However, AFTER they had run our credit, they notified us that there was hail damage to the vehicle and that they wouldn't be able to discount the vehicle any. I promptly left...
I hope all car buying experiences can be like buying my Chevy. Unfortunately the latter experiences happen often.
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