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Because they are MAKING MONEY OFF THE FINANCING. DUH!
Let them RAPE you on the interest rate and then pay it off with the loan from the other place a week later.
Seriously, how f*cking hard is that to understand?
I did this with my kids kia 2 years ago....I went in pretending to be a dumbarse and let them gouge me on interest rate while talking them down on price. A week later I paid it off with a vastly lower interest loan.
Hope this helps you grasp the fact that people actually make money by loaning money at higher interest rates than what you warrant.
My son did that on a new Ford Focus, got a great price (according to truecar) but the interest rate was 2 points higher than his credit union had quoted him. When he said he would supply his own financing they said they couldn't honor the price they had quoted because it included a $1,000 incentive for financing through Ford, so he bought the car with the over priced financing, waited a week and had his CU pay off the ford motor credit loan.
I'm not sure why everyone feels that the dealership is out to get them. They are there to make a profit. It's not a charity.
I went in with no prearranged financing on a Saturday afternoon. Walked out a few hours later with a brand new 2015 van. I paid 1500 under invoice and qualified for 0% or .9% financing depending on the term.
Generally, when I hear people complain about dealers they're being unreasonable or have finance issues and expect the dealer to bend over backwards as if they're special.
^This. Bottom line, they are in business to make money. And they have to protect themselves also.
And to answer the OP question. Yes, they will "walk" a sale if the numbers don't make business sense to them. And you can walk away also, if it does not make sense to you and buy somewhere else. No need to get upset or worked up. Just like when you're buying anything else. If you don't like the price , you are free to go somewhere else.
I have bought many cars with no issues. You just have to be smart and understand the terms and conditions. Read your paperwork fully.
Just went through a GRUELLING process buying my wife a used car today. After researching extensively online, I went out and got an online auto loan (actually make that two loans, after I saw how good the first rate was, I decided to go and get myself a loan to get a new (used) car as well. I spoke to the online loan folks (up2drive and Capital One) who assured me that this should be a painless process. Just get the price you want, and give the dealer your drivercheck, they take it from there and I drive off with my car. Both dealerships I visited were listed as being on the auto loans company networks and accept their loans. Should have been easy. HA!
The problem is the bold. If this were a new car, they wouldn't have cared as much. Used car financing is rock bottom as far as the dealer's concerned; they can't make hardly any profit off you, and without profit they're not able to "make good" on the sale with you. Better to let you walk and have some other sucker come in and do things "their way".
Quote:
Originally Posted by biafra4life
I really don't want to use dealer financing AGAIN, but is this non negotiable?
Here's the problem. People do this wrong.
If you're going to buy a used car, pay cash or do it the way the dealer wants. OR, buy from a dealer that your lender tells you to go to. My credit union has a list of lenders that it will refer me to if I wanted to buy a used car and gives good pricing. I don't buy used cars anymore, but it's nice that I can do that.
Whether used or new, just get the car, pay it for a year and then refinance with your lender of choice. You'll actually end up a little better off because some of the principal will have been paid down.
Doesn't matter whether you meant a week or 4-5 days..... it's still wrong. The funds would be available as early as the same day or Friday thanks to the Check 21 Act.
Check 21 Act applies to every bank in the US. Doesn't matter what area you live in.
Yes, I'll take the words of Intellichoice over some random anonymous guy on the internet who thinks checks take a week to clear and BMW has secret rebates no one knows about, except him, of course. None of the credible websites that publish manufacturer to dealer incentives (which aren't publicized) don't know about these secret rebates either. You must be special or just making stuff up.
Yes, I am fully aware that dealers pay a small fee to Truecar for customer referrals ($299 not $500 you claim). Why shouldn't they? They're bringing them business after all. But, how does it affect me if I get the lowest price? Like I said, I've compared it to other buying services and it was the cheapest by $1000.
Let's clarify something here. "Funds being available" and a check being good are not the same thing. A car dealer needs to wait for the check to be "GOOD" before they can release a car. Simply having the funds available to draw from is not a guarantee the check is good yet. I pulled up the fine print from our bank and here it is:
In my business most checks we get are over $50,000 so we fall into the large deposit rules. Even so, it can take up to 2 business days for funds to be available BUT AFTER FUNDS ARE AVAILABLE YOU CAN STILL BE CHARGED BACK IF THE CHECK BOUNCES. See the section on Page 2 that discusses this.
"You agree that PNC Bank may deduct the amount of a deposited check from your account balance if PNC Bank receives notice that the check has not been paid."
So a guy walks into my door and buys something from me on a Monday for $50,000. Per the chart in the attached link those funds are not available for me to draw from until Wednesday. BUT, and this is a big one, I can take that $50K Wednesday if I want but on Friday (or even the following week) the check ends up bouncing then they can charge me back and I have to repay the $50K. By that time the customer is long-gone......
That is why you don't take personal checks. Or if you do, then you wait for the personal check to clear through all the banks before letting the customer take the asset home. In some cases we get customers who think we are violating their honor by asking for a wire transfer or cashiers check so we take their personal check and tell them we have to wait for it to clear. Just had one of these a couple weeks ago and I work with our bank's treasury department to get the final "OK." They can tell me once everything goes through all banks, etc.
So I should just ignore a credible publication which has been in business for many many years because some random anonymous guy on the internet who thinks checks "take a week to clear" tells me so? Uh, call me crazy but I'm going with the credible publication.
Prove that BMW has a $5000 rebate. Pretty strange that all the inside sources who do this for a living have no clue of this mystery rebate yet somehow only you do. Sounds far-fetched, doesn't it?
How do I know Truecar had the best price? Because I checked every other buying service (Costco, Carsdirect, etc.) and tried haggling without coming close to their price. I'm talking about $1000 difference. Who cares if the owner is supposedly a fraud? There are many successful owners who have been sued. Ever been to Las Vegas casinos? Did you know they were developed by mobsters? Yet millions of tourists visit every year. What do I care if I get the best prices?
For the third time, and maybe you'll actually read what I write for a change, I never said there was a $5000 rebate on the BMW. Not once. What I said was there might be some manufacturer to dealer incentive (hidden rebate, dealer cash, whatever you want to call it) that might be available on it. Just because you, Mr. Wonderful internet shopper couldn't find it, doesn't mean there aren't any additional incentives. Again, do some research on stairstep incentives such as this article. This is just one type of "hidden" incentive that car dealers have that customer's won't know about:
Which brings me to my next point, if Truecar truly saved you $1,000 over the best you could do on your own then that tells me you are not a good shopper or negotiator. Nothing wrong with that - some people just don't know the in's and out's of this business and by your posts you clearly fall into that category. $1,000 is a HUGE spread on a car - if you go get quotes on the same car from two different dealers they should be within a few hundred bucks of each other. There just isn't that much profit in the new car sale itself anymore. (Hence the increased demand from dealers to get the financing, too.)
Here's something that I learned recently. Most dealerships make money from banks.
I bought a used car and was offered a certain finance rate from a certain bank. I said I'll have to think about it and shop around. As soon as I said this, the finance guy said "let me see what I can do" and got the interest rate lowered by 1%.
A friend that works at car dealerships told me that car dealers get payment from banks when using them. This is why dealers check certain banks but not others (even though there are like 10 local banks in my area).
My guess is that if you are offered 5% interest on a used car, the dealer probably gets a percent or two of that interest. Which is why they like you to use their financing.
On another note, this is why I hate car dealers. They are all sleazy. I'd much rather buy the car straight from the manufacturer (like Tesla) and just have a no haggle price.
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.
For the third time, and maybe you'll actually read what I write for a change, I never said there was a $5000 rebate on the BMW. Not once. What I said was there might be some manufacturer to dealer incentive (hidden rebate, dealer cash, whatever you want to call it) that might be available on it. Just because you, Mr. Wonderful internet shopper couldn't find it, doesn't mean there aren't any additional incentives. Again, do some research on stairstep incentives such as this article. This is just one type of "hidden" incentive that car dealers have that customer's won't know about:
Which brings me to my next point, if Truecar truly saved you $1,000 over the best you could do on your own then that tells me you are not a good shopper or negotiator. Nothing wrong with that - some people just don't know the in's and out's of this business and by your posts you clearly fall into that category. $1,000 is a HUGE spread on a car - if you go get quotes on the same car from two different dealers they should be within a few hundred bucks of each other. There just isn't that much profit in the new car sale itself anymore. (Hence the increased demand from dealers to get the financing, too.)
Truecar typically shows dealer incentives. Have you even looked at the site before you get all snarky and make remarks like "Mr. Wonderful internet shopper"? geez..
Truecar typically shows dealer incentives. Have you even looked at the site before you get all snarky and make remarks like "Mr. Wonderful internet shopper"? geez..
Yes, but Truecar only shows the "public incentives" - not ALL the incentives - that is my point. There are sometimes other incentives the dealer gets that the customer or Truecar doesn't know about. I don't understand why people find this so hard to believe. When you get a Truecar bid some or even all of these hidden incentives may have been passed along in the quote - but sometimes not. This is especially true when it comes to stairstep programs which really funk-up the whole process for everyone and creates crazy pricing games.
My tone with the other poster in large part due to him making arguments with me but not reading what I write. He's misquoted me several times in this thread alone.
Chances are the dealers around me will take a small loss to sell a Camry. They try to make up for it on financing and back end products. So they might pass on a deal from someone paying cash one using their own financing.
They will take a personal check from an in state resident.
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