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Rule number one. The dealer is always going to win. Rule number two. See rule number one.
Go to your credit union and get preapproved for X number of dollars, then start shopping. Tell them the car you want up front and that it will be cash, now what is their best deal ? You would be amazed how far apart dealers can be on the very same car.
Someone mentioned before not to go back there for service or they will try to screw me. It is a very old dealer in the area (like 90 years in business) do you think that is a possibility?
I suppose it is possible but I've never heard of this type of "retaliation" because it doesn't seem good for the service business side of the dealer. But then again, you should use a good independent mechanic to do your non-warranty work to save money anyways.
Don't go back? Unless the OP is planning on purchasing another car in a few weeks or months, by the time she goes back in 5-10+ years no one will remember her lol.
We bought our Honda and the dealer gave us an okay rate. However, after finding out our credit score, we decided to refinance the house and also pay off the car at the same time. Our new mortgage rate is lower than the prior loan we had. A few months later when the car was in for maintenance, I mentioned that to the sales person who wasn't pleased. I'm not sure how that would bother him but we did the refinancing just after we did the car loan through them.
Most dealers will add up to 3% on the APR, you might very well have gotten a 1.3-1.99% APR that they inflated to 4.3% APR, by giving you the instant gratification they're basically hedging their bets on you not wanting to go through the hassle of refinancing the loan.
Most of them do not keep the loan, they sell it, so they do not care whether you refinance.
They may also tack on origination fees, and other fees, costs or charges that they keep. Car dealers often make more on the finance deal than they make on the sale of the car. That is why it is a bad idea to walk into a dealership and proudly announce that you will be paying cash for the car. They will not give you as good a price as they will if they think you ae going to finance it. I know someone who takes this to the extreme, filling out a credit application etc and then finding something in the loan agreement to get angry about and then announcing he will just pay cash. Meanwhile he has negotiated a lower price based on their belief they will make a bunch of money on the financing. While I woudl not advocate that kind of deception, he claims it works and he gets lower prices.
We bought our Honda and the dealer gave us an okay rate. However, after finding out our credit score, we decided to refinance the house and also pay off the car at the same time. Our new mortgage rate is lower than the prior loan we had. A few months later when the car was in for maintenance, I mentioned that to the sales person who wasn't pleased. I'm not sure how that would bother him but we did the refinancing just after we did the car loan through them.
We also enjoy Beatthecarsalesman.com
He probably lost his commission off "selling" the finance, which could be up to and over $500
Quote:
Originally Posted by Coldjensens
Most of them do not keep the loan, they sell it, so they do not care whether you refinance.
The dealer still collects on their mark-up even if the loan is sold, the dealers we finance through keeps their mark-up even though we sell every single loan we write to our sister company.
Rule number one. The dealer is always going to win. Rule number two. See rule number one.
Go to your credit union and get preapproved for X number of dollars, then start shopping. Tell them the car you want up front and that it will be cash, now what is their best deal ? You would be amazed how far apart dealers can be on the very same car.
Don
I got $2k more on an insurance payout, 2 years and 25k miles after buying my car, I like to think I did ok.
On my newest one they made commission off the ESP and financing I suppose, but the finance charge over 5 years is $900 and the ESP was only $1100. Oh and $300 over cost on the car. All in all still pretty happy with it.
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