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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.
I had a similar experience once. I was in a dealership during a "bank liquidation event" or some such nonsense. I was looking at a truck that was less than a year old with low miles and the sales guy kept coming back with ridiculous payments.
I asked him, several times, how much the truck was and he finally said that the price was "the loan balance" without telling me what the loan balance was so I left in what I showed up in and went home. I hopped online, lined up my own financing and worked out a deal with another dealership to buy a brand new truck (different make and model) for $8,000 under sticker.
That dealership was able to beat my financing so I took it and paid the loan off 4 years early.
Like I said before, I get that they make money of the financing, but is that worth kissing goodbye the entire sale??? And remember I was fine with the price of the car. No haggling there. Seems like cutting off your nose to spite your face...but that's just my opinion.
They DO make "kickbacks" and what not from financingg the ways they do..it is little skin off thier backs that you didn't take the sale as they will write more 'kickback loans" than your skinny loan is worth to them.
I would ask the next time, ASK WHAT the common rates they get for clients at the dealership, and then remark " Oh, thta's too high, I can get a better rate". THEN ask if they will take "Joe Blow's Financial Dreammakers" loan payments. IF nto, then you cna always say, "I'm going to shop around the local banks and credit unions {that you can join}myself o see what is available" and ask for the vin # to get you started at a local bank or credit union, once you find out what they are offering, you know what about you should be paying at the dealer, If it is too high, refuse agian,and go to the local institution. ACTUALLY do this step FIRST, then you know if the dealer's financing is a rip-off or not.
They don't like it when people want outside financing, or when paying cash and refusing their "extras"... especially if it can take a few days {even} to get their money. Plus they miss out on the kick-backs the lenders give them.
The last vehicle I bought with credit {I most often pay cash}, I told the dealer my income had dropped and It had been awhile since I had financed anything big {both of which were true}, and I'd NOT take any "extras', just wanted the price of the vehicle and sales tax as I "wasn't sure I'd qualify" {bogus: I knew I would}.Then I negotiated down the price by walking away that fisrt day and calling later to see what the deal was, He knocked it down by another $1,500, so it was worth it to wait. The financing..well THAT stopped the "Extras" they want to sell you that they also make extra money on. I naturally got a loan right away from a local bank and we were off to the races, only problem was it came out about 2% higher than I would have liked. {at the time, 6% was "normal", and my rate was 8%} That 2% probably was the "kickback to the dealer". I paid it off early and made extra principle payments all along, So I effectively "reduced the 2 percentage points down" anyway, in the end.
I DON'T like bying a car in the convoluted shady way they like to do business, that is why cash is better, I can better negotiate a price, even if i lead them to believe I'll finance, so they "knock a few more bucks off {thinking they will make it up with the financing}, then I wham them with "well, I'll pay cash" once the deal is written up. Don't rightly know if this helps or not.
Good luck to you in the future... Hope you enjoy your new cars!
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.
There are examples of someone not playing it straight in all walks of life.
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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.
You knew up front they were asking above retail. It wasn't a secret. I can understand the dislike many have in negotiating something. Personally, I enjoy it. They start high, you start low and you see if you can get to a point both sides are happy. I'm not going to tell anyone that dislikes buying something like that they are wrong but I enjoy it. My wife usually picks out the car she likes and then leaves because she also dislikes that part.
I've even done it with items not usually negotiated and now and then it works. When I was on the selling end I might have acted surprised at an offer but in reality I was never offended at an offer. It was a starting point and it was far better than the person not making any offer and leaving.
Don't take it personal. Act like you are sometimes, but don't actually take any of it personal. If you dislike the process, find a friend that does.
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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.
Despite what you believed you control that process as long as you are honest. If you have good credit you can refuse, be firm and say "no". Tell them you are there to buy a car, that your credit is fine, (it's good to know your score, tell it to them) and say you don't want every dealer in town running your credit until you've agreed on a price. If they hedge, walk. They aren't going to let you walk. To do well you have to be willing to walk.
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.
When I offered what similar cars in my area were selling for, the salesman acted like I had murdered his daughter.
As someone who has a really bad habit of buying a new (to me) car every year or so, I understand they are in business to make money and all of that. I do resent the fact that they act like they are doing you a favor by selling you a car.
As someone who has a really bad habit of buying a new (to me) car every year or so, I understand they are in business to make money and all of that. I do resent the fact that they act like they are doing you a favor by selling you a car.
You need to find yourself a salesperson in it for the long haul that doesn't jump from dealership to dealership. I was always very appreciative of repeat customers. You can also do better with less hassle. Call the person a bit before you want to buy and let him know what you want.
I realize not all dealerships are the same but I would be able to tell the guy who bought our used inventory that I needed a specific car. If the salesperson has a good track record with the dealer they will get one at the auction ( there is nothing wrong with auction cars in general). They knew I wasn't going to charge my repeat customer a huge profit but when you can buy a car, detail it and turn it in a few days a little less in profit is still a very good deal for all.
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.
How do you feel about consumers who put a Band-Aid on a serious problem in order to cover it up long enough to pass the car off on an unsuspecting dealership as a trade-in?
Some dealerships really are sleazy, but others are pushed into playing games by game-playing car shoppers. There's plenty of blame on both sides.
I wish there was a dealership where I could walk in, pay what they paid at auction for it, and just give them 2,000 bucks for their troubles. Seems like that would be much easier....
It was several years ago, but a friend of mine that sold cars at the time told me that he made a commission for selling a car and also a commission for the amount financed if they got it financed through their finance company. He said that he always tried to get people to go through their finance company even if they came in with outside financing, but he wouldn't sacrifice a sale to push it on people if they were happy with the terms of their own company. He did say that the vast majority of the time, the dealer's finance company could beat the terms that the customer got from their own finance company, but some people just didn't want to change companies since they'd already been approved through somebody else.
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...
However, they cannot repossess a car that you have already paid off with other financing or if your first car payment was submitted and accepted.
Just a thought.
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