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I had my Social Security number used for credit checks decades prior to the Patriot Act. It was the closest thing to a national ID number we had. And still have.
I get that, but again, I ALREADY HAD FINANCING SET UP. I didn't need them checking my credit as I wasn't going to be applying for their financing. All they had to do was take my loan check and call it a day. But from the other responders, I'm getting the gist that the financing is more important than the sale for some dealers. I guess that's how it is.
yes ID I can understand. But they demanded my social to pull my credit also. Is that part of the Patriot Act too?
Quote:
Originally Posted by biafra4life
I get that, but again, I ALREADY HAD FINANCING SET UP. I didn't need them checking my credit as I wasn't going to be applying for their financing. All they had to do was take my loan check and call it a day. But from the other responders, I'm getting the gist that the financing is more important than the sale for some dealers. I guess that's how it is.
Thanks for yelling. I was merely answering your question which I bolded.
At the end of the day I don't give a rat's ass how you finance your car. I think you were foolish to walk out over them trying to get you to finance your car with them.
It could have all been forestalled had you just said, "I'm ready to buy this car. Are you ready, now, to sell it to me?"
You get your credit checked for a bunch of different reasons. I think you mentioned that the dealer actually could beat your outside deal. How much would that have saved you over the life of the loan?
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Quote:
Originally Posted by North Beach Person
At the end of the day I don't give a rat's ass how you finance your car. I think you were foolish to walk out over them trying to get you to finance your car with them.
I hardly think it is foolish. Some of us aren't willing to play dealer games.
I will go with my own financing 100% of the time. Dealers are reputed to have clauses in their finance contracts which are not consumer friendly. Why even take the risk? Bring your own cash and cut them out of the deal. They don't like it? There's another dealer who will deal with you.
I hardly think it is foolish. Some of us aren't willing to play dealer games.
I will go with my own financing 100% of the time. Dealers are reputed to have clauses in their finance contracts which are not consumer friendly. Why even take the risk? Bring your own cash and cut them out of the deal. They don't like it? There's another dealer who will deal with you.
They had the exact car he wanted. Apparently there isn't another dealer with what he wants.
I have to wonder what you guys do to have so much trouble at dealers. Really, I do. I've been buying new cars (and some used ones) for 40 years and have never had the issues some of you seem to have every time.
I've had my own financing and used the dealer financing (actually the last truck I bought last year the financing came through the dealer. Neither my credit union nor my bank could match it. In fact they even steered me from Ford Credit which was a couple points higher than Wells Fargo.) I've also paid full cash a few times. Never have I had the issues some of you have on a daily basis.
If the dealer makes a couple bucks handling the credit, so what? As I said, all he had to say was that he was ready to buy the car and were they ready to sell it. He would have been out the door with it in 30 minutes.
Some good back and forth here. But no one has been able to answer my original question. Maybe some dealers/car salesmen can chime in here; would a dealership willingly let a sale walk because of outside financing? Is it that big? I'm struggling to see how that can be. On a $25,000 car. I'm just making up numbers here so bear with me. If the dealership gets even $10,000 on financing, that still doesn't equate to losing the whole $25K altogether. So why? As I understand it, the manufacturers compensate the dealership on every car sold. It's not as if they don't get paid. They are just losing the gravy.
On another note, this also damages the reputation of outside lenders. I was reassured that the dealers I visited were part of their network and accepted their loans. Bull hockey. It would be interesting to know just what percentage of their loans actually do get accepted by the dealerships.
Finally the dealer that rejected my loan is still emailing me like crazy, saying they can work something out. HA!
Just because MSRP is $25k doesn't mean that's what the dealer paid. They pay invoice, which is less than MSRP. For example:
2015 Honda Accord
MSRP: $25,854
Invoice: $23,618
So dealer paid $2,236 under MSRP. Whats more, this car is selling for $23,627, which means a profit of $9 per car. So how do they make money? Financing. Not only do they get kickbacks from banks but they also jack up the rates to keep the interest for themselves.
Cars bring in the customers but it's financing that makes them money. Do you now understand why they don't care if a cash buyer walks?
Just because MSRP is $25k doesn't mean that's what the dealer paid. They pay invoice, which is less than MSRP. For example:
2015 Honda Accord
MSRP: $25,854
Invoice: $23,618
So dealer paid $2,236 under MSRP. Whats more, this car is selling for $23,627, which means a profit of $9 per car. So how do they make money? Financing. Not only do they get kickbacks from banks but they also jack up the rates to keep the interest for themselves.
Cars bring in the customers but it's financing that makes them money. Do you now understand why they don't care if a cash buyer walks?
They also get paid by the manufacture for number if units sold
They had the exact car he wanted. Apparently there isn't another dealer with what he wants.
I have to wonder what you guys do to have so much trouble at dealers. Really, I do. I've been buying new cars (and some used ones) for 40 years and have never had the issues some of you seem to have every time.
I've had my own financing and used the dealer financing (actually the last truck I bought last year the financing came through the dealer. Neither my credit union nor my bank could match it. In fact they even steered me from Ford Credit which was a couple points higher than Wells Fargo.) I've also paid full cash a few times. Never have I had the issues some of you have on a daily basis.
If the dealer makes a couple bucks handling the credit, so what? As I said, all he had to say was that he was ready to buy the car and were they ready to sell it. He would have been out the door with it in 30 minutes.
Sorry man, I wasn't trying to yell at you. I was trying to put in extra emphasis (should have just bolded the words instead ). I guess it was a new experience having the sales guy go from friendly to angry confrontational beast once he discovered I had my own financing. That's all.
This is my first time buying a car from a dealer. My first car which I bought in 2006, was an 01 Camry that I bought cash (and still chugging along 9 years later). Due to the rock bottom interest rates I was getting, after buying my wife's car, I though why not, and buy myself a new car too, but now, eff that. I'll just continue driving the 01 Camry, try to squeeze out a few more years out of it ("only" 212,000 miles right now), save up some money and buy my next car cash again. Screw the dealerships. Yep, my wife made a face when she heard that. lol.
Last edited by biafra4life; 03-14-2015 at 06:50 PM..
Just because MSRP is $25k doesn't mean that's what the dealer paid. They pay invoice, which is less than MSRP. For example:
2015 Honda Accord
MSRP: $25,854
Invoice: $23,618
So dealer paid $2,236 under MSRP. Whats more, this car is selling for $23,627, which means a profit of $9 per car. So how do they make money? Financing. Not only do they get kickbacks from banks but they also jack up the rates to keep the interest for themselves.
Cars bring in the customers but it's financing that makes them money. Do you now understand why they don't care if a cash buyer walks?
Invoice is not even what the dealer paid for the car ... there's holdback and other mechanisms that increases their profit margin. They make more than $9 even w/o financing. Heck, they have to pay the sales man $50-100 for a "mini" deal.
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.)
It is my understanding that paying with American Express Travelers Checks also eliminates the reporting requirements.
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). I guess it was a new experience having the sales guy go from friendly to angry confrontational beast once he discovered I had my own financing. That's all.
