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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 first Toyota dealership sales guy immediately asked if his Finance guy could be allowed to match my rate. I said no. He wouldn't budge. He would not continue with the transaction until I agreed. Then after I still refused, he started acting as if he didn't know who my lender was. I pulled out my phone and called the lender up right then and there. He then grudgingly agreed that he did in fact, know who my lender was and that his dealership did business with them. Once my lender hung up, back he went to refusing.
I went with him ONLY because his finance guy did in fact beat the lender's rate. So my wife got a car (RAV4)
The car I wanted was at another dealership, but still Toyota. I went there, this time determined to not even give an opening to use their financing. Again same charade. This guy out right lied and said the dealership didn't use this lender. When I pulled out the phone again and called he then admitted that yes, they do use the lender, but then he kept saying I had to fill out their credit application. I asked why, as my lender said the opposite. Then he called his Finance guy down who said that "even though you have this lender's money, WE still need to pull your credit so that we can know 'who you are'. I said, well I can show you my drivers license, wouldn't that suffice? he said no, and returned my loan check. I left the dealership. So they were willing to let money walk out the door because it wasn't financed through them!!! Mindboggling to me. I mean I get that they make EXTRA money if you use their financing, but to lose sales completely? I was READY TO BUY right then and there. I didn't haggle over the price of the car. Was ready to go, and they let me walk!
Turns out it was a blessing in disguise as I needed to be home for other matters, but I would like to get myself a car, but dreading this. I really don't want to use dealer financing AGAIN, but is this non negotiable?
Most dealerships finance their inventory and have to pay off the cars fairly quickly after they sell them. It could be that Capital One makes it hard for them to get paid. If that's the case I don't blame them for not wanting to use their financing.
My question is, why the man love for some internet finance company? The first dealership was able to beat their rate, chances are the second one could have done the same.
If they can beat the rate you have, whats the issue? If you are financing why do you care who you issue your monthly payment to? I see no harm in seeing if they can give you a better rate. In the end it can only help you. Any legitimate bank will let you buy a car any where. If you are using a financing company that requires you to go to specific dealers, that should be a huge red flag.
Most dealerships finance their inventory and have to pay off the cars fairly quickly after they sell them. It could be that Capital One makes it hard for them to get paid. If that's the case I don't blame them for not wanting to use their financing.
My question is, why the man love for some internet finance company? The first dealership was able to beat their rate, chances are the second one could have done the same.
I had heard folks say that about Capital One. Ironically the dealership that said no was to UP2DRIVE, which is actually a BMW finance company. Supposedly with a rock solid reputation.
I read too many stories about the games played by the Finance Depts at car dealerships..."pretending" to lower your monthly payments on the front end while extending the months on your loan on the back end...and my personal favorite, letting you sign for one rate, only to call you back after you've had the car for two weeks talking about "the financing for the great rate you had fell through, you are going to have to come back in and get this MUCH HIGHER rate"...all true stories by the way. So getting my own financing was seen as the best way to avoid all the scams/games played.
If they can beat the rate you have, whats the issue? If you are financing why do you care who you issue your monthly payment to? I see no harm in seeing if they can give you a better rate. In the end it can only help you. Any legitimate bank will let you buy a car any where. If you are using a financing company that requires you to go to specific dealers, that should be a huge red flag.
I was wary of having both car notes be with one lender. Figured it would be best to have only one with one lender just in case. As for the specific dealers, most lending companies require this; you have to buy from "franchise" dealerships, not the mom and pop store down the street.
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.
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.
Last edited by Ibginnie; 03-16-2015 at 10:24 AM..
Reason: Profanity and rude
1) Why do you care who loans you the money?
2) Why are you talking financing with the sales guy?
3) up2drive = banking arm of BMW and there is no " auto loans company networks". It's like any other bank.
"Franchise dealership" = authorized dealer from the manufacturer, as opposed to an independent or dirtlot "dealership".
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.
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.
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.
Last edited by Ibginnie; 03-16-2015 at 10:24 AM..
Reason: edited quoted post
I read too many stories about the games played by the Finance Depts at car dealerships..."pretending" to lower your monthly payments on the front end while extending the months on your loan on the back end...and my personal favorite, letting you sign for one rate, only to call you back after you've had the car for two weeks talking about "the financing for the great rate you had fell through, you are going to have to come back in and get this MUCH HIGHER rate"...all true stories by the way. So getting my own financing was seen as the best way to avoid all the scams/games played.
I'm basically a math\financial expert.
They tried to do this to my fiance AND my freind. (Why they brought me along.)
Hey look! Lower payment! It took me about oh.....1 second to spot that.
So again, different vehicle than the one in the previous post...I let them drop the price while screwing her with a higher interest rate....then we paid it off via alternative lower interest sourcing.
Hell, I can pay cash for my own vehicles and I let them rape me on the financing. Push them down on price....then pay it off before the 1st payment is due.
1) Why do you care who loans you the money?
2) Why are you talking financing with the sales guy?
3) up2drive = banking arm of BMW and there is no " auto loans company networks". It's like any other bank.
"Franchise dealership" = authorized dealer from the manufacturer, as opposed to an independent or dirtlot "dealership".
Maybe this was a dumb thought on my part, but since I had just financed my wife's car this morning with the dealership's finance folk, I didn't know if they would be ready to issue another loan the same day to me. Or, since they gave me a GREAT rate on the first car, they then turn around and screw me on the next one. Since I had the outside financing at a good rate I thought why not?
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