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I was just curious because this happened to me on my very first visit to a dealership to buy a car.
Due to my research beforehand, I had shopped around and secured my own car financing from a bank before going into the dealership, with very good terms due to excellent credit.
After selecting a car and test driving it, it was time for the purchase. The sales man upon hearing that I had my own financing, strongly urged that I at least allow the dealership to match the terms that I had. I agreed. Then the salesman did something I thought was weird. He went up to the sales manager's office, then came back with a piece of paper. On it he explained that he knew "for sure" that the dealership could match the interest rate and the monthly payment, but he didnt know about whether they could match the number of years. He would go and find out in a second but he first needed me to sign the paper.
I refused, since signing it would make it legally binding, and being an accountant, I knew that if the number of years the dealer offered was more than what I had secured, it could make the overall car price unfavorable to me financially. I asked repeatedly why he couldnt give me all the terms now. He kept refusing, saying that I had to sign the paper first before he could reveal what the final terms were. This got me suspicious and I ended up walking out.
Is this normal? If they couldnt match my terms then why not just say that and not waste everybody's time? I'm curious to know if anyone else has gone through this before, and was I over reacting by not signing the paper?
I agree with jcp . They like to play games. Their goal is to wear you down so that eventually you'll just give up and sign whatever they place in front of you.
Old, old, old sales tactic. Once you’re willing to sign something, with more follow on tactics you’re most likely to sign the final deal. The odds are in their favor.
Yes, that's a game that can be played at some dealers. I would have walked out, too. They were trying to get you to own their deal, so that you would acquiesce to their terms. I'd go to their competitor with your financing, and get their best offer. You can then play them off one another, to see if the original dealer will have a hassle-free transaction and sweeten the deal, even if they only give you all season floor mats or a car cover, get something else, if no reduction in price.
__________________
All the world's a stage, and all the men and women merely players: they have their exits and their entrances; and one man in his time plays many parts, his acts being seven ages.
~William Shakespeare (As You Like It Act II, Scene VII)
I haven't seen the old school negotiation and tactics for >20 years. The last 3 cars bought in past 15 years were very smooth no haggling "internet sales".
The paper they want you to sign is not a contract. It probably just have some #. It is ok to sign that.
However, in this case, I believe they want you to focus on the monthly payment, then rip you off on the total price. That is why they say they can match the interest rate and monthly payment. If the term is longer, then you are paying more for the car. So might as well walk and not waste your time. I suggest you do your online research on the price for the car. Then you can focus on price and use your loan.
I was just curious because this happened to me on my very first visit to a dealership to buy a car.
Due to my research beforehand, I had shopped around and secured my own car financing from a bank before going into the dealership, with very good terms due to excellent credit.
After selecting a car and test driving it, it was time for the purchase. The sales man upon hearing that I had my own financing, strongly urged that I at least allow the dealership to match the terms that I had. I agreed. Then the salesman did something I thought was weird. He went up to the sales manager's office, then came back with a piece of paper. On it he explained that he knew "for sure" that the dealership could match the interest rate and the monthly payment, but he didnt know about whether they could match the number of years. He would go and find out in a second but he first needed me to sign the paper.
I refused, since signing it would make it legally binding, and being an accountant, I knew that if the number of years the dealer offered was more than what I had secured, it could make the overall car price unfavorable to me financially. I asked repeatedly why he couldnt give me all the terms now. He kept refusing, saying that I had to sign the paper first before he could reveal what the final terms were. This got me suspicious and I ended up walking out.
Is this normal? If they couldnt match my terms then why not just say that and not waste everybody's time? I'm curious to know if anyone else has gone through this before, and was I over reacting by not signing the paper?
Normal sales tactic. I'm lucky because I understand the math and the present and future value of money. You did the right thing in walking out. They were trying to make more money off of you with the financing.
Unfortunately, there are people who don't understand these concepts and get duped.
Another pat on your back for walking out, that is where the power of the Consumer dwells. Personally, I would simply tell the dealer that "you do not need financing", and if pressed, tell them you will be presenting them with a cashier's check for the vehicle, and it's none of their friggin' business where the money is coming from; you are there to purchase a car, not financing. Only sign the final agreement, and look it over carefully beforehand, and never leave any blank spaces on the contract "to be filled out later". Be polite but extremely firm, especially when you get into the business manager's office, you don't need ANYTHING that he is selling. You will always have a chance at a later date to purchase an extended-warranty, polyrazmatazz paint sealer, or any other junk add-on at a much lower cost, if you really want them, after you've owned the vehicle for a few months. Also, if you can afford to do so, my advice is to rent the same model vehicle you plan on buying and take it on a weekend trip, to see how comfortable the seats are, etc., a test drive around the neighborhood is never enough to discover a vehicle's "quirks". Plenty of videos on YouTube on new vehicle purchasing - as I'm sure you know already, education is your friend in this world.
I was just curious because this happened to me on my very first visit to a dealership to buy a car.
Due to my research beforehand, I had shopped around and secured my own car financing from a bank before going into the dealership, with very good terms due to excellent credit.
After selecting a car and test driving it, it was time for the purchase. The sales man upon hearing that I had my own financing, strongly urged that I at least allow the dealership to match the terms that I had. I agreed. Then the salesman did something I thought was weird. He went up to the sales manager's office, then came back with a piece of paper. On it he explained that he knew "for sure" that the dealership could match the interest rate and the monthly payment, but he didnt know about whether they could match the number of years. He would go and find out in a second but he first needed me to sign the paper.
I refused, since signing it would make it legally binding, and being an accountant, I knew that if the number of years the dealer offered was more than what I had secured, it could make the overall car price unfavorable to me financially. I asked repeatedly why he couldnt give me all the terms now. He kept refusing, saying that I had to sign the paper first before he could reveal what the final terms were. This got me suspicious and I ended up walking out.
Is this normal? If they couldnt match my terms then why not just say that and not waste everybody's time? I'm curious to know if anyone else has gone through this before, and was I over reacting by not signing the paper?
Of course they play games. The whole back and forth to the "boss" is a part of the show. Shifting numbers, changing terms, adding extras, surcharges and fees.
Not many customers know exactly about those. So, they try.
Most people go to the dealer and say: I like this car but I don't want to pay, say - more than $400 a month. So they stretch the payments. Nowadays 72 or even 84 months payments aren't new. People want expensive cars with many extras, but they don't want big payments. The money has to come from somewhere, right?
The moment they would start that with me, I would just walk out, though. There are millions of cars for sale, and dozens of dealers in most areas.
They want your business not the other way around. I bet he would run after you and change the game, because they always make money on their sale. On some customers more, on other less. But if you walk out, they don't make any.
There are many tutorials on the net how not to be a sucker..
I was just curious because this happened to me on my very first visit to a dealership to buy a car.
If one is unfamiliar with the purchase of any new car - take along a relative, friend, co-worker - who knows about such.
If you already have financing agreed upon - then ASK the new car dealer for a copy of the dealers financing documents so that you can take back to your financing facility and review. If the new car dealer balks. Then end the conversation.
I was with a friend who was purchasing a new Infinity 4 door sedan for his wife. The Infinity dealership offered a "Nissan" extended warranty for $1,800. AND, if he filed no claims - he would get the entire $1,800 back at end of extended warranty term. Neat. Right?
So I asked my friend to go into dealership office and get a copy of this Nissan extended warranty. So we could READ it. Opps. They had no copy. But he was promised that it was a "Nissan" warranty and that he would get his money back if no claims filed.
I suggested that he not sign anything. And have the Infinity dealership send/mail him a copy of the extended warranty. THEY NEVER DID.
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