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I find it intriguing, OP, that nowhere did you say you actually READ the paper the salesperson wanted you to sign.
DID you read it? If so, exactly what was it? If you didn't read it, WHY NOT??
As for the term, why worry? Go ahead and sign up for the dealer financing, IF there is no prepayment penalty. Make the first payment, then go to your financial institution and get the financing to pay off the dealer lender. Now, you have the vehicle you wanted, and the financing you wanted, and the dealer has the sale but nothing more.
Yes, dealers like to play games. However, the customer can play games, too!
You did well to walk away, as so many people get to invested in and excited about getting a new car that they fall prey to tactics used by the dealership. We've had multiple experiences of a dealership agreeing to the terms - monthly payment and # of years, only to discover the terms had been changed on the contract. They must think the buyers are going to be so giddy that they're not going to read the contract terms before they sign.
It's my understanding that these dealerships make money on the financing, so they will most likely try to get you to take a loan that they secure for you through them. We've also gone with our own financing but have sometimes been offered more favorable terms (most recently, 0% financing through Ford) through them, which we have taken.
With your good credit, most dealerships would love to sell you a vehicle, so I'd keep looking until you find one that doesn't play the games.
YIt's my understanding that these dealerships make money on the financing, so they will most likely try to get you to take a loan that they secure for you through them. We've also gone with our own financing but have sometimes been offered more favorable terms (most recently, 0% financing through Ford) through them, which we have taken
Yes, my BIL has a car dealership, and the financing portion of it is the profitable part. Sometimes he takes a bath on the car itself but then recoops some of the loss on the financing.
And once you sign a deal, get prepared for another sales person to try to get you for add-ons - extended warranty, paint protection, glass protection, tire protection, etc.
I recently bought a CPO car for cash. Besides trying to get to to buy some BS add on's, he tried to sell me an extended warranty...WHAT??? It's a CPO. It has a 5 year warranty.
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?
They probably did need your signature to pull your credit.
And if you're an accountant you'd know that paying 2.5% on a 3 year loan vs 2.5% on a 5 year loan makes no difference if you pay it off in three years.
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?
Yeah, it's normal. It's the rule not the exception. You were wise to refuse to sign. You were wise to get up and walk out.
I'm surprised that the salesman didn't follow you out to the parking lot to get you to change your mind.
We are brand loyal to Subaru. However we are not brand loyal to the local Subie dealers, who all add $995 to MSRP for 'paint protection' and an additional $2K for 'market price adjustment' or extended warranty and won't negotiate back down to MSRP.
For the last Subaru we bought, we took a 600 mile round trip to Jacksonville to get it in the name of saving $5K total on the transaction. (The dealer there not only had no junk fees but would also come down on MSRP)
That's why I always use cash and am prepared to walk. Car dealers are scum just trying to sucker the next person in the door with their BS financing. It's worth the effort to find a good clean vehicle a few years old from a private seller and let them take the butt kicking on depreciation.
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.
The four square sales technique is a classic - this provides tips for dealing with it:
Focus on one thing at a time, and get agreement - then stick to your guns when they try to fiddle with the numbers. "We already agreed to the trade-in price, now we're talking about financing - and I brought my own financing". If you go in with financing, that takes one square off the table.
And don't fall for the undercoating and other add-ons they try to sell.
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