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Signing a piece of paper is not necessarily a bad thing or that they are ripping you off. Just don't sign any obligation.
I would go back to the dealer and just make sure you correctly compare their loan with your bank loan. There are loan calculators that will tell you the total amount you will have paid at the end of the term which is what you really should use when comparing loans. That way if they offer a different rate and different amoritization schedule to your bank's, you can do a valid comparison.
Dealers have a lot of flexibility in selling a car. They can lose money on a trade-in and write it off as a loss on taxes for instance. Because of this they can probably beat a bank if they want. You just have to be smart in how you deal with them. Don't let them wear you down or rush you.
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.
I used to think that way until I figured out you can get a better price on the car if you agree to finance it through them than by paying cash. When the first payment is due I send a check for the full loan amount, close out the loan, and cancel the lien on the vehicle. Some what of a hassle but worth a few hundred dollars at least.
I've also found it difficult to find a 1,2, or 3 year old vehicle for sale from a private seller. It seems vehicles like this get traded-in or repossessed and subsequently sold at a dealer only auction. Either way, you are back to buying from a dealer.
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?
As an accountant, you misunderstood. They can try to match or beat your bank's rate or you can decline.
You're overly suspicious and let it harm your experience. You must be very young
My last truck I went into the back room and before he tried to sell me I stated up front, "Say the minimum you need to say because I'm not getting any extras". Why waste any more time but they have to do their job. I really found it funny when he tried to sell me an extended warrantee. He stated that these vehicles are designed to start needing work at 36,000 miles so if I don't get anything else I should at least get the extended warrantee. I felt like walking out at that point and stating that I'd just go buy a Chevy or Ram then since he is stating that a ford truck is designed to fall apart after a couple of years.
On that truck I had my own financing lined up, as I always do and didn't mention that until after they tried their "monthly payment" tricks with high interest rates and long terms. Of course those reticules rates were "the best" they could do, even with my excellent credit. When I figured there was no more persuading them I mentioned the financing I had and of course they beat it, but a very small amount. Not really worth it but since they did the work I went through them.
As an accountant, you misunderstood. They can try to match or beat your bank's rate or you can decline.
You're overly suspicious and let it harm your experience. You must be very young
I think you're correct, and there are a bunch more on here applauding him because they don't understand either. At least that's what I'd bet. I think it's a shame that so many on here think he did the right thing, when what he did was make certain he wasn't going to find a better deal.
It's good to be careful, but it's also good to allow others to bid on your financing. My guess is they have to have your signature to get your credit rating. There's a reason for that, and I believe your credit rating can actually go down a little just because multiple creditors check on your credit, but they're not going to sneak in a loan without you knowing it, not unless they're really, really dishonest and you're really, really ignorant. (No offense intended.)
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.
That's exactly how I buy vehicles. I work seasonal and have health issues so I will figure out a longer term loan I'm happy with and pay it off early. If something comes up health wise or the season is a little slow (no work in winter) I only have to pay the minimum smaller payment. When doing good I pay extra towards principal with the goal that when it gets below ten that I owe, I pay it off! It has worked pretty good for me.
I think you're correct, and there are a bunch more on here applauding him because they don't understand either. At least that's what I'd bet. I think it's a shame that so many on here think he did the right thing, when what he did was make certain he wasn't going to find a better deal.
It's good to be careful, but it's also good to allow others to bid on your financing. My guess is they have to have your signature to get your credit rating. There's a reason for that, and I believe your credit rating can actually go down a little just because multiple creditors check on your credit, but they're not going to sneak in a loan without you knowing it, not unless they're really, really dishonest and you're really, really ignorant. (No offense intended.)
A "soft pull" is when they are checking eligibility and does not affect credit score. A "hard pull" is when you are actually applying for credit and can impact your score about 5 points. All such inquiries within 45 days are counted as one, though. If he had just secured his own financing then he probably had a hard pull on his credit within past 45 days so the dealership pulling another one would have had no impact.
cant tell from o.p. but was the signature needed to give permission to run the social-security thru the credit bureaus ?
also, wouldnt two variables be directly proportional so that if the interest rate and monthly are constant, so shouldnt the length ? (i guess they would increase the sale price ?)
Last edited by stanley-88888888; 01-31-2020 at 05:46 PM..
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