New car buying saga

[Big Ace]

I’m sorry but this is not true. Dealers start paying interest on these vehicles as soon as they hit Dealership it’s part of there Floor Plan. They also don’t send them back if they can’t move them. They are stuck with them until it’s sold.
They do make money with the Service Department, but make more on the Sales Floor. Even after the the vehicle is sold, they get a rebate check from the manufacturer called Hold Back. Hold Back can range from $600.00 to over $2500.00 depending on how much the vehicle cost. Add in the F&I where they make a ton of money on the interest rate plus all the other add on’s they try to sell. It becomes very profitable. I know a few dealerships that actually will give up most of the Hold Back to move a unit at certain times of the year.

The ole front door and back door. This guy understands it. If you want the best deal on a vehicle be at the dealer at 5 pm on December 31. They will deal or pay the taxes on the inventory. $$$ for you.

[Black Ice]

The ole front door and back door. This guy understands it. If you want the best deal on a vehicle be at the dealer at 5 pm on December 31. They will deal or pay the taxes on the inventory. $$$ for you.

I’ve heard the old last day of the month deal on my last two vehicles. It wasn’t what I wanted but it was the best deal I found buying on the last day of the month.


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[txpitdog]

Success! Contacted the two dealerships that had the van in stock. Told both that I have a deal with a location that does not have it in stock but I will buy it today if they will match the price. One balked, so hung up with them. The other started with a BS line but then another salesman took over the phone and took the deal. I’ve also been looking for a new F150, and I guess the lady I’ve started talking with on that is sweethearts with the salesman that took my deal. They threw in the protection package as well. Was skeptical when I got there and had my game face on. No BS in sales....but then we got to finance. Who knows how many configurations and pricing options for the extended warranty and protection in case your head gets chopped off unexpectedly and your heirs can’t make your note. 45 minutes of that silliness and responded with a “no thank you”. Ok, on to “basic payment with no protection you poor ignorant fool”. Apparently the best my 806 credit score could muster was 1.5% over the rate I’d already qualified for before I got there. Now we’re playing hardball. Finance guy flat out said the price of the vehicle was to the extent that they could not go lower than his offer.

Goodbye.

You’re gonna get up and leave over a few dollars a month?

Yep, I’ll scour the interwebs tomorrow and get a really good deal lined up then come back.

How about I include the extended warranty and chopped off head protection?

Buh-bye

He claimed he couldn’t go any lower than 1.0% less but then lowered the cost of the vehicle further to offset the remaining 0.5% higher interest rate. My out the door was less, but lifetime cost of the car after interest was the same as if I got the interest rate I wanted.

I am really curious what the actual bare bones “NFW are we going any lower” price is, but I think I’m within $300. I think I might have gotten a little more off, but I alienated dealerships to get to where we ended up, so I think I did good.

Huge learning experience on this deal, and I’ve gone from being nervous and without confidence to knowing exactly how this game works and looking forward to grinding out a great deal on my next truck.

[Sunnylab]

I ALWAYS feel like I get ripped off when buying a vehicle. And I buy plenty.

[WItoTX]

I had that same go round. Good work OP. Always feels good when you do your homework and see the fruits of it! It also becomes fun.

Good luck with the truck.

[osochuck]

We get pre-approved through our credit union. This cuts out half of the car sales hassle. Don’t let them run your credit multiple times, that drops the score.

Get your own financing.

Then we email for out the door price. In and out under 1-1/2hrs including test drive. Three vehicles like that. Works great.


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[Big Ace]

Success! Contacted the two dealerships that had the van in stock. Told both that I have a deal with a location that does not have it in stock but I will buy it today if they will match the price. One balked, so hung up with them. The other started with a BS line but then another salesman took over the phone and took the deal. I’ve also been looking for a new F150, and I guess the lady I’ve started talking with on that is sweethearts with the salesman that took my deal. They threw in the protection package as well. Was skeptical when I got there and had my game face on. No BS in sales....but then we got to finance. Who knows how many configurations and pricing options for the extended warranty and protection in case your head gets chopped off unexpectedly and your heirs can’t make your note. 45 minutes of that silliness and responded with a “no thank you”. Ok, on to “basic payment with no protection you poor ignorant fool”. Apparently the best my 806 credit score could muster was 1.5% over the rate I’d already qualified for before I got there. Now we’re playing hardball. Finance guy flat out said the price of the vehicle was to the extent that they could not go lower than his offer.

Goodbye.

You’re gonna get up and leave over a few dollars a month?

Yep, I’ll scour the interwebs tomorrow and get a really good deal lined up then come back.

How about I include the extended warranty and chopped off head protection?

Buh-bye

He claimed he couldn’t go any lower than 1.0% less but then lowered the cost of the vehicle further to offset the remaining 0.5% higher interest rate. My out the door was less, but lifetime cost of the car after interest was the same as if I got the interest rate I wanted.

I am really curious what the actual bare bones “NFW are we going any lower” price is, but I think I’m within $300. I think I might have gotten a little more off, but I alienated dealerships to get to where we ended up, so I think I did good.

Huge learning experience on this deal, and I’ve gone from being nervous and without confidence to knowing exactly how this game works and looking forward to grinding out a great deal on my next truck.

You should've asked him for his "BUY" rate was. That would've blown his mind. Not that he would've shown it to you. They get you qualified for a certain interest rate. Let's say 2% for 60 months. Then they get you to sign for 4% for 60 months. That 2% that he overcharges you goes to the dealership. Plus they get a kickback from the bank for using that bank.

It is best to be prequalified with your bank for a certain amount, interest rate, and loan term. Go to the dealer and get the best price. Don't be afraid to walk out a few times. I usually tell them, skip the bs and give me your best price. I will give you one shot. I always leave when they tell me the price. 9/10 call me within an hour. I tell them on the phone, I told you to give me the best price and that I would give you one shot. They always come up with some BS story and try again. Now that you have the price that you want. Don't let them know that you are preapproved. Don't let them add anything on in terms of dealer add ons. Tint, chip, vin etching, low jack, floor mats, bed liner etc. Go into the finance office and decline everything. Let them run your credit. Let them offer you a rate. Sometime they beat your rate. If not, pull out your preapproval paperwork and call the bank. Or if you really want to jack them up. Take their rate if it includes incentives such as $500-$1000 rebate. As soon as you leave the dealer make the first payment. Refinance with your bank the same day. Win/win for you.

[BitBackShot]

I can't expend that much effort trying to save a few hundred dollars.

[WItoTX]

Take their rate if it includes incentives such as $500-$1000 rebate. As soon as you leave the dealer make the first payment. Refinance with your bank the same day. Win/win for you.

The rebates using their financing usually have penalties for doing what you said. I just bought a car two months ago. I am required to keep the loan until December. After that, I will just pay it off.

It's sad when you have cash to buy a car, but its cheaper to jump through the hoops of financing it for a certain time to save $1500.

[Big Ace]

The rebates using their financing usually have penalties for doing what you said. I just bought a car two months ago. I am required to keep the loan until December. After that, I will just pay it off.

It's sad when you have cash to buy a car, but its cheaper to jump through the hoops of financing it for a certain time to save $1500.

Most of the time the dealer will tell you that it is mandatory to keep the loan x number of months. Read the fine print. No prepayment penalties are just that. I've had finance managers lie to my face several times saying this same thing. I look through all of the paperwork before I sign it. If I don't like something then I don't sign it. If there are prepayment penalties then I don't sign it. Ever.