BUYING A CAR SOON??? MY GIFT TO YOU
Well this is it for car buying. If you are or will ever buy a car from a car dealer im your guy. Im a sales manager for a car dealer. Thats what i do. I have been in this field for 12 years. sold for 2 yrs was the finance manager for 6 yrs and sales mgr for 4 yrs. I know it all. "Will i get a better deal if i pay cash"...NO!!! you will not...they may say that to make you happy...but NO!!!...WE make more money if you finance..HOW??? EASY...RESERVE..Say your rate is 5.9% with the bank..they come back and tell you 7.59%..You think its a good deal on that 2006 h2 or whatever..here is what happend. You just got charged 2 % reserve on your car purchase..what that means to us is right around 1700.00 on a 21,000 loan. Or 29.00 on your payment on a 60 month loan. 40K-50K loan with 2 % reserve 2400.00 to 2850.00 Trade in...owe money...leave it out of the deal till YOU GET A REAL NUMBER ON THE NEW ONE YOU BUY... That way they cant mess with the numbers and you know what the real deal is...If your credit is good you know it is. Dont let them tell you otherwise.NEW CAR WARRANTIES....NO!!!!!!!!!!!! You have 35 months and 29 days to get one..Why..3ys 36,000 mile warr...You can buy this warranty when the manufacter is done up till the day before...thats right any make any model.....why finance a warr for 60 mo when it only covers 2 yrs??? waste of cash....WARRANTIES...ARE GOOOOOD!!!!! Cost as follows...USED CARS...2002 NEWER... LESS THAN 50,000 mile...700.00 to 1100.00 dollars...dealer cost...NEW....Dont do it..You might not keep it for that long..Why pay for it???...CREDIT BAD???? well its ok, seems to be more comon now a days..This is the real azzz ripin for you. DEaler feels he can take advantage of you because of that. JUST A NOTE....If you get approved with bad credit at a dealership you can most likely get the same approval down the road.. Dont go to the first dealer and think thats it...COULD COST YOU THOUSANDS...I COULD GO ON AND ON..IF THIS GETS RESPONSE I WILL POST MORE...ANY Q LET ME KNOW????
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If your credit is good, go to your bank. Get the finance secure there. Could save thousands.... 0 -
ok so lets say you have good credit and they offer that 7.59% how do you go about getting it back down to the 5.9% [?][?][?] 0 -
quote:Originally posted by tazzer
ok so lets say you have good credit and they offer that 7.59% how do you go about getting it back down to the 5.9% [?][?][?]
By the sound of it, you go somewhere else. The dealer's tacking on the extra percentage themselves in order to make more money. When in fact the banks actual rate was 5.9.
When I was 19, I was probably a victim of exactly that. I got one for 9.6% and had it for 2 years. 23k loan. I didn't have a credit history so I paid for it.0 -
quote:Originally posted by vess1
quote:Originally posted by tazzer
ok so lets say you have good credit and they offer that 7.59% how do you go about getting it back down to the 5.9% [?][?][?]
By the sound of it, you go somewhere else. The dealer's tacking on the extra percentage themselves in order to make more money. When in fact the banks actual rate was 5.9.
the only thing is dont most of them do the same thing.0 -
BTW, thanks for the tips, dkb. That's pretty interesting.
Do you think some of these companies are pricing themselves out of the market?
That brand new Silverado 1500, Z71 reg. cab with 4 miles on it, back in 2000 was sticker priced at 26k.
I looked at a new 07 tonight. Same thing but didn't have two tone paint like my 2000 did. New 07, Silverado 1500, reg. cab Z71, same 5.3L V-8 as my old one:
OVER 30k! For a regular cab! That's the first time I've ever seen that.
Is inflation biting us that hard or is a regular cab worth 30k + now? Or are they that much better? They do seem to be bigger and it could take E85.
I love that truck but I'm 4 months away from not having a $400+ vehicle payment for the first time in over 7 years. Just don't have it in me anymore to want to take on another one.
You guys will just have to target the next naieve college grad.0 -
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the only thing is dont most of them do the same thing.
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Not trying to take over this guy's thread but I think the key is to get a loan approved for what you want, between you and a bank BEFORE you go to the dealership.
That way, you don't need to rely on them and essentially you cut out the middle man.
This can also be used to your benefit as you can expalain to them that your bank has only approved you for 20k (or whatever) so if they can't give you the vehicle you want for that, you'll just have to move on. Some will let you go. Others will come to the table.0 -
If you need to borrow money, for a car or any other reason, your best bet is your Credit Union or USAA. If you're not a member of a Credit Union or USAA, then the bank. If you can't get a loan from your Credit Union, USAA or your bank, you probably can't really afford to borrow money. 0 -
I agree with James RK, however I have somewhat a different situation. Last year when I had to give up my job due to my military service disabilities, and the time it takes to fight the VA, I got way behind on bills. I lost a new vehicle to repossesion and had to end up filing bankruptcy. Right now I have the worst credit I have ever had, but soon finacially we will be in excellent shape. No debt other than the Mortgage. Is it possible to get financing after bankruptcy? 0 -
Since nunn has brought this up himself I guess it's OK to mention it. I hope so anyway.
nunn said he went through a similar situation. He could probably answer most of your questions.0 -
Credit unions have saved me LOTS of money, financing vehicles.
Doug0 -
quote:Originally posted by sarge_3ad
I agree with James RK, however I have somewhat a different situation. Last year when I had to give up my job due to my military service disabilities, and the time it takes to fight the VA, I got way behind on bills. I lost a new vehicle to repossesion and had to end up filing bankruptcy. Right now I have the worst credit I have ever had, but soon finacially we will be in excellent shape. No debt other than the Mortgage. Is it possible to get financing after bankruptcy?
Didn't it feel good to get them off your back though? [^]
You will flooded with mail in credit card offers soon if not already. (unless youve placed yourself on the "do not want junk mail" list. Yeah they won't be at the rates you used to get but the high interest on the inital card can be "tinkered" with after a year or so of "good" ontime payments. DON'T GO OVERBOARD HERE! Pay the first one off over a few months to establish a record. Then pay in full in 30 days or whatever the cycle is on it. Small amounts don't hurt anything its the record of payment that counts. Don't be afraid to ask for better interest on credit cards once you have established a record with them. Or to take out a better card and transfer over the original balance to it. Your local banks are the best place to see about auto financing because they are going to stay in the area and need the customer base. Be prepared to run into the occasional azzwipe that'll give you the "OMG your carrying a bankruptcy" line. Take it with a grain of salt and find another. Bankrupcys no longer carry the stigma that they once did. They are common now. If lenders didn't want to deal with folk with em they would lose a lot of business. Auto loans are fairly easy to get if your a homeowner as your not likely to scram on them and the car is worth something as collatoral.
BTW I would never pay more than whatever the bank says they will loan on a automobile. THATS the starting point. Up or down from there. NOT "you need a downpayment to get to where the loan will fly"
If youve got cash don't let them know till the papers are in front of you and clearly understood. (read them and question anything you don't understand don't take the finance guy's word for it) For some reason this really pizzes them off. [:D]
dkb why are dealers so fond of the "up the creek" or "turned over" phrases? Seems no matter what you owe on a tradein thats what you hear. Even if it is just the last payment. (just wondering) I do understand that some folk get royally shafted and end up owing twice what a car is worth. Do they just not want a tradein? Is it a pita?
Allen0 -
I do not like all the generalized statements about dealerships. I work for a local dealership right now to make some extra cash.
I will tell you this right now...I am 100% honest with my customers. I will show them what invoice is (actually show them the invoice), show them what I have in a used car...they have to trust me there, but I have never once lied about it. I also tell them if I have any rate in the loan. (BTW in the state of Indiana you are only allowed a max of 2.5 points of rate. If you get a 15% quote you are not going to get 5%....your credit doesn't qualify.) My finance manager has to make money and I have to make money...otherwise why the heck are we in the business. I let my customers decide how much profit they are willing to pay. They know everything so they can make an informed decision. I get paid 100% by commission so I need some profit somewhere and so does he. I only get paid on the front of the deal and he only get's paid on the back.
I would much rather that people are up front and honest with me so I can actually try to help them get accomplished what they are trying to get accomplished. I want them to have the car as much as they do.
I may be something rare, but I am not going to lie to you and I am going to try my best to make it work out for you. As long as you give me all the information and I give you all the information we are both all out on the table and going to work out the best deal for both of us.
dkb2003....I don't know where you have worked, but it sounds like you need to work some place where they have a more see through process and not afraid to tell the customers the truth. I know I am sure as heck not. I know I have the best lines for the average person in the world...so I am not scared....why are you? I have made more money telling people the truth and had a heck of a lot more repeat and referral customers (the way I make more money)than any of the guys I know at the dealership down the road.
There are always two sides to everything...and over generalized statements are always B.S. The best way to avoid that is to always use the phrase...Most of the time...but there are still some that don't.
So I guess if you actually want to buy a new car...want to get a good deal...and KNOW you have gotten one too...come see me and I can help you avoid all of the games that he is trying to make you play. I'll lay my cards out on the table and I hope you will too. After you pic out your car I will have you in and out (Negotiation, Finance, and Delivery) Monday - Friday in about an hour!!!0 -
quote:Originally posted by ReserveWCSOjrw
I do not like all the generalized statements about dealerships. I work for a local dealership right now to make some extra cash.
I will tell you this right now...I am 100% honest with my customers. I will show them what invoice is (actually show them the invoice), show them what I have in a used car...they have to trust me there, but I have never once lied about it. I also tell them if I have any rate in the loan. (BTW in the state of Indiana you are only allowed a max of 2.5 points of rate. If you get a 15% quote you are not going to get 5%....your credit doesn't qualify.) My finance manager has to make money and I have to make money...otherwise why the heck are we in the business. I let my customers decide how much profit they are willing to pay. They know everything so they can make an informed decision. I get paid 100% by commission so I need some profit somewhere and so does he. I only get paid on the front of the deal and he only get's paid on the back.
I would much rather that people are up front and honest with me so I can actually try to help them get accomplished what they are trying to get accomplished. I want them to have the car as much as they do.
I may be something rare, but I am not going to lie to you and I am going to try my best to make it work out for you. As long as you give me all the information and I give you all the information we are both all out on the table and going to work out the best deal for both of us.
dkb2003....I don't know where you have worked, but it sounds like you need to work some place where they have a more see through process and not afraid to tell the customers the truth. I know I am sure as heck not. I know I have the best lines for the average person in the world...so I am not scared....why are you? I have made more money telling people the truth and had a heck of a lot more repeat and referral customers (the way I make more money)than any of the guys I know at the dealership down the road.
There are always two sides to everything...and over generalized statements are always B.S. The best way to avoid that is to always use the phrase...Most of the time...but there are still some that don't.
So I guess if you actually want to buy a new car...want to get a good deal...and KNOW you have gotten one too...come see me and I can help you avoid all of the games that he is trying to make you play. I'll lay my cards out on the table and I hope you will too. After you pic out your car I will have you in and out (Negotiation, Finance, and Delivery) Monday - Friday in about an hour!!!
If I was looking for a vehicle I Would look you up.0 -
My rules getting the most for my money.
I NEVER buy new. I just can't swallow the depreciation on a new vehicle once it leaves the lot.
I research values on what I want and what I have.
I NEVER trade my old car. I sell it myself in the newspaper or on e-barf.
I shop for the best interest rate on a loan.
I buy from individuals (newspaper, e-barf, etc) whenever possible.
It takes a lot more footwork and research, but it's worth it to me0 -
Our oldest will be 16 this December....and with our "luck" at least ONE of the cars we have will need to be replaced at the same time we are looking at needing to get her something. I am about to be a dealerships play thing.....I can't stand the thoughts of it! 0 -
quote:Originally posted by bigtire
My rules getting the most for my money.
I NEVER buy new. I just can't swallow the depreciation on a new vehicle once it leaves the lot.
I research values on what I want and what I have.
I NEVER trade my old car. I sell it myself in the newspaper or on e-barf.
I shop for the best interest rate on a loan.
I buy from individuals (newspaper, e-barf, etc) whenever possible.
It takes a lot more footwork and research, but it's worth it to me
I buy off of Fleabay. Used. Cash. Deals..0 -
What I want to know is how much below invoice a dealer can actually go. Dealers always show the invoice and give it to you for that or like $100 below and have you believe they are losing money on the deal - like you said, you are in business to make a profit. I have always been told that the invoice is a joke number and should not be considered in the deal at all.
American cars have the biggest markup and I always thought a "good" deal is 10-15% below MSRP. Foreign cars have a lot less markup - maybe 5% below sticker would be good (depends on the car - SUVs have a LOT of markup - expect up to 25% below sticker, foreign or domestic).0 -
quote:Originally posted by slipgate
What I want to know is how much below invoice a dealer can actually go. Dealers always show the invoice and give it to you for that or like $100 below and have you believe they are losing money on the deal - like you said, you are in business to make a profit. I have always been told that the invoice is a joke number and should not be considered in the deal at all.
American cars have the biggest markup and I always thought a "good" deal is 10-15% below MSRP. Foreign cars have a lot less markup - maybe 5% below sticker would be good (depends on the car - SUVs have a LOT of markup - expect up to 25% below sticker, foreign or domestic).
Dealers get what is called holdback from the manufactures. They actually do pay envoice for the car on the lot. But at the end of the year they get back a percentage of envoice price based on the number of cars they have sold. It can run anywhere from 3% to 10%. So the bottom line is that they do not end up paying envoice for the car in the long run. But they are not lieing when they tell you that envoice is what they paid for the car. They just don't tell you about holdback.0 -
Well , this is just one of the reasons that car dealers/salemen are considered SCUM !!! and the sad part is that most people are not smart enough to not play the game , I own three (3) vehicles sitting in my drive right now , all paid for (CASH!) with none of the scams and games that the dealers/saleman play ...like the DOC fees , SCAM!
at least Im in a profession that I can be proud of !!!!!!!
Sincerely !
d.a.stearns
Gunsmith / LEO
Niota , Tn0 -
Hey Reserve. Whatcha got in a very low mileage Dodge ram 4x4 super cab? I don't care what color just as long as it's red!! 0 -
quote:Originally posted by Rosie
Hey Reserve. Whatcha got in a very low mileage Dodge ram 4x4 super cab? I don't care what color just as long as it's red!!
Rosie....Sorry, but I actually don't have any Dodge Ram's that are low mileage right now. The problem is that our used car director will not allow us to take something like that in on trade right now because of gas mileage. We have to call and get buy bid's (basically have another dealership buy it from us) and sell it to them before we actually trade for it. We are not allowed to take anything that is considered low gas mileage....(15 city or less). I wish I could help....I'll keep my eyes open though!!!!0 -
quote:Originally posted by bigtire
quote:Originally posted by slipgate
What I want to know is how much below invoice a dealer can actually go. Dealers always show the invoice and give it to you for that or like $100 below and have you believe they are losing money on the deal - like you said, you are in business to make a profit. I have always been told that the invoice is a joke number and should not be considered in the deal at all.
American cars have the biggest markup and I always thought a "good" deal is 10-15% below MSRP. Foreign cars have a lot less markup - maybe 5% below sticker would be good (depends on the car - SUVs have a LOT of markup - expect up to 25% below sticker, foreign or domestic).
Dealers get what is called holdback from the manufactures. They actually do pay envoice for the car on the lot. But at the end of the year they get back a percentage of envoice price based on the number of cars they have sold. It can run anywhere from 3% to 10%. So the bottom line is that they do not end up paying envoice for the car in the long run. But they are not lieing when they tell you that envoice is what they paid for the car. They just don't tell you about holdback.
Not 100% true. That may be the case with some car lines, but that is not the case with Toyota. We do have a dealer holdback....and our dealer principal gets paid that money at the end of the month. My manager's and myself never see that money and we don't get paid on that money. When I have to sell a car for invoice I make NOTHING in commission.($50 mini..I would have to sell a heck of a lot of cars if they we all $50 minis) So as far as my managers and I are concerned the holdback means nothing to us. If my customers ask me about it I tell them about it, but I don't get paid off of it, so what do I care about it..........
ABCGUNS2....I am not SCUM...never plan to be. I am an LEO and a Car Salesmen and I am D..A..M..N.. proud to do both. I am able to sleep at night becuase I know I am not SCUM....read my post again about how I do business and then tell me again that I am scum. If you can come buy a car from me...see the way I do the process you would understand that not all of us are SCUM....some have given all a bad name. That would be like calling ever LEO a d..i..c..k. I know I am not that when I am in uniform and I don't think that you would be...so don't make a gross over generalized statement.
Doc fees are not crap in my dealership. It is how we pay our Title Clearks' salary. We have to pay a lot of people off of the vehicle that you buy.....I think of everyone involved....the buyer only thinks of themselves...unless they buy from me. We work things out for the best for both of us! I am a PROFESSIONAL...and Proud to be a Professional Sales Associate...and a Profession LEO!0 -
2005 Tahoe Fully Loaded Z71 Package 25000 miles .. leather , tow package, 6 CD, sun roof .. whats it worth on a trade ?
Consumer reports gives no love at all to our domestic vehicles its all about the foreign stuff .. whats your take ?0 -
quote:Originally posted by MFI
2005 Tahoe Fully Loaded Z71 Package 25000 miles .. leather , tow package, 6 CD, sun roof .. whats it worth on a trade ?
Consumer reports gives no love at all to our domestic vehicles its all about the foreign stuff .. whats your take ?
Unfortunatelly the Domestic suppliers did that to themselves. When they offered that employee pricing for all it made all of the used ones out there worth a lot less more. And right now the imports (Honda and Toyota) are all the craze. So they just aren't brining on trade what they use to. And with Gas prices going back up it is going to hurt something like that even more.
I would look on Edmunds.com and where they have the used car section there is a link that says appraise a car. You can do that...but be honest with the condition of the vehicle, and all of the equiptment. It will give you trade...private party value, and retail value.0 -
That's why I don't tell them I'm paying Cash until after I negotiate the Price. Good luck getting them to put the price on paper though. I paid 15K for my '99 Ranger New when the Sticker-price said 19K. Got my Current vehicle, a used Explorer for 1K. Can't wait till those New Camaro's come out. 0 -
quote:Originally posted by ReserveWCSOjrw
Not 100% true. That may be the case with some car lines, but that is not the case with Toyota. We do have a dealer holdback....and our dealer principal gets paid that money at the end of the month. My manager's and myself never see that money and we don't get paid on that money. When I have to sell a car for invoice I make NOTHING in commission.($50 mini..I would have to sell a heck of a lot of cars if they we all $50 minis) So as far as my managers and I are concerned the holdback means nothing to us. If my customers ask me about it I tell them about it, but I don't get paid off of it, so what do I care about it..........
Doc fees are not crap in my dealership. It is how we pay our Title Clearks' salary. We have to pay a lot of people off of the vehicle that you buy.....I think of everyone involved....the buyer only thinks of themselves...unless they buy from me. We work things out for the best for both of us! I am a PROFESSIONAL...and Proud to be a Professional Sales Associate...and a Profession LEO!
I was speaking from my experience as a salesman at a Dodge/Mazda dealership about 15 years ago. I understand that a salesperson does not see a penny of holdback. I was attempting to answer Slipgate's question about how dealerships can offer a car at $100 below cost. So I was right, you don't tell them about it... unless they ask. You don't get paid from factory warranties either... but I'm sure you tell them about those. And don't forget the extended warranty, many sales associates get a commission on those don't they?
Does your claim to being a professional also imply that you are ethical?
Do they still use the term "rollover"? Thats what we used to call someone who came in and said "I'll take it" without negotiating on the price. I'm sure it's happened to you. Tell me, don't you get a thrill when that happens? Don't you rush to get the paperwork done hoping all the time the person won't come to their senses?
I've been there. I've seen how dealerships work.
That is why I choose not to buy from them.0 -
Cool read, I'm not in the market for a car for a few more years (I want mine to hit 80,000 miles first) but I'll keep it in mind when the time is right!) 0 -
A word about those so called "invoices" - my ex once had a job with a Scottsdale Az upscale Caddy dealership typing false invoices to show the customers -- buyer beware! Lawyers and car salesmen, don't ya just love 'em. 0 -
Does it ever make sense to trade in a car? My neighbor does it and I think he gets ripped every time. 0 -
Just in last 2 weeks, at same dealership. I purchased a new 07 dodge ram 2500, quad, 4x4, hemi, Patriot blue. Chyrsler financed at 8.0%. 4 days later, i traded the our 01 grand prix, 99 ram, 96 suburban towards a new 06 durango, awd, hemi, slt. Chrysler gave us 0% financing. Both vehicles were bought at invoice plus our suppliers discount( we work at cummins). The durango was 300 miles away and he explained the hold back price to me. Since they had to acquire the durango from another dealer they split the hold back price. And yes i bought both vehicles cheaper than they could get it for. My ram listed for 38,500, i paid 31000 out the door. Her durango listed for 39500, we paid 33000 out the door and that includes what was left over from the pay off of 2 of the trades added into new loan. 0
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