Dealers must be doing REAL good these days
#1
02-01-2014, 01:52 PM
Dealers must be doing REAL good these days
More of a rant but it never ceases to amaze me how hard it is to give a car dealer money for a car.
More or less paying asking price for a used car, gave credit card info to hold and act as a down payment. Went ahead and let them find the loan, which I am sure they'll get a kick back for, then today find out they have no idea if I want the car.
This specific one brought no bids on ebay at a lower price just a few weeks back, sold for less than I am paying now-- but something must have happened to that deal over a month ago. Maybe I am finding out why it isn't selling.
To top it off the finance guy apparently can't figure out how to put the numbers into a loan calc, keeps quoting me $60-$100 more per month than what his APR and selling price and term come out to. That is my biggest red flag. I don't shop by monthly payment so when they tell me it will be X per month that means absolutely nothing without the term, I guess that confuses them. $500 a month for 4 years is a helluva lot less than $500 for 5 or 6 or whatever they think they are doing.
I see this in a lot of dealer situations though, practically have to beg them to sell their goods. All I can conclude is the people are either dumb as a post or the dealer is doing so good they just could care less.
Anyway I guess it will save me a good chunk of money when the deal falls through. Sure would have been a fun summer ride though.
Surely I am not alone in this or in this area, as this deal is clear across the country.
More or less paying asking price for a used car, gave credit card info to hold and act as a down payment. Went ahead and let them find the loan, which I am sure they'll get a kick back for, then today find out they have no idea if I want the car.
This specific one brought no bids on ebay at a lower price just a few weeks back, sold for less than I am paying now-- but something must have happened to that deal over a month ago. Maybe I am finding out why it isn't selling.
To top it off the finance guy apparently can't figure out how to put the numbers into a loan calc, keeps quoting me $60-$100 more per month than what his APR and selling price and term come out to. That is my biggest red flag. I don't shop by monthly payment so when they tell me it will be X per month that means absolutely nothing without the term, I guess that confuses them. $500 a month for 4 years is a helluva lot less than $500 for 5 or 6 or whatever they think they are doing.
I see this in a lot of dealer situations though, practically have to beg them to sell their goods. All I can conclude is the people are either dumb as a post or the dealer is doing so good they just could care less.
Anyway I guess it will save me a good chunk of money when the deal falls through. Sure would have been a fun summer ride though.
Surely I am not alone in this or in this area, as this deal is clear across the country.
#2
02-01-2014, 02:59 PM
You are dealing with salesmen - never forget that!
One of the tactics salesmen use is to try to put you at the "BEGGING" end of the transaction, and it sounds like they have done that well....
*Very old sales trick: Suggest that the buyer can't afford what they want. This makes the buyer jump all over hell to prove that they can!
What you need here is the realisation that you have "WALK AWAY FROM THE DEAL POWER"
You can always tell them to STUFF IT!
YOU DO NOT NEED THEM
You can always shop other markets
If you remind them of that - I bet they will become more reasonable
The above are powerful tools that you should be aware of when purchasing anything
Another thing that I note here is that if you are dealing with a "SALESMAN" they have their own "RAKEOFF"
IE: What PAYS THEM?
Get rid of the in-between guy, and you will get your best deal
~ If the dealership is not willing to do that, shop somewhere else.
YOU HAVE THAT CAPABILITY
And the used market is always good
One of the tactics salesmen use is to try to put you at the "BEGGING" end of the transaction, and it sounds like they have done that well....
*Very old sales trick: Suggest that the buyer can't afford what they want. This makes the buyer jump all over hell to prove that they can!
What you need here is the realisation that you have "WALK AWAY FROM THE DEAL POWER"
You can always tell them to STUFF IT!
YOU DO NOT NEED THEM
You can always shop other markets
If you remind them of that - I bet they will become more reasonable
The above are powerful tools that you should be aware of when purchasing anything
Another thing that I note here is that if you are dealing with a "SALESMAN" they have their own "RAKEOFF"
IE: What PAYS THEM?
Get rid of the in-between guy, and you will get your best deal
~ If the dealership is not willing to do that, shop somewhere else.
YOU HAVE THAT CAPABILITY
And the used market is always good
#3
02-01-2014, 03:16 PM
I'm not begging for it, luckily this is just a toy so no skin off my back if I don't get it and of course I save money. Just kills me that a deal is done one day with one guy and the next day with a different guy it is totally different. I put a call in to the owner, IF he ever calls back it is going to be more of a "these are the reasons why you lost this sale" conversation.
I just about lose it every time I listen to one and hear all the same old lines, "X amount of people are looking at this too", "we just got this in from a little old lady", "it won't last long",after the car has been there for 6 months, "money is cheap right now"--might be my favorite for we are going to screw you up and down.
I always like going over a Carfax, Oasis and everything else I can before hand and then seeing how much they'll lie about the history of the car.
I just about lose it every time I listen to one and hear all the same old lines, "X amount of people are looking at this too", "we just got this in from a little old lady", "it won't last long",after the car has been there for 6 months, "money is cheap right now"--might be my favorite for we are going to screw you up and down.
I always like going over a Carfax, Oasis and everything else I can before hand and then seeing how much they'll lie about the history of the car.
#5
02-01-2014, 04:33 PM
People in general, are caught up in the consumer credit nightmare. They don't understand finance and the nature of money, and credit. The best example is the way car lots advertise "only 267 dollars a month!!!" And "bad Credit? No Problem!" Many people don't really care what the actual price is, only the monthly nut. This is fine for 2nd graders, but adults should know better.
The first "rule" to avoid the poorhouse is divide the asking price of a car by 36 payments. If you can't afford to pay it off in three years, don't sign on the dotted line. Anything longer means the car will always be "in the bucket", or worth less in trade than is owed.
Borrowing money to buy a.car is still a bad move though, even on a three year note.
"Never borrow money to buy a depreciating asset." because, they are charging interest on several thousands that disappears just as soon as it is driven off the lot. STUPID. But, lots of people have done it, myself included. Both my Fords were paid with cash or check, though.
The profit on used cars is even higher as a percentage. The only way that makes sense is to pay cash or write a check. I did things the stupid way when I was younger and it took a LONG while to dig my way out. Find a reasonable price to pay and stick with it, be willing to walk away and mean it. Remember they do this for a living day in and day out, they know all the tricks of the trade.
The first "rule" to avoid the poorhouse is divide the asking price of a car by 36 payments. If you can't afford to pay it off in three years, don't sign on the dotted line. Anything longer means the car will always be "in the bucket", or worth less in trade than is owed.
Borrowing money to buy a.car is still a bad move though, even on a three year note.
"Never borrow money to buy a depreciating asset." because, they are charging interest on several thousands that disappears just as soon as it is driven off the lot. STUPID. But, lots of people have done it, myself included. Both my Fords were paid with cash or check, though.
The profit on used cars is even higher as a percentage. The only way that makes sense is to pay cash or write a check. I did things the stupid way when I was younger and it took a LONG while to dig my way out. Find a reasonable price to pay and stick with it, be willing to walk away and mean it. Remember they do this for a living day in and day out, they know all the tricks of the trade.
#6
02-02-2014, 09:36 PM
WELL SAID!
You can do your own trading, and often will be better off for it.
A "DEALERSHIP" is a business that makes its money ON TOP OF THE PRICE OF THE DEAL - this is a thing that should never be forgotten, and in-house financing is the biggest rip-off on earth
Consider:
WHAT pays the SALESMEN?
~They make a living too - often a fat one for a few minutes of talking
Do you want to pay for that? When you do so, you are giving your money away
You can do your own trading, and often will be better off for it.
A "DEALERSHIP" is a business that makes its money ON TOP OF THE PRICE OF THE DEAL - this is a thing that should never be forgotten, and in-house financing is the biggest rip-off on earth
Consider:
WHAT pays the SALESMEN?
~They make a living too - often a fat one for a few minutes of talking
Do you want to pay for that? When you do so, you are giving your money away
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