is it true ?

Reply Subscribe

Thread Tools

Search this Thread

Jan 2, 2014 | 02:56 PM

#46

djm1204

Elder User

Joined: Jul 2013

Posts: 521

Likes: 1

From: Dunnellon, Fl

Quote:

Originally Posted by LMS Residential

They hate cash deals Bobby. Even if theyre not placing the loan with Ford motor credit, they pick up a piece on the front end of the deal on bank or finance company credit.
The only dealer benefit for cash deals is in knowing the deal will close, otherwise it amounts to another place they can't make money.

I agree completely ! They get some kick back no matter who they finance it with. The major reason I always deal as if a cash deal from the get go is there is no confusion - which salespeople love to do - about the actual price of the vehicle - don't get sidetracked by monthly payments or trade in values or anything like that. Find out what the bottom line cost of the vehicle you want to buy is - then and only then discuss financing or trade in - that way you can tell what the financing is going to cost you or what the real value of your trade in is.

Dealers actually really hate a actual cash deal over $10,000 because they have to complete all kinds of paperwork for the Government about a cash transaction. It is against the Federal Law for them to even suggest that you pay them less than $10,000 to avoid doing all of the paperwork.

Jan 2, 2014 | 03:11 PM

#47

Big_Al59

Laughing Gas

Joined: Feb 2004

Posts: 1,115

Likes: 13

From: west plains spokane,wa

If I go thru my local credit union and get preapproved for a vehicle loan on a new vehicle there is no kick back to dealer. That might be the case if you used a bank that was working with the dealer.

Jan 2, 2014 | 03:18 PM

#48

djm1204

Elder User

Joined: Jul 2013

Posts: 521

Likes: 1

From: Dunnellon, Fl

Quote:

Originally Posted by Big_Al59

If I go thru my local credit union and get preapproved for a vehicle loan on a new vehicle there is no kick back to dealer. That might be the case if you used a bank that was working with the dealer.

I agree with you completely - no kick back from the credit union - but that is not financing that the dealer arranges - my comment and the others were referring to financing that the dealership arranges thru Ford Credit or some other finance company or bank.

As far as the dealership is concerned - a credit union deal is a cash deal - only thing they usually have to do is encumber the title with the credit union as the lien holder.

Jan 2, 2014 | 03:26 PM

#49

Pikachu

Lead Driver

Joined: Jun 2004

Posts: 6,321

Likes: 584

From: Amarillo, TEXAS!

We never changed the date on the paperwork. It was always the actual date the papers were signed. The dealer is just robbing a unit from the next month's sales numbers and there's nothing illegal about it. This number is internal and was only done with the approval of the regional rep. The whole point was the dealer may or may not have met their previous month's numbers on the first or second of the month, and may be still making lower profit deals. Going on any given day of the month may or may not land you a better deal; there's just no real way to tell unless you have access to the numbers.