Today I saw an ad for the local Chebbies R' Us.

The ad started out saying they would guarantee credit to anyone. Then the salesman goes on to say that they had a couple that had come in after they had been turned down by four other dealerships and finally told all they could afford was a 1982 Mercury.

Then he went on to say that he had personally signed the papers to them for a 2003 Tahoe, a 36,000 dollar vehicle.

To me that is the worst thing they could have ever done to the people. They are setting themn up for failure, they obviously can't handle credit, why should this dealer be supporting it.


By the way the dealer is Denny Menholt Frontier Chevrolet in Billings Montana.

 

Dealers are in the business of selling cars. If you need financial advice, you should go back to high school or seek help from financial advisors. Don't get financial advice from a dealer. Why should I care if some bozo gets hosed at a dealer, they bought it, they should pay for it. maybe they will get smarter because of it.

The reason I can't go in a dealer and offer them a fair amount for a new car or truck is because they know a dope is coming along right behind me and will pay thousands more. He is my enemy as well as yours.

Pretty un-PC huh?

 

I still think its outrageous what the dealers are doing to sell vehicles. they don't care about the customer.

 

Name one business where the salesmen have the customers interest ahead of their own. People need to grow the hell up and take responsibility for their own actions. I don't feel one bit sorry for anyone that was 'talked into' high payments on something they can't afford. People that go into a Dealership and think they are going to get the best of the salesman are stupid. You are in their backyard, playing a game they made up and you don't even know all the rules.

Maybe they learned something and maybe they will be pathetic rearends that society will have to care for all their lives, car salesmen won't change.

I hate dealers, never let them touch my cars and trucks, never take their telemarketing calls, throw away their mailed ads and coupons, and always deal via the Internet when I need parts.

 

It's capitolism at it's best, Buyer beware is the motto they go by. The dealers who sell to high risk buyers, make lots of money off of high interest rates. Most times people who make these guys rich only care about how much there monthly payment is, so what if the interest rate is 20% and spread out over 8 to ten years. They have the vehicle they want at a payment they can barely afford. It's what P.T. Barnum said all those years ago......"A sucker is born every minute". The way I see there has to be suckers in the world......to make you and me look so good.

 

They make us look real good don't they.

Wasn't it the Oh God movie that had the line, you can't have a bottom without a top, you can't have good without bad, you can't have an inside without an outside.

I guess we can interpolate you can't have smart without stupid :-)

 

"Name one business where a salesman puts their customers interests before their own". Believe it or not, there are many professional salesmen out there that know that a good deal is a win/win deal. After 16 years as an engineer, I spent my last 16 years before retiring negotiating and selling contracts to corporations. I was successful only because the same people bought from me over and over again, because they knew they were being treated truthfully and fairly. The person that takes advantage of a customer is not a salesman - he is an order taker who will not receive the benefits of referrals and repeat business. Customers are adults who are responsible for their decisions, but they deserve a fair, truthful presentation - and good salesmen know that.

 

> why should this dealer be supporting it

What you do not see in the ads is that the dealer co-signs the loan, gets all the high interest above the normal rate returned to them from the bank, and usually adds on high fee items that normally would not be on there on a $100 over dealer invoice deal. Such as a full warranty coverage with a low deductable so the dealer can repair anything wrong, if repossessed, at the factory's expense and life insurance (where the dealer gets another kickback).

It has been about ten years since I lasted worked at a dealer, but, what they use to do is build a last batch of vehicles for that model year and try to use all the available parts that might be changed or that they needed to clear out. Example: I saw Chevy put together a "sport" package using made up decals. A 80s Camaro, base 4 cyl engine, stick shift, pink (or whatever color Chevy calls it), basic Beretta package, and nice decals that said "VS Sport" or something to that effect. Not one performance feature. They then sell vehicles like this way below normal dealer invoice to the dealer and give additional finance incentives to the dealer. These reject vehicles are usually the first ones pushed out of the door where the dealer signs the bottom line. The dealer usually keeps a third set of keys so they can easily repo it if they have to. The dumber dealers just keep key numbers (which means keying errors on the codes, if the codes are correct to begin with).

Some car dealers represent predatory business and lending at its finest/worse.

Pretty much is set up so the dealer gets most of the interest and everything else in the first 12 months of the loan were people are most likely not to default and were the vehicle is worth a lot less if returned.

 

The worst thing to do is get financing from a dealer. I sold cars for a year and I couldn't believe the things that they do. Say you qualify for 4.5%, the "lienance" manager might only offer you 7% and if you take it he makes more money. Never settle on a monthly payment sells pitch. If thats all they will talk about run! That is how they screw the most people. "You can only afford $275 a month? I think we can do that." Little did you know you coud have got it for $200. Rules to live by with a dealer-

1. Get pre-approved through a bank or credit union first. The dealer might be able to beat it, but they won't try if they don't have to. Gives you leverage.

2. NEVER PAY STICKER! Most cars now are not marked up as much as they used to be but, still never pay sticker. Most big dealers will loose money on cars just to sell it. Get a copy of a invoice for the car you are wanting to buy off the internet ($16) walk in an tell them you are not going to pay a penny more than that.

3. Never trade a car in. Sell it before you buy a new one. If you owe more than it's worth, tough it out. Never get upside down on a car. A dealer will give you a big story about "well we have to clean it up, fix this and that, and by the time we sell it we wouldn't make any money on it." BULL CRAP. Just avoid all this and sell it your self.

4. Rebates -vs- 0% . Have them figure it out for you. On some cars it is better to take a low APR and the rebate than the 0%. And always negoiate the price then add the rebate. Rebates are paid to the dealer from the factory so never let the figure it into the deal till the last minute. example- invoice-$15000 + $2000 rebate You should pay $15000 - $2000 for a total of $1300 not $17000 - $2000 for a total of $1500 <--I have seen this done at the place I worked at.

5. Walk away if you don't like the deal. Salesman are trained to never let the customer walk. This is the best way to get the deal you need. And don't fall for the "let me talk to my manager" say no thanks and hit the door. There are too many dealerships out there that will give you what you want, and they know that! So use it to your advantage.

Sorry for the long post!

 

JAMESMONTY....
good advice...if more followed it, people wouldn't be in the trouble they are in! Dono's right though....there are good buisnesses and out here in west texas, they still do stuff like "good ole boys" in some places....some people would bend over backwards to help you out and make everything right for you and some would try to bend you over....KNOW YOUR DEALER. Unfortunately, there are many spanish speaking people in our community that the dealerships take advantage of. They barely understand what the payment is much less all the details and sadly some of the dealers think nothing of taking them to the cleaners.

 

I don't know what to say, I will never buy a vehicle from a dealer, why because cars and trucks that are new are money pits, they almost never appreciate in value. I don't need a new vehicle as a status symbol, I just need something that works reliably.