Got a Quick Question for a Car Dealer?

the_big_al

Well ... seeing as how just about everything in Pontiac's stable is a clone of another GM vehicle ala G5, Torrent and G3 or rather outdated like the G6, Pontiac has rather become like Oldsmobile in that there isn't a whole lot unique about them. True, there is the G8 and the Solstice The Solstice however is much like the Saturn Sky, but that is also going away. The Solstice is a great idea, halfway baked. The G8 is a fabulous car and I would hope that it would continue on as a Chevy vehicle, perhaps as the new Impala another vehicle that sorely needs revamping.

jayrider

UAW ok's concessions with chrysler/fiat. Deal looks promising.

lhy

I have some newbie car buyer's questions.

When I go to close the deal on a used car, do I need either to buy insurance from the Finance and Insurance office at the dealership or have car insurance beforehand?

If I don't have insurance or don't buy it at the dealership, will they still close the deal and sell the car to me?

I was plannning to buy the car first and then shop/buy for insurance afterwards.

Also, how much should the dealer charge for title and registration fees?

snakeweasel

When I go to close the deal on a used car, do I need either to buy insurance from the Finance and Insurance office at the dealership or have car insurance beforehand?

Shop for and get insurance beforehand, that way you have insurance at a reasonable price and you will know what it will cost before you have the car.

If I don't have insurance or don't buy it at the dealership, will they still close the deal and sell the car to me?

Not sure about the dealership but finance companies require that a car be insured.

Also, how much should the dealer charge for title and registration fees?

That depends on the dealership and the state.

madmanmoo

If you want to drive the vehicle off the lot the same day you make the purchase, you need to have valid insurance. So, if you want to get it before the purchase or spend some time getting covered at the dealership after the purchase, that is the only way to drive off the lot the same day.

sabre52270

Ya! They made a movie out of me - maybe you heard about that movie were they guy steals Chrismas
Actually, I really hope the automakers make it, no pun intended.
I am trying desperatly to get a Dodge Challenger, my wife has a Jeep Liberty with warranty, my mother just got a focus, and if I can't get the Challenger, I was looking at a couple GM cars. So, I really want things to work out, but ya never know what's going to happen.
If you do, please let me know.

jayrider

If you have car insurance on the car you drive now you have 30 days to get it switched to the new ride. Just bring your card.

dtownfb

So, I really want things to work out, but ya never know what's going to happen. If you do, please let me know.

If I could predict this mess, I wouldn't be posting here on Edmunds. I'd be out making some money as a consultant. :shades:

scottinky

i have a question. back in November of 2007, I leased a Nissan Armada. I terminated the lease in March of 2008, bought it out and sold the truck. i just now got a tax bill from Nissan on this truck, which I didnt keep more than 6 months. WTF do I have to pay property tax on it? Why wasn't I billed last year? Is there anyway around this? taxes were included in my payment.

Kirstie_H

In all likelihood, Nissan had to pay the full year's worth of property taxes up front at the end of 2007 or beginning of 2008 (depending on how it works where you live). Your property tax payment for that year was probably pro-rated across the 12-month period, and therefore Nissan is re-couping the taxes that would've been owed by you if you'd owned the vehicle.

scottinky

thank you Kirstie, that makes perfect sense.

kyfdx

Hey Scott.. just noticed that you are in Kentucky...

KY charges personal property tax on any car registered on January 1st, for the entire year... No proration..

It's usually collected at the time you renew your tags..

So, in the last year of a lease, you'll almost always have a bill coming for the entire property tax for that year, but, it's likely to come from the bank after the lease is up, because you aren't renewing your tags. The bank pays it, because they are the owner, but all registration and tax costs are passed along to the lessee (you).

Hope that helps.. I've got a lot of experience with leasing in KY..

regards,
kyfdx

traindriver

KY charges personal property tax on any car registered on January 1st, for the entire year... No proration..

That bites! I would hate to have a lease ending in early January in KY if I understand you correctly. Sounds like you are paying taxes on property you no longer "own"! :mad:

In SC, we turn the tags back in to the DMV and take the receipt to the courthouse and get a prorated refund for any unused full months remaining until expiration. (or transfer it to another vehicle and pay taxes on the new car in the renewal month for the tag.)

Also, I am personally billed by the county, not by Chrysler Financial.

jwilliams2

Well, on the other hand, if you leased in early January, you would have no taxes due for the first year. See, it all balances out.

traindriver

See, it all balances out.

Yes, If that is how it works then I suppose so.

kyfdx

Exactly... and, for lessees, you almost always only have one car at a time... So, you end up paying the tax on one car, each year... As noted, it all balances out..

You do have to be careful if you are making transactions around January 1st... You don't want to buy a car on December 30th, and sell the old one on January 2nd... You'll pay property tax on both cars the next year..

I actually turned in a lease on December 31st, once... then, bought the next car on January 5th... No property tax that year! :P

Of course, on real estate, property taxes are pro-rated... just like everywhere else..

regards,
kyfdx

billsbuddie

I have a "general question". When a car company has a "low interest" rate does the dealer participate in the price? In other words, how much does it cost the dealer when he does a "MSRP" sale of a new car at zero interest?
Does the dealer really care what the interest rate that a customer pays on a loan actally is? I mean a loan with the manurfacturer and not the friendly finance company that is kicking back to the dealer.
Is it worth it to "push" for the low interest rate after negotiating a good price for a car, does the dealer have options?

boomchek

Usually it doesn't cost the dealer anything to participate in subvented financing. Soemtimes however it does cost a dealer to participate in rebates. Part of an advertised rebate might be coming from a manufacturer, and part of it may be a dealer contribution out of their markup.

billsbuddie

Thanks for your answer. So the dealer stands a chance to really make some money on a low interest full MSRP sale? If that's the case then it probably is worth negotiating a price based on Edmunds TMV and then asking for the low interest as well.

volvomax

Keep in mind that sometime the TMV price includes rebates that you may not get w/ a low APR offer.

jipster

worth negotiating a price based on Edmunds TMV

Edmunds TMV is an average. I'd try to go lower.

jb_turner

Just go with the best OTD price. We all pay it.

javacup

I fully own a car with a trade-in value of about $14k. I want to buy a car for about $10-$11k. How does this work....will I sit down, make the deal, and the dealer will give me a check for $3K? How uncommon is this? Any tips on how I should do this would be appreciated.

boomchek

Yes that's how it would work. If the laws in your state are that you pay tax only on a difference (price minus trade = difference plus tax on the difference only) then you don't have to pay sales tax either.

It's not very common but it happens once in a while. My most memorable was a customer who traded an 03 Mercedes Benz SL55 AMG for a loaded minivan. He got the minivan and we cut him a check back for about $50k.

oldfarmer50

I'm seeing a lot of 2009 cars being sold on the internet as USED when they have very low milage, usually no more than a few hundred, some as little as 10 (no typo, a used car with 10 miles). Quite a few have a Carfax which says previous rental some even say they were purchased from out of business dealers.

So what's the story on these cars? I did hear that after June 9th Chrysler dealers who had lost their franchise had to sell their stock as USED but would another dealer who bought up the closed store's NEW stock have to do that too?

As for the rental companies, why would they sell off brand new vehicles? Could it be that with the slow economy the rental companies are dumping cars that they haven't been able to rent?

Finally, if I wanted to buy one of these cars is there anything I should be wary of?

As it stands, the price on some of these units is low enough that I could fly 1000 miles to their location and save enough to pay for the trip, shipping back home and having a vacation .

grandtotal

Many years ago I worked for a car rental company in Paris. They bought cars (at a very advantageous price) from a French manufacturer. A lot of those cars sat in a compound until they were 6 months old when they were sold as used. Some had rental mileage on them but some had never turned a wheel. A used current model year with 10 miles at a large discount is a good deal, I would not hesitate if I could find something I wanted.

newcarbuyer12

About a year ago I bought a new car for my wife. During negotiations the salesman's first offer was around $31K for the new car and $1K for the trade. After that we only discussed the net price instead of splitting it between what we would pay for the new and what they would give us for trade. The final amount ended up being somewhere around $26.5K. When I was looking at the paperwork, I saw that they had broken the costs out as $28K for the new car and $1.5 for the trade. At the time Edmunds and KBB listed our trade at around $3.5K. I know the actual value was probably a little less due to some work that it needed, but I doubt it would have been worth much less than $2.5K.

Does anyone know how the dealership would have come up with the cost breakdown that they showed on the sales receipt? Also, does this breakdown impact the salesman's commission?

boomchek

I can't tell you the breakdown unless I go into that dealership, and go into their computer and see all the details of the transaction in their accounting screen.

Dealerships can shuffle numbers around as well.

If they got more for your trade in from a wholesaler than the amount they showed you on paper, then the extra money will go into the deal as gross profit.

If we guess and say their cost on the new car was $28k, and a wholesale value of your car was $3k, then they would break even at $25k, and make a profit on anything over that.

So if you paid a difference of $26.5 then they made $1.5k on the deal.

The salesperson will get paid on the gross profit of the deal, in this case we're assuming profit would be $1.5k. Typically a salesperson's commission would be 20%-30% of the gross profit.

They could have lost money on your deal for all we know :confuse: so in that case the salesman will get paid a flat most likely of $150.

newcarbuyer12

So if I reading your response correctly, the mix between new car cost and trade amount really doesn't matter much, the net is the amount that all interested parties care about. They could just as easily said that I paid $26.5K for the car but only got a dollar for the trade.

That's what I was thinking, but then I started to wonder if the purchase and sales was giving a little insight into actual costs. I'd been wondering if I had over estimated the value of my trade, which wouldn't surprise me too much. However if the $1.5K for the trade is what the dealer thought it was really worth, then I got a much better than expected deal on the new car. Unfortunately I highly doubt my negotiation skills are good enough to pull that off. :sick:

boomchek

the mix between new car cost and trade amount really doesn't matter much, the net is the amount that all interested parties care about

When negotiating, yes, that's all that matters. To the dealer though it does matter eventually where the money goes, but that's behind the scenes stuff that would be looked at after.

donmckinley

I'm considering buying a car from a dealer out of state. They tell me they're about to sell and ship the car to a different dealer if I don't beat the offer from this other dealer. Sounds fine. My question is this. When dealer A sells and ships to dealer B, who pays the freight? Do I have any bargaining room here if I agree to pay freight if I purchase the car?

volvomax

Purchasing delaer usually pay the freight.
You pay it one way or the other. Either up front, or in the price of the car. Makes no differnce.

volvomax

Purchasing delaer usually pay the freight.
You pay it one way or the other. Either up front, or in the price of the car. Makes no differnce.

elias5

if i purchased a used vehicle in nyc 1 day ago and i dont want it anymore can i return it

jb_turner

No.

verdugo

Hmm, sounds like a troll to me ... elias not jb_tuner :P

jb_turner

Yea I think I fell into the troll trap....

grandtotal

Yes. There will be a re-stocking fee.

oldfarmer50

"...i don't want it anymore can i return it..."

Yes, you can return it to my house as long as it is all paid for. :P

boomchek

Not unless the dealership has a money back return or exchange policy.

joel0622

Under New York law, all contracts with a value of $500 or more must be in writing, or they are not binding. Consumers who agree by telephone to contracts with a total value of $500 or more without a subsequent written contract are not protected by state law, which makes oral agreements for the sale of goods of $500 or more unenforceable.

Consumers often ask the New York Attorney General’s office whether they can cancel a contract after signing. There is no general “cooling-off” law in New York. Consumers should be very wary of salespeople who tell them differently.

There are some consumer cancellation rights under the New York buyers remorse laws, however. Whether these rights are applicable depends on the facts and circumstances surrounding each contract. Under the Federal Trade Commission’s Cooling Off Rule, a consumer has until midnight of the third business day after a contract was signed to cancel either of the following:

•Door-to-door sales contracts for more than $25, or
•A contract for more than $25 made anywhere other than the seller’s normal place of business-for instance, at a sales presentation at a hotel or restaurant, outdoor exhibit, computer show or trade show (other than public car auctions and craft fairs).
A federal law called the Truth in Lending Act lets a consumer cancel a home improvement loan, second mortgage or other loan where the consumer pledged his or her home as security (except for a first mortgage) until midnight of the third business day after the contract was signed.

A number of state laws collectively called the New York buyers remorse laws allow a consumer to cancel written contracts covering the purchase of certain goods or services within a few days of signing, including contracts for dance or martial arts lessons, health club memberships, and home food service plans. Consumers also have the right to cancel contracts with charitable organizations, membership campgrounds, home improvement contracts, prize award schemes, personal emergency service response agreements, sale of foam insulation, dating services, weight loss programs, time-share properties and hearing aids. In most cases, the contract must be cancelled within 3 to 7 business days.

tidester

That's a very nice summary, Joel. Thanks!

tidester, host
SUVs and Smart Shopper

grandtotal

Don't thank Joel for the content, only for finding the answer. I think his answer came from Wiki Answers. There is plenty to thank Joel for on these forums, but on this occasion I think you should be thanking Wiki Answers.

joel0622

thank google. If you want to know about any states buyers remorse law simply google for example TN Buyers Remorse.

I am pretty sure Tidester knew I didn't write that, just simply pointing out I took 20 seconds out of my day to do a google search and post it here. :P

tidester

Yes, but Joel DID take the time to dig it up and to post it.

tidester, host
SUVs and Smart Shopper

avatexrs1

A question for you dealers out there.

I have an Acura MDX coming off lease on July 25. A Lexus dealer has a RX 350 in the color combination I want scheduled to come in on August 15, and expects to get the VIN around July 25.

The Lexus dealer is offering to give me a loaner between the date I have to turn in my Acura until my Lexus comes in. We’ve reached an agreement on an OTD price – but the “catch” is I have to purchase and pay for the Lexus when the VIN becomes available. In other words, I have to pay for the Lexus before it actually comes in and I take possession. To me, that’s the price of getting the free loaner – otherwise, I would need to extend my existing Acura lease another month, which would cost me about $450.

Anyone ever done this before? I assume I’ll get the loaner if there’s a delay in delivery, but what happens if the Lexus is damaged before I take possession? Since I would own it, wouldn't that be my loss?

boomchek

I answered this on the sotries from the frontlines forum but here it is again:

If there would be any damage like a scratch or dent, chances are you won't even know about it, as it would be fixed before you come to pick it up, so when the vehicle comes in, from the time it lands on the lot to the day of your delivery, it will be made spotless and perfect.

I doubt that the dealer will offload a damaged car on you. Customer satisfaction surveys are very important to Lexus dealers so I can't see them jeapordizing that.

vangiebx

Hi I hope someone can give me advice. I went to a dealership and and was interested in the 2009 Hyundai Elantra Touring. The salesman offered the car for $16,995 (sticker price is $19,000) he told me that there was a rebate of $1,500. When he filled out the purchase agreement he told me that he had to add the $1,500 rebate on to the price because I have to pay taxes on it. So that raised the price of the car to $18,495. Then he added the taxes, registration, inspection and tire disposal fees. This brought the price of the car to $20,111.!!! Then he said he was going to subtract the $1,500 rebate. The final price of the car ended up being $18,611. First of all I didn't get a rebate but I did pay an extra $1,500 dollars worth of taxes. I am glad that I only put down $100. and he wrote on the form that it was subject to my final approval. What can I do? Is that legal?? Please help in New York. :confuse:

micosilver

If it is damanged - dealer has an obligation to make it as good as new before you take delivery. No dealer would risk a bad customer survey for some scratched car.
I'd say - go ahead and do the deal.
We sell cars sight unseen all the time, because a lot of our cars are in high demand, and if you don't want to buy it - someone else will, and we never had any problems with it.

newcarbuyer12

Based on the info given, I don't think you were scammed, but there may be a misunderstanding of what the salesman was saying. Did you think he was offering you the car for $16,995 before the rebate therefore making the price $15,495? If so, either you misunderstood him or he mislead you, but which ever it was is hard to say without hearing the conversation.

For the rest of my reply, assume his intent was to have the rebate included in the $16,995. In this case, what the salesman did by adding the rebate to the total in order to calculate sales tax is legitimate. I don't know the sales tax laws for NY very well, but in many states including mine, taxes are calculated on the price of an item before any rebates.

Think of it this way. If you went to Best Buy to get a $1000 TV that came with a $50 rebate, you'd give Best Buy $1080 (assuming 8% sales tax). Then you'd mail in your rebate and get your $50 a few weeks later. Taxes were calculated on the $1000 not $950. The same thing is happening here except you don't have to mail in your rebate, you're getting it at the point of purchase.

One thing you may want to check is how much of a rebate Hyundai is offering. I priced an Elantra on Edmunds and it was showing a $2,000 rebate. It's possible that Edmunds is wrong or that the specific model that you are getting has a lower rebate, so check other sources including Hyundai's web site. Also, the TMV price was much lower than you agreed to, but those prices aren't always accurate and are regional as well. If you are overpaying though, that's bad negotiating, not being scammed.