Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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Any Questions for a Car Dealer?
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Did a phone deal for my brother-in-law for '03 Honda Accord EX sedan for $19.7k and 5 yr loan at 6.25%. The financing was the lowest offered by any dealer as my 'bro had a personal bankruptcy 4 years ago and several "lates" since then, all of which were we were upfront about. We arrived at the dealership, went thru the business with the sales rep and the paperwork was handed over to finance at about 6:30 Pm pacific time. We waited till 8:30 and then the finance guy calls us in and says, "I'm not getting anything back from the banks for your loan, can you get your own financing? If you wanna take the car home tonight, I can write you up for 18% financing?" We protested that we were offered 6.25% over the phone and we called several times to make sure this was possible. He then asks "where were you last friday, were you trying to buy a car?" (I am sure he was speculating that my 'bro was turned down for credit there and he was trying to use this as leverage.)My brother in law was indeed trying to buy a car somewhere else and he let them run his credit but he decided not to buy there. My question is,is it possible for banks to approve auto loans after 5:00 pm when most of them are closed or is the finance guy just trying to run his game on us?
The bigger question is whether your bro-in-law CAN get the rate claimed. The bankruptcy {by itself} is NOT a deal killer. What really matters is the REST of his current finances, and odds are the finance office COULD NOT get the info after business hours because that kind of decision WILL GENERALLY NOT be made without some human intervention -- the "loan software" may or may not have allowances for the details of your bro-in-law's situation. The specifics are obvious stuff: own or rent, work history, total debt, percentage of debt to income. Yes, all that info is SUPPOSED to get into a FICO score, but the BANKRUPTCY flag will kick the application to a desk...
My gut feeling is that IF things are in order HE MIGHT have a shot at 6.25% but he'll probably need 20% down AND have good ratios ( total consumer debt less than 30% of income, housing payments under 36%).
I would suggest he shop a few credit unions, if there is an "employer focused" one he is eligible for they tend to have the best rates, generally beating out the 'community' credit unions & definitely better than banks (which generally are better than pure finance companies...). Unfortunately the manufacturer credit arms are NOT very eager to get the riskier loans, and the 18% rate is standard for "bad credit/no credit" deals.
Good Luck!
There is absolutely no relation between what someone says over the phone and what a bank will actually do, combined with the magic a good F&I person can work for you.
DCC and Ford will step up all day long on something like this, but Honda doesn't really play the B and C tier stuff.
A four year old BK with slow pays afterwards?
Anyone feel like financing this guy??
A co-worker of mine just bought an 04 Grand Prix. He normally takes me with him when he purchases (trades about every 18-24 mos). We researched possible trade in values for his 02 Grand Am GT...and came up with a trade value around 10k. I saw his paperwork and the stated price of the new car was MSRP...but they(i'm guessing based on quick trade research) overallowed his trade with a value of 14.1. Why do dealers do this? Does juggling the numbers this way give the salesperson a higher commission? Curious.
A person who trades that often should buy cars that don't depreciate like a rock!
was 100% paid for(he's single-socks away the $$).
Any other reasons?
I guess the only number that really matters is the difference figure.
He must really like Pontiacs if he's willing to suffer the horrific depreciation they suffer.
In some states, it's illegal to show negative equity (or basically illegal to finance negative equity, so it can't show up on a contract), so if a car is worth $10, but there's a $12K payoff, and you're buying the new car for $20K, the new car goes to $23K, the trade goes to $13K and the buyer now has $1K "equity", although nothing, including trade difference or sales tax, has really changed.
...not sure why there would be fuel consumption issues... ;-)
Regards... Vikd
Seems like, the most financially smart thing to do now is to keep the V-8. It'll better trade in value in two or three or even 6 years, or I can trade it myself. (By the way, where do I go to get someone to sell this on consignment, you mean like a car dealer?? I didn't know they did that??)Just gonna really hurt my lifestyle. I mean, I'm not a big spender, but I do like to buy clothes, take vacations, buy a new piece of furniture or something to fix up the house up now and then. That is completely out now. For 6 years, it is gonna be "dullsville". Hell, I'm already bored in this podunk town where I work. Getting out to the City or up into the mountains once a month was what kept me sane.
I'm too bloody burned out to work a second job. I'm putting in 50 hrs a week as it is. Only solution is to try to find some private therapy work somewhere. If I could find just one or two private pay Clts for a Saturday or a Friday night (preferably), I could have a life. Its finding them that is the hard part. Have to be careful as I can't take Clts away from the company I work for. I'll figure out something. Who knows, I could get into an avocation that may turn out to be more rewarding and satisfying than what I'm doing now.
Most of you say, keep this thing. I think that is what I'll do. Gonna be tough until I find another income, but I can squeek by somehow, provided I don't have any major emergencies, then its back to credit card debt. I only hope that I don't forget this lesson anytime soon. It has been, and will continue to be a very costly mistake for many years.
Thanks for your help, all of you. Wish this forum had been here before I went out and did this, but it wasn't. Good forum. Good feedback.
Many dealers will let you consign a vehicle on their lot, with them getting a fee for selling it for you, if you wanted to sell it. In somes ways, depending on your area, it can be easier to sell that way than private party.
That is, if you want to sell it.
Is this usual? He claims to be a professional, on staff at a major hospital, which I suppose I could verify, but haven't yet.
I'm wondering if dealers ever act as intermediaries in private party transactions - kind of like an escrow company, taking the money and assuring the transfer to the lender and delivery of title. Might a dealer also perform an inspection of the vehicle?
If so, what the going rate for such a service? Or am I being paranoid - if I can verify the seller's employment, maybe even run a credit check, maybe I should just trust him?
Personally, I would not give anyone money for a car until I get either a title or some paperwork from the seller's bank.
P.S. Have the car checked out, too.
My question is, can dill6 write the check to the title holder and have the title released to him? Isn't this what dealers do? When they pay off my loan on a trade, the title certainly doesn't come to me, it goes straight to them. So why can't an individual do that? Just need that power of attorney form, correct?
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Since this whole deal is about a toy, not an necessity, I think I'll just wait until I find the right deal here at home and keep it simple.
Thanks for the advice!
Terry.
Thanks...Dag.
Subvented rates (like 0%) are only available on certain new cars financed through the manufacturers finance arm. So, no, if Chrysler offers 0% on some of its products you will not be able to finance a Subaru at this rate.
On your Dodge, you didn't get a subvented rate either. I'd bet that Ford Credit accepted your credit where others wouldn't.
I'm assuming that the gimmick in these offers is that the dealer sells the car at full sticker. But in my case, where my trade is valued by KBB at around $4,500, this could be a great deal.
Is there another catch that I'm missing with these high trade ad offers?
Heck, I'LL finance someone who has 80% cash down !! If they don't make their payments, I'm making money on the 20% they still owe versus the actual value of the car (more than 20%!).
Any dealers here who are willing to divulge what the catch is with this offer?
would it ? If it is I have seen their ads!..LOL
Hows your m/c running? Gettin' your knees in the breeze lately?.......................geo
Here's my theory. If you can't be bothered to look that up and respond in kind to an e-mail message, why should I bother calling you?
Also, since I am venting tonight, if you're going to have an internet page, keep it up date. Don't have "Internet Specials" that expired on 3/31/03 still up in late May. What kind of image is that presenting to customers?
'Nuff Said.
- Lou
I cant tell you how many times I have emailed a very specific request - model, options, color to a dealer, with a request to contact me by email, and the resonse I get is a canned "call me" response. Gotta tell you salespeople - my time is just as valuable as yours, and I find it unprofessional and rude when I get that kind of response. I took the time, so should YOU.
As a result, buyers have to resort to all sorts of tricks. We can discuss this ad nauseum, but the bottom line is that the dealer should listen to the buyers needs, and respond accordingly.
Lou is also right about the out of date info, and the "were working on current specials" garbage. I also love the "were working hard to get our inventory on the web." Dudes, I saw the same line a year ago. Just take that section of the site off of you dont want to do it. Lastly, I love the listing of cars, with the price as "contact us." Guys, were on Edmunds, MSRP is hardly a secret! Make the customer WANT to stay on your site. The longer they do, the more likely you get a solid lead!
Oh, btw I love the options description of power steering and brakes, but no data on what packages the car has. Lots of dealers can do it, why dont you lazy guys. It isnt a teaser, its a turn-off!
No riding all week, raining steadily, and Bridgestone BT010s are NOT rain tires. I don't own a rain suit - not that dedicated. People REALLY can't see bikes in the rain, another thought.
Hopefully, we'll get some breaks - I'm itching to do a radical (no further explanation) ride around Philly - neat loop, if you take a few exits - there's no true "loop" like in many cities.
(Can't wait to get back to Texas.....)
I didn't even ask this dealer about price. I was on Edmund's and putting together the options I wanted. The "pop-up" appeared, and I filled out the information asking specifically about the car, trim, and two colors. I received a canned 'Call us' response.
I guess what I'm saying is this:
1) Make your site easy to navigate. Let people sort the cars by either color, trim, transmission, price, etc. If you're going to include photos, at least make them of the current year's model, and the right color. Don't show a red one when the car I've clicked on is blue. Also, make the photos an option. Not everyone has a cable modem at home.
2) Be consistent. If a car's color is "pacifica blue pearl" don't have it appear as "reddish-blue" or blue.
3) Keep it up to date. I am sure there are security reasons for not making inventory a "live" item. However, it should be updated at least weekly, if for no other reason than to reflect newly arrived merchandise.
4) When you advertise "lowest prices on the internet", please don't be shocked when a lower price than you have advertised is mentioned. It's your slogan.
Well enough venting for one night...
- Lou
Erik
That way the customer knows what he's dealing with, and can decide to call or not with some knowledge. Besides, who would want a car without a motorized bicycle lift?
I can assure you the dealer is not going to lose $500. The money is coming from somewhere. What does it really matter? If you want a focus go buy it from them.
It showed a 2003 Dodge Durango SXT 4x4, MSRP of $30,525, "yours for only $17,184 or $179 a month.
Huh? I read the fine print. Discount of $1871 (OK, that works). Lease cash/rebate of $4,500 (OK, makes sense), $1000 lease loyalty cash (wait 'til the punchline), $500 Farm Bureau rebate (?....), $750 Military Personnel Incentive, and $3,990 your cash or trade equity.
So what's the chance that someone is active-duty military, a Farm Bureau member and coming off a DaimlerChrysler lease (the only way to get lease loyalty cash)....all at the same time?
As a former car biz guy, it's dealers like this who give the whole car business a black eye.
Terry.
You up here this week? Buy you a burger and a brewski!
A high volume dealer can sell 30 used cars in a weekend. The hot sellers go quickly. The buyer who takes the inititive to pick up the phone or, better yet, come in will have the best chances.
The guy sitting at a keyboard will often find the car he's looking for is gone.
They think because they itemize all the "discounts" that people won't see it.
Another example of why car dealers are PATHETIC and buyers do what they do. Dont you guys get it?
"Another example of why car dealers are PATHETIC and buyers do what they do"
You don't have any of the PATHETIC car biz people here on Edmunds, giving their free time to help consumers and hopefully better the car business, as a whole.
Screamer ads get people in - period. I don't agree with them, but from a strictly advertising perspective, they work. People, in many cases, are like cattle going for feed - ever seen that? Just a long line of one cow following another.
When people stop behaving like cattle, trying to outsmart themselves by not being smart, doing "real" research instead of reading "The World According To A Washed Up Car Guy Who Couldn't Sell 10 Units a Month So They Whacked Him", committing to a deal and making it happen, nothing's going to change.
It's a double-edged sword - as long as customers try to outsmart themselves, there'll be [non-permissible content removed] dealers to take advantage of them.
"reading "The World According To A Washed Up Car Guy Who Couldn't Sell 10 Units a Month So They Whacked Him"....I just made that up - I'll have to use that again.
Vague websites and evasive responses to quote requests? Move on. Those dealers just aren't seriously interested in net customers. It doesn't take genius to maintain a website.
FWIW, once you find a dealer who does net, I think the key to successful net shopping is the buyer's readiness to buy and a specific quote request made through the dealer's website. Reading the netsalesguy's complaints about vague and frivolous quote requests, I get it.
;-)
Ed