Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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Stories from the Sales Frontlines
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Loan Type
Annual Percentage Rate (APR)
New Vehicle*
(Up to 60 Mos) 4.74% - 9.4%
(Up to 84 Mos $25,000 Min) 5.49% - 10.24%
(Up to 96 Mos $50,000 Min) 6.74% - 7.24%
Used Vehicle*
(Up to 60 Mos) 4.99% - 7.74%
(Up to 84 Mos $25,000 Min) 6.74% - 9.49%
(Up to 96 Mos $50,000 Min) 7.24% - 7.74%
So now on my four square I'll have to ask...upto? three head? Upto? Four head? Four head and a chicken? Can you do upto Four head and three chickens? Let me just get your signature here.
Oh and the only demo I saw on the scooter, the lady turned right on the highway and then promptly dropped it on it's fiberglass side followed by her head whacking the pavement. Ouch! There is no helmet law here so she was not wearing one of course. Then she made an offer but took it back the next day. Thank god it sold.
Trailer parks and Jerry Springer. ohmigod!
Like the spoiler, buy it, don't like don't buy it. But backing up story is simply bogus.
2018 430i Gran Coupe
This would have been true, had car loans and mortgage-backed loan had the same maturities. As it is, they typically do not. So, yes, higher probability of default on a car loan vs. a home loan is a factor. But since lenders commit money on home loans for a whole lot longer, other risks - inflation, currency devaluation, etc. - come into play.
Othersise, how could we see today 5-6% car loan rates and 6.5+% mortgage rates for excellent credit today?
Correct. Interest rates vary at a given point in time based largely on a few basic components: (a) credit quality of the borrower, (b) strength of the collateral and (c) length of the loan term.
The longer the term, and the longer the rate lock, the higher the rate. That's why a 15-year mortgage should have lower rate than a 30-year mortgage, and why a variable-rate mortgage is cheaper than a fixed-rate mortgage.
So the risk of weaker collateral (real estate is more secure than is a car, from a lender's standpoint -- it typically holds it value, and generally isn't going anywhere) can be offset to some extent by the much shorter loan term, which explains why the spread between car and home rates isn't necessarily very high.
I can confirm this. I helped my then 84 (now 90 and still driving the streets of LA everyday) year old grandma buy a new Camry. She insisted on the chrome rims so she could tell it apart from the all the other Camrys. Of course, it didn't stop her from driving away with the wrong Camry from a valet parking lot thereafter, noticing it wasn't her Camry within a few minuted... but didn't return it until AFTER getting her hair done as she couldn't be late to her hair appointment. 100% TRUE.
Do their walkers sport "Type R" logos? Gosh, you'd think Buick dealers would fit all their barges with EVO wings...
If he said - "I thinks it looks better and by the way we have ten colors for you to choose from - and by the way couple of my customers found it helpful in reverse gear", it would sound much more honest to me. What do I know anyway, I may be crazy.
2018 430i Gran Coupe
I said to him later "Kwan...just HOW fast do you think that you'd need to be going to keep the rear end done on the road."
He shrugged as he didn't know.
"Do ya think that you'd need to be going faster than the Civic is capable of?"
"Ahhhh"
Salesmens stories, they're a blast...
Great story - I was actually at a car dealership today to sit in a Grand Marquis. I've had a bit of an interest lately in tracking down a Merc Marauder, but seeing as its a semi-rare car, I can't find one locally to test drive. So, before I start fishing on eBay, I wanted to see how the cars' twin fit (GREAT, BTW, it felt like a much smaller car than it really is).
So anyway, this older Lincoln/Merc salesguy comes up and I explain what I'm doing. He was fine with it, and took my card in case they see a Marauder traded in. So, he then gives me his card: an actual wooden golf tee with his name, dealership, and contact info printed on it.
I'm not saying young guys don't play golf (I'm 32), but it made me wonder about the average age of your Lincoln/Mercury buyer. Great business card, though. Whenever someone I know is shopping for a Linc/Merc, this guy is going to immediately spring to mind. I'm guessing that's the idea, and that he's sold more cars in his lifetime than I've seen on the road.
good luck. when i see those on the road, they always catch my eye. too bad they weren't more popular when they were new. i wonder if you could find someone selling along with the leather jacket that originally came with the car.
'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
Well, that is what a spoiler is *supposed* to be for. Never mind that it never gets used that way.
So it's not *exactly* a lie. It's just a bit of unnecessary truth.
It's all about making yourself stand out. Of course, it's harder to put a golf tee in your business card holder...
I get special business cars through Rover now that I have met the certification requirments for being a Silver Land Rover Sales guide.
Most "spoilers" are just decorative bits of plastic that do absolutely nothing to reduce lift. Most actually increase drag coefficients, rather than improve them.
Very few cars have spoilers that are truly functional. The Porsche 911 Turbo and Bugatti Veyron are two rare exceptions.
good luck. when i see those on the road, they always catch my eye. too bad they weren't more popular when they were new. i wonder if you could find someone selling along with the leather jacket that originally came with the car.
Actually, there have been a couple of new or "like new" jackets on eBay. $400 a pop, though.. I'll stick with my Detroit Lions black leather jacket. :shades:
The Merc salesman did mention that within the last year or two, he has seen a steady stream of people coming by and asking about the Marauder. When the car was actually available new, he said that the dealer ordered 1-2 for each of the two model years it was available ('03/'04), and they literally rotted on the lot for 8-10 months. Looks like Ford was 2 years too early to catch onto the retro "classic RWD big iron V8" craze.
Personally, I still like my Maxima, but I've had a strong patriotic streak lately. I want a big U.S.-made car with RWD, vicious torque, and doesn't have any Chrysler DNA.
Might not make much difference at U.S. speeds, but they actually added the spoiler to the TT after it was released, because of complaints of squirrelly handling on the autobahn...
Hmmm.. not much of a sales story, though... sorry..
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Not to mention that even if you could do those speeds its somewhat useless in a front wheel drive car. Also most that I recall were somewhat symmetrical, meaning that no matter how fast you go it wouldn't do anything.
What I really get a kick out of is seeing Acuras and BMWs with those big spoiler that looks like it was made in a high school sheet metal shop and bolted on.
There is a reason they are called spoilers.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
That's true, I'd forgotton about that.
These kids with the ricer kits on their Hondas and Acuras are just bolting on costly plastic, and as Snake points out, many of them can't seem to afford the paint that's needed to go with them. Just the other day, I saw a Celica that had metal side skirts and a whale tail that had never been painted and were literally rusting on the car. Why bolt them on at all if you can't paint them?
I recently had a Cobalt rental car that had a spoiler on the back, and all it did for me was to make it more difficult to see out the back window. It didn't improve handling, but it does make it easier to not see the cops who are pursuing you after you've been inspired by all of that aerodynamic performance...
If you get lift on the rear wheels of a car, the handling will get squirrely, like the TT allegedly did. I don't think the drive wheels matter. It's like putting worn tires on the rear wheels of a car, and new tires on the front, and driving through a rainstorm, the car is more likely to swap ends because of low traction in the rear.
Aren't the Victoria/Marquis twins made in Canada? If so, this must be almost good enough...
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
The handling gets squirrely when the drive wheels start losing traction, that happens at high speeds when the car gets the aerodynamic lift. The spoiler is there to push the back of the car (with the drive wheels) down to increase traction at high speeds, this is basically because all a spoiler is is an inverted wing. With a front wheel drive car the spoiler still pushes the back of the car down but has little effect on the front where the power goes (take a close look at formula one cars they have spoilers in the front too). A spoiler will help in a FWD car but its effect is very much limited.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Smart boy ....... :P
Terry.
And don't forget the Mazda MPV, which sports a functional spoiler in the sporty minivan category. When I'm pushing 80-85 mph...it really keeps the rear end from getting squirrely on me. :surprise:
Steine 13 - Not for 72 months they don't...
My CU doesn't give 4.49% for 72 months but they are, amazingly, still at 4.9% for 72 months where they have been for a couple years.
The domestic parts content of those cars is sky-high, though I wasn't looking at new so I don't know the actual number.
Plus, I don't have a problem buying a car where final assembly takes place in a country where fair wages are paid. This is why I will never buy any cars built in Mexico.
The lease on my wife's Explorer is coming up in 9-10 months, so on a rare Saturday with nothing to do she wanted to "kick the tires" and see what was out there. She's thinking minivan, since the Explorer is kind of unwieldy and a gas hog. Plus, our second child is due in September, so car shopping isn't going to be as convenient when she actually needs to buy something. Additionally, she REFUSES to buy anything that's not a GM or Ford product (father worked for Ford for decades, strong pro-union mentality).
Fortunately for me, she HATES the Ford Freestar. The third row in that thing is a joke, and it just seemed cheap.
So, that leaves GM's aging lineup of minivans that should have been put to sleep a decade ago. But, since I live by Terry's advice to "buy and drive what YOU like", I let her take me to the Saturn dealer to check out a Relay. I didn't like it, she did and will probably buy one, but that's almost beside the point.
Walking into this Saturn dealer was like going to the first day of Kindergarten.
Salesguy #1: "Hello, my name is Doug, welcome to Saturn. I'm so glad you decided to choose us today. What can I help you with?"
Sales Manager: "Hello, my name is Ray. I see that Doug is working with you, and I'm so happy you chose to shop Saturn today. Can I get you something to drink, and maybe some popcorn?"
If another salesman passed by, he would look you straight in the eye, put on a huge smile and say, "Hi, how are you doing?".
It was like going into some bizarre alternate reality. Imagine going into the secretary of state's office (Michigan's DMV) and being in and out in 2 minutes.. and having the clerk smile. Or, going into a "big box" store and having a kid know as much about computers as an Intel engineer.
You're conditioned to expect certain businesses and the people working in them to behave in specific ways. Saturn, at least my dealership, certainly broke the mold I'd set up for them in my mind.
For me, it wasn't necessarily positive; I personally like the air of selling and the excitement over new cars. It's supposed to be an "adult" experience, like going to a bar. The Saturn dealer was closer to an adult version of a daycare. It was clear within about 5 minutes that Saturn isn't selling a car, they're selling transportation to people who hate cars and the people who sell them.
My wife, of course, loved it. "It's so much fun! I don't feel like I'm sitting around waiting for the manager to figure out ways to empty my bank account!"
Maybe if I bought a Nissan Quest and bought a set of Saturn logos for it...
Having worked at Intel, I can assure you that this is far closer to reality than you might think...
Having just bought my 4th Saturn in four years last Saturday, I can certainly understand (to an extent) where you're coming from.
We chose Saturn for the following reasons:
--> polymer panels; I know, the new batch of Saturns coming out is doing away with this unique feature, but there is something comforting about not having any door dings in your car when you come back to it in a crowded parking lot.
--> sales experience; I'll have to run your comment comparing a Saturn dealer to "adult daycare" by my wife, as she has worked in the early childhood field for the better part of 20 years. Our experience at the two Saturn dealers we've worked with - they are part of the same ownership group - have been nothing but positive. The folks we have dealt with - salesman, GM, F&I folks - were professional. I suppose you could say they were overly friendly, but not so much as to be offputting. They answered all our questions and we have not once felt like they were hiding something from us in our discussions.
--> service experience; again, I can only speak to the history we've had with our dealers. They have all been friendly and open, they've kept us informed as to the progress on the work they've done and the cars have always been cleaned and vacuumed on each visit. While they don't offer loaner cars, they've always had a shuttle available to take me wherever I needed to go.
Having said all that, I will agree with you on the Relay; why GM can't figure out how to create a fold flat seat in their minivans is beyond me!
Funny you mention that, as this afternoon in front of me in the drive up teller line at the bank was a 1998 Oldsmobile Cutlass (the one that looks like a Malibu) with one of those bolt on 'sheet metal' spoilers.
He not only said it was helpful in backing up the car... he also said that they have installed spoilers on all of the city's police cars (on the Impalas) for that very purpose. I have seen the spoilers on the police cars, and I know they are the main dealer where the city's police cars are purchased and serviced.
So I answered all his questions and we are still making small talk. This particular client is a big talker. He is a lawyer and from the way he likes to hear himself talk he is a very good one. I like him think he is a great guy but everytime he calls we end up talking for 45 min to an hour before we both realize what happend.
He know I am a big tech geek and about once a month he will call up just jaw about some new gadget he is looking at. We end talking about that for a while and then we got into fishing since our dealership has a fishing/off road driving trip coming up in the fall. Before I know it we have been on the phone for an hour and at about the same time we both say, "Oh man(didn't really say man but insert your favorite expletive there) I didn't realize what time it was now I got to get back to work I will talk to you later (insert each others names here).
What I can't figure out is WHY a company like GM that has been in business for 100 years has to buy Saturn engines from Honda?
Nothing "wrong" with Saturns. The big thing to consider is the dismal resale values doen the road when compared to some other cars.
2018 430i Gran Coupe
-Mathias
Welcome to the "real world" .....
Where ya been..? ... whether they drive a $10,000 Cavalier or a $80,000 Bimmer, most buyers are doin' the 72/84 month finance dance .....
... didn't you know.? .. this is the society of instant gratification and very little inconvenience .....
Terry.
Best thing for people to do is keep a car for a few years longer than the term of their loan, putting their car payment into a seperate interest earning bank account. If you have a 48 month car loan making the payments into a savings account with minimal interest you will have enough to buy the next car for cash in about four more years.
But most people driving around in their 2005 Buiyota Benz's want the 2007 Buiyota Benz because its newer, has a different color and has 20 preset buttons on the radio instead of 16. These people will never be out of debt.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Consumption
Credit
Convenience
The economy is floating on credit. God help us if we ever have to live within our means.