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Comments
'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
Mackabee
Joel: did that couple with the x-plan ever come back for the Edge? ... or how about a story about just a guy that tried to get a decent price on a Honda :P
They referred another customer to us yesterday and he was as big of a grinder as they were.
I just got a deal approved for some people who owe $4600 on a 2000 model Saturn. No big deal right? The car is worth $100. Sitting in there drive way on two flat tires and a blown engine, 130K miles.
Stopped by a store a friend of mine owns.. independent lot. Guy sells used highline cars.. a couple is in looking at an 03 745Li with about 40k miles.. real clean car, loaded to the hilt, etc. Car's priced at $35k and all 02-03s have 6yr/100k warranties from the factory.
The guy can't understand why he can't get to a $300/mo payment with no money down. He's also $3500 upside down on his trade.
The guy looks at me and says "What would you do if you wanted your payments at $300 with your trade?"
"Well, I wouldn't look at a $35,000 car plus $3500 negative equity..."
Customer's wife broke out laughing. "I told you there was no way you were getting one of these for 300/mo you stupid &*^%*&^%" (It is NJ after all) You had to be there....
Nice. The question will be how could you have $4600 debt on scrap metal at the first place. Buy Here Pay Here again?
2018 430i Gran Coupe
This guy needs to look at a used Neon or something.
Even if he could get into it, how could he ever afford to maintain it??
2018 430i Gran Coupe
Toyota Motor Credit.
I remember years ago if a person was a $3000 out of equity it was a huge deal. Now days I am not even concerned about weather or not the bank will buy it until Neg hits $10K plus.
Now we don't look at $$ figures we look at % of advance against cost. So if some one is buying a car that has a $35K cost and want to finance $45500 on it we don't say they are $10500 hooked, we say it is only a 125% advance.
Any bank worth its salt will lend 120% all day, and the real strong ones will go 140%. I have gotten Ford Credit to buy huge numbers beyond 140% in the past.
So when the guy defaults and (many will) they send the hook and get less than half the money back. That's really smart... No wonder Fords is mortgaging its future just to survive and banks finances are in the crapper :sick: .
2018 430i Gran Coupe
2018 430i Gran Coupe
My calculator says that’s 130% advance but I might need new batteries. Then again your calculator or pencil might round off down.
Any bank worth its salt will lend 120% all day, and the real strong ones will go 140%. I have gotten Ford Credit to buy huge numbers beyond 140% in the past.
When I read stuff like this I don’t know whether I should laugh or cry. :confuse:
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
jmonroe
We had a customer here who was an ex NFL player...maybe a development squad guy no one you would know. He loved to trade cars! Like every 6 months. He would hang out at the local country club with our GM and they would hatch harebrained deals then come foist them upon us. Most of the sales staff ran because they knew that the GM and this guy were poison. Ie; eat up most of several days and get a mini or a tag fee to boot. At last gasp this man had purchased from us a 2006 Liberty ( MSRP of 24,700) and borrowed 51,500 on it. I dont know if that is an exact figure but it is as near as I can recall and believe it reflects what this guy did. But man was he cool coming to the country club every few months with a new ride!
They live (and do this) just to hear this sort of remarks.......
OK, that settles it...I'm going to cry.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
Debt-to-income ratio in line
EXCELLENT credit.. 700+ at a bare minimum, usually 720/740+.
Ford Credit isn't stupid.. they know who will and who won't pay.
Are you trying to pull a fast one on me? I said 130% not 120% !!
Gotta keep an eye on you F&I guys even when we're not being held hostage in your offices. :P
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
It's usually 125% of MSRP... a $35k cost car will probably have an MSRP of $37-38.
Good thing we have you to keep an eye on us though
Good thing we have you to keep an eye on us though
How dare me to think when a number is thrown out it really is that number. Ain't nothin sacred around here ? :confuse:
Well, since you're giving that kind of as discount...sign me up.
It seems that banks are very willing to lend a helping hand to people who want to get further into debt. I pretty much knew that but I didn't think it was quite that easy or done like that. Just run the numbers to suit the scheme.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
Putting aside the question of should you ever borrow for normal purchases, most (many?) people carry some balances on a credit card, which again is unsecured debt.
So, what is crazier? Owing 10K on an 9K car, on a loan with 3 years to go at 8%,
Or owing 2K on a 16% credit card that you pay the minimum on, so you are still paying off that trip to Taco Bell in 2004?
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
I knew it!! :surprise:
A majority of the amateur car buyers might be prepped for the sales guys, but they typically never know what hit them when they walk out of your F&I offices!
:shades:
Enjoy!
It amazes me the stories written here, and as a consumer I will be adding my own experience "from the frontlines" soon (I presume the thread is not limited to one side), but I'm gonna do a "Mack" and keep you hanging for a while till the whole process is complete.
Suffice it to say, if this were a film, the trailer would look like something outta Star Wars; which one you ask? Any one. Complete with incomprehensible dialogue, unimaginable battles, and characters, you swear (if you didn't know better) can't possibly be real.
I guess the moral of the car buying story (once it's written) is something akin to mining diamonds; you gotta go thru a lot of dirt to find something worth anything :sick:
metmdx
Oh yeah...give us your best shot. :P
How about over the weekend when things slow down?
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
Ah yes, always imitated but never duplicated. The sincerest form of flattery! Thank you.
No. I'm not in sales but it was clearly an honest mistake. It is unreasonable to expect them to pay off your personal debt for free and there is no hint or suggestion of fraud, i.e. the contract is invalid. Moreover, their offer of a zero profit deal was above and beyond the call of duty. I would have gone with their offer.
tidester, host
SUVs and Smart Shopper
Sounds like the dealer principal was upset, not so much that he lost the deal but that they screwed up and looked like fools.
We once ROYALLY screwed up on a special order car... customer wanted a dead base Volvo V70 with ONLY an Automatic in a specific color. The only one like it in the country would have had to come from, no kidding, Seattle. She was insistent on a base model car.. this is someone who would have bought a 240 with vinyl seats, AM Radio, crank windows and no AC if they still made them.
From Seattle To Florida that is.....
The shipping would have killed the deal. Well the Lady's lease was up in 45 days, so we call Volvo Finance, get her a 1 or 2 month extension if needed and order her a car.
Car shows up. It's a 5-speed. I was, shall we say, a little bit displeased. Salesman had followed up with the sales manager who ordered the car with him. It was a salesman who had sold the Lady and her family probably a dozen cars in the 15 years that he was at the store.
Salesman was ready to strangle the sales manager.
Sooo.....
a) Loyal long-time customer is going to be furious.
b) We look like idiots.
c) Volvo wasn't willing to extend her lease any further.
Uh oh.
So I call her up and I am dead honest with her. I tell her we screwed up and it's going to be at LEAST 10 weeks to get another car.
Instead of $750 over invoice I sold her the car for invoice. I also threw in her first 3 services and let her use a CPO V70 that we had without leather at no charge until her car arrived. She was a very nice lady who happened to be a Vegan.. she simply would not own a car with leather in it, not my style but I appreciated her position.
Yeah, it happens, although it sounds like they are trying to make it right. Really, what else can they do? A lot of other stores would have said "Oh well, so sad, tough cookies".
Wears woodens shoes, I'm sure.
technically i think the car was sold
Sounds as though it is an honest mistake and your attorney was correct. What allot of people do not realize is that the transaction is not complete until the bank handling the contract accepts and cashes the contract. The dealer is acting as an agent for the bank and the contract has verbiage in it stating that the contract will be assigned to the lender listed on the contract.
I have had major screw ups in my office in the past. 99% of them were understood by the customer. Its that 1% that is a PITA
Yep. The guys in the biz say once you drive it off the lot it's yours. I'd get another attorney though if I were you. Your guy seems to hold ethics in high reguard... to bad.
And, you don't?
Once again I ask this question any time this subject comes up.
Did you sign a "Subject To" agreement?
Jipster is correct, you do own the car once you leave the lot with it as long as all the information given that the transaction was based off of is correct and the bank will cash the contract you signed.
In this instance the information on the contract is not correct therefore the transaction is not complete.
Just curious, what was the pay off? Are we talking about $1000 or $10,000. I could see the consumer not noticing it if it is a very small amount but how do you miss it if the OTD price is off by thousands of dollars.
I agree and it’s very upstanding for the dealer to make the offer but how do you really know that it is truly a “no profit deal”? With all the incentives that aren’t so highly published compared to the nationally advertised rebates, unless a buyer hangs out here, I don’t think they’ll really know.
Us regulars are the only ones who really know your biz, huh? (at least to hear us tell it)
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
I belive everyone until the peronaly give me a reason not to. I hope people would appoach me the same.
You may find the surveys (car salesmen not as bad as image) and what brands are best at working with shoppers, etc. at the web site. They are all PDF files and I am so dumb I can't get direct links to them.
http://www.piedpipermc.com/portfolio/press/
I like my name just the way it is...thank you very much !
Let's not "change" the subject. How about an answer to the question. Remember, we're supposed to stay on topic here. :P
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl