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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You're damn skippy lenders do us favors. I don't send a lot of contracts to Chase... but when I do they are $100-300,000 contracts and our customers generally have spotless credit and when they do finance they put big money down so the lender has massive equity. They maybe get 4-5 from us a month, but they know that they get ALL of our good paper. So when I get someone once in a while who is a tad marginal, I can usually get my guy there to hook me up. Also, due to the way our customers tend to be, we often get people with seemingly weak beacon scores but with outstanding credit. So the guy who is a "650" will get "740+" rates.
It's called having a relationship with the lender, it works very well for us.
On a side note...
Hey Rich!
But regardless, her credit is not perfect and she is going to have a higher rate anywhere she goes, so "unwinding" the deal on a car she is happy with to go through the whole ordeal again makes no sense.
Indy, any idea what your beacon score was?
Terry.
I agree with audia8q... If this guy is constantly a problem, then the service department should just turn him away. It's generally not great business practice to do as such, but with a guy like that, it might not be worth everyone's trouble.
Terry.
I've had credit issues and my credit score is currently in the low 600's. Every dealer that would finance me was quoting me at least 19% interest. I was at the point where I thought I'd have to accept that and either choose a cheaper car or just deal with larger payments than expected.
I finally started working with a Mazda dealer out of state because I'd located the exact car I wanted on his lot. He gave me a very good deal then we started looking for financing. He came back with an 11.9% interest rate. He told me his finance manager had a person at a certain lender than he worked with a lot. They send tons of business to this lender and his contact there gave me a lower rate than my credit score deserved as a favor due to my income and job stability. Under regular circumstances, he wouldn't have normally done that. I actually had the chance to talk to the guy after the fact and thank him.
I'm sure a lot of dealers lie to their customers and claim that they're calling in favors, etc. But the truth is there are some that can and will do favors for their customers. Lenders take care of the folks who send them the most business.
The end result- the dealer sold a car, the lender will make a great deal of interest at 11.9%, I save about $90 a month on payments and I will return the same dealer if I decide to buy another Mazda.
Just thought I'd share.
That said, you didn't need to go to 10 or 12 different stores in less than a month to get an approval ... if you would have let someone work with you, you'd probably had the deal done in the first 3/4 days with a better rate .. but that was then and this is now.
Terry
Can someone please answer the above question for me? Wouldn't it save both me and the dealer time and money to just wait until the financing is definite? They already have a signed contract. I've got the trade and my down pmt. still. Is this a reasonable request to make of the dealer, or do I need to just pick up the car and deliver my trade and down payment and hope for the best?
C&D?
Crash and Dent?
Chip and Dip?
What?
Inquiring minds want to know...
Oh, and happy New Year, everyone!
(hic)
-Mathias
We can give you all the advice in the world but your dealer might have a different avenue. Just ask'em!
What you are describing happened to my cousin. She was, apparently "spotted", and drove a new Pathfinder for about a month and then got her Mustang convertible back (thank goodness it didn't sell yet).
She ended up later getting the Pathfinder and now drives a Subaru Forester. Anyway, I think you have a right to be concerned and should get your questions answered by your sales person.
Mark
What do you mean let someone work with me? None of the other dealers were interested in offering something better. When I balked at 19%, they just let me walk. One finance manager even told me that "people who don't pay their bills don't get good interest rates". I can't repeat here what I said to him.
C&D?
I'll guess:
A - excellent credit
B - good credit
C - bad credit
D - poor credit
Terry.
You can't expect the dealer to hold onto your trade until your loan has been approved.
You asked, "do I need to just pick up the car and deliver my trade and down payment and hope for the best?"
The answer is again NO!!! You can arrange financing thru a bank or credit union before you go to the dealer.
Congrats! What kind of car are you getting?
I was wondering if I should have been suspecious, or if this is a standard operating procedure.
Terry.
Happy new year.
Do you know how long it typically takes a lender to approve/deny a borrower who is subprime? Assuming all goes well, how soon should I expect to be able to close on the deal?
Terry.
There are several auto auction sites nearby, and it receives transports daily. Once sold, these cars are again loaded up for delivery to their new homes/in these cases back to dealers, not individuals. They frequently have tags from all over the east coast.
Hopefully, none of them will be flooded cars coming out of New Orleans.
He is bought exactly one car from us ever and as far as I know has never refered anyone to us at all. His only repeat business is to come in every week complaining about something.
I haven't dealt with GMAC in, umm, I dunno... years and years. I got lazy dealing with Chase and Bentley financial I guess.. haha :P
This is not a good idea.
Ask for your credit information, since it is yours, after all. In addition to the numerical score, also look at the details of your current and past lenders/creditors and your history with them. The dealer might try to make some excuses for why you can't see it (partnership with the credit bureau, cost, dealership policy, blahblahblah), but don't let that stop you. Check it out for yourself.
Sounds like a moneymaker for the dealer.
Mike
A pac is the amount of money taken out of the gross of a deal before the salesman gets paid.
So for example if you sell a car with 2500 dollars worth of gross and there is a 500 dollar pac then really you only have 2000 dollars of gross. Then you subtract the detailing fee of 90-150 dollars and if it was a used car any safety related items and you get paid on the difference. So that 2500 dollars might really turn into a 1000 dollars at the end of it all and the salesman gets a percentage of that.
The company has to pay FICA, probably the bulk of health, disability, matching 401k, Christmas bonus', parties, etc.
This all comes from??? The profit on each sale times the total number of sales. The pac covers the 'above paycheck' cost of the employee. Every company in every business has the same procedure its just never spoken of and not many are aware of it.
In fact, volvomax, I know all UAG dealerships in Arizona, including Volvo North Scottsdale require buyers to sign them. The agreement is between the buyer and the dealership, not the manufacturer.
There were several posts a few weeks back about adjusting errors. There was some surprise that this occured in the client's favor and several of us replied that it is more frequent than you might expect.
Today a 3rd time repeat customer came in to finalize his paperwork on a Matrix we discussed on 12-31. We agreed on the price @$336.28 for a 48 mo lease including GAP and aftermarket sunroof. We made an oops due to the NYE rush to go home and the F&I office found that the payment should have been $319 x 48L. He came out beaming. I guess that we'll probably get a 100% on his CSI survey ( I know we will even if we didnt find the error).
I call it Profit Added Cost.
I think 99% of dealers have PACs.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
I used KBB's Trade in "Good" value even though I believe the car is much closer to excellent. That was about $18K. I added 500 profit. 2000 Tax, tag and title, and got 20500. He accepted, after a while.
Is this a good procedure, or am I way off?
And does this sound OK on a 05 Accord EX-L V6, 18.5K miles, loaded?
Thanks.
qbrozen, "Best new or used vehicle for $30,000" #15, 5 Jan 2006 7:25 am
By the way, taking trade-in and adding $500 "profit" isn't exactly a good way to go. Primarily because it cost the dealer the transport the car and get it ready for the lot (detail, maybe new brakes, maybe new tires, etc). So that $500 you added basically paid for those things. That means $0 "profit."
Not to mention KBB is almost never right in its numbers.
'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
The only enforceable arbitration is lemon law.
That is between the buyer and the motor company. Dealer has nothing to do with it.
I know of plenty of cases in AZ between dealers and consumers where no arbitration was attempted, they went straight to court.
$250 would just pay for the detail and inspection at most stores. If you are buying a certified car the shop bill is usually closer to $1000. The you have the dent guy, the interior guy, the paint guy, some spare keys, it adds up pretty quickly.
We average @ $1500 per Volvo for a certified car, and that is before the warranty.
I have lurked here for years, posted a few times, you guys have lots of informative things to provide to us buyers, along with a few good stories now and then.
Mike
Now, where I work $10,000-20,000 is usually where we're at but then I am in a different world.
One last question. Does anyone know the laws/rules of taking a car back. I would assume you cannot unless it is a complete Lemon, is there any other way? And how does that work. Thanks again.
All of our certfied preowned cars have a certification cost that ranges between 1200 and 2000 dollars depending on the vehicle and that is taken out of the profit of the car. I had this same argument with a customer who had a vehicle for trade that was almost identical to one we were selling.
He was upset because in his mind we would turn around and sell his car and make 5000 dollars. So after we certify the car we have about 3500 dollars of profit then we know his car needs brakes since we recomended them the last time he had it in so another 700 or so dollars off. Now we are at 2800 dollars. That does not give us much room to negotiate and then there is still detail and other cosmetic reconditiong costs to consider which would probably be 500-750 dollars.
I just had a competing dealer pull a Carfax (they wanted to hopefully find something wrong so I would go there instead).
One owner. No damage noted. Sold at the auction.
Could the auction be the reason it is so low??
And is the carfax report, and 18K in Honda Warranty enough to feel confident in a purchase like this?
Thanks so much.
For example the customer I was talking about in my previous post we gave him 19,500 for his truck but KBB said it was worth 25,000. 19,500 is the real value at auction and in fact edmunds trade in value was lower at 19,100.