Shady dealer?

[mustangs]

6. NEVER, EVER, EVER mention that you will arrange your own financing OR pay in cash until you've reached the very final out-the-door price. In fact, you should allow them to THINK you will finance with them. You will get a better final figure that way. Then sign the Buyer's Order, have them sign it, then tell them how you will pay. This will save you a lot of money.

I'm intrigued by this an appreciate any insight you can give/have given. So does this process more-less make sense?

1. Get preapproved by my credit union. I'm almost certain I will go with them for financing.

2. Go into the dealer with numbers in mind on what I want to pay. I already know the config of the car I want and will make sure it's at the dealer when I go.

3. When they ask how I'm going to pay, just say that I haven't worked that out yet and want to figure out OTD and such first??? Or what do I say when they start asking about financing and start wanting to pull my credit?

4. Then present them with the info from my credit union and proceed with arranging the loan?

So will they allow the buyer's order to be signed by all parties before they even know how I'm going to pay? I'm also planning on putting 10% down, so when do I divulge this info?

TIA

(sorry to hijack the thread)

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[paullyd210]

Same thing happened to me.

I was approved through USAA at 2.89 I think, and the dealer offered me 2.6 through another local bank. Better deal is fine with me....

Long story short, most dealerships will do whatever they can to move the car immediately. Any that pulled that kind of thing on me, I would not go back to.

the difference between those two rates over a 5 year term, for example, is approx. $300. I had a similar offer from my dealer but i passed on it. I dont forsee this happening, but if i was ever in a financial bind I know for a fact USAA would do anything possible to help me without me losing my vehicle and that to me is worth paying $300 for.


But then again maybe I'm just biased because I work there (USAA). ;)

Yeah the thing that baffled my mind was that they had a guaranteed sale last night and blew it. I went in at 8pm and they closed at 9. I would have been back today at noon with a check as there is a USAA bank 10 mins from my house.

thats crazy, I hope you get the car you want without anymore hassle.

 

[Hack]

I usually go in with the USAA loan already approved, then the dealer offers me a better rate and I take the dealer loan. USAA always says to go back to them and they will improve the rate offer, but I think they should offer their best deal the first time. Therefore I take the best offer. Not to say you have to do it that way, but that's what I've done on the last few cars.

 

[Branden]

To be fair, just using x plan eliminates most of these steps. If you want to haggle for another few hundred you can, but that's not worth it to me. I hate dealers and try to make it as simple as possible.

 

[millerd79]

1. I work for a new car dealer.....20 years now at same place. It is NOT a Ford dealership.

2. EVERY new car dealership is a franchised business. It's just like McDonalds, Nationwide, Jiffy Lube, etc. All are independently owned businesses that are required to operate within a framework outlined by the franchisor.

3. Every new car dealer wants to arrange your financing either through the manufacturer's financing arm or through many other lenders. This is because, after a period of time of regularly made payments, the dealer gets a small "kickback" based on a points system toward the financed amount. It's very similar to the way the person who arranges your home mortgage gets paid points of the loan by the lender.

4. Dealer can NOT "jack up the rate". The rate is set by the lender. The dealer CAN buy down the rate to get it a little lower for you - IF they want to do so. This happens a lot for good regular customers. In fact, the Ford dealer I bought from last month bought my rate down by 0.9% due to number of cars and amount of service business I do there.

5. You should not allow a credit check until you are ready to buy and ONLY if you allow them to do the financing. There is no reason for it regardless of what they say. If they will not move past this, move out the door.

6. NEVER, EVER, EVER mention that you will arrange your own financing OR pay in cash until you've reached the very final out-the-door price. In fact, you should allow them to THINK you will finance with them. You will get a better final figure that way. Then sign the Buyer's Order, have them sign it, then tell them how you will pay. This will save you a lot of money.

7. Sometimes, manufacturer's incentives (discounts, rebates, etc.) require that you finance with the manufacturer. In these cases, if the deal or rate is better, then go with it - you win. If it is higher, and if you can pay cash, allow them to do this financing, wait a week until you get an account number and wire the payoff. You got the incentives and paid no interest.


The point is: Dealers are allowed a lot of flexibility in how they do business. As long as it is not illegal or misrepresenting the product or sale in some way, neither Ford nor any other manufacturer will not get involved.

Most dealers are very honest in their dealings with buyers. There is way too much competition for your dollar to do conduct business badly.

I still shake my head when some poor soul, one of the type that likes to talk "big", comes in and one of the first things they say is: "Now, give me a your best price. You don't have to worry about the money. I'm paying cash." He just notified the dealer that they won't make any money of financing and, therefore will NOT get the best price.

I work for a Ford dealer in S FL and I couldn't agree more.

Do not tell the dealer you have outside financing or paying cash.

They will sometimes loose on the front end of the deal when they think they are making it up on the backend.

 

[hemistar1]

YOU ran into a shady dealer

My man...i am glad you ran out there and didnt fall for their bs .. If they cant give you a buyers order to take to USAA drop them like a crazy girlfriend. They were just trying to get you to go through their financing where they have more control to manipulate the price and manipulate you.

Here is how you do it...(I am posting not solely for you but anyone trying to get their best deal)

Here is how you do it...


get pre-qualified through USAA tell them the year and model of the car..you can even get the VIN right off ford.com or the dealers website

get the blackbook value for your trade at blackbook.com or kbb.com..be fair and expect to get the middle quote unless your wife's car is in pristine cond.. ( you can even consider selling it yourself...stay away from Carmax they will molest you.)

have the dealer write you a buyers order for their best price on the mustang you want

show the order to USAA and get your blank check

enjoy your car


In closing do not let the dealer run your credit unless USAA finance rate is too high for you which I doubt!

 

[lwilliams]

I'm intrigued by this an appreciate any insight you can give/have given. So does this process more-less make sense?

1. Get preapproved by my credit union. I'm almost certain I will go with them for financing.

2. Go into the dealer with numbers in mind on what I want to pay. I already know the config of the car I want and will make sure it's at the dealer when I go.

3. When they ask how I'm going to pay, just say that I haven't worked that out yet and want to figure out OTD and such first??? Or what do I say when they start asking about financing and start wanting to pull my credit?

4. Then present them with the info from my credit union and proceed with arranging the loan?

So will they allow the buyer's order to be signed by all parties before they even know how I'm going to pay? I'm also planning on putting 10% down, so when do I divulge this info?

TIA

(sorry to hijack the thread)

The 10% down is really none of their business. that is between you and the lender. Of course, you will have to give it to them along with the payment from the lender. Until that moment, they don't need to know.

Your question #3..... yes, just tell them you're not interested in filling out the credit application until you are happy with the OTD price. You will need to be firm on this with some dealers.

Yes, they will sign the buyer's order. After you are happy with the price, and have the buyer's order. You can then do whatever you want. And the sales guy will be more than fine...he does not get paid off the financing anyway. He will be anxiously awaiting your return with payment.

 

[mustangs]

Thanks that helps a lot.

 

[70monte]

When I bought my 14 GT, I went with the dealer financing so I could get the $2,000 rebate which required financing with the dealer. They gave me 1.99% for 60 months.

I then went to my Credit Union and refinanced the loan at 1.69% for 60 months.

Years ago I went with the dealer financing because they gave me a better rate than my Credit Union was going to give me. I never rule out financing with the dealer because I always know I can refinance with whoever I want later on.

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